Document:

exhibit10_12.htm

 

Exhibit 10.12

 

 

 

 

 

 

 

 

 

Platinum Underwriters Reinsurance, Inc. 

Executive Retirement Savings Plan

 

 

 

 

 

 

 

 

Effective: January 1, 2011

 

  

  

  

 

	
  

	
Table of Contents

 

	
ARTICLE I INTRODUCTION

	1
	 	 	 	 
	  	
1.1

	
Introduction and Purpose

	1
	 	 
	
ARTICLE II DEFINITIONS

	2
	 	 	 	 
	  	
2.1

	
Account(s)

	2
	  	
2.2

	
Affiliated Company

	2
	  	
2.3

	
Benefit Distribution Date

	2
	  	
2.4

	
Board of Directors

	2
	  	
2.5

	
Change in Control

	2
	  	
2.6

	
Code

	3
	  	
2.7

	
Committee

	3
	  	
2.8

	
Company

	3
	  	
2.9

	
Compensation

	3
	  	
2.10

	
Disability

	3
	  	
2.11

	
Discretionary Employer Account

	3
	  	
2.12

	
Discretionary Employer Credits

	4
	  	
2.13

	
Effective Date

	4
	  	
2.14

	
Eligible Employee

	4
	  	
2.15

	
ERISA

	4
	  	
2.16

	
Investment Funds

	4
	  	
2.17

	
Matching Contribution Account

	4
	  	
2.18

	
Matching Contribution Credits

	4
	  	
2.19

	
Participant

	4
	  	
2.20

	
Plan

	4
	  	
2.21

	
Plan Year

	4
	  	
2.22

	
Qualified Plan

	4
	  	
2.23

	
Retirement Date

	5
	  	
2.24

	
Separation from Service

	5
	  	
2.25

	
Specified Employee

	5
	  	
2.26

	
Sponsor

	7
	  	
2.27

	
Valuation Date

	7
	  	
2.28

	
Written or "in Writing"

	7
	  	
2.29

	
Years of Service

	7
	 	 
	
ARTICLE III ELIGIBILITY AND PARTICIPATION

	8
	 	 	 	 
	  	
3.1

	
Eligibility to Participate

	8
	  	
3.2

	
Change in Status as Eligible Employee

	8
	  	
3.3

	
Cessation of Participation

	8
	 	 
	
ARTICLE IV EMPLOYER CREDITS

	9
	 	 	 	 
	  	
4.1

	
Establishment of Participant Accounts

	9
	  	
4.2

	
Matching Contribution Credits

	9
	  	
4.3

	
Discretionary Employer Contributions

	9
	  	
4.4

	
Employee Deferral Elections

	9
	  	
4.5

	
Credits for Investment Earnings and Debits for Investment Losses

	9

 

  

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ARTICLE V VESTING

	11
	 	 	 	 
	  	
5.1

	
Vesting of Matching Contribution Account

	11
	  	
5.2

	
Vesting of Discretionary Employer Account

	11
	  	
5.3

	
Accelerated Vesting

	11
	  	
5.4

	
Forfeiture of Non-vested Accounts

	11
	 	 
	
ARTICLE VI PAYMENT OF BENEFITS

	12
	 	 	 	 
	  	
6.1

	
Distributions of Benefits.

	12
	  	
6.2

	
Time and Form of Distributions

	12
	  	
6.3

	
Distributions to Specified Employees.

	12
	  	
6.4

	
Permitted Acceleration of Payment

	12
	  	
6.5

	
Payment For Unforeseeable Emergency

	12
	  	
6.6

	
Payment of Disability Benefits

	13
	  	
6.7

	
Payment of Death Benefits

	13
	  	
6.8

	
In-service Withdrawals and Distributions

	13
	  	
6.9

	
Change of Control

	13
	  	
6.10

	
Valuation of Distributions

	13
	  	
6.11

	
Timing of Distributions

	13
	 	 
	
ARTICLE VII AMENDMENT AND TERMINATION OF PLAN

	14
	 	 	 	 
	  	
7.1

	
Amendments Generally

	14
	  	
7.2

	
Right to Terminate

	14
	 	 
	
ARTICLE VIII MISCELLANEOUS

	15
	 	 	 	 
	  	
8.1

	
Unfunded Plan

	15
	  	
8.2

	
Nonguarantee of Employment

	15
	  	
8.3

	
Nonalienation of Benefits

	15
	  	
8.4

	
Taxes and Withholding

	15
	  	
8.5

	
Applicable Law

	15
	  	
8.6

	
Headings and Subheadings

	15
	  	
8.7

	
Severability

	15
	  	
8.8

	
Expenses

	15
	  	
8.9

	
Facility of Payment

	16
	  	
8.10

	
USERRA

	16
	 	 
	
ARTICLE IX ADMINISTRATION OF THE PLAN

	17
	 	 	 	 
	  	
9.1

	
Powers and Duties of the Committee

	17
	  	
9.2

	
Claims Procedure

	17
	 	 	 
	
Addendum I

	  	19

  

