Document:

EXHIBIT 10.1

                           ORIENT-EXPRESS HOTELS LTD.

            2004 STOCK OPTION PLAN AS AMENDED EFFECTIVE JUNE 15, 2007
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1.   The Plan

     Orient-Express  Hotels Ltd. (the  "Company")  may grant,  in the manner and
upon the terms and  conditions  set forth  herein,  options to  purchase  not in
excess  of an  aggregate  of  1,000,000  Class A common  shares  of the  Company
(adjusted,  if necessary,  in accordance with Section 12) to eligible directors,
officers and  employees of the Company and its  subsidiaries  (as  determined in
accordance with Section 3). Shares may be either  authorized but unissued shares
or acquired shares.

2.   Administration of the Plan

     The Plan shall be administered, and the options hereunder shall be granted,
by the Board of  Directors  of the Company or a committee  thereof  from time to
time  constituted  pursuant to the Bye-Laws of the Company.  Any decision of the
Board or the committee shall be final and conclusive in all matters  relating to
the  Plan.  The  Board or the  committee  may make or vary  regulations  for the
administration  and operation of the Plan not  inconsistent  with the provisions
hereof.  The Board or the committee may act only by a majority of its members in
office, except that the members may authorize any one or more of their number or
the  Secretary of the Company to execute and deliver  documents on their behalf.
No member of the Board or the  committee  shall be liable for  anything  done or
omitted to be done by him or by any other  member in  connection  with the Plan,
except for his own willful misconduct or as expressly provided by statute.

     The Board or the committee  shall have  authority to (a) adopt a subsidiary
plan (the "U.K. Plan") under the Plan which provides for the grant of options on
shares  reserved under the Plan to eligible United Kingdom  resident  directors,
officers and employees and complies with the requirements  imposed by the United
Kingdom Board of Inland  Revenue,  and (b) prescribe the form of options granted
under the Plan; provided, however, in each case that the terms and conditions of
the U.K.  Plan and the form of the option are not more  favorable  to  optionees
than the terms and  conditions  of the Plan.  Any option  granted under the U.K.
Plan shall be deemed to be outstanding also under the Plan.

     The Board or the committee is authorized,  in its  discretion  exercised at
the time of grant,  to  designate  options as  "United  States  incentive  stock
options" within the meaning of Section 422 of the United States Internal Revenue
Code.

3.   To Whom Options May Be Granted

     Options may be granted to those  directors,  officers and  employees of the
Company or any  subsidiary  who, in the  opinion of the Board or the  committee,
have contributed  significantly to the growth and progress of the Company or any
subsidiary or to persons who, in the opinion of the Board or the committee, hold
promise  of  contributing  to the  growth  and  progress  of the  Company or any
subsidiary and who can be attracted to

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directorship,  officership or employment  through the grant of options under the
Plan.  The Board or the  committee  is hereby  given the  authority to determine
which of the  eligible  directors,  officers  and  employees  are to be  granted
options and the number of shares to be allocated to each.

     No United States incentive stock option shall be granted to a person who is
not an employee  or (except as provided in Sections 4 and 7) to an employee  who
owns (or would be regarded as owning) shares possessing more than ten percent of
the total  combined  voting power of all classes of shares of the Company or its
subsidiaries  at the time the option is  granted.  In  addition,  in the case of
United  States  incentive  stock  options,   the  aggregate  fair  market  value
(determined  at the time the option is granted)  of the shares  with  respect to
which  incentive stock options are exercisable for the first time by an employee
during any calendar year (under all United States  incentive  stock option plans
of the Company and its subsidiaries) shall not exceed U.S.$100,000.

     The  term  "subsidiary"  means  any  corporation  in an  unbroken  chain of
corporations  beginning  with the  Company,  each of which owns at the time such
option is granted (except in the case of the last such corporation in the chain)
shares  possessing 50 percent or more of the total combined  voting power of all
classes of shares in one of the other corporations in such chain.

4.   Option Price

     The option  price per share shall be not less than the fair market value of
the shares  subject to the option at the time it is granted,  as  determined  in
good faith by the Board or the  committee.  If a United States  incentive  stock
option is granted to an employee  who at the time the option is granted owns (or
would be  regarded  as owning)  shares  possessing  more than ten percent of the
total  combined  voting  power of all  classes  of shares of the  Company or its
subsidiaries,  the option price shall be at least 110 percent of the fair market
value of the shares subject to the option at the time it is granted.  The option
price shall be subject to adjustment in accordance with Section 12.

