Document:

Exhibit  - 10.5

 

SERVICE
AGREEMENT

 

 

 

THIS AGREEMENT is made as of the 25th day of March, 2002

 

BETWEEN:

 

MONTPELIER REINSURANCE LTD., whose registered office is situate at Clarendon
House, 2 Church Street, Hamilton Bermuda (the “Company”); and

 

CHRISTOPHER L. HARRIS, of 16 Inghams Drive, Pembroke, Bermuda HM04 (the “Executive”).

 

WHEREAS the parties desire to record the terms
and conditions upon which the Executive is employed by the Company.

 

NOW THEREFORE in consideration of the mutual
covenants and promises herein contained

 

IT IS HEREBY AGREED as follows:

 

1.                                       Interpretation

 

1.1                                 In this Agreement unless the context otherwise
requires the following words and expressions shall have the following
  meanings:

 

this “Agreement” means this service agreement and includes all schedules hereto;

 

the “Board” means the board of directors of the Company;

 

the “Companies Act” means the Companies Act 1981;

 

“Group Company” means and includes any company which is from time to time a holding
company (as defined by Section 86 of the Companies Act, but irrespective
of whether it is a Bermuda company or an overseas company) of the Company, a
subsidiary company (as so defined) of the Company, a subsidiary company (as so
defined) of a holding company (as so defined) of the Company or in which the
Company owns at least 50% of the issued share capital;

 

the “Parties” means the parties to this Agreement;

 

1.2                                 In this Agreement unless the context otherwise requires:

 

 

 

 

1.2.1                        references to statutory provisions shall be construed as
references to those provisions as amended or re-enacted or as their application
is modified by other provisions from time to time and shall include references
to any provisions of which they are re-enactments (whether with or without
modification); and

 

1.2.2                        references to clauses and schedules are references to
clauses hereof and schedules hereto; references to sub-clauses or paragraphs
are, unless otherwise stated, references to sub-clauses of the clause or
paragraphs of the schedule in which the reference appears;

 

1.2.3                        references to the singular shall include the plural
and vice versa and references to the masculine shall include the
  feminine and/or neuter and vice versa;
and

 

1.2.4                        references to persons shall include companies,
partnerships, associations and bodies of persons, whether
  incorporated or unincorporated.

 

2.                                       Appointment

 

Subject to,
and conditional upon, initial and continued permission being granted to work
and reside in Bermuda by the Bermuda Department of Immigration of the Ministry of
Home Affairs, the Company hereby appoints
the Executive and the Executive hereby agrees to serve the Company as Chief
Actuary and Senior Vice President subject to the terms and conditions
hereinafter contained.

 

3.                                       Term

 

The
appointment of the Executive hereunder began on 25th March 
2002 and shall continue unless and until terminated in accordance with the
provisions hereinafter contained.

 

4.                                       Duties and Responsibilities

 

During the continuance of his employment
hereunder:

 

4.1                                 The Executive shall perform such duties and exercise
such powers in relation to the business of the Company or of any Group Company
as may from time to time reasonably be assigned to or vested in him by the
Board and shall give to the Board such information regarding the affairs of the
Company and any Group Company as it shall require and at all times and in all
respects conform to and comply with the reasonable directions and regulations
made by the Board. The Executive shall perform such services for any Group
Company (without further remuneration except as otherwise agreed) and shall
accept such offices in any such Group Companies as the Board may reasonably
require.

 

 

2

 

 

4.2                                 The Executive shall well and faithfully serve the Company
and the Group Companies and use his best endeavours to promote develop and
extend their businesses and interests giving at all times the full benefit of
his knowledge, expertise, technical skill and ingenuity.

 

4.3                                 The Executive shall not without the consent of the
Board directly or indirectly engage in any other business or be concerned or
interested in any other business of a similar nature to or which would or might
compete with the business for the time being carried on by the Company or any
Group Company save that he may (but without prejudice to clause 4.2) be
interested as a holder or beneficial owner of not more than 5% of any class of
stock, shares or debentures in any company (other than the Company, in which
case, such limit shall not apply) whose stock, shares or debentures are listed
or dealt in on an appointed stock exchange (as defined in the Companies Act).

 

4.4                                 The Company
reserves the right to require the Executive
not to attend work/and or not to undertake all or any of his duties hereunder
during a period of up to 12 months immediately preceding the termination of his
employment, provided always that the Company shall continue to pay the Executive’s salary and contractual
benefits for such period.  This Clause
4.4 shall not affect the general right of the Company to suspend the Executive for good cause.

