Document:

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                                                                     EXHIBIT 4.4

                  PLATINUM UNDERWRITERS HOLDINGS, LTD.

                                       AND

                              JPMORGAN CHASE BANK,

                           AS PURCHASE CONTRACT AGENT

                       FORM OF PURCHASE CONTRACT AGREEMENT

                               DATED AS OF  , 2002

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                                TABLE OF CONTENTS
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                                    ARTICLE I
                        DEFINITIONS AND OTHER PROVISIONS
                             OF GENERAL APPLICATION

SECTION 1.1 Definitions................................................1
SECTION 1.2 Compliance Certificates and Opinions......................15
SECTION 1.3 Form of Documents Delivered to Agent......................16
SECTION 1.4 Acts of Holders; Record Dates.............................16
SECTION 1.5 Notices...................................................18
SECTION 1.6 Notice to Holders; Waiver.................................19
SECTION 1.7 Effect of Headings and Table of Contents..................19
SECTION 1.8 Successors and Assigns....................................19
SECTION 1.9 Separability Clause.......................................19
SECTION 1.10 Benefits of Agreement....................................19
SECTION 1.11 Governing Law............................................20
SECTION 1.12 Legal Holidays...........................................20
SECTION 1.13 Counterparts.............................................20
SECTION 1.14 Inspection of Agreement..................................21
SECTION 1.15 Appointment of Financial Institution as Agent for the
               Company................................................21
SECTION 1.16 No Waiver................................................21

                                   ARTICLE II
                                CERTIFICATE FORMS

SECTION 2.1 Forms of Certificates Generally...........................21
SECTION 2.2 Form of Agent's Certificate of Authentication.............22

                                   ARTICLE III
                                    THE UNITS

SECTION 3.1 Title and Terms; Denominations............................23
SECTION 3.2 Rights and Obligations Evidenced by the Certificates......23
SECTION 3.3 Execution, Authentication, Delivery and Dating............24
SECTION 3.4 Temporary Certificates....................................25
SECTION 3.5 Registration; Registration of Transfer and Exchange.......25
SECTION 3.6 Book-Entry Interests......................................27
SECTION 3.7 Notices to Holders........................................28
SECTION 3.8 Appointment of Successor Clearing Agency..................28
SECTION 3.9 Definitive Certificates...................................28
SECTION 3.10 Mutilated, Destroyed, Lost and Stolen Certificates.......29
SECTION 3.11 Persons Deemed Owners....................................30

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SECTION 3.12 Cancellation.............................................30
SECTION 3.13 Establishment of Stripped Units..........................31
SECTION 3.14 Reestablishment of Normal Units..........................33
SECTION 3.15 Transfer of Collateral upon Occurrence of Termination
               Event..................................................34
SECTION 3.16 No Consent to Assumption.................................34
SECTION 3.17 CUSIP Numbers............................................35

                                   ARTICLE IV
                                    THE NOTES

SECTION 4.1 Payment of Interest; Rights to Interest Payments Preserved;
               Notice.................................................35
SECTION 4.2 Notice and Voting.........................................36
SECTION 4.3 Tax Event Redemption......................................36
SECTION 4.4 Consent to Treatment for Tax Purposes.....................37

                               ARTICLE V
                THE PURCHASE CONTRACTS; THE REMARKETING

SECTION 5.1 Purchase of Common Shares.................................37
SECTION 5.2 Contract Adjustment Payments..............................39
SECTION 5.3 Deferral of Contract Adjustment Payments..................45
SECTION 5.4 Payment of Purchase Price; Remarketing....................47
SECTION 5.5 Issuance of Common Shares.................................52
SECTION 5.6 Adjustment of Settlement Rate.............................53
SECTION 5.7 Notice of Adjustments and Certain Other Events............60
SECTION 5.8 Termination Event; Notice.................................61
SECTION 5.9 Early Settlement..........................................61
SECTION 5.10 Early Settlement Upon Cash Merger........................63
SECTION 5.11 Charges and Taxes........................................65
SECTION 5.12 No Fractional Shares.....................................65

                                   ARTICLE VI
                                    REMEDIES

SECTION 6.1 Unconditional Right of Holders to Receive Purchase Contract
               Adjustment Payments and Purchase Common Shares.........66
SECTION 6.2 Restoration of Rights and Remedies........................66
SECTION 6.3 Rights and Remedies Cumulative............................66
SECTION 6.4 Delay or Omission Not Waiver..............................67
SECTION 6.5 Undertaking for Costs.....................................67
SECTION 6.6 Waiver of Stay or Extension Laws..........................67

                                   ARTICLE VII
                                    THE AGENT

SECTION 7.1 Certain Duties and Responsibilities.......................68

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SECTION 7.2 Notice of Default.........................................69
SECTION 7.3 Certain Rights of Agent...................................69
SECTION 7.4 Not Responsible for Recitals or Issuance of Units.........70
SECTION 7.5 May Hold Units............................................70
SECTION 7.6 Money Held in Custody.....................................70
SECTION 7.7 Compensation and Reimbursement............................70
SECTION 7.8 Corporate Agent Required; Eligibility.....................71
SECTION 7.9 Resignation and Removal; Appointment of Successor.........71
SECTION 7.10 Acceptance of Appointment by Successor...................73
SECTION 7.11 Merger, Conversion, Consolidation or Succession to
               Business...............................................73
SECTION 7.12 Preservation of Information; Communications to Holders...74
SECTION 7.13 No Obligations of Agent..................................74
SECTION 7.14 Tax Compliance...........................................74

                                  ARTICLE VIII
                             SUPPLEMENTAL AGREEMENTS

SECTION 8.1 Supplemental Agreements Without Consent of Holders........75
SECTION 8.2 Supplemental Agreements with Consent of Holders...........75
SECTION 8.3 Execution of Supplemental Agreements......................77
SECTION 8.4 Effect of Supplemental Agreements.........................77
SECTION 8.5 Reference to Supplemental Agreements......................77

                               ARTICLE IX
               CONSOLIDATION, MERGER, SALE OR CONVEYANCE

SECTION 9.1 Covenant Not to Merge, Consolidate, Sell or Convey Property
               Except Under Certain Conditions........................77
SECTION 9.2 Rights and Duties of Successor Corporation................78
SECTION 9.3 Opinion of Counsel Given to Agent.........................78

                                    ARTICLE X
                                    COVENANTS

SECTION 10.1 Performance Under Purchase Contracts.....................79
SECTION 10.2 Maintenance of Office or Agency..........................79
SECTION 10.3 Company to Reserve Common Shares.........................79
SECTION 10.4 Covenants as to Common Shares............................79

EXHIBITS

EXHIBIT A...Form of Normal Units Certificate
EXHIBIT B...Form of Stripped Units Certificate
EXHIBIT C...Instruction from Purchase Contract Agent to Collateral Agent
EXHIBIT D...Instruction to Purchase Contract Agent
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                                      iii
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            PURCHASE CONTRACT AGREEMENT, dated as of -, 2002, between Platinum
Underwriters Holdings, Ltd., a Bermuda corporation (the "Company"), and JPMorgan
Chase Bank, a New York banking corporation, acting as purchase contract agent
and attorney-in-fact for the Holders of Units from time to time (the "Agent").

                                    RECITALS

            The Company has duly authorized the execution and delivery of this
Agreement and the Certificates evidencing the Units.

            All things necessary to make the Purchase Contracts, when the
Certificates are executed by the Company and authenticated, executed on behalf
of the Holders and delivered by the Agent, as provided in this Agreement, the
valid obligations of the Company, and to constitute this Agreement a valid
agreement of the Company, in accordance with its terms, have been done.

                                   WITNESSETH:

            For and in consideration of the premises and the purchase of the
Units by the Holders thereof, it is mutually agreed as follows:

                                   ARTICLE I

                        DEFINITIONS AND OTHER PROVISIONS
                             OF GENERAL APPLICATION

            SECTION 1.1 DEFINITIONS.

            For all purposes of this Agreement, except as otherwise expressly
provided or unless the context otherwise requires:

            (a)   the terms defined in this Article have the meanings assigned
      to them in this Article and include the plural as well as the singular,
      and nouns and pronouns of the masculine gender include the feminine and
      neuter genders;

            (b)   all accounting terms not otherwise defined herein have the
      meanings assigned to them in accordance with generally accepted accounting
      principles in the United States;

            (c)   the words "herein," "hereof" and "hereunder" and other words
      of similar import refer to this Agreement as a whole and not to any
      particular Article, Section or other subdivision; and

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            (d)   the following terms have the meanings given to them in this
      Section 1.1(d):

            "Act" when used with respect to any Holder, has the meaning
      specified in Section 1.4(a).

            "Affiliate" has the same meaning as given to that term in Rule 405
      of the Securities Act or any successor rule thereunder.

            "Agent" means the Person named as the "Agent" in the first paragraph
      of this agreement until a successor Agent shall have become such pursuant
      to the applicable provisions of this Agreement, and thereafter "Agent"
      shall mean such Person.

            "Agent-purchased Treasury Consideration" has the meaning specified
      in Section 5.4(b)(i).

            "Agreement" means this agreement as originally executed or as it may
      from time to time be supplemented or amended by one or more agreements
      supplemental hereto entered into pursuant to the applicable provisions
      hereof.

            "Applicable Market Value" has the meaning specified in Section
      5.1(c).

            "Applicants" has the meaning specified in Section 7.12(b).

            "Bankruptcy Code" means Title 11 of the United States Code, or any
      other law of the United States that from time to time provides a uniform
      system of bankruptcy laws.

            "Beneficial Owner" means, with respect to a Book-Entry Interest, a
      Person who is the beneficial owner of such Book-Entry Interest as
      reflected on the books of the Clearing Agency or on the books of a Person
      maintaining an account with such Clearing Agency (directly as a Clearing
      Agency Participant or as an indirect participant, in each case in
      accordance with the rules of such Clearing Agency).

            "Board of Directors" means either the Board of Directors of the
      Company or the Executive Committee of such Board or any other committee of
      such Board duly authorized to act generally or in any particular respect
      for the Board hereunder.

            "Board Resolution" means (i) a copy of a resolution certified by the
      Secretary or the Assistant Secretary of the Company to have been duly
      adopted by the Board of Directors and to be in full force and effect on
      the date of such certification, (ii) a copy of a unanimous written consent
      of the Board of Directors or (iii) a certificate signed by the authorized
      officer or officers to whom the Board of Directors has delegated its
      authority, and in each case, delivered to the Agent.

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            "Book-Entry Interest" means a beneficial interest in a Global
      Certificate, ownership and transfers of which shall be maintained and made
      through book entries by a Clearing Agency as described in Section 3.6.

            "Business Day" means any day that is not a Saturday, Sunday or day
      on which banking institutions and trust companies in The City of New York
      or at a place of payment are authorized or required by law, regulation or
      executive order to close.

            "Capital Stock" means any and all shares, interests, rights to
      purchase, warrants, options, participations or other equivalents of or
      interests in (however designated, whether voting or non-voting) corporate
      stock or similar interests in other types of entities.

            "Cash Merger" has the meaning set forth in Section 5.10(a).

            "Cash Merger Date" means the date on which a Cash Merger is
      consummated.

            "Cash Settlement" has the meaning set forth in Section 5.4(a).

            "Certificate" means a Normal Units Certificate or a
      Stripped Units Certificate.

            "Clearing Agency" means an organization registered as a "clearing
      agency" pursuant to Section 17A of the Exchange Act that is acting as a
      depositary for the Units and in whose name, or in the name of a nominee of
      that organization, shall be registered a Global Certificate and which
      shall undertake to effect book-entry transfers and pledges of the Units.

            "Clearing Agency Participant" means a broker, dealer, bank, trust
      company, clearing corporation, other financial institution or other Person
      for whom from time to time the Clearing Agency effects book-entry
      transfers and pledges of securities deposited with the Clearing Agency.

            "Closing Price" has the meaning specified in Section 5.1(c).

            "Collateral" has the meaning specified in Section 2.1(a) of the
      Pledge Agreement.

            "Collateral Agent" means State Street Bank, a -, as Collateral Agent
      under the Pledge Agreement until a successor Collateral Agent shall have
      become such pursuant to the applicable provisions of the Pledge Agreement,
      and thereafter "Collateral Agent" shall mean the Person who is then the
      Collateral Agent thereunder.

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            "Collateral Substitution" has the meaning specified in Section
      3.13(a).

            "Common Shares" means the Common Shares, par value $0.01 per share,
      of the Company.

            "Company" means the Person named as the "Company" in the first
      paragraph of this Agreement until a successor shall have become such
      pursuant to the applicable provisions of this Agreement, and thereafter
      "Company" shall mean such successor.

            "Constituent Person" has the meaning specified in Section 5.6(b).

            "Contract Adjustment Payments" means, in the case of Normal Units
      and Stripped Units, the amount payable by the Company in respect of each
      Purchase Contract constituting a part of such Unit, which amount shall be
      equal to [ ]% per year of the Stated Amount, in each case computed (i) for
      any full quarterly period on the basis of a 360-day year of twelve 30-day
      months and (ii) for any period shorter than a full quarterly period, on
      the basis of a 30-day month, and for periods of less than a month, on the
      basis of the actual number of days elapsed per 30-day month, plus any
      Deferred Contract Adjustment Payments accrued pursuant to Section 5.3.

            "Corporate Trust Office" means the corporate trust office of the
      Agent at which, at any particular time, its corporate trust business shall
      be principally administered, which office at the date hereof is located at
      450 West 33rd Street, New York, New York 10001, Attention: Institutional
      Trust Services.

            "Coupon Rate" means the percentage rate per annum at which each Note
      will bear interest initially.

            "Current Market Price" has the meaning specified in Section
      5.6(a)(8).

            "Custodial Agent" means State Street Bank, a -, as Custodial Agent
      under the Pledge Agreement until a successor Custodial Agent shall have
      become such pursuant to the applicable provisions of the Pledge Agreement,
      and thereafter "Custodial Agent" shall mean the Person who is then the
      Custodial Agent thereunder.

            "Default" means a default by the Company in any of its obligations
      under this Agreement.

            "Deferred Contract Adjustment Payments" has the meaning specified in
      Section 5.3(a).

            "Depositary" means, initially, DTC, until another Clearing Agency
      becomes its successor.

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            "DTC" means The Depository Trust Company, the initial
      Clearing Agency.

            "Early Settlement" has the meaning specified in Section 5.9(a).

            "Early Settlement Amount" has the meaning specified in Section
      5.9(a).

            "Early Settlement Date" has the meaning specified in Section 5.9(a).

            "Early Settlement Rate" has the meaning specified in Section 5.9(b).

            "Exchange Act" means the Securities Exchange Act of 1934 and any
      statute successor thereto, in each case as amended from time to time, and
      the rules and regulations promulgated thereunder.

            "Expiration Date" has the meaning specified in Section 1.4(f).

            "Expiration Time" has the meaning specified in Section 5.6(a)(6).

            "Failed Remarketing" has the meaning specified in Section
      5.4(b)(ii).

            "Fair Market Value" with respect to securities distributed in a
      Spin-Off means (a) in the case of any Spin-Off that is effected
      simultaneously with an Initial Public Offering of such securities, the
      initial public offering price of those securities and (b) in the case of
      any other Spin-Off, (i) the average of the Sale Price of those securities
      over the first ten Trading Days after the effective date of such Spin-Off
      or (ii) if the Sale Price is required to be defined without regard to the
      price on any Trading Days, the Sale Price as of the effective date of such
      Spin-Off.

            "Global Certificate" means a Certificate that evidences all or part
      of the Units and is registered in the name of a Depositary or a nominee
      thereof.

            "Holder" means the Person in whose name the Unit evidenced by a
      Normal Units Certificate and/or a Stripped Units Certificate is registered
      in the related Normal Units Register and/or the Stripped Units Register,
      as the case may be.

            "Indenture" means the Indenture, dated as of -, 2002, among Platinum
      Underwriters Finance, Inc., the Company and the Trustee pursuant to which
      the Notes are to be issued, as originally executed and delivered and as it
      may from time to time be supplemented or amended by one or more indentures
      supplemental thereto entered into pursuant to the applicable provisions
      thereof and shall include the terms of a particular series established as
      contemplated thereof.

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            "Initial Public Offering" with respect to a Spin-Off means the first
      time securities of the same class or type as the securities being
      distributed in such Spin-Off are bona fide offered to the public for cash.

            "Issuer Order" or "Issuer Request" means a written order or request
      signed in the name of the Company by the Chief Executive Officer, the
      Chief Financial Officer, the President, any Vice-President, the Treasurer,
      any Assistant Treasurer, the Secretary or any Assistant Secretary (or
      other officer performing similar functions) of the Company and delivered
      to the Agent.

            "Last Failed Remarketing" has the meaning specified in Section
      5.4(b)(ii).

            "Merger Early Settlement" has the meaning specified in Section
      5.10(a).

            "Merger Early Settlement Amount" has the meaning specified in
      Section 5.10(b).

            "Merger Early Settlement Date" has the meaning specified in Section
      5.10(a)(i).

            "Non-electing Share" has the meaning specified in Section 5.6(b).

            "Normal Unit" means the collective rights and obligations of a
      Holder of a Normal Units Certificate in respect of a 1/40 undivided
      beneficial interest in a Note or the appropriate Treasury Consideration,
      as the case may be, subject in each case to the Pledge thereof, and the
      related Purchase Contract.

            "Normal Units Certificate" means a certificate evidencing the rights
      and obligations of a Holder in respect of the number of Normal Units
      specified on such certificate, substantially in the form of Exhibit A
      hereto.

            "Normal Units Register" and "Normal Units Registrar" have the
      respective meanings specified in Section 3.5(a).

            "Notes" means the -% Senior Notes due - 2007 of Platinum
      Underwriters Finance, Inc. issued under the Indenture and
      guaranteed by the Company.

            "NYSE" has the meaning specified in Section 5.1(c).

            "Officers' Certificate" means a certificate signed by the Chief
      Executive Officer, the Chief Financial Officer, the President or any
      Vice-President, and by the Treasurer, any Assistant Treasurer, the
      Secretary or any Assistant Secretary (or other officer performing similar
      functions) of the Company and delivered to the Agent.

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            "Opinion of Counsel" means an opinion in writing signed by legal
      counsel, who may be an employee of or counsel to the Company or an
      Affiliate and who shall be reasonably acceptable to the Agent.

            "Opt-out Treasury Consideration" has the meaning specified in
      Section 5.4(b)(iv).

            "Outstanding Units" means, as of the date of determination, all
      Normal Units or Stripped Units evidenced by Certificates theretofore
      authenticated, executed and delivered under this Agreement, except:

(i)         If a Termination Event has occurred, (A) Stripped Units and (B)
            Normal Units for which the related Notes or the appropriate Treasury
            Consideration, as the case may be, has been theretofore deposited
            with the Agent in trust for the Holders of such Normal Units;

(ii)        Normal Units and Stripped Units evidenced by Certificates
            theretofore cancelled by the Agent or delivered to the Agent for
            cancellation or deemed cancelled pursuant to the provisions of this
            Agreement; and

(iii)       Normal Units and Stripped Units evidenced by Certificates in
            exchange for or in lieu of which other Certificates have been
            authenticated, executed on behalf of the Holder and delivered
            pursuant to this Agreement, other than any such Certificate in
            respect of which there shall have been presented to the Agent proof
            satisfactory to it that such Certificate is held by a bona fide
            purchaser in whose hands the Normal Units or Stripped Units
            evidenced by such Certificate are valid obligations of the Company;

      provided, that in determining whether the Holders of the requisite number
      of the Normal Units or Stripped Units have given any request, demand,
      authorization, direction, notice, consent or waiver hereunder, Normal
      Units or Stripped Units owned by the Company or any Affiliate of the
      Company shall be disregarded and deemed not to be outstanding, except
      that, in determining whether the Agent shall be protected in relying upon
      any such request, demand, authorization, direction, notice, consent or
      waiver, only Normal Units or Stripped Units which a Responsible Officer of
      the Agent knows to be so owned shall be so disregarded. Normal Units or
      Stripped Units so owned which have been pledged in good faith may be
      regarded as Outstanding Units if the pledgee establishes to the
      satisfaction of the Agent the pledgee's right so to act with respect to
      such Normal Units or Stripped Units and that the pledgee is not the
      Company or any Affiliate of the Company.

            "Payment Date" means each -, -, - and -, commencing -, 2002.

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            "Person" means any individual, corporation, limited liability
      company, partnership, joint venture, association, joint-stock company,
      trust, unincorporated organization or government or any agency or
      political subdivision thereof.

            "Platinum Underwriters Finance" means Platinum Underwriters
      Finance, Inc., a Delaware corporation.

            "Pledge" means the pledge under the Pledge Agreement of the Notes,
      the Treasury Securities or the appropriate Treasury Consideration, in each
      case constituting a part of the Units, property, cash, securities,
      financial assets and security entitlements of the Collateral Account (as
      defined in the Pledge Agreement) and any proceeds of any of the foregoing.

            "Pledge Agreement" means the Pledge Agreement, dated as of the date
      hereof, by and among the Company, the Collateral Agent, the Custodial
      Agent, the Securities Intermediary and the Agent, on its own behalf and as
      attorney-in-fact for the Holders from time to time of the Units.

            "Pledged Notes" has the meaning set forth in Section 2.1(c) of the
      Pledge Agreement.

            "Pledged Treasury Consideration" has the meaning set forth in
      Section 2.1(c) of the Pledge Agreement.

            "Pledged Treasury Securities" has the meaning set forth in Section
      2.1(c) of the Pledge Agreement.

            "Predecessor Certificate" means a Predecessor Normal Units
      Certificate or a Predecessor Stripped Units Certificate.

            "Predecessor Normal Units Certificate" of any particular Normal
      Units Certificate means every previous Normal Units Certificate evidencing
      all or a portion of the rights and obligations of the Company and the
      Holder under the Normal Units evidenced thereby; and, for the purposes of
      this definition, any Normal Units Certificate authenticated and delivered
      under Section 3.10 in exchange for or in lieu of a mutilated, destroyed,
      lost or stolen Normal Units Certificate shall be deemed to evidence the
      same rights and obligations of the Company and the Holder as the
      mutilated, destroyed, lost or stolen Normal Units Certificate.

            "Predecessor Stripped Units Certificate" of any particular Stripped
      Units Certificate means every previous Stripped Units Certificate
      evidencing all or a portion of the rights and obligations of the Company
      and the Holder under the Stripped Units evidenced thereby; and, for the
      purposes of this definition, any Stripped Units Certificate authenticated
      and delivered under Section 3.10 in exchange for or in lieu of a
      mutilated, destroyed, lost or stolen Stripped Units

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      Certificate shall be deemed to evidence the same rights and obligations of
      the Company and the Holder as the mutilated, destroyed, lost or stolen
      Stripped Units Certificate.

            "Purchase Contract," when used with respect to any Unit, means the
      contract forming a part of such Unit and obligating the Company to sell
      and the Holder of such Unit to purchase Common Shares on the terms and
      subject to the conditions set forth in Article Five.

            "Purchase Contract Settlement Fund" has the meaning specified in
      Section 5.5.

            "Purchase Price" has the meaning specified in Section 5.1(a).

            "Purchased Shares" has the meaning specified in Section 5.6(a)(6).

            "Quotation Agent" means each of _____________ and _____________ or
      any of their respective successors or any other primary U.S. government
      securities dealer in New York City selected by the Company.

            "Record Date" for the payment of a distribution payable on any
      Payment Date means, as to any Global Certificate, the Business Day next
      preceding such Payment Date, and as to any other Certificate, the 15th
      calendar day preceding such Payment Date.

            "Redemption Amount" means, for each Note, the product of (i) the
      principal amount of such Note and (ii) a fraction whose numerator is the
      applicable Treasury Portfolio Purchase Price and whose denominator is the
      applicable Tax Event Redemption Principal Amount.

            "Redemption Price" means the redemption price per Note equal to the
      Redemption Amount plus any interest on such Note accrued and unpaid as of
      the interest Payment Date, if any, preceding the Tax Event Redemption
      Date.

            "Register" means the Normal Units Register and the Stripped
      Units Register, as applicable.

            "Registrar" means the Normal Units Registrar and the
      Stripped Units Registrar, as applicable.

            "Remarketing Agent" has the meaning specified in Section 5.4(b)(i).

            "Remarketing Agreement" means the Remarketing Agreement to be
      entered into by and among the Company, Platinum Underwriters Finance, the
      Remarketing Agent and the Agent.

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            "Remarketing Date" means the third Business Day preceding -, 2005.

            "Remarketing Fee" has the meaning specified in Section 5.4(b)(i).

            "Remarketing Period" means each of (i) the three Business Day period
      beginning on the Remarketing Date and ending after the two immediately
      following Business Days; (ii) the three Business Day period immediately
      preceding -, 2005; and (iii) the third Business Day immediately preceding
      the Share Purchase Date.

            "Remarketing Rate" means the percentage rate per year at which each
      Note will bear interest on and following the Reset Date.

            "Remarketing Value" means the sum of

                  (i)   the value at the Remarketing Date or any Subsequent
            Remarketing Date, as the case may be, of U.S. Treasury securities
            that will pay, on or prior to the Share Purchase Date, an amount of
            cash equal to the aggregate interest payments that are scheduled to
            be payable on that date, on (1) the Notes which are included in
            Normal Units and (2) the Separate Notes, in each case, which are
            participating in the remarketing, assuming for that purpose, even if
            not true, that the interest rate on the Notes is equal to the Coupon
            Rate, and

                  (ii)  the value at the Remarketing Date or any Subsequent
            Remarketing Date, as the case may be, of U.S. Treasury securities
            that will pay, on or prior to the Share Purchase Date, an amount of
            cash equal to the aggregate Stated Amount of (1) such Notes that are
            included in Normal Units and (2) the Separate Notes, in each case,
            which are participating in the remarketing;

      provided that for purposes of clauses (i) and (ii) above, the Remarketing
      Value shall be calculated on the assumptions that (x) the U.S. Treasury
      securities are highly liquid and mature on or within 35 days prior to the
      Share Purchase Date, as determined in good faith by the Remarketing Agent
      in a manner intended to minimize the cash value of the U.S. Treasury
      securities, and (y) the U.S. Treasury securities are valued based on the
      ask-side price of such U.S. Treasury securities at a time between 9:00
      a.m. and 11:00 a.m., New York City time, selected by the Remarketing
      Agent, on the Remarketing Date or any Subsequent Remarketing Date, as the
      case may be, as determined on a third-day settlement basis by a reasonable
      and customary means selected in good faith by the Remarketing Agent, plus
      accrued interest to that date.

            "Reorganization Event" has the meaning specified in Section 5.6(b).

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            "Reset Date" means the date following the Remarketing Date or a
      subsequent Remarketing Date, as applicable, on which the trades in a
      successful remarketing of the Notes, pursuant to the provisions of Section
      5.4, settle.

            "Responsible Officer" means, when used with respect to the Agent,
      any officer within the Institutional Trust Services unit of the Agent (or
      any successor unit or department of the Agent) located at the Corporate
      Trust Office of the Agent who has direct responsibility for the
      administration of this Agreement and, for the purposes of Section
      7.1(b)(2), shall also include any officer of the Agent to whom any
      corporate trust matter is referred because of such person's knowledge of
      and familiarity with the particular subject.

            "Sale Price" of any securities distributed in a Spin-Off on any
      Trading Day means the closing sale price per share (or if no closing sale
      price is reported, the average of the bid and ask prices or, if more than
      one in either case, the average of the average bid and average ask prices)
      on such Trading Day as reported in composite transactions for the
      principal U.S. securities exchange on which such securities are traded or,
      if such securities are not listed on a U.S. national or regional
      securities exchange, as reported by the Nasdaq Stock Market, or if such
      securities are not so reported, the last quoted bid price for such
      securities in the over-the-counter market as reported by the National
      Quotation Bureau or similar organization, or, if such bid price is not
      available, the market value of such securities on such date as determined
      by a nationally recognized independent investment banking firm retained by
      the Company for this purpose.

            "Securities Act" means the Securities Act of 1933 and any statute
      successor thereto, in each case as amended from time to time, and the
      rules and regulations promulgated thereunder.

            "Securities Intermediary" means State Street Bank, a - corporation,
      in its capacity as Securities Intermediary under the Pledge Agreement,
      together with its successors in such capacity.

            "Senior Indebtedness" means indebtedness of any kind of the Company
      unless the instrument under which such indebtedness is incurred expressly
      provides that it is in parity or subordinate in right of payment to the
      Contract Adjustment Payments.

            "Separate Notes" has the meaning set forth in the Pledge Agreement.

            "Settlement Date" means any Early Settlement Date or Merger Early
      Settlement Date or the Share Purchase Date.

            "Settlement Rate" has the meaning specified in Section 5.1(a).

            "Share Purchase Date" means -, 2005.

                                       11
<Page>

            "Spin-Off" means a dividend or other distribution on the Common
      Shares of shares of Capital Stock of any class or series, or similar
      equity interests, of or relating to a subsidiary or other business unit of
      the Company.

            "Stated Amount" means, with respect to any one Normal Unit or
      Stripped Unit, $25, and with respect to any one Note, $1,000.

            "Stripped Unit" means the collective rights and obligations of a
      Holder of a Stripped Units Certificate in respect of a 1/40 undivided
      beneficial interest in a Treasury Security, subject to the Pledge thereof,
      and the related Purchase Contract.

            "Stripped Units Certificate" means a certificate evidencing the
      rights and obligations of a Holder in respect of the number of Stripped
      Units specified on such certificate, substantially in the form of Exhibit
      B hereto.

            "Stripped Units Register" and "Stripped Units Registrar" have the
      respective meanings specified in Section 3.5(a).

            "Subsequent Remarketing" has the meaning specified in Section
      5.4(b)(ii).

            "Subsequent Remarketing Date" means any date on which the
      Remarketing Agent attempts a Subsequent Remarketing in accordance with
      Section 5.4 hereof, such date in no event to be later than the three
      Business Days immediately preceding the Share Purchase Date.

            "Tax Event" means the receipt by the Company of an opinion of a
      nationally recognized tax counsel experienced in such matters, which may
      be Sullivan & Cromwell, to the effect that there is more than an
      insubstantial risk that interest payable by Platinum Underwriters Finance
      on the Notes on the next Payment Date will not be deductible, in whole or
      in part, by Platinum Underwriters Finance for United States federal income
      tax purposes, as a result of (a) any amendment to, or change (including
      any announced proposed change) in, the laws (or any regulations
      thereunder) of the United States or any political subdivision or taxing
      authority thereof or therein affecting taxation, (b) any amendment to or
      change in an official interpretation or application of such laws or
      regulations by any legislative body, court, governmental agency or
      regulatory authority or (c) any official interpretation or pronouncement
      that provides for a position with respect to such laws or regulations that
      differs from the generally accepted position on _________, 2002, which
      amendment, change or proposed change is effective or which interpretation
      or pronouncement is announced on or after __________, 2002.

            "Tax Event Redemption" means, if a Tax Event shall occur and be
      continuing, the redemption of the Notes, at the option of Platinum
      Underwriters

                                       12
<Page>

      Finance, in whole but not in part, on not less than 30 days nor more than
      60 days' prior written notice.

            "Tax Event Redemption Date" means the date upon which a Tax Event
      Redemption is to occur.

            "Tax Event Redemption Principal Amount" means (i) in the case of a
      Tax Event Redemption Date occurring prior to a successful remarketing of
      the Notes pursuant to Section 5.4 hereof, the aggregate principal amount
      of Notes included in Normal Units outstanding on such date, and (ii) in
      the case of a Tax Event Redemption Date occurring after either a
      successful remarketing of the Notes pursuant to Section 5.4 hereof or the
      Share Purchase Date, the aggregate principal amount of the Notes
      outstanding on such date.

            "Tax Event Redemption Treasury Consideration" means, with respect to
      a Normal Unit and the U.S. Treasury securities in the Treasury Portfolio,
      (A) a 1/40, or 2.5%, undivided beneficial ownership interest in a $1,000
      principal or interest amount of a principal or interest strip in a U.S.
      Treasury security included in such Treasury Portfolio which matures on or
      prior to  , 2005 and (B) for each scheduled interest Payment Date on the
      Notes that occurs after the Tax Event Redemption Date and on or before the
      Share Purchase Date a -% undivided beneficial ownership interest in a
      $1,000 principal or interest of a principal or interest strip in a U.S.
      Treasury security included in the Treasury Portfolio that matures on or
      prior to that interest Payment Date.

            "Termination Date" means the date, if any, on which a Termination
      Event occurs.

            "Termination Event" means the occurrence of any of the following
      events:

                  (i)   at any time on or prior to the Share Purchase Date, a
            judgment, decree or court order shall have been entered granting
            relief under the Bankruptcy Code or any other similar federal or
            state law, adjudicating the Company to be insolvent, or approving as
            properly filed a petition seeking reorganization or liquidation of
            the Company, and, unless such judgment, decree or order shall have
            been entered within 60 days prior to the Share Purchase Date, such
            decree or order shall have continued undischarged and unstayed for a
            period of 60 days;

                  (ii)  at any time on or prior to the Share Purchase Date, a
            judgment, decree or court order for the appointment of a receiver or
            liquidator or trustee or assignee in bankruptcy or insolvency of the
            Company or of its property, or for the winding up or liquidation of
            its affairs, shall have been entered, and, unless such judgment,
            decree or order shall have been entered within 60 days prior to the
            Share Purchase

                                       13
<Page>

            Date, such judgment, decree or order shall have continued
            undischarged and unstayed for a period of 60 days; or

                  (iii) at any time on or prior to the Share Purchase Date, the
            Company shall file a petition for relief under the Bankruptcy Code
            or any other similar federal or state law, or shall consent to the
            filing of a bankruptcy proceeding against it, or shall file a
            petition or answer or consent seeking reorganization or liquidation
            under the Bankruptcy Code or any other similar federal or state law,
            or shall consent to the filing of any such petition, or shall
            consent to the appointment of a receiver or liquidator or trustee or
            assignee in bankruptcy or insolvency of it or of its property, or
            shall make an assignment for the benefit of creditors, or shall
            admit in writing its inability to pay its debts generally as they
            become due.

            "Threshold Appreciation Price" has the meaning specified in Section
      5.1(a).

            "TIA" means the Trust Indenture Act of 1939, and any statute
      successor thereto, in each case as amended from time to time, and the
      rules and regulations promulgated thereunder.

            "Trading Day" has the meaning specified in Section 5.1(c).

            "Treasury Consideration" means the Agent-purchased Treasury
      Consideration, the Opt-out Treasury Consideration or the Tax Event
      Redemption Treasury Consideration.

            "Treasury Portfolio" means: (i) if a Tax Event Redemption occurs
      prior to a successful remarketing of the Notes pursuant to the provisions
      of Section 5.4 hereof, a portfolio of (A) zero-coupon U.S. Treasury
      securities consisting of principal or interest strips of U.S. Treasury
      securities that mature on or prior to the Share Purchase Date in an
      aggregate amount equal to the applicable Tax Event Redemption Principal
      Amount and (B) with respect to each scheduled interest Payment Date on the
      Notes that occurs after the Tax Event Redemption Date and on or before the
      Share Purchase Date, interest or principal strips of U.S. Treasury
      securities that mature on or prior to such interest Payment Date in an
      aggregate amount equal to the aggregate interest payment that would be due
      on the applicable Tax Event Redemption Principal Amount on such date if
      the interest rate of the Notes were not reset on the Reset Date, and (ii)
      solely for purposes of determining the Treasury Portfolio Purchase Price
      in the case of a Tax Event Redemption Date occurring after either of a
      successful remarketing of the Notes or the Share Purchase Date, a
      portfolio of (A) zero-coupon U.S. Treasury securities consisting of
      principal or interest strips of U.S. Treasury securities that mature on or
      prior to -, 2007 in an aggregate amount equal to the applicable Tax Event
      Redemption Principal Amount and (B) with respect to each scheduled
      interest Payment Date on the Notes that occurs after the Tax Event
      Redemption

                                       14
<Page>

      Date and on or before -, 2007, interest or principal strips of U.S.
      Treasury securities that mature on or prior to such interest Payment Date
      in an aggregate amount equal to the aggregate interest payment that would
      be due on the applicable Tax Event Redemption Principal Amount.

            "Treasury Portfolio Purchase Price" means the lowest aggregate price
      quoted by a primary U.S. government securities dealer in New York City to
      the Quotation Agent on the third Business Day immediately preceding the
      Tax Event Redemption Date for the purchase of the Treasury Portfolio for
      settlement on the Tax Event Redemption Date.

            "Treasury Security" means a zero-coupon U.S. Treasury security
      (CUSIP Number -) maturing on -, 2005 that will pay $1,000 on such maturity
      date.

            "Trustee" means JPMorgan Chase Bank, a New York banking corporation,
      as trustee under the Indenture and the First Supplemental Indenture, or
      any successor thereto.

            "Underwriting Agreement" means the Underwriting Agreement relating
      to the Units dated -, 2002 among the Company, Platinum Underwriters
      Finance, Inc. and the underwriters named therein.

            "Unit" means a Normal Unit or a Stripped Unit.

            "Vice-President" means any vice-president, whether or not designated
      by a number or a word or words added before or after the title
      "vice-president."

            SECTION 1.2 COMPLIANCE CERTIFICATES AND OPINIONS.

            Except as otherwise expressly provided by this Agreement, upon any
application or request by the Company to the Agent to take any action under any
provision of this Agreement, the Company shall furnish to the Agent an Officers'
Certificate stating that all conditions precedent, if any, provided for in this
Agreement relating to the proposed action have been complied with and, if
requested by the Agent, an Opinion of Counsel stating that, in the opinion of
such counsel, all such conditions precedent, if any, have been complied with,
except that in the case of any such application or request as to which the
furnishing of such documents is specifically required by any provision of this
Agreement relating to such particular application or request, no additional
certificate or opinion need be furnished.

            Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Agreement shall include:

            (a)   a statement that the individual signing such certificate or
      opinion has read such covenant or condition and the definitions herein
      relating thereto;

                                       15
<Page>

            (b)   a brief statement as to the nature and scope of the
      examination or investigation upon which the statements or opinions
      contained in such certificate or opinion are based;

            (c)   a statement that, in the opinion of such individual, he or she
      has made such examination or investigation as is necessary to enable such
      individual to express an informed opinion as to whether or not such
      covenant or condition has been complied with; and

            (d)   a statement as to whether, in the opinion of such individual
      based on his or her knowledge, such condition or covenant has been
      complied with.

            SECTION 1.3 FORM OF DOCUMENTS DELIVERED TO AGENT.

            (a)   In any case where several matters are required to be certified
      by, or covered by an opinion of, any specified Person, it is not necessary
      that all such matters be certified by, or covered by the opinion of, only
      one such Person, or that they be so certified or covered by only one
      document, but one such Person may certify or give an opinion with respect
      to some matters and one or more other such Persons as to other matters,
      and any such Person may certify or give an opinion as to such matters in
      one or several documents.

            (b)   Any certificate or opinion of an officer of the Company may be
      based, insofar as it relates to legal matters, upon a certificate or
      opinion of, or representations by, counsel, unless such officer knows, or
      in the exercise of reasonable care should know, that the certificate or
      opinion or representations with respect to the matters upon which his
      certificate or opinion is based are erroneous. Any such certificate or
      Opinion of Counsel may be based, insofar as it relates to factual matters,
      upon a certificate or opinion of, or representations by, an officer or
      officers of the Company stating that the information with respect to such
      factual matters is in the possession of the Company unless such counsel
      knows, or in the exercise of reasonable care should know, that the
      certificate or opinion or representations with respect to such matters are
      erroneous.

            Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Agreement, they may, but need not, be consolidated and
form one instrument.

            SECTION 1.4 ACTS OF HOLDERS; RECORD DATES.

            (a)   Any request, demand, authorization, direction, notice,
      consent, waiver or other action provided by this Agreement to be given or
      taken by Holders may be embodied in and evidenced by one or more
      instruments of substantially similar tenor signed by such Holders in
      person or by an agent duly appointed in writing; and, except as herein
      otherwise expressly provided, such action shall become effective when such
      instrument or instruments are delivered

                                       16
<Page>

      to the Agent and, where it is hereby expressly required, to the Company.
      Such instrument or instruments (and the action embodied therein and
      evidenced thereby) are herein sometimes referred to as the "Act" of the
      Holders signing such instrument or instruments. Proof of execution of any
      such instrument or of a writing appointing any such agent shall be
      sufficient for any purpose of this Agreement and (subject to Section 7.1)
      conclusive in favor of the Agent and the Company, if made in the manner
      provided in this Section.

            (b)   The fact and date of the execution by any Person of any such
      instrument or writing may be proved in any manner which the Agent deems
      sufficient.

            (c)   The ownership of Units shall be proved by the Normal Units
      Register or the Stripped Units Register, as the case may be.

            (d)   Any request, demand, authorization, direction, notice,
      consent, waiver or other Act of the Holder of any Certificate shall bind
      every future Holder of the same Certificate and the Holder of every
      Certificate issued upon the registration of transfer thereof or in
      exchange therefor or in lieu thereof in respect of anything done, omitted
      or suffered to be done by the Agent or the Company in reliance thereon,
      whether or not notation of such action is made upon such Certificate.

            (e)   The Company may set any day as a record date for the purpose
      of determining the Holders of Outstanding Units entitled to give, make or
      take any request, demand, authorization, direction, notice, consent,
      waiver or other action provided or permitted by this Agreement to be
      given, made or taken by Holders of Units. If any record date is set
      pursuant to this paragraph, the Holders of the Outstanding Normal Units
      and the Outstanding Stripped Units, as the case may be, on such record
      date, and no other Holders, shall be entitled to take the relevant action
      with respect to the Normal Units or the Stripped Units, as the case may
      be, whether or not such Holders remain Holders after such record date;
      provided that no such action shall be effective hereunder unless taken on
      or prior to the applicable Expiration Date by Holders of the requisite
      number of Outstanding Units on such record date. Nothing in this paragraph
      shall be construed to prevent the Company from setting a new record date
      for any action for which a record date has previously been set pursuant to
      this paragraph (whereupon the record date previously set shall
      automatically and with no action by any Person be cancelled and of no
      effect), and nothing in this paragraph shall be construed to render
      ineffective any action taken by Holders of the requisite number of
      Outstanding Units on the date such action is taken. Promptly after any
      record date is set pursuant to this paragraph, the Company, at its own
      expense, shall cause notice of such record date, the proposed action by
      Holders and the applicable Expiration Date to be given to the Agent in
      writing and to each Holder of Units in the manner set forth in Section
      1.6.

