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                                                                   EXHIBIT 10.15

                                FORM OF SUBLEASE

1.  PARTIES

     This Sublease is entered into as of the ____ day of _______, 2002, by and
between PLATINUM REINSURANCE UNDERWRITERS, INC. ("Sublessee"), and ST. PAUL
REINSURANCE MANAGEMENT CORPORATION, a New York corporation ("Sublessor"), as a
Sublease under the Lease dated March 17, 1987 entered into by 195 Property
Company as Lessor, and Sublessor under this Sublease as Lessee, as amended by a
Supplementary Agreement Fixing Term dated January 22, 1988 and a First Amendment
of Lease dated January 22, 1996 (herein, collectively referred to as the
"Lease"). Copies of the Lease (including amendments) are attached hereto, marked
EXHIBIT A, and incorporated herein by reference. Pursuant to a Formation and
Separation Agreement between The St. Paul Companies, Inc. ("St. Paul") and
Platinum Underwriters Holdings, Ltd. ("Platinum") dated ___________, St. Paul
transferred certain of its assets to Platinum on or about ______________ (the
"Closing Date"). As a result, in connection with such transfer, Sublessee will
occupy a portion of the Leased Premises as hereinafter described.

2.  PROVISIONS CONSTITUTING SUBLEASE

     (a) This Sublease is subject to all of the terms and conditions of the
Lease in EXHIBIT A, including all amendments, if any (collectively the "Lease"),
and Sublessee shall assume and perform the obligations of Sublessor as Lessee in
said Lease to the extent said terms and conditions are applicable to the
Premises subleased pursuant to this Sublease. Sublessee shall not commit or
permit to be committed on the Premises any act or omission which shall violate
any term or condition of the Lease. In the event of the termination of
Sublessor's interest as Lessee under the Lease for any reason (including
voluntary termination pursuant to paragraph 4 below), then this Sublease shall
terminate simultaneously therewith without any liability of Sublessor to
Sublessee. Sublessor shall use its best efforts to prohibit the Lease from being
terminated as a result of its direct actions or inactions other than it's
exercise of the termination option as hereinbelow described.

     (b) All of the terms and conditions contained in the Lease are incorporated
herein, as terms and conditions of this Sublease (with each reference therein to
Lessor and Lessee to be deemed to refer to Sublessor and Sublessee), and along
with all of the following paragraphs set out in this Sublease shall be the
complete terms and conditions of this Sublease.

3.  PREMISES

         Sublessor leases to Sublessee, and Sublessee hires from Sublessor, the
following described Premises situated at 195 Broadway, New York, New York as
more fully described as

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________ rentable square feet on the ___ floor, as shown on the attached floor
plan, marked EXHIBIT B.

4.  TERM

     The term of this Sublease shall be for a period commencing on the Closing
Date and ending January 31, 2003.

5.  RENT

     (a) Commencing on the Closing Date, Sublessee shall pay to Sublessor as
Rent for the Premises, on the first day of each calendar month, Sublessor's pro
rata share of the amount set forth in the Lease as monthly rent for the
Premises, equal to the sum of __________________ per month.

This Rent shall be subject to escalation on January 1 of each calendar year
based on the Sublessee's pro rata share of any increase of any Operating
Expenses and Taxes (sometimes called "Escalation Rent"). Sublessee's pro rata
share shall be ___________percent (____%) of the total share paid by Sublessor.

     Rent for any period during the term hereof which is for less than one month
shall be a pro rata portion of the monthly installment. Rent shall be payable
without notice or demand and without any deduction, offset, or abatement, except
as specifically stated in this Sublease, in lawful money of the United States of
America to Sublessor at the following address, or to such other persons or at
such other places as Sublessor may from time to time designate in writing:

     St. Paul Fire and Marine Insurance Company
     385 Washington Street
     Mail Code: 512E
     St. Paul, Minnesota  55102
     Attn: Lease Administrator

     (b) All payments or installments of Rent hereunder and all sums whatsoever
due under this Sublease, if not paid when due, shall be subject to a late charge
equal to five percent (5%) of the payment due for each late payment and shall
bear interest at the rate of eighteen percent (18%) per annum (but not more than
the maximum allowable legal rate applicable) until paid. If an attorney is
employed to enforce Sublessor's rights under this Sublease, Sublessee shall pay
all fees and expenses of such attorney. Time is of the essence in this Sublease.

6. NO OPTIONS

     Sublessee shall have no option to renew this Sublease or expansion option,
right of first refusal, or other such option under the Lease, if any.