 

5.                                       Remuneration and Reimbursement

 

5.1                                 The Company shall pay
to the Executive by way of remuneration for his services hereunder a salary at
the rate (subject as hereinafter provided) of US$240,000 per annum. Such salary
shall be inclusive of any director’s fees payable to the Executive by the
Company or any Group Company and accordingly either the Executive shall pay
over or procure to be paid over to the Company all such fees received or
receivable by him or his remuneration hereunder shall be reduced pro
tanto.  The said salary shall be payable
by equal monthly instalments in arrears on the day appointed by the Board for
the payment of employees’ salaries or pro rata where the Executive is only
employed hereunder during part of the month. The Compensation Committee of the
Company’s Board, subject to ratification by the Board, may increase or reduce
the Executive’s salary on each anniversary of the date of this Agreement, but
not below the amount of the Executive’s starting salary.

 

5.2                                 The Company shall also pay to the Executive all
reasonable travelling hotel and other out-of-pocket expenses which are properly
incurred by him in or about the performance of his duties hereunder and for which
vouchers (if so required) are provided to the reasonable satisfaction of the
Board.

 

5.3                                 The Company
will pay for two business-class round-trip flights to the United States per
annum for the Executive and his
  family.

 

5.4                                 The Executive shall be entitled to participate in:

 

 

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                                                (i)                                     the Company’s medical and Dental Plan

 

                                                (ii)                                  a suitable pension arrangement in accordance with Bermuda law; and

 

(iii)                               Any other employment benefit plans generally available
to executives in the Company of the Executive’s stature, to
  the extent not duplicative of benefits
otherwise provided by the Company.

 

5.5                                 During the Executive’s appointment
under this Agreement, he shall receive a housing allowance of $6,500 per month,
plus a tax gross-up payment to reimburse the Executive for any income taxes
paid by the Executive on the allowance.

 

6.                                       Normal Hours and Holidays

 

The Executive shall conform to such hours of
work as may from time to time reasonably be required of him and shall not be
entitled to receive any additional remuneration for work outside his normal
hours.  In addition to the usual public
holidays the Executive shall, subject as mentioned in the Schedule, be entitled
without loss of remuneration to 25 days holiday in each year to be taken at
such time or times as may be approved by the Chief Executive Officer of the
Company.  Any entitlement to holiday
remaining at the end of any year may be carried forward to the next succeeding
year but no further.  The entitlement to
holiday (and on termination of employment holiday pay in lieu of holiday)
accrues pro rata throughout each year, provided that fractions of days shall be
disregarded in calculating entitlement to holiday or payment in lieu of
holiday.

 

7.                                       Confidentiality

 

7.1                                 The Executive shall not either during the continuance
of his employment hereunder (otherwise than in the proper performance of his
duties hereunder) or at any time after the determination thereof divulge to any
person whomsoever and shall use his reasonable endeavours to prevent the
publication or disclosure of any trade secret or other confidential information
concerning the business, finances, accounts, dealings, transactions or affairs
of the Company or any Group Company or of any of their respective  clients entrusted to him or arising or coming
to his knowledge during the course of his employment hereunder or otherwise.

 

7.2                                 The Executive shall upon the termination of his
employment hereunder immediately deliver up to the Company all fee schedules,
lists of clients, correspondence and other documents, papers and property
belonging to the Company or any Group Company or related to any of the matters
referred to in clause 7.1 which may have been prepared by him or have come into
his possession in the course of his employment hereunder and shall not retain
any copies thereof.

 

 

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8.                                       Change of Status

 

8.1                                 If, before the expiration or determination of this
Agreement, the employment of the Executive hereunder shall be terminated by
reason of the liquidation of the Company or for the purpose of reconstruction
or amalgamation, and he shall be offered employment with any concern or
undertaking resulting from such reconstruction or amalgamation on terms and conditions
not less favourable (financially and in personal status) than the terms of this
Agreement, then he shall have no claim against the Company in respect of the
termination of his employment hereunder save in respect of accrued benefits.