                                       17
<Page>

            (f)   With respect to any record date set pursuant to this Section,
      the Company may designate any date as the "Expiration Date" and from time
      to time may change the Expiration Date to any earlier or later day;
      provided that no such change shall be effective unless notice of the
      proposed new Expiration Date is given to the Agent in writing, and to each
      Holder of Units in the manner set forth in Section 1.6, on or prior to the
      existing Expiration Date. If an Expiration Date is not designated with
      respect to any record date set pursuant to this Section, the Company shall
      be deemed to have initially designated the 180th day after such record
      date as the Expiration Date with respect thereto, subject to its right to
      change the Expiration Date as provided in this paragraph. Notwithstanding
      the foregoing, no Expiration Date shall be later than the 180th day after
      the applicable record date.

            SECTION 1.5 NOTICES.

            Any request, demand, authorization, direction, notice, consent,
waiver or Act of Holders or other document provided or permitted by this
Agreement to be made upon, given or furnished to, or filed with:

            (a)   the Agent by any Holder or by the Company shall be sufficient
      for every purpose hereunder (unless otherwise herein expressly provided)
      if made, given, furnished or filed in writing and personally delivered,
      mailed, first-class postage prepaid, telecopied or delivered by overnight
      air courier guaranteeing next day delivery, addressed to and received by
      the Agent at JPMorgan Chase Bank, Attention: Institutional Trust Services,
      telecopy: (212) 946-8154, or at any other address furnished in writing by
      the Agent to the Holders and the Company; or

            (b)   the Company by the Agent or by any Holder shall be sufficient
      for every purpose hereunder (unless otherwise herein expressly provided)
      if made, given, furnished or filed in writing and personally delivered,
      mailed, first-class postage prepaid, telecopied or delivered by overnight
      air courier guaranteeing at least second day delivery, addressed to and
      received by the Company at Platinum Underwriters Holdings, Ltd. ?,
      Attention: ?, telecopy: ?, or at any other address furnished in writing to
      the Agent by the Company; or

            (c)   the Collateral Agent by the Agent, the Company or any Holder
      shall be sufficient for every purpose hereunder (unless otherwise herein
      expressly provided) if made, given, furnished or filed in writing and
      personally delivered, mailed, first-class postage prepaid, telecopied or
      delivered by overnight air courier guaranteeing next day delivery,
      addressed to and received by the Collateral Agent at ?, Attention: ?,
      telecopy: (212) ?, or at any other address furnished in writing by the
      Collateral Agent to the Agent, the Company and the Holders; or

                                       18
<Page>

            (d)   the Trustee by the Company shall be sufficient for every
      purpose hereunder (unless otherwise herein expressly provided) if made,
      given, furnished or filed in writing and personally delivered, mailed,
      first-class postage prepaid, telecopied or delivered by overnight air
      courier guaranteeing next day delivery, addressed to and received by the
      Trustee at JPMorgan Chase Bank, Attention: Institutional Trust Services,
      telecopy: (212) 946-8154, or at any other address furnished in writing by
      the Trustee to the Company.

            SECTION 1.6 NOTICE TO HOLDERS; WAIVER.

            (a)   Where this Agreement provides for notice to Holders of any
      event, such notice shall be sufficiently given (unless otherwise herein
      expressly provided) if in writing and mailed, first-class postage prepaid,
      to each Holder affected by such event, at its address as it appears in the
      applicable Register, not later than the latest date, and not earlier than
      the earliest date, prescribed for the giving of such notice. In any case
      where notice to Holders is given by mail, neither the failure to mail such
      notice, nor any defect in any notice so mailed, to any particular Holder
      shall affect the sufficiency of such notice with respect to other Holders.
      Where this Agreement provides for notice in any manner, such notice may be
      waived in writing by the Person entitled to receive such notice, either
      before or after the event, and such waiver shall be the equivalent of such
      notice. Waivers of notice by Holders shall be filed with the Agent, but
      such filing shall not be a condition precedent to the validity of any
      action taken in reliance upon such waiver.

            (b)   In case by reason of the suspension of regular mail service or
      by reason of any other cause it shall be impracticable to give such notice
      by mail, then such notification as shall be made with the approval of the
      Agent shall constitute a sufficient notification for every purpose
      hereunder.

            SECTION 1.7 EFFECT OF HEADINGS AND TABLE OF CONTENTS.

            The Article and Section headings herein and the Table of Contents
are for convenience only and shall not affect the construction hereof.

            SECTION 1.8 SUCCESSORS AND ASSIGNS.

            All covenants and agreements in this Agreement by the Company shall
bind its successors and assigns, whether so expressed or not.

            SECTION 1.9 SEPARABILITY CLAUSE.

            In case any provision in this Agreement or in the securities shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions hereof and thereof shall not in any way be affected
or impaired thereby.

                                       19
<Page>

            SECTION 1.10 BENEFITS OF AGREEMENT.

            Nothing in this Agreement or in the Units, express or implied, shall
give to any Person, other than the parties hereto and their successors hereunder
and, to the extent provided hereby, the Holders, any benefits or any legal or
equitable right, remedy or claim under this Agreement. The Holders from time to
time shall be beneficiaries of this Agreement and shall be bound by all of the
terms and conditions hereof and of the Units evidenced by their Certificates by
their acceptance of delivery of such Certificates.

            SECTION 1.11 GOVERNING LAW.

            This Agreement and the Units shall be governed by and construed in
accordance with the laws of the State of New York.

            SECTION 1.12 LEGAL HOLIDAYS.

            (a)   In any case where any Payment Date shall not be a Business
      Day, then (notwithstanding any other provision of this Agreement or the
      Normal Units Certificates) payments on the Units shall not be made on such
      date, but such payments shall be made on the next succeeding day which is
      a Business Day with the same force and effect as if made on such Payment
      Date, provided that no interest shall accrue or be payable by the Company
      in respect of such payment for the period from and after any such Payment
      Date, except that if such next succeeding Business Day is in the next
      succeeding calendar year, such payment shall be made on the immediately
      preceding Business Day with the same force and effect as if made on such
      Payment Date.

            (b)   If any date on which Contract Adjustment Payments are to be
      made on the Purchase Contracts is not a Business Day, then payment of the
      Contract Adjustment Payments payable on that date will be made on the next
      succeeding day which is a Business Day, and no interest or additional
      payment will be paid in respect of the delay. However, if that Business
      Day is in the next succeeding calendar year, the payment will be made on
      the immediately preceding Business Day with the same force and effect as
      if made on that Payment Date.

            (c)   In any case where the Share Purchase Date shall not be a
      Business Day, then (notwithstanding any other provision of this Agreement
      or the Certificates), the Purchase Contracts shall not be performed on
      such date, but the Purchase Contracts shall be performed on the next
      succeeding day which is a Business Day with the same force and effect as
      if performed on the Share Purchase Date.

                                       20
<Page>

            SECTION 1.13 COUNTERPARTS.

            This Agreement may be executed in any number of counterparts by the
parties hereto, each of which, when so executed and delivered, shall be deemed
an original, but all such counterparts shall together constitute one and the
same instrument.

            SECTION 1.14 INSPECTION OF AGREEMENT.

            A copy of this Agreement shall be available at all reasonable times
during normal business hours at the Corporate Trust Office for inspection by any
Holder.

            SECTION 1.15 APPOINTMENT OF FINANCIAL INSTITUTION AS AGENT FOR THE
COMPANY.

            The Company may appoint a financial institution (which may be the
Collateral Agent) to act as its agent in performing its obligations and in
accepting and enforcing performance of the obligations of the Agent and the
Holders, under this Agreement and the Purchase Contracts, by giving notice of
such appointment in the manner provided in Section 1.5 hereof. Any such
appointment shall not relieve the Company in any way from its obligation
hereunder.

            SECTION 1.16 NO WAIVER.

            No failure on the part of the Company, the Agent, the Collateral
Agent, the Securities Intermediary or any of their respective agents to
exercise, and no course of dealing with respect to, and no delay in exercising,
any right, power or remedy hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise by the Company, the Agent, the Collateral
Agent, the Securities Intermediary or any of their respective agents of any
right, power or remedy hereunder preclude any further exercise thereof or the
exercise of any right, power or remedy. The remedies herein are cumulative and
are not exclusive of any remedies provided by law.

                                   ARTICLE II

                                CERTIFICATE FORMS

            SECTION 2.1 FORMS OF CERTIFICATES GENERALLY.

            (a)   The Normal Units Certificates (including the form of Purchase
      Contract forming part of the Normal Units evidenced thereby) shall be in
      substantially the form set forth in Exhibit A hereto, with such letters,
      numbers or other marks of identification or designation and such legends
      or endorsements printed, lithographed or engraved thereon as may be
      required by the rules of any securities exchange or quotation system on
      which the Normal Units are listed or quoted for trading or any depositary
      therefor, or as may, consistently herewith, be

                                       21
<Page>

      determined by the officers of the Company executing such Normal Units
      Certificates, as evidenced by their execution of the Normal Units
      Certificates.

            (b)   The definitive Normal Units Certificates shall be printed,
      lithographed or engraved on steel engraved borders or may be produced in
      any other manner, all as determined by the officers of the Company
      executing such Normal Units Certificates, consistent with the provisions
      of this Agreement, as evidenced by their execution thereof.

            (c)   The Stripped Units Certificates (including the form of
      Purchase Contracts forming part of the Stripped Units evidenced thereby)
      shall be in substantially the form set forth in Exhibit B hereto, with
      such letters, numbers or other marks of identification or designation and
      such legends or endorsements printed, lithographed or engraved thereon as
      may be required by the rules of any securities exchange or the quotation
      system on which the Stripped Units may be listed or quoted for trading or
      any depositary therefor, or as may, consistently herewith, be determined
      by the officers of the Company executing such Stripped Units Certificates,
      as evidenced by their execution of the Stripped Units Certificates.

            (d)   The definitive Stripped Units Certificates shall be printed,
      lithographed or engraved on steel engraved borders or may be produced in
      any other manner, all as determined by the officers of the Company
      executing such Stripped Units Certificates, consistent with the provisions
      of this Agreement, as evidenced by their execution thereof.

            (e)   Every Global Certificate authenticated, executed on behalf of
      the Holders and delivered hereunder shall bear a legend in substantially
      the following form:

            "THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE MEANING OF THE
            PURCHASE CONTRACT AGREEMENT (AS HEREINAFTER DEFINED ON THE REVERSE
            HEREOF) AND IS REGISTERED IN THE NAME OF THE CLEARING AGENCY OR A
            NOMINEE THEREOF. THIS CERTIFICATE MAY NOT BE EXCHANGED IN WHOLE OR
            IN PART FOR A CERTIFICATE REGISTERED, AND NO TRANSFER OF THIS
            CERTIFICATE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF
            ANY PERSON OTHER THAN SUCH CLEARING AGENCY OR A NOMINEE THEREOF,
            EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE
            CONTRACT AGREEMENT."

Unless this Certificate is presented by an authorized representative of the
Depositary Trust Company (55 Water Street, New York, New York) to the Company or
its agent.

                                       22
<Page>

            SECTION 2.2 FORM OF AGENT'S CERTIFICATE OF AUTHENTICATION.

            (a)   The form of the Agent's certificate of authentication of the
      Normal Units shall be in substantially the form set forth on the form of
      the Normal Units Certificates.

            (b)   The form of the Agent's certificate of authentication of the
      Stripped Units shall be in substantially the form set forth on the form of
      the Stripped Units Certificates.

                                  ARTICLE III

                                    THE UNITS

            SECTION 3.1 TITLE AND TERMS; DENOMINATIONS.

            (a)   The aggregate number of Normal Units and Stripped Units, if
      any, evidenced by Certificates authenticated, executed on behalf of the
      Holders and delivered hereunder is limited to 5,000,000 (5,750,000 if the
      underwriters' option to purchase additional Normal Units pursuant to the
      Underwriting Agreement is exercised in full), except for Certificates
      authenticated, executed on behalf of the Holder and delivered upon
      registration of transfer of, in exchange for, or in lieu of, other
      Certificates pursuant to Section 3.4, 3.5, 3.10, 3.13, 3.14, 5.9, 5.10 or
      8.5.

            (b)   The Certificates shall be issuable only in registered form and
      only in denominations of a single Unit and any integral multiple thereof.

            SECTION 3.2 RIGHTS AND OBLIGATIONS EVIDENCED BY THE CERTIFICATES.

            (a)   Each Normal Units Certificate shall evidence the number of
      Normal Units specified therein, with each such Normal Unit representing
      the ownership by the Holder thereof of a 1/40 undivided beneficial
      interest in a Note or the appropriate Treasury Consideration, as the case
      may be, subject to the Pledge of such interest in the Note or the Treasury
      Consideration, as the case may be, by such Holder pursuant to the Pledge
      Agreement, and the rights and obligations of the Holder thereof and the
      Company under one Purchase Contract. The Agent as attorney-in-fact for,
      and on behalf of, the Holder of each Normal Unit shall pledge, pursuant to
      the Pledge Agreement, the interest in the Note or the Treasury
      Consideration forming a part of such Normal Unit, to the Collateral Agent
      and grant to the Collateral Agent a security interest in the right, title,
      and interest of such Holder in such interest in the Note or Treasury
      Consideration for the benefit of the Company, to secure the obligation of
      such Holder under the related Purchase Contract to purchase the Common
      Shares of the Company. Prior to the purchase of Common Shares under each
      Purchase Contract, such Purchase Contract shall not entitle the Holder of
      the related Normal Units Certificates to

                                       23
<Page>

      any of the rights of a holder of Common Shares, including, without
      limitation, the right to vote or receive any dividends or other payments
      or to consent or to receive notice as a shareholder in respect of the
      meetings of shareholders or for the election of directors of the Company
      or for any other matter, or any other rights whatsoever as a shareholder
      of the Company.

            (b)   Each Stripped Units Certificate shall evidence the number of
      Stripped Units specified therein, with each such Stripped Unit
      representing the ownership by the Holder thereof of a 1/40 undivided
      beneficial interest in a Treasury Security, subject to the Pledge of such
      interest in such Treasury Security by such Holder pursuant to the Pledge
      Agreement, and the rights and obligations of the Holder thereof and the
      Company under one Purchase Contract. Prior to the purchase of Common
      Shares under each Purchase Contract, such Purchase Contract shall not
      entitle the Holder of the related Stripped Units Certificates to any of
      the rights of a holder of Common Shares, including, without limitation,
      the right to vote or receive any dividends or other payments or to consent
      or to receive notice as a shareholder in respect of the meetings of
      shareholders or for the election of directors of the Company or for any
      other matter, or any other rights whatsoever as a shareholder of the
      Company.

            SECTION 3.3 EXECUTION, AUTHENTICATION, DELIVERY AND DATING.

            (a)   Subject to the provisions of Sections 3.13 and 3.14, upon the
      execution and delivery of this Agreement, and at any time and from time to
      time thereafter, the Company may deliver Certificates executed by the
      Company to the Agent for authentication, execution on behalf of the
      Holders and delivery, together with its Issuer Order for authentication of
      such Certificates, and the Agent in accordance with such Issuer Order
      shall authenticate, execute on behalf of the Holders and deliver such
      Certificates.

            (b)   The Certificates shall be executed on behalf of the Company by
      the Chief Executive Officer, the Chief Financial Officer, the President,
      any Vice-President, the Treasurer, any Assistant Treasurer, the Secretary
      or any Assistant Secretary (or other officer performing similar functions)
      of the Company and delivered to the Agent. The signature of any of these
      officers on the Certificates may be manual or facsimile.

            (c)   Certificates bearing the manual or facsimile signatures of
      individuals who were at any time the proper officers of the Company shall
      bind the Company, notwithstanding that such individuals or any of them
      have ceased to hold such offices prior to the authentication and delivery
      of such Certificates or did not hold such offices at the date of such
      Certificates.

            (d)   No Purchase Contract evidenced by a Certificate shall be valid
      until such Certificate has been executed on behalf of the Holder by the
      manual signature of an authorized officer of the Agent, as such Holder's
      attorney-in-fact.

                                       24
<Page>

      Such signature by an authorized officer of the Agent shall be conclusive
      evidence that the Holder of such Certificate has entered into the Purchase
      Contract or Purchase Contracts evidenced by such Certificate.

            (e)   Each Certificate shall be dated the date of its
      authentication.

            (f)   No Certificate shall be entitled to any benefit under this
      Agreement or be valid or obligatory for any purpose unless there appears
      on such Certificate a certificate of authentication substantially in the
      form provided for herein executed by an authorized officer of the Agent by
      manual signature, and such certificate upon any Certificate shall be
      conclusive evidence, and the only evidence, that such Certificate has been
      duly authenticated and delivered hereunder.

            SECTION 3.4 TEMPORARY CERTIFICATES.

            (a)   Pending the preparation of definitive Certificates, the
      Company shall execute and deliver to the Agent, and the Agent shall
      authenticate, execute on behalf of the Holders, and deliver, in lieu of
      such definitive Certificates, temporary Certificates which are in
      substantially the form set forth in Exhibit A or Exhibit B hereto, as the
      case may be, with such letters, numbers or other marks of identification
      or designation and such legends or endorsements printed, lithographed or
      engraved thereon as may be required by the rules of any securities
      exchange on which the Normal Units or Stripped Units, as the case may be,
      are listed or quoted for trading or any depositary transfer, or as may,
      consistently herewith, be determined by the officers of the Company
      executing such Certificates, as evidenced by their execution of the
      Certificates.

            (b)   If temporary Certificates are issued, the Company will cause
      definitive Certificates to be prepared without unreasonable delay. After
      the preparation of definitive Certificates, the temporary Certificates
      shall be exchangeable for definitive Certificates upon surrender of the
      temporary Certificates at the Corporate Trust Office, at the expense of
      the Company and without charge to the Holder. Upon surrender for
      cancellation of any one or more temporary Certificates, the Company shall
      execute and deliver to the Agent, and the Agent shall authenticate,
      execute on behalf of the Holder, and deliver in exchange therefor, one or
      more definitive Certificates of like tenor and denominations and
      evidencing a like number of Normal Units or Stripped Units, as the case
      may be, as the temporary Certificate or Certificates so surrendered. Until
      so exchanged, the temporary Certificates shall in all respects evidence
      the same benefits and the same obligations with respect to the Normal
      Units or Stripped Units, as the case may be, evidenced thereby as
      definitive Certificates.

                                       25
<Page>

            SECTION 3.5 REGISTRATION; REGISTRATION OF TRANSFER AND EXCHANGE.

            (a)   The Agent shall keep at the Corporate Trust Office a register
      (the "Normal Units Register") in which, subject to such reasonable
      regulations as it may prescribe, the Agent shall provide for the
      registration of Normal Units Certificates and of transfers of Normal Units
      Certificates (the Agent, in such capacity, the "Normal Units Registrar")
      and a register (the "Stripped Units Register") in which, subject to such
      reasonable regulations as it may prescribe, the Agent shall provide for
      the registration of the Stripped Units Certificates and transfers of
      Stripped Units Certificates (the Agent, in such capacity, the "Stripped
      Units Registrar").

            (b)   Upon surrender for registration of transfer of any Certificate
      at the Corporate Trust Office, the Company shall execute and deliver to
      the Agent, and the Agent shall authenticate, execute on behalf of the
      designated transferee or transferees, and deliver one or more new
      Certificates of like tenor and denominations, registered in the name of
      the designated transferee or transferees, and evidencing a like number of
      Normal Units or Stripped Units, as the case may be.

            (c)   At the option of the Holder, Certificates may be exchanged for
      other Certificates, of like tenor and denominations and evidencing a like
      number of Normal Units or Stripped Units, as the case may be, upon
      surrender of the Certificates to be exchanged at the Corporate Trust
      Office. Whenever any Certificates are so surrendered for exchange, the
      Company shall execute and deliver to the Agent, and the Agent shall
      authenticate, execute on behalf of the Holder, and deliver the
      Certificates which the Holder making the exchange is entitled to receive.

            (d)   All Certificates issued upon any registration of transfer or
      exchange of a Certificate shall evidence the ownership of the same number
      of Normal Units or Stripped Units, as the case may be, and be entitled to
      the same benefits and subject to the same obligations, under this
      Agreement as the Normal Units or Stripped Units, as the case may be,
      evidenced by the Certificate surrendered upon such registration of
      transfer or exchange.

            (e)   Every Certificate presented or surrendered for registration of
      transfer or for exchange shall (if so required by the Company or the
      Agent) be duly endorsed, or be accompanied by a written instrument of
      transfer in form satisfactory to the Company and the Agent duly executed
      by the Holder thereof or its attorney duly authorized in writing.

            (f)   No service charge shall be made for any registration of
      transfer or exchange of a Certificate, but the Company and the Agent may
      require payment from the Holder of a sum sufficient to cover any tax or
      other governmental charge that may be imposed in connection with any
      registration of transfer or exchange

                                       26
<Page>

      of Certificates, other than any exchanges pursuant to Sections 3.6, 3.9
      and 8.5 not involving any transfer.

            (g)   Notwithstanding the foregoing, the Company shall not be
      obligated to execute and deliver to the Agent, and the Agent shall not be
      obligated to authenticate, execute on behalf of the Holder and deliver,
      any Certificate presented or surrendered for registration of transfer or
      for exchange on or after the Business Day immediately preceding the
      earlier of the Share Purchase Date or the Termination Date. In lieu of
      delivery of a new Certificate, upon satisfaction of the applicable
      conditions specified above in this Section and receipt of appropriate
      registration or transfer instructions from such Holder, the Agent shall,

                  (i)   if the Share Purchase Date has occurred, deliver the
            Common Shares issuable in respect of the Purchase Contracts forming
            a part of the Units evidenced by such Certificate,

                  (ii)  in the case of Normal Units, if a Termination Event
            shall have occurred prior to the Share Purchase Date, transfer the
            Notes or the appropriate Treasury Consideration, as applicable,
            relating to such Normal Units, or

                  (iii) in the case of Stripped Units, if a Termination
            Event shall have occurred prior to the Share Purchase Date, transfer
            the Treasury Securities relating to such Stripped Units,

      in each case subject to the applicable conditions and in accordance with
      the applicable provisions of Article V.

            SECTION 3.6 BOOK-ENTRY INTERESTS.

            The Certificates, on original issuance, will be issued in the form
of one or more fully registered Global Certificates, to be delivered to the
Depositary or a nominee or custodian thereof by, or on behalf of, the Company.
Such Global Certificate shall initially be registered on the books and records
of the Company in the name of Cede & Co., the nominee of the Depositary, and no
Beneficial Owner will receive a definitive Certificate representing such
Beneficial Owner's interest in such Global Certificate, except as provided in
Section 3.9. The Agent shall enter into a customary agreement with the
Depositary if so requested by the Company. Unless and until definitive, fully
registered Certificates have been issued to Beneficial Owners pursuant to
Section 3.9:

            (a)   the provisions of this Section 3.6 shall be in full force and
      effect;

            (b)   the Company and the Agent shall be entitled to deal with the
      Clearing Agency for all purposes of this Agreement (including the payment
      of Contract Adjustment Payments, if any, and receiving approvals, votes or
      consents

                                       27
<Page>

      hereunder) as the Holder of the Units and the sole holder of the Global
      Certificate(s) and shall have no obligation to the Beneficial Owners;

            (c)   to the extent that the provisions of this Section 3.6 conflict
      with any other provisions of this Agreement or any Certificate, the
      provisions of this Section 3.6 shall control; and

            (d)   the rights of the Beneficial Owners shall be exercised only
      through the Clearing Agency and shall be limited to those established by
      law and agreements between such Beneficial Owners and the Clearing Agency
      and/or the Clearing Agency Participants.

            The Clearing Agency will make book-entry transfers among Clearing
Agency Participants and receive and transmit payments of Contract Adjustment
Payments to such Clearing Agency Participants.

            SECTION 3.7       NOTICES TO HOLDERS.

            Whenever a notice or other communication to the Holders is required
to be given under this Agreement, the Company or the Company's agent shall give
such notices and communications to the Holders and, with respect to any Units
registered in the name of a Clearing Agency or the nominee of a Clearing Agency,
the Company or the Company's agent shall, except as set forth herein, have no
obligations to the Beneficial Owners.

            SECTION 3.8 APPOINTMENT OF SUCCESSOR CLEARING AGENCY.

            If any Clearing Agency elects to discontinue its services as
securities depositary with respect to the Units, the Company may, in its sole
discretion, appoint a successor Clearing Agency with respect to the Units.

            SECTION 3.9 DEFINITIVE CERTIFICATES.

            If

                  (i)   a Clearing Agency notifies the Company that it is
            unwilling or unable to continue its services as securities
            depositary with respect to the Units and a successor Clearing Agency
            is not appointed within 90 days after such discontinuance pursuant
            to Section 3.8,

                  (ii)  the Company elects to terminate the book-entry system
            arrangements through the Clearing Agency with respect to the Units,
            or

                  (iii) there shall have occurred and be continuing a default by
            the Company in respect of its obligations under one or more Purchase
            Contracts,

                                       28
<Page>

            then upon surrender of the Global Certificates representing the
            Book-Entry Interests with respect to the Units by the Clearing
            Agency, accompanied by registration instructions, the Company shall
            cause definitive Certificates to be delivered to Beneficial Owners
            in accordance with the instructions of the Clearing Agency. The
            Company shall not be liable for any delay in delivery of such
            instructions and may conclusively rely on and shall be protected in
            relying on, such instructions.

            SECTION 3.10 MUTILATED, DESTROYED, LOST AND STOLEN CERTIFICATES.

            (a)   If any mutilated Certificate is surrendered to the Agent, the
      Company shall execute and deliver to the Agent, and the Agent shall
      authenticate, execute on behalf of the Holder, and deliver in exchange
      therefor, a new Certificate at the cost of the Holder, evidencing the same
      number of Normal Units or Stripped Units, as the case may be, and bearing
      a Certificate number not contemporaneously outstanding.

            (b)   If there shall be delivered to the Company and the Agent (i)
      evidence to their satisfaction of the destruction, loss or theft of any
      Certificate, and (ii) such security or indemnity at the cost of the Holder
      as may be required by them to hold each of them and any agent of either of
      them harmless, then, in the absence of notice to the Company or to a
      Responsible Officer of the Agent that such Certificate has been acquired
      by a bona fide purchaser, the Company shall execute and deliver to the
      Agent, and the Agent shall authenticate, execute on behalf of the Holder,
      and deliver to the Holder, in lieu of any such destroyed, lost or stolen
      Certificate, a new Certificate, evidencing the same number of Normal Units
      or Stripped Units, as the case may be, and bearing a Certificate number
      not contemporaneously outstanding.

            (c)   Notwithstanding the foregoing, the Company shall not be
      obligated to execute and deliver to the Agent, and the Agent shall not be
      obligated to authenticate, execute on behalf of the Holder, and deliver to
      the Holder, a Certificate on or after the Business Day immediately
      preceding the earlier of the Share Purchase Date or the Termination Date.
      In lieu of delivery of a new Certificate, upon satisfaction of the
      applicable conditions specified above in this Section and receipt of
      appropriate registration or transfer instructions from such Holder, the
      Agent shall (i) if the Share Purchase Date has occurred, deliver the
      Common Shares issuable in respect of the Purchase Contracts forming a part
      of the Units evidenced by such Certificate, or (ii) if a Termination Event
      shall have occurred prior to the Share Purchase Date, transfer the Notes,
      the appropriate Treasury Consideration or the Treasury Securities, as the
      case may be, evidenced thereby, in each case subject to the applicable
      conditions and in accordance with the applicable provisions of Article V.

                                       29
<Page>

            (d)   Upon the issuance of any new Certificate under this Section,
      the Company and the Agent may require the payment by the Holder of a sum
      sufficient to cover any tax or other governmental charge that may be
      imposed in relation thereto and any other expenses (including the fees and
      expenses of the Agent) connected therewith.

            (e)   Every new Certificate issued pursuant to this Section in lieu
      of any destroyed, lost or stolen Certificate shall constitute an original
      additional contractual obligation of the Company and of the Holder in
      respect of the Unit evidenced thereby, whether or not the destroyed, lost
      or stolen Certificate (and the Units evidenced thereby) shall be at any
      time enforceable by anyone, and shall be entitled to all the benefits and
      be subject to all the obligations of this Agreement equally and
      proportionately with any and all other Certificates delivered hereunder.

            (f)   The provisions of this Section are exclusive and shall
      preclude (to the extent lawful) all other rights and remedies with respect
      to the replacement or payment of mutilated, destroyed, lost or stolen
      Certificates.

            SECTION 3.11 PERSONS DEEMED OWNERS.

            (a)   Prior to due presentment of a Certificate for registration of
      transfer, the Company and the Agent, and any agent of the Company or the
      Agent, may treat the Person in whose name such Certificate is registered
      on the Register as the owner of the Units evidenced thereby, for the
      purpose of receiving quarterly payments on the Notes or Treasury
      Consideration, receiving payment of Contract Adjustment Payments, if any,
      and any Deferred Contract Adjustment Payments, performance of the Purchase
      Contracts and for all other purposes whatsoever, whether or not any such
      payments shall be overdue and notwithstanding any notice to the contrary,
      and neither the Company nor the Agent, nor any agent of the Company or the
      Agent, shall be affected by notice to the contrary.

            (b)   Notwithstanding the foregoing, with respect to any Global
      Certificate, nothing herein shall prevent the Company, the Agent or any
      agent of the Company or the Agent, from treating the Clearing Agency as
      the sole Holder of such Global Certificate or from giving effect to any
      written certification, proxy or other authorization furnished by any
      Clearing Agency (or its nominee), as a Holder of such Global Certificate,
      with respect to such Global Certificate or impair, as between such
      Clearing Agency and owners of beneficial interests in such Global
      Certificate, the operation of customary practices governing the exercise
      of rights of such Clearing Agency (or its nominee) as a Holder of such
      Global Certificate.

                                       30
<Page>

            SECTION 3.12 CANCELLATION.

            (a)   All Certificates surrendered (i) for delivery of Common Shares
      on or after any Settlement Date; (ii) upon the transfer of Notes or
      Treasury Consideration or Treasury Securities, as the case may be, after
      the occurrence of a Termination Event or pursuant to an Early Settlement
      or Merger Early Settlement, or a Collateral Substitution or an
      establishment or re-establishment of a Normal Unit; or (iii) upon the
      registration of a transfer or exchange of a Unit shall, if surrendered to
      any Person other than the Agent, be delivered to the Agent and, if not
      already cancelled, shall be promptly cancelled by it. The Company may at
      any time deliver to the Agent for cancellation any Certificates previously
      authenticated, executed on behalf of the Holder and delivered hereunder
      which the Company may have acquired in any manner whatsoever, and all
      Certificates so delivered shall, upon Issuer Order, be promptly cancelled
      by the Agent. No Certificates shall be authenticated, executed on behalf
      of the Holder and delivered in lieu of or in exchange for any Certificates
      cancelled as provided in this Section, except as expressly permitted by
      this Agreement. All cancelled Certificates held by the Agent shall be
      disposed of by the Agent in accordance with its then customary procedures.

            (b)   If the Company or any Affiliate of the Company shall acquire
      any Certificate, such acquisition shall not operate as a cancellation of
      such Certificate unless and until such Certificate is delivered to the
      Agent cancelled or for cancellation.

            SECTION 3.13 ESTABLISHMENT OF STRIPPED UNITS.

            (a)   A Holder may separate the Pledged Notes or Pledged Treasury
      Consideration, as applicable, from the related Purchase Contracts in
      respect of the Normal Units held by such Holder by substituting for such
      Pledged Notes or Pledged Treasury Consideration, as the case may be,
      Treasury Securities that will pay at the Share Purchase Date an amount
      equal to the aggregate Stated Amount of such Normal Units (a "Collateral
      Substitution"), at any time from and after the date of this Agreement and
      on or prior to the second Business Day immediately preceding the Share
      Purchase Date, by (i) depositing with the Collateral Agent Treasury
      Securities having an aggregate principal amount equal to the aggregate
      Stated Amount of such Normal Units, and (ii) transferring the related
      Normal Units to the Agent accompanied by a notice to the Agent,
      substantially in the form of Exhibit D hereto, stating that the Holder has
      transferred the relevant amount of Treasury Securities to the Collateral
      Agent and requesting that the Agent instruct the Collateral Agent to
      release the Pledged Notes or Pledged Treasury Consideration, as the case
      may be, underlying such Normal Units, whereupon the Agent shall promptly
      give such instruction to the Collateral Agent, substantially in the form
      of Exhibit C hereto. Notwithstanding the foregoing, a Holder may not
      separate the Pledged Notes or Pledged Treasury Consideration from the
      related

                                       31
<Page>

      Purchase Contracts in respect of the Normal Units held by such Holder
      during the periods beginning on the fourth Business Day prior to the first
      day of any Remarketing Period and ending on the third Business Day after
      the end of such Remarketing Period. Upon receipt of the Treasury
      Securities described in clause (i) above and the instruction described in
      clause (ii) above, in accordance with the terms of the Pledge Agreement,
      the Collateral Agent will release to the Agent, on behalf of the Holder,
      such Pledged Notes or Pledged Treasury Consideration from the Pledge, free
      and clear of the Company's security interest therein, and upon receipt
      thereof the Agent shall promptly:

                  (x)   cancel the related Normal Units;

                  (y)   transfer the Pledged Notes or Pledged Treasury
            Consideration, as the case may be, to the Holder; and

                  (z)   authenticate, execute on behalf of such Holder and
            deliver a Stripped Units Certificate executed by the Company in
            accordance with Section 3.3 evidencing the same number of Purchase
            Contracts as were evidenced by the cancelled Normal Units.

            (b)   Holders who elect to separate the Pledged Notes or Pledged
      Treasury Consideration, as the case may be, from the related Purchase
      Contract and to substitute Treasury Securities for such Pledged Notes or
      Pledged Treasury Consideration shall be responsible for any fees or
      expenses payable to the Collateral Agent for its services as Collateral
      Agent in respect of the substitution, and the Company shall not be
      responsible for any such fees or expenses.

            (c)   Holders may make Collateral Substitutions (i) if Treasury
      Securities are being substituted for Pledged Notes, only in integral
      multiples of 40 Normal Units, or (ii) if the Collateral Substitutions
      occur after a successful remarketing of the Notes pursuant to the
      provisions of Section 5.4 or after a Tax Event Redemption, as the case may
      be, only in integral multiples of Normal Units such that the Treasury
      Securities to be deposited and the Treasury Consideration to be released
      are in integral multiples of $1,000.

            (d)   In the event a Holder making a Collateral Substitution
      pursuant to this Section 3.13 fails to effect a book-entry transfer of the
      Normal Units or fails to deliver a Normal Units Certificate to the Agent
      after depositing Treasury Securities with the Collateral Agent, the
      Pledged Notes or Pledged Treasury Consideration, as the case may be,
      constituting a part of such Normal Units, and any distributions on such
      Pledged Notes or Pledged Treasury Consideration shall be held in the name
      of the Agent or its nominee in trust for the benefit of such Holder, until
      such Normal Units are so transferred or the Normal Units Certificate is so
      delivered, as the case may be, or, with respect to a Normal Units
      Certificate, such Holder provides evidence satisfactory to the Company and
      the Agent that

                                       32
<Page>

      such Normal Units Certificate has been destroyed, lost or stolen, together
      with any indemnity that may be required by the Agent and the Company.

            (e)   Except as described in this Section 3.13, for so long as the
      Purchase Contract underlying a Normal Unit remains in effect, such Normal
      Unit shall not be separable into its constituent parts, and the rights and
      obligations of the Holder of such Normal Unit in respect of the Pledged
      Note or the Pledged Treasury Consideration, as the case may be, and the
      Purchase Contract comprising such Normal Unit may be acquired, and may be
      transferred and exchanged, only as a Normal Unit.

            SECTION 3.14 REESTABLISHMENT OF NORMAL UNITS.

            (a)   A Holder of Stripped Units may reestablish Normal Units at any
      time from and after the date of this Agreement and on or prior to the
      second Business Day immediately preceding the Share Purchase Date, by (i)
      depositing with the Collateral Agent the Notes or the appropriate Treasury
      Consideration (identified and calculated by reference to the Treasury
      Consideration then comprising Normal Units), as the case may be, then
      comprising such number of Normal Units as is equal to the number of such
      Stripped Units and (ii) transferring such Stripped Units to the Agent
      accompanied by a notice to the Agent, substantially in the form of Exhibit
      D hereto, stating that the Holder has transferred the relevant amount of
      Notes or the appropriate Treasury Consideration, as the case may be, to
      the Collateral Agent and requesting that the Agent instruct the Collateral
      Agent to release the Pledged Treasury Securities underlying such Stripped
      Unit, whereupon the Agent shall promptly give such instruction to the
      Collateral Agent, substantially in the form of Exhibit C hereto.
      Notwithstanding the foregoing, a Holder may not reestablish Normal Units
      during the periods beginning on the fourth Business Day prior to the first
      day of any Remarketing Period and ending on the third Business Day after
      the end of such Remarketing Period. Upon receipt of the Notes or the
      appropriate Treasury Consideration, as the case may be, described in
      clause (i) above and the instruction described in clause (ii) above, in
      accordance with the terms of the Pledge Agreement, the Collateral Agent
      will release to the Agent, on behalf of the Holder, such Pledged Treasury
      Securities from the Pledge, free and clear of the Company's security
      interest therein, and upon receipt thereof the Agent shall promptly:

                  (x)   cancel the related Stripped Units;

                  (y)   transfer the Pledged Treasury Securities to the
            Holder; and

                  (z)   authenticate, execute on behalf of such Holder and
            deliver a Normal Units Certificate executed by the Company in
            accordance with Section 3.3 evidencing the same number of Purchase
            Contracts as were evidenced by the cancelled Stripped Units.

                                       33
<Page>

            (b)   Holders of Stripped Units may reestablish Normal Units (i) if
      Notes are being substituted for the Pledged Treasury Securities, only in
      integral multiples of 40 Stripped Units for 40 Normal Units or (ii) if the
      reestablishment occurs after a successful remarketing of the Notes
      pursuant to the provisions of Section 5.4 or after a Tax Event Redemption,
      as the case may be, only in integral multiples of Stripped Units such that
      the Treasury Consideration to be deposited and the Treasury Securities to
      be released are in integral multiples of $1,000.

            (c)   Except as provided in this Section 3.14, for so long as the
      Purchase Contract underlying a Stripped Unit remains in effect, such
      Stripped Unit shall not be separable into its constituent parts, and the
      rights and obligations of the Holder of such Stripped Unit in respect of
      the Pledged Treasury Securities and Purchase Contract comprising such
      Stripped Unit may be acquired, and may be transferred and exchanged, only
      as a Stripped Unit.

            SECTION 3.15 TRANSFER OF COLLATERAL UPON OCCURRENCE OF TERMINATION
EVENT.

            Upon the occurrence of a Termination Event and the transfer to the
Agent of the Notes or the appropriate Treasury Consideration or the Treasury
Securities, as the case may be, underlying the Normal Units and the Stripped
Units pursuant to the terms of the Pledge Agreement, the Agent shall request
transfer instructions with respect to such Notes or the appropriate Treasury
Consideration or Treasury Securities, as the case may be, from each Holder by
written request mailed to such Holder at its address as it appears in the Normal
Units Register or the Stripped Units Register, as the case may be. Upon
book-entry transfer of the Normal Units or Stripped Units or delivery of a
Normal Units Certificate or Stripped Units Certificate to the Agent with such
transfer instructions, the Agent shall transfer the Notes, the appropriate
Treasury Consideration or the Treasury Securities underlying such Normal Units
or Stripped Units, as the case may be, to such Holder by book-entry transfer, or
other appropriate procedures, in accordance with such instructions. In the event
a Holder of Normal Units or Stripped Units fails to effect such transfer or
delivery, the Notes, the appropriate Treasury Consideration or the Treasury
Securities, as the case may be, underlying such Normal Units or Stripped Units,
as the case may be, and any distributions thereon, shall be held in the name of
the Agent or its nominee in trust for the benefit of such Holder, until such
Normal Units or Stripped Units are transferred or the Normal Units Certificate
or Stripped Units Certificate is surrendered or such Holder provides
satisfactory evidence that such Normal Units Certificate or Stripped Units
Certificate has been destroyed, lost or stolen, together with any indemnity that
may be required by the Agent and the Company. In the case of the Treasury
Portfolio or any Treasury Securities, the Agent may dispose of the subject
securities for cash and pay the applicable portion of such cash to the Holders
in lieu of such Holders' Treasury Securities, where such Holder would otherwise
have been entitled to receive less than $1,000 of any such security.

                                       34
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            SECTION 3.16 NO CONSENT TO ASSUMPTION.

            Each Holder of a Unit, by acceptance thereof, shall be deemed
expressly to have withheld any consent to the assumption (i.e., affirmance),
under Section 365 of the Bankruptcy Code or otherwise, of the Purchase Contract
by the Company, any receiver, liquidator or person or entity performing similar
functions or its trustee in the event that the Company becomes the debtor under
the Bankruptcy Code or subject to other similar state or federal law providing
for reorganization or liquidation.

            SECTION 3.17 CUSIP NUMBERS.

            The Company in issuing the Securities may use "CUSIP" numbers (if
then generally in use), and, if so, the Agent shall use "CUSIP" numbers in
notices of redemption as a convenience to Holders; PROVIDED that any such notice
may state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be affected
by any defect in or omission of such numbers. The Company will promptly notify
the Agent of any changes in the "CUSIP" numbers.

                                   ARTICLE IV

                                    THE NOTES

            SECTION 4.1 PAYMENT OF INTEREST; RIGHTS TO INTEREST PAYMENTS
PRESERVED; NOTICE.

            (a)   A payment on any Note or Treasury Consideration, as the case
      may be, which is paid on any Payment Date shall, subject to receipt
      thereof by the Agent from the Collateral Agent as provided by the terms of
      the Pledge Agreement, be paid to the Person in whose name the Normal Units
      Certificate (or one or more Predecessor Normal Units Certificates) of
      which such Note or the appropriate Treasury Consideration is a part is
      registered at the close of business on the Record Date for such Payment
      Date.