5.   Circumstances Under Which Options May Be Granted

     Options  may be  granted  at any time and from time to time on or after the
date on which the Plan is adopted by the Board of  Directors  of the Company and
before the expiration of ten years therefrom.  If prior to the expiration of ten
years  from the date on which the Plan is  adopted,  an option  shall  expire or
otherwise  terminate  without  having been  exercised in full,  the  unexercised
shares shall  thereupon  become  available  for the granting of options to other
eligible directors,  officers and employees.  No option shall be granted unless,
at the time such option is granted,  the Company  shall have  available at least
the  number of shares  covered  by such  option  and by all other  options  then
outstanding under the Plan.

6.   Options Not Assignable

     Every  option  granted  under  the  Plan  shall  provide  that  it  is  not
transferable by the person to whom it is granted,  otherwise than by will or the
laws of  descent  and  distribution,  and  that it is  exercisable,  during  his
lifetime, only by him.

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7.   Manner of Exercise of Options

     Any  person to whom an  option  has been  granted  may  exercise  the same,
subject  to the  provisions  of  Section  10,  at any time and from time to time
before the  expiration of not more than ten years (or, in the case of any United
States  incentive  stock  option  granted to an  employee  subject to the second
sentence  of Section 4, not more than five  years)  from the date the option was
granted.  Any such exercise  shall be effected by giving  written  notice to the
Company,  in a form  satisfactory to the Board or the committee,  specifying the
number of shares with respect to which the option is being exercised. Any person
to whom an option has been  granted  under the U.K.  Plan may  exercise the same
under the Plan,  subject to all the  provisions  hereof and provided that in the
written  notice of exercise the person  states that he is  exercising  under the
Plan and not under the U.K. Plan.

8.   Manner of Payment on Exercise of Options

     At the time of giving such  notice,  such  person  shall pay or cause to be
paid to the Company  the full option  price of the shares as to which the option
is  exercised.  As soon as  practicable  thereafter,  the Company  shall cause a
certificate or certificates for such shares to be registered in the name of such
person, in such  denominations as such person may direct, and shall deliver said
certificate or certificates to or upon the order of such person.

     Notwithstanding the foregoing, on concurrence by the Board or the committee
(which concurrence may be granted or withheld in its sole discretion) the person
exercising  an option  may elect to defer,  for a term not to exceed  five years
from the date of  exercise,  payment of all or a portion of the option  price of
the shares as to which the option is exercised, provided, however that:

          (a) in the case of an optionee who is a "United  States person" within
     the  meaning  of  Regulation  X of the Board of  Governors  of the  Federal
     Reserve  System of the United States of America,  the portion of the option
     price so deferred for future  payment shall not exceed the "good faith loan
     value" of the shares,  within the meaning of the  applicable  provisions of
     Regulation  G of such Board and as may be in effect on the date of exercise
     if such deferral is then subject to such regulation;

          (b) the shares for which the  option is  exercised  shall be issued to
     and registered in the name of the person exercising the option but shall be
     endorsed by the person in blank (either on the certificate or on a separate
     stock power) and held by the Company as collateral for the deferred portion
     of the option price;

          (c) the person  exercising the option shall execute a promissory  note
     or other  instrument  of like effect in favor of the Company in a principal
     amount equal to the deferred portion of the option price,  which instrument
     shall  provide for the payment of interest at the rate,  determined  by the
     Board or the  committee,  of at  least  four  percent  per  annum,  payable
     quarterly;

          (d) the person  exercising the option shall have the right at any time
     and from time to time to withdraw part or all of the option shares from the
     collateral so held by the Company upon payment of a  corresponding  portion
     of the deferred option price,

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     together with any accrued interest thereon,  and that upon such payment the
     person  exercising the option shall be discharged under the promissory note
     or other  instrument,  pro tanto,  and shall then be free to dispose of the
     shares  in any  manner he may deem  appropriate,  subject  to the  relevant
     conditions and restrictions of the Plan; and

          (e) the deferred payment  arrangement shall be subject to such further
     terms and  conditions  as may be  prescribed  by the Board or the committee
     upon the exercise of options.

     The  person  exercising  an  option  shall  be  entitled,  from the date of
exercise,  to all the rights of a  shareholder  as to the shares  covered by the
exercise,  including  the right to vote the shares and to receive and retain all
dividends paid thereon.

