Document:

Exhibit 10.2

XL GROUP PLC

DIRECTORS STOCK & OPTION PLAN

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

                    1.
PURPOSES 

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

                    2.
DEFINITIONS

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

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

	
  

 	
  

 
	
  

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

 

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

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

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

	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 

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

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

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

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

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

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

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

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

                    3.
ADMINISTRATION

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

                    4.
SHARES SUBJECT TO THE PLAN

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

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

                    5.
DIRECTOR’S AWARDS

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

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

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

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

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

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

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

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

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

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

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

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

                    6.
DIRECTOR’S FEES

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

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

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

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

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

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

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

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

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

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

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

                    7.
GENERAL PROVISIONS

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

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

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

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

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

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

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

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

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

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

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

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

7Exhibit 10.3

XL GROUP plc

SUPPLEMENTAL DEFERRED COMPENSATION PLAN

          XL Group
plc (the “Company”) adopted the XL Group plc Supplemental Deferred Compensation
Plan (the “Plan”), effective as of January 1, 2000. Except as otherwise
provided below, the Plan is hereby amended and restated effective January 1,
2007, to comply with Code Section 409A, as enacted by the American Jobs
Creation Act of 2004 and applicable regulations thereunder; provided, however,
that any provision required to be effective on and after January 1, 2005
in order for the Plan to comply with Code Section 409A shall become effective
as of January 1, 2005 (or such later date as shall be permitted under
applicable Code Section 409A transition rules). 

          The Plan is
unfunded and maintained primarily for the purpose of providing deferred
compensation to a select group of management or highly compensated employees,
and is not intended to be qualified under Section 401(a) of the Internal
Revenue Code.

ARTICLE I

DEFINITIONS

          Each word
used herein not defined below that begins with a capital letter and is defined
in the Qualified Plan shall have the same definition as the definition given to
that word in the Qualified Plan. Wherever used herein, the following terms
shall have the meanings hereinafter set forth:

          1.1 “Account”
or “Deferred
Compensation Account” means the separate account established
under the Plan for each Participant, as described in Section 5.1.

          1.2 “Administrator”
means the Committee or such person or persons as may be appointed by the
Committee to be responsible for those functions assigned to the Administrator
under the Plan.

          1.3 “Affiliate”
means any entity that is a member of a “controlled group” of corporations with
the Company under Code Section 414(b) or a trade or business under common
control with the Company under Code Section 414(c); provided, however, that
solely for purposes of determining whether a Termination of Employment has
occurred, in applying Code Sections 1563(a)(1), (2) and (3) for purposes of
Code Section 414(b), the language “at least 50 percent” will be used instead of
“at least 80 percent” each place it appears, and in applying Treasury
Regulation Section 1.414(c)-2 for purposes of Code Section 414(c), the language
“at least 50 percent” will be used instead of “at least 80 percent” each place
it appears. In addition, to the extent that the Administrator determines that
legitimate business criteria exist to use a reduced ownership percentage to
determine whether an entity is an Affiliate for purposes of determining whether
a Termination of Employment has occurred, the Administrator may designate an
entity that would meet the definition of “Affiliate” substituting 20 percent in
place of 50 percent in the preceding sentence as an Affiliate in Appendix A
hereto. Such designation shall be made by December 31, 2007 or, if later, at
the time a 20 percent or more ownership interest in such entity is acquired.

          1.4 “Annual
Bonus” means any cash compensation to which a Participant
becomes entitled under a written plan or arrangement of a Participating
Employer providing for the calculation and payment of incentive compensation
with respect to a Plan Year after the close of such Plan Year, determined prior
to reduction for elective deferrals to this Plan or to any qualified retirement
plan, and for premium conversion and flexible spending amounts under a
cafeteria plan described in Code Section 125. 

          1.5 “Base
Salary” means the salary to which a Participant becomes entitled
from a Participating Employer during or with respect to a Plan Year, including
commissions, but not including Annual Bonus or other incentive Compensation,
determined prior to reduction for elective deferrals to this Plan or to any qualified
retirement plan, and for premium conversion and flexible spending amounts under
a cafeteria plan described in Code Section 125; provided, however, that
Annual Salary shall not include expense reimbursements, severance, or the value
of any benefits paid to or on behalf of the Executive under any fringe benefit,
pension or insurance plan or program. Only Annual Salary which becomes payable
while the Executive is a Participant shall be taken into account for purposes
of the Plan.

          1.6 “Beneficiary”
means the person, persons or trust designated by a Participant as direct or
contingent beneficiary in the manner prescribed by the Administrator. The
Beneficiary of a Participant who has not effectively designated a beneficiary
shall be the Participant’s estate.

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

          1.8 “Change in
Control” shall mean and shall be deemed to have occurred as of
the date of the first to occur of the following events:

	
  

 	
  

 
	
  

 	
           (a) any
 Person or Group acquires 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, including but not
 limited to a transaction pursuant to i) a compromise or arrangement
 sanctioned by the Court under section 201 of the Companies Act 1963 of the
 Republic of Ireland or ii) section 204 of the Companies Act 1963 of the
 Republic of Ireland. However, if any Person or 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 Group is not considered to cause a Change in Control of the Company. An
 increase in the percentage of stock owned by any Person or Group as a result
 of a transaction in which the Company acquires its stock in exchange for
 property will be treated as an acquisition of stock for purposes of this
 subsection. This subsection applies only when there is a transfer of stock of
 the Company (or issuance of stock of the Company) and stock in the Company
 remains outstanding after the transaction; 

 
	
  

 	
  

 
	
  

 	
           (b) any
 Person or Group acquires (or has acquired during the 12-month period ending
 on the date of the most recent acquisition by such Person or Group) ownership
 of stock of the Company possessing 30% or more of the total voting power of
 the stock of the Company; 

 

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           (c) a
 majority of members of the Company’s 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 Company’s Board prior to the date of the
 appointment or election; or 

 
	
  

 	
  

 
	
  

 	
           (d) any
 Person or Group acquires (or has acquired during the 12-month period ending
 on the date of the most recent acquisition by such Person or Group) 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 prior to such acquisition or acquisitions. For this purpose,
 gross fair market value means the value of the assets of the Company, or the
 value of the assets being disposed of, determined without regard to any
 liabilities associated with such assets. However, no Change in Control shall
 be deemed to occur under this subsection (d) as a result of a transfer to:

 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (i)
 A shareholder of the Company (immediately before the asset transfer) in
 exchange for or with respect to its stock; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii)
 An entity, 50% or more of the total value or voting power of which is owned,
 directly or indirectly, by the Company; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iii)
 A Person or Group that owns, directly or indirectly, 50% or more of the total
 value or voting power of all the outstanding stock of the Company; or 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iv)
 An entity, at least 50% of the total value or voting power of which is owned,
 directly or indirectly, by a person described in clause (iii) above. 