            (b)   Each Normal Units Certificate evidencing Notes delivered under
      this Agreement upon registration of transfer of or in exchange for or in
      lieu of any other Normal Units Certificate shall carry the rights to
      interest accrued and unpaid, and to accrue interest, which were carried by
      the Notes underlying such other Normal Units Certificate.

            (c)   In the case of any Normal Unit with respect to which Early
      Settlement of the underlying Purchase Contract is effected on an Early
      Settlement Date, or with respect to which Merger Early Settlement of the
      underlying Purchase Contract is effected on a Merger Early Settlement
      Date, or with respect to which Cash Settlement is effected on the Business
      Day immediately preceding

                                       35
<Page>

      the Share Purchase Date, or with respect to which a Collateral
      Substitution is effected, in each case on a date that is after any Record
      Date and on or prior to the next succeeding Payment Date, payments on the
      Note or the appropriate Treasury Consideration, as the case may be,
      underlying such Normal Unit otherwise payable on such Payment Date shall
      be payable on such Payment Date notwithstanding such Early Settlement,
      Merger Early Settlement, Cash Settlement or Collateral Substitution, as
      the case may be, and such payments shall, subject to receipt thereof by
      the Agent, be payable to the Person in whose name the Normal Units
      Certificate (or one or more Predecessor Normal Unit Certificates) was
      registered at the close of business on such Record Date. Except as
      otherwise expressly provided in the immediately preceding sentence, in the
      case of any Normal Unit with respect to which Early Settlement, Merger
      Early Settlement or Cash Settlement of the underlying Purchase Contract is
      effected, or with respect to which a Collateral Substitution has been
      effected, payments on the related Notes or payments on the appropriate
      Treasury Consideration that would otherwise be payable after the
      applicable Settlement Date or after such Collateral Substitution, as the
      case may be, shall not be payable hereunder to the Holder of such Normal
      Unit; provided, that to the extent that such Holder continues to hold the
      separated Notes that formerly comprised a part of such Holder's Normal
      Units, such Holder shall be entitled to receive any payments on such
      separated Notes.

            SECTION 4.2 NOTICE AND VOTING.

            Under and subject to the terms of the Pledge Agreement and this
Agreement, the Agent will be entitled to exercise the voting and any other
consensual rights pertaining to the Pledged Notes but only to the extent
instructed by the Holders as described below. Upon receipt of notice of any
meeting at which holders of Notes are entitled to vote or upon any solicitation
of consents, waivers or proxies of holders of Notes, the Agent shall, as soon as
practicable thereafter, mail to the Holders of Normal Units a notice (a)
containing such information as is contained in the notice or solicitation, (b)
stating that each Holder on the record date set by the Agent therefor (which, to
the extent possible, shall be the same date as the record date for determining
the holders of Notes entitled to vote) shall be entitled to instruct the Agent
as to the exercise of the voting rights pertaining to the Pledged Notes
underlying their Normal Units and (c) stating the manner in which such
instructions may be given. Upon the written request of any Holder of Normal
Units on such record date, the Agent shall endeavor insofar as practicable to
vote or cause to be voted, in accordance with the instructions set forth in such
request, the maximum number of Pledged Notes as to which any particular voting
instructions are received. In the absence of specific instructions from the
Holder of a Normal Unit, the Agent shall abstain from voting the Pledged Note
underlying such Normal Unit. The Company hereby agrees, if applicable, to
solicit Holders of Normal Units to timely instruct the Agent in order to enable
the Agent to vote such Pledged Notes.

                                       36
<Page>

            SECTION 4.3 TAX EVENT REDEMPTION.

            Upon the occurrence of a Tax Event Redemption prior to the
successful remarketing of the Notes pursuant to the provisions of Section 5.4,
the Company may elect to instruct in writing the Collateral Agent to apply, and
upon such written instruction, the Collateral Agent shall apply, out of the
aggregate Redemption Price for the Notes that are components of Normal Units, an
amount equal to the Tax Event Redemption Principal Amount to purchase on behalf
of the Holders of Normal Units the Treasury Portfolio and promptly remit the
remaining portion of such Redemption Price to the Agent for payment to the
Holders of such Normal Units. The Treasury Portfolio will be substituted for the
Pledged Notes, and will be pledged to the Collateral Agent in accordance with
the terms of the Pledge Agreement to secure the obligation of each Holder of a
Normal Unit to purchase the Common Shares under the Purchase Contract
constituting a part of such Normal Unit. Following the occurrence of a Tax Event
Redemption prior to a successful remarketing of the Notes pursuant to the
provisions of Section 5.4, the Holders of Normal Units and the Collateral Agent
shall have such security interests, rights and obligations with respect to the
Treasury Portfolio as the Holder of Normal Units and the Collateral Agent had in
respect of the Notes, as the case may be, subject to the Pledge thereof as
provided in Articles II, III, IV, V and VI of the Pledge Agreement, and any
reference herein or in the Certificates to the Note shall be deemed to be a
reference to such Treasury Portfolio and any reference herein or in the
Certificates to interest on the Notes shall be deemed to be a reference to
corresponding distributions on the Treasury Portfolio. The Company may cause to
be made in any Normal Unit Certificates thereafter to be issued such change in
phraseology and form (but not in substance) as may be appropriate to reflect the
substitution of the Treasury Portfolio for Notes as collateral.

            The Company shall cause notice of any Tax Event Redemption to be
mailed, at least 30 calendar days but not more than 60 calendar days before such
Tax Event Redemption Date, to each Holder of Notes to be redeemed at its
registered address.

            Upon the occurrence of a Tax Event Redemption after the successful
remarketing of the Notes, the Redemption Price will be payable in cash to the
holders of the Notes.

            SECTION 4.4 CONSENT TO TREATMENT FOR TAX PURPOSES.

            Each Holder of a Normal Unit or a Stripped Unit, by its acceptance
thereof, covenants and agrees to treat itself as the owner, for federal, state
and local income and franchise tax purposes of (i) the related Notes or the
appropriate Treasury Consideration, in the case of the Normal Units, or (ii) the
Treasury Securities, in the case of the Stripped Units. Each Holder of a Normal
Unit, by its acceptance thereof, further covenants and agrees to treat the Notes
as indebtedness of the Company for federal, state and local income and franchise
tax purposes.

                                       37
<Page>

                                   ARTICLE V

                THE PURCHASE CONTRACTS; THE REMARKETING

            SECTION 5.1 PURCHASE OF COMMON SHARES.

            (a)   Each Purchase Contract shall, unless an Early Settlement has
      occurred in accordance with Section 5.9, or a Merger Early Settlement has
      occurred in accordance with Section 5.10, obligate the Holder of the
      related Unit to purchase, and the Company to sell, on the Share Purchase
      Date at a price equal to $25 (the "Purchase Price"), a number of newly
      issued Common Shares equal to the Settlement Rate unless, on or prior to
      the Share Purchase Date, there shall have occurred a Termination Event
      with respect to the Unit of which such Purchase Contract is a part. The
      "Settlement Rate" is equal to,

                  (i)   if the Applicable Market Value (as defined below) is
            equal to or greater than $- (the "Threshold Appreciation Price"), -
            Common Shares per Purchase Contract,

                  (ii)  if the Applicable Market Value is less than the
            Threshold Appreciation Price, but is greater than $-, the number of
            Common Shares per Purchase Contract equal to the Stated Amount of
            the related Unit divided by the Applicable Market Value, and

                  (iii) if the Applicable Market Value is equal to or less than
            $-, - Common Shares per Purchase Contract,

      in each case subject to adjustment as provided in Section 5.6 (and in each
      case rounded upward or downward to the nearest 1/10,000th of a share).

            (b)   No fractional Common Shares will be issued by the Company with
      respect to the payment of Contract Adjustment Payments on the Share
      Purchase Date. In lieu of fractional shares otherwise issuable with
      respect to such payment of Contract Adjustment Payments, the Holder will
      be entitled to receive an amount in cash as provided in Section 5.12.

            (c)   The "Applicable Market Value" means the average of the Closing
      Price per Common Share on each of the 20 consecutive Trading Days ending
      on the third Trading Day immediately preceding the Share Purchase Date or,
      in the event of a Cash Merger contemplated by Section 5.10, the Cash
      Merger Date. The "Closing Price" of the Common Shares on any date of
      determination means the closing sale price (or, if no closing price is
      reported, the last reported sale price) of the Common Shares on the New
      York Stock Exchange (the "NYSE") on such date or, if the Common Shares are
      not listed for trading on the NYSE on any such date, as reported in the
      composite transactions for the principal United States securities exchange
      on which the Common Shares are so listed, or if the Common

                                       38
<Page>

      Shares are not so listed on a United States securities exchange, as
      reported by The Nasdaq Stock Market, or, if the Common Shares are not so
      reported, the last quoted bid price for the Common Shares in the
      over-the-counter market as reported by the National Quotation Bureau or
      similar organization, or, if such bid price is not available, the market
      value of the Common Shares on such date as determined by a nationally
      recognized independent investment banking firm retained for this purpose
      by the Company. A "Trading Day" means a day on which the Common Shares (A)
      are not suspended from trading on any national or regional securities
      exchange or association or over-the-counter market at the close of
      business and (B) have traded at least once on the national or regional
      securities exchange or association or over-the-counter market that is the
      primary market for the trading of the Common Shares at the close of
      business on such day.

            (d)   Each Holder of a Unit, by its acceptance thereof, irrevocably
      authorizes the Agent to enter into and perform the related Purchase
      Contract on its behalf as its attorney-in-fact (including the execution of
      Certificates on behalf of such Holder), agrees to be bound by the terms
      and provisions thereof, covenants and agrees to perform its obligations
      under such Purchase Contract, consents to the provisions hereof,
      irrevocably authorizes the Agent as its attorney-in-fact to enter into and
      perform the Pledge Agreement on its behalf as its attorney-in-fact, and
      consents to and agrees to be bound by the Pledge of the Notes, the
      appropriate Treasury Consideration or the Treasury Securities pursuant to
      the Pledge Agreement; provided that upon a Termination Event, the rights
      of the Holder of such Unit under the Purchase Contract may be enforced
      without regard to any other rights or obligations. Each Holder of a Unit,
      by its acceptance thereof, further covenants and agrees, that, to the
      extent and in the manner provided in Section 5.4 and the Pledge Agreement,
      but subject to the terms thereof, payments in respect of the Pledged
      Notes, the Pledged Treasury Consideration or the Pledged Treasury
      Securities to be paid upon settlement of such Holder's obligations to
      purchase Common Shares under the Purchase Contract, shall be paid on the
      Share Purchase Date by the Collateral Agent to the Company in satisfaction
      of such Holder's obligations under such Purchase Contract and such Holder
      shall acquire no right, title or interest in such payments.

            (e)   Upon registration of transfer of a Certificate, the transferee
      shall be bound (without the necessity of any other action on the part of
      such transferee) under the terms of this Agreement, the Purchase Contracts
      underlying such Certificate and the Pledge Agreement, and the transferor
      shall be released from the obligations under this Agreement, the Purchase
      Contracts underlying the Certificate so transferred and the Pledge
      Agreement. The Company covenants and agrees, and each Holder of a
      Certificate, by its acceptance thereof, likewise covenants and agrees, to
      be bound by the provisions of this paragraph.

                                       39
<Page>

            SECTION 5.2 CONTRACT ADJUSTMENT PAYMENTS.

            (a)   Subject to Section 5.3 herein, the Company shall pay, on each
      Payment Date, the Contract Adjustment Payments, if any, payable in respect
      of each Purchase Contract to the Person in whose name a Certificate (or
      one or more Predecessor Certificates) is registered on the Register at the
      close of business on the Record Date next preceding such Payment Date in
      such coin or currency of the United States as at the time of payment shall
      be legal tender for payments. The Contract Adjustment Payments, if any,
      will be payable at - or, at the option of the Company, by check mailed to
      the address of the Person entitled thereto at such Person's address as it
      appears on the Register or by wire transfer to the account designated by a
      prior written notice by such Person.

            (b)   Upon the occurrence of a Termination Event, the Company's
      obligation to pay Contract Adjustment Payments (including any accrued
      Deferred Contract Adjustment Payments), if any, shall cease.

            (c)   Each Certificate delivered under this Agreement upon
      registration of transfer of or in exchange for or in lieu of any other
      Certificate (including as a result of a Collateral Substitution or the
      re-establishment of a Normal Unit) shall carry the rights to Contract
      Adjustment Payments, if any, accrued and unpaid, and to accrue Contract
      Adjustment Payments, if any, which were carried by the Purchase Contracts
      underlying such other Certificates.

            (d)   Subject to Sections 5.4, 5.9 and 5.10, in the case of any Unit
      with respect to which Early Settlement or Merger Early Settlement of the
      underlying Purchase Contract is effected on an Early Settlement Date or a
      Merger Early Settlement Date, respectively, or in respect of which Cash
      Settlement of the underlying Purchase Contract is effected on the Business
      Day immediately preceding the Share Purchase Date, or with respect to
      which a Collateral Substitution or an establishment or re-establishment of
      a Normal Unit pursuant to Section 3.14 is effected, in each case on a date
      that is after any Record Date and on or prior to the next succeeding
      Payment Date, Contract Adjustment Payments on the Purchase Contract
      underlying such Unit otherwise payable on such Payment Date shall be
      payable on such Payment Date notwithstanding such Cash Settlement, Early
      Settlement, Merger Early Settlement, Collateral Substitution or
      establishment or re-establishment of Normal Units, and such Contract
      Adjustment Payments shall, subject to receipt thereof by the Agent, be
      paid to the Person in whose name the Certificate evidencing such Unit (or
      one or more Predecessor Certificates) was registered at the close of
      business on such Record Date. Except as otherwise expressly provided in
      the immediately preceding sentence, in the case of any Unit with respect
      to which Early Settlement or Merger Early Settlement or Cash Settlement of
      the underlying Purchase Contract is effected on an Early Settlement Date
      or Merger Early Settlement Date or on the Business Day immediately
      preceding the Share Purchase Date, as the case may be, or with

                                       40
<Page>

      respect to which a Collateral Substitution or an establishment or
      re-establishment of a Normal Unit has been effected, Contract Adjustment
      Payments, if any, that would otherwise be payable after the Early
      Settlement Date, or Merger Early Settlement Date, Collateral Substitution
      or such establishment or re-establishment with respect to such Purchase
      Contract shall not be payable.

            (e)   The Company's obligations with respect to Contract Adjustment
      Payments (including any accrued or Deferred Contract Adjustment Payments)
      will be subordinated and junior in right of payment to the Company's
      obligations under any Senior Indebtedness.

            (f)   In the event (x) of any payment by, or distribution of assets
      of, the Company of any kind or character, whether in cash, property or
      securities, to creditors upon any dissolution, winding-up, liquidation or
      reorganization of the Company, whether voluntary or involuntary or in
      bankruptcy, insolvency, receivership or other proceedings, or (y) subject
      to the provisions of Section 5.2(h) below, that (i) a default shall have
      occurred and be continuing with respect to the payment of principal,
      interest or any other monetary amounts due and payable on any Senior
      Indebtedness and such default shall have continued beyond the period of
      grace, if any, specified in the instrument evidencing such Senior
      Indebtedness (and the Agent shall have received written notice thereof
      from the Company or one or more holders of Senior Indebtedness or their
      representative or representatives or the trustee or trustees under any
      indenture pursuant to which any such Senior Indebtedness may have been
      issued), or (ii) the maturity of any Senior Indebtedness shall have been
      accelerated because of a default in respect of such Senior Indebtedness
      (and the Agent shall have received written notice thereof from the Company
      or one or more holders of Senior Indebtedness or their representative or
      representatives or the trustee or trustees under any indenture pursuant to
      which any such Senior Indebtedness may have been issued), then:

                  (i)   the holders of all Senior Indebtedness shall first be
            entitled to receive, in the case of clause (x) above, payment in
            full of all amounts due or to become due upon all Senior
            Indebtedness and, in the case of subclauses (i) and (ii) of clause
            (y) above, payment of all amounts due thereon, or provision shall be
            made for such payment in money or money's worth, before the Holders
            of any of the Units are entitled to receive any Contract Adjustment
            Payments on the Purchase Contracts underlying the Securities;

                  (ii)  any payment by, or distribution of assets of, the
            Company of any kind or character, whether in cash, property or
            securities, to which the Holders of any of the Securities would be
            entitled except for the provisions of Sections 5.2(e) through (q),
            including any such payment or distribution which may be payable or
            deliverable by reason of the payment

                                       41
<Page>

            of any other indebtedness of the Company being subordinated to the
            payment of such Contract Adjustment Payments on the Purchase
            Contracts underlying the Securities, shall be paid or delivered by
            the Person making such payment or distribution, whether a trustee in
            bankruptcy, a receiver or liquidating trustee or otherwise, directly
            to the holders of such Senior Indebtedness or their representative
            or representatives or to the trustee or trustees under any indenture
            under which any instruments evidencing any of such Senior
            Indebtedness may have been issued, ratably according to the
            aggregate amounts remaining unpaid on account of such Senior
            Indebtedness held or represented by each, to the extent necessary to
            make payment in full of all Senior Indebtedness remaining unpaid
            after giving effect to any concurrent payment or distribution (or
            provision therefor) to the holders of such Senior Indebtedness,
            before any payment or distribution is made of such Contract
            Adjustment Payments to the Holders of such Securities; and

                  (iii) in the event that, notwithstanding the foregoing, any
            payment by, or distribution of assets of, the Company of any kind or
            character, whether in cash, property or securities, including any
            such payment or distribution which may be payable or deliverable by
            reason of the payment of any other indebtedness of the Company being
            subordinated to the payment of Contract Adjustment Payments on the
            Purchase Contracts underlying the Securities, shall be received by
            the Agent or the Holders of any of the Securities when such payment
            or distribution is prohibited pursuant to Sections 5.2(e) through
            (q), such payment or distribution shall be paid over to the holders
            of such Senior Indebtedness or their representative or
            representatives or to the trustee or trustees under any indenture
            pursuant to which any instruments evidencing any such Senior
            Indebtedness may have been issued, ratably as aforesaid, for
            application to the payment of all Senior Indebtedness remaining
            unpaid until all such Senior Indebtedness shall have been paid in
            full, after giving effect to any concurrent payment or distribution
            (or provision therefor) to the holders of such Senior Indebtedness.

            (g)   For purposes of Sections 5.2(e) through (q), the words "cash,
      property or securities" shall not be deemed to include shares of stock of
      the Company as reorganized or readjusted, or securities of the Company or
      any other Person provided for by a plan of reorganization or readjustment,
      the payment of which is subordinated at least to the extent provided in
      Sections 5.2(e) through (q) with respect to such Contract Adjustment
      Payments on the Securities to the payment of all Senior Indebtedness which
      may at the time be outstanding; PROVIDED that (i) the indebtedness or
      guarantee of indebtedness, as the case may be, that constitutes Senior
      Indebtedness is assumed by the Person, if any, resulting from any such
      reorganization or readjustment, and (ii) the rights of the holders of

                                       42
<Page>

      the Senior Indebtedness are not, without the consent of each such holder
      adversely affected thereby, altered by such reorganization or
      readjustment.

            (h)   Any failure by the Company to make any payment on or perform
      any other obligation under Senior Indebtedness, other than any
      indebtedness incurred by the Company or assumed or guaranteed, directly or
      indirectly, by the Company for money borrowed (or any deferral, renewal,
      extension or refunding thereof) or any indebtedness or obligation as to
      which the provisions of Sections 5.2(e) through (g) shall have been waived
      by the Company in the instrument or instruments by which the Company
      incurred, assumed, guaranteed or otherwise created such indebtedness or
      obligation, shall not be deemed a default or event of default if (i) the
      Company shall be disputing its obligation to make such payment or perform
      such obligation and (ii) either (A) no final judgment relating to such
      dispute shall have been issued against the Company which is in full force
      and effect and is not subject to further review, including a judgment that
      has become final by reason of the expiration of the time within which a
      party may seek further appeal or review, and (B) in the event a judgment
      that is subject to further review or appeal has been issued, the Company
      shall in good faith be prosecuting an appeal or other proceeding for
      review and a stay of execution shall have been obtained pending such
      appeal or review.

            (i)   Subject to the payment in full of all Senior Indebtedness, the
      Holders of the Securities shall be subrogated (equally and ratably with
      the holders of all obligations of the Company which by their express terms
      are subordinated to Senior Indebtedness of the Company to the same extent
      as payment of the Contract Adjustment Payments in respect of the Purchase
      Contracts underlying the Securities is subordinated and which are entitled
      to like rights of subrogation) to the rights of the holders of Senior
      Indebtedness to receive payments or distributions of cash, property or
      securities of the Company applicable to the Senior Indebtedness until all
      such Contract Adjustment Payments owing on the Securities shall be paid in
      full, and as between the Company, its creditors other than holders of such
      Senior Indebtedness and the Holders, no such payment or distribution made
      to the holders of Senior Indebtedness by virtue of Sections 5.2(e) through
      (q) that otherwise would have been made to the Holders shall be deemed to
      be a payment by the Company on account of such Senior Indebtedness, it
      being understood that the provisions of Sections 5.2(e) through (q) are
      and are intended solely for the purpose of defining the relative rights of
      the Holders, on the one hand, and the holders of Senior Indebtedness, on
      the other hand.

            (j)   Nothing contained in Sections 5.2(e) through (q) or elsewhere
      in this Agreement or in the Securities is intended to or shall impair, as
      among the Company, its creditors other than the holders of Senior
      Indebtedness and the Holders, the obligation of the Company, which is
      absolute and unconditional, to pay to the Holders such Contract Adjustment
      Payments on the Securities as and

                                       43
<Page>

      when the same shall become due and payable in accordance with their terms,
      or is intended to or shall affect the relative rights of the Holders and
      creditors of the Company other than the holders of Senior Indebtedness,
      nor shall anything herein or therein prevent the Agent or any Holder from
      exercising all remedies otherwise permitted by applicable law upon default
      under this Agreement, subject to the rights, if any, under these Sections
      5.2(e) through (q), of the holders of Senior Indebtedness in respect of
      cash, property or securities of the Company received upon the exercise of
      any such remedy.

            (k)   Upon payment or distribution of assets of the Company referred
      to in these Sections 5.2(e) through (q), the Agent and the Holders shall
      be entitled to rely upon any order or decree made by any court of
      competent jurisdiction in which any such dissolution, winding up,
      liquidation or reorganization proceeding affecting the affairs of the
      Company is pending or upon a certificate of the trustee in bankruptcy,
      receiver, assignee for the benefit of creditors, liquidating trustee or
      agent or other Person making any payment or distribution, delivered to the
      Agent or to the Holders, for the purpose of ascertaining the Persons
      entitled to participate in such payment or distribution, the holders of
      the Senior Indebtedness and other indebtedness of the Company, the amount
      thereof or payable thereon, the amount or amounts paid or distributed
      thereon and all other facts pertinent thereto or to these Sections 5.2(e)
      through (q).

            (l)   The Agent shall be entitled to rely on the delivery to it of a
      written notice by a Person representing himself to be a holder of Senior
      Indebtedness (or a trustee or representative on behalf of such holder) to
      establish that such notice has been given by a holder of Senior
      Indebtedness or a trustee or representative on behalf of any such holder
      or holders. In the event that the Agent determines in good faith that
      further evidence is required with respect to the right of any Person as a
      holder of Senior Indebtedness to participate in any payment or
      distribution pursuant to Sections 5.2(e) through (q), the Agent may
      request such Person to furnish evidence to the reasonable satisfaction of
      the Agent as to the amount of Senior Indebtedness held by such Person, the
      extent to which such Person is entitled to participate in such payment or
      distribution and any other facts pertinent to the rights of such Person
      under Sections 5.2(e) through (q), and, if such evidence is not furnished,
      the Agent may defer payment to such Person pending judicial determination
      as to the right of such Person to receive such payment.

            (m)   Nothing contained in Sections 5.2(e) through (q) shall affect
      the obligations of the Company to make, or prevent the Company from
      making, payment of the Contract Adjustment Payments, except as otherwise
      provided in these Sections 5.2(e) through (q).

            (n)   Each Holder of Securities, by his acceptance thereof,
      authorizes and directs the Agent on his, her or its behalf to take such
      action as may be necessary or appropriate to effectuate the subordination
      provided in Sections

                                       44
<Page>

      5.2(e) through (q) and appoints the Agent his, her or its
      attorney-in-fact, as the case may be, for any and all such purposes.

            (o)   The Company shall give prompt written notice to the Agent of
      any fact known to the Company that would prohibit the making of any
      payment of moneys to or by the Agent in respect of the Securities pursuant
      to the provisions of this Section 5.2. Notwithstanding the provisions of
      Sections 5.2(e) through (q) or any other provisions of this Agreement, the
      Agent shall not be charged with knowledge of the existence of any facts
      that would prohibit the making of any payment of moneys to or by the
      Agent, or the taking of any other action by the Agent, unless and until
      the Agent shall have received written notice thereof mailed or delivered
      to a Responsible Officer of the Agent from the Company, any Holder, any
      paying agent or the holder or representative of any Senior Indebtedness;
      PROVIDED that if at least two Business Days prior to the date upon which
      by the terms hereof any such moneys may become payable for any purpose,
      the Agent shall not have received with respect to such moneys the notice
      provided for in this Section 5.2, then, anything herein contained to the
      contrary notwithstanding, the Agent shall have full power and authority to
      receive such moneys and to apply the same to the purpose for which they
      were received and shall not be affected by any notice to the contrary that
      may be received by it within two Business Days prior to or on or after
      such date.

            (p)   The Agent in its individual capacity shall be entitled to all
      the rights set forth in this Section 5.2 with respect to any Senior
      Indebtedness at the time held by it, to the same extent as any other
      holder of Senior Indebtedness and nothing in this Agreement shall deprive
      the Agent of any of its rights as such holder.

            (q)   No right of any present or future holder of any Senior
      Indebtedness to enforce the subordination herein shall at any time or in
      any way be prejudiced or impaired by any act or failure to act on the part
      of the Company or by any noncompliance by the Company with the terms,
      provisions and covenants of this Agreement, regardless of any knowledge
      thereof which any such holder may have or be otherwise charged with.

            (r)   Nothing in this Section 5.2 shall apply to claims of, or
      payments to, the Agent under or pursuant to Section 7.7 hereof.

With respect to the holders of Senior Indebtedness, (i) the duties and
obligations of the Agent shall be determined solely by the express provisions of
this Agreement; (ii) the Agent shall not be liable except for the performance of
such duties and obligations as are specifically set forth in this Agreement;
(iii) no implied covenants or obligations shall be read into this Agreement
against the Agent; and (iv) the Agent shall not be deemed to be a fiduciary as
to such holders.

                                       45
<Page>

            SECTION 5.3 DEFERRAL OF CONTRACT ADJUSTMENT PAYMENTS.

            (a)   The Company shall have the right, at any time prior to the
      Share Purchase Date, to defer the payment of any or all of the Contract
      Adjustment Payments otherwise payable on any Payment Date, but only if the
      Company shall give the Holders and the Agent written notice of its
      election to defer each such deferred Contract Adjustment Payment
      (specifying the amount to be deferred) at least ten Business Days prior to
      the earlier of (i) the next succeeding Payment Date or (ii) the date the
      Company is required to give notice of the Record Date or Payment Date with
      respect to payment of such Contract Adjustment Payments to the NYSE or
      other applicable self-regulatory organization or to Holders of the Units,
      but in any event not less than one Business Day prior to such Record Date.
      Any Contract Adjustment Payments so deferred shall, to the extent
      permitted by law, accrue additional Contract Adjustment Payments thereon
      at the rate of -% per year (computed on the basis of a 360-day year of
      twelve 30-day months), compounding on each succeeding Payment Date, until
      paid in full (such deferred installments of Contract Adjustment Payments,
      if any, together with the additional Contract Adjustment Payments, if any,
      accrued thereon, being referred to herein as the "Deferred Contract
      Adjustment Payments"). Deferred Contract Adjustment Payments, if any,
      shall be due on the next succeeding Payment Date except to the extent that
      payment is deferred pursuant to this Section 5.3. No Contract Adjustment
      Payments may be deferred to a date that is after the Settlement Date and
      no such deferral period may end other than on a Payment Date. If the
      Purchase Contracts are terminated upon the occurrence of a Termination
      Event, the Holder's right to receive Contract Adjustment Payments, if any,
      and Deferred Contract Adjustment Payments, will terminate.

            (b)   In the event that the Company elects to defer the payment of
      Contract Adjustment Payments on the Purchase Contracts until a Payment
      Date prior to the Share Purchase Date, then all Deferred Contract
      Adjustment Payments, if any, shall be payable to the registered Holders as
      of the close of business on the Record Date immediately preceding such
      Payment Date.

            (c)   In the event that the Company elects to defer the payment of
      Contract Adjustment Payments on the Purchase Contracts until the Share
      Purchase Date, each Holder will receive on the Share Purchase Date in lieu
      of a cash payment a number of Common Shares (in addition to a number of
      Common Shares equal to the Settlement Rate) equal to (A) the aggregate
      amount of Deferred Contract Adjustment Payments payable to such Holder
      (net of any required tax withholding on such Deferred Contract Adjustment
      Payment, which shall be remitted to the appropriate taxing jurisdiction)
      divided by (B) the Applicable Market Value.

            (d)   No fractional Common Shares will be issued by the Company with
      respect to the payment of Deferred Contract Adjustment Payments on the
      Share

                                       46
<Page>

      Purchase Date. In lieu of fractional shares otherwise issuable with
      respect to such payment of Deferred Contract Adjustment Payments, the
      Holder will be entitled to receive an amount in cash as provided in
      Section 5.12.

            (e)   In the event the Company exercises its option to defer the
      payment of Contract Adjustment Payments then, until the Deferred Contract
      Adjustment Payments have been paid, the Company shall not declare or pay
      dividends on, make distributions with respect to, or redeem, purchase or
      acquire, or make a liquidation payment with respect to, any of the
      Company's Capital Stock other than:

                  (i)   purchases, redemptions or acquisitions of shares of
            Capital Stock of the Company in connection with any employment
            contract, benefit plan or other similar arrangement with or for the
            benefit of employees, officers, directors or agents or a share
            purchase or dividend reinvestment plan, or the satisfaction by the
            Company of its obligations pursuant to any contract or security
            outstanding on the date the Company exercises its right to defer the
            payment of Contract Adjustment Payments;

                  (ii)  as a result of a reclassification of the Company's
            Capital Stock or the exchange or conversion of one class or series
            of the Company's Capital Stock for another class or series of the
            Company's Capital Stock;

                  (iii) the purchase of fractional interests of the Company's
            Capital Stock pursuant to the conversion or exchange provisions of
            such Capital Stock or the security being converted or exchanged;

                  (iv)  dividends or distributions in the Company's Capital
            Stock (or rights to acquire the Company's Capital Stock) or
            repurchases, acquisitions or redemptions of the Company's Capital
            Stock in exchange for or out of the net cash proceeds of the sale of
            the Company's Capital Stock (or securities convertible into or
            exchangeable for shares of the Company's Capital Stock); or

                  (v)   redemptions, exchanges or repurchases of any rights
            outstanding under a shareholder rights plan or the declaration or
            payment thereunder of a dividend or distribution of or with respect
            to rights in the future.

            SECTION 5.4 PAYMENT OF PURCHASE PRICE; REMARKETING.

            (a)   Unless a Tax Event Redemption, successful remarketing of the
      Notes pursuant to the provisions of this Section 5.4 or Termination Event
      has occurred, or a Holder of a Unit has settled the underlying Purchase
      Contract through an Early Settlement pursuant to Section 5.9 or a Merger
      Early Settlement

                                       47
<Page>

      pursuant to Section 5.10, each Holder of a Normal Unit may pay in cash
      ("Cash Settlement") the Purchase Price for the Common Shares to be
      purchased pursuant to a Purchase Contract if such Holder notifies the
      Agent by use of a notice in substantially the form of Exhibit E hereto of
      its intention to make a Cash Settlement. Such notice shall be made on or
      prior to 5:00 p.m., New York City time, on the seventh Business Day
      immediately preceding the Share Purchase Date. The Agent shall promptly
      notify the Collateral Agent of the receipt of such a notice from a Holder
      intending to make a Cash Settlement.

                  (i)   A Holder of a Normal Unit who has so notified the Agent
            of its intention to make a Cash Settlement is required to pay the
            Purchase Price to the Collateral Agent prior to 11:00 a.m., New York
            City time, on the Business Day immediately preceding the Share
            Purchase Date in lawful money of the United States by certified or
            cashiers' check or wire transfer, in each case in immediately
            available funds payable to or upon the order of the Company. Any
            cash received by the Collateral Agent will be paid to the Company on
            the Share Purchase Date in settlement of the Purchase Contract in
            accordance with the terms of this Agreement and the Pledge
            Agreement.

                  (ii)  If a Holder of a Normal Unit fails to notify the Agent
            of its intention to make a Cash Settlement in accordance with
            paragraph (a)(i) above, such failure shall constitute an event of
            default and the Holder shall be deemed to have consented to the
            disposition of the Pledged Notes pursuant to the remarketing as
            described in paragraph (b) below. If a Holder of a Normal Unit does
            notify the Agent as provided in paragraph (a)(i) above of its
            intention to pay the Purchase Price in cash, but fails to make such
            payment as required by paragraph (a)(i) above, such failure shall
            also constitute an event of default; however, the Notes of such a
            Holder will not be remarketed but instead the Collateral Agent, for
            the benefit of the Company, will exercise its rights as a secured
            party with respect to such Notes, including but not limited to those
            rights specified in subsection (b)(iii) below.

            (b)   (i) Unless a Tax Event Redemption has occurred, the Company
      and Platinum Underwriters Finance shall engage a nationally recognized
      investment bank (the "Remarketing Agent") pursuant to a Remarketing
      Agreement to be mutually agreed on by the Company, Platinum Underwriters
      Finance, the Agent and the Remarketing Agent, but providing for
      remarketing procedures substantially as set forth below to sell the Notes
      of Holders of Normal Units, other than Holders that have elected not to
      participate in the remarketing pursuant to the procedures set forth in
      clause (iv) below, and holders of Separate Notes that have elected to
      participate in the remarketing pursuant to the procedures set forth in
      Section 4.5(d) of the Pledge Agreement. On the seventh Business Day prior
      to first day of each Remarketing Period, the Agent shall give

                                       48
<Page>

      Holders of Normal Units and holders of Separate Notes notice of the
      remarketing in a daily newspaper in the English language of general
      circulation in The City of New York (which is expected to be THE WALL
      STREET JOURNAL) including the specific U.S. Treasury security or
      securities (including the CUSIP number and/or the principal terms of such
      Treasury security or securities) described in clause (iv) below, that must
      be delivered by Holders of Normal Units that elect not to participate in
      the remarketing pursuant to clause (iv) below no later than 10:00 a.m.,
      New York City time, on the fourth Business Day preceding the first day of
      such Remarketing Period. The Company or the Agent, at the Company's
      request, shall request not later than seven nor more than 15 calendar days
      prior to any Remarketing Period, that the Clearing Agency notify the
      Clearing Agency participants of such Remarketing Period. The Agent shall
      notify, by 10:00 a.m., New York City time, on the third Business Day
      preceding the first day of such Remarketing Period, the Remarketing Agent
      and the Collateral Agent of the aggregate number of Notes of Normal Unit
      Holders to be remarketed. On the third Business Day preceding the first
      day of such Remarketing Period, no later than by 10:00 a.m., New York City
      time, pursuant to the terms of the Pledge Agreement, the Custodial Agent
      will notify the Remarketing Agent of the aggregate number of Separate
      Notes to be remarketed. No later than 10:00 a.m., New York City time, on
      the Business Day immediately preceding the first day of such Remarketing
      Period, the Collateral Agent and the Custodial Agent, pursuant to the
      terms of the Pledge Agreement, will deliver for remarketing to the
      Remarketing Agent all Notes to be remarketed. Upon receipt of such notice
      from the Agent and the Custodial Agent and such Notes from the Collateral
      Agent and the Custodial Agent, the Remarketing Agent will, on the
      Remarketing Date, use its commercially reasonable best efforts to sell
      such Notes on such date at an aggregate price equal to at least 100.25% of
      the Remarketing Value. The Remarketing Agent will use the proceeds from a
      successful remarketing to purchase the appropriate U.S. Treasury
      securities (the "Agent-purchased Treasury Consideration") with the CUSIP
      numbers, if any, selected by the Remarketing Agent, described in clauses
      (i)(1) and (ii)(1) of the definition of Remarketing Value related to the
      Notes of Holders of Normal Units that were remarketed. On or prior to the
      third Business Day following the Remarketing Date or any Subsequent
      Remarketing Date on which the Notes are successfully remarketed, the
      Remarketing Agent shall deliver such Agent-purchased Treasury
      Consideration to the Agent, which shall thereupon deliver such
      Agent-purchased Treasury Consideration to the Collateral Agent. The
      Collateral Agent, for the benefit of the Company, will thereupon apply
      such Agent-purchased Treasury Consideration, in accordance with the Pledge
      Agreement, to secure such Holders' obligations under the Purchase
      Contracts. In the event of a successful remarketing pursuant to this
      Section 5.4, the Remarketing Agent will deduct as a remarketing fee an
      amount not exceeding 25 basis points (.25%) of the total proceeds from the
      remarketing (the "Remarketing Fee"). The Remarketing Agent will remit (1)
      the portion of the proceeds from the remarketing attributable to the
      Separate Notes to the holders of Separate Notes that were remarketed and
      (2) the

                                       49
<Page>

      remaining portion of the proceeds, less those proceeds used to purchase
      the Agent-purchased Treasury Consideration, to the Agent for the benefit
      of the Holders of the Normal Units that were remarketed, all determined on
      a pro rata basis, in each case, on or prior to the third Business Day
      following the Remarketing Date or any Subsequent Remarketing Date on which
      the Notes were successfully remarketed. Holders whose Notes are so
      remarketed will not otherwise be responsible for the payment of any
      Remarketing Fee in connection therewith.

                  (ii)  If, in spite of using its commercially reasonable best
            efforts, the Remarketing Agent cannot remarket the Notes included in
            the remarketing at a price equal to at least 100.25% of the
            Remarketing Value on the Remarketing Date, the Remarketing Agent
            will attempt to establish a Remarketing Rate meeting these
            requirements on each of the two immediately following Business Days.
            If the Remarketing Agent cannot establish a Remarketing Rate meeting
            these requirements on either of those days, the remarketing in such
            period will be deemed to have failed (a "Failed Remarketing"). In
            the event of a Failed Remarketing with respect to the first
            Remarketing Period, the Remarketing Agent will undertake the
            procedures set forth in clause (i) above in each of the three
            Business Days in the second Remarketing Period. In the event of a
            Failed Remarketing in the second Remarketing Period, the Remarketing
            Agent will further attempt to establish such a Remarketing Rate on
            the third Business Day immediately preceding the Share Purchase
            Date. If, in spite of using its commercially reasonable best
            efforts, the Remarketing Agent fails to remarket the Notes
            underlying the Normal Units at a price equal to at least 100.25% of
            the Remarketing Value in accordance with the terms of the Pledge
            Agreement by 4:00 p.m., New York City time, on the third Business
            Day immediately preceding the Share Purchase Date, the "Last Failed
            Remarketing" will be deemed to have occurred. Each remarketing
            attempt that takes place in accordance with this Section 5.4 after
            the Remarketing Date is referred to herein as a "Subsequent
            Remarketing." Within three Business Days following the date of a
            Failed Remarketing or the Last Failed Remarketing, as the case may
            be, the Remarketing Agent shall return any Notes delivered to it to
            the Collateral Agent and the Custodial Agent, as applicable. The
            Collateral Agent, for the benefit of the Company, may exercise its
            rights as a secured party with respect to such Notes, including
            those actions specified in (b) (iii) below; provided that if upon
            the Last Failed Remarketing, the Collateral Agent exercises such
            rights for the benefit of the Company with respect to such Notes,
            any accumulated and unpaid interest on such Notes will become
            payable by Platinum Underwriters Finance to the Agent for payment to
            the Holders of the Normal Units to which such Notes relate. Such
            payment will be made by Platinum Underwriters Finance on or prior to
            11:00 a.m., New York City time, on the Share Purchase Date in lawful
            money of the United

                                       50
<Page>

            States by certified or cashier's check or wire transfer in
            immediately available funds payable to or upon the order of the
            Agent. The Company will cause a notice of any Failed Remarketing and
            of the Last Failed Remarketing to be published on the fourth
            Business Day following each Failed Remarketing and the Last Failed
            Remarketing, as the case may be, in a daily newspaper in the English
            language of general circulation in The City of New York, which shall
            be THE WALL STREET JOURNAL, if such newspaper is then so published.
            The company will also release this information by means of Bloomberg
            and Reuters newswire.

                  (iii) With respect to any Notes which constitute part of
            Normal Units which are subject to the Last Failed Remarketing, the
            Collateral Agent for the benefit of the Company reserves all of its
            rights as a secured party with respect thereto and, subject to
            applicable law and Section 5.4 (e) below, may, among other things,
            (A) retain such Notes in full satisfaction of the Holders'
            obligations under the Purchase Contracts or (B) sell such Notes in
            one or more public or private sales or otherwise.