7.  DELIVERY OF POSSESSION

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     Sublessor shall deliver to Sublessee the Premises in an "As Is, Where Is"
condition, excepting same shall be in a broom clean condition, and Sublessee
shall be responsible, at its sole cost, for any desired improvements (including,
but not limited to, carpeting, partitions, ceiling tiles, wall treatment and/or
lighting). Sublessee shall provide Sublessor with copies of the plans for any
improvements and obtain Sublessor's and Lessor's written approval prior to
commencing any improvements. Sublessor and Sublessee agree that the Premises
include existing interior improvements. Sublessee hereby accepts the Premises in
their condition existing as of the date Sublessee occupies the Premises, subject
to all applicable zoning, County and State laws, ordinances and regulations
governing and relating to the use of the Premises. Sublessee acknowledges that
Sublessor has not made any representations or warranty as to the suitability of
the Premises for the conduct of Sublessee's business and agrees to deliver the
Premises to Sublessor at the end of the Term (or upon earlier termination as
provided in this Sublease) in as good condition as received, ordinary wear and
tear excepted).

8.  USE

     The Premises shall be used and occupied only for the uses set forth in the
Lease.

9.  SUBLEASE/ASSIGNMENT

     There shall be no assignment or sublease of the Premises by the Sublessee
without the prior written consent of the Sublessor and any such attempted
transfer shall be void. In addition, any assignment or sublease that may be
approved by Sublessor must also be approved by Lessor and its mortgagees, if
any.

10.  INSURANCE AND INDEMNIFICATION

     (a) In order to protect the Sublessor, Sublessee shall carry the insurance
required by the Lease, and in addition to naming Lessor as an insured
thereunder, shall name the Sublessor as an insured thereunder. Promptly upon
execution of this Sublease, Sublessee shall provide Sublessor with a certificate
of insurance in a form reasonably satisfactory to Sublessor evidencing such
insurance.

     (b) Sublessee shall be responsible for, and shall defend (at Sublessor's
option) indemnify and hold harmless the Sublessor and Lessor against and from,
any and all liability or claim of liability arising out of (i) the use or
occupancy of, or the conduct, operation or management of the Sublessee's
business in, the Premises accruing or occurring from and after the date of this
Sublease, or (ii) any breach or default by the Sublessee in performing any of
its obligations under the provisions of this Sublease, the Lease or applicable
law, or (iii) any negligent, intentionally tortious or other act or omission of
the Sublessee or any of its agents, contractors, servants, employees,
subtenants, licensees or invitees during the term of this Sublease, or (iv) any
injury to or death of any person or damage to any property occurring on the
premises during the term of this Sublease, except for claims based on the
negligence or wilful misconduct of Sublessor or Lessor.

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11.  NOTICES

     Sublessor and Sublessee undertake and agree upon receipt of any notice from
Lessor or upon delivery of any notice to Lessor, to forthwith transmit a copy
thereof to the other. All notices required hereunder shall be deemed validly
transmitted if sent in the same manner as provided in the Lease, addressed as
follows:

     if to Sublessor:

                  St. Paul Fire and Marine Insurance Company
                  Attention:  Administrative Services Department,
                              Real Estate Leasing Services
                  Mail Code: 512E
                  385 Washington Street
                  St. Paul, Minnesota  55102

                  with a copy to:

                  MC46
                  St. Paul Fire and Marine Insurance Company
                  Attention:  Real Estate Counsel, Legal Services
                  MAILING ADDRESS:
                  P.O. Box 1138
                  Baltimore, Maryland  21203-1138
                  DELIVERY ADDRESS:
                  5801 Centennial Way
                  Baltimore, Maryland  21209

         if to Sublessee:

                  Platinum Reinsurance Underwriters, Inc.

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

12.  DEFAULTS

     In the event Sublessee shall fail to perform each and every covenant and
agreement herein undertaken by Sublessee, or any other default occurs as
described in the Lease, Sublessor shall be entitled to assert any remedy
available pursuant to the laws of the State of New York and to avail itself of
any right or remedy which would be available in the Lease if said provision were
herein set forth naming Sublessor in the place and stead of Lessor and naming
Sublessee in the place and stead of Lessee.

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13.      WAIVER

     No waiver of any of the provisions hereunder shall be binding upon the
parties unless agreed to in writing. The failure of any party at any time to
require performance by the other party of any provisions hereof shall not affect
such party's right to require such performances at any time thereafter.

14.      GOVERNING LAW

     This Sublease shall be governed in accordance with the laws of the State of
New York.

15.       SEVERABILITY

     This Sublease is intended to be performed in accordance with, and only to
the extent permitted by, all applicable laws, ordinances, rules and regulations
of the State of New York. If any provision of this Sublease, or the application
thereof to any person or circumstance, shall for any reason and to any extent,
be invalid or unenforceable, the remainder of this Sublease and the application
of such provision to other persons or circumstances shall not be affected
thereby, but rather shall be enforced to the greatest extent permitted by law.

16.      HEADINGS

     The headings contained in this Sublease are for reference purposes only and
shall not in any way affect the meaning or interpretation thereof.