9.   Exercise After Death of Person to Whom Granted

     In the event the person to whom an option is  granted  shall die owning but
without having fully exercised the option, his estate or any person who acquired
the right to exercise the option by bequest or  inheritance  or by reason of the
death of the  optionee  may,  subject  to the  provisions  of Section 10 (except
subsection 10(b) and (d)), exercise the option at any time and from time to time
before  the  expiration  of the  period  of one year  after  the date of  death,
notwithstanding  that the  exercise may occur less than three years or more than
ten years after the date of grant thereof,  but only if the person so exercising
the option shall have  furnished the Company with evidence  satisfactory  to the
Company of the person's right to exercise the option and of payment or provision
for the payment of any estate, transfer, inheritance or death taxes payable with
respect to the option or the shares to which it relates. Any such exercise shall
be effected  in the manner  described  in  Sections 7 and 8. Any such  exercise,
however,  shall not be permitted in the case of a United States  incentive stock
option after the expiration of ten years from the date the option was granted.

10.  Circumstances Under Which Options May Not Be Exercised

     Every  option  under the Plan shall  provide  that it may not be  exercised
(except as may be otherwise provided in Sections 9 and 11):

          (a) until the shares  reserved for issuance upon the exercise  thereof
     have been listed upon any national securities exchange in the United States
     of America on which the Company's Class A common shares are then listed;

          (b) until the  expiration of a period of three years from the date the
     option  was  granted,  and in any event not after (i) the  expiration  of a
     period of three  months  from the date a person  ceases  to be a  director,
     officer  or  employee  of  the  Company  or  a  subsidiary   thereof  under
     circumstances not involving misconduct,  impropriety or inefficiency on his
     part or (ii) the termination of the directorship, officership or employment
     of a person by the Company or a subsidiary  thereof or the shareholders for
     reasons  involving  misconduct,  impropriety or  inefficiency  on his part;
     provided,  however,  that a person  ceasing  to be a  director,  officer or
     employee  of  the  Company  or a  subsidiary  thereof  on  account  of  (i)
     retirement at or after the normal  retirement  date, (ii) early  retirement
     not earlier than five years before the normal retirement

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     date,  (iii) injury or disability,  (iv) dismissal for redundancy or (v) on
     concurrence of the Board or the committee (which concurrence may be granted
     or withheld in its sole  discretion),  the sale or other disposition of the
     subsidiary  for which the  person  acts as  director  or  officer  or which
     employs  the  employee  or  the  operating  division  of the  Company  or a
     subsidiary  for  which  the  employee  performs  his  employment,  shall be
     entitled  to exercise  an option at any time prior to the  expiration  of a
     period of three months from the date he ceases to be a director, officer or
     employee of the Company or a subsidiary thereof  notwithstanding  that such
     exercise  is made prior to the  expiration  of a period of three years from
     the date such  option was  granted  (and for  purposes  of this  Section 10
     hereof, the directorship,  officership or employment of any person with the
     Company  or a  subsidiary  thereof  shall not be  deemed to have  ceased or
     terminated  so long as such  person  shall  continuously  since the date of
     grant of the  option  be a  director,  officer  or  employee  either of the
     Company or a subsidiary  thereof or of Sea Containers  Ltd. or a subsidiary
     thereof);

          (c)  unless the Board or the  committee  shall be  satisfied  that the
     issuance of shares upon exercise  will be in  compliance  with all relevant
     rules  and  regulations  of  the  United  States  Securities  and  Exchange
     Commission; or

          (d) after the  expiration  of ten  years  from the date the  option is
     granted.

11.  Change in Control

     For  purposes  of this  Section 11,  "Change in  Control"  means any of the
following events:

          (a) any  "person" (as that term is defined for the purposes of Section
     13(d) or 14(d) of the U.S.  Securities  Exchange  Act of 1934),  other than
     James B. Sherwood or a group  including James B. Sherwood or any subsidiary
     of the Company,  shall directly or indirectly  acquire more than 40% of the
     voting  shares of the Company then  outstanding  and then  entitled to vote
     generally in the election of directors of the Company; or

          (b) individuals  who, on the date of adoption of the Plan,  constitute
     the  Company's  Board of Directors (or the  successors of such  individuals
     nominated by such Board of  Directors or a committee  thereof on which such
     individuals  or their  successors  constitute  a  majority)  shall cease to
     constitute a majority of the Company's Board of Directors; or

          (c) the Company  amalgamates,  merges or consolidates with or into any
     other corporation,  other than a corporation which directly,  or indirectly
     through one or more intermediaries, is controlled by James B. Sherwood or a
     group  including  James B.  Sherwood,  without the approval of its Board of
     Directors constituted as provided in clause (b) above; or

          (d) the Company sells, leases,  exchanges or otherwise disposes of all
     or substantially all of its assets and business without the approval of its
     Board of Directors constituted as provided in clause (b) above.