                  (iv)  A Holder of Normal Units may elect not to participate in
            the remarketing and retain the Notes underlying such Units by
            notifying the Agent of such election and delivering the specific
            U.S. Treasury security or securities (including the CUSIP number
            and/or the principal terms of such security or securities)
            identified by the Agent (as having been based solely on the
            identification that the Remarketing Agent shall have advised the
            Agent) that constitute the U.S. Treasury securities described in
            clauses (i) and (ii) of the definition of Remarketing Value relating
            to the retained Notes (as if only such Notes were being remarketed)
            (the "Opt-out Treasury Consideration") to the Agent not later than
            10:00 a.m., New York City time, on the fourth Business Day prior to
            the beginning of any Remarketing Period. Upon receipt thereof by the
            Agent, the Agent shall deliver such Opt-out Treasury Consideration
            to the Collateral Agent, which will, for the benefit of the Company,
            thereupon apply such Opt-out Treasury Consideration to secure such
            Holder's obligations under the Purchase Contracts. On the Business
            Day immediately preceding the first day of a Remarketing Period, the
            Collateral Agent, pursuant to the terms of the Pledge Agreement,
            will deliver the Pledged Notes of such Holder to the Agent. Within
            three Business Days following the last day of such Remarketing
            Period, (A) if the remarketing was successful, the Agent shall
            distribute such Notes to the Holders thereof, and (B) if there was a
            Failed Remarketing on such date, the Agent will deliver such Notes
            to the Collateral Agent, which will, for the benefit of the Company,
            thereupon apply such Notes to secure such Holders' obligations under
            the Purchase Contract and return the Opt-out Treasury Consideration
            delivered by such Holders to such Holders. A Holder that does not so
            deliver the Opt-out Treasury Consideration or does

                                       51
<Page>

            not so notify the agent of its election not to participate in the
            remarketing pursuant to this clause (iv) shall be deemed to have
            elected to participate in the remarketing.

            (c)   Upon the maturity of the Pledged Treasury Securities
      underlying the Stripped Units and, in the event of a successful
      remarketing or a Tax Event Redemption, the Pledged Treasury Consideration
      underlying the Normal Units, on the Share Purchase Date, the Collateral
      Agent shall remit to the Company an amount equal to the aggregate Purchase
      Price applicable to such Units, as payment for the Common Shares issuable
      upon settlement thereof without needing to receive any instructions from
      the Holders of such Units. In the event the payments in respect of the
      Pledged Treasury Securities or the Pledged Treasury Consideration
      underlying a Unit is in excess of the Purchase Price of the Purchase
      Contract being settled thereby, the Collateral Agent will distribute such
      excess to the Agent for the benefit of the Holder of such Unit when
      received.

            (d)   Any distribution to Holders of excess funds and interest
      described in Section 5.4 (b) and (c) above shall be payable at the
      Corporate Trust Office or, at the option of the Holder or the holder of
      Separate Notes, as applicable, by check mailed to the address of the
      Person entitled thereto at such address as it appears on the Register or
      by wire transfer to an account maintained in the United States specified
      by the Holder or the holder of Separate Notes, as applicable.

            (e)   The obligations of each Holder to pay the Purchase Price are
      non-recourse obligations and are payable solely out of the proceeds of any
      Collateral pledged to secure the obligations of the Holders (except to the
      extent paid by Cash Settlement, Early Settlement or Merger Early
      Settlement) and in no event will Holders be liable for any deficiency
      between such payments and the Purchase Price.

            (f)   Notwithstanding anything to the contrary herein, the Company
      shall not be obligated to issue any Common Shares in respect of a Purchase
      Contract or deliver any certificates therefor to the Holder of the related
      Unit unless the Company shall have received payment in full of the
      aggregate Purchase Price for the Common Shares to be purchased thereunder
      by such Holder in the manner herein set forth.

            SECTION 5.5 ISSUANCE OF COMMON SHARES.

            Unless a Termination Event shall have occurred on or prior to the
Share Purchase Date or an Early Settlement or a Merger Early Settlement shall
have occurred, on the Share Purchase Date, upon the Company's receipt of payment
in full of the Purchase Price for the Common Shares purchased by the Holders
pursuant to the foregoing provisions of this Article and subject to Section
5.6(b), the Company shall issue and deposit with the Agent, for the benefit of
the Holders of the Outstanding Units, one or more certificates representing the
newly issued Common Shares, registered in the

                                       52
<Page>

name of the Agent (or its nominee) as custodian for the Holders (such
certificates for Common Shares, together with any dividends or distributions for
which both a record date and payment date for such dividend or distribution has
occurred after the Share Purchase Date, being hereinafter referred to as the
"Purchase Contract Settlement Fund"), to which the Holders are entitled
hereunder. Subject to the foregoing, upon surrender of a Certificate to the
Agent on or after the Share Purchase Date, together with settlement instructions
thereon duly completed and executed, the Holder of such Certificate shall be
entitled to receive in exchange therefor a certificate representing that number
of whole Common Shares which such Holder is entitled to receive pursuant to the
provisions of this Article V (after taking into account all Units then held by
such Holder) together with cash in lieu of fractional shares as provided in
Section 5.12 and any dividends or distributions with respect to such shares
constituting part of the Purchase Contract Settlement Fund, but without any
interest thereon, and the Certificate so surrendered shall forthwith be
cancelled. Such shares shall be registered in the name of the Holder or the
Holder's designee as specified in the settlement instructions provided by the
Holder to the Agent. If any Common Shares issued in respect of a Purchase
Contract are to be registered to a Person other than the Person in whose name
the Certificate evidencing such Purchase Contract is registered, no such
registration shall be made unless the Person requesting such registration has
paid any transfer and other taxes required by reason of such registration in a
name other than that of the registered Holder of such Certificate or has
established to the satisfaction of the Company that such tax either has been
paid or is not payable.

            SECTION 5.6 ADJUSTMENT OF SETTLEMENT RATE.

            (a)   Adjustments for Dividends, Distributions, Stock Splits, Etc.

                  (1)   STOCK DIVIDENDS. In case the Company shall pay or make a
            dividend or other distribution on the Common Shares in Common
            Shares, the Settlement Rate, as in effect at the opening of business
            on the day following the date fixed for the determination of
            shareholders entitled to receive such dividend or other distribution
            shall be increased by dividing such Settlement Rate by a fraction of
            which the numerator shall be the number of Common Shares outstanding
            at the close of business on the date fixed for such determination
            and the denominator shall be the sum of such number of Common Shares
            and the total number of Common Shares constituting such dividend or
            other distribution, such increase to become effective immediately
            after the opening of business on the day following the date fixed
            for such determination. For the purposes of this paragraph (1), the
            number of Common Shares at the time outstanding shall not include
            shares held in the treasury of the Company but shall include any
            shares issuable in respect of any scrip certificates issued in lieu
            of fractions of Common Shares. The Company will not pay any dividend
            or make any distribution on Common Shares held in the treasury of
            the Company.

                                       53
<Page>

                  (2)   SHARE PURCHASE RIGHTS. In case the Company shall issue
            rights, options or warrants to all holders of its Common Shares
            (that are not available on an equivalent basis to Holders of the
            Units upon settlement of the Purchase Contracts underlying such
            Units) entitling them, for a period expiring within 45 days after
            the record date for the determination of shareholders entitled to
            receive such rights, options or warrants, to subscribe for or
            purchase Common Shares at a price per share less than the Current
            Market Price per Common Share on the date fixed for the
            determination of shareholders entitled to receive such rights,
            options or warrants (other than pursuant to a dividend reinvestment,
            share purchase or similar plan), the Settlement Rate in effect at
            the opening of business on the day following the date fixed for such
            determination shall be increased by dividing such Settlement Rate by
            a fraction, the numerator of which shall be the number of Common
            Shares outstanding at the close of business on the date fixed for
            such determination plus the number of Common Shares which the
            aggregate of the offering price of the total number of Common Shares
            so offered for subscription or purchase would purchase at such
            Current Market Price per Common Share and the denominator of which
            shall be the number of Common Shares outstanding at the close of
            business on the date fixed for such determination plus the number of
            Common Shares so offered for subscription or purchase, such increase
            to become effective immediately after the opening of business on the
            day following the date fixed for such determination. For the
            purposes of this paragraph (2), the number of Common Shares at any
            time outstanding shall not include shares held in the treasury of
            the Company but shall include any shares issuable in respect of any
            scrip certificates issued in lieu of fractions of Common Shares. The
            Company shall not issue any such rights, options or warrants in
            respect of Common Shares held in the treasury of the Company.

                  (3)   STOCK SPLITS; REVERSE SPLITS. In case outstanding Common
            Shares shall be subdivided or split into a greater number of Common
            Shares, the Settlement Rate in effect at the opening of business on
            the day following the day upon which such subdivision or split
            becomes effective shall be proportionately increased, and,
            conversely, in case outstanding Common Shares shall each be combined
            into a smaller number of Common Shares, the Settlement Rate in
            effect at the opening of business on the day following the day upon
            which such combination becomes effective shall be proportionately
            reduced, such increase or reduction, as the case may be, to become
            effective immediately after the opening of business on the day
            following the day upon which such subdivision, split or combination
            becomes effective.

                  (4)   DEBT OR ASSET DISTRIBUTIONS. (i) In case the Company
            shall, by dividend or otherwise, distribute to all holders of its
            Common Shares

                                       54
<Page>

            evidences of its indebtedness or assets (including securities, but
            excluding any rights or warrants referred to in paragraph (2) of
            this Section, shares of capital stock of any class or series, or
            similar equity interests, of or relating to a subsidiary or other
            business unit in the case of a Spin-Off referred to in the next
            paragraph, or any dividend or distribution paid exclusively in cash
            and any dividend or distribution referred to in paragraph (1) of
            this Section), the Settlement Rate shall be adjusted so that the
            same shall equal the rate determined by dividing the Settlement Rate
            in effect immediately prior to the close of business on the date
            fixed for the determination of shareholders entitled to receive such
            distribution by a fraction, the numerator of which shall be the
            Current Market Price per Common Share on the date fixed for such
            determination less the then fair market value (as determined by the
            Board of Directors, whose determination shall be conclusive and
            described in a Board Resolution filed with the Agent) of the portion
            of the assets or evidences of indebtedness so distributed applicable
            to one Common Share and the denominator of which shall be such
            Current Market Price per Common Share, such adjustment to become
            effective immediately prior to the opening of business on the day
            following the date fixed for the determination of shareholders
            entitled to receive such distribution. In any case in which this
            paragraph (4) is applicable, paragraph (2) of this Section shall not
            be applicable.

                  (ii) In the case of a Spin-Off, the Settlement Rate in effect
            immediately before the close of business on the record date fixed
            for determination of stockholders entitled to receive that
            distribution will be increased by multiplying the Settlement Rate by
            a fraction, the numerator of which is the Current Market Price per
            Common Share plus the Fair Market Value of the portion of those
            shares of Capital Stock or similar equity interests so distributed
            applicable to one Common Share and the denominator of which is the
            Current Market Price per Common Share. Any adjustment to the
            settlement rate under this paragraph 4(ii) will occur on the date
            that is the earlier of (1) the tenth Trading Day following the
            effective date of the Spin-Off and (2) the date of the securities
            being offered in the Initial Public Offering of the Spin-Off, if
            that Initial Public Offering is effected simultaneously with the
            Spin-Off.

                  (5)   CASH DISTRIBUTIONS. In case the Company shall, (i) by
            dividend or otherwise, distribute to all holders of its Common
            Shares cash (excluding any cash that is distributed in a
            Reorganization Event to which Section 5.6(b) applies or as part of a
            distribution referred to in paragraph (4) of this Section) in an
            aggregate amount that, combined together with (ii) the aggregate
            amount of any other distributions to all holders of its Common
            Shares made exclusively in cash (other than regular quarterly,
            semi-annual or annual cash dividends) within the 12 months preceding
            the

                                       55
<Page>

            date of payment of such distribution and in respect of which no
            adjustment pursuant to this paragraph (5) or paragraph (6) of this
            Section has been made and (iii) the aggregate of any cash plus the
            fair market value as of the date or expiration of the tender or
            exchange offer referred to below (as determined by the Board of
            Directors, whose determination shall be conclusive and described in
            a Board Resolution filed with the Agent) of consideration payable in
            respect of any tender or exchange offer (other than consideration
            payable in respect of any odd-lot tender offer) by the Company or
            any of its subsidiaries for all or any portion of the Common Shares
            concluded within the 12 months preceding the date of payment of the
            distribution described in clause (i) above and in respect of which
            no adjustment pursuant to this paragraph (5) or paragraph (6) of
            this Section has been made, exceeds 10% of the product of the
            Current Market Price per Common Share on the date for the
            determination of holders of Common Shares entitled to receive such
            distribution times the number of Common Shares outstanding on such
            date, then, and in each such case, immediately after the close of
            business on such date for determination, the Settlement Rate shall
            be increased so that the same shall equal the rate determined by
            dividing the Settlement Rate in effect immediately prior to the
            close of business on the date fixed for determination of the
            shareholders entitled to receive such distribution by a fraction (A)
            the numerator of which shall be equal to the Current Market Price
            per Common Share on the date fixed for such determination less an
            amount equal to the quotient of (x) the combined amount distributed
            or payable in the transactions described in clauses (i), (ii) and
            (iii) above and (y) the number of Common Shares outstanding on such
            date for determination and (B) the denominator of which shall be
            equal to the Current Market Price per Common Share on such date for
            determination.

                  (6)   TENDER OFFERS. In case (i) a tender or exchange offer
            made by the Company or any subsidiary of the Company for all or any
            portion of the Common Shares shall expire and such tender or
            exchange offer (as amended upon the expiration thereof) shall
            require the payment to shareholders (based on the acceptance (up to
            any maximum specified in the terms of the tender or exchange offer)
            of Purchased Shares) of an aggregate consideration having a fair
            market value (as determined by the Board of Directors, whose
            determination shall be conclusive and described in a Board
            Resolution filed with the Agent) that when combined together with
            (ii) the aggregate of the cash plus the fair market value (as
            determined by the Board of Directors, whose determination shall be
            conclusive and described in a Board Resolution filed with the
            Agent), as of the expiration of such tender or exchange offer (other
            than consideration payable in respect of any odd-lot tender offer),
            of consideration payable in respect of any other tender or exchange
            offer, by the Company or any subsidiary of the Company for all or
            any portion of

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            the Common Shares expiring within the 12 months preceding the
            expiration of such tender or exchange offer and in respect of which
            no adjustment pursuant to paragraph (5) of this Section or this
            paragraph (6) has been made and (iii) the aggregate amount of any
            distributions to all holders of the Company's Common Shares made
            exclusively in cash (other than regular quarterly, semi-annual or
            annual cash dividends) within the 12 months preceding the expiration
            of such tender or exchange offer and in respect of which no
            adjustment pursuant to paragraph (5) of this Section or this
            paragraph (6) has been made, exceeds 10% of the product of the
            Current Market Price per Common Share as of the last time (the
            "Expiration Time") tenders could have been made pursuant to such
            tender or exchange offer (as it may be amended) times the number of
            Common Shares outstanding (including any tendered shares) on the
            Expiration Time, then, and in each such case, immediately prior to
            the opening of business on the day after the date of the Expiration
            Time, the Settlement Rate shall be adjusted so that the same shall
            equal the rate determined by dividing the Settlement Rate
            immediately prior to the close of business on the date of the
            Expiration Time by a fraction (A) the numerator of which shall be
            equal to (x) the product of (I) the Current Market Price per Common
            Share on the date of the Expiration Time and (II) the number of
            Common Shares outstanding (including any tendered shares) on the
            Expiration Time less (y) the amount of cash plus the fair market
            value (determined as aforesaid) of the aggregate consideration
            payable to shareholders based on the transactions described in
            clauses (i), (ii) and (iii) above (assuming in the case of clause
            (i) the acceptance, up to any maximum specified in the terms of the
            tender or exchange offer, of Purchased Shares), and (B) the
            denominator of which shall be equal to the product of (x) the
            Current Market Price per Common Share as of the Expiration Time and
            (y) the number of Common Shares outstanding (including any tendered
            shares) as of the Expiration Time less the number of all shares
            validly tendered and not withdrawn as of the Expiration Time (the
            shares deemed so accepted, up to any such maximum, being referred to
            as the "Purchased Shares").

                  (7)   RECLASSIFICATION. The reclassification of Common Shares
            into securities including securities other than Common Shares (other
            than any reclassification upon a Reorganization Event to which
            Section 5.6(b) applies) shall be deemed to involve (i) a
            distribution of such securities other than Common Shares to all
            holders of Common Shares (and the effective date of such
            reclassification shall be deemed to be "the date fixed for the
            determination of shareholders entitled to receive such distribution"
            and the "date fixed for such determination" within the meaning of
            paragraph (4) of this Section), and (ii) a subdivision, split or
            combination, as the case may be, of the number of Common Shares
            outstanding immediately prior to such reclassification into the
            number of Common

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            Shares outstanding immediately thereafter (and the effective date
            of such reclassification shall be deemed to be "the day upon which
            such subdivision or split becomes effective" or "the day upon which
            such combination becomes effective," as the case may be, and "the
            day upon which such subdivision, split or combination becomes
            effective" within the meaning of paragraph (3) of this Section).

                  (8)   "CURRENT MARKET PRICE". The "Current Market Price" per
            Common Share means (a) on any day the average of the Closing Price
            per Common Share on each of the 20 consecutive Trading Days ending
            on the earlier of the day in question and the day before the "ex
            date" with respect to the issuance or distribution requiring such
            computation, (b) in the case of any Spin-Off that is effected
            simultaneously with an Initial Public Offering of the securities
            being distributed in the Spin-Off, the Closing Price of the Common
            Shares on the Trading Day on which the initial price of the
            securities being distributed in the Spin-Off is determined, and (c)
            in the case of any other Spin-Off, the average of the Closing Prices
            per Common Share over the first 10 Trading Days after the effective
            date of such Spin-Off. For purposes of this paragraph, the term "ex
            date," when used with respect to any issuance or distribution, shall
            mean the first date on which the Common Shares trades regular way on
            such exchange or in such market without the right to receive such
            issuance or distribution.

                  (9)   CALCULATION OF ADJUSTMENTS. All adjustments to the
            Settlement Rate shall be calculated to the nearest 1/10,000th of a
            Common Share (or if there is not a nearest 1/10,000th of a share to
            the next lower 1/10,000th of a share). No adjustment in the
            Settlement Rate shall be required unless such adjustment would
            require an increase or decrease of at least one percent therein;
            provided, that any adjustments which by reason of this subparagraph
            are not required to be made shall be carried forward and taken into
            account in any subsequent adjustment. If an adjustment is made to
            the Settlement Rate pursuant to paragraph (1), (2), (3), (4), (5),
            (6), (7) or (10) of this Section 5.6(a), an adjustment shall also be
            made to the Applicable Market Value solely to determine which of
            clauses (i), (ii) or (iii) of the definition of Settlement Rate in
            Section 5.1(a) will apply on the Share Purchase Date. Such
            adjustment shall be made by multiplying the Applicable Market Value
            by a fraction, the numerator of which shall be the Settlement Rate
            immediately after such adjustment pursuant to paragraph (1), (2),
            (3), (4), (5), (6), (7) or (10) of this Section 5.6(a) and the
            denominator of which shall be the Settlement Rate immediately before
            such adjustment; provided, that if such adjustment to the Settlement
            Rate is required to be made pursuant to the occurrence of any of the
            events contemplated by paragraph (1), (2), (3), (4), (5), (7) or
            (10) of this Section 5.6(a) during the period taken into
            consideration for

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<Page>

            determining the Applicable Market Value, appropriate and customary
            adjustments shall be made to the Settlement Rate.

                  (10)  INCREASE OF SETTLEMENT RATE. The Company may make such
            increases in the Settlement Rate, in addition to those required by
            this Section, as it considers to be advisable in order to avoid or
            diminish any income tax to any holders of Common Shares resulting
            from any dividend or distribution of Capital Stock or issuance of
            rights or warrants to purchase or subscribe for stock or from any
            event treated as such for income tax purposes or for any other
            reasons.

            (b)   Adjustment for Consolidation, Merger or Other Reorganization
      Event.

            In the event of

                  (1)   any consolidation or merger of the Company with or into
            another Person (other than a merger or consolidation in which the
            Company is the continuing corporation and in which the Common Shares
            outstanding immediately prior to the merger or consolidation is not
            exchanged for cash, securities or other property of the Company or
            another corporation),

                  (2)   any sale, transfer, lease or conveyance to another
            Person of the property of the Company as an entirety or
            substantially as an entirety,

                  (3)   any statutory exchange of securities of the Company with
            another Person (other than in connection with a merger or
            acquisition), or

                  (4)   any liquidation, dissolution or winding up of the
            Company other than as a result of or after the occurrence of a
            Termination Event (any such event, a "Reorganization Event"),

each Common Share covered by each Purchase Contract forming part of a Unit
immediately prior to such Reorganization Event shall, after such Reorganization
Event, be converted for purposes of the Purchase Contract into the kind and
amount of securities, cash and other property receivable in such Reorganization
Event (without any interest thereon, and without any right to dividends or
distribution thereon which have a record date that is prior to the Share
Purchase Date per share of Common Stock) by a holder of Common Shares that (i)
is not a Person with which the Company consolidated or into which the Company
merged or which merged into the Company or to which such sale or transfer was
made, as the case may be (any such Person, a "Constituent Person"), or an
Affiliate of a Constituent Person to the extent such Reorganization Event
provides for different treatment of Common Shares held by Affiliates of the
Company and non-Affiliates, and (ii) failed to exercise his rights of election,
if any, as to the kind or amount of securities, cash and other property
receivable upon such Reorganization Event

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<Page>

(provided that if the kind or amount of securities, cash and other property
receivable upon such Reorganization Event is not the same for each Common Share
held immediately prior to such Reorganization Event by a Person other than a
Constituent Person or an Affiliate thereof and in respect of which such rights
of election shall not have been exercised ("Non-electing Share"), then for the
purpose of this Section the kind and amount of securities, cash and other
property receivable upon such Reorganization Event by each Non-electing Share
shall be deemed to be the kind and amount so receivable per Common Share by a
plurality of the Non-electing Shares). On the Share Purchase Date, the
Settlement Rate then in effect will be applied to the value on the Share
Purchase Date of such securities, cash or other property.

            In the event of such a Reorganization Event, the Person formed by
such consolidation, merger or exchange or the Person which acquires the assets
of the Company or, in the event of a liquidation or dissolution of the Company,
the Company or a liquidating trust created in connection therewith, shall
execute and deliver to the Agent an agreement supplemental hereto providing that
the Holder of each Outstanding Unit shall have the rights provided by this
Section 5.6. Such supplemental agreement shall provide for adjustments which,
for events subsequent to the effective date of such supplemental agreement,
shall be as nearly equivalent as may be practicable to the adjustments provided
for in this Section. The above provisions of this Section shall similarly apply
to successive Reorganization Events.

            SECTION 5.7 NOTICE OF ADJUSTMENTS AND CERTAIN OTHER EVENTS.

            (a)   Whenever the Settlement Rate is adjusted as herein provided,
      the Company shall:

                  (i)   forthwith compute the Settlement Rate in accordance with
            Section 5.6 and prepare and transmit to the Agent an Officers'
            Certificate setting forth the Settlement Rate, the method of
            calculation thereof in reasonable detail, and the facts requiring
            such adjustment and upon which such adjustment is based; and

                  (ii)  as soon as practicable following the occurrence of an
            event that requires an adjustment to the Settlement Rate pursuant to
            Section 5.6 (or if the Company is not aware of such occurrence, as
            soon as practicable after becoming so aware), provide a written
            notice to the Agent of the occurrence of such event and a statement
            setting forth in reasonable detail the method by which the
            adjustment to the Settlement Rate was determined and setting forth
            the adjusted Settlement Rate.

            (b)   The Agent shall not at any time be under any duty or
      responsibility to any Holder of Units to determine whether any facts exist
      which may require any adjustment of the Settlement Rate, or with respect
      to the nature or extent or calculation of any such adjustment when made,
      or with respect to the method employed in making the same. The Agent shall
      not be accountable with respect

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<Page>

      to the validity or value (or the kind or amount) of any Common Shares, or
      of any securities or property, which may at the time be issued or
      delivered with respect to any Purchase Contract, and the Agent makes no
      representation with respect thereto. The Agent shall not be responsible
      for any failure of the Company to issue, transfer or deliver any Common
      Shares pursuant to a Purchase Contract or to comply with any of the
      duties, responsibilities or covenants of the Company contained in this
      Article.

            SECTION 5.8 TERMINATION EVENT; NOTICE.

            The Purchase Contracts and all obligations and rights of the Company
and the Holders thereunder, including, without limitation, the rights of Holders
to receive accumulated Contract Adjustment Payments, if any, or any Deferred
Contract Adjustment Payments and obligations of Holders to purchase Common
Shares, shall immediately and automatically terminate, without the necessity of
any notice or action by any Holder, the Agent or the Company, if, on or prior to
the Share Purchase Date, a Termination Event shall have occurred. Upon and after
the occurrence of a Termination Event, the Normal Units shall thereafter
represent the right to receive the Notes or the appropriate Treasury
Consideration, as the case may be, forming a part of such Normal Units, and the
Stripped Units shall thereafter represent the right to receive the Treasury
Securities forming a part of such Stripped Units, in each case in accordance
with the provisions of Section 4.3 of the Pledge Agreement. Upon the occurrence
of a Termination Event, the Company shall promptly but in no event later than
two Business Days thereafter give written notice to the Agent, the Collateral
Agent and to the Holders, at their addresses as they appear in the Register.

            SECTION 5.9 EARLY SETTLEMENT.

            (a)   Subject to and upon compliance with the provisions of this
      Section 5.9, Purchase Contracts underlying Units having an aggregate
      Stated Amount equal to $1,000 or an integral multiple thereof may, at the
      option of the Holder thereof, be settled early ("Early Settlement") on or
      prior to 10:00 a.m., New York City time, on the seventh Business Day
      immediately preceding the Share Purchase Date. Holders of Stripped Units
      may only effect Early Settlement of the related Purchase Contracts in
      integral multiples of 40 Stripped Units, and if Treasury Consideration has
      been substituted for the Notes as a component in the Normal Units due to a
      successful remarketing or the occurrence of a Tax Event Redemption,
      Purchase Contracts underlying such Normal Units may only be settled early
      in integral multiples of Normal Units such that the Treasury Consideration
      to be deposited and the Treasury Consideration to be released are in
      integral multiples of $1,000. In order to exercise the right to effect
      Early Settlement with respect to any Purchase Contracts, the Holder of the
      Certificate evidencing the related Units shall deliver such Certificate to
      the Agent at the Corporate Trust Office duly endorsed for transfer to the
      Company or in blank with the form of Election to Settle Early on the
      reverse thereof duly completed

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<Page>

      and accompanied by payment payable to the Company in immediately available
      funds in an amount (the "Early Settlement Amount") equal to (A) the
      product of (i) the Stated Amount of such Units multiplied by (ii) the
      number of Purchase Contracts with respect to which the Holder has elected
      to effect Early Settlement, plus (B) if such delivery is made with respect
      to any Purchase Contracts during the period from the close of business on
      any Record Date next preceding any Payment Date to the opening of business
      on such Payment Date, an amount equal to the Contract Adjustment Payments,
      if any, payable on such Payment Date with respect to such Purchase
      Contracts; provided that no payment shall be required pursuant to clause
      (B) of this sentence if the Company shall have elected to defer the
      Contract Adjustment Payments which would otherwise be payable on such
      Payment Date. Except as provided in the immediately preceding sentence and
      subject to Section 5.2(d), no payment or adjustment shall be made upon
      Early Settlement of any Purchase Contract on any Contract Adjustment
      Payments accrued on such Purchase Contract or on account of any dividends
      on the Common Shares issued upon such Early Settlement. If the foregoing
      requirements are first satisfied with respect to Purchase Contracts
      underlying any Unit at or prior to 5:00 p.m., New York City time, on a
      Business Day, such day shall be the "Early Settlement Date" with respect
      to such Unit and if such requirements are first satisfied after 5:00 p.m.,
      New York City time, on a Business Day or on a day that is not a Business
      Day, the "Early Settlement Date" with respect to such Units shall be the
      next succeeding Business Day.

            (b)   Upon Early Settlement of any Purchase Contract by the Holder
      of the related Units, the Company shall issue, and the Holder shall be
      entitled to receive, - Common Shares on account of such Purchase Contract
      (the "Early Settlement Rate"). The Early Settlement Rate shall be adjusted
      in the same manner and at the same time as the Settlement Rate is adjusted
      pursuant to Section 5.6. As promptly as practicable after Early Settlement
      of Purchase Contracts in accordance with the provisions of this Section
      5.9, the Company shall issue and shall deliver to the Agent at the
      Corporate Trust Office a certificate or certificates for the full number
      of Common Shares issuable upon such Early Settlement together with payment
      in lieu of any fraction of a share, as provided in Section 5.12.

            (c)   No later than the third Business Day after the applicable
      Early Settlement Date the Company shall cause (i) the Common Shares
      issuable upon Early Settlement of Purchase Contracts to be issued and
      delivered, and (ii) the related Pledged Notes or Pledged Treasury
      Consideration, in the case of Normal Units, or the related Pledged
      Treasury Securities, in the case of Stripped Units, to be released from
      the Pledge by the Collateral Agent and transferred, in each case, to the
      Agent for delivery to the Holder thereof or the Holder's designee.

            (d)   Upon Early Settlement of any Purchase Contracts, and subject
      to receipt of Common Shares from the Company and the Pledged Notes,
      Pledged

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<Page>

      Treasury Consideration or Pledged Treasury Securities, as the case may be,
      from the Collateral Agent, as applicable, the Agent shall, in accordance
      with the instructions provided by the Holder thereof on the applicable
      form of Election to Settle Early on the reverse of the Certificate
      evidencing the related Units, (i) transfer to the Holder the Pledged
      Notes, Pledged Treasury Consideration or Pledged Treasury Securities, as
      the case may be, forming a part of such Units, and (ii) deliver to the
      Holder a certificate or certificates for the full number of Common Shares
      issuable upon such Early Settlement together with payment in lieu of any
      fraction of a share, as provided in Section 5.12.

            (e)   In the event that Early Settlement is effected with respect to
      Purchase Contracts underlying less than all the Units evidenced by a
      Certificate, upon such Early Settlement the Company shall execute and the
      Agent shall authenticate, execute on behalf of the Holder and deliver to
      the Holder thereof, at the expense of the Company, a Certificate
      evidencing the Units as to which Early Settlement was not effected.

            (f)   If such a registration statement is so required, the Company
      covenants and agrees to use its reasonable best efforts to (A) have in
      effect a registration statement covering the shares of Common Stock to be
      delivered in respect of the Purchase Contracts being settled and (B)
      provide a prospectus in connection therewith, in each case in a form that
      the Agent may use in connection with such Early Settlement.

            SECTION 5.10 EARLY SETTLEMENT UPON CASH MERGER.

            (a)   In the event of a merger or consolidation of the Company of
      the type described in clause (1) of Section 5.6(b) in which the Common
      Shares outstanding immediately prior to such merger or consolidation are
      exchanged for consideration consisting of at least 30% cash or cash
      equivalents (any such event a "Cash Merger"), then the Company (or the
      successor to the Company hereunder) shall be required to offer the Holder
      of each Unit the right to settle the Purchase Contract underlying such
      Unit prior to the Share Purchase Date ("Merger Early Settlement") as
      provided herein. On or before the fifth Business Day after the
      consummation of a Cash Merger, the Company or, at the request and expense
      of the Company, the Agent, shall give all Holders notice of the occurrence
      of the Cash Merger and of the right of Merger Early Settlement arising as
      a result thereof. The Company shall also deliver a copy of such notice to
      the Agent and the Collateral Agent.

            Each such notice shall contain:

                  (i)   the date, which shall be not less than 20 nor more than
            30 calendar days after the date of such notice, on which the Merger
            Early Settlement will be effected (the "Merger Early Settlement
            Date");

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                  (ii)  the date, which shall be on or one Business Day prior to
            the Merger Early Settlement Date, by which the Merger Early
            Settlement right must be exercised;

                  (iii) the Settlement Rate in effect as a result of such Cash
            Merger and the kind and amount of securities, cash and other
            property receivable by the Holder upon settlement of each Purchase
            Contract pursuant to Section 5.6(b);

                  (iv)  a statement to the effect that all or a portion of the
            Purchase Price payable by the Holder to settle the Purchase Contract
            will be offset against the amount of cash so receivable upon
            exercise of Merger Early Settlement, as applicable; and

                  (v)   the instructions a Holder must follow to exercise the
            Merger Early Settlement right.

            (b)   To exercise a Merger Early Settlement right, a Holder shall
      deliver to the Agent at the Corporate Trust Office on or before 5:00 p.m.,
      New York City time, on the date specified in the notice the Certificate(s)
      evidencing the Units with respect to which the Merger Early Settlement
      right is being exercised duly endorsed for transfer to the Company or in
      blank with the form of Election to Settle Early on the reverse thereof
      duly completed and accompanied by payment payable to the Company in
      immediately available funds in an amount equal to the Early Settlement
      Amount less the amount of cash that otherwise would be deliverable by the
      Company or its successor upon settlement of the Purchase Contract in lieu
      of Common Shares pursuant to Section 5.6(b) and as described in the notice
      to Holders (the "Merger Early Settlement Amount").

            (c)   On the Merger Early Settlement Date, the Company shall deliver
      or cause to be delivered (i) the net cash, securities and other property
      to be received by such exercising Holder, equal to the Settlement Rate as
      adjusted pursuant to Section 5.6, in respect of the number of Purchase
      Contracts for which such Merger Early Settlement right was exercised, and
      (ii) the related Pledged Notes or Pledged Treasury Consideration, in the
      case of Normal Units, or Pledged Treasury Securities, in the case of
      Stripped Units, to be released from the Pledge by the Collateral Agent and
      transferred, in each case, to the Agent for delivery to the Holder thereof
      or its designee. In the event a Merger Early Settlement right shall be
      exercised by a Holder in accordance with the terms hereof, all references
      herein to Share Purchase Date shall be deemed to refer to such Merger
      Early Settlement Date.

            (d)   Upon Merger Early Settlement of any Purchase Contracts, and
      subject to receipt of such net cash, securities or other property from the
      Company and the Pledged Notes, Pledged Treasury Consideration or Pledged
      Treasury Securities, as the case may be, from the Collateral Agent, as
      applicable, the Agent

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<Page>

      shall, in accordance with the instructions provided by the Holder thereof
      on the applicable form of Election to Settle Early on the reverse of the
      Certificate evidencing the related Units, (i) transfer to the Holder the
      Pledged Notes, Pledged Treasury Consideration or Pledged Treasury
      Securities, as the case may be, forming a part of such Units, and (ii)
      deliver to the Holder such net cash, securities or other property issuable
      upon such Merger Early Settlement together with payment in lieu of any
      fraction of a share, as provided in Section 5.12.

            (e)   In the event that Merger Early Settlement is effected with
      respect to Purchase Contracts underlying less than all the Units evidenced
      by a Certificate, upon such Merger Early Settlement the Company (or the
      successor to the Company hereunder) shall execute and the Agent shall
      authenticate, execute on behalf of the Holder and deliver to the Holder
      thereof, at the expense of the Company, a Certificate evidencing the Units
      as to which Merger Early Settlement was not effected.

            SECTION 5.11 CHARGES AND TAXES.

            The Company will pay all stock transfer and similar taxes
attributable to the initial issuance and delivery of the Common Shares pursuant
to the Purchase Contracts and in payment of any Deferred Contract Adjustment
Payments; provided, that the Company shall not be required to pay any such tax
or taxes which may be payable in respect of any exchange of or substitution for
a Certificate evidencing a Unit or any issuance of a Common Share in a name
other than that of the registered Holder of a Certificate surrendered in respect
of the Units evidenced thereby, other than in the name of the Agent, as
custodian for such Holder, and the Company shall not be required to issue or
deliver such Common Share certificates or Certificates unless and until the
Person or Persons requesting the transfer or issuance thereof shall have paid to
the Company the amount of such tax or shall have established to the satisfaction
of the Company that such tax has been paid.

            SECTION 5.12 NO FRACTIONAL SHARES.

            No fractional shares or scrip representing fractional Common Shares
shall be issued or delivered upon settlement on the Share Purchase Date or upon
Early Settlement or Merger Early Settlement of any Purchase Contracts. If
Certificates evidencing more than one Purchase Contract shall be surrendered for
settlement at one time by the same Holder, the number of full Common Shares
which shall be delivered upon settlement shall be computed on the basis of the
aggregate number of Purchase Contracts evidenced by the Certificates so
surrendered. Instead of any fractional Common Share which would otherwise be
deliverable upon settlement of any Purchase Contracts on the applicable
Settlement Date or upon Early Settlement or Merger Early Settlement, the
Company, through the Agent, shall make a cash payment in respect of such
fractional shares in an amount equal to the value of such fractional shares
times the Applicable Market Value. The Company shall provide the Agent from time
to time with

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sufficient funds to permit the Agent to make all cash payments required by this
Section 5.12 in a timely manner.

                                   ARTICLE VI

                                    REMEDIES

            SECTION 6.1 UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PURCHASE
CONTRACT ADJUSTMENT PAYMENTS AND PURCHASE COMMON SHARES.

            The Holder of any Unit shall have the right, which is
absolute and unconditional,

            (a)   subject to the right of the Company to defer payment thereof
      pursuant to Section 5.3, and to the forfeiture of any Deferred Contract
      Adjustment Payments upon Early Settlement pursuant to Section 5.9 or upon
      Merger Early Settlement pursuant to Section 5.10 or upon the occurrence of
      a Termination Event, to receive payment of each installment of the
      Contract Adjustment Payments, if any, with respect to the Purchase
      Contract constituting a part of such Unit on the respective Payment Date
      for such Unit, and to institute suit for the enforcement of such right to
      receive Contract Adjustment Payments, and

            (b)   to purchase Common Shares pursuant to the Purchase Contract
      constituting a part of such Unit and to institute suit for the enforcement
      of any such right to purchase Common Shares, and such rights shall not be
      impaired without the consent of such Holder.

            SECTION 6.2 RESTORATION OF RIGHTS AND REMEDIES.

            If any Holder has instituted any proceeding to enforce any right or
remedy under this Agreement and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to such Holder, then
and in every such case, subject to any determination in such proceeding, the
Company and such Holder shall be restored severally and respectively to their
former positions hereunder and thereafter all rights and remedies of such Holder
shall continue as though no such proceeding had been instituted.

            SECTION 6.3 RIGHTS AND REMEDIES CUMULATIVE.

            Except as otherwise provided with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Certificates in Section 3.10(f),
no right or remedy herein conferred upon or reserved to the Holders is intended
to be exclusive of any other right or remedy, and every right and remedy shall,
to the extent permitted by law, be cumulative and in addition to every other
right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise. The assertion or employment of any

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right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

            SECTION 6.4 DELAY OR OMISSION NOT WAIVER.

            No delay or omission of any Holder to exercise any right or remedy
upon a default shall impair any such right or remedy or constitute a waiver of
any such right. Every right and remedy given by this Article or by law to the
Holders may be exercised from time to time, and as often as may be deemed
expedient, by such Holders.

            SECTION 6.5 UNDERTAKING FOR COSTS.

            All parties to this Agreement agree, and each Holder of a Unit, by
its acceptance of such Unit shall be deemed to have agreed, that any court may
in its discretion require, in any suit for the enforcement of any right or
remedy under this Agreement, or in any suit against the Agent for any action
taken, suffered or omitted by it as Agent, the filing by any party litigant in
such suit of an undertaking to pay the costs of such suit, and that such court
may in its discretion assess reasonable costs, including reasonable attorneys'
fees, against any party litigant in such suit, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; provided
that the provisions of this Section shall not apply to any suit instituted by
the Company, to any suit instituted by the Agent, to any suit instituted by any
Holder, or group of Holders, holding in the aggregate more than 10% of the
Outstanding Units, or to any suit instituted by any Holder for the enforcement
of distributions on any Notes or Contract Adjustment Payments, if any, on any
Purchase Contract on or after the respective Payment Date therefor in respect of
any Unit held by such Holder, or for enforcement of the right to purchase Common
Shares under the Purchase Contract constituting part of any Unit held by such
Holder.

            SECTION 6.6 WAIVER OF STAY OR EXTENSION LAWS.

            The Company covenants (to the extent that it may lawfully do so)
that it will not at any time insist upon, or plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay or extension law wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Agreement; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law, but will suffer and permit the execution of every such power as though no
such law had been enacted.

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                                  ARTICLE VII

                                    THE AGENT

            SECTION 7.1 CERTAIN DUTIES AND RESPONSIBILITIES.

            (a)   (1) The Agent undertakes to perform, with respect to the Units
      and Separate Notes, such duties and only such duties as are specifically
      set forth in this Agreement and the Pledge Agreement, and no implied
      covenants or obligations shall be read into this Agreement against the
      Agent; and

                  (2)   in the absence of bad faith, willful misconduct or
            negligence on its part, the Agent may, with respect to the Units and
            Separate Notes, conclusively rely, as to the truth of the statements
            and the correctness of the opinions expressed therein, upon
            certificates or opinions furnished to the Agent and conforming to
            the requirements of this Agreement, but in the case of any
            certificates or opinions which by any provision hereof are
            specifically required to be furnished to the Agent, the Agent shall
            be under a duty to examine the same to determine whether or not they
            conform to the requirements of this Agreement (but need not confirm
            or investigate the accuracy of the mathematical calculations or
            other facts stated therein).

            (b)   No provision of this Agreement shall be construed to relieve
      the Agent from liability for its own grossly negligent action, its own
      grossly negligent failure to act, or its own willful misconduct, except
      that:

                  (1)   this paragraph (b) shall not be construed to limit the
            effect of paragraph (a) of this Section;

                  (2)   the Agent shall not be liable for any error of judgment
            made in good faith by a Responsible Officer, unless it shall be
            proved that the Agent was grossly negligent in ascertaining the
            pertinent facts; and

                  (3)   no provision of this Agreement shall require the Agent
            to expend or risk its own funds or otherwise incur any financial
            liability in the performance of any of its duties hereunder, or in
            the exercise of any of its rights or powers.

            (c)   Whether or not therein expressly so provided, every provision
      of this Agreement relating to the conduct or affecting the liability of or
      affording protection to the Agent shall be subject to the provisions of
      this Section.

            (d)   The Agent is authorized to execute and deliver the Pledge
      Agreement in its capacity as Agent. The Agent shall be entitled to all of
      the rights, privileges, immunities and indemnities contained in this
      Agreement with

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      respect to any duties of the Agent under, or actions taken, omitted to be
      taken or suffered by the Agent pursuant to the Pledge Agreement.

            SECTION 7.2 NOTICE OF DEFAULT.