 

          For these
purposes, the term “Person” shall mean an individual, corporation,
association, joint-stock company, business trust or other similar organization,
partnership, limited liability company, joint venture, trust, unincorporated
organization or government or agency, instrumentality or political subdivision
thereof. The term “Group” shall have the meaning set forth in Rule 13d-5
of the Securities Exchange Commission (“SEC”), modified to the extent necessary
to comply with Treasury Regulation Section 1.409A-3(i)(5), or any successor
thereto in effect at the time a determination of whether a Change in Control
has occurred is being made. If any one Person, or Persons acting as a Group, is
considered to effectively control the Company as described in subsections (b) or
(c) above, the acquisition of additional control by the same Person or Persons
is not considered to cause a Change in Control. 

          1.9 “Committee”
means the Compensation Committee, or such other committee of the Board or
Management, which is authorized to administer the Plan and to perform the
functions described in Article VII. 

          1.10 “Company”
means XL Group plc.

          1.11 “Compensation”
means Base Salary and/or Annual Bonus, as applicable, determined prior to
reduction for elective contributions to this Plan, the Qualified Plan or any
other employee benefit plan of the Participating Employer.

- 3 -

          1.12 “Deferral
Period” means the period described in Section 3.3 of the Plan.

          1.13 “Disability”
means that the Participant (a) is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment
that can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months; (b) is, by reason of any
medically determinable physical or mental impairment that can be expected to
result in death or can be expected to last for a continuous period of not less
than 12 months, receiving income replacement benefits for a period of not less
than 3 months under an accident and health plan covering employees of the
Company; or (c) has been determined to be totally disabled by the Social
Security Administration.

          1.14 “Effective
Date” means January 1, 2007. Any provision of this amendment
and restatement required to be effective on and after January 1, 2005 in
order for the Plan to comply with Code Section 409A shall become effective as
of January 1, 2005 (or such later date up to January 1, 2007 as shall
be permitted under applicable Code Section 409A transition rules).

          1.15 “Elective
Deferral” means the amount of Compensation a Participant elects
to defer pursuant to Article III of the Plan.

          1.16 “Eligible
Executive” or “Executive” means (a) the Chairman of
the Company and each other member of a select group of management or highly
compensated employees of the Participating Employers who has been selected to
be a Participant in the Plan by the Committee; and (b) for periods prior to
January 1, 2008, employees of a Participating Employer who either (i) have
Excess Compensation for the Plan Year, or (ii) have elected to make elective
deferrals to the Qualified Plan that exceed the dollar limitation on pre-tax
contributions set forth in Section 402(g) of the Code. Eligible Executives
shall be selected from among a select group of management or highly compensated
employees, and shall be citizens or residents of the United States.

          1.17 “Excess
Compensation” means the Participant’s Compensation payable
during a Plan Year which exceeds the limitation on compensation applicable to
qualified plans under Code Section 401(a)(17), as such limitation may be
adjusted from time to time.

          1.18 “Hardship”
means an unforeseeable emergency that is caused by an event beyond the control
of the Participant that would result in severe financial hardship to the
Participant resulting from (a) a sudden and unexpected illness or accident
of the Participant or the spouse or a dependent of the Participant (as defined
in Code Section 152(a)), (b) a 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, for example, not as a result of a natural
disaster), or (c) such other extraordinary and unforeseeable circumstances
arising as a result of events beyond the control of the Participant, all as
determined in the sole discretion of the Administrator. In addition, the need
to pay for medical expenses, including non-refundable deductibles, as well as
for the costs of prescription drug medication, or the need to pay for the
funeral expenses of a spouse or a dependent may also constitute a Hardship
event. The Administrator shall determine whether the circumstances presented by
the Participant constitute an unanticipated emergency. Such circumstances and
the Administrator’s determination will depend on the facts of each case, 

- 4 -

but, in any case, payment may not be made to the extent that such
hardship is or may be relieved as described in Sections 6.1.1 through 6.1.4
below.

          1.19 “Key
Employee” means a “key employee” as defined for purposes of Code
Section 416(i), without regard to paragraph (5) thereof, of the Company or any
Affiliate, subject to the following modifications. An employee is a Key
Employee if, as of the date of determination, he or she is (a) one of the 50
(or, if less, the greater of three or 10% of all employees) highest-paid
officers of the Company or any Affiliate having annual compensation greater
than $135,000 (as adjusted under Code Section 415(d)); (b) a 5% owner of the
Company or any Affiliate; or (c) a 1% owner of the Company or any Affiliate
having annual compensation of more than $150,000. If an individual is a Key
Employee at any time during the twelve month period ending on December 31 of a
Plan Year, he or she shall be treated as a Key Employee for the 12-month period
beginning on April 1 of the Plan Year following such December 31. For purposes
of this Section 1.19, the term “compensation” will be defined in accordance
with Treasury Regulation Section 1.415(c)-2(d)(2); provided, however, that
compensation paid to or on behalf of an individual who is not a Participant and
who is a non-resident alien of the U.S. will not be taken into account
hereunder to the extent that the compensation is not includable in gross income
under the Code and is not effectively connected to the conduct of a trade or
business within the U.S. Whether an individual is a Key Employee will be
determined in accordance with the requirements of Code Section 409A.

          1.20 “Matching
Contribution” means the amounts credited to a Participant’s
Account under Article IV of the Plan with respect to Elective Deferrals.

          1.21 “Participant”
means an Executive or former Executive who elects to participate in the Plan in
accordance with the terms and conditions of the Plan or who has an Account in
the Plan that has not been fully distributed.

          1.22 “Participating
Employer” means the Company, XL Capital Ltd, XL Financial Solutions
Ltd, XL Insurance (Bermuda) Ltd, XL Re Ltd, XL Investment Management Ltd, XL
Life Ltd, XL Services (Bermuda) Ltd, XL Re Latin America Ltd, XL Financial
Assurance Ltd, and each other Affiliate that, with the approval of the
Administrator, joins the Plan by executing a declaration of joinder..

          1.23 “Plan”
means XL Group plc Supplemental Deferred Compensation Plan, as set forth herein
or as it may be amended or restated from time to time.

          1.24 “Plan Year”
means the calendar year.

          1.25 “Qualified
Plan” means the XL America, Inc. Employee Savings Plan, as from
time to time amended.

          1.26 “Scheduled
Distribution” means a distribution from a Participant’s
Scheduled Distribution Sub-Account in accordance with Section 6.3.

