Document:

Exhibit 10.3

 

MONTPELIER
REINSURANCE LTD.

 

AMENDED
AND RESTATED DEFERRED COMPENSATION PLAN

 

1. Establishment
of Plan

 

MONTPELIER REINSURANCE LTD., a Bermuda corporation,
hereby establishes the Montpelier Reinsurance Ltd. Deferred Compensation Plan
(the “Plan”), effective as of 31 December 2003,
to permit eligible employees to defer the receipt of compensation otherwise
payable to such eligible employees in accordance with the terms of the Plan.
The Plan is unfunded and is maintained primarily for the purpose of providing
deferred compensation to a select group of management or highly compensated
employees.

 

2. Definitions

 

2.1 “Account”
means the bookkeeping accounts established pursuant to Section 6.1 and
maintained by the Administrator in the names of the respective Participants, to
which all amounts deferred, Company Contributions and earnings allocated under
the Plan shall be credited, and from which all amounts distributed under the
Plan shall be debited.

 

2.2 “Administrator”
means the Board or the person or person(s) appointed by the Board.

 

2.3 “Affiliate”
means, with respect to a Person, a Person that directly or indirectly controls,
or is controlled by, or is under common control with such Person.

 

2.4 “Annual Bonus” means
the amount identified by the Company as a cash bonus earned by an Eligible
Employee based on achievement of individual and Company performance goals.

 

2.5 “Base Salary” means
an Eligible Employee’s regular salary.

 

2.6 “Board”
means the Board of Directors of the Company.

 

2.7 “Code”
means the Internal Revenue Code of 1986, as amended.

 

2.8 “Company” means
Montpelier Reinsurance Ltd.

 

2.9 “Company
Contributions” means amounts contributed by the Company to the Plan.

 

2.10 “Compensation”
means the Base Salary and Annual Bonus earned by an Eligible Employee.

 

2.11 “Earnings Rate”
means the investment gains and losses, as determined by the Administrator, that
are applied to a Participant’s Account no less frequently than annually.

 

2.12 “Election”
means a written election on a form provided by the Administrator, filed with
the Administrator in accordance with Article 3, pursuant to which an
Eligible Employee (a) elects to defer a percentage of the Compensation
earned for the performance of service as an Eligible Employee following the
time that such Election is filed and (b) elects the manner in which
payments under the Plan shall be made.

 

2.13 “Eligible
Employee” means each employee of a Company who is a citizen of the
United States and subject to federal income taxation under the provisions of
the Code and is eligible for participation in the Plan on the date on which an
Election is filed with the Administrator.

 

2.14 “Hardship”
means a severe financial hardship to a Participant resulting from (i) an
illness or accident of the Participant or of the Participant’s spouse,
beneficiary or dependent (as defined in Code 

 

 

Section 152, without regard to Code Section 152(b)(1),
(b)(2) and (d)(1)(B)); (ii) loss of the Participant’s property due to
casualty (including the need to rebuild a home following damage to a home not
otherwise covered by insurance); or (iii) other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of
the Participant. Whether a Hardship has occurred is determined by the Administrator
on a uniform and nondiscriminatory basis pursuant to the Participant’s request
under Section 5.3.

 

2.15 “Participant”

 

2.15.1 “Participant”
means each individual who has an undistributed amount credited to an Account
under the Plan.

 

2.15.2 “Active
Participant” means each Participant who is actively employed by the
Company as an Eligible Employee.

 

2.16 “Period of
Service” means an individuals’ period of service from such
individuals’ date of hire by the Company, a Parent Company or a Subsidiary Company
to the date of termination of employment with the Company and all parent
Companies and Subsidiary Companies.

 

2.17 “Person”
means an individual, a corporation, a partnership, an association, a trust or
any other entity or organization.

 

2.18 “Plan”
means the Montpelier Reinsurance Ltd. Deferred Compensation Plan.

 

2.19 “Plan Year”
means the calendar year.

 

2.20 “Separation from Service” means
an employee has died or retired, or otherwise has a termination of employment
with the employer.

 

2.21 “Severance Pay”
means any amount identified by the Company as severance pay, or any amount
which is payable on account of periods beginning after the last date on which
an employee (or former employee) is required to report for work for the
Company.

 

2.22 “Specified Employee”
means a Participant who, as of the date of the Participant’s Separation from
Service, is a key employee of the Company. A Participant is a key employee if
the Participant is (i) an officer of the Company having an annual
compensation greater than $160,000 (indexed annually for inflation), (ii) a
5% owner of the Company, or (iii) a 1% owner of the Company having a
annual compensation from the Company of more than $150,000, at any time during
the 12-month period ending on the Specified Employee identification date.