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ARTICLE I INTRODUCTION

 

1.1           Introduction and Purpose

 

 

The Platinum Underwriters Reinsurance, Inc. Executive Retirement Savings Plan (the “Plan”) has been established by Platinum Underwriters Reinsurance, Inc. (the “Sponsor”) for the purpose of providing deferred compensation for a select group of management or highly compensated employees who contribute materially to the continued growth, development and future business success of the Sponsor and certain affiliates (collectively, the “Company”).  This Plan is intended to enhance the long-term performance and retention of such management or highly compensated employees selected to participate in this Plan.

 

The Plan is intended to constitute a non-qualified, unfunded plan for federal tax purposes and for purposes of Title I of the Employee Retirement Income Security Act of 1974 as amended from time to time (“ERISA”).  Further, this Plan is intended to comply with Code Section 409A and is to be construed in accordance Code Section 409A, the Code Section 409A Regulations, and such additional regulatory and/or other guidance as may be issued by the Internal Revenue Service (“IRS”) or the U.S. Department of Treasury (“Treasury”) from time to time with respect to Code Section 409A.

 

Without affecting the validity of any other provision of the Plan, to the extent that any Plan provision does not meet the requirements of Code Section 409A and the Code Section 409A Regulations (including modifications and amendments thereto), the Plan shall be construed and administered as necessary to comply with such requirements until this Plan is appropriately amended to comply with such requirements.

 

The Plan was initially effective December 1, 2003 and was subsequently restated effective December 1, 2008.  The Plan, as herein restated, governs all credits and benefits provided for under the Plan, without regard to whether such credits accrued before January 1, 2005.  The Plan is now amended and restated effective January 1, 2011.  All credits in this Plan shall be subject to Code Section 409A, and the Code Section 409A Regulations.

 

This Plan shall function solely as a “top-hat” plan within the meaning of Sections 201(2), 301(a)(3), and 401(a)(1) of ERISA.  As such, this Plan is subject to limited ERISA reporting and disclosure requirements, and is exempt from all other ERISA requirements.  Distributions required or contemplated by this Plan or actions required to be taken under this Plan shall not be construed as creating a trust of any kind or a fiduciary relationship between the Company and any Participant, any Participant’s designated beneficiary, or any other person.

 

This Plan is to be maintained according to the terms of this document and the Sponsor or its designee shall have the sole authority to construe, interpret and administer the Plan.

 

  

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ARTICLE II DEFINITIONS

 

Wherever used in the Plan, the following terms have the meanings set forth below, unless otherwise expressly provided:

 

2.1          Account(s)

 

Account(s) means the separate account established for recordkeeping purposes only for each Participant comprised of the Matching Contribution Account and the Discretionary Employer Account as further described in Article IV of the Plan.

 

2.2          Affiliated Company

 

Affiliated Company means (i) the Sponsor, (ii) any other corporation which is a member of the controlled group of corporations which includes the Company, provided that in applying Code Section 1563(a)(1), (2), and (3) for purposes of determining a controlled group of corporations under Code Section 414(b) and determining trades or businesses under common control for purposes of Code Section 414(c) 50 percent (50%) is substituted for 80 percent (80%) each time used, and (iii) any other entity in which the Company has a significant equity interest or owns a substantial capital or profits interest.

 

2.3          Benefit Distribution Date

 

Benefit Distribution Date means the distribution date as described in Section 6.2 of the Plan.

 

2.4          Board of Directors

 

Board of Directors means the Board of Directors of the Sponsor.

 

2.5          Change in Control

 

Change in Control means a change in ownership or control of the Company or one of the events described below.  Whether a Change in Control has occurred shall be objectively determinable and not subject to the discretion of the Committee, the Board of Directors or any other person.

 

(a)           Change in Ownership of the Company.  The acquisition by any person, entity or group of stock of the Company that, together with the stock already held by such person, entity or group, constitutes more than 50% of the total fair market value or total voting power of the stock of the Company; provided that if any one person, entity 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, entity or group shall not be considered to cause a change in ownership of the Company under this Section, or a change in effective control of the Company under subsection (b) below.  An increase in the percentage of stock owned by any person, entity or group, as a result of a transaction in which the Company acquires its stock in exchange for property shall be treated as an acquisition of stock for purposes of this Section.  This Section shall only apply when there is a transfer of Company stock (or issuance of Company stock) and stock of the Company remains outstanding after the transaction.