            Within 30 days after the occurrence of any default by the Company
hereunder of which a Responsible Officer of the Agent has actual knowledge, the
Agent shall transmit by mail to the Company and the Holders of Units, as their
names and addresses appear in the applicable Register, notice of such default
hereunder, unless such default shall have been cured or waived.

            SECTION 7.3 CERTAIN RIGHTS OF AGENT.

            Subject to the provisions of Section 7.1:

            (a)   the Agent may conclusively rely and shall be fully protected
      in acting or refraining from acting upon any resolution, certificate,
      statement, instrument, opinion, report, notice, request, direction,
      consent, order, bond, debenture, note, other evidence of indebtedness or
      other paper or document reasonably believed by it to be genuine and to
      have been signed or presented by the proper party or parties;

            (b)   any request or direction of the Company mentioned herein shall
      be sufficiently evidenced by an Officers' Certificate, Issuer Order or
      Issuer Request, and any resolution of the Board of Directors of the
      Company may be sufficiently evidenced by a Board Resolution;

            (c)   whenever in the administration of this Agreement the Agent
      shall deem it desirable that a matter be proved or established prior to
      taking, suffering or omitting any action hereunder, the Agent (unless
      other evidence be herein specifically prescribed) may, in the absence of
      bad faith on its part, rely upon an Officers' Certificate of the Company;

            (d)   the Agent may consult with counsel and the advice of such
      counsel or any Opinion of Counsel shall be full and complete authorization
      and protection in respect of any action taken, suffered or omitted by it
      hereunder in good faith and in reliance thereon;

            (e)   the Agent shall not be bound to make any investigation into
      the facts or matters stated in any resolution, certificate, statement,
      instrument, opinion, report, notice, request, direction, consent, order,
      bond, debenture, note, other evidence of indebtedness or other paper or
      document, but the Agent, in its discretion, may make reasonable further
      inquiry or investigation into such facts or matters related to the
      execution, delivery and performance of the Purchase Contracts as it may
      see fit, and, if the Agent shall determine to make such further inquiry or
      investigation, it shall be given a reasonable opportunity to examine the

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      books, records and premises of the Company, personally or by agent or
      attorney; and

            (f)   the Agent may execute any of the powers hereunder or perform
      any duties hereunder either directly or by or through agents or attorneys
      or an Affiliate of the Agent and the Agent shall not be responsible for
      any misconduct or negligence on the part of any agent or attorney or an
      Affiliate appointed with due care by it hereunder.

            SECTION 7.4 NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF UNITS.

            The recitals contained herein and in the Certificates shall be taken
as the statements of the Company and the Agent assumes no responsibility for
their accuracy. The Agent makes no representations as to the validity or
sufficiency of either this Agreement or of the Units, or of the Pledge Agreement
or the Pledge. The Agent shall not be accountable for the use or application by
the Company of the Units or the proceeds therefrom or in respect of the Purchase
Contracts.

            SECTION 7.5 MAY HOLD UNITS.

            Any Registrar or any other agent of the Company, or the Agent and
its Affiliates, in their individual or any other capacity, may become the owner
or pledgee of Units and may otherwise deal with the Company, the Collateral
Agent or any other Person with the same rights it would have if it were not
Registrar or such other agent, or the Agent.

            SECTION 7.6 MONEY HELD IN CUSTODY.

            Money held by the Agent in custody hereunder need not be segregated
from the Agent's other funds except to the extent required by law or provided
herein. The Agent shall be under no obligation to invest or pay interest on any
money received by it hereunder except as otherwise agreed in writing with the
Company.

            SECTION 7.7 COMPENSATION AND REIMBURSEMENT.

            The Company agrees:

            (a)   to pay to the Agent from time to time reasonable compensation
      for all services rendered by it hereunder;

            (b)   except as otherwise expressly provided herein, to reimburse
      the Agent upon its request for all reasonable expenses, disbursements and
      advances incurred or made by the Agent in accordance with any provision of
      this Agreement (including the reasonable compensation and the reasonable
      expenses and disbursements of its agents and counsel), except any such
      expense,

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      disbursement or advance as may be attributable to its negligence, willful
      misconduct or bad faith; and

            (c)   to indemnify the Agent and any predecessor Agent for, and to
      hold it harmless against, any loss, liability or expense incurred without
      negligence, willful misconduct or bad faith on its part, arising out of or
      in connection with the acceptance or administration of its duties
      hereunder, including the costs and expenses of defending itself against
      any claim or liability in connection with the exercise or performance of
      any of its powers or duties hereunder. The Agent shall promptly notify the
      Company of any third party claim which may give rise to the indemnity
      hereunder and give the Company the opportunity to control the defense of
      such claim with counsel reasonably satisfactory to the indemnified party,
      and no such claim shall be settled without the written consent of the
      Company, which consent shall not be unreasonably withheld.

            For purposes of this Section 7.7, "Agent" shall include any
predecessor Agent; provided, however, that the negligence, bad faith or willful
misconduct of any Agent hereunder shall not affect the rights of any other Agent
hereunder.

            The provisions of this Section 7.7 shall survive the termination of
this Agreement, the satisfaction or discharge of the Units and/or the Separate
Notes and/or the resignation or removal of the Agent.

            SECTION 7.8 CORPORATE AGENT REQUIRED; ELIGIBILITY.

            There shall at all times be an Agent hereunder which shall be a
corporation organized and doing business under the laws of the United States of
America, any State thereof or the District of Columbia, authorized under such
laws to exercise corporate trust powers, having (or being a member of a bank
holding company having) a combined capital and surplus of at least $50,000,000,
subject to supervision or examination by federal or state authority and having a
Corporate Trust Office in the Borough of Manhattan, The City of New York, if
there be such a corporation, qualified and eligible under this Article and
willing to act on reasonable terms. If such corporation publishes reports of
condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition
so published. If at any time the Agent shall cease to be eligible in accordance
with the provisions of this Section, it shall resign immediately in the manner
and with the effect hereinafter specified in this Article.

            SECTION 7.9 RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.

            (a)   No resignation or removal of the Agent and no appointment of a
      successor Agent pursuant to this Article shall become effective until the

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      acceptance of appointment by the successor Agent in accordance with the
      applicable requirements of Section 7.10.

            (b)   The Agent may resign at any time by giving written notice
      thereof to the Company 60 days prior to the effective date of such
      resignation. If the instrument of acceptance by a successor Agent required
      by Section 7.10 shall not have been delivered to the Agent within 30 days
      after the giving of such notice of resignation, the resigning Agent may
      petition any court of competent jurisdiction for the appointment of a
      successor Agent.

            (c)   The Agent may be removed at any time by Act of the Holders of
      a majority in number of the Outstanding Units delivered to the Agent and
      the Company.

            (d)   If at any time:

                  (1)   the Agent fails to comply with Section 310(b) of the
            TIA, as if the Agent were an indenture trustee under an indenture
            qualified under the TIA, after written request therefor by the
            Company or by any Holder who has been a bona fide Holder of a Unit
            for at least six months; or

                  (2)   the Agent shall cease to be eligible under Section 7.8
            and shall fail to resign after written request therefor by the
            Company or by any such Holder; or

                  (3)   the Agent shall become incapable of acting or shall be
            adjudged a bankrupt or insolvent or a receiver of the Agent or of
            its property shall be appointed or any public officer shall take
            charge or control of the Agent or of its property or affairs for the
            purpose of rehabilitation, conservation or liquidation;

      then, in any such case, (x) the Company by a Board Resolution may remove
      the Agent, or (y) any Holder who has been a bona fide Holder of a Unit for
      at least six months may, on behalf of himself and all others similarly
      situated, petition any court of competent jurisdiction for the removal of
      the Agent and the appointment of a successor Agent.

            (e)   If the Agent shall resign, be removed or become incapable of
      acting, or if a vacancy shall occur in the office of Agent for any reason,
      the Company, by a Board Resolution, shall promptly appoint a successor
      Agent and shall comply with the applicable requirements of Section 7.10.
      If no successor Agent shall have been so appointed by the Company and
      accepted appointment in the manner required by Section 7.10, any Holder
      who has been a bona fide Holder of a Unit for at least six months may, on
      behalf of itself and all others similarly

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      situated, petition any court of competent jurisdiction for the appointment
      of a successor Agent.

            (f)   The Company shall give, or shall cause such successor Agent to
      give, notice of each resignation and each removal of the Agent and each
      appointment of a successor Agent by mailing written notice of such event
      by first-class mail, postage prepaid, to all Holders as their names and
      addresses appear in the applicable Register. Each notice shall include the
      name of the successor Agent and the address of its Corporate Trust Office.

            SECTION 7.10 ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.

            (a)   In case of the appointment hereunder of a successor Agent,
      every such successor Agent so appointed shall execute, acknowledge and
      deliver to the Company and to the retiring Agent an instrument accepting
      such appointment, and thereupon the resignation or removal of the retiring
      Agent shall become effective and such successor Agent, without any further
      act, deed or conveyance, shall become vested with all the rights, powers,
      agencies and duties of the retiring Agent. On the request of the Company
      or the successor Agent, such retiring Agent shall, upon payment of its
      charges, execute and deliver an instrument transferring to such successor
      Agent all the rights, powers and trusts of the retiring Agent and shall
      duly assign, transfer and deliver to such successor Agent all property and
      money held by such retiring Agent hereunder.

            (b)   Upon request of any such successor Agent, the Company shall
      execute any and all instruments for more fully and certainly vesting in
      and confirming to such successor Agent all such rights, powers and
      agencies referred to in paragraph (a) of this Section.

            (c)   No successor Agent shall accept its appointment unless at the
      time of such acceptance such successor Agent shall be qualified and
      eligible under this Article.

            SECTION 7.11 MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO
            BUSINESS.

            Any Person into which the Agent may be merged or converted or with
which it may be consolidated, or any Person resulting from any merger,
conversion or consolidation to which the Agent shall be a party, or any Person
succeeding to all or substantially all the corporate trust business of the
Agent, shall be the successor of the Agent hereunder, provided such Person shall
be otherwise qualified and eligible under this Article, without the execution or
filing of any paper or any further act on the part of any of the parties hereto.
In case any Certificates shall have been authenticated and executed on behalf of
the Holders, but not delivered, by the Agent then in office, any successor to
such Agent shall adopt such authentication and execution and deliver the

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Certificates so authenticated and executed with the same effect as if such
successor Agent had itself authenticated and executed such Units.

            SECTION 7.12 PRESERVATION OF INFORMATION; COMMUNICATIONS TO HOLDERS.

            The Agent shall preserve, in as current a form as is reasonably
practicable, the names and addresses of Holders received by the Agent in its
capacity as Registrar.

            SECTION 7.13 NO OBLIGATIONS OF AGENT.

            Except to the extent otherwise provided in this Agreement, the Agent
assumes no obligation and shall not be subject to any liability under this
Agreement, the Pledge Agreement or any Purchase Contract in respect of the
obligations of the Holder of any Unit thereunder. The Company agrees, and each
Holder of a Certificate, by such Holder's acceptance thereof, shall be deemed to
have agreed, that the Agent's execution of the Certificates on behalf of the
Holders shall be solely as agent and attorney-in-fact for the Holders, and that
the Agent shall have no obligation to perform such Purchase Contracts on behalf
of the Holders, except to the extent expressly provided in Article V.

            SECTION 7.14 TAX COMPLIANCE.

            (a)   The Agent, on its own behalf and on behalf of the Company,
      will comply with all applicable certification, information reporting and
      withholding (including "backup" withholding) requirements imposed by
      applicable tax laws, regulations or administrative practice with respect
      to (i) any payments made with respect to the Units or (ii) the issuance,
      delivery, holding, transfer, redemption or exercise of rights under the
      Units. Such compliance shall include, without limitation, the preparation
      and timely filing of required returns and the timely payment of all
      amounts required to be withheld to the appropriate taxing authority or its
      designated agent.

            (b)   The Agent shall comply with any reasonable written direction
      timely received from the Company with respect to the execution or
      certification of any required documentation and the application of such
      requirements to particular payments or Holders or in other particular
      circumstances, and may for purposes of this Agreement conclusively rely on
      any such direction in accordance with the provisions of Section 7.1(a)(2).

            (c)   The Agent shall maintain all appropriate records documenting
      compliance with such requirements, and shall make such records available,
      on written request, to the Company or its authorized representative within
      a reasonable period of time after receipt of such request.

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                                  ARTICLE VIII

                             SUPPLEMENTAL AGREEMENTS

            SECTION 8.1 SUPPLEMENTAL AGREEMENTS WITHOUT CONSENT OF HOLDERS.

      Without the consent of any Holders, the Company and the Agent, at any time
      and from time to time, may enter into one or more agreements supplemental
      hereto, in form satisfactory to the Company and the Agent, for any of the
      following purposes:

            (a)   to evidence the succession of another Person to the Company,
      and the assumption by any such successor of the covenants of the Company
      herein and in the Certificates; or

            (b)   to add to the covenants of the Company for the benefit of the
      Holders, or to surrender any right or power herein conferred upon the
      Company; or

            (c)   to evidence and provide for the acceptance of appointment
      hereunder by a successor Agent; or

            (d)   to make provision with respect to the rights of Holders
      pursuant to the requirements of Section 5.6(b) or 5.10; or

            (e)   to cure any ambiguity, to correct or supplement any provisions
      herein which may be inconsistent with any other provisions herein, or to
      make any other provisions with respect to such matters or questions
      arising under this Agreement, provided such action shall not adversely
      affect the interests of the Holders.

            SECTION 8.2 SUPPLEMENTAL AGREEMENTS WITH CONSENT OF HOLDERS.

            (a)   With the consent of the Holders of not less than a majority of
      the outstanding Purchase Contracts voting together as one class, by Act of
      said Holders delivered to the Company and the Agent, the Company, when
      authorized by a Board Resolution, and the Agent may enter into an
      agreement or agreements supplemental hereto for the purpose of modifying
      in any manner the terms of the Purchase Contracts, or the provisions of
      this Agreement or the rights of the Holders in respect of the Units;
      provided, however, that, except as contemplated herein, no such
      supplemental agreement shall, without the consent of the Holder of each
      Outstanding Unit affected thereby:

                  (1)   change any Payment Date;

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                  (2)   change the amount or the type of Collateral required to
            be Pledged to secure a Holder's obligations under the Purchase
            Contract, impair the right of the Holder of any Purchase Contract to
            receive distributions on the related Collateral (except for the
            rights of Holders of Normal Units to substitute the Treasury
            Securities for the Pledged Notes or Pledged Treasury Consideration
            or the rights of holders of Stripped Units to substitute Notes or
            appropriate Treasury Consideration for the Pledged Treasury
            Securities) or otherwise materially adversely affect the Holder's
            rights in or to such Collateral;

                  (3)   reduce any Contract Adjustment Payments or any Deferred
            Contract Adjustment Payment, or change any place where, or the coin
            or currency in which, any Contract Adjustment Payment is payable or
            increase any amounts payable in respect of the Units or decrease any
            other amounts receivable by Holders in respect of the Units;

                  (4)   impair the right to institute suit for the enforcement
            of any Purchase Contract, any Contract Adjustment Payment, if any,
            or any Deferred Contract Adjustment Payment, if any;

                  (5)   reduce the number of Common Shares to be purchased
            pursuant to any Purchase Contract, increase the price to purchase
            Common Shares upon settlement of any Purchase Contract, change the
            Share Purchase Date or otherwise materially adversely affect the
            Holder's rights under any Purchase Contract; or

                  (6)   reduce the percentage of the outstanding Purchase
            Contracts the consent of whose Holders is required for any such
            supplemental agreement;

      provided, that if any amendment or proposal referred to above would
      adversely affect only the Normal Units or the Stripped Units, then only
      the affected class of Holder as of the record date for the Holders
      entitled to vote thereon will be entitled to vote on or consent to such
      amendment or proposal, and such amendment or proposal shall not be
      effective except with the consent of Holders of not less than a majority
      of such class; provided, however, that no such agreement, whether with or
      without the consent of Holders, shall affect Section 3.16.

                  (b)   It shall not be necessary for any Act of Holders under
            this Section to approve the particular form of any proposed
            supplemental agreement, but it shall be sufficient if such Act shall
            approve the substance thereof.

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            SECTION 8.3 EXECUTION OF SUPPLEMENTAL AGREEMENTS.

            In executing, or accepting the additional agencies created by, any
supplemental agreement permitted by this Article or the modifications thereby of
the agencies created by this Agreement, the Agent shall be entitled to receive
and (subject to Section 7.1) shall be fully protected in relying upon, an
Officer's Certificate and an Opinion of Counsel stating that the execution of
such supplemental agreement is authorized or permitted by this Agreement. The
Agent shall enter into any such supplemental agreement which does not materially
adversely affect the Agent's own rights, duties or immunities under this
Agreement or otherwise.

            SECTION 8.4 EFFECT OF SUPPLEMENTAL AGREEMENTS.

            Upon the execution of any supplemental agreement under this Article,
this Agreement shall be modified in accordance therewith, and such supplemental
agreement shall form a part of this Agreement for all purposes; and every Holder
of Certificates theretofore or thereafter authenticated, executed on behalf of
the Holders and delivered hereunder shall be bound thereby.

            SECTION 8.5 REFERENCE TO SUPPLEMENTAL AGREEMENTS.

            Certificates authenticated, executed on behalf of the Holders and
delivered after the execution of any supplemental agreement pursuant to this
Article may, and shall if required by the Agent, bear a notation in form
approved by the Agent as to any matter provided for in such supplemental
agreement. If the Company shall so determine, new Certificates so modified as to
conform, in the opinion of the Agent and the Company, to any such supplemental
agreement may be prepared and executed by the Company and authenticated,
executed on behalf of the Holders and delivered by the Agent in exchange for
Outstanding Certificates.

                                   ARTICLE IX

               CONSOLIDATION, MERGER, SALE OR CONVEYANCE

            SECTION 9.1 COVENANT NOT TO MERGE, CONSOLIDATE, SELL OR CONVEY
PROPERTY EXCEPT UNDER CERTAIN CONDITIONS.

            The Company covenants that, so long as any Units are outstanding, it
will not (a) merge with or into or consolidate with any other Person or (b)
sell, assign, transfer, lease or convey all or substantially all of its
properties and assets to any Person or group of affiliated Persons in one
transaction or a series of related transactions, unless (i) either the Company
shall be the continuing entity, or the successor (if other than the Company)
shall be a Person, other than an individual, organized and existing under the
laws of Bermuda or the United States of America or a State thereof or the
District of Columbia and such Person shall expressly assume all the obligations
of the Company under the Purchase Contracts, the guarantees of the Notes, this
Agreement, the

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Remarketing Agreement and the Pledge Agreement by one or more supplemental
agreements in form reasonably satisfactory to the Agent and the Collateral
Agent, executed and delivered to the Agent and the Collateral Agent by such
Person, and (ii) the Company or such successor, as the case may be, shall not,
immediately after such merger or consolidation, or such sale, assignment,
transfer, lease or conveyance, be in default in the performance of any covenant
or condition hereunder, under any of the Purchase Contracts, under the
Remarketing Agreement or under the Pledge Agreement.

            SECTION 9.2 RIGHTS AND DUTIES OF SUCCESSOR CORPORATION.

            (a)   In case of any such consolidation, merger, sale, assignment,
      transfer, lease or conveyance and upon any such assumption by a successor
      entity in accordance with Section 9.1, such successor entity shall succeed
      to and be substituted for the Company with the same effect as if it had
      been named herein as the Company. Such successor entity thereupon may
      cause to be signed, and may issue either in its own name or in the name of
      the Company, any or all of the Certificates evidencing Units issuable
      hereunder which theretofore shall not have been signed by the Company and
      delivered to the Agent; and, upon the order of such successor corporation,
      instead of the Company, and subject to all the terms, conditions and
      limitations in this Agreement prescribed, the Agent shall authenticate and
      execute on behalf of the Holders and deliver any Certificates which
      previously shall have been signed and delivered by the officers of the
      Company to the Agent for authentication, execution on behalf of the Holder
      and delivery, and any Certificate evidencing Units which such successor
      entity thereafter shall cause to be signed and delivered to the Agent for
      that purpose. All the Certificates so issued shall in all respects have
      the same legal rank and benefit under this Agreement as the Certificates
      theretofore or thereafter issued in accordance with the terms of this
      Agreement as though all of such Certificates had been issued at the date
      of the execution hereof.

            (b)   In case of any such consolidation, merger, sale, assignment,
      transfer, lease or conveyance such change in phraseology and form (but not
      in substance) may be made in the Certificates evidencing Units thereafter
      to be issued as may be appropriate.

            SECTION 9.3 OPINION OF COUNSEL GIVEN TO AGENT.

            The Agent, subject to Sections 7.1 and 7.3, shall receive an Opinion
of Counsel as conclusive evidence that any such consolidation, merger, sale,
assignment, transfer, lease or conveyance, and any such assumption, complies
with the provisions of this Article and that all conditions precedent to the
consummation of any such consolidation, merger, sale, assignment, transfer,
lease or conveyance have been met.

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                                   ARTICLE X

                                    COVENANTS

            SECTION 10.1 PERFORMANCE UNDER PURCHASE CONTRACTS.

            The Company covenants and agrees for the benefit of the Holders from
time to time of the Units that it will duly and punctually perform its
obligations under the Purchase Contracts in accordance with the terms of the
Purchase Contracts and this Agreement.

            SECTION 10.2 MAINTENANCE OF OFFICE OR AGENCY.

            (a)   The Company will maintain in the Borough of Manhattan, The
      City of New York an office or agency where Certificates may be presented
      or surrendered for acquisition of Common Shares upon settlement of the
      Purchase Contracts on any Settlement Date and for transfer of Collateral
      upon occurrence of a Termination Event, where Certificates may be
      surrendered for registration of transfer or exchange, for a Collateral
      Substitution or reestablishment of Normal Units and where notices and
      demands to or upon the Company in respect of the Units and this Agreement
      may be served. The Company will give prompt written notice to the Agent of
      the location, and any change in the location, of such office or agency. If
      at any time the Company shall fail to maintain any such required office or
      agency or shall fail to furnish the Agent with the address thereof, such
      presentations, surrenders, notices and demands may be made or served at
      the Corporate Trust Office, and the Company hereby appoints the Agent as
      its agent to receive all such presentations, surrenders, notices and
      demands.

            (b)   The Company may also from time to time designate one or more
      other offices or agencies where Certificates may be presented or
      surrendered for any or all such purposes and may from time to time rescind
      such designations; provided, however, that no such designation or
      rescission shall in any manner relieve the Company of its obligation to
      maintain an office or agency in the Borough of Manhattan, The City of New
      York for such purposes. The Company will give prompt written notice to the
      Agent of any such designation or rescission and of any change in the
      location of any such other office or agency. The Company hereby designates
      as the place of payment for the Units the Corporate Trust Office and
      appoints the Agent at its Corporate Trust Office as paying agent in such
      city.

            SECTION 10.3 COMPANY TO RESERVE COMMON SHARES.

            The Company shall at all times prior to the Share Purchase Date
reserve and keep available, free from preemptive rights, out of its authorized
but unissued Common Shares the full number of Common Shares issuable against
tender of

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payment in respect of all Purchase Contracts constituting a part of the Units
evidenced by Outstanding Certificates.

            SECTION 10.4 COVENANTS AS TO COMMON SHARES.

            The Company covenants that all Common Shares which may be issued
against tender of payment in respect of any Purchase Contract constituting a
part of the Outstanding Units will, upon issuance, be duly authorized, validly
issued, fully paid and nonassessable.

                                       80
<Page>

            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed as of the day and year first above written.

                              PLATINUM UNDERWRITERS HOLDINGS, LTD.

                              By: ___________________________________
                                  Name:
                                  Title:

                              JPMORGAN CHASE BANK,
                              as Purchase Contract Agent

                              By: ___________________________________
                                  Name:
                                  Title:

<Page>

                                    EXHIBIT A
                        FORM OF NORMAL UNITS CERTIFICATE
                       (FORM OF GLOBAL CERTIFICATE LEGEND)

            [THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE MEANING OF THE
PURCHASE CONTRACT AGREEMENT (AS HEREINAFTER DEFINED ON THE REVERSE HEREOF) AND
IS REGISTERED IN THE NAME OF THE CLEARING AGENCY OR A NOMINEE THEREOF. THIS
CERTIFICATE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A CERTIFICATE
REGISTERED, AND NO TRANSFER OF THIS CERTIFICATE IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH CLEARING AGENCY OR A
NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE
CONTRACT AGREEMENT.

            Unless this Certificate is presented by an authorized representative
of The Depository Trust Company (55 Water Street, New York, New York) to the
Company or its agent for registration of transfer, exchange or payment, and any
Certificate issued is registered in the name of Cede & Co., or such other name
as requested by an authorized representative of The Depository Trust Company,
and any payment hereon is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL since the registered owner
hereof, Cede & Co., has an interest herein. ]

               (Form of Face of Normal Units Certificate)

                  Platinum Underwriters Holdings, Ltd.

         ___% Adjustable Conversion Rate Equity Security Units

No._______________                    CUSIP No.
Number of Normal Units __________

            This Normal Units Certificate certifies that _____ is the registered
Holder of the number of Normal Units set forth above. Each Normal Unit
represents (i) either (a) a 1/40, or 2.5%, beneficial ownership interest of the
Holder in one % Senior Note due 2007 (the "Note") of Platinum Underwriters
Finance, Inc., a Delaware corporation, having a principal amount of $1,000,
subject to the Pledge of such Note by such Holder pursuant to the Pledge
Agreement, or (b) if the Note has been remarketed by the Remarketing Agent (or
if the Holder has elected not to have the Note remarketed or a Tax Event
Redemption has occurred), the appropriate Treasury Consideration, subject to the
Pledge of such Treasury Consideration by such Holder pursuant to the Pledge
Agreement, and (ii) the rights and obligations of the Holder under one Purchase
Contract with Platinum Underwriters Holdings, Ltd., a Bermuda corporation (the
"Company"). All capitalized terms used herein which are defined in the Purchase
Contract Agreement have the meaning set forth therein.

                                      A-1
<Page>

            Pursuant to the Pledge Agreement, the interest in the Note or the
appropriate Treasury Consideration, as the case may be, constituting part of
each Normal Unit evidenced hereby has been pledged to the Collateral Agent, for
the benefit of the Company, to secure the obligations of the Holder under the
Purchase Contract comprising a part of such Normal Unit to purchase Common
Shares of the Company. Prior to the purchase of Common Shares under each
Purchase Contract, such Purchase Contracts shall not entitle the Holders of
Normal Units Certificates to any of the rights of a holder of Common Shares,
including without limitation, the right to vote or receive any dividends or
other payments or to consent or to receive notice as stockholders in respect of
the meetings of stockholders, or for the election of directors of the Company or
for any other matter or any other rights whatsoever as stockholder of the
Company.

            The Pledge Agreement provides that all payments in respect of the
Pledged Notes or Pledged Treasury Consideration received by the Collateral Agent
shall be paid by the Collateral Agent by wire transfer in same day funds (i) in
the case of (A) quarterly cash distributions on Normal Units which include
Pledged Notes or Pledged Treasury Consideration and (B) any payments in respect
of the Notes or Treasury Consideration, as the case may be, that have been
released from the Pledge pursuant to the Pledge Agreement, to the Agent to the
account designated by the Agent, no later than 10:00 a.m., New York City time,
on the Business Day such payment is received by the Collateral Agent (provided
that in the event such payment is received by the Collateral Agent on a day that
is not a Business Day or after 9:00 a.m., New York City time, on a Business Day,
then such payment shall be made no later than 9:30 a.m., New York City time, on
the next succeeding Business Day) and (ii) in the case of payments in respect of
any Pledged Notes or Pledged Treasury Consideration, as the case may be, to be
paid upon settlement of such Holder's obligations to purchase Common Shares
under the Purchase Contract, to the Company on the Share Purchase Date (as
defined herein) in accordance with the terms of the Pledge Agreement, in full
satisfaction of the respective obligations of the Holders of the Normal Units of
which such Pledged Notes or Pledged Treasury Consideration are a part under the
Purchase Contracts forming a part of such Normal Units. Quarterly distributions
on Normal Units which include Pledged Notes or Pledged Treasury Consideration
which are payable quarterly in arrears on -, -, -, and - each year, commencing
-, 2002 (a "Payment Date"), shall, subject to receipt thereof by the Agent from
the Collateral Agent, be paid to the Person in whose name this Normal Units
Certificate (or a Predecessor Normal Units Certificate) is registered at the
close of business on the Record Date for such Payment Date.

            Each Purchase Contract evidenced hereby obligates the Holder of this
Normal Units Certificate to purchase, and the Company to sell, on -, 2005 (the
"Share Purchase Date"), at a price equal to $25 (the "Stated Amount"), a number
of Common Shares, $0.01 par value per share ("Common Shares"), of the Company,
equal to the Settlement Rate, unless on or prior to the Share Purchase Date
there shall have occurred a Termination Event or an Early Settlement or Merger
Early Settlement with respect to the Normal Units of which such Purchase
Contract is a part, all as provided in the Purchase Contract Agreement, as
defined and more fully described on the reverse hereof. The

                                      A-2
<Page>

Purchase Price (as defined herein) for the Common Shares purchased pursuant to
each Purchase Contract evidenced hereby, if not paid earlier, shall be paid on
the Share Purchase Date by application of payments received in respect of the
Pledged Notes or the Pledged Treasury Consideration pledged to secure the
obligations of the Holder under such Purchase Contract.

            Payments on the Notes or the appropriate Treasury Consideration will
be payable at the office of the Agent in The City of New York or, at the option
of the Company, by check mailed to the address of the Person entitled thereto as
such address appears on the Normal Units Register or by wire transfer to an
account specified by the Company.

            The Company shall pay on each Payment Date in respect of each
Purchase Contract forming part of a Normal Unit evidenced hereby an amount (the
"Contract Adjustment Payments") equal to -% per year of the Stated Amount,
computed on the basis of a 360-day year of twelve 30-day months, subject to
deferral at the option of the Company as provided in the Purchase Contract
Agreement and more fully described on the reverse hereof (provided that if on
any date on which Contract Adjustment Payments are to be made on the Purchase
Contracts is not a Business Day, then payment of the Contract Adjustment
Payments payable on that date will be made on the next succeeding day which is a
Business Day, and no interest or payment will be paid in respect of the delay,
except that if such next succeeding Business Day is in the next succeeding
calendar year, such payment will be made on the immediately preceding Business
Day). Such Contract Adjustment Payments shall be payable to the Person in whose
name this Normal Units Certificate (or a Predecessor Normal Units Certificate)
is registered at the close of business on the Record Date for such Payment Date.

            Contract Adjustment Payments will be payable at the office of the
Agent in The City of New York or, at the option of the Company, by check mailed
to the address of the Person entitled thereto as such address appears on the
Normal Units Register.

            Reference is hereby made to the further provisions set forth on the
reverse hereof, which further provisions shall for all purposes have the same
effect as if set forth at this place.

            Unless the certificate of authentication hereon has been executed by
the Agent by manual signature, this Normal Units Certificate shall not be
entitled to any benefit under the Pledge Agreement or the Purchase Contract
Agreement or be valid or obligatory for any purpose.

                                      A-3
<Page>

            IN WITNESS WHEREOF, the Company has caused this instrument to be
duly executed.

Dated: ____________

                              PLATINUM UNDERWRITERS HOLDINGS, LTD.

                              By: __________________________________
                                  Name:
                                  Title:

                              HOLDER SPECIFIED ABOVE (as to obligations
                              of such Holder under the Purchase
                              Contracts evidenced hereby)

                              By: JPMORGAN CHASE BANK,
                                  not individually but solely as
                                  Attorney-in-Fact of such Holder

                                  By:_______________________________
                                     Name:
                                     Title:

                                      A-4
<Page>

                 AGENT'S CERTIFICATE OF AUTHENTICATION

            This is one of the Normal Units Certificates referred to in the
within mentioned Purchase Contract Agreement.

                                  JPMORGAN CHASE BANK,
                                  as Purchase Contract Agent

Dated:__________________          By:__________________________________

                                     Authorized Officer

                                      A-5
<Page>

                  (Form of Reverse of Normal Units Certificate)

            Each Purchase Contract evidenced hereby is governed by a Purchase
Contract Agreement, dated as of -, 2002 (as may be supplemented from time to
time, the "Purchase Contract Agreement"), between the Company and JPMorgan Chase
Bank, as Purchase Contract Agent (including its successors thereunder, herein
called the "Agent"), to which Purchase Contract Agreement and supplemental
agreements thereto reference is hereby made for a description of the respective
rights, limitations of rights, obligations, duties and immunities thereunder of
the Agent, the Company, and the Holders and of the terms upon which the Normal
Units Certificates are, and are to be, executed and delivered. All defined terms
used but not defined in this Certificate have the meanings ascribed to them in
the Purchase Contract Agreement.

            Each Purchase Contract evidenced hereby obligates the Holder of this
Normal Units Certificate to purchase, and the Company to sell, on the Share
Purchase Date at a price equal to $25 (the "Purchase Price"), a number of Common
Shares of the Company equal to the Settlement Rate, unless, on or prior to the
Share Purchase Date, there shall have occurred a Termination Event or a Cash
Settlement, Early Settlement or Merger Early Settlement with respect to the Unit
of which such Purchase Contract is a part. The "Settlement Rate" is equal to (a)
if the Applicable Market Value (as defined below) is equal to or greater than $-
(the "Threshold Appreciation Price"), - Common Shares per Purchase Contract, (b)
if the Applicable Market Value is less than the Threshold Appreciation Price but
is greater than $-, the number of Common Shares per Purchase Contract equal to
the Stated Amount divided by the Applicable Market Value and (c) if the
Applicable Market Value is equal to or less than $-, - Common Shares per
Purchase Contract, in each case subject to adjustment as provided in the
Purchase Contract Agreement. No fractional Common Shares will be issued upon
settlement of Purchase Contracts, as provided in the Purchase Contract
Agreement.

            The "Applicable Market Value" means the average of the Closing Price
per Common Share on each of the 20 consecutive Trading Days ending on the third
Trading Day immediately preceding the Share Purchase Date or, in the event of a
Cash Merger, the Cash Merger Date.

            The "Closing Price" of the Common Shares on any date of
determination means the closing sale price (or, if no closing sale price is
reported, the last reported sale price) of the Common Shares on the New York
Stock Exchange (the "NYSE") on such date or, if the Common Shares are not listed
for trading on the NYSE on any such date, as reported in the composite
transactions for the principal United States securities exchange on which the
Common Shares are so listed, or if the Common Shares are not so listed on a
United States national or regional securities exchange, as reported by The
Nasdaq Stock Market, or, if the Common Shares are not so reported, the last
quoted bid price for the Common Shares in the over-the-counter market as
reported by the National Quotation Bureau or similar organization, or, if such
bid price is not available, the market value of the Common Shares on such date
as determined by a nationally recognized independent investment banking firm
retained for this purpose by the Company.

                                      A-6
<Page>

            A "Trading Day" means a day on which the Common Shares (A) are not
suspended from trading on any national or regional securities exchange or
association or over-the-counter market at the close of business and (B) has
traded at least once on the national or regional securities exchange or
association or over-the-counter market that is the primary market for the
trading of the Common Shares at the close of business on such day.

            Each Purchase Contract evidenced hereby may be settled prior to the
Share Purchase Date through Cash Settlement, Early Settlement or Merger Early
Settlement, in accordance with the terms of the Purchase Contract Agreement.

            In accordance with the terms of the Purchase Contract Agreement, the
Holder of this Normal Units Certificate shall pay the Purchase Price for the
Common Shares purchased pursuant to each Purchase Contract evidenced hereby (i)
by effecting a Cash Settlement, an Early Settlement or Merger Early Settlement,
(ii) by application of payments received in respect of the Pledged Treasury
Consideration acquired from the proceeds of a remarketing of the related Pledged
Notes underlying the Normal Units represented by this Normal Units Certificate
as contemplated by Section 5.4 of the Purchase Contract Agreement or (iii) if
the Holder has elected not to participate in the remarketing, by application of
payments received in respect of the Pledged Opt-out Treasury Consideration
deposited by such Holder in respect of such Purchase Contract or (iv) if a Tax
Event Redemption has occurred prior to the successful remarketing of the Notes
as contemplated by Section 5.4 of the Purchase Contract Agreement, by
application of payments received in respect of the Pledged Treasury
Consideration purchased by the Collateral Agent on behalf of the Holder of this
Normal Units Certificate. If, as provided in the Purchase Contract Agreement,
upon the occurrence of a Last Failed Remarketing the Collateral Agent, for the
benefit of the Company, exercises its rights as a secured creditor with respect
to the Pledged Notes related to this Normal Units Certificate, any accrued and
unpaid interest on such Pledged Notes will become payable by the Company to the
Holder of this Normal Units Certificate in the manner provided for in the
Purchase Contract Agreement.

            The Company shall not be obligated to issue any Common Shares in
respect of a Purchase Contract or deliver any certificates therefor to the
Holder unless it shall have received payment in full of the aggregate Purchase
Price for the Common Shares to be purchased thereunder in the manner herein set
forth.

            Under and subject to the terms of the Pledge Agreement and the
Purchase Contract Agreement, the Agent will be entitled to exercise the voting
and any other consensual rights pertaining to the Pledged Notes, but only to the
extent instructed by the Holders as described below. Upon receipt of notice of
any meeting at which holders of Notes are entitled to vote or upon the
solicitation of consents, waivers or proxies of holders of Notes, the Agent
shall, as soon as practicable thereafter, mail to the Holders of Normal Units a
notice (a) containing such information as is contained in the notice or
solicitation, (b) stating that each such Holder on the record date set by the
Agent therefor (which, to the extent possible, shall be the same date as the
record date for determining

                                      A-7
<Page>

the holders of Notes entitled to vote) shall be entitled to instruct the Agent
as to the exercise of the voting rights pertaining to the Pledged Notes
constituting a part of such Holder's Normal Units and (c) stating the manner in
which such instructions may be given. Upon the written request of any Holder of
Normal Units on such record date, the Agent shall endeavor insofar as
practicable to vote or cause to be voted, in accordance with the instructions
set forth in such requests the maximum number of Pledged Notes as to which any
particular voting instructions are received. In the absence of specific
instructions from the Holder of a Normal Unit, the Agent shall abstain from
voting the Pledged Note evidenced by such Normal Unit.

            The Normal Units Certificates are issuable only in registered form
and only in denominations of a single Normal Unit and any integral multiple
thereof. The transfer of any Normal Units Certificate will be registered and
Normal Units Certificates may be exchanged as provided in the Purchase Contract
Agreement. The Normal Units Registrar may require a Holder, among other things,
to furnish appropriate endorsements and transfer documents permitted by the
Purchase Contract Agreement. No service charge shall be required for any such
registration of transfer or exchange of a Normal Units Certificate, but the
Company and the Agent may require payment of a sum sufficient to cover any tax
or other governmental charge that may be imposed in connection with any
registration of transfer or exchange of Certificates, other than exchanges not
involving any transfer as provided for in the Purchase Contract Agreement. The
Holder of a Normal Unit may substitute for the Pledged Notes or Pledged Treasury
Consideration securing its obligations under the related Purchase Contract
Treasury Securities in accordance with the terms of the Purchase Contract
Agreement and the Pledge Agreement. From and after such Collateral Substitution,
the Unit for which such Pledged Treasury Securities secures the Holder's
obligation under the Purchase Contract shall be referred to as a "Stripped
Unit." A Holder that elects to substitute Treasury Securities for Pledged Notes
or Pledged Treasury Consideration, thereby creating Stripped Units, shall be
responsible for any fees or expenses payable in connection therewith. Except as
provided in the Purchase Contract Agreement, for so long as the Purchase
Contract underlying a Normal Unit remains in effect, such Normal Unit shall not
be separable into its constituent parts, and the rights and obligations of the
Holder of such Normal Units in respect of the Pledged Note or Pledged Treasury
Consideration and Purchase Contract comprising such Normal Unit may be acquired,
and may be transferred and exchanged, only as a Normal Unit.

            A Holder of Stripped Units may reestablish Normal Units at any time
from and after the date of the Purchase Contract Agreement and on or prior to
the second Business Day immediately preceding the Share Purchase Date by
depositing with the Collateral Agent the Notes or the appropriate Treasury
Consideration in exchange for the release of the Pledged Treasury Securities in
accordance with the terms of the Purchase Contract Agreement and the Pledge
Agreement.

            Subject to the next succeeding paragraph, the Company shall pay, on
each Payment Date, the Contract Adjustment Payments, if any, payable in respect
of each Purchase Contract to the Person in whose name the Normal Units
Certificate (or one or

                                      A-8
<Page>

more Predecessor Normal Units Certificates) evidencing such Purchase Contract is
registered on the Normal Units Register at the close of business on the Record
Date next preceding such Payment Date. The Contract Adjustment Payments, if any,
will be payable at the Corporate Trust Office or, at the option of the Company,
by check mailed to the address of the Person entitled thereto at such Person's
address as it appears on the Normal Units Register or by wire transfer to the
account designated by such Person in writing.

            The Company shall have the right, at any time prior to the Share
Purchase Date, to defer the payment of any or all of the Contract Adjustment
Payments otherwise payable on any Payment Date, but only if the Company shall
give the Holders and the Agent written notice of its election to defer each such
Contract Adjustment Payments as provided in the Purchase Contract Agreement. Any
Contract Adjustment Payments so deferred shall, to the extent permitted by law,
accrue additional Contract Adjustment Payments thereon at the rate of -% per
year (computed on the basis of a 360-day year of twelve 30-day months),
compounding on each succeeding Payment Date, until paid in full (such deferred
installments of Contract Adjustment Payments, if any, together with the
additional Contract Adjustment Payments, if any, accrued thereon, are referred
to herein as the "Deferred Contract Adjustment Payments"). Deferred Contract
Adjustment Payments, if any, shall be due on the next succeeding Payment Date
except to the extent that payment is deferred pursuant to the Purchase Contract
Agreement. No Contract Adjustment Payments may be deferred to a date that is
after the Share Purchase Date and no such deferral period may end other than on
a Payment Date.

            In the event that the Company elects to defer the payment of
Contract Adjustment Payments on the Purchase Contracts until a Payment Date
prior to the Share Purchase Date, then all Deferred Contract Adjustment
Payments, if any, shall be payable to the registered Holders as of the close of
business on the Record Date immediately preceding such Payment Date.