 

2.23 “Termination
Event” means the occurrence of any of the following events: (i) any
one person, or more than one person acting as a group, acquires ownership of
stock of the Company that, together with stock held by such person or group,
constitutes more than 50% of the total fair market value or total voting power
of the stock of the Company, provided  however, that if any one
person, or more than one person acting as a group, is considered to own more
than 50% of the total fair market value or total voting power of the stock of
the Company, the acquisition of additional stock by the same person or persons
is not considered to be a Termination Event, (ii) any one person, or more
than one person acting as a group acquires (or has acquired during the 12-month
period ending on the date of the most recent acquisition by such person or
persons) ownership of stock of the Company possessing 30% or more of the total
voting power of the stock of the Company, provided  however, that
if any one person, or more than one person acting as a group, is considered to
own more than 50% of the total fair market value or total voting power of the
stock of the Company, the acquisition of additional stock by the same person or
persons is not considered to be a Termination Event, (iii) a majority of
the members of the Board is replaced during any 12-month period by directors
whose appointment or election is not endorsed by a majority of the members of
the  Board before the date of the
appointment or election, (iv) any one person or more than one person
acting as a group acquires (or has acquired during the 12-month period ending
on the date of the most recent acquisition by such person or persons) assets
from the Company that have a total gross fair market value equal to or more
than 40% 

 

 

of the total gross fair market value of all of the
assets of the Company immediately before such acquisition or acquisitions, or (v) approval
by the stockholders of the Company of a complete liquidation or dissolution of
the Company..

 

2.24 “Trust”
means the trust established by the Company to hold the funds of the Plan and “Trustee”
means the trustee or trustees from the time being of the Trust.

 

3. Election to
Defer Compensation

 

3.1 General

 

3.1.1 Election.
Each Eligible Employee shall have the right to defer a percentage of the
aggregate Compensation which he or she may earn in a Plan Year by filing an
Election at the time and in the manner described in this Article 3; provided that Severance Pay shall not be
included as “Compensation” for purposes of this Article 3 and provided further that an Eligible Employee
may file separate Elections for Base Salary and Annual Bonus. In addition, on
the first such Election (unless the Company shall provide otherwise), the
Eligible Employee shall elect the form in which benefits payable under the Plan
shall be paid, as further set forth in Section 5.1.

 

3.1.2 Withholding of
Compensation Subject to an Election. Except as the Company may
otherwise provide, the amount of Compensation deferred by a Participant for a
Plan Year pursuant to an Election shall be withheld on a pro-rata basis from
each periodic payment of the Participant’s Compensation (in accordance with the
general pay practices of the Company) and credited to the Participant’s Account
in accordance with Section 6.1, provided
that separate Elections may apply to Base Salary and Annual Bonus.

 

3.1.3 Irrevocability
of Election. Any Election with respect to a Plan Year filed pursuant
to this Article 3 shall be irrevocable; provided
that the form of distribution may be modified in accordance with the
rules prescribed in Section 5.2.

 

3.2 Filing of
Elections. The Election shall be made on the form provided by the
Administrator for this purpose. Except as provided in Section 3.3 or otherwise
by the Administrator, no Election with respect to Base Salary or Annual Bonus
shall be effective unless it is filed with the Administrator on or before the
close of business on December 31 preceding the Plan Year as to which the
Election applies.

 

3.3 Filing of
Elections for First Year as an Eligible Employee. Notwithstanding Section 3.2,
in the Plan year an employee first becomes an Eligible Employee, the Eligible
Employee may elect to defer all or any portion of his or her Compensation to be
earned in such Plan Year beginning with the payroll period next following the
filing of an Election with the Administrator and before the close of such Plan
Year, by making and filing the Election with the Administrator within 30 days
of the date such employee becomes an Eligible Employee. Elections by such
Eligible Employee for succeeding Plan years shall otherwise be made in
accordance with Section 3.1 and Section 3.2.

 

3.4 Plan Years to
which Elections May Apply. A separate Election may be made for
each Plan Year as to which an Eligible Employee desires to defer all or any
portion of his or her Compensation, but the failure of an Eligible Employee to
make an Election for any Plan Year shall not affect such Eligible Employee’s
right to make an Election for any other Plan Year.

 

4. Vesting

 

Vesting in Deferrals. Participants will be
immediately vested in their deferrals under Section 3.1.