17.      ENTIRE CONTRACT

     This Sublease and its Exhibits A and B embody the entire contract between
the parties hereto relative to the subject matter. No amendments, modifications
or changes herein or hereof shall be binding unless executed by both of the
parties hereto.

18.      HOLDOVER

     If the Sublessee continues to occupy the Premises after the expiration of
the Term or any earlier termination of this Sublease without having obtained the
Sublessor's express, written consent thereto, then without altering or impairing
any of the Sublessor's rights under this Sublease or applicable law, (a) the
Sublessee hereby agrees to pay to the Sublessor immediately on demand by the
Sublessor, as Rent for the Premises, for each calendar month or portion thereof
after such expiration of the Term or such earlier termination of this Sublease,
as aforesaid, until the Sublessee surrenders possession of the Premises to the
Sublessor, a sum equaling the entire penalty Sublessor shall be required to pay
Landlord under the Lease (which includes rent for the entire leased space under
the Lease) and (b) the Sublessee shall surrender possession of the Premises to
the Sublessor immediately on the Sublessor's having demanded the same. Nothing
in the provisions of this Sublease shall be deemed in any way to give the
Sublessee any right to

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remain in possession of the Premises after such expiration or termination,
regardless of whether the Sublessee has paid any such Rent to the Sublessor.

19.      NON-BINDING

     Submission of this instrument to Sublessee or proposed Sublessee or its
agents or attorneys for examination, review, consideration or signature does not
constitute or imply an offer to sublease, reservation of space, or option to
sublease, and this instrument shall have no binding effect until execution
hereof by both Sublessor and Sublessee or its agents.

                                      SUBLESSOR:
WITNESS/ATTEST:                       ST. PAUL FIRE REINSURANCE MANAGEMENT
                                      CORPORATION

____________________________          By:__________________________(SEAL)
                                      Name:
                                      Title:

                                      SUBLESSEE:

                                      PLATINUM REINSURANCE UNDERWRITERS, INC.

___________________________           By:__________________________(SEAL)
                                      Name:_________________________
                                      Title:__________________________

                                       6<PAGE>
                                                                   Exhibit 10.16

                            FORM OF OPTION AGREEMENT

NONE OF THE ST. PAUL OWNERSHIP OPTION, THE ST. PAUL PARTICIPATION OPTION (EACH
AS DEFINED BELOW) AND THE COMMON SHARES DELIVERABLE UPON EXERCISE OF EITHER THE
ST. PAUL OWNERSHIP OPTION OR THE ST. PAUL PARTICIPATION OPTION, HAVE BEEN
REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933. NEITHER OPTION NOR ANY
INTEREST THEREIN MAY BE ASSIGNED OR OTHERWISE TRANSFERRED, DISPOSED OF OR
ENCUMBERED EXCEPT FOLLOWING RECEIPT BY PLATINUM UNDERWRITERS HOLDINGS, LTD. (THE
"COMPANY") OF EVIDENCE SATISFACTORY TO IT, WHICH MAY INCLUDE AN OPINION OF
UNITED STATES COUNSEL, THAT SUCH TRANSFER DOES NOT REQUIRE REGISTRATION UNDER
THE SECURITIES ACT OR STATE SECURITIES LAWS AND UPON OBTAINMENT OF ANY REQUIRED
GOVERNMENT APPROVALS. TRANSFER OF EITHER THE ST. PAUL OWNERSHIP OPTION OR THE
ST. PAUL PARTICIPATION OPTION, OR ANY INTEREST THEREIN, MAY BE DISAPPROVED BY
THE BOARD OF DIRECTORS OF THE COMPANY IF, IN THEIR REASONABLE JUDGMENT, THEY
HAVE REASON TO BELIEVE THAT SUCH TRANSFER MAY EXPOSE THE COMPANY, ANY SUBSIDIARY
THEREOF, ANY SHAREHOLDER OR ANY PERSON CEDING INSURANCE TO THE COMPANY OR ANY
SUCH SUBSIDIARY TO ADVERSE TAX OR REGULATORY TREATMENT IN ANY JURISDICTION.
COMMON SHARES OBTAINED UPON EXERCISE OF THIS OPTION AGREEMENT ARE SUBJECT TO
SUBSTANTIAL RESTRICTIONS ON TRANSFER AS SET FORTH IN SECTION 5(C) OF THIS OPTION
AGREEMENT.

     This OPTION AGREEMENT is made this [ ] day of June, 2002 between PLATINUM
UNDERWRITERS HOLDINGS, LTD., a company organized under the laws of the Islands
of Bermuda (the "Company"), and THE ST. PAUL COMPANIES, INC., a company
incorporated under the laws of the State of Minnesota in the United States of
America ("St. Paul").