 

(b)           Change in Effective Control of the Company.  During any 12-month period, (i) the acquisition by any person, entity or group of stock of the Company that constitutes 30% or more of the total voting power of the stock of the Company, or (ii) a majority of the members of the Board of Directors is replaced by directors whose appointment or election is not endorsed by a majority of the members of the Board of Directors as constituted prior to the date of such appointment or election; provided that if any person, entity or group is considered to effectively control the Company within the meaning of this Section, the acquisition of additional control of the Company shall not be considered to cause a change in effective control of the Company under this Section, or a change ownership of the Company under subsection (a).

 

(c)           Change in Ownership of a Substantial Portion of the Company’s Assets.  During any 12-month period, the acquisition by any person, entity or group of assets of the Company that have a total gross fair market value equal to more than 40% of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition.  For purposes of this Section, “gross fair market value” means the value of the Company’s total assets or the value of the assets being disposed of, determined without regard to any associated liabilities.  Notwithstanding the foregoing, a Change in Control shall not occur under this Section where there is a transfer of assets to an entity that is controlled by the shareholders of the Company immediately after the transfer, including:

 

	
  

	
(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;

 

  

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(iii)

	
a person, entity or group that owns, directly or indirectly, 50% or more of the total value or voting power of all of 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, entity or group described above in subparagraph (3).

 

(d)           For purposes of Section 2.6, the following rules shall apply:

 

	
  

	
(i)

	
Persons or entities shall not be considered to be acting as a group solely because they purchase or own stock of the Company at the same time, or as a result of the same public offering.  However, persons or entities shall be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company.  If a person or entity owns stock of the Company and stock of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company, such shareholder shall be considered to be acting as a group only with other shareholders of the Company prior to the transaction and not with respect to the shareholder’s ownership interest in the other corporation.

 

	
  

	
(ii)

	
Stock ownership shall be determined in accordance with Code Section 318(a).  Stock underlying a vested option shall be considered to be owned by the individual who holds the vested option (and stock underlying an unvested option shall not be considered to be owned by the individual who holds the unvested option).  For purposes of the preceding sentence, however, if a vested option is exercisable for stock that is not substantially vested (as defined in Treas. Reg. sections 1.83-3(b) and (j)), the stock underlying the option shall not be treated as owned by the individual who holds the option.

 

2.6          Code

 

Code means the Internal Revenue Code of 1986, as amended.  Where reference is made to “Code Section 409A Regulations,” this is intended to refer to Treasury Regulation Sections 1.409A-1 through –6, as such regulations may be modified or amended by the Treasury from time to time.

 

2.7          Committee

 

Committee means the Investment Committee appointed by the Board of Directors of the Sponsor that will be responsible for the administration of the Plan pursuant to Article IX.

 

2.8          Company

 

Company means Platinum Underwriters Reinsurance, Inc., a Maryland corporation and wholly-owned indirect subsidiary of Platinum Underwriters Holdings, Ltd., a publicly traded company, and its affiliate, Platinum Administrative Services, Inc., a Delaware corporation

 

2.9          Compensation

 

Compensation means cash compensation as defined in the Qualified Plan maintained by the Company to the extent such compensation is in excess of the limit imposed under Code Section 401(a)(17).  In no event, however, shall a Participant’s compensation include, for purposes of the Plan, any item of compensation paid or distributed to the Participant after a period of deferral, whether under this Plan or any other program of deferred compensation maintained by the Company or any Affiliated Company.

 

2.10        Disability

 

A Participant shall be deemed to have a condition that constitutes a “Disability” if the Participant is “Disabled” under the rules set forth herein.  For this purpose, a Participant is Disabled if the Participant is determined to be totally disabled by the Social Security Administration.

 

The determination of whether a Participant is disabled may be made by any person, at the Committee’s discretion, including the administrator of a disability insurance program and the Committee itself.

 

2.11        Discretionary Employer Account

 

Discretionary Employer Account means the separate account established by the Committee for recordkeeping purposes only to track Discretionary Employer Credits in the name of each Participant in accordance with Section 4.1 of the Plan.

 

  

- 3 -

  

 

2.12        Discretionary Employer Credits

 

Discretionary Employer Credits means the amounts credited to a Participant’s Discretionary Employer Account in accordance with Section 4.3 of the Plan.