            The Company's obligations with respect to Contract Adjustment
Payments (including any accrued or Deferred Contract Adjustment Payments) will
be Subordinated and junior in right of payment to the Company's obligations
under any Senior indebtedness.

            In the event that the Company elects to defer the payment of
Contract Adjustment Payments on the Purchase Contracts until the Share Purchase
Date, the Holder of this Normal Units Certificate will receive on the Share
Purchase Date, in lieu of a cash payment, a number of Common Shares (in addition
to the number of Common Shares equal to the Settlement Rate) equal to (i) the
aggregate amount of Deferred Contract Adjustment Payments payable to the Holder
of this Normal Units Certificate divided by (ii) the Applicable Market Value.

            In the event the Company exercises its option to defer the payment
of Contract Adjustment Payments, then, until the Deferred Contract Adjustment
Payments have been paid, the Company shall not, and will not permit any
subsidiary of the

                                      A-9
<Page>

Company to, declare or pay dividends on, make distributions with respect to, or
redeem, purchase or acquire, or make a liquidation payment with respect to, any
of the Company's Capital Stock other than (i) purchases, redemptions or
acquisitions of shares of the Company's Capital Stock in connection with any
employment contract, benefit plan or other similar arrangement with or for the
benefit of employees, officers, directors or agents or a stock purchase or
dividend reinvestment plan, or the satisfaction by the Company of its
obligations pursuant to any contract or security outstanding on the date the
Company exercises its rights to defer the Contract Adjustment Payments; (ii) as
a result of a reclassification of the Company's Capital Stock or the exchange or
conversion of one class or series of the Company's Capital Stock for another
class or series of the Company's Capital Stock; (iii) the purchase of fractional
interests in shares of any series of the Company's Capital Stock pursuant to the
conversion or exchange provisions of such Capital Stock or the security being
converted or exchanged; (iv) dividends or distributions in any series of the
Company's Capital Stock (or rights to acquire Capital Stock) or repurchases,
acquisitions or redemptions of the Company's Capital Stock in connection with
the issuance or exchange of any series of the Company's Capital Stock (or
securities convertible into or exchangeable for shares of the Company's Capital
Stock); or (v) redemptions, exchanges or repurchases of any rights outstanding
under a shareholder rights plan or the declaration or payment thereunder of a
dividend or distribution of or with respect to rights in the future.

            The Purchase Contracts and all obligations and rights of the Company
and the Holders thereunder, including, without limitation, the rights of the
Holders to receive accumulated Contract Adjustment Payments, if any, or any
Deferred Contract Adjustment Payments and the obligations of the Holders to
purchase Common Shares, shall immediately and automatically terminate, without
the necessity of any notice or action by any Holder, the Agent or the Company,
if, on or prior to the Share Purchase Date, a Termination Event shall have
occurred. Upon the occurrence of a Termination Event, the Company shall promptly
but in no event later than two Business Days thereafter give written notice to
the Agent, the Collateral Agent and to the Holders, at their addresses as they
appear in the Normal Units Register. Upon and after the occurrence of a
Termination Event, the Collateral Agent shall release the Pledged Notes or
Pledged Treasury Consideration from the Pledge in accordance with the provisions
of the Pledge Agreement.

            Upon registration of transfer of this Normal Units Certificate, the
transferee shall be bound (without the necessity of any other action on the part
of such transferee, except as may be required by the Agent pursuant to the
Purchase Contract Agreement), under the terms of the Purchase Contract
Agreement, the Purchase Contracts evidenced hereby and the Pledge Agreement and
the transferor shall be released from the obligations under the Purchase
Contract Agreement, the Purchase Contracts evidenced by this Normal Units
Certificate and the Pledge Agreement. The Company covenants and agrees, and the
Holder, by its acceptance hereof, likewise covenants and agrees, to be bound by
the provisions of this paragraph.

                                      A-10
<Page>

            The Holder of this Normal Units Certificate, by its acceptance
hereof, irrevocably authorizes the Agent to enter into and perform the related
Purchase Contracts forming part of the Normal Units evidenced hereby on his
behalf as his attorney-in-fact, expressly withholds any consent to the
assumption (i.e., affirmance) of the Purchase Contracts by the Company or its
trustee in the event that the Company becomes the subject of a case under the
Bankruptcy Code, agrees to be bound by the terms and provisions thereof,
covenants and agrees to perform such Holder's obligations under such Purchase
Contracts, consents to the provisions of the Purchase Contract Agreement,
authorizes the Agent to enter into and perform the Pledge Agreement on such
Holder's behalf as attorney-in-fact, and consents to the Pledge of the Notes or
the appropriate Treasury Consideration underlying this Normal Units Certificate
pursuant to the Pledge Agreement. The Holder further covenants and agrees, that,
to the extent and in the manner provided in the Purchase Contract Agreement and
the Pledge Agreement, but subject to the terms thereof, payments in respect of
the Pledged Notes or the Pledged Treasury Consideration to be paid upon
settlement of such Holder's obligations to purchase Common Shares under the
Purchase Contract, shall be paid on the Share Purchase Date by the Collateral
Agent to the Company in satisfaction of such Holder's obligations under such
Purchase Contract and such Holder shall acquire no right, title or interest in
such payments. The obligations of each Holder to pay the Purchase Price are
non-recourse obligations and except to the extent paid by Cash Settlement, Early
Settlement or Merger Early Settlement, are payable solely out of the proceeds of
any Collateral pledged to secure the obligations of the Holders and in no event
will Holders be liable for any deficiency between such payments and the Purchase
Price. Notwithstanding anything to the contrary herein, the Company shall not be
obligated to issue any Common Shares in respect of a Purchase Contract or
deliver any certificates therefor to the Holder of the related Unit unless the
Company shall have received payment in full of the aggregate Purchase Price for
the Common Shares to be purchased thereunder by such Holder in the manner herein
set forth.

            Each Holder of any Unit, and each Beneficial Owner thereof, by its
acceptance thereof or of its interest therein, further agrees to treat (i)
itself as the owner of the related Notes, Treasury Consideration or Treasury
Securities, as the case may be, and (ii) the Notes as indebtedness of Platinum
Underwriters Finance, Inc. in each case, for United States federal, state and
local income and franchise tax purposes.

            Subject to certain exceptions, the provisions of the Purchase
Contract Agreement may be amended with the consent of the Holders of a majority
of the Purchase Contracts.

            The Purchase Contracts shall for all purposes be governed by, and
construed in accordance with, the laws of the State of New York.

            The Company, the Agent and its Affiliates and any agent of the
Company or the Agent may treat the Person in whose name this Normal Units
Certificate is registered as the owner of the Normal Units evidenced hereby
_______ quarterly payments of ____for the purpose of receiving quarterly
payments of interest on the Notes

                                      A-11
<Page>

or the Treasury Consideration, as the case may be, receiving payments of
Contract Adjustment Payments, if any, and any Deferred Contract Adjustment
Payments, performance of the Purchase Contracts and for all other purposes
whatsoever, whether or not any payments in respect thereof be overdue and
notwithstanding any notice to the contrary, and neither the Company, the Agent,
such Affiliates nor any such agent shall be affected by notice to the contrary.

            The Purchase Contracts shall not, prior to the settlement thereof,
entitle the Holder to any of the rights of a holder of Common Shares.

            A copy of the Purchase Contract Agreement is available for
inspection at the offices of the Agent.

                                      A-12
<Page>

                                  ABBREVIATIONS

            The following abbreviations, when used in the inscription on the
face of this instrument, shall be construed as though they were written out in
full according to applicable laws or regulations:

TEN COM -                as tenants in common

UNIF GIFT MIN ACT -      Custodian

                         --------------------------------
                         (cust)                  (minor)

                         Under Uniform Gifts to Minors Act

                         --------------------------------
                                     (State)

TEN ENT -                as tenants by the entireties

JT TEN -                 as joint tenants with right of survivorship and
                         not as tenants in common

Additional abbreviations may also be used though not in the above list.

                                      A-13
<Page>

                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto

-------------------------------------------------------------------------------

-------------------------------------------------------------------------------

(Please insert Social Security or Taxpayer I.D. or other Identifying
Number of Assignee)

-------------------------------------------------------------------------------

-------------------------------------------------------------------------------

-------------------------------------------------------------------------------

(Please Print or Type Name and Address Including Postal Zip Code of Assignee)

the within Normal Units Certificates and all rights thereunder, hereby
irrevocably constituting and appointing ____________________________ attorney to
transfer said Normal Units Certificates on the books of Platinum Underwriters
Holdings, Ltd. with full power of substitution in the premises.

Dated:                        Signature:
       -----------------                 ------------------------------

                                 NOTICE: The signature to this assignment must
                                 correspond with the name as it appears upon the
                                 face of the within Normal Units Certificates in
                                 every particular, without alteration or
                                 enlargement or any change whatsoever.

Signature Guarantee:
                     -------------------------------------------------

                                      A-14
<Page>

                             SETTLEMENT INSTRUCTIONS

            The undersigned Holder directs that a certificate for Common Shares
deliverable upon settlement on or after the Share Purchase Date of the Purchase
Contracts underlying the number of Normal Units evidenced by this Normal Units
Certificate be registered in the name of, and delivered, together with a check
in payment for any fractional share, to the undersigned at the address indicated
below unless a different name and address have been indicated below. If shares
are to be registered in the name of a Person other than the undersigned, the
undersigned will pay any transfer tax payable incident thereto.

Dated:                                Signature:
      ------------------                         ----------------------------
                                      Signature Guarantee:
                                                           ------------------
                                      (if assigned to another person)

If shares are to be registered in       REGISTERED HOLDER
the name of and delivered to a
Person other than the Holder,           Please print name and address of
please (i) print such Person's          Registered Holder:
name and address and (ii) provide
a guarantee of your signature:

------------------------------------    -----------------------------------
               Name                                    Name

------------------------------------    -----------------------------------
              Address                                Address

Social Security or other Taxpayer
Identification Number, if any

                                      A-15
<Page>

                            ELECTION TO SETTLE EARLY

            The undersigned Holder of this Normal Units Certificate hereby
irrevocably exercises the option to effect Early Settlement in accordance with
the terms of the Purchase Contract Agreement with respect to the Purchase
Contracts underlying the number of Normal Units evidenced by this Normal Units
Certificate specified below. The option to effect Early Settlement may be
exercised only with respect to Purchase Contracts underlying Normal Units with
an aggregate Stated Amount equal to $1,000 or an integral multiple thereof. The
undersigned Holder directs that a certificate for Common Shares deliverable upon
such Early Settlement be registered in the name of, and delivered, together with
a check in payment for any fractional share and any Normal Units Certificate
representing any Normal Units evidenced hereby as to which Early Settlement of
the related Purchase Contracts is not effected, to the undersigned at the
address indicated below unless a different name and address have been indicated
below. Pledged Notes or Pledged Treasury Consideration deliverable upon such
Early Settlement will be transferred in accordance with the transfer
instructions set forth below. If Common Shares are to be registered in the name
of a Person other than the undersigned, the undersigned will pay any transfer
tax payable incident thereto.

Dated:                                Signature:
       -----------                               ---------------------------
Signature Guarantee:                  Signature Guarantee:
                     ---------------                       -----------------

            Number of Units evidenced hereby as to which Early Settlement of the
related Purchase Contracts is being elected:

If Common Shares are to be              REGISTERED HOLDER
registered in the name of and
delivered to and Pledged Notes or       Please print name and address of
Pledged Treasury Consideration are      Registered Holder:
to be transferred to a Person
other than the Holder, please
print such Person's name and
address:

------------------------------------    -----------------------------------
               Name                                    Name

------------------------------------    -----------------------------------
              Address                                Address

Social Security or other Taxpayer
Identification Number, if any

Transfer instructions for Pledged Notes or Pledged Treasury Consideration
transferable upon Early Settlement or a Termination Event:

                                      A-16

<Page>

                [TO BE ATTACHED TO GLOBAL CERTIFICATES]

        SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE

            The following increases or decreases in this Global Certificate have
been made:

<Table>
<Caption>
                                              STATED AMOUNT
                  AMOUNT OF      AMOUNT OF    OF THE GLOBAL
                 DECREASE IN    INCREASE IN    CERTIFICATE   SIGNATURE OF
                STATED AMOUNT  STATED AMOUNT    FOLLOWING     AUTHORIZED
                OF THE GLOBAL  OF THE GLOBAL  SUCH DECREASE  SIGNATORY OF
     DATE        CERTIFICATE    CERTIFICATE    OR INCREASE       AGENT
 ------------  --------------  -------------  --------------  -----------
<S>            <C>             <C>            <C>             <C>
</Table>

                                      A-17
<Page>

                                    EXHIBIT B
                       FORM OF STRIPPED UNITS CERTIFICATE
                       (FORM OF GLOBAL CERTIFICATE LEGEND)

            [THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE MEANING OF THE
PURCHASE CONTRACT AGREEMENT (AS HEREINAFTER DEFINED) AND IS REGISTERED IN THE
NAME OF A CLEARING AGENCY OR A NOMINEE THEREOF. THIS CERTIFICATE MAY NOT BE
EXCHANGED IN WHOLE OR IN PART FOR A CERTIFICATE REGISTERED, AND NO TRANSFER OF
THIS CERTIFICATE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY
PERSON OTHER THAN SUCH CLEARING AGENCY OR A NOMINEE THEREOF, EXCEPT IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AGREEMENT.

            Unless this Certificate is presented by an authorized representative
of The Depository Trust Company (55 Water Street, New York, New York) to the
Company or its agent for registration of transfer, exchange or payment, and any
Certificate issued is registered in the name of Cede & Co., or such other name
as requested by an authorized representative of The Depository Trust Company,
and any payment hereon is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL since the registered owner
hereof, Cede & Co., has an interest herein.]

               Form of Face of Stripped Units Certificate

No.                                   CUSIP No.
Number of Stripped Units

            This Stripped Units Certificate certifies that _________ is the
registered Holder of the number of Stripped Units set forth above. Each Stripped
Unit represents (i) a 1/40 undivided beneficial ownership interest in a Treasury
Security, subject to the Pledge of such interest in such Treasury Security by
such Holder pursuant to the Pledge Agreement, and (ii) the rights and
obligations of the Holder under one Purchase Contract with platinum Underwriters
Holdings, Ltd., a Bermuda corporation (the "Company"). All capitalized terms
used herein which are defined in the Purchase Contract Agreement have the
meaning set forth therein.

            Pursuant to the Pledge Agreement, the Treasury Security constituting
part of each Stripped Unit evidenced hereby has been pledged to the Collateral
Agent, for the benefit of the Company, to secure the obligations of the Holder
under the Purchase Contract comprising a part of such Stripped Unit to purchase
Common Shares of the Company. Prior to the purchase of Common Shares under each
Purchase Contract, such Purchase Contracts shall not entitle the Holders of
Normal Units Certificates to any of the rights of a holder of Common Shares,
including without limitation, the right to vote or

                                      B-1
<Page>

receive any dividends or other payments or to consent or to receive notice as
stockholders in respect of the meetings of stockholders, or for the election of
directors of the Company or for any other matter or any other rights whatsoever
as stockholder of the Company.

            Each Purchase Contract evidenced hereby obligates the Holder of this
Stripped Units Certificate to purchase, and the Company to sell, on -, 2005 (the
"Share Purchase Date"), at a price equal to $25 (the "Stated Amount"), a number
of Common Shares, $0.01 par value per share ("Common Shares"), of the Company,
equal to the Settlement Rate, unless on or prior to the Share Purchase Date
there shall have occurred a Termination Event or an Early Settlement or Merger
Early Settlement with respect to the Stripped Units of which such Purchase
Contract is a part, all as provided in the Purchase Contract Agreement and more
fully described on the reverse hereof. The Purchase Price (as defined herein)
for the Common Shares purchased pursuant to each Purchase Contract evidenced
hereby, if not paid earlier, shall be paid on the Share Purchase Date by
application of payments received in respect of the Pledged Treasury Securities
pledged to secure the obligations of the Holder under such Purchase Contract in
accordance with the terms of the Pledge Agreement.

            The Company shall pay on each Payment Date in respect of each
Purchase Contract forming part of a Stripped Unit evidenced hereby an amount
(the "Contract Adjustment Payments") equal to -% per year of the Stated Amount,
computed on the basis of a 360-day year of twelve 30-day months, subject to
deferral at the option of the Company as provided in the Purchase Contract
Agreement and more fully described on the reverse hereof (provided that if on
any date on which Contract Adjustment Payments are to be made on the Purchase
Contracts is not a Business Day, then payment of the Contract Adjustment
Payments payable on that date will be made on the next succeeding day which is a
Business Day, and no interest or payment will be paid in respect of the delay,
except that if such next succeeding Business Day is in the next succeeding
calendar year, such payment will be made on the immediately preceding Business
Day). Such Contract Adjustment Payments shall be payable to the Person in whose
name this Stripped Units Certificate (or a Predecessor Stripped Units
Certificate) is registered at the close of business on the Record Date for such
Payment Date.

            Contract Adjustment Payments will be payable at the office of the
Agent in the City of New York or, at the option of the Company, by check mailed
to the address of the Person entitled thereto as such address appears on the
Normal Units Register.

            Reference is hereby made to the further provisions set forth on the
reverse hereof, which further provisions shall for all purposes have the same
effect as if set forth at this place.

            Unless the certificate of authentication hereon has been executed by
the Agent by manual signature, this Stripped Units Certificate shall not be
entitled to any benefit under the Pledge Agreement or the Purchase Contract
Agreement or be valid or obligatory for any purpose.

                                      B-2
<Page>

            IN WITNESS WHEREOF, the Company has caused this instrument to be
duly executed.

Dated:  ____________

                              PLATINUM UNDERWRITERS HOLDINGS, LTD.

                              By: ____________________________________
                                  Name:
                                  Title:

                              HOLDER SPECIFIED ABOVE (as to obligations
                              of such Holder under the Purchase
                              Contracts evidenced hereby)

                              By: JPMORGAN CHASE BANK, not individually
                                  but solely as Attorney-in-Fact of
                                  such Holder

                                  By:_________________________________
                                     Name:
                                     Title:

                                      B-3
<Page>

            AGENT'S CERTIFICATE OF AUTHENTICATION

            This is one of the Stripped Units Certificates referred to in the
within-mentioned Purchase Contract Agreement.

                                    JPMORGAN CHASE BANK,
                                    as Purchase Contract Agent

                                    By:____________________________
                                       Authorized Officer

                                      B-4
<Page>

            (Form of Reverse of Stripped Units Certificate)

            Each Purchase Contract evidenced hereby is governed by a Purchase
Contract Agreement, dated as of -, 2002 (as may be supplemented from time to
time, the "Purchase Contract Agreement"), between the Company and JPMorgan Chase
Bank, as Purchase Contract Agent (including its successors thereunder, herein
called the "Agent"), to which the Purchase Contract Agreement and supplemental
agreements thereto reference is hereby made for a description of the respective
rights, limitations of rights, obligations, duties and immunities thereunder of
the Agent, the Company and the Holders and of the terms upon which the Stripped
Units Certificates are, and are to be, executed and delivered.

            Each Purchase Contract evidenced hereby obligates the Holder of this
Stripped Units Certificate to purchase, and the Company to sell, on the Share
Purchase Date at a price equal to $25 (the "Purchase Price"), a number of Common
Shares of the Company equal to the Settlement Rate, unless, on or prior to the
Share Purchase Date, there shall have occurred a Termination Event or a Cash
Settlement, an Early Settlement or Merger Early Settlement with respect to the
Unit of which such Purchase Contract is a part. The "Settlement Rate" is equal
to (a) if the Applicable Market Value (as defined below) is equal to or greater
than $- (the "Threshold Appreciation Price"), - Common Shares per Purchase
Contract, (b) if the Applicable Market Value is less than the Threshold
Appreciation Price but is greater than $-, the number of Common Shares per
Purchase Contract equal to the Stated Amount divided by the Applicable Market
Value and (c) if the Applicable Market Value is equal to or less than $-, -
Common Shares per Purchase Contract, in each case subject to adjustment as
provided in the Purchase Contract Agreement. No fractional Common Shares will be
issued upon settlement of Purchase Contracts, as provided in the Purchase
Contract Agreement.

            The "Applicable Market Value" means the average of the Closing Price
per Common Share on each of the 20 consecutive Trading Days ending on the third
Trading Day immediately preceding the Share Purchase Date or in the event of a
Cash Merger, the Cash Merger Date.

            The "Closing Price" of the Common Shares on any date of
determination means the closing sale price (or, if no sale closing price is
reported, the last reported sale price) of the Common Shares on the New York
Stock Exchange (the "NYSE") on such date or, if the Common Shares are not listed
for trading on the NYSE on any such date, as reported in the composite
transactions for the principal United States securities exchange on which the
Common Shares are so listed, or if the Common Shares are not so listed on a
United States national or regional securities exchange, as reported by The
Nasdaq Stock Market, or, if the Common Shares are not so reported, the last
quoted bid price for the Common Shares in the over-the-counter market as
reported by the National Quotation Bureau or similar organization, or, if such
bid price is not available, the market value of the Common Shares on such date
as determined by a nationally recognized independent investment banking firm
retained for this purpose by the Company.

                                      B-5
<Page>

            A "Trading Day" means a day on which the Common Shares (A) are not
suspended from trading on any national or regional securities exchange or
association or over-the-counter market at the close of business and (B) has
traded at least once on the national or regional securities exchange or
association or over-the-counter market that is the primary market for the
trading of the Common Shares at the close of business of such day.

            Each Purchase Contract evidenced hereby may be settled prior to the
Share Purchase Date through Cash Settlement, Early Settlement or Merger Early
Settlement, in accordance with the terms of the Purchase Contract Agreement.

            In accordance with the terms of the Purchase Contract Agreement, the
Holder of this Stripped Units Certificate shall pay the Purchase Price for the
Common Shares purchased pursuant to each Purchase Contract evidenced hereby (i)
by effecting a Cash Settlement, an Early Settlement or Merger Early Settlement
or (ii) by application of payments received in respect of the Pledged Treasury
Securities underlying the Stripped Units represented by this Stripped Units
Certificate.

            The Company shall not be obligated to issue any Common Shares in
respect of a Purchase Contract or deliver any certificates therefor to the
Holder unless it shall have received payment in full of the aggregate Purchase
Price for the Common Shares to be purchased thereunder in the manner herein set
forth.

            The Stripped Units Certificates are issuable only in registered form
and only in denominations of a single Stripped Unit and any integral multiple
thereof. The transfer of any Stripped Units Certificate will be registered and
Stripped Units Certificates may be exchanged as provided in the Purchase
Contract Agreement. The Stripped Units Registrar may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents
permitted by the Purchase Contract Agreement. No service charge shall be
required for any such registration of transfer or exchange of a Stripped Units
Certificate, but the Company and the Agent may require payment from the Holder
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of
Certificates, other than exchanges not involving any transfer as provided for in
the Purchase Contract Agreement. The Holder of a Stripped Unit may substitute
for the Pledged Treasury Securities securing its obligations under the related
Purchase Contract Notes or the appropriate Treasury Consideration in accordance
with the terms of the Purchase Contract Agreement and the Pledge Agreement. From
and after such Collateral Substitution, the Unit for which such Pledged Notes or
Pledged Treasury Consideration secures the Holder's obligation under the
Purchase Contract shall be referred to as a "Normal Unit." A Holder that elects
to substitute Notes or the appropriate Treasury Consideration for Pledged
Treasury Securities, thereby reestablishing Normal Units, shall be responsible
for any fees or expenses payable in connection therewith. Except as provided in
the Purchase Contract Agreement, for so long as the Purchase Contract underlying
a Stripped Unit remains in effect, such Stripped Unit shall not be separable

                                      B-6
<Page>

into its constituent parts, and the rights and obligations of the Holder of such
Stripped Unit in respect of the Pledged Treasury Security and the Purchase
Contract comprising such Stripped Unit may be acquired, and may be transferred
and exchanged, only as a Stripped Unit.

            A Holder of Normal Units may establish Stripped Units at any time
from and after the date of the Purchase Contract Agreement and on or prior to
the second Business Day immediately preceding the Share Purchase Date by
depositing with the Collateral Agent Treasury Securities in exchange for the
release of the Pledged Notes or the appropriate Pledged Treasury Consideration
in accordance with the terms of the Purchase Contract Agreement and the Pledge
Agreement.

            Subject to the next succeeding paragraph, the Company shall pay, on
each Payment Date, the Contract Adjustment Payments, if any, payable in respect
of each Purchase Contract to the Person in whose name the Stripped Units
Certificate (or one or more Predecessor Stripped Units Certificates) evidencing
such Purchase Contract is registered on the Stripped Units Register at the close
of business on the Record Date next preceding such Payment Date. Contract
Adjustment Payments, if any, will be payable at the Corporate Trust Office or,
at the option of the Company, by check mailed to the address of the Person
entitled thereto at such Person's address as it appears on the Stripped Units
Register or by wire transfer to the account designated by such Person in
writing.

            The Company shall have the right, at any time prior to the Share
Purchase Date, to defer the payment of any or all of the Contract Adjustment
Payments otherwise payable on any Payment Date, but only if the Company shall
give the Holders and the Agent written notice of its election to defer each such
Contract Adjustment Payments as provided in the Purchase Contract Agreement. Any
Contract Adjustment Payments so deferred shall, to the extent permitted by law,
accrue additional Contract Adjustment Payments thereon at the rate of -% per
year (computed on the basis of a 360-day year of twelve 30-day months),
compounding on each succeeding Payment Date, until paid in full (such deferred
installments of Contract Adjustment Payments, if any, together with the
additional Contract Adjustment Payments, if any, accrued thereon, are referred
to herein as the "Deferred Contract Adjustment Payments"). Deferred Contract
Adjustment Payments, if any, shall be due on the next succeeding Payment Date
except to the extent that payment is deferred pursuant to the Purchase Contract
Agreement. No Contract Adjustment Payments may be deferred to a date that is
after the Share Purchase Date and no such deferral period may end other than on
a Payment Date.

            In the event that the Company elects to defer the payment of
Contract Adjustment Payments on the Purchase Contracts until a Payment Date
prior to the Share Purchase Date, then all Deferred Contract Adjustment
Payments, if any, shall be payable to the registered Holders as of the close of
business on the Record Date immediately preceding such Payment Date.

                                      B-7
<Page>

            In the event that the Company elects to defer the payment of
Contract Adjustment Payments on the Purchase Contracts until the Share Purchase
Date, the Holder of this Stripped Units Certificate will receive on the Share
Purchase Date, in lieu of a cash payment, a number of Common Shares (in addition
to the number of Common Shares equal to the Settlement Rate) equal to (i) the
aggregate amount of Deferred Contract Adjustment Payments payable to the Holder
of this Stripped Units Certificate divided by (ii) the Applicable Market Value.

            In the event the Company exercises its option to defer the payment
of Contract Adjustment Payments, then, until the Deferred Contract Adjustment
Payments have been paid, the Company shall not, and will not permit any
subsidiary of the Company to, declare or pay dividends on, make distributions
with respect to, or redeem, purchase or acquire, or make a liquidation payment
with respect to, any of the Company's Capital Stock other than (i) purchases,
redemptions or acquisitions of shares of the Company's Capital Stock in
connection with any employment contract, benefit plan or other similar
arrangement with or for the benefit of employees, officers, directors or agents
or a stock purchase or dividend reinvestment plan, or the satisfaction by the
Company of its obligations pursuant to any contract or security outstanding on
the date the Company exercises its rights to defer the Contract Adjustment
Payments; (ii) as a result of a reclassification of the Company's Capital Stock
or the exchange or conversion of one class or series of the Company's Capital
Stock for another class or series of the Company's Capital Stock; (iii) the
purchase of fractional interests in shares of the Company's Capital Stock
pursuant to the conversion or exchange provisions of such Capital Stock or the
security being converted or exchanged; (iv) dividends or distributions in any
series of the Company's Capital Stock (or rights to acquire Capital Stock) or
repurchases, acquisitions or redemptions of the Company's Capital Stock in
connection with the issuance or exchange of any series of the Company's Capital
Stock (or securities convertible into or exchangeable for shares of the
Company's Capital Stock); or (v) redemptions, exchanges or repurchases of any
rights outstanding under a shareholder rights plan or the declaration or payment
thereunder of a dividend or distribution of or with respect to rights in the
future.
            The Purchase Contracts and all obligations and rights of the Company
and the Holders thereunder, including, without limitation, the rights of the
Holders to receive accumulated Contract Adjustment Payments, if any, or any
Deferred Contract Adjustment Payments, and the obligations of the Holders to
purchase Common Shares, shall immediately and automatically terminate, without
the necessity of any notice or action by any Holder, the Agent or the Company,
if, on or prior to the Share Purchase Date, a Termination Event shall have
occurred. Upon the occurrence of a Termination Event, the Company shall promptly
but in no event later than two business days thereafter give written notice to
the Agent, the Collateral Agent and to the Holders, at their addresses as they
appear in the Stripped Units Register. Upon and after the occurrence of a
Termination Event, the Collateral Agent shall release the Pledged Treasury
Securities from the Pledge in accordance with the provisions of the Pledge
Agreement.

                                      B-8
<Page>

            Upon registration of transfer of this Stripped Units Certificate,
the transferee shall be bound (without the necessity of any other action on the
part of such transferee, except as may be required by the Agent pursuant to the
Purchase Contract Agreement), under the terms of the Purchase Contract
Agreement, the Purchase Contracts evidenced hereby and the Pledge Agreement and
the transferor shall be released from the obligations under the Purchase
Contract Agreement, the Purchase Contracts evidenced by this Stripped Units
Certificate and the Pledge Agreement. The Company covenants and agrees, and the
Holder, by his acceptance hereof, likewise covenants and agrees, to be bound by
the provisions of this paragraph.

            The Holder of this Stripped Units Certificate, by its acceptance
hereof, irrevocably authorizes the Agent to enter into and perform the related
Purchase Contracts forming part of the Stripped Units evidenced hereby on his
behalf as its attorney-in-fact, expressly withholds any consent to the
assumption (i.e., affirmance) of the Purchase Contracts by the Company or its
trustee in the event that the Company becomes the subject of a case under the
Bankruptcy Code, agrees to be bound by the terms and provisions thereof,
covenants and agrees to perform such Holder's obligations under such Purchase
Contracts, consents to the provisions of the Purchase Contract Agreement,
authorizes the Agent to enter into and perform the Pledge Agreement on such
Holder's behalf as attorney-in-fact, and consents to the Pledge of the Treasury
Securities underlying this Stripped Units Certificate pursuant to the Pledge
Agreement. The Holder further covenants and agrees, that, to the extent and in
the manner provided in the Purchase Contract Agreement and the Pledge Agreement,
but subject to the terms thereof, payments in respect of the Pledged Treasury
Securities, to be paid upon settlement of such Holder's obligations to purchase
Common Shares under the Purchase Contract, shall be paid on the Share Purchase
Date by the Collateral Agent to the Company in satisfaction of such Holder's
obligations under such Purchase Contract and such Holder shall acquire no right,
title or interest in such payments. The obligations of each Holder to pay the
Purchase Price are non-recourse obligations and except to the extent paid by
Early Settlement or Merger Early Settlement, are payable solely out of the
proceeds of any Collateral pledged to secure the obligations of the Holders and
in no event will Holders be liable for any deficiency between such payments and
the Purchase Price.

            Each Holder of any Unit, and each Beneficial Owner thereof, by its
acceptance thereof or of its interest therein, further agrees to treat (i)
itself as the owner of the related Notes, Treasury Consideration or Treasury
Securities, as the case may be, and (ii) the Notes as indebtedness of the
Platinum Underwriters Finance, Inc., in each case, for United States federal,
state and local income and franchise tax purposes.

            Subject to certain exceptions, the provisions of the Purchase
Contract Agreement may be amended with the consent of the Holders of a majority
of the Purchase Contracts.

                                      B-9
<Page>

            The Purchase Contracts shall for all purposes be governed by and
deemed to be a contract under, and construed in accordance with, the laws of the
State of New York, without regard to conflicts of laws principles thereof.

            The Company, the Agent and its Affiliates and any agent of the
Company or the Agent may treat the Person in whose name this Stripped Units
Certificate is registered as the owner of the Stripped Units evidenced hereby
for the purpose of receiving any Contract Adjustment Payments, if any, and any
Deferred Contract Adjustment Payments performance of the Purchase Contracts and
for all other purposes whatsoever, whether or not any payments in respect
thereof be overdue and notwithstanding any notice to the contrary, and neither
the Company, the Agent, such Affiliate, nor any such agent shall be affected by
notice to the contrary.

            The Purchase Contracts shall not, prior to the settlement thereof,
entitle the Holder to any of the rights of a holder of Common Shares.

            A copy of the Purchase Contract Agreement is available for
inspection at the offices of the Agent.

                                      B-10
<Page>

                                  ABBREVIATIONS

            The following abbreviations, when used in the inscription on the
face of this instrument, shall be construed as though they were written out in
full according to applicable laws or regulations:

TEN COM -                as tenants in common

UNIF GIFT MIN ACT -      Custodian

                         --------------------------------
                         (cust)                  (minor)

                         Under Uniform Gifts to Minors Act

                         --------------------------------
                                     (State)

TEN ENT -                as tenants by the entireties

JT TEN -                 as joint tenants with right of survivorship and
                         not as tenants in common

Additional abbreviations may also be used though not in the above list.

                                      B-11
<Page>

                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto

-----------------------------------------------------------------------

-----------------------------------------------------------------------

(Please insert Social Security or Taxpayer I.D. or other Identifying
Number of Assignee)

-----------------------------------------------------------------------

-----------------------------------------------------------------------

(Please Print or Type Name and Address Including Postal Zip Code of
Assignee)

the within Stripped Units Certificates and all rights thereunder, hereby
irrevocably constituting and appointing ____________________________ attorney to
transfer said Stripped Units Certificates on the books of Platinum Underwriters
Holdings, Ltd. with full power of substitution in the premises.

Dated:                             Signature:
       -----------------                      -------------------------

                                   NOTICE: The signature to this assignment must
                                   correspond with the name as it appears upon
                                   the face of the within Stripped Units
                                   Certificates in every particular, without
                                   alteration or enlargement or any change
                                   whatsoever.

Signature Guarantee:
                     --------------------------------------------------

                                      B-12
<Page>

                             SETTLEMENT INSTRUCTIONS

            The undersigned Holder directs that a certificate for Common Shares
deliverable upon settlement on or after the Share Purchase Date of the Purchase
Contracts underlying the number of Stripped Units evidenced by this Stripped
Units Certificate be registered in the name of, and delivered, together with a
check in payment for any fractional share, to the undersigned at the address
indicated below unless a different name and address have been indicated below.
If shares are to be registered in the name of a Person other than the
undersigned, the undersigned will pay any transfer tax payable incident thereto.

Dated:                                Signature:
       --------------                            ------------------------------
                                      Signature Guarantee:
                                                           --------------------
                                      (if assigned to another person)

If shares are to be registered in        REGISTERED HOLDER
the name of and delivered to a
Person other than the Holder,            Please print name and address of
please (i) print such Person's           Registered Holder:
name and address and (ii) provide
a guarantee of your signature:

------------------------------------    -----------------------------------
               Name                                    Name

------------------------------------    -----------------------------------
              Address                                Address

Social Security or other Taxpayer
Identification Number, if any

                                      B-13
<Page>

                            ELECTION TO SETTLE EARLY

            The undersigned Holder of this Stripped Units Certificate hereby
irrevocably exercises the option to effect Early Settlement in accordance with
the terms of the Purchase Contract Agreement with respect to the Purchase
Contracts underlying the number of Stripped Units evidenced by this Stripped
Units Certificate specified below. The option to effect Early Settlement may be
exercised only with respect to Purchase Contracts underlying Stripped Units with
an aggregate Stated Amount equal to $1,000 or an integral multiple thereof. The
undersigned Holder directs that a certificate for Common Shares deliverable upon
such Early Settlement be registered in the name of, and delivered, together with
a check in payment for any fractional share and any Stripped Units Certificate
representing any Stripped Units evidenced hereby as to which Early Settlement of
the related Purchase Contracts is not effected, to the undersigned at the
address indicated below unless a different name and address have been indicated
below. Pledged Treasury Securities deliverable upon such Early Settlement will
be transferred in accordance with the transfer instructions set forth below. If
shares are to be registered in the name of a Person other than the undersigned,
the undersigned will pay any transfer tax payable incident thereto.

Dated:                              Signature:
       -----------                             ------------------------------
                                    Signature Guarantee:
                                                         --------------------

            Number of Units evidenced hereby as to which Early Settlement of the
related Purchase Contracts is being elected:

If Common Shares are to be in           REGISTERED HOLDER
the name of and delivered to
and Pledged Treasury Securities         Please print name and address of
are to be transferred to a Person       Registered Holder:
other than the Holder, please
print such Person's name and
address:

------------------------------------    -----------------------------------
               Name                                    Name

------------------------------------    -----------------------------------
              Address                                Address

Social Security or other Taxpayer
Identification Number, if any

Transfer instructions for Pledged Treasury Securities, transferable upon Early
Settlement or a Termination Event:

                                      B-14
<Page>

                [TO BE ATTACHED TO GLOBAL CERTIFICATES]

        SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE

            The following increases or decreases in this Global Certificate have
been made:

<Table>
<Caption>
                                              STATED AMOUNT
                  AMOUNT OF      AMOUNT OF    OF THE GLOBAL
                 DECREASE IN    INCREASE IN    CERTIFICATE   SIGNATURE OF
                STATED AMOUNT  STATED AMOUNT    FOLLOWING     AUTHORIZED
                OF THE GLOBAL  OF THE GLOBAL  SUCH DECREASE   OFFICER OF
     DATE        CERTIFICATE    CERTIFICATE    OR INCREASE       AGENT
 -----------  ---------------  -------------  -------------  -------------
<S>           <C>              <C>            <C>            <C>
</Table>

                                      B-15
<Page>

                                    EXHIBIT C

                   INSTRUCTION FROM PURCHASE CONTRACT AGENT TO
                                COLLATERAL AGENT

State Street Bank
-
-
-

Attention: -

            Re:   Equity Security Units of Platinum Underwriters
                  HOLDINGS, LTD.  (THE "COMPANY")

            We hereby notify you in accordance with Section 4.1 of the Pledge
Agreement, dated as of -, 2002, among the Company, you, as Collateral Agent,
Custodial Agent and Securities Intermediary, and us, as Purchase Contract Agent
and as attorney-in-fact for the holders of [Normal Units] [Stripped Units] from
time to time, that the holder of securities listed below (the "Holder") has
elected to substitute [$ _______ aggregate principal amount of Treasury
Securities (CUSIP No. _____)] [$_______ principal amount of Notes or the
appropriate Treasury Consideration, as the case may be,] in exchange for the
related [Pledged Notes or Pledged Treasury Consideration] [Pledged Treasury
Securities (CUSIP No. ____),] held by you in accordance with the Pledge
Agreement and has delivered to us a notice stating that the Holder has
transferred [Treasury Securities] [Notes or the appropriate Treasury
Consideration] to you, as Collateral Agent. We hereby instruct you, upon receipt
of such [Pledged Treasury Securities] [Pledged Notes or Pledged Treasury
Consideration], and upon the payment by such Holder of any applicable fees, to
release the [Notes or Treasury Consideration, as the case may be,] [Treasury
Securities] related to such [Normal Units] [Stripped Units] to us in accordance
with the Holder's instructions.

Date:
      -----------------

                              JPMORGAN CHASE BANK, As Purchase Contract Agent
                              under the Purchase Contract Agreement, dated as of
                              -, 2002, between the Company and the Purchase
                              Contract Agent

                              By:
                                  -----------------------------------
                                  Name:
                                  Title:

                                      C-1
<Page>

Please print name and address of Registered Holder electing to substitute
[Treasury Securities] [Notes or Treasury Consideration, as the case may be,] for
the [Pledged Notes or Pledged Treasury Consideration, as the case may be,]
[Pledged Treasury Securities]:

      Name

      Address

Social Security or other Taxpayer
Identification Number, if any

                                      C-2
<Page>

                                    EXHIBIT D

                 INSTRUCTION TO PURCHASE CONTRACT AGENT

JPMorgan Chase Bank
450 West 33rd Street
New York, New York 10001

Attn: Institutional Trust Services

            Re:   Equity Security Units of Platinum Underwriters
                  Holdings, Ltd. (The "Company")
                  -----------------------------------------------

            The undersigned Holder hereby notifies you, as Purchase Contract
Agent under the Purchase Contract Agreement, dated as of -, 2002, between the
Company and you, that it has delivered to State Street Bank, as Collateral
Agent, Custodial Agent and Securities Intermediary [$_________ aggregate
principal amount of Treasury Securities] [$_________ principal amount of Notes
or the appropriate Treasury Consideration, as the case may be,] in exchange for
the related [Pledged Notes or Pledged Treasury Consideration, as the case may
be,] [Pledged Treasury Securities] held by the Collateral Agent, in accordance
with Section 4.1 of the Pledge Agreement, dated as of -, 2002, among you, the
Company and the Collateral Agent. The undersigned Holder has paid the Collateral
Agent all applicable fees relating to such exchange. The undersigned Holder
hereby instructs you to instruct the Collateral Agent to release to you on
behalf of the undersigned Holder the [Pledged Notes or Pledged Treasury
Consideration, as the case may be,] [Pledged Treasury Securities] related to
such [Normal Units] [Stripped Units].

Date:
                                      By:
                                         -------------------------------------

                                      Signature Guarantee:
                                                          --------------------
Dated:

Please print name and address of Registered Holder:

Name                                  Social Security or other Taxpayer
                                      Identification Number, if any

Address<Page>

                                                                    EXHIBIT 4.5

                      PLATINUM UNDERWRITERS HOLDINGS, LTD.