 

8.2                                 Unless this agreement has been terminated under clause
9, if for any reason the Executive shall either:

 

8.2.1                        at the Company’s request resign as a director of the
Company or any Group Company; or

 

8.2.2                        be removed from office as a director of the Company or
any Group Company;

 

then, notwithstanding his so ceasing to be a
director, this Agreement shall not automatically terminate and thereupon (and
without any claim against the Company in respect of such loss of office) the
Executive’s employment hereunder shall continue for the remaining period of
this Agreement and all the terms and conditions of this Agreement shall with
the necessary variations apply to the Executive’s employment but in any event,
the Executive’s basic annual salary will not at any time be less than the
Executive’s starting salary under this agreement.

 

9.                                       Termination

 

9.1                                 This Agreement shall
be subject to termination by the Company by summary notice in writing:

 

9.1.1                                                                        if the 
Executive’s application for permission to work and reside in Bermuda is refused or
the Executive’s work permit and/or permission to reside is revoked, and or a
renewal application is refused

 

9.1.2                                                                        if the Executive shall become of unsound mind or be or
become a patient for the purpose of any
  statute relating to mental health;

 

9.1.3                                                                        if the Executive shall at any time be prevented by
illness or accident from performing his duties for a period of 6 consecutive
months or if he shall be absent from his duties by reason of illness or
accident for more than 180 working days in any consecutive 

 

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                             twelve months
(provided that any such periods may be extended

at the sole discretion of the Board);

 

9.1.4                                                                        other than by
written notice, if the Executive terminates his employment for any reason prior
to the expiration of this
Agreement other than in accordance with the clause 9.2 (b) or if the
Executive shall have failed or neglected efficiently and diligently to
discharge his duties hereunder having received a written warning for the
misconduct within the previous 6 months or shall have committed any serious
breach of his obligations hereunder or shall have been guilty of conduct
tending to bring himself or the Company or any Group Company into disrepute or
calculated or likely to affect prejudicially the interests of the Company or
any Group Company or shall have committed an act of bankruptcy or compounded
with his creditors generally.

 

9.2                                 Subject to 9.1 above, this Agreement shall be subject
to termination at any time by notice:

 

                                                (a)                                  if by the Company, then upon 12 months’ written notice;  or

 

                                                (b)                                 if by the Executive upon 6 months’ written notice.

 

                                                The Company
reserves the right to terminate the Executive’s appointment by payment in lieu
of notice.

 

9.3                                 The termination by the Company of this Agreement shall be without
prejudice to any claim which the Company may have for damages arising from any
breach thereof by the Executive giving rise to such termination.

 

9.4                                 Until this Agreement is terminated pursuant to clause
9.1 or clause 9.2, the Executive shall remain entitled to receive his
  salary payable hereunder in full
notwithstanding illness or other incapacity.

 

10.                                 Consequence of Termination

 

10.1                           Upon the termination of this Agreement howsoever
arising, the Executive shall at any time or from time to time thereafter upon
the request of the Company resign, without claim for compensation for loss of
office, as a director of the Company and such offices held by him in any of the
Group Companies as may be so requested and should he fail to do so, the Company
is hereby irrevocably authorised to appoint some person in his name and on his
behalf to sign and do any documents or things necessary or requisite to give
effect thereto.

 

 

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10.2                           Notwithstanding anything else to the contrary herein,
should the Company terminate this Agreement:

 

(a) pursuant to clause 9.1.1, then the
Executive shall be entitled to receive three months salary by way of
repatriation expenses together with three months accommodation allowance at the
rate set out in clause 5.5 and reimbursement of a one way business class air
fare for himself and his family to the United States, and all other payments
under this Agreement shall immediately cease and the Company shall have
no further obligations to the Executive arising hereunder;

 

(b) 
pursuant to clause 9.1.2 or
clause 9.1.3, then the Executive shall continue to receive his salary for a
period of 12 months following the termination of this Agreement and the Company
shall have no further obligations to the Executive arising hereunder;

 

(c) pursuant to clause 9.1.4,
then all payments under this Agreement shall immediately cease and the Company
shall have no further obligations to the Executive arising hereunder.

 

11.                                 Non-Competition

 

11.1                           Since the Executive has obtained in the course of his
employment prior to the date hereof and is likely to obtain in the course of
his employment hereunder knowledge of the trade secrets and also other
confidential information in regard to the business of the Company and of any
Group Company with which  he becomes
associated, the Executive hereby agrees with the Company that in addition to
the restrictions contained in clause 4.3 he will not in Bermuda, the United
States of America, the United Kingdom or the European Economic Community:

 

11.1.1                  during the period of 12 months following the termination of his
employment hereunder (howsoever caused) either on his own account or for any
other person, firm or company directly or indirectly be engaged in or concerned
with any business or undertaking which is engaged in or carries on in Bermuda,
the United States of America, the United Kingdom or the European Economic
Community any insurance business which competes or seeks to compete with the
business carried on by the Company or any other Group Company at the date of
termination.