     In the event of a Change in Control,  and  notwithstanding  anything to the
contrary in Section 3, any  outstanding  option  granted under the Plan which an
optionee shall not then

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have been entitled to exercise shall become exercisable  immediately prior to or
concurrently with the occurrence of the Change in Control and the optionee shall
have the right to exercise all such options.

     Notwithstanding  anything  in the  Plan to the  contrary,  in the  event of
exercise of an option following a Change in Control,  the optionee may elect, in
the written  notice  provided for in Sections 7 and 8, (i) to pay or cause to be
paid to the Company  the full option  price of the shares as to which the option
is  exercised,  or (ii) to surrender to the Company all or any part of an option
and receive from the Company upon such  surrender an amount in cash equal to the
excess,  if any, of the determined  value of the shares subject to the option or
portion thereof so surrendered over the aggregate  exercise price of such shares
as set forth in the applicable option grant letter.  The term "determined value"
as used herein means the higher of (A) the highest sale price per Class A common
share of the Company on the New York Stock  Exchange  (or, if any of such shares
are not listed on that exchange at that time, then the highest sale price of the
shares on the principal  stock  exchange on which such shares are listed,  or if
such  shares are not listed,  then the  over-the-counter  market)  during the 12
months  immediately  preceding  the date of the  Change in  Control,  or (B) the
highest price per share  actually paid in connection  with any Change in Control
(including,  without  limitation,  prices paid in any  subsequent  amalgamation,
merger or combination with any entity that acquires control of the Company),  in
either case  multiplied by the number of shares subject to the option or portion
thereof so  surrendered.  In the event of a surrender  of all or a portion of an
option pursuant to this Section, the number of shares as to which the option was
surrendered shall not again become available for use under the Plan.

     The  obligations  of the Company  under the Plan shall be binding  upon any
successor  company,   corporation  or  other  organization  resulting  from  any
amalgamation,  merger,  consolidation or other reorganization of the Company, or
upon any successor  company,  corporation or  organization  succeeding to all or
substantially  all of the assets and business of the  Company,  in any such case
which would constitute a Change in Control. The Company agrees that it will make
appropriate  provisions for the preservation of all optionees'  rights under the
Plan in any agreement or plan that it may enter into or adopt to effect any such
amalgamation,  merger,  consolidation,  reorganization  or  transfer  of  assets
constituting a Change in Control.

12.  Adjustment of Number or Kind of Shares

     If the Company  shall  effect one or more share  splits,  share  dividends,
combinations of shares, exchanges of shares or similar capital adjustments,  the
Board or the committee shall appropriately  adjust the aggregate number and kind
of shares  with  respect to which  options  have been  granted or may be granted
under the Plan.  Every option  granted under the Plan shall provide that, in the
event of any such  capital  adjustments,  the number and kind of the shares with
respect  to  which  it  may  be  exercised,  and  the  option  price,  shall  be
appropriately adjusted.

13.  Amendment

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     The Plan may be amended  from time to time by the Board of Directors of the
Company.  No amendment shall alter or impair any of the rights or obligations of
any person,  without his consent, under any option theretofore granted under the
Plan.

14.  Termination

     The Plan shall terminate upon the first of the following dates or events to
occur:

          (a) if the Company is a  participant  in any  corporate  amalgamation,
     merger,  consolidation or other transaction and no provision is made at the
     time of the transaction to continue the Plan, except as provided in Section
     11;

          (b)  resolution  of the Board of Directors of the Company  terminating
     the Plan; or

          (c) on February 9, 2014.

     In the  event  of  termination  of the  Plan  in any of the  ways  provided
hereinabove,  the provisions of the Plan shall continue in full force and effect
as regards any options granted prior to such termination.

15.  Effect of Options Upon Employment

     Nothing in the Plan  shall be  construed  as giving any person  acting as a
director or officer of or employed by the Company or any subsidiary  thereof the
right to be  retained  in such  directorship,  officership  or  employment.  The
Company and any subsidiary  thereof and the shareholders shall have the right to
dismiss any director,  officer or employee at any time with or without cause and
without  liability for the effect which such dismissal  might have upon him as a
participant under the Plan, and under no circumstances shall a person ceasing to
be a director,  officer or  employee  by reason of  dismissal  or  otherwise  be
entitled  to or  claim  against  the  Company  or  any  subsidiary  thereof  any
compensation for or in respect of any consequent reduction or loss of his rights
or benefits  (actual or prospective)  under any option held by him in connection
with the Plan.