                                STATE STREET BANK

                      AS COLLATERAL AGENT, CUSTODIAL AGENT

                           AND SECURITIES INTERMEDIARY

                                       AND

                               JPMORGAN CHASE BANK

                           AS PURCHASE CONTRACT AGENT

                            FORM OF PLEDGE AGREEMENT

                               DATED AS OF -, 2002

<Page>

                                TABLE OF CONTENTS

                                    ARTICLE I
                                   DEFINITIONS
<Table>

<S>                                                                                                      <C>

     SECTION 1.1           Definitions...................................................................2

                                   ARTICLE II
                         PLEDGE; CONTROL AND PERFECTION

     SECTION 2.1           The Pledge....................................................................4
     SECTION 2.2           Control and Perfection........................................................6

                                   ARTICLE III
                             PAYMENTS ON COLLATERAL

     SECTION 3.1           Payments......................................................................8
     SECTION 3.2           Application of Payments.......................................................9

                                   ARTICLE IV
                         SUBSTITUTION, RELEASE, REPLEDGE AND SETTLEMENT OF NOTES

     SECTION 4.1           Collateral Substitution and the Creation of Stripped Units....................9
     SECTION 4.2           Collateral Substitution and the Re-Creation of Normal Units..................10
     SECTION 4.3           Termination Event............................................................10
     SECTION 4.4           Early Settlement; Merger Early Settlement; Cash Settlement...................11
     SECTION 4.5           Remarketing; Application of Proceeds; Settlement.............................12

                                    ARTICLE V
                             VOTING RIGHTS -- NOTES

     SECTION 5.1           Exercise by Purchase Contract Agent..........................................14

                                   ARTICLE VI
                    RIGHTS AND REMEDIES; TAX EVENT REDEMPTION

     SECTION 6.1           Rights and Remedies of the Collateral Agent..................................15
     SECTION 6.2           Substitutions................................................................16
     SECTION 6.3           Tax Event Redemption.........................................................16

                                   ARTICLE VII
                    REPRESENTATIONS AND WARRANTIES; COVENANTS

     SECTION 7.1           Representations and Warranties of the Holders................................17
     SECTION 7.2           Representations and Warranties of the Collateral Agent,
                           Custodial Agent and Securities Intermediary..................................17
     SECTION 7.3           Covenants....................................................................18

<Page>

                                  ARTICLE VIII
                              THE COLLATERAL AGENT

     SECTION 8.1           Appointment, Powers and Immunities...........................................18
     SECTION 8.2           Instructions of the Company..................................................20
     SECTION 8.3           Reliance.....................................................................20
     SECTION 8.4           Rights in Other Capacities...................................................20
     SECTION 8.5           Non-Reliance on Collateral Agent.............................................21
     SECTION 8.6           Compensation and Indemnity...................................................21
     SECTION 8.7           Failure to Act...............................................................22
     SECTION 8.8           Resignation..................................................................22
     SECTION 8.9           Right to Appoint Agent or Advisor............................................24
     SECTION 8.10          Survival.....................................................................24
     SECTION 8.11          Exculpation..................................................................24

                                   ARTICLE IX
                                    AMENDMENT

     SECTION 9.1           Amendment Without Consent of Holders.........................................24
     SECTION 9.2           Amendment with Consent of Holders............................................25
     SECTION 9.3           Execution of Amendments......................................................26
     SECTION 9.4           Effect of Amendments.........................................................26
     SECTION 9.5           Reference to Amendments......................................................26

                                    ARTICLE X
                                  MISCELLANEOUS

     SECTION 10.1          No Waiver....................................................................26
     SECTION 10.2          GOVERNING LAW................................................................27
     SECTION 10.3          Notices......................................................................27
     SECTION 10.4          Successors and Assigns.......................................................27
     SECTION 10.5          Counterparts.................................................................28
     SECTION 10.6          Severability.................................................................28
     SECTION 10.7          Expenses, Etc................................................................28
     SECTION 10.8          Security Interest Absolute...................................................28
     SECTION 10.9          Waiver of Jury Trial.........................................................29
</Table>

EXHIBIT A         Instruction from Purchase Contract Agent to Collateral Agent

EXHIBIT B         Instruction to Purchase Contract Agent

EXHIBIT C         Instruction to Custodial Agent Regarding Remarketing

EXHIBIT D         Instruction to Custodial Agent Regarding Withdrawal from
                  Remarketing

<Page>

                                PLEDGE AGREEMENT

      PLEDGE AGREEMENT, dated as of -, 2002 (this "Agreement"), among Platinum
Underwriters Limited, Ltd., a Bermuda corporation (the "Company"), State Street
Bank, -, not individually but solely as collateral agent (in such capacity,
together with its successors in such capacity, the "Collateral Agent"), as
custodial agent (in such capacity, together with its successors in such
capacity, the "Custodial Agent") and as "securities intermediary" as defined in
Section 8-102(a)(14) of the Code (as defined herein) (in such capacity, together
with its successors in such capacity, the "Securities Intermediary"), and
JPMorgan Chase Bank, a New York banking corporation, not individually but solely
as purchase contract agent and as attorney-in-fact of the Holders from time to
time of the Units (in such capacity, together with its successors in such
capacity, the "Purchase Contract Agent") under the Purchase Contract Agreement
(as defined herein). Terms used but not otherwise defined herein have the
meanings ascribed to them in the Purchase Contract Agreement.

                                    RECITALS

      WHEREAS, the Company and the Purchase Contract Agent are parties to the
Purchase Contract Agreement, dated as of the date hereof (as modified and
supplemented and in effect from time to time, the "Purchase Contract
Agreement"), pursuant to which there may be issued Units having a Stated Amount
of $25 per Unit, all of which will initially be Normal Units.

      WHEREAS, each Normal Unit will be comprised of (a) a Purchase Contract and
(b) either beneficial ownership of (i) a 1/40, or 2.5%, ownership interest in a
Note having a $1,000 principal amount or (ii) following the remarketing of the
Notes in accordance with the Purchase Contract Agreement and the Remarketing
Agreement or a Tax Event Redemption in accordance with the Purchase Contract
Agreement and the terms of the Notes, the appropriate Treasury Consideration.

      WHEREAS, in accordance with the terms of the Purchase Contract Agreement,
a holder of Normal Units may separate the Notes or the appropriate Treasury
Consideration, as applicable, from the related Purchase Contracts by
substituting for such Notes or the appropriate Treasury Consideration, as the
case may be, Treasury Securities that will pay in the aggregate an amount equal
to the aggregate Stated Amount of such Normal Units. Upon such separation, the
Normal Units will become Stripped Units. Each Stripped Unit will be comprised of
(a) a Purchase Contract and (b) a 1/40 undivided beneficial interest in a
Treasury Security.

      WHEREAS, pursuant to the terms of the Purchase Contract Agreement and the
Purchase Contracts, the Holders, from time to time, of the Units have
irrevocably authorized the Purchase Contract Agent, as attorney-in-fact of such
Holders, among other things, to execute and deliver this Agreement on behalf of
such Holders and to grant the pledge provided hereby of the Notes, any Treasury
Consideration and any Treasury

<Page>

Securities delivered in exchange therefor to secure each Holder's obligations
under the related Purchase Contract, as provided herein and subject to the terms
hereof.

         NOW, THEREFORE, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Company, the
Collateral Agent, the Securities Intermediary, the Custodial Agent and the
Purchase Contract Agent, on its own behalf and as attorney-in-fact of the
Holders from time to time of the Units, agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         SECTION 1.1  Definitions

      For all purposes of this agreement, except as otherwise expressly provided
or unless the context otherwise requires:

      (a) capitalized terms used but not defined herein are used as defined in
  the Purchase Contract Agreement;

      (b)   the defined terms in this Agreement have the meanings assigned to
  them in this Article and include the plural as well as the singular; and

      (c)   the words "herein," "hereof" and "hereunder" and other words of
  similar import refer to this Agreement as a whole and not to any
  particular Article, Section or other subdivision.

      "Agreement" means this agreement as originally executed or as it may from
time to time be supplemented or amended by one or more agreements supplemental
hereto entered into pursuant to the applicable provisions hereof.

      "Code" has the meaning specified in Section 6.1 hereof.

      "Collateral" has the meaning specified in Section 2.1 hereof.

      "Collateral Account" means the securities account (number -) maintained at
- in the name "JPMorgan Chase Bank, as Purchase Contract Agent on behalf of the
holders of certain securities of Platinum Underwriters Holdings, Ltd.,
Collateral Account subject to the security interest of State Street Bank, as
Collateral Agent, for the benefit of Platinum Underwriters Holdings, Ltd., as
pledgee" and any successor account.

      "Collateral Agent" has the meaning specified in the first paragraph of
this Agreement.

                                      -2-

<Page>

      "Company" means the Person named as the "Company" in the first paragraph
of this Agreement until a successor shall have become such, and thereafter
"Company" shall mean such successor.

      "Custodial Agent" has the meaning specified in the first paragraph of this
Agreement.

      "Intermediary" means any entity that in the ordinary course of its
business maintains securities accounts for others and is acting in that
capacity.

      "Pledge" has the meaning specified in Section 2.1 hereof.

      "Pledged Notes" has the meaning specified in Section 2.1 hereof.

      "Pledged Treasury Consideration" has the meaning specified in Section 2.1
hereof.

      "Pledged Treasury Securities" has the meaning specified in Section 2.1
hereof.

      "Proceeds" means all interest, dividends, cash, instruments, securities,
financial assets (as defined in Section 8-102(a)(9) of the Code) and other
property from time to time received, receivable or otherwise distributed upon
the sale, exchange, collection or disposition of the Collateral or any proceeds
thereof.

      "Purchase Contract Agent" has the meaning specified in the first paragraph
of this Agreement.

      "Purchase Contract Agreement" has the meaning specified in the Recitals.

      "Securities Intermediary" has the meaning specified in the first paragraph
of this Agreement.

      "Security Entitlement" has the meaning set forth in Section 8-102(a) (17)
of the Code.

      "Separate Notes" means any Notes that are not Pledged Notes.

      "TRADES Regulations" means the regulations of the United States Department
of the Treasury, published at 31 C.F.R. Part 357, as amended from time to time.
Unless otherwise defined herein, all terms defined in the TRADES Regulations are
used herein as therein defined.

      "Transfer" means, with respect to the Collateral and in accordance with
the instructions of the Collateral Agent, the Purchase Contract Agent or the
Holder, as applicable:

                                      -3-

<Page>

      (i)   in the case of Collateral consisting of securities which cannot be
            delivered by book-entry or which the parties agree are to be
            delivered in physical form, delivery in appropriate physical form to
            the recipient accompanied by any duly executed instruments of
            transfer, assignments in blank, transfer tax stamps and any other
            documents necessary to constitute a legally valid transfer to the
            recipient;

      (ii)  in the case of Collateral consisting of securities maintained in
            book-entry form by causing a "securities intermediary" (as defined
            in Section 8-102(a)(14) of the Code) to (a) credit a "security
            entitlement" (as defined in Section 8-102(a)(17) of the Code) with
            respect to such securities to a "securities account" (as defined in
            Section 8-501(a) of the Code) maintained by or on behalf of the
            recipient and (b) to issue a confirmation to the recipient with
            respect to such credit. In the case of Collateral to be delivered to
            the Collateral Agent, the securities intermediary shall be the
            Securities Intermediary and the securities account shall be the
            Collateral Account. In addition, any Transfer of Treasury Securities
            and Treasury Consideration hereunder shall be made in accordance
            with the TRADES Regulations and other applicable law.

                                   ARTICLE II

                  Pledge; Control and Perfection

      SECTION 2.1 The Pledge

      (a)   The Holders from time to time acting through the Purchase Contract
Agent, as their attorney-in-fact, and the Purchase Contract Agent, as such
attorney-in-fact, hereby pledge and grant to the Collateral Agent, for the
benefit of the Company, as collateral security for the performance when due by
such Holders of their respective obligations under the related Purchase
Contracts, a security interest in all of the right, title and interest of the
Purchase Contract Agent and such Holders in:

      (i)   (A) the Notes, Treasury Consideration or Treasury Securities
            constituting a part of the Units, (B) any Treasury Securities
            delivered in exchange for any Notes or Treasury Consideration, as
            applicable, in accordance with Section 4.1 hereof, and (C) any Notes
            or Treasury Consideration, as applicable, delivered in exchange for
            any Treasury Securities in accordance with Section 4.2 hereof, in
            each case that have been Transferred to or otherwise received by the
            Collateral Agent and not released by the Collateral Agent to such
            Holders under the provisions of this Agreement;

                                      -4-

<Page>

      (ii)  the Collateral Account and all securities, financial assets,
            security entitlements, cash and other property credited thereto and
            all Security Entitlements related thereto; and

      (iii) all Proceeds of the foregoing (all of the foregoing, collectively,
            the "Collateral").

      (b)   Prior to or concurrently with the execution and delivery of this
Agreement, the Purchase Contract Agent, on behalf of the initial Holders of the
Units, shall cause the Notes comprising a part of the Normal Units to be
Transferred to the Collateral Agent for the benefit of the Company.

      (c)   The pledge provided in this Section 2.1 is herein referred to as the
"Pledge" and the Notes (including any Notes that are delivered pursuant to
Section 6.2 hereof), Treasury Consideration and Treasury Securities subject to
the Pledge, excluding any Notes, Treasury Consideration or Treasury Securities
released from the Pledge as provided in Sections 4.1 and 4.2 hereof,
respectively, are hereinafter referred to as "Pledged Notes," "Pledged Treasury
Consideration" and "Pledged Treasury Securities," respectively. Subject to the
Pledge and the provisions of Section 2.2 hereof, the Holders from time to time
shall have full beneficial ownership of the Collateral. For purposes of
perfecting the Pledge under applicable law, including, to the extent applicable,
the TRADES Regulations or the Uniform Commercial Code as adopted and in effect
in any applicable jurisdiction, the Collateral Agent shall be the agent of the
Company as provided herein. Whenever directed by the Collateral Agent acting on
behalf of the Company, the Securities Intermediary shall have the right to
reregister the Notes or any other securities held in physical form in its name.

      (d)   Except as may be required in order to release Notes or Treasury
Consideration, as applicable, in connection with a Tax Event Redemption or with
a Holder's election to convert its investment from a Normal Unit to a Stripped
Unit, or except as otherwise required to release Notes as specified herein,
neither the Collateral Agent, the Custodial Agent nor the Securities
Intermediary shall relinquish physical possession of any certificate evidencing
Notes, Treasury Securities or Treasury Consideration, as applicable, prior to
the termination of this Agreement. If it becomes necessary for the Securities
Intermediary to relinquish physical possession of a certificate in order to
release a portion of the Notes evidenced thereby from the Pledge, the Securities
Intermediary shall use its best efforts to obtain physical possession of a
replacement certificate evidencing any Notes remaining subject to the Pledge
hereunder registered to it or endorsed in blank within fifteen days of the date
it relinquished possession. The Securities Intermediary shall promptly notify
the Company and the Collateral Agent of the Securities Intermediary's inability
to obtain possession of any such replacement certificate as required hereby.

                                      -5-

<Page>

         SECTION 2.2  Control and Perfection

      (a)   In connection with the Pledge granted in Section 2.1, and subject to
the other provisions of this Agreement, the Holders from time to time acting
through the Purchase Contract Agent, as their attorney-in-fact, hereby authorize
and direct the Securities Intermediary (without the necessity of obtaining the
further consent of the Purchase Contract Agent or any of the Holders), and the
Securities Intermediary agrees, to comply with and follow any instructions and
entitlement orders (as defined in Section 8-102(a)(8) of the Code) that the
Collateral Agent may deliver upon the written direction of the Company with
respect to the Collateral Account, the Collateral credited thereto and any
Security Entitlements with respect to any thereof. In the event the Securities
Intermediary receives from the Holders or the Purchase Contract Agent
entitlement orders which conflict with entitlement orders received from the
Collateral Agent, the Securities Intermediary shall follow the entitlement
orders received from the Collateral Agent. Such instructions and entitlement
orders may, without limitation, direct the Securities Intermediary to transfer,
redeem, assign, or otherwise deliver the Notes, the Treasury Consideration and
the Treasury Securities, and any Security Entitlements with respect thereto or
sell, liquidate or dispose of such assets through a broker designated by the
Company, and to pay and deliver any income, proceeds or other funds derived
therefrom to the Company. The Holders from time to time acting through the
Purchase Contract Agent hereby further authorize and direct the Collateral
Agent, as agent of the Company, to, upon written direction of the Company,
itself issue instructions and entitlement orders, and to otherwise take action,
with respect to the Collateral Account, the Collateral credited thereto and any
Security Entitlements with respect thereto, pursuant to the terms and provisions
hereof, all without the necessity of obtaining the further consent of the
Purchase Contract Agent or any of the Holders. The Collateral Agent shall be the
agent of the Company and shall act only in accordance with the terms hereof or
as otherwise directed in writing by the Company. Without limiting the generality
of the foregoing, the Collateral Agent shall issue entitlement orders to the
Securities Intermediary when and as required by the terms hereof or as otherwise
directed in writing by the Company.

      (b)   The Securities Intermediary hereby confirms and agrees that:

      (i)   all securities or other property underlying any financial assets
            credited to the Collateral Account shall be registered in the name
            of the Securities Intermediary, or its nominee, indorsed to the
            Securities Intermediary, or its nominee, or in blank or credited to
            another Collateral Account maintained in the name of the Securities
            Intermediary and in no case will any financial asset credited to the
            Collateral Account be registered in the name of the Purchase
            Contract Agent, the Collateral Agent, the Company or any Holder,
            payable to the order of, or specially indorsed to, the Purchase
            Contract Agent, the Collateral Agent, the Company or any Holder
            except to the extent the foregoing have been specially indorsed to
            the Securities Intermediary or in blank;

                                      -6-

<Page>

      (ii)  all property delivered to the Securities Intermediary pursuant to
            this Agreement (including, without limitation, any Notes, Treasury
            Consideration or Treasury Securities) will be promptly credited to
            the Collateral Account;

      (iii) the Collateral Account is an account to which financial assets are
            or may be credited, and the Securities Intermediary shall, subject
            to the terms of this Agreement, treat the Purchase Contract Agent as
            entitled to exercise the rights of any financial asset credited to
            the Collateral Account;

      (iv)  the Securities Intermediary has not entered into, and until the
            termination of this Agreement will not enter into, any agreement
            with any other Person relating to the Collateral Account and/or any
            financial assets credited thereto pursuant to which it has agreed to
            comply with entitlement orders (as defined in Section 8-102(a)(8) of
            the Code) of such other Person; and

      (v)   the Securities Intermediary has not entered into, and until the
            termination of this Agreement will not enter into, any agreement
            with the Company, the Collateral Agent or the Purchase Contract
            Agent purporting to limit or condition the obligation of the
            Securities Intermediary to comply with entitlement orders as set
            forth in this Section 2.2 hereof.

      (c)   The Securities Intermediary hereby agrees that each item of property
(whether investment property, financial asset, security, instrument or cash)
credited to the Collateral Account shall be treated as a "financial asset"
within the meaning of Section 8-102(a)(9) of the Code.

      (d)   In the event of any conflict between this Agreement (or any portion
thereof) and any other agreement now existing or hereafter entered into, the
terms of this Agreement shall prevail.

      (e)   The Purchase Contract Agent hereby irrevocably constitutes and
appoints the Collateral Agent and the Company, with full power of substitution,
as the Purchase Contract Agent's attorney-in-fact to take on behalf of, and in
the name, place and stead of the Purchase Contract Agent and the Holders, any
action necessary or desirable to perfect and to keep perfected the security
interest in the Collateral referred to in Section 2.1. The grant of such
power-of-attorney shall not be deemed to require of the Collateral Agent any
specific duties or obligations not otherwise assumed by the Collateral Agent
hereunder. Notwithstanding the foregoing, in no event shall the Collateral Agent
or Securities Intermediary be responsible for the preparation or filing of any
financing or continuation statements in the appropriate jurisdictions or
responsible for maintenance or perfection of any Security Interest hereunder.

                                      -7-

<Page>

                                   ARTICLE III

                             PAYMENTS on Collateral

         SECTION 3.1  Payments

         So long as the Purchase Contract Agent is the registered owner of the
Pledged Notes, Pledged Treasury Consideration or Pledged Treasury Securities, it
shall receive all payments thereon. If the Pledged Notes are reregistered such
that the Collateral Agent becomes the registered holder, all payments of the
principal of, or interest on, the Pledged Notes and all payments of the
principal of, or cash distributions on, any Pledged Treasury Consideration or
Pledged Treasury Securities, that are received by the Collateral Agent and that
are properly payable hereunder shall be paid by the Collateral Agent by wire
transfer in same day funds:

      (i)   in the case of (A) quarterly cash distributions on Normal Units
            which include Pledged Notes or Pledged Treasury Consideration, as
            the case may be, and (B) any payments of principal or, if
            applicable, any Tax Event Redemption Treasury Consideration, (as
            specified in clause (B) of the definition of such term) with respect
            to any Notes or Treasury Consideration, as the case may be, that
            have been released from the Pledge pursuant to Section 4.3 hereof,
            to the Purchase Contract Agent, for the benefit of the relevant
            Holders of the Normal Units, to the account designated by the
            Purchase Contract Agent for such purpose no later than 10:00 a.m.,
            New York City time, on the Business Day such payment is received by
            the Collateral Agent (provided that in the event such payment or
            payment instructions are received by the Collateral Agent on a day
            that is not a Business Day or after 9:00 a.m., New York City time,
            on a Business Day, then such payment shall be made no later than
            9:30 a.m., New York City time, on the next succeeding Business Day);

      (ii)  in the case of any payments with respect to any Treasury Securities
            that have been released from the Pledge pursuant to Section 4.3
            hereof, to the Holders of the Stripped Units to the accounts
            designated by the Purchase Contract Agent in writing for such
            purpose no later than 2:00 p.m., New York City time, on the Business
            Day such payment is received by the Collateral Agent (provided that
            in the event such payment or payment instructions are received by
            the Collateral Agent on a day that is not a Business Day or after
            10:00 a.m., New York City time, on a Business Day, then such payment
            shall be made no later than 10:30 a.m., New York City time, on the
            next succeeding Business Day); and

      (iii) in the case of payments in respect of any Pledged Notes, Pledged
            Treasury Consideration or Pledged Treasury Securities, as the case
            may be, to be paid upon settlement of such Holder's obligations to
            purchase Common

                                      -8-

<Page>

            Shares under the Purchase Contract, to the Company on the Share
            Purchase Date in accordance with the procedure set forth in Section
            4.5(a) or 4.5(b) hereof, in full satisfaction of the respective
            obligations of the Holders under the related Purchase Contracts.

      SECTION 3.2 Application of Payments

      All payments received by the Purchase Contract Agent as provided herein
shall be applied by the Purchase Contract Agent pursuant to the provisions of
the Purchase Contract Agreement. If, notwithstanding the foregoing, the Purchase
Contract Agent shall receive any payments of principal on account of any Notes
or Treasury Consideration, as applicable, that, at the time of such payment, are
Pledged Notes or Pledged Treasury Consideration, as the case may be, or a Holder
of a Stripped Unit shall receive any payments of principal on account of any
Treasury Securities that, at the time of such payment, are Pledged Treasury
Securities, the Purchase Contract Agent or such Holder shall hold the same as
trustee of an express trust for the benefit of the Company (and promptly deliver
the same over to the Company) for application to the obligations of the Holders
under the related Purchase Contracts, and the Holders shall acquire no right,
title or interest in any such payments of principal so received.

                                   ARTICLE IV

             SUBSTITUTION, RELEASE, REPLEDGE AND SETTLEMENT OF NOTES

      SECTION 4.1 Collateral Substitution and the Creation of Stripped Units

      At any time on or prior to the second Business Day immediately preceding
the Share Purchase Date, a Holder of Normal Units shall have the right to
substitute Treasury Securities for the Pledged Notes or Pledged Treasury
Consideration, as the case may be, securing such Holder's obligations under the
Purchase Contracts comprising a part of such Normal Units, in integral multiples
of 40 Normal Units, or after a successful remarketing of the Notes pursuant to
the Purchase Contract Agreement or a Tax Event Redemption, in integral multiples
of Normal Units so that Treasury Securities to be deposited and the applicable
Treasury Consideration, as the case may be, to be released are in integral
multiples of $1,000, by (a) Transferring to the Collateral Agent Treasury
Securities having an aggregate principal amount equal to the aggregate Stated
Amount of such Normal Units and (b) delivering such Normal Units to the Purchase
Contract Agent, accompanied by a notice, substantially in the form of Exhibit B
hereto, to the Purchase Contract Agent stating that such Holder has Transferred
Treasury Securities to the Collateral Agent pursuant to clause (a) above
(stating the principal amount, the maturities and the CUSIP numbers of the
Treasury Securities Transferred by such Holder) and requesting that the Purchase
Contract Agent instruct the Collateral Agent to release from the Pledge the
Pledged Notes or Pledged Treasury Consideration related to such Normal Units,
whereupon the Purchase Contract Agent shall promptly give such instruction to
the Collateral Agent in the form provided in Exhibit A to the Purchase Contract
Agreement;

                                      -9-

<Page>

provided that, such Holder may not substitute such Treasury Securities for such
Pledged Notes or Pledged Treasury Consideration pursuant to this Section 4.1
during the period from four Business Days prior to any Remarketing Period until
the expiration of three Business Days after the end of such Remarketing Period.
Upon receipt of Treasury Securities from a Holder of Normal Units and the
related instruction from the Purchase Contract Agent, the Collateral Agent shall
release the Pledged Notes or Pledged Treasury Consideration and shall promptly
Transfer such Pledged Notes or Pledged Treasury Consideration free and clear of
any lien, pledge or security interest created hereby, to the Purchase Contract
Agent. All items Transferred and/or substituted by any Holder pursuant to this
Section 4.1, Section 4.2 or any other Section of this Agreement shall be
Transferred and/or substituted free and clear of all liens, claims and
encumbrances.

      SECTION 4.2 Collateral Substitution and the Re-Creation of Normal Units

      At any time on or prior to the second Business Day immediately preceding
the Share Purchase Date, a Holder of Stripped Units shall have the right to
reestablish Normal Units (a) consisting of the Purchase Contracts and Notes in
integral multiples of 40 Normal Units, or (b) after a remarketing of the Notes
pursuant to the Purchase Contract Agreement or a Tax Event Redemption,
consisting of the Purchase Contracts and the appropriate Treasury Consideration
(identified and calculated by reference to the Treasury Consideration then
comprising Normal Units) or the appropriate portion of the Treasury Portfolio in
integral multiples of Stripped Units so that the Treasury Consideration to be
deposited and the Treasury Securities to be released are in integral multiples
of $1,000, by (x) Transferring to the Collateral Agent Notes or the appropriate
Treasury Consideration, as the case may be, then comprising such number of
Normal Units as is equal to such Stripped Units and (y) delivering such Stripped
Units to the Purchase Contract Agent, accompanied by a notice, substantially in
the form of Exhibit B hereto, to the Purchase Contract Agent stating that such
Holder has transferred Notes or Treasury Consideration to the Collateral Agent
pursuant to clause (a) above and requesting that the Purchase Contract Agent
instruct the Collateral Agent to release from the Pledge the Pledged Treasury
Securities related to such Stripped Units, whereupon the Purchase Contract Agent
shall give such instruction to the Collateral Agent in the form provided in
Exhibit A. Upon receipt of the Notes or the appropriate Treasury Consideration,
as the case may be, from such Holder and the instruction from the Purchase
Contract Agent, the Collateral Agent shall release the Pledged Treasury
Securities and shall promptly Transfer such Treasury Securities, free and clear
of any lien, pledge or security interest created hereby, to the Purchase
Contract Agent.

      SECTION 4.3 Termination Event

      (a)   Upon receipt by the Collateral Agent of written notice from the
Company or the Purchase Contract Agent that there has occurred a Termination
Event, the Collateral Agent shall release all Collateral from the Pledge and
shall promptly Transfer any Pledged Notes or Pledged Treasury Consideration, as
the case may be, and Pledged Treasury Securities to the Purchase Contract Agent
for the benefit of the Holders of the

                                      -10-

<Page>

Normal Units and the Stripped Units, respectively, free and clear of any lien,
pledge or security interest or other interest created in favor of the Collateral
Agent hereby.

      (b)   If such Termination Event shall result from the Company's becoming a
debtor under the Bankruptcy Code, and if the Collateral Agent shall advise the
Purchase Contract Agent in writing that the Collateral Agent shall for any
reason be unable to promptly effectuate the release and Transfer of all Pledged
Notes, Pledged Treasury Consideration or Pledged Treasury Securities, as the
case may be, as provided by this Section 4.3, the Purchase Contract Agent shall:

      (i)   use its reasonable best efforts to obtain an opinion of a nationally
            recognized law firm reasonably acceptable to the Collateral Agent to
            the effect that, as a result of the Company's being the debtor in
            such a bankruptcy case, the Collateral Agent will not be prohibited
            from releasing or Transferring the Collateral as provided in this
            Section 4.3, and shall deliver such opinion to the Collateral Agent
            within ten days after the occurrence of such Termination Event, and
            if (y) the Purchase Contract Agent shall be unable to obtain such
            opinion within ten days after the occurrence of such Termination
            Event or (z) the Collateral Agent shall continue, after delivery of
            such opinion, to refuse to effectuate the release and Transfer of
            all Pledged Notes, Pledged Treasury Consideration or Pledged
            Treasury Securities, as the case may be, as provided in this Section
            4.3, then the Purchase Contract Agent shall within fifteen days
            after the occurrence of such Termination Event commence an action or
            proceeding in the court with jurisdiction of the Company's case
            under the Bankruptcy Code seeking an order requiring the Collateral
            Agent to effectuate the release and transfer of all Pledged Notes,
            Pledged Treasury Consideration or Pledged Treasury Securities, as
            the case may be, as provided by this Section 4.3 or

      (ii)  commence an action or proceeding like that described in subsection
            (i) hereof within ten days after the occurrence of such Termination
            Event.

      SECTION 4.4 Early Settlement; Merger Early Settlement; Cash Settlement

      Upon written notice to the Collateral Agent by the Purchase Contract Agent
that one or more Holders of Units have elected to effect Early Settlement,
Merger Early Settlement or Cash Settlement of their respective obligations under
the Purchase Contracts forming a part of such Units in accordance with the terms
of the Purchase Contracts and the Purchase Contract Agreement (setting forth the
number of such Purchase Contracts as to which such Holders have elected to
effect Early Settlement, Merger Early Settlement or Cash Settlement), and that
the Purchase Contract Agent has received from such Holders, and paid to the
Company as confirmed in writing by the Company, the related Early Settlement
Amounts, Merger Early Settlement Amounts or Cash Settlement Amounts, as the case
may be, pursuant to the terms of the Purchase

                                      -11-

<Page>

Contracts and the Purchase Contract Agreement and that all conditions to such
Early Settlement, Merger Early Settlement or Cash Settlement, as the case may
be, have been satisfied, then the Collateral Agent shall release from the Pledge
(a) Pledged Notes or Pledged Treasury Consideration, as the case may be, in the
case of a Holder of Normal Units or (b) Pledged Treasury Securities, in the case
of a Holder of Stripped Units, relating to such Purchase Contracts as to which
such Holders have elected to effect Early Settlement, Merger Early Settlement or
Cash Settlement, and shall Transfer all such Pledged Notes, Pledged Treasury
Consideration or Pledged Treasury Securities, as the case may be, free and clear
of any lien, pledge or security interest created hereby, to the Purchase
Contract Agent for the benefit of the Holders.

      SECTION 4.5 Remarketing; Application of Proceeds; Settlement

      (a)   Pursuant to the Purchase Contract Agreement, the Purchase Contract
Agent shall notify, by 10:00 a.m., New York City time, on the third Business Day
preceding the first day of any Remarketing Period, the Remarketing Agent and the
Collateral Agent of the aggregate principal amount of Notes comprising part of
Normal Units to be remarketed. The Collateral Agent shall, by 10:00 a.m., New
York City time, on the Business Day immediately preceding the first day of any
Remarketing Period, without any instruction from Holders of Normal Units,
deliver (i) the Pledged Notes to be remarketed to the Remarketing Agent for
remarketing and (ii) the remaining Pledged Notes to the Purchase Contract Agent
for distribution to the Holders that have elected not to participate in the
remarketing in accordance with the Purchase Contract Agreement. The Remarketing
Agent will deliver the Agent-purchased Treasury Consideration (as defined in the
Purchase Contract Agreement) purchased from the proceeds of the remarketing to
the Purchase Contract Agent, which shall thereupon deliver such Agent-purchased
Treasury Consideration to the Collateral Agent. Upon receipt of the
Agent-purchased Treasury Consideration from the Purchase Contract Agent
following a successful remarketing, the Collateral Agent, for the benefit of the
Company, shall thereupon hold such Agent-purchased Treasury Consideration to
secure such Holders' obligations under the Purchase Contracts. On the Share
Purchase Date, the Collateral Agent shall apply that portion of the payments
received in respect of the Pledged Treasury Consideration equal to the aggregate
Stated Amount of the related Normal Units to satisfy in full the obligations of
such Holders of Normal Units to pay the Purchase Price under the related
Purchase Contracts. The remaining portion of such Proceeds, if any, shall be
distributed by the Collateral Agent to the Purchase Contract Agent for payment
to each Holder of a Normal Unit a cash payment in an amount equal to 1/40, or
2.5%, of a quarterly interest payment on the $1000 principal amount of a Senior
Note at the initial annual rate of - %.

      (b)   Promptly following a Failed Remarketing, the Notes delivered to the
Remarketing Agent and the Purchase Contract Agent pursuant to Section 4.5(a)
shall be returned to the Collateral Agent, together with written notice from the
Remarketing Agent of the Failed Remarketing. The Collateral Agent, for the
benefit of the Company, shall thereupon hold such Notes to secure the
obligations of Holders of Normal Units

                                      -12-

<Page>

under the Purchase Contracts. The Remarketing Agent shall make one or more
attempts to remarket the Notes in accordance with the procedures set forth in
the Purchase Contract Agreement and the Remarketing Agreement between the
Remarketing Date and the Share Purchase Date, provided that the requirements of
Section 5.4(b)(ii) of the Purchase Contract Agreement have been met. If by 4:00
p.m., New York City time, on the third Business Day immediately preceding the
Share Purchase Date the Remarketing Agent has failed to remarket the Notes at a
price equal to at least 100.25% of the Remarketing Value (as described in the
Purchase Contract Agreement), the "Last Failed Remarketing" shall be deemed to
have occurred. In this case, the Remarketing Agent shall advise the Collateral
Agent in writing that it cannot remarket the related Pledged Notes of such
Holders of Normal Units and the Notes delivered to the Remarketing Agent
pursuant to Section 4.5(a) shall promptly be returned to the Collateral Agent.
The Collateral Agent, for the benefit of the Company will, at the written
direction of the Company, deliver or dispose of the Pledged Notes in accordance
with the Company's written instructions to satisfy in full, from any such
disposition or retention, such Holders' obligations to pay the Purchase Price
for the Common Shares; provided that if upon a Failed Remarketing or the Last
Failed Remarketing, as the case may be, the Collateral Agent delivers or
disposes of the Pledged Notes in accordance with the written instructions of the
Company, any accrued and unpaid interest on such Notes will become payable by
the Company to the Purchase Contract Agent for payment to the Holder of the
Normal Units to which such Notes relate in accordance with the Purchase Contract
Agreement.

      (c)   In the event a Holder of Stripped Units has not made an Early
Settlement, Merger Early Settlement or Cash Settlement of the Purchase Contracts
underlying its Stripped Units, such Holder shall be deemed to have elected to
pay for the Common Shares to be issued under such Purchase Contracts from the
payments received in respect of the related Pledged Treasury Securities. Without
receiving any instruction from any such Holder of Stripped Units, the Collateral
Agent shall apply such payments to the settlement of such Purchase Contracts on
the Share Purchase Date pursuant to written instructions from the Purchase
Contract Agent. In the event the payments received in respect of the related
Pledged Treasury Securities are in excess of the aggregate Purchase Price of the
Purchase Contracts being settled thereby, the Collateral Agent shall distribute
such excess, when received, to the Purchase Contract Agent for Holders of
Stripped Units.

      (d)   Pursuant to the Remarketing Agreement and Purchase Contract
Agreement, on or prior to the fourth Business Day preceding the first day of any
Remarketing Period, but no earlier than the Payment Date immediately preceding
-, 2005, holders of Separate Notes may elect to have their Separate Notes
remarketed by delivering their Separate Notes, together with a notice of such
election, substantially in the form of Exhibit C hereto, to the Custodial Agent.
On the third Business Day prior to the first day of any Remarketing Period, by
10:00 a.m., New York City time, the Custodial Agent shall notify the Remarketing
Agent of the principal amount of such Separate Notes to be remarketed. The
Custodial Agent will hold such Separate Notes in

                                      -13-

<Page>

an account separate from the Collateral Account. A holder of Separate Notes
electing to have its Separate Notes remarketed will also have the right to
withdraw such election by written notice to the Custodial Agent, substantially
in the form of Exhibit D hereto, on or prior to the fourth Business Day
immediately preceding the first day of any Remarketing Period, upon which notice
the Custodial Agent will return such Separate Notes to such holder. On the
Business Day immediately preceding the first day of any Remarketing Period, the
Custodial Agent will deliver to the Remarketing Agent for remarketing all
Separate Notes delivered to the Custodial Agent pursuant to this Section 4.5(d)
and not withdrawn pursuant to the terms hereof prior to such date. The portion
of the proceeds from such remarketing equal to the amount calculated in respect
of such Separate Notes as set forth in Section 5.4(b) of the Purchase Contract
Agreement will automatically be remitted by the Remarketing Agent to the
Custodial Agent for the benefit of the holders of such Separate Notes. In
addition, after deducting as the remarketing fee an amount not exceeding 25
basis points (.25%) of the total proceeds of such remarketing of such Separate
Notes, the Remarketing Agent will remit to the Custodial Agent the remaining
portion of the proceeds, if any, for such holders. If, despite using
commercially reasonable best efforts, the Remarketing Agent advises the
Custodial Agent in writing that there has been a Failed Remarketing, the
Remarketing Agent will promptly return such Notes to the Custodial Agent for
redelivery to the holders of such Separate Notes. For purposes of this Section
4.5(d), a "holder" of a Separate Notes shall mean the Person in whose name such
Separate Notes is registered on the books of the registrar for the Notes.

                                    ARTICLE V

                             Voting Rights -- Notes

      SECTION 5.1 Exercise by Purchase Contract Agent

      The Purchase Contract Agent may exercise, or refrain from exercising, any
and all voting and other consensual rights pertaining to the Pledged Notes or
any part thereof for any purpose not inconsistent with the terms of this
Agreement and in accordance with the terms of the Purchase Contract Agreement;
provided that the Purchase Contract Agent shall not exercise or, as the case may
be, shall not refrain from exercising such right if, in the judgment of the
Company, such action would impair or otherwise have a material adverse effect on
the value of all or any of the Pledged Notes; and provided, further, that the
Purchase Contract Agent shall give the Company and the Collateral Agent at least
five Business Days' prior written notice of the manner in which it intends to
exercise, or its reasons for refraining from exercising, any such right. Upon
receipt of any notices and other communications in respect of any Pledged Notes,
including notice of any meeting at which holders of Notes are entitled to vote
or solicitation of consents, waivers or proxies of holders of Notes, the
Collateral Agent shall use reasonable efforts to send promptly to the Purchase
Contract Agent such notice or communication, and as soon as reasonably
practicable after receipt of a written request therefor from the Purchase

                                      -14-

<Page>

Contract Agent, execute and deliver to the Purchase Contract Agent such proxies
and other instruments in respect of such Pledged Notes (in form and substance
satisfactory to the Collateral Agent) as are prepared by the Purchase Contract
Agent with respect to the Pledged Notes.

                                   ARTICLE VI

                    Rights and Remedies; TAX EVENT REDEMPTION

      SECTION 6.1 Rights and Remedies of the Collateral Agent

      (a)   In addition to the rights and remedies available at law or in
equity, after an event of default under the Purchase Contracts, the Collateral
Agent shall have all of the rights and remedies with respect to the Collateral
of a secured party under the Uniform Commercial Code (or any successor thereto)
as in effect in the State of New York from time to time (the "Code") (whether or
not the Code is in effect in the jurisdiction where the rights and remedies are
asserted) and the TRADES Regulations and such additional rights and remedies to
which a secured party is entitled under the laws in effect in any jurisdiction
where any rights and remedies hereunder may be asserted. Wherever reference is
made in this Agreement to any section of the Code, such reference shall be
deemed to include a reference to any provision of the Code which is a successor
to, or amendment of, such section. Without limiting the generality of the
foregoing, such remedies may include, to the extent permitted by applicable law,
(i) retention of the Pledged Notes or other Collateral in full satisfaction of
the Holders' obligations under the Purchase Contracts or (ii) sale of the
Pledged Notes or other Collateral in one or more public or private sales or
otherwise at the written direction of the Company.

      (b)   Without limiting any rights or powers otherwise granted by this
Agreement to the Collateral Agent, in the event the Collateral Agent is unable
to make payments to the Company on account of any Pledged Treasury Consideration
or Pledged Treasury Securities as provided in Article III hereof in satisfaction
of the obligations of the Holder of the Units of which such Pledged Treasury
Consideration or Pledged Treasury Securities, as applicable, is a part under the
related Purchase Contracts, the inability to make such payments shall constitute
an event of default under the Purchase Contracts and the Collateral Agent shall
have and may exercise, with reference to such Pledged Treasury Securities or
such Pledged Treasury Consideration, as applicable, and such obligations of such
Holder, any and all of the rights and remedies available to a secured party
under the Code and the TRADES Regulations after default by a debtor, and as
otherwise granted herein or under any other law.

      (c)   Without limiting any rights or powers otherwise granted by this
Agreement to the Collateral Agent, the Collateral Agent is hereby irrevocably
authorized to receive and collect all payments of (i) the principal amount of,
or interest on, the Pledged Notes, or (ii) the principal amount of the Pledged
Treasury Consideration or

                                      -15-

<Page>

Pledged Treasury Securities, subject, in each case, to the provisions of Article
III, and as otherwise granted herein.