- 5 -

          1.27 “Scheduled
Distribution Sub-Accounts” or “Sub-Accounts” means
the separate bookkeeping accounts established by the Administrator under
Section 5.1 to record the portion(s) of a Participant’s Account subject to
separate Scheduled Distribution elections.

          1.28 “Termination
of Employment” means, with respect to an Executive, the severing
of employment with the Company and any Affiliates, voluntarily or
involuntarily, for any reason. A Termination of Employment will be deemed to have
occurred if the facts and circumstances indicate that the Company and the
Participant reasonably anticipate that no further services will be performed
after a certain date or that the level of bona fide services the Participant will
perform for the Company and its Affiliates after such date (whether as an
employee or as an independent contractor) will permanently decrease to no more
than 20% of the average level of bona fide services performed (whether as
an employee or an independent contractor) over the immediately preceding
36-month period (or the full period of services to the employer if the
Participant has been providing services to the Company and its Affiliates less
than 36 months). A Participant will not be deemed to have incurred a Termination
of Employment while he or she is on military leave, sick leave, or other bona fide leave of absence (such as
temporary employment by the government) if the period of such leave does not
exceed six months or such longer period as the Participant’s right to reemployment
with the Company is provided either by statute or by contract. For this
purpose, a leave of absence is bona fide
only if there is a reasonable expectation that the Participant will return to
employment at the conclusion of the leave. If the period of leave exceeds six
months and the Participant’s right to reemployment is not provided either by
statute or by contract, the Termination of Employment will be deemed to occur
on the first date immediately following such six-month period. Whether an individual
has incurred a Termination of Employment shall be determined in accordance with
the provisions of Section 409A.

          1.29 “Valuation
Date” means the close of business of each business day, or such
other valuation date or dates established by the Administrator.

ARTICLE II

PARTICIPATION

          2.1 Eligibility.
Each Executive may become a Participant upon the effective date of his or her
designation as an Executive eligible for participation in the Plan by the
Committee. For Plan Years prior to January 1, 2007, Eligible Executives
described in Section 1.16(b) shall automatically be enrolled in the Plan.

          2.2 Participation
in the Plan. An Eligible Executive may elect to participate in
the Plan for any Plan Year by delivering to the Administrator a properly
executed election at the time and in the form provided by the Administrator,
pursuant to which the Eligible Executive elects to defer receipt of a specified
portion of the Compensation that would otherwise be payable to such Executive
for the Plan Year, as described in Article III hereof.

          2.3 Cessation
of Participation. An Executive shall cease to be a Participant
in the Plan if (a) he or she incurs a Termination of Employment for any reason,
(b) he or she remains in the service of a Company but ceases to be an Eligible
Executive as described in Section 1.16 due 

- 6 -

to a change in employment status, except to the extent that the
Committee determines otherwise, or (c) the Plan is terminated or otherwise
amended so that the Executive ceases to be eligible for participation;
provided, however, that such individual shall continue to be a Participant
solely with respect to his or her vested Account balance until such Account
balance is distributed from the Plan. Such cessation of participation shall be
effective upon the date of the change in status described in clause (a) or (b)
above, or upon the effective date of an amendment or termination of the Plan
described in clause (c) above. 

ARTICLE III

DEFERRAL OF COMPENSATION

          3.1 Election
to Defer. A Participant may elect to defer receipt of a portion
of his or her Compensation for a Plan Year by delivering a properly executed
election to the Administrator within the time specified in Section 3.2.
The Participant’s election shall be in a written form acceptable to the
Administrator and shall specify:

	
  

 	
  

 
	
  

 	
           3.1.1. the whole percentage of Excess Compensation for the Plan Year
 to be deferred to the Plan, which percentage may not exceed 5%;

 
	
  

 	
  

 
	
  

 	
           3.1.2. the whole percentage of Base Salary, other than Annual Bonus,
 for the Plan Year to be deferred to the Plan, which percentage may not exceed
 50%; 

 
	
  

 	
  

 
	
  

 	
           3.1.3. the whole percentage of Annual Bonus for the Plan Year to be
 deferred to the Plan, which percentage may not exceed 100% (reduced as
 necessary to provide for the deferral under Section 3.1.1);

 
	
  

 	
  

 
	
  

 	
           3.1.4. if applicable, the investment fund or funds in which the
 Participant’s Elective Deferrals, and Matching Contributions attributable to
 such Elective Deferrals, will be deemed to be invested pursuant to Section
 5.2; 

 
	
  

 	
  

 
	
  

 	
           3.1.5. if applicable, the specific Scheduled Distribution Sub-Account
 or Sub-Accounts into which all or a portion of such Elective Deferrals and
 Matching Contributions will be directed, as described in Section 6.3; and

 
	
  

 	
  

 
	
  

 	
           3.1.6. to the extent permitted by the Administrator under Section
 6.4.1, the payment commencement date and method of distribution to apply to
 benefits distributable upon the Participant’s Termination of Employment. 

 

          The
deferral percentages under Section 3.1.2 and 3.1.3 shall be applied without
regard to an election to defer under Section 3.1.1. For Plan Years prior to
January 1, 2007, an Eligible Executive described in Section 1.16(b) shall
be deemed to have elected to contribute to the Plan (i) 5% of his or her Excess
Compensation for the Plan Year, or (ii) the amount of elective deferrals the
Participant has elected to contribute to the Qualified Plan for the Plan Year
in excess of the dollar limitation on pre-tax contributions set forth in
Section 402(g) of the Code. Such a Participant may elect not to make such
contributions to the Plan by filing an election not to participate acceptable
to the Administrator within the time set forth in Section 3.4.1. A

- 7 -

Participant described in Section 1.16(b)(ii) shall not be
permitted to change his or her deferral election to the Qualified Plan during
the applicable Plan Year.

          Elective
Deferrals to the Plan shall be reduced to the extent necessary to pay federal,
state or local employment taxes, including applicable FICA and FUTA taxes
required to be withheld under Sections 3101 and 3501, respectively, of the
Code, and any other required withholdings as determined by the Administrator. 

          An
Executive who elects not to participate in the Plan at the time he or she first
becomes eligible to do so may elect to become a Participant in any subsequent
Plan Year by filing an election to defer Compensation as described above within
the time provided in Section 3.2, provided that he or she is then eligible
to participate in the Plan.

          3.2 Date for
Filing Election.

	
  

 	
  

 
	
  

 	
           3.2.1.
 Except as provided below, an election to defer Compensation to be earned in a
 Plan Year shall be filed by the Participant with the Administrator as of a
 date established by the Administrator which is no later than December 31 of
 the Plan Year preceding the year in which such Compensation is earned.