 

11.1.2                  During the period of 12 months following the termination aforesaid
either on his own account or for any other person, firm or company directly or
indirectly solicit, interfere with or endeavour to entice away from the Company
or any Group Company the custom of any person, firm or company who at the date
of termination aforesaid or who in the period of 12 months immediately prior to
such date was a customer or client of or in the habit of dealing with the
Company or any Group Company or who at such date was to his knowledge
negotiating with the Company or any Group Company in relation to all or part of
its business.

 

 

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11.1.3                  During the period of 12 months following the termination aforesaid
either on his own account or for any other person, firm or company solicit the
services of or endeavour to entice away from the Company or any Group Company
any director, employee or consultant of the Company or any Group Company
(whether or not such person would commit any breach of his contract of
employment or engagement by reason of leaving the service of such company) nor
shall the Executive knowingly employ or aid or assist in or procure the
employment by any other person, firm or company of any such person.

 

11.2                           While the restrictions aforesaid are considered by the
Parties to be reasonable in all the circumstances it is agreed that if any of
such restrictions shall, taken together, be adjudged to go beyond what is
reasonable in all the circumstances for the protection of the legitimate
interests of the Company or any Group Company but would be adjudged reasonable
if part of the wording thereof were deleted or modified the said restrictions
shall apply with such words deleted or modified.

 

11.3                           The Executive hereby agrees that he will at the
request and cost of the Company enter into a direct agreement or undertaking
with any Group Company whereby he will accept restrictions and provisions
corresponding to the restrictions and provisions herein contained (or such of
them as may be appropriate in the circumstances) in relation to such services
and such area and for such period as such company or companies may reasonably
require for the protection of its or their legitimate interests provided that
the terms of such restrictions and provisions will not be more onerous than the
restrictions and provisions of this agreement.

 

12.                                 Untrue Statements

 

The Executive shall not knowingly at any time
make any untrue statement in relation to the Company or any Group Company and
in particular shall not after the determination of his employment hereunder
wrongfully represent himself as being employed by or connected with the Company
or any Group Company.

 

13.                                 Schedule

 

The provisions set out in the schedule hereto
shall apply as if incorporated in this Agreement.

 

14.                                 Delegation

 

The Company may at any time and from time to
time delegate its power and authority under this Agreement to any Group Company
and such delegation (or the revocation thereof) shall be effective upon the
Company’s giving written notice of the same to the Executive.

 

 

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15.                                 Notices

 

Notices may be given by either Party by
pre-paid first class post or by hand delivery addressed to the other Party at
(in the case of the Company) its registered office for the time being and (in
the case of the Executive) his last known address.  Any such notice given by post shall be deemed
to have been served on the second week day after despatch (public holidays
excepted) and any notice so given by hand shall be deemed to have been served
when delivered if delivered during normal business hours or, if delivered
outside such hours, at the next time after delivery when normal business  hours commence.

 

16.1                           Miscellaneous

 

The expiration or termination of this Agreement
howsoever arising shall not operate to affect such of the provisions hereof as
are expressed or intended to remain in full force and effect notwithstanding
such termination.

 

16.2                           If any of the clauses, conditions, covenants or
restrictions of this Agreement or any deed or document emanating from it shall
be found to be void but would be valid if some part thereof were deleted or
modified, then such clause, condition, covenant or restriction shall apply with
such deletion or modification as may be necessary to make it valid and
effective.

 

16.3                           This Agreement shall be binding and enure for the
benefit of the successors of the Parties but shall not be assignable.

 

16.4                           This Agreement (together with any documents referred
to herein) constitutes the whole agreement between the Parties
  relating to its subject matter.

 

16.5                           The headings in this Agreement are inserted for
convenience only and shall not affect the construction of this Agreement.

 

16.6                           This Agreement may be executed in counterparts each of
which when executed and delivered shall constitute an original but
  all such counterparts together shall
constitute one and the same instrument.