                                R E C I T A L S :
                                ----------------

     WHEREAS, the Company is contemplating an initial public offering (the
"Public Offering") of its common shares of par value U.S. $0.01 per share (the
"Common Shares");

     WHEREAS, St. Paul and the Company have entered into a Formation and
Separation Agreement, dated as of [ ], 2002 (the "Formation and Separation
Agreement") in which St. Paul and the Company have set forth certain terms of
their continuing relationship following the Public Offering;

     WHEREAS, as contemplated by the Formation and Separation Agreement,
contingent upon the consummation of the Public Offering, St. Paul will
contribute certain assets to the Company, in consideration for which the Company
intends to issue to St. Paul or its nominees (i) pursuant to a private
placement, a number of Common Shares equal to up to approximately 24.9% of all
Common Shares outstanding following the consummation of the Public Offering

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and the private placement (the "St. Paul Investment") subject to a sliding scale
based on the initial public offering price, whereby if the initial public
offering price of the Common Shares is less than $25, the number of Common
Shares issued to St. Paul in the St. Paul Investment will be reduced pro rata,
(ii) the St. Paul Ownership Option, as defined below, under the circumstances
specified in this Agreement; and (iii) the St. Paul Participation Option, as
defined below, under the circumstances specified in this Agreement; all
capitalized terms used but not defined herein shall have the meanings ascribed
to such terms in the Formation and Separation Agreement;

     NOW, THEREFORE, in furtherance of the transactions contemplated by the
Formation and Separation Agreement, and in consideration of the mutual promises,
covenants and agree ments set forth therein and herein, the receipt and
sufficiency of which are acknowledged, the parties hereby agree as follows:

1. (a) In the event St. Paul is issued less than 13,262,300 Common Shares (or
15,251,600 Common Shares, if the underwriters exercise their over-allotment
option in the Public Offering in full), PROVIDED that St. Paul may not purchase
more than ___________ Common Shares (or ____________ Common Shares, if the
underwriters exercise their over-allotment option in full), pursuant to the St.
Paul Ownership Option in the St. Paul Investment, the Company grants St. Paul an
option (the "St. Paul Ownership Option") to purchase such number of Common
Shares (the "St. Paul Ownership Option Shares") as is necessary to increase St.
Paul's actual ownership interest in the Common Shares following the completion
of the Public Offering and the St. Paul Investment to an approximate 24.9% of
such Common Shares so outstanding.

     (b) The St. Paul Ownership Option is exercisable, at an exercise price per
Common Share equal to the initial public offering price per Common Share (the
"St. Paul Ownership Option Price"), in whole or in part at any time prior to the
tenth anniversary of the completion of the Public Offering (the "St. Paul
Ownership Option Exercise Period").

     (c) The Company grants St. Paul an option (the "St. Paul Participation
Option"; with the St. Paul Ownership Option, each, an "Option") to purchase up
to 2 million Common Shares (the "St. Paul Participation Option Shares"; with the
St. Paul Ownership Option Shares, the "Option Shares").

     (d) The St. Paul Participation Option is exercisable at an exercise price
per share of 130% of the initial public offering price per Common Share (the
"St. Paul Participation Option Price"; with the St. Paul Ownership Option Price,
each, an "Option Price") in whole or in part at any time after the second
anniversary of the completion of the Public Offering and prior to the tenth
anniversary (the "St. Paul Participation Option Exercise Period"; with the St.
Paul Ownership Option Exercise Period, each, an "Exercise Period").

     (e) An "Exercise Date" is any day during an Exercise Period, other than a
Saturday, Sunday or other day on which banking institutions in New York City or
Bermuda are authorized or obligated by law or executive order to close (a
"Business Day"). An Option may be exercised

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as provided herein until 12:01 A.M., New York City time, on the first day after
the expiration of the Exercise Period.

     (f) St. Paul's ownership interest in the Common Shares may not, at any
time, exceed a percentage equal to 24.9% of the Common Shares outstanding. It is
agreed and understood that, prior to any exercise of the St. Paul Ownership
Option or the St. Paul Participation Option, as the case may be, St. Paul shall,
if necessary, dispose of such number of Common Shares that, immediately after
any exercise of either Option, St. Paul will not be a "United States 25%
Shareholder" as defined in the Company's bye-laws as in effect as of the
completion of the Public Offering.

     (g) Option Shares upon issue will rank equally in all respects with the
other Common Shares of the Company, but in no case will any Option Shares carry
any option or other right to subscribe for further additional shares.

     (h) St. Paul is not, solely by virtue hereof, entitled to any rights of a
shareholder in the Company either at law or in equity.