16.  Construction

     In all  respects  the Plan  shall  be  governed  by,  and be  construed  in
accordance with, the laws of the Islands of Bermuda.

                                       7EXHIBIT 10.2

                           ORIENT-EXPRESS HOTELS LTD.

                           2007 PERFORMANCE SHARE PLAN

1.   2007 Performance Share Plan (the "Plan")

     Orient-Express  Hotels Ltd. (the  "Company")  may grant,  in the manner and
upon the  terms  and  conditions  set forth in this  Plan,  rights  to  purchase
("Awards") not in excess of an aggregate of 500,000 Class A common shares of the
Company  (adjusted,  if necessary,  in  accordance  with Section 10) to eligible
directors,  officers  and  employees  of the  Company and its  subsidiaries  (as
determined in accordance with Section 3). Shares subject to Awards may be either
authorized but unissued shares or acquired shares.

2.   Administration of the Plan

     (a) The Plan shall be administered,  and Awards hereunder shall be granted,
by the Board of Directors of the Company (the "Board") or, at the  discretion of
the Board, the Compensation  Committee (the "Committee")  thereof.  In the event
the Committee is the  administrator in respect of any Awards,  references in the
Plan to the Board,  other than in paragraph  (c) below and Sections  5(a), 9, 11
and 12, shall be deemed to be references  to the Committee  with respect to such
Awards.  Any decision of the Board shall be final and  conclusive in all matters
relating  to the Plan.  The Board may act only by a majority  of its  members in
office, except that the members may authorize any one or more of their number or
the  Secretary of the Company to execute and deliver  documents on their behalf.
No member of the Board shall be liable for  anything  done or omitted to be done
by him or by any other member in  connection  with the Plan,  except for his own
willful misconduct or as expressly provided by statute.

     (b) The  Board  may make or vary  regulations  for the  administration  and
operation  of the  Plan not  inconsistent  with the  provisions  hereof  and may
establish terms, conditions,  including Company performance goals to be attained
as a condition to the vesting of Awards  ("Performance  Criteria"),  if any, and
restrictions  applicable  to such Awards,  which may differ with respect to each
grantee.  The authority of the Board shall include, but shall not be limited to,
the  authority to determine  the extent to which any  Performance  Criteria have
been  satisfied,   to  determine   whether,   to  what  extent  and  under  what
circumstances an Award may be settled,  canceled,  forfeited or accelerated,  to
make adjustments in the terms and conditions of any Award in accordance with the
Plan,  to  construe or  interpret  the Plan and Awards and  determine  grantees'
rights thereunder.

     (c) For purposes of making Awards,  the Committee shall be comprised solely
of directors who are "independent directors" pursuant to New York Stock Exchange
requirements.

3.   To Whom Awards May Be Granted

     (a) Awards may be granted to those directors, officers and employees of the
Company or any  subsidiary  thereof  who,  in the  opinion  of the  Board,  have
contributed

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significantly  to the growth and progress of the Company or any subsidiary or to
persons who, in the opinion of the Board,  hold promise of  contributing  to the
growth and progress of the Company or any subsidiary and who can be attracted to
directorship,  officership  or employment  through the grant of Awards under the
Plan. The Board is hereby given the authority to determine which of the eligible
directors,  officers and  employees  are to be granted  Awards and the number of
shares underlying each such Award.

     (b) The term  "subsidiary"  means any  corporation  in an unbroken chain of
corporations  beginning  with the  Company,  each of which  owns at the time any
Award is granted (except in the case of the last such  corporation in the chain)
shares  possessing 50 percent or more of the total combined  voting power of all
classes of shares in one of the other corporations in such chain.

     (c) The terms and  conditions  of an Award  shall be set forth in a written
Award notice provided to the grantee, which shall indicate the date of the grant
of the Award,  the  number of shares to which the Award  relates,  the  Purchase
Price of such shares,  and any  Performance  Criteria  upon which the vesting of
such Award may be conditioned.

4.   Purchase Price of Shares

     The price that must be paid by a grantee to obtain  shares  pursuant to the
Award shall be $.01 per share (the "Purchase Price"), representing the par value
of each share.

5.   Circumstances Under Which Awards May Be Granted

     (a) Awards may be granted at any time and from time to time on or after the
date on which the Plan is adopted by the Board and before the  expiration of ten
years therefrom.  If prior to the expiration of ten years from the date on which
the Plan is adopted,  an Award or any portion of an Award  expires or  otherwise
lapses without shares having been distributed,  the shares underlying such Award
shall thereupon become available for making Awards to other eligible  directors,
officers and employees.