 

16.7                           No provision in this Agreement may be amended unless
such amendment is agreed to in writing, signed by the Executive and by a duly
authorised officer of the Company.  No
waiver by either Party of any breach by the other Party of any condition or
provision of this Agreement to be performed by such other Party shall be deemed
a waiver of a similar or dissimilar condition or provision at the same or any
prior or subsequent time.  Any waiver
must be in writing and signed by the Executive or a duly authorised officer of
the Company, as the case may be.

 

 

9

 

 

16.8                           This Agreement shall be governed by and construed in
accordance with the laws of Bermuda and the Parties hereby
  irrevocably submit to the non-exclusive
jurisdiction of the courts of Bermuda.

 

 

 

IN WITNESS WHEREOF, the Parties have executed
this Agreement as of the date first written above.

 

 

	
  SIGNED by

  	
  )

  
	
  on behalf of Montpelier Reinsurance Ltd.

  	
  )

  
	
  in the presence of:

  	
  )

  
	
   

  	
   

  
	
   

  	
   

  
	
   /s/ Mandy White

  	
   

  
	
  Witness

  	
   

  

 

 

 

 

	
  SIGNED by Christopher L. Harris

  	
  )

  
	
  in the presence of:

  	
  )

  
	
   

  	
   

  
	
   

  	
   

  
	
   /s/ Christopher L. Harris

  	
   

  
	
  Witness

  	
   

  

 

 

 

10

 

 

 

THE SCHEDULE

 

1.                                       Hours of Work:  
The Executive shall conform to such hours of work as may reasonably be
required of him for the proper performance of his duties hereunder and shall
not be entitled to receive any additional remuneration for work outside his
normal hours.

 

2.                                       Medical and Other Insurance:  The Executive will be entitled to participate
in the Company medical insurance plan and other insurance plans from time to
time subject to the provisions of the company’s insurance plans in effect at
the time.

 

3.                                       Pension Provisions: 
The Executive will be entitled to participate in the Company’s pension
plan from time to time subject to the provisions of such pension plan in effect
at the time.

 

4.                                       Incentive Plans: 
The Executive will be entitled to participate in the Montpelier Annual
Incentive Plan, the Montpelier Long-Term Incentive Plan and any other incentive
plan for which the Executive is eligible, from time to time subject to the
provisions of such plans in effect at the time.

 

5.                                       Employee Handbook: The Executive shall adhere to the
Company’s Employee Handbook, a copy of which has been given to the
Executive.  The Handbook contains details
of Company policies and procedures and descriptions of  disciplinary and grievance procedures, dress
code and other matters relevant to the Executive’s employment.  The Company reserves the right to vary the
Handbook from time to time.

 

 

11Exhibit - 10.13

 

 

Montpelier Re Holdings Ltd.

Amended and Restated Directors Share Plan

 

1.         Purpose
of this Plan.

 

The
purpose of this Montpelier Re Holdings Ltd. Directors Share Plan (as amended
from time to time, the “Plan”) is to
provide Non-Employee Directors of Montpelier Re Holdings Ltd. (the “Company”) with the opportunity to receive equity-based
compensation for their services to the Company.

 

2.         Definitions.

 

“Annual Meeting”
means the Company’s annual general meeting of shareholders.

 

“Annual Retainer”
means the annual amount payable by the Company to a Non-Employee Director for
Board service as a Non-Employee Director.

 

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

 

“Director” means
an individual who is a member of the Board.

 

“Non-Employee Director”
means an individual who is a Director and who does not receive compensation for
service as an employee of the Company or any of its subsidiaries, including an
individual who is a Director and who previously did receive compensation for
service as an employee of the Company or any of its subsidiaries.

 

“Participant”
means a Non-Employee Director who elects to participate in this Plan.

 

“Plan Year”
means (i) the period beginning on the date of the 2005 Annual Meeting and
ending on the date immediately preceding the date of the 2006 Annual Meeting
and (ii) for each year beginning on and after the date of the 2006 Annual
Meeting, the period beginning on the date of the Annual Meeting and ending on
the date immediately preceding the date of the next Annual Meeting, for so long
as this Plan shall remain in effect.

 

“Share” means a
common share of Montpelier Re Holdings Ltd., par value 1/6 cent per share.

 

“Share Unit”
means an award granted under Section 4(b) of this Plan, each of which
units represents the right to receive a Share in accordance with the terms of
the Plan or any award agreement evidencing such award.