     (i) Upon any merger, amalgamation, consolidation, scheme of arrangement or
similar transaction involving the Company and any third party that is not a
subsidiary of the Company, or any sale of all or substantially all the assets of
the Company to any third party that is not a subsidiary of the Company (each, a
"Transaction") in which all holders of Common Shares become entitled to receive,
in respect of such shares, any capital stock, rights to acquire capital stock or
other securities of the Company or of any other person, any cash or any other
property, or any combination of the foregoing (collectively, "Transaction
Consideration"), the Options shall entitle St. Paul to receive all Transaction
Consideration that St. Paul would have been entitled to if it had exercised the
Options in full immediately prior to the Transaction [(to the extent it remains
unexercised and without regard to the limitations in Section 1(f) hereof)], in
each case upon payment by St. Paul of the Option Price as in effect immediately
prior to such time. In determining the kind and amount of Transaction
Consideration that St. Paul would be entitled to receive in respect of any
Transaction pursuant to this Section 1(i), St. Paul shall be entitled to
exercise any rights of election as to the kinds and amounts of consideration
receivable in such Transaction that are provided to holders of Common Shares in
such Transactions. Any adjustment in respect of a Transaction pursuant to this
Section 1(i) shall become effective immediately after the effective time of such
Transaction, retroactive to any record date therefor. The Company shall take
such action as is necessary to ensure that St. Paul shall be entitled to receive
Transaction Consideration upon the terms and conditions provided in this Section
1(i). Notwithstanding the foregoing, if an adjustment is made pursuant to this
Section 1(i) in respect of a Transaction that involves a Change of Control (as
defined below), St. Paul shall be entitled to exercise the Options pursuant to
this Section 1(i) without regard to Section 1(f) hereof. A Transaction is deemed
to involved a "Change of Control" if the beneficial owners of the outstanding
Common Shares immediately prior to the effective time of such Transaction are
not the beneficial owners of a majority of the total voting power of the
surviving or acquiring entity in the Transaction, as the case may be,
immediately after such effective time.

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2. (a) To exercise an Option in accordance with Section 1(b) or Section 1(d)
hereof, St. Paul shall provide written notice to the Company of its intention to
exercise all or a portion of such Option at least [five(5)] days prior to the
intended Exercise Date (such notice must indicate the number of Option Shares
St. Paul intends to purchase upon exercise of such Option and must be in writing
signed by or on behalf of St. Paul and delivered or sent by registered post to
the Company at its registered office). Upon such notice, if and to the extent
requested by St. Paul, the Company shall promptly commence the preparation of a
registration statement subject to the limitations of and in the manner provided
in the Registration Rights Agreement to be entered into between the Company and
St. Paul substantially in the form of Scheule __ hereto (as it may be amended
from time to time, the "Registration Rights Agreement") in order to permit St.
Paul to resell to the public up to the full number of Option Shares to be
purchased by it pursuant to such Option's exercise.

     (b) St. Paul may require Option Shares to be allotted to any nominee or
nominees of St. Paul.

     (c) The Company shall issue and allot Option Shares upon exercise of an
Option and payment of the total price payable therefor.

3. (a) In case the Company at any time after the date that the number of Common
Shares issuable pursuant to the Public Offering and the St. Paul Investment has
been determined:

          (A) declares or pays a dividend or makes any other distribution with
     respect to its capital stock in Common Shares such that the number of
     Common Shares outstanding is increased,

          (B) subdivides or splits-up its outstanding Common Shares, such that
     the number of Common Shares outstanding is increased,

          (C) combines its outstanding Common Shares into a smaller number of
     Common Shares or

          (D) effects any reclassification of the Common Shares other than a
     change in par value (including any such reclassification in connection with
     an amalgamation or merger in which the Company is the surviving entity or a
     reincorporation of the Company),

the number of Common Shares purchasable upon exercise of an Option be
proportionately adjusted so that St. Paul will be entitled to receive the kind
and number of Common Shares or other securities of the Company which it would
have been entitled to receive after the happening of any of the events described
above if such Option had been exercised immediately prior to the happening of
such event or any record date with respect thereto. An adjustment made pursuant
to this paragraph 3(a) become effective immediately after the effective date of
such event

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retroactive to the record date, if any, for such event.

     (b) In case the Company issues rights, options or warrants to all holders
of its out standing Common Shares entitling them to subscribe for or purchase
Common Shares at a price per share which is lower at the record date mentioned
below than the then Current Market Value (as defined in Section 3(d)), the
number of Option Shares that St. Paul may purchase thereafter upon the exercise
of an Option will be determined by multiplying the number of Option Shares
theretofore purchasable upon exercise of such Option by a fraction, of which the
numerator is the sum of (A) the number of Common Shares outstanding on the
record date for determining share holders entitled to receive such rights,
options or warrants plus (B) the number of additional Common Shares offered for
subscription or purchase, and of which the denominator shall be the sum of (A)
the number of Common Shares outstanding on the record date for determining share
holders entitled to receive such rights, options or warrants plus (B) the number
of shares which the aggregate offering price of the total number of Common
Shares so offered would purchase at the Current Market Value (as defined below
in Section 3(d)) per share of Common Shares at such record date. Such adjustment
shall be made whenever such rights, options or warrants are issued, and shall
become effective immediately after the record date for the determination of
shareholders entitled to receive such rights, options or warrants.