 
	
  

 	
  

 
	
  

 	
           3.2.2. In
 the case of an individual first employed as an Executive or first becoming
 eligible for this Plan (and any similar account-based deferred compensation
 plan of the Company) during a Plan Year, an election to defer Compensation
 (which may include Annual Bonus) earned subsequent to the initial date of
 employment or eligibility and subsequent to the date of such election may, to
 the extent permitted by the Plan Administrator, be filed by such Executive
 with the Administrator within thirty (30) days of such initial date of
 service or eligibility.

 
	
  

 	
  

 
	
  

 	
           3.2.3. An
 election to defer Annual Bonus meeting the requirements for
 “performance-based” compensation under Treasury Regulation Section
 1.409A-1(e) shall be filed with the Administrator as of a date established by
 the Administrator which is at least six months prior to the end of the
 performance period in which such Annual Bonus is earned, provided that (a)
 performance criteria have been established in writing by not later than 90
 days after the commencement of the applicable performance period and the outcome
 is substantially uncertain at the time the criteria are established, (b) the
 Participant is in employment with the Company continuously from the later of
 the beginning of the performance period or the date such performance criteria
 are set, and (c) the election is made before such performance-based
 compensation has become readily ascertainable (i.e., is both calculable
 in amount and substantially certain to be paid).

 

          3.3 Deferral
Period. The Deferral Period for a Participant’s Compensation earned
during any Plan Year shall begin on the first day of such Plan Year, provided
that the Participant has filed an election to defer Compensation prior thereto,
as described in Section 3.2.1. Notwithstanding the foregoing, in the case
of an individual who is first employed as an Executive or who first becomes
eligible for participation during a Plan Year, the Deferral Period shall begin
as of the first day of the payroll period beginning after the filing of a
timely election 

- 8 -

by the Participant in such Plan Year, as described in Section 3.2.2. In
each case, such Deferral Period shall end on the last day of the Plan Year. The
Deferral Period for Annual Bonus meeting the requirements for
“performance-based” compensation under Treasury Regulation Section 1.409A-1(e)
shall be the performance period (which shall not be shorter than a Plan Year)
to which such Annual Bonus relates. 

          3.4 Revocation
or Change of Deferral Election.

	
  

 	
  

 
	
  

 	
           3.4.1. A
 Participant may not voluntarily revoke or amend an election to defer
 Compensation under Section 3.1.1 after commencement of the Deferral Period.
 Such election shall automatically expire at the conclusion of the applicable
 Deferral Period, unless renewed within the time provided in Section 3.2.

 
	
  

 	
  

 
	
  

 	
           3.4.2. A
 Participant may not revoke or amend an election to defer Annual Bonus meeting
 the requirements for “performance-based” compensation under Treasury
 Regulation Section 1.409A-1(e) after a date established by the Administrator
 which is not later than six months prior to the end of the performance period
 in which such Annual Bonus is earned; except that an election to defer Annual
 Bonus under Section 3.2.2 may not be revoked during the Deferral Period.

 
	
  

 	
  

 
	
  

 	
           3.4.3.
 Notwithstanding the above, if a Participant incurs a Hardship, the
 Participant’s Elective Deferrals under this Plan may, upon the request of the
 Participant and with the consent of the Administrator, be permanently
 suspended for a period of six (6) months (the “suspension period”). At the
 end of the suspension period, the Participant’s Elective Deferrals shall
 automatically resume, provided that the Participant has timely filed a
 deferral election under Sections 3.1 and 3.2 with respect to the Deferral
 Period in effect when the suspension period ends.

 

          3.5 Vesting
of Elective Deferrals. A Participant shall be 100% vested in the
balance of his or her Deferred Compensation Account attributable to Elective
Deferrals at all times.

ARTICLE IV

COMPANY CONTRIBUTIONS

          4.1 Matching
Contributions. For each Plan Year in which a Participant elects
under Section 3.1.1 to defer Excess Compensation, the Company shall make a
Matching Contribution to the Participant’s Deferred Compensation Account equal
to 140% (or such other percentage as the Board of Directors shall determine) of
the amount of such Elective Deferral up to 5% of Excess Compensation.

          4.2 Company
Profit Sharing Contributions. The Board of Directors may, in its
sole discretion, make such additional contributions to the Plan for a Plan Year
as it determines from time to time. Such contributions shall be allocated among
Participants in such manner as the Board of Directors shall determine at the
time the contribution is determined.

          4.3 Vesting of
Company Contributions. A Participant shall be vested in the
balance of his or her Deferred Compensation Account attributable to Matching
Contributions to the same 

- 9 -

extent that the Participant is vested in matching contributions under
the terms of the Qualified Plan. Unless the Board of Directors determines
otherwise, a Participant shall be vested in the balance of his or her Deferred
Compensation Account attributable to Company contributions under Section 4.2 to
the same extent that the Participant is vested in similar Company contributions
under the terms of the Qualified Plan. All benefits under the Plan shall become
100% vested upon the occurrence of a Change in Control.

ARTICLE V

INVESTMENT OF DEFERRED COMPENSATION

          5.1 Deferred
Compensation Account. The Administrator shall establish a
Deferred Compensation Account on the books of the Plan for each Participant,
reflecting Elective Deferrals, Matching Contributions and other Company
contributions made for the Participant’s benefit, together with any adjustments
for income, gain or loss attributable thereto under Section 5.2, and any
payments, distributions, transfers or forfeitures therefrom. The opening
balance of the Participant’s Deferred Compensation Account as of January 1,
2007 shall equal the balance of such Account as of the close of the preceding
business day. 

          5.2 Time for
Crediting Contributions. Elective Deferrals to the Plan with
respect to any pay period will normally be credited to the Participant’s
Account within five (5) business days of the date that corresponding
contributions attributable to Compensation earned in such pay period are
credited under the Qualified Plan or would otherwise be paid to the
Participant; provided, however, that no adjustment of earnings or losses shall
be made with respect to Elective Deferrals under Section 5.3 prior to the
earlier of (a) the 15th business day of the calendar month following
the calendar month in which the Elective Deferral would otherwise have been
paid to the Participant but for the Participant’s deferral election, or (b) the
date such amounts are actually credited to the Participant’s Account on the
books of the Plan. Company contributions for any Plan Year will be credited to
the Plan no later than the date for filing the Company’s Federal income tax
returns for the Company’s corresponding fiscal year, with extensions.