 

 

 

3.         Effective Date; Eligibility.

 

(a)   This
Plan shall become effective from and including the date of the 2005 Annual
Meeting.  This Plan was amended and
restated effective as of July 26, 2007.

 

(b)   Only
Non-Employee Directors shall be eligible to participate in this Plan.

 

(c)   In
order to participate in this Plan, a Non-Employee Director shall complete a
notice of election, in such form as the Board or its designee may
prescribe.  Such form shall be submitted
on or before the date of each Annual Meeting beginning with the 2005 Annual
Meeting with respect to the Plan Year beginning on such date.  Such election shall be deemed effective upon
the election of the Non-Employee Director to serve as a member of the Board at
the Annual Meeting.  Once made, an
election shall remain in effect with respect to that Plan Year and any
subsequent Plan Year, unless an election to revoke participation is filed with
respect to a Plan Year on or prior to the beginning of such Plan Year.

 

4.         Awards.

 

(a)   Each
Non-Employee Director who elects to participate in this Plan will have his or
her Annual Retainer reduced by an aggregate amount of $30,000, such reduction
to be made on a quarterly basis in arrears during the Plan Year in the amount
of $7,500 per quarter.

 

(b)   In
connection with each quarterly reduction in accordance with Section 4(a),
the Participant shall be credited with an award of Share Units having a Fair
Market Value of $7,500 on the date of issuance. 
For purposes of this Plan, “Fair Market Value”
means the average closing per share price of a Share for the five days prior to
and including the date of issuance of the Share Units, as quoted on the New
York Stock Exchange or, if the Shares are no longer quoted on the New York
Stock Exchange, as quoted on another nationally recognized stock exchange.

 

5.         Terms and Conditions of Awards.

 

(a)   Each
Share Unit granted under Section 4(b) shall represent a Participant’s
right to be issued one fully paid Share upon the termination of his or her
service as a Director for any reason. 
Each Share issued under this Plan shall be issued in consideration of
the Director’s services to the Company.

 

(b)   The
Shares underlying a Participant’s Share Units (or cash in lieu of all or some
of such Shares, at the discretion of the Compensation and Nominating Committee
of the Board) shall be delivered to him or her

 

 

2

 

as soon as reasonably practicable following his or her termination of
service as a Director (the “Share Unit Delivery Date”);
provided that such Share Unit Delivery
Date shall occur prior to such time that would result in, to the extent
necessary to avoid the incurrence of any “additional tax” or interest under Section 409A
of the U.S. Internal Revenue Code of 1986, as amended.

 

(c)   Share
Units shall carry no voting rights.

 

(d)   During
the period the Share Units are outstanding, they shall be credited with additional
Share Units having a value equal to dividends declared on the number of Shares
to which the Share Units then relate. 
Such additional Share Units shall be paid out at the same time and in
the same form as the Share Units issued pursuant to Section 4(b) above.

 

(e)   Share
Units, and the Shares underlying such Share Units, may not be sold,
transferred, pledged, assigned or otherwise alienated or hypothecated by a
Participant until the Shares underlying such Share Units (or cash, as
applicable) have been delivered on the Share Unit Delivery Date.

 

6.         Bermuda Government Regulations.

 

The Company shall not issue any Shares hereunder
unless and until all licenses, permissions and authorizations required to be
granted by the Government of Bermuda, or by any authority or agency thereof,
shall have been duly received.

 

7.         Amendment, Suspension and Termination.

 

 This Plan may
be amended or terminated by the Board at any time.  No amendment shall adversely affect any right
of any Participant with respect to any Share Units previously granted without
such Participant’s written consent.

 

8.         Miscellaneous.

 

(a)   No Right to Nomination. 
Nothing contained in this Plan shall confer upon any Director the right
to be nominated for re-election to the Board.

 

(b)   Withholding.  The
Company shall have the right to deduct from any award under this Plan any
federal, state or local income or other taxes required by law to be withheld
with respect to such award, as it may deem necessary or appropriate, in its
sole discretion.

 

(c)   Other Tax Considerations. 
Any Participant who is a taxpayer in a jurisdiction in which Share Units
would be taxable upon 

 

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issuance will receive an award of Shares under this Plan in lieu of
Share Units.

 

(d)   Governing Law.  This
Plan shall be governed by and construed in accordance with the laws of Bermuda,
without regard to conflicts of laws principles.

 

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