     (c) In the event the Company distributes to all holders of its Common
Shares any of the capital stock of any of its subsidiaries (each, a
"Subsidiary"), the Options will upon such distribution be deemed to be options
to purchase the kind and number of shares of the capital stock of the Subsidiary
which St. Paul would have been entitled to receive after such distribution had
the Options been exercised immediately prior to such distribution or any record
date with respect thereto. The roll-over of the Options into options to purchase
shares of capital stock of the applicable Subsidiary pursuant to this Section
3(c) will become effective immediately after the effective date of the
distribution of shares of the capital stock of the applicable Subsidiary to
shareholders of the Company described above.

     (d) For the purpose of any computation under Section 3(b), the "Current
Market Value" of such Common Shares on a specified date is deemed to be the
average of the daily closing prices per share for the ten consecutive Trading
Days (as defined below) ending on the day before the applicable record date.
"Trading Day" means each Monday, Tuesday, Wednesday, Thursday and Friday, other
than any day on which the Common Shares are not traded on the applicable
securities exchange or on the applicable securities market. The closing price
for each day is the reported last sale price regular way or, in case no such
reported sale takes place on such day, the average of the reported closing bid
and asked prices regular way, in either case on the New York Stock Exchange or,
if the Common Shares are not listed or admitted to trading on such Exchange, on
the principal national securities exchange on which the Common Shares are listed
or admitted to trading or, if not listed or admitted to trading on any national
securities exchange, on the NASDAQ National Market or, if the Common Shares are
not listed or admitted to trading on any national securities exchange or quoted
on the NASDAQ National Market, the average of the closing bid and asked prices
in the over-the-counter market as furnished by any New York Stock Exchange
member firm reasonably selected from time to time

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by the Board of Directors of the Company for that purpose.

     (e) Whenever the number of Common Shares purchasable by St. Paul upon the
exercise of an Option is adjusted, as herein provided, the Option Price be
adjusted by multiplying such Option Price immediately prior to such adjustment
by a fraction, of which the numerator shall be the number of Option Shares
purchasable upon the exercise of such Option immediately prior to such
adjustment, and of which the denominator shall be the number of Option Shares
purchasable immediately thereafter.

     (f) No adjustment in the number of Option Shares purchasable upon the
exercise of an Option need be made under Section 3(b) and (c) if the Company
issues or distributes, pursuant to this Agreement, to St. Paul the shares,
rights, options, warrants, securities or assets referred to in those paragraphs
which St. Paul would have been entitled to receive had such Option been
exercised prior to the happening of such event or the record date with respect
thereto. No adjustment need be made for a change in the par value of the Option
Shares.

     (g) For the purpose of this Section 3, the term "Common Shares" shall mean
(i) the class of stock consisting of the Common Shares of the Company, or (ii)
any other class of stock resulting from successive changes or reclassification
of such shares other than consisting solely of changes in par value. In the
event that at any time, as a result of an adjustment made pursuant to Section 3
(a) above, St. Paul will become entitled to receive any securities of the
Company other than Common Shares, thereafter the number of such other securities
so receivable upon exercise of an Option and the Option Price of such securities
will be subject to adjustment from time to time in a manner and on terms as
nearly equivalent as practicable to the provisions with respect to the Option
Shares contained in paragraphs (a) through (f), inclusive, above; PROVIDED,
HOWEVER, that the Option Price will at no time be less than the aggregate par
value of the Common Shares or other securities of the Company obtainable upon
exercise of such Option[, PROVIDED, FURTHER, that the Company shall reduce the
par value of its Common Shares or other securities from time to time as
necessary so that the foregoing shall not occur.]

     (h) In the case of Section 3(b), upon the expiration of any rights, options
or warrants or if any thereof shall not have been exercised, the Option Price
and the number of Common Shares purchasable upon the exercise of an Option
shall, upon such expiration, be readjusted and shall thereafter be such as they
would have been had they been originally adjusted (or had the original
adjustment not been required, as the case may be) as if (A) the only Common
Shares so issued were the Common Shares, if any, actually issued or sold upon
the exercise of such rights, options or warrants and (B) such Common Shares, if
any, were issued or sold for the consideration actually received by the Company
upon such exercise plus the aggregate consideration, if any, actually received
by the Company for the issuance, sale or grant of all such rights, options or
warrants whether or not exercised; PROVIDED, FURTHER, that no such readjustment
may have the effect of increasing the Option Price or decreasing the number of
Common Shares purchasable upon the exercise of such Option by an amount in
excess of the amount of the adjustment initially made in respect to the
issuance, sale or grant or such rights, options or warrants.