 

2.13        Effective Date

 

Effective Date means January 1, 2011, the date of the amendment and restatement of the Plan. The plan was originally effective December 1, 2003 and was subsequently restated effective December 1, 2008.

 

2.14        Eligible Employee

 

Eligible Employee means participants in the Qualified Plan with base salary in excess of the limit of Code Section 401(a)(17) for such Plan Year and who are employees of the Company and are approved by the Committee for entry into the Plan.

 

2.15        ERISA

 

ERISA means the Employee Retirement Income Security Act of 1974, as amended.

 

2.16        Investment Funds

 

Investment Funds means one or more investment alternatives made available under the Plan by the Sponsor for designation by Participants under the Plan for purposes of determining investment earnings and losses.

 

2.17        Matching Contribution Account

 

Matching Contribution Account means the separate account established by the Committee for recordkeeping purposes only to track Matching Contribution Credits in the name of each Participant in accordance with Section 4.1 of the Plan.

 

2.18        Matching Contribution Credits

 

Matching Contribution Credits means the amounts credited to a Participant’s Matching Contribution Account in accordance with Section 4.2 of the Plan.

 

2.19        Participant

 

Participant means any present or former Eligible Employee who has become a Participant in the Plan in accordance with the provisions of Article III and who continues to have an Account balance under the Plan or whose beneficiary has such Account balance.

 

2.20        Plan

 

Plan means the Platinum Underwriters Reinsurance, Inc. Executive Retirement Savings Plan, as set forth in this document and as amended from time to time.

 

2.21        Plan Year

 

Plan Year means the calendar year, the twelve-month period beginning each January 1 and ending on December 31.

 

2.22        Qualified Plan

 

Qualified Plan means the Platinum Underwriters Reinsurance, Inc. Retirement Savings Plan.

 

  

- 4 -

  

 

2.23        Retirement Date

 

Retirement Date means the date upon which the Participant attains age 65.

 

2.24        Separation from Service

 

Separation from Service in general means a termination of an employee’s employment with his or her employer by reason of the employee’s death, retirement or otherwise.  However, for purposes of the Plan, an employee’s employment relationship is treated as continuing intact while the individual is on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed six months, or if longer, so long as the individual retains a right to reemployment with the employer under an applicable statute or by contract.  For these purposes, a leave of absence constitutes a bona fide leave of absence only if there is a reasonable expectation that the employee will return to perform services for the employer.  If the period of leave exceeds six months and the individual does not retain a right to reemployment under an applicable statute or by contract, the employment relationship is deemed to terminate on the first date immediately following such six-month period.  Notwithstanding the foregoing, where a leave of absence is due to 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 six months, where such impairment causes the employee to be unable to perform the duties of his or her position of employment or any substantially similar position of employment, a 29-month period of absence may be substituted for such six-month period.

 

Whether a termination of employment has occurred is determined based on whether the facts and circumstances indicate that the employer and employee reasonably anticipated that no further services would be performed after a certain date or that the level of bona fide services the employee would perform after such date (whether as an employee or as an independent contractor) would permanently decrease to no more than 20 percent 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 employee has been providing services to the employer less than 36 months).  Facts and circumstances to be considered in making this determination include, but are not limited to, whether the employee continues to be treated as an employee for other purposes (such as continuation of salary and participation in employee benefit programs), whether similarly situated employees have been treated consistently, and whether the employee is permitted, and realistically available, to perform services for other employers in the same line of business.  An employee is presumed to have separated from service where the level of bona fide services performed decreases to a level equal to 20 percent or less of the average level of services performed by the employee during the immediately preceding 36-month period.  An employee will be presumed not to have separated from service where the level of bona fide services performed continues at a level that is 50 percent or more of the average level of service performed by the employee during the immediately preceding 36-month period. No presumption applies to a decrease in the level of bona fide services performed to a level that is more than 20 percent and less than 50 percent of the average level of bona fide services performed during the immediately preceding 36-month period.  The presumption is rebuttable by demonstrating that the employer and the employee reasonably anticipated that as of a certain date the level of bona fide services would be reduced permanently to a level less than or equal to 20 percent of the average level of bona fide services provided during the immediately preceding 36-month period or full period of services provided to the employer if the employee has been providing services to the employer for a period of less than 36 months (or that the level of bona fide services would not be so reduced).  For example, an employee may demonstrate that the employer and employee reasonably anticipated that the employee would cease providing services, but that, after the original cessation of services, business circumstances such as termination of the employee’s replacement caused the employee to return to employment.  Although the employee’s return to employment may cause the employee to be presumed to have continued in employment because the employee is providing services at a rate equal to the rate at which the employee was providing services before the termination of employment, the facts and circumstances in this case would demonstrate that at the time the employee originally ceased to provide services, the employee and the employer reasonably anticipated that the employee would not provide services in the future.