          5.3 Hypothetical
Investment of Accounts. The Deferred Compensation Account of a
Participant, including each Sub-Account thereof, shall be adjusted as of each
Valuation Date to reflect the income, gain or loss that would accrue to such
Account, if assets in the Account were invested as described in this
Section 5.2. Each Participant shall direct the hypothetical investment of
the Elective Deferrals and Matching Contributions credited to the Plan on his
or her behalf among such investment funds as are from time to time made
available by the Committee. A Participant may, as of any Valuation Date, change
the investment allocation of future Elective Deferrals or Matching
Contributions, and may elect to transfer all or a portion of the balance of his
or her Account hypothetically invested in one investment fund to any other
investment fund or funds then available under the Plan, by directing the Administrator
in such form and at such time as the Administrator shall require.

          The
hypothetical investment fund options available under the Plan shall be those
designated by the Committee from time to time in its discretion. The
Administrator may promulgate uniform and nondiscriminatory rules and procedures
governing investment elections 

- 10 -

under the Plan, including rules governing how credits or debits to an
Account or Sub-Account shall be allocated among investment funds in the absence
of a valid election.

          5.4 Statement
of Account. A statement shall be sent to each Participant as to
the balance of his or her Deferred Compensation Account at least once each Plan
Year. Electronic distribution (including a reminder that such statement is
available electronically) will satisfy this requirement.

ARTICLE VI

PAYMENT OF DEFERRED COMPENSATION

          6.1 Hardship
Distributions. A Participant may request that all or a portion
of his or her vested Account balance be distributed at any time by submitting a
written request to the Administrator, provided that the Participant has
incurred a Hardship, and the distribution is necessary to alleviate such
Hardship. In determining whether the Hardship distribution request should be
approved, the Administrator may rely on the Participant’s representation that
the Hardship cannot be alleviated:

	
  

 	
  

 
	
  

 	
           6.1.1.
 through reimbursement or compensation by insurance or otherwise; 

 
	
  

 	
  

 
	
  

 	
           6.1.2. by
 the Participant taking any withdrawals then available to him or her under the
 terms of the Qualified Plan; 

 
	
  

 	
  

 
	
  

 	
           6.1.3. by
 reasonable liquidation of the Participant’s assets, including amounts
 available for withdrawal from the Qualified Plan, to the extent such
 liquidation would not itself cause a severe financial hardship; or 

 
	
  

 	
  

 
	
  

 	
           6.1.4. by
 cessation of his or her elective deferrals under Section 3.4.3 of this Plan
 or a similar deferred compensation plan to the extent available.

 

          6.2 Administration
of Hardship Distributions. The Administrator shall deem a
distribution to be necessary to alleviate a Hardship if the distribution does
not exceed the amounts necessary to satisfy the Participant’s Hardship, plus
amounts necessary to pay taxes reasonably anticipated as a result of the
distribution. The Account balance that is not distributed pursuant to the
Hardship request shall remain in the Plan. Distributions to alleviate a
Hardship will be made as soon as administratively feasible after the
Administrator has reviewed and approved the request. An amount to be
distributed for Hardship shall be debited from the Participant’s Deferred
Compensation Account not held in a Scheduled Distribution Sub-Account, or (if
such amount is not sufficient) from the Sub-Account(s) having the latest scheduled
distribution date.

          6.3 Scheduled
Distribution. A Participant may elect to receive a Scheduled
Distribution with respect to an Elective Deferral at the time he or she files
the applicable deferral election under Section 3.1. A Participant may elect in
accordance with Section 3.1.5 to direct all or a portion of his or her
Elective Deferrals for the Plan Year into one (or, if permitted by the
Administrator, more than one) Sub-Account(s), provided that any such
Sub-Account has a scheduled distribution date which is not earlier than twelve
(12) months after the end of the 

- 11 -

Deferral Period to which the Elective Deferral relates. The
Administrator may establish uniform and nondiscriminatory rules and procedures
governing Scheduled Distribution Sub-Accounts, including establishing
limitations on the number of Sub-Accounts available to Participants for any
Deferral Period or in the aggregate, and the minimum length of deferral to be
provided under any newly-established Sub-Account, as the Administrator deems
appropriate. 

          To the
extent permitted by the Administrator at the time of election, such election
may designate whether the elected Scheduled Distribution will be paid as a
result of the Participant’s intervening death, Disability or Termination of
Employment, or alternatively will continue to apply notwithstanding such
intervening event. Except as otherwise elected by a Participant under the
preceding sentence, an election of a Scheduled Distribution shall automatically
terminate upon the Participant’s death, Disability or Termination of Employment
prior to age 65, at which time the provisions of Sections 6.4, 6.5 and 6.6
shall govern distribution of the Participant’s Account; provided, however,
that, unless the Participant elects otherwise with the consent of the
Administrator, (1) a Scheduled Distribution Sub-Account payable at age 65 shall
be paid when the Participant attains age 65, without regard to the
Participant’s intervening Termination of Employment (other than due to death);
and (2) a Participant’s intervening Termination of Employment (other than due
to death) shall not accelerate a Scheduled Distribution then in pay status.

          A
Participant may, with the consent of the Administrator and to the extent
permitted under Code Section 409A and regulations thereunder, elect to (a)
revoke a Scheduled Distribution (provided that the Participant’s Scheduled
Distribution election would otherwise automatically terminate upon the
Participant’s Termination of Employment for any reason), in which case the
balance of the applicable Sub-Account will be restored to the Participant’s
Deferred Compensation Account, or (b) extend to a later date the date permitted
under Section 6.6 on which a Scheduled Distribution will occur, in which case
the applicable Sub-Account will be redesignated (and merged with another
existing Sub-Account having the same designated distribution date). A
Participant may make an election under the preceding sentence by filing a new
election prior to his or her Termination of Employment at such time and in such
form as the Administrator shall designate. Any election to revoke or extend the
date of a Scheduled Distribution shall not take effect until at least twelve
months after the date on which it is made and must provide for a deferred
distribution date not earlier than five years after the date such Scheduled
Distribution was otherwise scheduled to be made and not later than the date set
forth in Section 6.6. A Scheduled Distribution may be made in a single lump sum
payment or in installments over two to eleven years (as described in Section
6.5.1 or 6.5.2, respectively). 