     (b) Awards shall be granted at such times as determined by the Board.

     (c) The maximum number of shares subject to all Awards under the Plan shall
be the number of shares in Section 1. The  maximum  number of shares that may be
subject to any Award to any  individual  shall be within the  discretion  of the
Board,  subject to the number of shares  remaining  under the Plan that have not
been the subject of Awards at the time of the grant of such Award.

6.   Awards Not Assignable

     Every Award  under the Plan shall  provide  that  neither the Award nor any
rights under the Award shall be transferable by the grantee,  other than by will
or the laws of descent and distribution, and that it is exercisable,  during his
lifetime, only by the grantee.

7.   Manner of Payment of Awards

     (a) As soon as practicable  after an Award vests in accordance with Section
8, and in any  event  not  later  than the  15th day of the  third  month of the
calendar year following the calendar year in which the Award vests,  the Company
shall  (i)  cause a  certificate  or  certificates  for the  number of shares in
respect of which the Award vests to be registered

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in the name of the grantee, in such denominations as the grantee may direct, and
shall  deliver  such  certificate  or  certificates  to or upon the order of the
grantee,  and (ii) pay the  grantee  an amount in cash equal to the value of the
dividends,  if any,  and  without  interest,  that  would  have been paid on the
acquired shares in respect of dividend record dates occurring  during the period
between  the date of the Award and the date of  vesting  of such  Award,  unless
otherwise  determined  by  the  Board  (the  "Dividend  Equivalent");  provided,
however,  that no  payments  shall be made under this  Section  7(a)  unless the
grantee shall have paid the Company,  in the manner determined by the Board, the
full Purchase Price for all shares to be acquired by the grantee.

     (b) To the extent  permitted  under  applicable law, the Board, in its sole
discretion,  may pay the grantee a cash amount in lieu of the delivery of shares
and payment of cash in paragraph (a), and in full satisfaction thereof, equal to
the total of (i) the Dividend  Equivalent  (as defined in paragraph  (a) above),
and (ii) the fair market value of the  aggregate  number of shares in respect of
which the Award vests,  less the Purchase Price of same, such payment to be made
not later than the payment date in paragraph (a) above. For these purposes,  the
"fair market value" of each share shall be determined based on the closing price
of a share on the New York  Stock  Exchange  (or any other  national  securities
exchange in the United States of America on which the  Company's  Class A common
shares are then listed) on the date the Award vests.

     (c) The grantee shall be entitled,  from the date shares are  registered in
his or her name, to all the rights of a shareholder as to such shares, including
the right to vote the  shares  and to receive  and  retain  all  dividends  paid
thereon.

     (d)  Notwithstanding  paragraph (a) above,  unless otherwise  provided in a
grantee's  Award, in the event that any shares or cash to be paid to the grantee
in connection with a change in the ownership or effective control of the Company
or the  ownership  of a  substantial  portion of the assets of the  Company,  as
described in Section 280G of the U.S.  Internal Revenue Code of 1986, as amended
(the "Code"), pursuant to the Plan, any Award, or otherwise (including,  without
limitation,  the  acceleration of any payment,  award,  distribution or benefit)
(the "Payment")  constitutes an "excess parachute payment" within the meaning of
Section 280G of the Code,  the grantee shall be paid an  additional  amount (the
"Gross-Up  Payment")  such that the net amount  retained  by the  grantee  after
deduction of (i) any excise tax imposed  under Section 4999 of the Code and (ii)
any federal,  state and local income and  employment  tax and excise tax imposed
upon  the  Gross-Up  Payment  shall be equal to the  Payment.  For  purposes  of
determining the amount of the Gross-Up  Payment,  the grantee shall be deemed to
pay (I) federal income tax and employment  taxes at the highest marginal rate of
federal  income  and  employment  taxation  in the  calendar  year in which  the
Gross-Up  Payment  is to be made and (II)  state and local  income  taxes at the
highest  marginal  rate of taxation in the state and  locality of the  grantee's
residence in the calendar year in which the Gross-Up  Payment is to be made, net
of the maximum  reduction in federal  income taxes that may be obtained from the
deduction of such state and local taxes.

     (e) Notwithstanding  any provision of the Plan to the contrary,  no payment
shall be made in respect of any transaction  involving an Award unless and until
the grantee pays,  in the manner  determined by the Board,  all  applicable  tax
withholdings  due in connection  with such  transaction  and which the grantee's
employer is required to withhold.