                                       6
<PAGE>

     (i) In the case of Section 3(b), on any change in the number of Common
Shares deliverable upon exercise of any such rights, options or warrants, other
than a change resulting from the antidilution provisions hereof, the number of
Option Shares thereafter purchasable upon the exercise of an Option shall
forthwith be readjusted to such number as would have been obtained had the
adjustment made upon the issuance of such rights, options or warrants not
converted prior to such change (or rights, options or warrants related to such
securities not converted prior to such change) been made upon the basis of such
change.

     (j) The Company may at its option, at any time during the term of the
Options, reduce the then current Option Price to any amount and for any period
of time deemed appropriate by the Board of Directors of the Company, including
such reductions in the exercise price as the Company considers to be advisable
in order that any event treated for Federal income tax purposes as a dividend of
stock or stock rights shall not be taxable to the recipients.

4. The Company undertakes to increase its authorized share capital prior to the
dates upon which the Options shall become exercisable to a level sufficient to
satisfy any exercise of the Options.

5. (a) The Options may not be assigned or otherwise transferred, disposed of or
encumbered by St. Paul (or any subsequent transferee) in whole or in part except
as provided in this Section 5.

     (b) In the event of an amalgamation of the Company with or merger of the
Company into another person, or a sale, transfer or lease to another person
(each such person, a "Successor Person") of all or substantially all the assets
of the Company, the Options may be transferred to a person which is a
shareholder, partner or other affiliated person (directly or indirectly) of such
Successor Person.

     (c) On and after the date which is the second anniversary of the closing
date of the Public Offering, St. Paul may transfer the Options, in whole or in
part, in one or more private transaction(s) TO UP TO THREE INSTITUTIONAL
INVESTORS; PROVIDED, HOWEVER, that any proposed transfer is conditioned upon

          (i) receipt by the Company of evidence satisfactory to it, which may
     include an opinion of United States counsel that such transfer would not
     require registration under the Securities Act or state securities laws and
     upon the obtainment of any required government approvals (which approvals
     the Company agrees to use commercially reasonable efforts to assist in
     obtaining); and

          (ii) the proposed transferee executing and delivering instruments
     reasonably acceptable to the Company acknowledging

               (A) that the Option Shares have not been registered under the

                                       7
<PAGE>

          Securities Act and, accordingly, the transferee may not offer, sell,
          assign, pledge or otherwise transfer any Option Shares except pursuant
          to an effective registration statement under the Securities Act
          covering such Option Shares or pursuant to an available exemption from
          the registration requirements of the Securities Act;

               (B) that the Company is entitled to decline to register any
          transfer of Option Shares, and any transfer of Option Shares shall be
          void, unless (i) such transfer is made pursuant to and in accordance
          with Rule 144 (PROVIDED that the Company (or its designated agent for
          such purpose) may request a certificate satisfactory to it of
          compliance by the transferor with the requirements of Rule 144), (ii)
          such transfer is made pursuant to another available exemption from the
          registration requirements of the Securities Act (PROVIDED that, if not
          already a party hereto, the intended transferee agrees to abide by the
          provisions of this Section 5(c)(ii), and PROVIDED, FURTHER, that, if
          the Company requests, the transferor first provides the Company (or
          such agent) with evidence satisfactory to it, which may include an
          opinion of U.S. counsel satisfactory to the Company, to the effect
          that such transfer is made pursuant to another available exemption
          from the registration requirements of the Securities Act) or (iii)
          such transfer is made pursuant to an effective registration statement
          under the Securities Act covering the Option Shares being transferred,
          including a registration statement filed pursuant to the Registration
          Rights Agreement (the Company being entitled to waive or modify the
          foregoing transfer requirements, generally or in any particular case,
          to the extent that it determines, on advice of U.S. counsel, that
          compliance with such requirements is not necessary to ensure
          compliance with the Securities Act, or such modification is necessary
          to ensure compliance with the Securities Act, as the case may be);

               (C) that, except as provided below, no Option Share shall be held
          in book-entry form, and each certificate representing an Option Share
          shall be evidenced by a certificate bearing a restrictive legend (the
          "Legend") substantially in the form set forth below:

          THE COMMON SHARES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
          U.S. SECURITIES ACT OF 1933 (THE "SECURITIES ACT") AND MAY NOT BE
          OFFERED, SOLD, ASSIGNED, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT
          PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
          ACT OR AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
          THE SECURITIES ACT. SUCH SHARES MAY NOT BE HELD IN BOOK- ENTRY FORM.
          SUCH SHARES ARE ALSO SUBJECT TO RESTRICTIONS ON TRANSFER IN THE OPTION
          AGREEMENT, DATED AS OF JUNE [ ], 2002, BETWEEN THE ST. PAUL COMPANIES,
          INC. AND PLATINUM UNDERWRITERS HOLDINGS, LTD. (THE "COMPANY"), WHICH
          MAY REQUIRE, AMONG OTHER THINGS, THE PRIOR RECEIPT BY THE COMPANY FROM
          THE TRANSFEROR OR