          6.4 Death or
Other Termination of Employment.

	
  

 	
  

 
	
  

 	
           6.4.1. Initial
 Distribution Election. A Participant who has incurred a
 Termination of Employment, whether by reason of voluntary or involuntary
 termination, death or Disability (each a “Distribution Event”), shall receive
 distribution of his or her Account (other than a Scheduled Distribution
 Sub-Account having a Scheduled Distribution date prior to the date of
 Termination of Employment or a Scheduled Distribution Sub-Account subject to
 a later Scheduled Distribution date with respect to which the Participant has
 elected under Section 6.3 that no intervening Distribution Event 

 

- 12 -

	
  

 	
  

 
	
  

 	
 shall apply) in a single lump sum payment as soon as practicable but
 in any event within ninety (90) days following such Termination of
 Employment. Notwithstanding the foregoing, the Administrator may permit a
 Participant to elect a later payment commencement date permitted under
 Section 6.6, or an alternate method of distribution permitted under
 Section 6.5, by filing a written request with the Administrator at the time
 the Participant files an initial deferral election under Section 3.2. To the
 extent permitted under rules established by the Administrator at the time of
 election, such an election may separately specify different times or
 available methods of payment for different Distribution Events.

 
	
  

 	
  

 
	
  

 	
           6.4.2. Changes
 in Distribution Election. The Administrator may permit a
 Participant to defer the commencement of his or her distribution to a date
 permitted under Section 6.6, or select an alternative method of distribution
 permitted under Section 6.5, after the initial deferral election by filing a
 written request with the Administrator. Such a change election shall not take
 effect until at least twelve months after the date on which it is made and
 shall be effective only if (a) the election is filed with the Administrator
 before the Participant’s Termination of Employment; (b) the election does not
 accelerate the timing or payment schedule of any distribution; (c) the
 payment commencement date in the change election is not less than five years
 after the date the distribution would otherwise have commenced for the
 Distribution Event without regard to such election; and (d) the Administrator
 approves such election. Except as otherwise provided in Section 6.7, a
 Participant’s distribution election shall become irrevocable upon the Participant’s
 Termination of Employment.

 
	
  

 	
  

 
	
  

 	
           6.4.3. Key
 Employees. Notwithstanding the foregoing, in the case of a Key
 Employee who has a Termination of Employment (other than due to death) while
 any stock of the Company or any Affiliate is publicly traded on an
 established securities market or otherwise, distribution of the Participant’s
 Account on account of such Termination of Employment may not be made earlier
 than six months after the date of the Termination of Employment (or if the
 Participant dies during such six month period, earlier than the date of the
 Participant’s death). Such Participant’s Account will be deemed to continue
 to be adjusted for investment gains or losses pending distribution as set
 forth in Section 5.3. 

 
	
  

 	
  

 
	
  

 	
           6.4.4. Death.
 If a Participant dies before distribution of his or her Account has
 commenced, the Participant’s benefit under the Plan shall be paid to his or
 her Beneficiary in a single lump sum payment as soon as practicable following
 the Participant’s death.

 
	
  

 	
  

 
	
  

 	
           6.4.5. Distribution
 Event. Whether a Participant has incurred a Distribution Event
 shall be determined by the Administrator in a manner consistent with the
 requirements of Section 409A and regulations thereunder. 

 

- 13 -

          6.5 Method of
Payment.

	
  

 	
  

 
	
  

 	
           6.5.1. Lump
 Sum Payment. Distribution of a Participant’s Account pursuant
 to Section 6.1, 6.3 or 6.4, may be made in a cash lump sum. 

 
	
  

 	
  

 
	
  

 	
           6.5.2. Installment
 Distribution. A Participant requesting distribution of an
 Account pursuant to Section 6.4 may, with the approval of the Administrator,
 receive distribution in periodic payments in lieu of a lump sum. Periodic
 payments shall be paid on an annual or quarterly basis, as permitted by the
 Administrator and elected by the Participant, over a period that does not
 exceed eleven (11) years. Each installment payment shall be determined by
 dividing the Participant’s then-current Account balance by the number of
 payments remaining to be paid; provided, however, that if the Participant’s
 (or Beneficiary’s) aggregate vested Account balance is less than $100,000 at
 the time distributions commence due to Termination of Employment, the entire
 vested account balance shall be paid in a single lump sum payment at the time
 the Participant’s (or Beneficiary’s) initial installment distribution would
 otherwise be paid. The Administrator may establish uniform and
 nondiscriminatory rules and procedures governing the payment of installment
 distributions, including the maximum period over which installment
 distributions shall be made and the minimum amount which must be distributed
 in each installment, as the Administrator deems appropriate. 

 
	
  

 	
  

 
	
  

 	
           6.5.3. Death
 of Participant or Beneficiary During Installment Distribution Period.
 If a Participant who has elected installment payments under Section 6.5.2
 dies after payments have commenced but before all amounts held in the Account
 have been distributed, then to the extent permitted by the Administrator at
 the time of the Participant’s deferral election, any remaining Account
 balance shall be paid to the Beneficiary or Beneficiaries designated by the
 Participant over the then remaining installment period, or if the Participant
 has so elected, in a single lump sum payment as soon as practicable following
 the Participant’s death. If the designated Beneficiary dies after the
 Participant but before all amounts held in the Account have been distributed,
 the then remaining balance in the Participant’s Account shall be distributed
 in a lump sum payment to the Beneficiary’s estate as provided in
 Section 6.5.1 (except to the extent that the Participant has designated
 one or more contingent Beneficiaries) as soon as practicable after the
 Beneficiary’s death.

 
	
  

 	
  

 
	
  

 	
           6.5.4. Limit
 on Distribution Method. Notwithstanding the foregoing, to the
 extent permitted under Section 409A, if the Deferred Compensation Account
 does not exceed $100,000 at the time distributions commence due to the
 Participant’s Termination of Employment, the distribution shall be made in a
 single lump-sum payment.

 

          6.6 Payment
Commencement Date. A Participant may not elect a distribution
date later than (a) April 1 of the calendar year after the year in which the
Participant attains age 701⁄2, or (b) five years after the Participant’s
Termination of Employment, if later. 

          6.7 Transition
Rules. Pursuant to Internal Revenue Service Notice 2005-1,
Q&A-19(c), as extended by Notice of Proposed Rulemaking REG-158080-04, a
Participant may, prior to December 31, 2007, modify or make new elections
regarding distribution of his or her Account(s) under Sections 6.3, 6.4 and
6.5, at such time and in such form as the Administrator 

- 14 -

shall designate; provided, however, that no such distribution election
may affect payments that the Participant would otherwise receive in 2007 or
cause payments to be made in 2007. Notwithstanding any provision of the Plan to
the contrary, if a Participant’s Deferred Compensation Account is attributable
solely to Elective Deferrals described in Section 1.16(b)(ii) (i.e.,
the amount of elective deferrals the Participant has elected to contribute to
the Qualified Plan for the Plan Year in excess of the dollar limitation on
pre-tax contributions set forth in Section 402(g) of the Code), the Participant’s
Account shall be distributed to the Participant within the first ninety (90)
days of 2008, notwithstanding any Participant election to the contrary. 