 

5. Distributions

 

5.1 Distribution
Date and Form of Distribution. The vested amount credited to a
Participant’s Account shall be distributed beginning as soon as practicable,
and in all cases  no later than the 

 

 

fifteenth day of the third calendar month, following
the earlier of (i) the distribution date designated by the employee in his
or her Election or (ii) subject to Section 12.3, the date the
employee has a Separation from Service.. Distribution shall be made in either a
single lump sum or in installments over not more than ten years, as elected by
the Participant pursuant to the initial Election, in accordance with Section 3.1.1.

 

5.2 Modification of
Election as to Form of Distribution. Each Active Participant
who has previously made an Election may elect to change the form of
distribution by filing an Election (“Modification Election”) with the
Administrator. The Modification Election will not be effective until at least
12 months after the date on which the election is made.. In the event the
Active Participant terminates employment prior to the end of the Plan Year in
which the Modification Election is made, the form of distribution shall be the
form of distribution elected by the Active Participant prior to the
Modification Election.

 

5.3 Hardship
Distributions. Notwithstanding the terms of an Election, if, at the
Participant’s request, the Administrator determines that the Participant has
incurred a Hardship, the Board may, in its discretion, authorize the immediate
distribution of the portion of the Participant’s Account reasonably needed to
satisfy the Hardship.

 

6. Book Accounts

 

6.1 Establishment of
Account. An Account shall be established for each Eligible Employee
when such Eligible Employee becomes a Participant. Compensation deferred
pursuant to the Plan shall be credited to the Account on the date such
Compensation would otherwise have been payable to the Participant. Company
Contributions shall be credited to the Accounts as of the last day of each Plan
Year, or more frequently, as determined by the Administrator. Earnings shall be
credited to the Account as provided in Section 6.2.

 

6.2 Crediting of
Earnings on Accounts. The Administrator shall credit Accounts, not
less frequently than annually, with income, gains and losses at the Earnings
Rate, including during the period extending from a Participant’s Separation
from Service to the date the Participant’s Account is distributed in full; provided that the Administrator may
provide that the Earnings Rate for the Account of Participants who are
receiving installment distributions may be different from the Earnings Rate
applied to the Accounts of Active Participants.

 

6.3 Status of
Deferred Amounts. Regardless of whether or not the Company is a
Participant’s employer, all Compensation deferred under this Plan shall
continue for all purposes to be a part of the general funds of the Company.

 

6.4 Participants’
Status as General Creditors. Regardless of whether or not the
Company is a Participant’s employer, an Account shall at all times represent
the general obligation of the Company. The Participant shall be a general
creditor of the Company with respect to this obligation, and shall not have a
secured or preferred position with respect to his or her Accounts. Nothing
contained herein shall be deemed to create an escrow, trust, custodial account
or fiduciary relationship of any kind.

 

6.5 Notwithstanding the foregoing, the assets of the
Plan will be held, invested and disposed of by the Trustee in accordance with
these Rules to the extent they do not conflict with any of the trusts,
powers or provisions of the Trust. In case of any conflict between these Rules and
the trusts, powers or provisions of the Trust, the Trust shall prevail.

 

7. Non-Assignability, etc.

 

The right of each Participant in or to any Account,
benefit or payment hereunder shall not be subject in any manner to attachment
or other legal process for the debts of such Participant; and no Account,
benefit or payment shall be subject to anticipation, alienation, sale,
transfer, assignment or encumbrance.

 

 

8. Death of
Participant

 

8.1 Death before
Commencement of Distributions. If a Participant has incurred a
Separation from Service by reason of death before the distribution of any
portion of his Account has begun, the Company shall, within ninety (90) days of
the date of such Separation from Service, distribute the Account to the
beneficiary or beneficiaries selected by the Participant. Distributions under
this Section 8.1 shall be made in a single sum.

 

8.2 Designation of
Beneficiaries. Each Participant shall have the right to designate
one or more beneficiaries to receive distributions in the event of the
Participant’s death by filing with the Administrator a beneficiary designation
on the form provided by the Administrator for such purpose. The designation of
beneficiary or beneficiaries may be changed by a Participant at any time prior
to his or her death by the delivery to the Administrator of a new beneficiary
designation form. If no beneficiary shall have been designated, or if no
designated beneficiary shall survive the Participant, the Participant’s estate
shall be deemed to be the beneficiary.

 

9. Interpretation

 

The Board shall have full and exclusive authority to
construe, interpret and administer this Plan and the Board’s construction and
interpretation thereof shall be binding and conclusive on all persons for all
purposes.