                                       8
<PAGE>

          THE TRANSFEREE OF EVIDENCE SATISFACTORY TO IT, WHICH MAY INCLUDE AN
          OPINION OF U.S. COUNSEL OR UNDERTAKINGS TO BE BOUND BY SUCH AGREEMENT.
          SUCH SHARES ARE ALSO SUBJECT TO RESTRICTIONS IN THE BYE-LAWS OF THE
          COMPANY, INCLUDING RESTRICTIONS ON TRANSFER INTENDED TO ENSURE THAT NO
          PERSON BECOMES OR IS DEEMED TO BECOME A 10% SHAREHOLDER OF THE COMPANY
          (AS EXPLAINED IN SUCH BYE-LAWS).

          and

               (D) that the transferee shall become a party to the Registration
          Rights Agreement, with the attendant rights and obligations
          thereunder; PROVIDED, FURTHER, that any proposed transfer may be
          disapproved by the Board of Directors of the Company if, in their
          reasonable judgment, they have reason to believe that such transfer
          may expose the Company, any subsidiary thereof, any shareholder or any
          person ceding insurance to the Company OR ANY SUCH SUBSIDIARY TO
          ADVERSE TAX OR REGULATORY TREATMENT IN ANY JURISDICTION. In connection
          with or following any transfer of Option Shares in accordance with
          clause (i) or (iii) of Section 5(c)(ii)(B), and upon the surrender of
          any certificate or certificates representing such Option Shares to the
          Company (or such agent), the Company shall cause to be issued in
          exchange therefor a new certificate or certificates that represent the
          same Common Shares and do not bear the Legend (or shall permit such
          shares to be held in book-entry form). The Company shall cause each
          Option Share transferred as contemplated by clause (i) or (iii) of
          Section 5(c)(ii)(B) to be duly listed on each securities exchange, and
          to be accepted for quotation in each interdealer quotation system, on
          or in which any Common Shares are listed or quoted at the time of such
          transfer (PROVIDED that the approval for such listing or quotation has
          been obtained by the Company), in each case so that the Option Share
          so transferred will be freely transferable on each such exchange and
          in each such system to the same extent as the Common Shares then
          listed thereon or quoted therein.

     (d) In connection with any transfer of all or a portion of an Option
pursuant to Section 5(c), the Company shall prepare an Option Agreement (or, in
the case of a partial transfer, Option Agreements) issuable to the transferee
(and transferor, in the case of partial transfer) upon surrender to the Company
of the existing Option Agreement upon consummation of the transfer. Upon said
consummation, the transferee shall have such rights and obligations with respect
to the number of Option Shares covered by the portion of such Option transferred
to such transferee as the rights and obligations of St. Paul hereunder. As used
herein, "10% Shareholder" means a person who owns, in aggregate, (i) directly,
(ii) with respect to persons who are United States persons, by application of
the attribution and constructive ownership rules of Sections 958(a) and 958(b)
of the Code or (iii) beneficially, directly or indirectly, within the meaning of
Section 13(d)(3) of the United States Securities Exchange Act of 1934, issued
shares of the Company carrying 10% or more of the total combined voting rights
attaching to all issued

                                       9
<PAGE>

shares.

     (e) Any transferee of all or part of an Option pursuant to Section 5(c)
hereof (or any subsequent transferee who holds any portion of such Option as a
result of a transfer pursuant to this Section 5(e)) may transfer, in whole but
not in part, its portion of such Option to a subsequent transferee; PROVIDED
that any such transfer shall be subject to the terms and conditions set forth in
Section 5(c) and 5(d) hereof.

6. The issuance of share certificates upon the exercise of an Option shall be
without charge to St. Paul. The Company shall pay, and indemnify St. Paul from
and against, any issuance, stamp, documentary or other taxes (other than
transfer taxes and income taxes), or charges imposed by any governmental body,
agency or official by reason of the exercise of such Option or the resulting
issuance of Common Shares.

7. This Agreement shall be governed by and construed in accordance with the laws
of New York, without regard to principles regarding conflicts of laws.

                                       10
<PAGE>

     IN WITNESS WHEREOF, the parties have caused this Agreement to be signed and
attested by its duly authorized officers and to be dated as of _______________,
2002.

                                   PLATINUM UNDERWRITERS HOLDINGS, LTD.

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

                                   THE ST. PAUL COMPANIES, INC.

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

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