          6.8 Acceleration
of Payment Date. Notwithstanding the foregoing, the distribution
of benefits hereunder may be accelerated, with the consent of the
Administrator, under the following circumstances:

	
  

 	
  

 
	
  

 	
           6.8.1. Compliance
 with Domestic Relations Order. To permit payment to an
 individual other than the Participant as necessary to comply with the
 provisions of a domestic relations order (as defined in Code Section
 414(p)(1)(B)); 

 
	
  

 	
  

 
	
  

 	
           6.8.2. Conflicts
 of Interest. To permit payment as necessary to comply with the
 provisions of a Federal government ethics agreement or to avoid violation of
 an applicable Federal, state, local or foreign ethics law or conflicts of
 interest law; 

 
	
  

 	
  

 
	
  

 	
           6.8.3. Payment
 of Employment Taxes. To permit payment of federal employment
 taxes under Code Sections 3101, 3121(a) or 3121(v)(2), or to comply with any
 federal tax withholding provisions or corresponding withholding provisions of
 applicable state, local, or foreign tax laws as a result of the payment of
 federal employment taxes, and to pay the additional income tax at source on
 wages attributable to the pyramiding Code Section 3401 wages and taxes; or 

 
	
  

 	
  

 
	
  

 	
           6.8.4.
 Tax Event. Upon a good faith,
 reasonable determination by the Administrator, and upon advice of counsel,
 that the Plan fails to meet the requirements of Code Section 409A and
 regulations thereunder. Such payment may not exceed the amount required to be
 included in income as a result of the failure to comply with the requirements
 of Code Section 409A. 

 

          6.9 Delay of
Payments. A payment otherwise required to be made under the
terms of the Plan may be delayed solely to the extent necessary under the
following circumstances, provided that payment is made as soon as possible
within the first calendar year after the reason for delay no longer applies:

	
  

 	
  

 
	
  

 	
           6.9.1. Payments
 Subject to the Deduction Limitation. The Company
 reasonably anticipates that such payment would otherwise violate Code Section
 162(m); 

 
	
  

 	
  

 
	
  

 	
           6.9.2. Violation
 of Law. The Administrator reasonably determines that making
 the payment will violate Federal securities or other applicable laws; or

 

- 15 -

	
  

 	
  

 
	
  

 	
           6.9.3. Other
 Permitted Event. Upon such other events and conditions as the
 Commissioner of Internal Revenue shall prescribe in generally applicable
 guidance

 

ARTICLE VII

ADMINISTRATION OF THE PLAN

          7.1 Administration
by the Company. The Committee shall be responsible for the
general operation and administration of the Plan and for carrying out the
provisions thereof. The Committee may appoint such person or persons as it deems
appropriate to perform all or any of the functions of the Administrator under
the terms of the Plan. To the extent that no such person or persons are
appointed, the Committee shall serve as Administrator. 

          7.2 General
Powers of Administration. The Committee shall have authority and
discretion to control and manage the operation and administration of the Plan,
including all rights and powers necessary or convenient to the carrying out of
its functions hereunder, whether or not such rights and powers are specifically
enumerated herein. The Committee may, in its discretion, delegate authority
with regard to the administration of the Plan to any individual, officer or
committee in accordance with Section 7.2.7 below. Notwithstanding any other provision
of the Plan, if an action or direction of any person to whom authority
hereunder has been delegated conflicts with an action or direction of the
Committee, then the authority of the Committee shall supersede that of the
delegate with respect to such action or direction.

          Without
limiting the generality of the foregoing, and in addition to the other powers
set forth in this Section 7.2, the Committee or its delegate shall have the
following express authorities:

	
  

 	
  

 
	
  

 	
           7.2.1. To
 construe and interpret the provisions of the Plan; to decide all questions
 arising thereunder, including, without limitation, questions of eligibility
 for participation, eligibility for benefits, the validity of any election or
 designation made under the Plan, and the amount, manner and time of payment
 of any benefits hereunder; and to make factual determinations necessary or
 appropriate for such decisions or determination;

 
	
  

 	
  

 
	
  

 	
           7.2.2. To
 prescribe procedures to be followed by Participants, Beneficiaries or
 alternate payees in filing applications for benefits and any other elections,
 designations and forms required or permitted under the Plan;

 
	
  

 	
  

 
	
  

 	
           7.2.3. To
 prepare and distribute information explaining the Plan;

 
	
  

 	
  

 
	
  

 	
           7.2.4. To
 receive from the Company and from Participants, Beneficiaries and alternate
 payees such information as shall be necessary for the proper administration
 of the Plan;

 
	
  

 	
  

 
	
  

 	
           7.2.5. To
 furnish the Company or the Board of Directors, upon request, such reports
 with respect to the administration of the Plan as are reasonable and
 appropriate;

 

- 16 -

	
  

 	
  

 
	
  

 	
           7.2.6. To
 appoint or employ advisors, including legal and actuarial counsel (who may
 also be counsel to the Company) to render advice with regard to any
 responsibility of the Committee under the Plan or to assist in the
 administration of the Plan; 

 
	
  

 	
  

 
	
  

 	
           7.2.7. To
 designate in writing other persons to carry out a specified part or parts of
 its responsibilities hereunder (including this power to designate other
 persons to carry out a part of such designated responsibility). Any such
 person may be removed by the Committee at any time with or without cause; 

 
	
  

 	
  

 
	
  

 	
           7.2.8. To
 rule on claims, and to determine the validity of domestic relations orders
 and comply with such orders; and

 
	
  

 	
  

 
	
  

 	
           7.2.9.
 All rules, actions, interpretations and decisions of the Committee are
 conclusive and binding on all persons, and shall be given the maximum
 possible deference allowed by law.

 

          7.3 Rules of
the Administrator. The Administrator may adopt such rules as it
deems necessary, desirable or appropriate. When making a determination or
calculation, the Administrator shall be entitled to rely upon information
furnished by a Participant or Beneficiary, the Company, the legal counsel of
the Company, or such other person as it deems appropriate, and shall further be
entitled to rely conclusively upon all tables, valuations, certificates,
opinions and reports furnished by any actuary, accountant, controller, counsel
or other person employed or engaged by the Company with respect to the Plan.