                                        3

<PAGE>

     (f) In the event that any  payment is made under this  Section 7  following
the grantee's  death,  the Plan shall pay the grantee's estate or any person who
acquired  the Award by bequest or  inheritance  or by reason of the death of the
grantee,  subject to the provisions of Section 8, at the time, in the manner and
subject to the conditions set forth in this Section 7 as if such person were the
grantee; provided, however, that such person shall have furnished the Board with
evidence satisfactory to the Board of such person's right to the Award.

8.   Circumstances Under Which Awards Shall and Shall Not Vest

     (a) Vesting. Every Award under the Plan shall provide that:

          (i) it shall not vest until the shares  reserved  for  issuance  under
     such Award have been listed upon any  national  securities  exchange in the
     United States of America on which the  Company's  Class A common shares are
     then listed;

          (ii) it shall not vest until the expiration of a period of three years
     from the date the Award was  granted,  except as provided in (iii) and (iv)
     below;

          (iii) it shall not vest if the grantee is not a  director,  officer or
     employee of the Company or a subsidiary thereof on the date the Award would
     otherwise vest; provided, however, that a grantee ceasing to be a director,
     officer or employee of the Company or a subsidiary thereof on account of

               (I)  retirement  at or after the  normal  retirement  date in any
          applicable   pension   plan  of  the  Company  in  which  the  grantee
          participates,

               (II) injury or  disability  as  determined  under any  disability
          insurance  policy  or  plan  of  the  Company  in  which  the  grantee
          participates,

               (III) dismissal for redundancy,

               (IV) death, or

               (V) on concurrence of the Board (which concurrence may be granted
          or withheld in its sole discretion),  the sale or other disposition of
          the  subsidiary  for which the person  acts as  director or officer or
          which employs the employee or the operating division of the Company or
          a subsidiary for which the employee performs his employment,

     shall,  subject to (vi)  below,  vest in his or her Award as of the date of
     the event in (I) - (V), as determined by the Board;

          (iv) in the event of a Change in Control  (as  defined in Section  9),
     subject to (vi)  below,  the Award  shall vest on the date of the  relevant
     event, as determined by the Board;

          (v) it shall not vest  unless the Board  shall be  satisfied  that the
     issuance of shares in connection with that Award will be in compliance with
     all relevant  rules and  regulations  of the United States  Securities  and
     Exchange Commission; and

          (vi) it shall not vest unless and until the Board  certifies  that any
     Performance  Criteria  upon which the vesting of that Award is  conditioned
     have been satisfied.

                                        4

<PAGE>

     (b)  Performance  Criteria.  The Board may establish  Performance  Criteria
which must be satisfied as a condition for any Award to vest.  Such  Performance
Criteria  shall  be set  forth in the  notice  of  Award  and  shall be based on
objective performance goals over the performance period determined by the Board.
Such  goals  may be based on one or more  business  criteria  that  apply to the
grantee, a business unit of the Company,  or the Company as a whole,  including,
but not  limited  to,  share  price,  market  share,  sales,  earning per share,
earnings before tax, return on equity,  total shareholder  return, or costs. The
Board may also provide for pro-rata  satisfaction of Performance Criteria in the
event of (i) a grantee's  termination  of employment  before the expiration of a
performance period on account of the events in paragraph  (a)(iii)(I)-(V) above,
or (ii) a Change in Control (as defined in Section 9), in either case before the
expiration of the relevant performance period.

     The  Performance  Criteria shall be determined in accordance with generally
accepted  accounting  principles,  if  applicable,   and  shall  be  subject  to
certification by the Board, provided, that the Board shall have the authority to
make  equitable  adjustments to the  Performance  Criteria (i) in recognition of
unusual or non-recurring events affecting the Company or its subsidiaries or the
financial  statements  of the  Company or any  subsidiary,  (ii) in  response to
changes in applicable laws or  regulations,  (iii) to account for items of gain,
loss  or  expense  determined  to be  extraordinary  or  unusual  in  nature  or
infrequent in occurrence, or related to the disposal of a segment of a business,
or (iv) related to a change in accounting principles.

     The  failure to satisfy the  Performance  Criteria  within the  performance
period over which such  Performance  Criteria is measured shall cause the Awards
subject to such Performance Criteria to lapse and become void to the extent that
the  Performance  Criteria  have  not  been  met as of  the  last  day  of  such
performance period.