 

10. Termination
Event

 

The Administrator shall give Participants at least
thirty (30) days’ notice (or, if not practicable, such shorter notice as may be
reasonably practicable) prior to the anticipated date of a Termination Event.
The notice shall provide that notwithstanding any other provision of the Plan
or the terms of any Election or Modification Election, upon the consummation of
a Termination Event, the Account balance of each Participant shall be
distributed in full.

 

11. Amendment or
Termination

 

The Company, by action of the Board or the
Administrator, reserves the right at any time, or from time to time, to amend
or modify this Plan. The Company, by action of the Board, reserves the right at
any time, or from time to time, to terminate this Plan.

 

12. Miscellaneous
Provisions

 

12.1 No Right to
Continued Employment. Nothing contained herein shall be construed as
conferring upon any Participant the right to remain in the employment of the
Company as an executive or in any other capacity.

 

12.2 Governing Law.
This Plan shall be interpreted under the laws of the State of Delaware in the
United States, except to the extent such law is pre-empted by federal law in
the United States.

 

12.3 Payments to a Specified
Employee. Notwithstanding any provision of the Plan to the contrary,
if a Participant is a Specified Employee, payments made to such Specified
Employee due to Separation from Service shall not be made until the expiration
of the six-month period following the date of the Separation from Service, and
the value of the Specified Employee’s Account shall be adjusted for earnings
during the six-month period.

 

12.4 Compliance with Section 409A.  The Company intends that the Plan comply with
all applicable requirements of Code Section 409A and regulations and
guidance issued thereunder (“Section 409A”). To the extent that any
provision of the Plan violates Code Section 409A such that amounts would
be taxable to a Participant prior to payment or otherwise subject to penalties,
such provision shall be automatically reformed or stricken to preserve the
intent hereof.

 

12.5 Withholding.  Any payment due under the Plan to a
Participant, a Participant’s beneficiary or beneficiaries, or a Participant’s
estate shall be paid net of all tax withholding obligations required by 

 

 

applicable federal, state, local or foreign law,
including withholding required as a result of income inclusion pursuant to Code
Sections 409A and 457A. Notwithstanding the foregoing, for purposes of Code Section 457A,
if amounts under the Plan are attributable to services performed prior to January 1,
2009, to the extent the amounts are not included in gross income in a taxable
year beginning before 2018, the amounts are includible in gross income in the
later of (i) the last taxable year beginning before January 1, 2018
or (ii) the first taxable year in which there is no substantial risk of
forfeiture of the right to the amounts deferred. Whether there is a substantial
risk of forfeiture is determined under Code Section 457A and regulations
and guidance issued thereunder. By becoming a Participant in this Plan, the
Participant consents to all tax withholdings made pursuant to this Section 12.5.

 

13. Effective
Date

 

The effective date of the Plan is 31 December 2003.Exhibit 10.4

 

MONTPELIER RE HOLDINGS LTD

2007 LONG-TERM INCENTIVE PLAN

AMENDMENT NO. 1

 

This Amendment No. 1 (this “Amendment”) to
the Montpelier Re Holdings Ltd. 2007 Long-Term Incentive Plan, dated May 23,
2007 (the “Plan”), sponsored by Montpelier Re Holdings Ltd., a company
organized under the laws of Bermuda (the “Company”), shall become
effective as of this 1st day of August 2010.

 

SECTION 1.  Definitions.  Unless otherwise defined in this Amendment,
capitalized terms used herein shall have the meanings assigned to them in the
Plan.

 

SECTION 2.  Amendment.  The following paragraph is added to the Plan
as Section 2(d):

 

Delegation of Authority to Officers.  The Committee may delegate, on
such terms and conditions as it determines in its sole and plenary discretion,
to one or more officers of the Company the authority to make grants of Awards
to employees (other than any officer subject to Section 16 of the Exchange
Act) and consultants of the Company and its subsidiaries and all necessary and
appropriate decisions and determinations with respect thereto.  To the extent that the Committee has
delegated authority to one or more officers in accordance with this Section 2(d),
all references to “Committee” in the Plan and in any applicable Award Agreement
shall be deemed to refer to the officer(s) to whom such authority has been
delegated.

 

SECTION 3.  Effect of this Amendment.  Except as specifically set forth in this
Amendment, this Amendment shall have no effect on any of the Company’s rights
or obligations under the Plan or any Award granted thereunder.

 

IN
WITNESS WHEREOF, the Company has caused this Amendment to be executed,
effective as of August 1, 2010.

 

	
   

  	
  MONTPELIER RE HOLDINGS LTD.

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  /s/ ANTHONY TAYLOR

  
	
   

  	
   

  	
  Name: Anthony Taylor

  
	
   

  	
   

  	
  Title:   Chairman
  of the Board

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