          7.4 Claims
Procedure. Any person who believes that he or she is then
entitled to receive a benefit under the Plan may file a claim in writing with
the Administrator. Except to the extent the Committee adopts an alternate
procedure for the review of claims, the procedures in this Section 7.4 shall
apply. The Administrator shall, within ninety (90) days of the receipt of a
claim, either allow or deny the claim in writing. A denial of a claim shall be
written in a manner calculated to be understood by the claimant and shall
include: (a) the specific reason or reasons for the denial; (b) specific
references to pertinent Plan provisions on which the denial is based; (c) a
description of any additional material or information necessary for the
claimant to perfect the claim and an explanation of why such material or
information is necessary; and (d) an explanation of the Plan’s claim review
procedure. A claimant whose claim is denied (or his or her duly authorized
representative) may, within sixty (60) days after receipt of denial of the
claim: (1) submit a written request for review to the Committee; (2) review
pertinent documents; and (3) submit issues and comments in writing. The
Administrator shall notify the claimant of the decision of the Committee on
review within sixty (60) days of receipt of a request. No legal action may be
commenced by a Participant or Beneficiary with respect to a benefit under this
Plan without first exhausting the Plan’s administrative claims procedures, and
any legal action with respect to a claim that has been finally denied must be
commenced no later than one year after the date of the Plan’s final denial of
such claim upon appeal.

- 17 -

ARTICLE VIII

GENERAL PROVISIONS

          8.1 Participant’s
Rights Unsecured. The right of any Participant to receive future
payments under the provisions of the Plan shall be an unsecured claim against
the general assets of the Company. The Company shall be under no obligation to
establish any separate fund, purchase any annuity contract, or in any other way
make any special provision or specifically earmark any funds for the payment of
amounts called for under the Plan. If the Company chooses to establish such a
fund, or purchase such an annuity contract or make any other agreement to
provide for such payments, that fund, contract or arrangement shall remain part
of the Company’s general assets and no person claiming payments under the Plan
shall have any right, title or interest in or to any such fund, contract or
arrangement.

          8.2 Non-assignability.
None of the benefits, payments, proceeds or claims of any Participant or
Beneficiary shall be subject to any claim of any creditor of any Participant or
Beneficiary and, in particular, the same shall not be subject to attachment or
garnishment or other legal process by any creditor of such Participant or
Beneficiary, nor shall any Participant or Beneficiary have any right to
alienate, anticipate, commute, pledge, encumber or assign any of the benefits
or payments or proceeds which he or she may expect to receive, contingently or
otherwise, under the Plan. Notwithstanding the foregoing, the Company shall
comply with the terms of a domestic relations order applicable to a
Participant’s interest in the Plan, provided that such order does not require
the payment of benefits in a manner or amount, or at a time, inconsistent with
the terms of the Plan. The Company shall have no liability to any Participant
or Beneficiary to the extent that his or her benefit is reduced in accordance
with the terms of a domestic relations order that the Company applies in good
faith.

          8.3 Taxes.
The Administrator shall withhold all federal, state or local taxes that it
reasonably believes are required to be withheld from any payments under the
Plan.

          8.4 Limitation
of Participant’s Rights. Nothing contained in the Plan shall
confer upon any person a right to be employed or to continue in the employ of
the Company, or interfere in any way with the right of the Company to terminate
the employment of a Participant at any time, with or without cause.

          8.5 Receipt
and Release. Any payment to any Participant or Beneficiary in
accordance with the provisions of the Plan shall, to the extent thereof, be in
full satisfaction of all claims against the Company or the Plan, and the
Administrator may require such Participant or Beneficiary, as a condition
precedent to such payment, to execute a receipt and release to such effect. If
any Participant or Beneficiary is determined by the Administrator to be
incompetent by reason of physical or mental disability (including minority) to
give a valid receipt and release, the Administrator may cause the payment or
payments becoming due to such person to be made to another person for his or
her benefit without responsibility on the part of the Administrator or the
Company to follow the application of such funds.

          8.6 Governing
Law. The Plan shall be construed, administered, and governed in
all respects under and by the laws of the state of New York. If any provision
shall be held by a 

- 18 -

court of competent jurisdiction to be invalid or unenforceable, the
remaining provisions hereof shall continue to be fully effective.

          8.7 Designation
of Beneficiary. A Participant may designate a Beneficiary by so
notifying the Administrator in writing, in a form acceptable to the
Administrator, at any time before the Participant’s death. A Participant may
revoke any Beneficiary designation or designate a new Beneficiary at any time
without the consent of a beneficiary or any other person. If no Beneficiary is
designated or no designated Beneficiary survives the Participant, payment shall
be made in a single lump sum to the Participant’s estate.

          8.8 Successorship.
The Plan shall be binding upon and inure to the benefit of the Company and its
successors and assigns, and the Participants, and the successors, assigns,
designees and estates of the Participants. The Plan shall also be binding upon
and inure to the benefit of any successor Company or organization succeeding to
substantially all of the assets and business of the Company, but nothing in the
Plan shall preclude the Company from merging or consolidating into or with, or
transferring all or substantially all of its assets to, another Company which
assumes the Plan and all obligations of the Company hereunder. The Company
agrees that it will make appropriate provision for the preservation of
Participants’ rights under the Plan in any agreement or plan which it may enter
into to effect any such merger, consolidation, reorganization or transfer of
assets. In such a merger, consolidation, reorganization, or transfer of assets
and assumption of Plan obligations of the Company, the term Company shall refer
to such other Company and the Plan shall continue in full force and effect.

          8.9 Indemnification.
No Committee member shall be personally liable by reason of any instrument
executed by him or on his behalf, or action taken by him, in his capacity as a
Committee member nor for any mistake of judgment made in good faith. The
Company shall indemnify and hold harmless the Plan and each Committee member
and each employee, officer or director of the Company or the Plan, to whom any
duty, power, function or action in respect of the Plan may be delegated or
assigned, or from whom any information is requested for Plan purposes, against
any cost or expense (including fees of legal counsel) and liability (including
any sum paid in settlement of a claim or legal action with the approval of the
Company) arising out of anything done or omitted to be done in connection with
the Plan, unless arising out of such person’s fraud or bad faith.

          8.10 Headings
and Subheadings. Headings and subheading in this Plan are
inserted for convenience only and are not to be considered in the construction
of the provisions hereof.

          8.11 Amendment
and Termination. The Plan may at any time or from time to time
be amended, modified, or terminated by the Board of Directors. No amendment,
modification, or termination shall, without the consent of a Participant,
adversely affect the Participant’s Deferred Compensation Account at that time.
Upon termination of the Plan, the Board of Directors may elect to (a) pay
benefits hereunder as they become due as if the Plan had not terminated or (b)
to extent permitted by Code Section 409A and regulations thereunder, direct
that all payments remaining to be made under the Plan be made in a single lump
sum to Participants (or their Beneficiaries). 

- 19 -

          IN
WITNESS WHEREOF, and pursuant to adoption of this Plan
Document by the Board of Directors of the Company has approved and adopted this
Plan Document this 1st day of July, 2010.

- 20 -

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