9.   Change in Control

     For purposes of the Plan,  "Change in Control"  means any of the  following
events:

     (a) any "person" (as that term is defined for the purposes of Section 13(d)
or 14(d) of the U.S. Securities Exchange Act of 1934), other than any subsidiary
of the Company, shall directly or indirectly acquire more than 40% of the voting
shares of the Company then outstanding and then entitled to vote generally in
the election of directors of the Company; or

     (b)  individuals  who, on the date of adoption of the Plan,  constitute the
Company's Board (or the successors of such  individuals  nominated by such Board
or a committee thereof on which such individuals or their successors  constitute
a majority) shall cease to constitute a majority of the Company's Board; or

     (c) the Company amalgamates,  merges or consolidates with or into any other
corporation,  other than a corporation which directly, or indirectly through one
or more intermediaries,  is controlled by any subsidiary of the Company, without
the approval of the Company's Board constituted as provided in clause (b) above;
or

     (d) the Company sells,  leases,  exchanges or otherwise  disposes of all or
substantially  all of its  assets  and  business  without  the  approval  of the
Company's Board constituted as provided in clause (b) above.

                                        5

<PAGE>

     The  obligations  of the Company  under the Plan shall be binding  upon any
successor  company,   corporation  or  other  organization  resulting  from  any
amalgamation,  merger,  consolidation or other reorganization of the Company, or
upon any successor  company,  corporation or  organization  succeeding to all or
substantially  all of the assets and business of the  Company,  in any such case
which would constitute a Change in Control. The Company agrees that it will make
appropriate  provisions for the  preservation of all grantees'  rights under the
Plan in any agreement or plan that it may enter into or adopt to effect any such
amalgamation,  merger,  consolidation,  reorganization  or  transfer  of  assets
constituting a Change in Control.

10.  Adjustment of Number or Kind of Shares

     If the Company  shall  effect one or more share  splits,  share  dividends,
combinations of shares, exchanges of shares,  repurchases,  recapitalizations or
similar capital adjustments,  the Board shall appropriately adjust the aggregate
number of shares  with  respect  to which  Awards  have been made or may be made
under the Plan in order to  prevent  dilution  or  enlargement  of the rights of
grantees  under  Awards.  Every Award under the Plan shall  provide that, in the
event of any such capital adjustments, the number and kind of shares to which it
applies shall be appropriately adjusted.

11.  Amendment

     The Plan may be amended from time to time by the Board.  No amendment shall
alter or impair any of the rights or  obligations  of any  person,  without  his
consent, under any Award theretofore granted under the Plan.

12.  Termination

     The Plan shall terminate upon the first of the following dates or events to
occur:

          (a) if the Company is a  participant  in any  corporate  amalgamation,
     merger,  consolidation or other transaction and no provision is made at the
     time of the transaction to continue the Plan, except as provided in Section
     9;

          (b) resolution of the Board terminating the Plan; or

          (c) on May 7, 2017.

     In the  event  of  termination  of the  Plan  in any of the  ways  provided
hereinabove,  the provisions of the Plan shall continue in full force and effect
as regards any Awards prior to such termination.

13.  Effect of Awards Upon Employment

     Nothing in the Plan  shall be  construed  as giving any person  acting as a
director or officer of or employed by the Company or any subsidiary  thereof the
right to be  retained  in such  directorship,  officership  or  employment.  The
Company and any subsidiary  thereof and the shareholders shall have the right to
dismiss any director,  officer or employee at any time with or without cause and
without  liability for the effect which such dismissal  might have upon him as a
participant under the Plan, and under no circumstances shall a person ceasing to
be a director,  officer or  employee  by reason of  dismissal  or  otherwise  be
entitled  to or  claim  against  the  Company  or  any  subsidiary  thereof  any
compensation for or in respect of any consequent reduction or loss of his

                                        6

<PAGE>

rights or benefits (actual or prospective) under any Award held by him or her in
connection with the Plan.

     Any  determination  by the Board that the grantee is  eligible  for vesting
under Section 7(a)(iii)(II) is conditioned upon the grantee's consent to the use
of his or her personal  information,  including medical records, for the purpose
of making the necessary  determination  as to the grantee's  injured or disabled
condition.

14.  No Funding

     Nothing contained in the Plan or any Award shall require the Company or any
subsidiary thereof to set aside any funds or shares for delivery  hereunder.  No
grantee of any Award or any other person  obtaining the Award upon the grantee's
death  shall have any  rights  under the Plan that are  greater  than those of a
general creditor of the Company.

15.  Construction

     In all  respects  the Plan  shall  be  governed  by,  and be  construed  in
accordance with, the laws of the Islands of Bermuda.

                                       7

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