      (d)   The Purchase Contract Agent, individually and as attorney-in-fact
for each Holder of Units, agrees that, from time to time, upon the written
request of the Company or the Collateral Agent (acting upon the written request
of the Company), the Purchase Contract Agent or such Holder shall execute and
deliver such further documents and do such other acts and things as may be
necessary, including as the Company or the Collateral Agent (acting upon the
written request of the Company) may reasonably request in order to maintain the
Pledge, and the perfection and priority thereof, and to confirm the rights of
the Collateral Agent hereunder. The Purchase Contract Agent shall have no
liability to any Holder for executing any documents or taking any such acts
requested by the Company or the Collateral Agent (acting upon the written
request of the Company) hereunder, except for liability for its own negligent
act, its own negligent failure to act, its own bad faith or its own willful
misconduct.

      SECTION 6.2 Substitutions

      Whenever a Holder has the right to substitute Treasury Securities, Notes,
or Treasury Consideration, as the case may be, for Collateral held by the
Collateral Agent, such substitution shall not constitute a novation of the
security interest created hereby.

      SECTION 6.3 Tax Event Redemption

      Upon the occurrence of a Tax Event Redemption prior to the Share Purchase
Date or the earlier successful remarketing of the Notes pursuant to Section 5.4
of the Purchase Contract Agreement and the receipt of the Redemption Price of
the Pledged Notes by the Collateral Agent, the Collateral Agent will, at the
written direction of the Company, apply an amount, out of such Redemption Price,
equal to the aggregate Redemption Amount with respect to the Pledged Notes to
purchase on behalf of the Holders of Normal Units the Tax Event Redemption
Treasury Consideration and promptly remit the remaining portion of such
Redemption Price, if any, to the Purchase Contract Agent for payment to the
Holders of Normal Units. The Collateral Agent shall transfer the Tax Event
Redemption Treasury Consideration to the Collateral Account to secure the
obligation of all Holders of Normal Units to purchase Common Shares of the
Company under the Purchase Contracts constituting a part of such Normal Units,
in substitution for the Pledged Notes. Thereafter the Collateral Agent shall
have such security interests, rights and obligations with respect to the Tax
Event Redemption Treasury Consideration as it had in respect of the Pledged
Notes as provided in Articles II, III, IV, V and VI, and any reference herein to
the Notes shall be deemed to be reference to such Tax Event Redemption Treasury
Consideration, and any reference herein to interest on the Notes shall be deemed
to be a reference to corresponding distributions on such Tax Event Redemption
Treasury Consideration.

                                      -16-

<Page>

                                   ARTICLE VII

                    Representations and Warranties; Covenants

      SECTION 7.1 Representations and Warranties of the Holders

      The Holders from time to time, acting through the Purchase Contract Agent
as their attorney-in-fact (it being understood that the Purchase Contract Agent
shall not be liable for any representation or warranty made by or on behalf of a
Holder), hereby represent and warrant to the Collateral Agent, which
representations and warranties shall be deemed repeated on each day a Holder
Transfers Collateral that:

      (a)   such Holder has the power to grant a security interest in and lien
on the Collateral;

      (b)   such Holder is the sole beneficial owner of the Collateral and, in
the case of Collateral delivered in physical form, is the sole holder of such
Collateral and is the sole beneficial owner of, or has the right to Transfer,
the Collateral it Transfers to the Collateral Agent, free and clear of any
security interest, lien, encumbrance, call, liability to pay money or other
restriction other than the security interest and lien granted under Section 2.1;

      (c)   upon the Transfer of the Collateral to the Collateral Account, the
Collateral Agent, for the benefit of the Company, will have a valid and
perfected first priority security interest therein (assuming that any central
clearing operation or any Intermediary or other entity not within the control of
the Holder involved in the Transfer of the Collateral, including the Collateral
Agent, gives the notices and takes the action required of it hereunder and under
applicable law for perfection of that interest and assuming the establishment
and exercise of control pursuant to Section 2.2); and

      (d)   the execution and performance by the Holder of its obligations under
this Agreement will not result in the creation of any security interest, lien or
other encumbrance on the Collateral other than the security interest and lien
granted under Section 2.1 or violate any provision of any existing law or
regulation applicable to it or of any mortgage, charge, pledge, indenture,
contract or undertaking to which it is a party or which is binding on it or any
of its assets.

      SECTION 7.2 Representations and Warranties of the Collateral
                  Agent, Custodial Agent and Securities Intermediary

      The Collateral Agent, Custodial Agent and Securities Intermediary (each an
"Agent") hereby represents and warrants:

      (a)   The - is a banking corporation duly incorporated and validly
existing under the laws of -;

                                      -17-

<Page>

      (b)   The execution, delivery and performance by the Collateral Agent, the
Custodial Agent and the Securities Intermediary of this Agreement have each been
duly authorized by all necessary corporate action on the part of each such
Agent; this Agreement has been duly executed and delivered by the Collateral
Agent, the Custodial Agent and the Securities Intermediary and constitutes a
valid and legally binding obligation of each of the Agents, enforceable against
such Agents in accordance with its terms, subject, as to enforcement, to
bankruptcy, insolvency, reorganization and other laws of general applicability
relating to or affecting creditors' rights and to general equity principles;

      (c)   The execution, delivery and performance by the Collateral Agent, the
Custodial Agent and the Securities Intermediary of this Agreement do not violate
or constitute a breach of the Articles of Incorporation or By-Laws of any of
such Agents; and

      (d)   No consent of any federal or state banking authority is required for
the execution and delivery of, or performance by the Agents of their respective
obligations under, this Agreement.

      SECTION 7.3 Covenants

      The Holders from time to time, acting through the Purchase Contract Agent
as their attorney-in-fact (it being understood that the Purchase Contract Agent
shall not be liable for any covenant made by or on behalf of a Holder), hereby
covenant to the Collateral Agent that for so long as the Collateral remains
subject to the Pledge:

      (a)   neither the Purchase Contract Agent nor such Holders will create or
purport to create or allow to subsist any mortgage, charge, lien, pledge or any
other security interest whatsoever over the Collateral or any part of it other
than pursuant to this Agreement; and

      (b)   neither the Purchase Contract Agent nor such Holders will sell or
otherwise dispose (or attempt to dispose) of the Collateral or any part of it
except for the beneficial interest therein, subject to the pledge hereunder,
transferred in connection with the Transfer of the Units.

                                  ARTICLE VIII

                              The Collateral Agent

         SECTION 8.1  Appointment, Powers and Immunities

      (a)   The Collateral Agent shall act as agent for the Company hereunder
of this

                                      -18-

<Page>

Agreement, together with such other powers as are reasonably incidental thereto.
Each of the Collateral Agent, the Custodial Agent and the Securities
Intermediary:

      (i)   shall have no duties or responsibilities except those expressly set
            forth in this Agreement and no implied covenants or obligations
            shall be inferred from this Agreement against any of them, nor shall
            any of them be bound by the provisions of any agreement by any party
            hereto beyond the specific terms hereof;

      (ii)  shall not be responsible for any recitals contained in this
            Agreement, or in any certificate or other document referred to or
            provided for in, or received by it under, this Agreement, the Units
            or the Purchase Contract Agreement, or for the value, validity,
            effectiveness, genuineness, enforceability or sufficiency of this
            Agreement (other than as against the Collateral Agent), the Units or
            the Purchase Contract Agreement or any other document referred to or
            provided for herein or therein or for any failure by the Company or
            any other Person (except the Collateral Agent, the Custodial Agent
            or the Securities Intermediary, as the case may be) to perform any
            of its obligations hereunder or thereunder or, except as expressly
            required hereby, for the existence, validity, perfection, priority
            or maintenance of any security interest created hereunder;

      (iii) shall not be required to initiate or conduct any litigation or
            collection proceedings hereunder (except in the case of the
            Collateral Agent, pursuant to directions furnished under Section
            8.2, subject to Section 8.6);

      (iv)  shall not be responsible for any action taken or omitted to be taken
            by it hereunder or under any other document or instrument referred
            to or provided for herein or in connection herewith or therewith,
            except for its own negligence, bad faith or willful misconduct; and

      (v)   shall not be required to advise any party as to selling or
            retaining, or taking or refraining from taking any action with
            respect to, the Units or other property deposited hereunder.

Subject to the foregoing, during the term of this Agreement, the Collateral
Agent shall take all reasonable action in connection with the safekeeping and
preservation of the Collateral hereunder.

      (b)   No provision of this Agreement shall require the Collateral
Agent, the Custodial Agent or the Securities Intermediary to expend or risk
its own funds or otherwise incur any financial liability in the performance
of any of its duties hereunder. In no event shall the Collateral Agent, the
Custodial Agent or the Securities Intermediary be liable for any amount in
excess of the value of the Collateral or for any special, indirect,
individual, consequential damages or lost profits or loss of business,
arising in connection with this Agreement. Notwithstanding the foregoing, the
Collateral Agent,

                                      -19-

<Page>

the Custodial Agent, the Purchase Contract Agent and Securities Intermediary,
each in its individual capacity, hereby waive any right of set-off, banker's
lien, liens or perfection rights as securities intermediary or any
counterclaim with respect to any of the Collateral.

      (c)   The Collateral Agent, Custodial Agent and Securities Intermediary
shall have no liability whatsoever for the action or inaction of any Clearing
Agency or any book-entry system thereof. In no event shall any Clearing Agency
or any book-entry system thereof be deemed an agent or subcustodian of the
Collateral Agent, Custodial Agent and Securities Intermediary.

      SECTION 8.2 Instructions of the Company.

      The Company shall have the right, by one or more instruments in writing
executed and delivered to the Collateral Agent, the Custodial Agent or the
Securities Intermediary, as the case may be, to direct the time, method and
place of conducting any proceeding for the realization of any right or remedy
available to the Collateral Agent, the Custodial Agent or the Securities
Intermediary, as the case may be, or of exercising any power conferred on the
Collateral Agent, the Custodial Agent or the Securities Intermediary, as the
case may be, or to direct the taking or refraining from taking of any action
authorized by this Agreement; provided that (i) such direction shall not
conflict with the provisions of any law or of this Agreement and (ii) the
Collateral Agent, the Custodial Agent and the Securities Intermediary shall each
receive indemnity reasonably satisfactory to it as provided herein. Nothing in
this Section 8.2 shall impair the right of the Collateral Agent in its
discretion to take any action or omit to take any action which it deems proper
and which is not inconsistent with such direction.

      SECTION 8.3 Reliance

      Each of the Securities Intermediary, the Custodial Agent and the
Collateral Agent shall be entitled conclusively to rely upon any certification,
order, judgment, opinion, notice or other communication (including, without
limitation, any thereof by telephone or facsimile) reasonably believed by it to
be genuine and correct and to have been signed or sent by or on behalf of the
proper Person or Persons (without being required to determine the correctness of
any fact stated therein), and upon advice and statements of legal counsel and
other experts selected by the Collateral Agent, the Custodial Agent or the
Securities Intermediary, as the case may be. As to any matters not expressly
provided for by this Agreement, the Collateral Agent, the Custodial Agent and
the Securities Intermediary shall in all cases be fully protected in acting, or
in refraining from acting, hereunder in accordance with instructions given by
the Company in accordance with this Agreement.

            SECTION 8.4 Rights in Other Capacities

      The Collateral Agent, the Custodial Agent and the Securities Intermediary
and their affiliates may (without having to account therefor to the Company)
accept deposits from, lend money to, make their investments in and generally
engage in any kind of

                                      -20-

<Page>

banking, trust or other business with the Purchase Contract Agent, any Holder of
Units and any holder of Separate Notes (and any of their respective subsidiaries
or affiliates) as if it were not acting as the Collateral Agent, the Custodial
Agent or the Securities Intermediary, as the case may be, and the Collateral
Agent, the Custodial Agent and the Securities Intermediary and their affiliates
may accept fees and other consideration from the Purchase Contract Agent, any
Holder of Units or any holder of Separate Notes without having to account for
the same to the Company; provided that each of the Securities Intermediary, the
Custodial Agent and the Collateral Agent covenants and agrees with the Company
that it shall not accept, receive or permit there to be created in favor of
itself (and waives any right of set-off or banker's lien with respect to) and
shall take no affirmative action to permit there to be created in favor of any
other Person, any security interest, lien or other encumbrance of any kind in or
upon the Collateral and the Collateral shall not be commingled with any other
assets of any such Person.

      SECTION 8.5 Non-Reliance on Collateral Agent

      None of the Securities Intermediary, the Custodial Agent or the Collateral
Agent shall be required to keep itself informed as to the performance or
observance by the Purchase Contract Agent or any Holder of Units of this
Agreement, the Purchase Contract Agreement, the Units or any other document
referred to or provided for herein or therein or to inspect the properties or
books of the Purchase Contract Agent or any Holder of Units. The Collateral
Agent, the Custodial Agent and the Securities Intermediary shall not have any
duty or responsibility to provide the Company or the Remarketing Agent with any
credit or other information concerning the affairs, financial condition or
business of the Purchase Contract Agent, any Holder of Units or any holder of
Separate Notes (or any of their respective subsidiaries or affiliates) that may
come into the possession of the Collateral Agent, the Custodial Agent or the
Securities Intermediary or any of their respective affiliates.

      SECTION 8.6 Compensation and Indemnity

      The Company agrees:

      (a)   to pay each of the Collateral Agent, the Custodial Agent and the
Securities Intermediary from time to time such compensation as shall be agreed
in writing between the Company and the Collateral Agent, Custodial Agent or the
Securities Intermediary, as the case may be, for all services rendered by each
of them hereunder and

      (b)   to indemnify the Collateral Agent, the Custodial Agent and the
Securities Intermediary (which for purposes of this paragraph, in each case,
shall include its directors, officers, employees and agents) for, and to hold
each of them harmless from and against, any loss, liability or reasonable
out-of-pocket expense incurred without negligence, willful misconduct or bad
faith on its part, arising out of or in connection with the acceptance or
administration of its powers and duties under this Agreement, including the
reasonable out-of-pocket costs and expenses (including reasonable fees and
expenses of counsel) of defending itself against any claim or liability in
connection with the exercise

                                      -21-

<Page>

or performance of such powers and duties or collecting such amounts. The
Collateral Agent, the Custodial Agent and the Securities Intermediary shall each
promptly notify the Company of any third party claim which may give rise to the
indemnity hereunder and give the Company the opportunity to control the defense
of such claim with counsel reasonably satisfactory to the indemnified party and
no such claim shall be settled without the written consent of the Company, which
consent shall not be unreasonably withheld.

      SECTION 8.7 Failure to Act

      In the event of any ambiguity in the provisions of this Agreement or any
dispute between or conflicting claims by or among the parties hereto or any
other Person with respect to any funds or property deposited hereunder, the
Collateral Agent, Custodial Agent and the Securities Intermediary shall be
entitled, after prompt notice to the Company and the Purchase Contract Agent, at
its sole option, to refuse to comply with any and all claims, demands or
instructions with respect to such property or funds so long as such dispute or
conflict shall continue, and neither the Collateral Agent, Custodial Agent nor
the Securities Intermediary shall be or become liable in any way to any of the
parties hereto for its failure or refusal to comply with such conflicting
claims, demands or instructions. The Collateral Agent, Custodial Agent and the
Securities Intermediary shall be entitled to refuse to act until either (i) such
conflicting or adverse claims or demands shall have been finally determined by a
court of competent jurisdiction or settled by agreement between the conflicting
parties as evidenced in a writing, reasonably satisfactory to the Collateral
Agent, Custodial Agent or the Securities Intermediary, as the case may be, or
(ii) the Collateral Agent, the Custodial Agent or the Securities Intermediary,
as the case may be, shall have received security or an indemnity reasonably
satisfactory to the Collateral Agent, Custodial Agent or the Securities
Intermediary, as the case may be, sufficient to save the Collateral Agent,
Custodial Agent or the Securities Intermediary, as the case may be, harmless
from and against any and all loss, liability or reasonable out-of-pocket expense
which the Collateral Agent, Custodial Agent or the Securities Intermediary, as
the case may be, may incur by reason of its acting without bad faith, willful
misconduct or negligence. The Collateral Agent, Custodial Agent or the
Securities Intermediary may in addition elect to commence an interpleader action
or seek other judicial relief or orders as the Collateral Agent, Custodial Agent
or the Securities Intermediary, as the case may be, may deem necessary.
Notwithstanding anything contained herein to the contrary, neither the
Collateral Agent, Custodial Agent nor the Securities Intermediary shall be
required to take any action that is in its reasonable opinion contrary to law or
to the terms of this Agreement, or which would in its reasonable opinion subject
it or any of its officers, employees or directors to liability.

      SECTION 8.8 Resignation

      Subject to the appointment and acceptance of a successor Collateral Agent,
Custodial Agent or Securities Intermediary, as provided below, (a) the
Collateral Agent, Custodial Agent and the Securities Intermediary may resign at
any time by giving notice

                                      -22-

<Page>

thereof to the Company and the Purchase Contract Agent as attorney-in-fact for
the Holders of Units, (b) the Collateral Agent, Custodial Agent and the
Securities Intermediary may be removed at any time by the Company and (c) if the
Collateral Agent, Custodial Agent or the Securities Intermediary fails to
perform any of its material obligations hereunder in any material respect for a
period of not less than 20 days after receiving written notice of such failure
by the Purchase Contract Agent and such failure shall be continuing, the
Collateral Agent, Custodial Agent or the Securities Intermediary may be removed
by the Purchase Contract Agent. The Purchase Contract Agent shall promptly
notify the Company of any removal of the Collateral Agent, the Custodial Agent
or the Securities Intermediary pursuant to clause (c) of the immediately
preceding sentence. Upon any such resignation or removal, the Company shall have
the right to appoint a successor Collateral Agent, Custodial Agent or Securities
Intermediary, as the case may be. If no successor Collateral Agent, Custodial
Agent or Securities Intermediary, as the case may be, shall have been so
appointed and shall have accepted such appointment within 30 days after the
retiring Collateral Agent's, Custodial Agent's or Securities Intermediary's
giving of notice of resignation or such removal, then the retiring Collateral
Agent, Custodial Agent or Securities Intermediary, as the case may be, may at
the Company's expense petition any court of competent jurisdiction for the
appointment of a successor Collateral Agent, Custodial Agent or Securities
Intermediary, as the case may be. Upon removal of the Collateral Agent,
Custodial Agent or Securities Intermediary, no fees paid to the retiring
Collateral Agent, Custodial Agent or Securities Intermediary pursuant to Section
8.6(a) of this Agreement shall be refunded. Each of the Collateral Agent,
Custodial Agent and the Securities Intermediary shall be a bank which has an
office in New York, New York with a combined capital and surplus of at least
$50,000,000. Upon the acceptance of any appointment as Collateral Agent,
Custodial Agent or Securities Intermediary, as the case may be, hereunder by a
successor Collateral Agent, Custodial Agent or Securities Intermediary, as the
case may be, such successor shall thereupon succeed to and become vested with
all the rights, powers, privileges and duties of the retiring Collateral Agent,
Custodial Agent or Securities Intermediary, as the case may be, and the retiring
Collateral Agent, Custodial Agent or Securities Intermediary, as the case may
be, shall take all appropriate action to transfer any money and property held by
it hereunder (including the Collateral) to such successor. The retiring
Collateral Agent, Custodial Agent or Securities Intermediary shall, upon such
succession, be discharged from its duties and obligations as Collateral Agent,
Custodial Agent or Securities Intermediary hereunder. After any retiring
Collateral Agent's, Custodial Agent's or Securities Intermediary's resignation
hereunder as Collateral Agent, Custodial Agent or Securities Intermediary, the
provisions of this Section 8.8 shall continue in effect for its benefit in
respect of any actions taken or omitted to be taken by it while it was acting as
the Collateral Agent, Custodial Agent or Securities Intermediary. Any
resignation or removal of the Collateral Agent hereunder shall be deemed for all
purposes of this Agreement as the simultaneous resignation or removal of the
Custodial Agent and the Securities Intermediary hereunder.

      Any corporation into which the Collateral Agent, the Custodial Agent or
the Securities Intermediary, in its individual capacity, may be merged or
converted or with

<Page>

which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Collateral Agent in its individual
capacity shall be a party, or any corporation to which substantially all the
corporate trust business of the Collateral Agent in its individual capacity may
be transferred, shall be the Collateral Agent, the Custodial Agent, or the
Securities Intermediary, as the case may be, respectively, under this Agreement
without further act.

      SECTION 8.9 Right to Appoint Agent or Advisor

      The Collateral Agent shall have the right to appoint agents or advisors in
connection with any of its duties hereunder, and the Collateral Agent shall not
be liable for any action taken or omitted by, or in reliance upon the advice of,
such agents or advisors selected in good faith. The appointment of agents (other
than legal counsel) pursuant to this Section 8.9 shall be subject to prior
consent of the Company, which consent shall not be unreasonably withheld.

      SECTION 8.10 Survival

      The provisions of this Article VIII shall survive termination of this
Agreement and the resignation or removal of the Collateral Agent, the Custodial
Agent or the Securities Intermediary.

      SECTION 8.11 Exculpation

      Anything in this Agreement to the contrary notwithstanding, in no event
shall any of the Collateral Agent, the Custodial Agent or the Securities
Intermediary or their officers, employees or agents be liable under this
Agreement to any third party for indirect, special, punitive or consequential
loss or damage of any kind whatsoever, including lost profits, whether or not
the likelihood of such loss or damage was known to the Collateral Agent, the
Custodial Agent or the Securities Intermediary, or any of them, incurred without
any act or deed that is found to be attributable to negligence, bad faith or
willful misconduct on the part of the Collateral Agent, the Custodial Agent or
the Securities Intermediary.

                                   ARTICLE IX

                                    AMENDMENT

      SECTION 9.1 Amendment Without Consent of Holders

      Without the consent of any Holders or the holders of any Separate Notes,
the Company, the Collateral Agent, the Custodial Agent, the Securities
Intermediary and the Purchase Contract Agent, at any time and from time to time,
may amend this Agreement, in form satisfactory to the Company, the Collateral
Agent, the Custodial Agent, the

                                      -24-

<Page>

Securities Intermediary and the Purchase Contract Agent, for any of the
following purposes:

      (i)   to evidence the succession of another Person to the Company, and the
            assumption by any such successor of the covenants of the Company; or

      (ii)  to add to the covenants of the Company for the benefit of the
            Holders, or to surrender any right or power herein conferred upon
            the Company so long as such covenants or such surrender do not
            adversely affect the validity, perfection or priority of the
            security interests granted or created hereunder; or

      (iii) to evidence and provide for the acceptance of appointment hereunder
            by a successor Collateral Agent, Custodial Agent, Securities
            Intermediary or Purchase Contract Agent; or

      (iv)  to cure any ambiguity, to correct or supplement any provisions
            herein which may be inconsistent with any other such provisions
            herein, or to make any other provisions with respect to such matters
            or questions arising under this Agreement, provided such action
            shall not adversely affect the interests of the Holders.

      SECTION 9.2 Amendment with Consent of Holders

      With the consent of the Holders of not less than a majority of the
Purchase Contracts at the time outstanding, by Act of said Holders delivered to
the Company, the Purchase Contract Agent or the Collateral Agent, as the case
may be, the Company, when duly authorized, the Purchase Contract Agent, the
Collateral Agent, the Custodial Agent and the Securities Intermediary may amend
this Agreement for the purpose of modifying in any manner the provisions of this
Agreement or the rights of the Holders in respect of the Units; provided,
however, that no such supplemental agreement shall, without the consent of the
Holder of each Outstanding Unit adversely affected thereby,

      (i)   change the amount or type of Collateral underlying a Unit (except
            for the rights of holders of Normal Units to substitute the Treasury
            Securities for the Pledged Notes or the Pledged Treasury
            Consideration, as the case may be, or the rights of Holders of
            Stripped Units to substitute Notes or the appropriate Treasury
            Consideration, as applicable, for the Pledged Treasury Securities),
            impair the right of the Holder of any Unit to receive distributions
            on the underlying Collateral or otherwise adversely affect the
            Holder's rights in or to such Collateral; or

      (ii)  otherwise effect any action that would require the consent of the
            Holder of each Outstanding Unit affected thereby pursuant to the
            Purchase Contract Agreement if such action were effected by an
            agreement supplemental thereto; or

                                      -25-

<Page>

      (iii) reduce the percentage of Purchase Contracts the consent of whose
            Holders is required for any such amendment.

It shall not be necessary for any Act of Holders under this Section to approve
the particular form of any proposed amendment, but it shall be sufficient if
such Act shall approve the substance thereof.

      SECTION 9.3 Execution of Amendments

      In executing any amendment permitted by this Section, the Collateral
Agent, the Custodial Agent, the Securities Intermediary and the Purchase
Contract Agent shall be entitled to receive and (subject to Section 6.1 hereof,
with respect to the Collateral Agent, and Section 7.1 of the Purchase Contract
Agreement, with respect to the Purchase Contract Agent) shall be fully protected
in relying upon, an Opinion of Counsel stating that the execution of such
amendment is authorized or permitted by this Agreement and that all conditions
precedent, if any, to the execution and delivery of such amendment have been
satisfied and, in the case of an amendment pursuant to Section 9.1, that such
amendment does not adversely affect the validity, perfection or priority of the
security interests granted or created hereunder.

      SECTION 9.4 Effect of Amendments

      Upon the execution of any amendment under this Article IX, this Agreement
shall be modified in accordance therewith, and such amendment shall form a part
of this Agreement for all purposes; and every Holder of Certificates theretofore
or thereafter authenticated, executed on behalf of the Holders and delivered
under the Purchase Contract Agreement shall be bound thereby.

      SECTION 9.5 Reference to Amendments

      Certificates authenticated, executed on behalf of the Holders and
delivered after the execution of any amendment pursuant to this Article IX may,
and shall if required by the Collateral Agent or the Purchase Contract Agent,
bear a notation in form approved by the Purchase Contract Agent as to any matter
provided for in such amendment. If the Company shall so determine, new
Certificates so modified as to conform, in the opinion of the Purchase Contract
Agent and the Company, to any such amendment may be prepared and executed by the
Company and authenticated, executed on behalf of the Holders and delivered by
the Purchase Contract Agent in accordance with the Purchase Contract Agreement
in exchange for outstanding Certificates.

                                      -26-

<Page>

                                    ARTICLE X

                                  MISCELLANEOUS

      SECTION 10.1 No Waiver

      No failure on the part of any party hereto or any of its agents to
exercise, and no course of dealing with respect to, and no delay in exercising,
any right, power or remedy hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise by any party hereto or any of its agents of
any right, power or remedy hereunder preclude any other or further exercise
thereof or the exercise of any other right, power or remedy. The remedies herein
are cumulative and are not exclusive of any remedies provided by law.

      SECTION 10.2 GOVERNING LAW

      THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK. Without limiting the foregoing, the above choice
of law is expressly agreed to by the Securities Intermediary, the Collateral
Agent, the Custodial Agent and the Holders from time to time acting through the
Purchase Contract Agent, as their attorney-in-fact, in connection with the
establishment and maintenance of the Collateral Account, which law, for purposes
of the Code, shall be deemed to be the law governing all Security Entitlements
related thereto. In addition, such parties agree that, for purposes of the Code,
New York shall be the Securities Intermediary's jurisdiction. The Company, the
Collateral Agent and the Holders from time to time of the Units, acting through
the Purchase Contract Agent as their attorney-in-fact, hereby submit to the
nonexclusive jurisdiction of the United States District Court for the Southern
District of New York and of any New York state court sitting in the Borough of
Manhattan in New York City for the purposes of all legal proceedings arising out
of or relating to this Agreement or the transactions contemplated hereby. The
Company, the Collateral Agent and the Holders from time to time of the Units,
acting through the Purchase Contract Agent as their attorney-in-fact,
irrevocably waive, to the fullest extent permitted by applicable law, any
objection which they may now or hereafter have to the laying of the venue of any
such proceeding brought in such a court and any claim that any such proceeding
brought in such a court has been brought in an inconvenient forum.

      SECTION 10.3 Notices

      Unless otherwise stated herein, all notices, requests, consents and other
communications provided for herein (including, without limitation, any
modifications of, or waivers or consents under, this Agreement) shall be given
or made in writing (including, without limitation, by telecopy) delivered to the
intended recipient at the "Address for Notices" specified below its name on the
signature pages hereof or, as to any party, at such other address as shall be
designated by such party in a notice to the other parties. Except as otherwise
provided in this Agreement, all such communications shall be deemed to have been
duly given when personally delivered or, in the case of a

                                      -27-

<Page>

mailed notice or notice transmitted by telecopier, upon receipt, in each case
given or addressed as aforesaid.

      SECTION 10.4 Successors and Assigns

      This Agreement shall be binding upon and inure to the benefit of the
respective successors and assigns of the Company, the Collateral Agent, the
Custodial Agent, the Securities Intermediary and the Purchase Contract Agent,
and the Holders from time to time of the Units, by their acceptance of the same,
shall be deemed to have agreed to be bound by the provisions hereof and to have
ratified the agreements of, and the grant of the Pledge hereunder by, the
Purchase Contract Agent.

      SECTION 10.5 Counterparts

      This Agreement may be executed in any number of counterparts, all of which
taken together shall constitute one and the same instrument, and any of the
parties hereto may execute this Agreement by signing any such counterpart.

      SECTION 10.6 Severability

      If any provision hereof is invalid and unenforceable in any jurisdiction,
then, to the fullest extent permitted by law, (i) the other provisions hereof
shall remain in full force and effect in such jurisdiction and shall be
liberally construed in order to carry out the intentions of the parties hereto
as nearly as may be possible and (ii) the invalidity or unenforceability of any
provision hereof in any jurisdiction shall not affect the validity or
enforceability of such provision in any other jurisdiction.

      SECTION 10.7 Expenses, Etc.

      The Company agrees to reimburse the Collateral Agent, the Securities
Intermediary and the Custodial Agent for:

      (a)   all reasonable out-of-pocket costs and all reasonable expenses of
the Collateral Agent, the Custodial Agent and the Securities Intermediary
(including, without limitation, the reasonable fees and expenses of counsel to
the Collateral Agent, the Custodial Agent and the Securities Intermediary), in
connection with (i) the negotiation, preparation, execution and delivery or
performance of this Agreement and (ii) any modification, supplement or waiver of
any of the terms of this Agreement;

      (b)   all reasonable costs and expenses of the Collateral Agent (which for
purposes of this paragraph shall include its directors, officers, employees and
agents) (including, without limitation, reasonable fees and expenses of counsel)
in connection with (i) any enforcement or proceedings resulting or incurred in
connection with causing any Holder of Units to satisfy its obligations under the
Purchase Contracts forming a part of the Units and (ii) the enforcement of this
Section 10.7; and

                                      -28-

<Page>

      (c)   all transfer, stamp, documentary or other similar taxes, assessments
or charges levied by any governmental or revenue authority in respect of this
Agreement or any other document referred to herein and all costs, expenses,
taxes, assessments and other charges incurred in connection with any filing,
registration, recording or perfection of any security interest contemplated
hereby.

      SECTION 10.8 Security Interest Absolute

      All rights of the Collateral Agent and security interests hereunder, and
all obligations of the Holders from time to time hereunder, shall be absolute
and unconditional irrespective of:

      (a)   any lack of validity or enforceability of any provision of the
Purchase Contracts or the Units or any other agreement or instrument relating
thereto;

      (b)   any change in the time, manner or place of payment of, or any other
term of, or any increase in the amount of, all or any of the obligations of
Holders of Units under the related Purchase Contracts, or any other amendment or
waiver of any term of, or any consent to any departure from any requirement of,
the Purchase Contract Agreement or any Purchase Contract or any other agreement
or instrument relating thereto; or

      (c)   any other circumstance which might otherwise constitute a defense
available to, or discharge of, a borrower, a guarantor or a pledgor.

      SECTION 10.9 Waiver of Jury Trial

      EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE
UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND
THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

                                      -29-

<Page>

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.

                                         PLATINUM UNDERWRITERS HOLDINGS,
                                         LTD.

                                         By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                         Address for Notices:

                                         Platinum Underwriters Holdings, Ltd.
                                         -
                                         -
                                         Attention: -
                                         Telecopy: -
                                         Telephone: -

                                         JPMorgan Chase Bank, as Purchase
                                         Contract Agent and as
                                         attorney-in-fact of the Holders from
                                         time to time of the Units

                                         By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                         Address for Notices:

                                         -
                                         -
                                         -
                                         Attention: Institutional Trust Services
                                         Telecopy: -
                                         Telephone: -

                                      -30-

<Page>

                                         State Street Bank,
                                         as Collateral Agent, Custodial Agent
                                         and Securities Intermediary

                                         By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                         Address for Notices:

                                         -
                                         -
                                         -
                                         -
                                         Attention: -
                                         Telecopy: -
                                         Telephone: -

                                      -31-

<Page>

                                    EXHIBIT A

                       INSTRUCTION FROM PURCHASE CONTRACT
                            AGENT TO COLLATERAL AGENT

State Street Bank
-
-
-

Attention: -

                  Re:   Equity Security Units of Platinum Underwriters
                        HOLDINGS, LTD. (THE "COMPANY")

      We hereby notify you in accordance with Section [4.1] [4.2] of the Pledge
Agreement, dated as of -, 2002, (the "Pledge Agreement") among the Company,
yourselves, as Collateral Agent, Custodial Agent and Securities Intermediary and
ourselves, as Purchase Contract Agent and as attorney-in-fact for the holders of
[Normal Units] [Stripped Units] from time to time, that the holder of Units
listed below (the "Holder") has elected to substitute [$_____ aggregate
principal amount of Treasury Securities (CUSIP No. _____)] [$_______ aggregate
principal amount of Notes or $_____ aggregate principal amount of Treasury
Consideration (CUSIP No. _____)] in exchange for the related [Pledged Notes or
Pledged Treasury Consideration] [Pledged Treasury Securities] held by you in
accordance with the Pledge Agreement and has delivered to us a notice stating
that the Holder has Transferred [Treasury Securities] [Notes or the Treasury
Consideration] to you, as Collateral Agent. We hereby instruct you, upon receipt
of such [Pledged Treasury Securities] [Pledged Notes or Pledged Treasury
Consideration], to release the [Notes or the Treasury Consideration] [Treasury
Securities] related to such [Normal Units] [Stripped Units] to us in accordance
with the Holder's instructions. Capitalized terms used herein but not defined
shall have the meaning set forth in the Pledge Agreement.

Date:
     -----------------

                                            JPMORGAN CHASE BANK,
                                            as Purchase Contract Agent

                                            By:
                                               ---------------------------------
                                               Name:
                                               Title:

                                      A-1

<Page>

Please print name and address of Registered Holder electing to substitute
[Treasury Securities] [Notes or Treasury Consideration] for the [Pledged Notes
or the Pledged Treasury Consideration] [Pledged Treasury Securities]:

Name:                                         Social Security or other Taxpayer
                                              Identification Number, if any:
Address:

                                      A-2

<Page>

                                    EXHIBIT B

                     INSTRUCTION TO PURCHASE CONTRACT AGENT

JPMorgan Chase Bank
   as Purchase Contract Agent
450 West 33rd Street
New York, New York 10001

Attention:  Institutional Trust Services

                  Re:  Equity Security Units of Platinum Underwriters
                        HOLDINGS, LTD. (THE "COMPANY")

         The undersigned Holder hereby notifies you that it has delivered to
State Street Bank, as Collateral Agent, [$_______ aggregate principal amount of
Treasury Securities (CUSIP No. _____)] [$_______ aggregate principal amount of
Notes or $_____ principal amount of Treasury Consideration (CUSIP No. _____)] in
exchange for the related [Pledged Notes or Pledged Treasury Consideration]
[Pledged Treasury Securities] held by the Collateral Agent, in accordance with
Section 4.1 of the Pledge Agreement, dated as of -, 2002 (the "Pledge
Agreement"), between you, the Company and the Collateral Agent. The undersigned
Holder hereby instructs you to instruct the Collateral Agent to release to you
on behalf of the undersigned Holder the [Pledged Notes or the Pledged Treasury
Consideration] [Pledged Treasury Securities] related to such [Normal Units]
[Stripped Units]. Capitalized terms used herein but not defined shall have the
meaning set forth in the Pledge Agreement.

Date:                             Signature:
     ----------------------                 ------------------------------------

                                  Signature Guarantee:
                                                      --------------------------

Please print name and address of Registered Holder:

Name:                                         Social Security or other Taxpayer
                                              Identification Number, if any:
Address:

                                      B-1

<Page>

                                    EXHIBIT C

              INSTRUCTION TO CUSTODIAL AGENT REGARDING REMARKETING

State Street Bank
-
-
-

Attention: -

                  Re:  NOTES OF PLATINUM UNDERWRITERS FINANCE, INC.
                       ---------------------------------------------

      The undersigned hereby notifies you in accordance with Section 4.5(d) of
the Pledge Agreement, dated as of -, 2002 (the "Pledge Agreement"), among
Platinum Underwriters Holdings, Ltd., yourselves, as Collateral Agent,
Securities Intermediary and Custodial Agent, and JPMorgan Chase Bank, as
Purchase Contract Agent and as attorney-in-fact for the Holders of Normal Units
and Stripped Units from time to time, that the undersigned elects to deliver on
the fourth Business Day immediately preceding the first day of the Remarketing
Period commencing on __________, 2005 $__________ aggregate principal amount of
Notes for delivery to the Remarketing Agent for remarketing pursuant to Section
4.5(d) of the Pledge Agreement. The undersigned will, upon request of the
Remarketing Agent, execute and deliver any additional documents deemed by the
Remarketing Agent or by the Company to be necessary or desirable to complete the
sale, assignment and transfer of the Notes tendered hereby.

      The undersigned hereby instructs you, upon receipt of the proceeds of such
remarketing from the Remarketing Agent, net of amounts payable to the
Remarketing Agent in accordance with the Pledge Agreement, to deliver such
proceeds to the undersigned in accordance with the instructions indicated herein
under "A. Payment Instructions." The undersigned hereby instructs you, in the
event of [a/the Last] Failed Remarketing upon receipt of the Notes tendered
herewith from the Remarketing Agent, to deliver such Notes to the person(s) and
the address(es) indicated herein under "B. Delivery Instructions."

      With this notice, the undersigned hereby (i) represents and warrants that
the undersigned has full power and authority to tender, sell, assign and
transfer the Notes tendered hereby and that the undersigned is the record owner
of any Notes tendered herewith in physical form or a participant in The
Depository Trust Company ("DTC") and the beneficial owner of any Notes tendered
herewith by book-entry transfer to your account at DTC and (ii) agrees to be
bound by the terms and conditions of Section 4.5(d) of the Pledge Agreement.
Capitalized terms used herein but not defined shall have the meaning set forth
in the Pledge Agreement.

                                      C-1

<Page>

Date:
     -----------------------
                                     Signature:
                                               ---------------------------------

                                     Signature Guarantee:

Name:
     -------------------------------------
                  (Please Print)
Address:
        ----------------------------------
                  (Please Print)
Country:

Zip Code:

Telecopy (include country code if outside U.S.):

Telephone (include country code if outside U.S.):

(Tax Identification or Social Security Number):

A.  PAYMENT INSTRUCTIONS

Proceeds of the remarketing should be paid by check in the name of the person(s)
set forth below and mailed to the address set forth below.

Name(s):
              ------------------------------------
                  (Please Print)
Address:
              ------------------------------------
                  (Please Print)
Zip Code:

Country:

Telecopy (include country code if outside U.S.):

Telephone (include country code if outside U.S.):

(Tax Identification or Social Security Number):

                                      C-2

<Page>

B.  DELIVERY INSTRUCTIONS

In the event of [a/the Last] Failed Remarketing, Notes which are in physical
form should be delivered to the person(s) set forth below and mailed to the
address set forth below.

Name(s):
              ------------------------------------
                  (Please Print)

Address:
              ------------------------------------
                  (Please Print)
Zip Code:

Country:

Telecopy (include country code if outside U.S.):

Telephone (include country code if outside U.S.):

(Tax Identification or Social Security Number):

In the event of [a/the Last] Failed Remarketing, Notes which are in book-entry
form should be credited to the account at The Depository Trust Company set forth
below.

Name of Account Party:                                       DTC Account Number:

                                      C-3

<Page>
                                    EXHIBIT D

                    INSTRUCTION TO CUSTODIAL AGENT REGARDING
                           WITHDRAWAL FROM REMARKETING

State Street Bank
-
-
-
-

Attention: -

                  Re:  NOTES OF PLATINUM UNDERWRITERS FINANCE, INC.
                       ---------------------------------------------

         The undersigned hereby notifies you in accordance with Section 4.5(d)
of the Pledge Agreement, dated as of -, 2002 (the "Pledge Agreement"), among
Platinum Underwriters Holdings, Ltd., yourselves, as Collateral Agent,
Securities Intermediary and Custodial Agent, and JPMorgan Chase Bank, as
Purchase Contract Agent and as attorney-in-fact for the Holders of Normal Units
and Stripped Units from time to time, that the undersigned elects to withdraw
the $_____ aggregate principal amount of Notes delivered to the Custodial Agent
on ___________, 2005 for remarketing pursuant to Section 4.5(d) of the Pledge
Agreement. The undersigned hereby instructs you to return such Notes to the
undersigned in accordance with the undersigned's instructions. With this notice,
the Undersigned hereby agrees to be bound by the terms and conditions of Section
4.5(d) of the Pledge Agreement. Capitalized terms used herein but not defined
shall have the meaning set forth in the Pledge Agreement.

Date:
     --------------------------
                                       Signature:
                                                 -------------------------------

                                       Signature Guarantee:
Name(s):
              ------------------------------------
                  (Please Print)
Address:
              ------------------------------------
                  (Please Print)
Zip Code:

Country:

Telecopy (include country code if outside U.S.):

Telephone (include country code if outside U.S.):

                                      D-1

<Page>

(Tax Identification or Social Security Number):

A.  DELIVERY INSTRUCTIONS

In the event of [a/the Last] Failed Remarketing, Notes which are in physical
form should be delivered to the person(s) set forth below and mailed to the
address set forth below.

Name(s):
              ------------------------------------
                  (Please Print)

Address:
              ------------------------------------
                  (Please Print)
Zip Code:

Country:

Telecopy (include country code if outside U.S.):

Telephone (include country code if outside U.S.):

(Tax Identification or Social Security Number):

In the event of [a/the Last] Failed Remarketing, Notes which are in book-entry
form should be credited to the account at The Depository Trust Company set forth
below.

Name of Account Party:                                       DTC Account Number:

                                      D-2

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