 

The definition of Separation from Service as set forth above shall be interpreted in a manner consistent with the applicable definition as set out in the Code Section 409A Regulations, including any modifications or amendments to such regulations.

 

2.25        Specified Employee

 

Specified Employee means an Eligible Employee who, as of the date of his or her Separation from Service, is a “key employee” of an employer, any stock of which is publicly traded on an established securities market or otherwise, as determined under the Code Section 409A Regulations.  For these purposes, an Eligible Employee is a “key employee” if he or she meets the requirements of Code Section 416(i)(1)(A)(i), (ii), or (iii) (applied in accordance with the Treasury Regulations thereunder and disregarding section 416(i)(5)) at any time during the 12-month period ending on a “specified employee identification date” (as hereinafter defined). If an Eligible Employee is a “key employee” as of a “specified employee identification date,” the Eligible Employee is treated as a “key employee” for purposes of this definition for the entire 12-month period beginning on the “specified employee effective date.”  Special rules for identifying Eligible Employees who are to be treated as Specified Employees are set out below.

 

For purposes of identifying a Specified Employee by applying the requirements of Code Section 416(i)(1)(A)(i), (ii), and (iii), the definition of compensation under Treasury Regulation Section 1.415(c)-2(a) is used, applied as if the Eligible Employee were not using any safe harbor provided in Treasury Regulation Section 1.415(c)-2(d), were not using any of the special timing rules provided in Treasury Regulation Section 1.415(c)-2(e), and were not using any of the special rules provided in Treasury Regulation Section 1.415(c)-2(g).  Notwithstanding the foregoing, the Sponsor of the Plan may elect to use any available definition of compensation under Code Section 415 and the Treasury Regulations thereunder in accordance with the election requirements set forth in Treasury Regulation Section 1.409A-1(i)(8), including any available safe harbor and any available election under the timing rules or special rules, provided that the definition is applied consistently to all employees of the Sponsor of the Plan for purposes of identifying Specified Employees.  The Sponsor of the Plan may elect to use such an alternative definition regardless of whether another definition of compensation is being used for purposes of a qualified plan sponsored by it.  However, once a list of Specified Employees has become effective, the Sponsor of the Plan cannot change the definition of compensation for purposes of identifying Specified Employees for the period with respect to which such list is effective.

 

  

- 5 -

  

 

“Specified employee identification date.”  Unless another date is designated in accordance with the requirements set forth in this paragraph and Treasury Regulation Section 1.409A-1 (i)(8), the “specified employee identification date” is December 31.  The Sponsor of the Plan may designate in accordance with the requirements of Treasury Regulation Section 1.409A-1(i)(8) any other date as the “specified employee identification date,” provided that the Sponsor of the Plan must use the same “specified employee identification date” with respect to all nonqualified deferred compensation plans, and any change to the “specified employee identification date” may not be effective for a period of at least 12 months.  The Sponsor of the Plan may designate a “specified employee identification date” in a separate document applicable to all its nonqualified deferred compensation plans, provided that the employer will not be treated as having designated a specified employee identification date before the designation is legally binding on the Sponsor of the Plan and all affected Eligible Employees. Any designation of a “specified employee identification date” made on or before December 31, 2007, may be applied to any separation from service occurring on or after January 1, 2005, unless and until subsequently changed pursuant to this paragraph.  If no election is made in this regard, the “specified employee identification date” will be December 31.

 

“Specified employee effective date.” Unless another date is designated in accordance with the requirements of this paragraph and Treasury Regulation Section 1.409A-1(i)(8), the “specified employee effective date” is the first day of the fourth month following the “specified employee identification date.”  The Sponsor of the Plan may designate in accordance with the requirements of Treasury Regulation Section 1.409A-1(i)(8) any date following the “specified employee identification date” as the “specified employee effective date,” provided that such date may not be later than the first day of the fourth month following the “specified employee identification date,” and provided further that the Sponsor of the Plan must use the same “specified employee effective date” with respect to all nonqualified deferred compensation plans, and any change to the “specified employee effective date” may not be effective for a period of at least 12 months.  The Sponsor of the Plan may designate a “specified employee effective date” using a separate document applicable to all plans, provided that the Sponsor of the Plan will not be treated as having designated a “specified employee effective date” on any date before the designation is legally binding on the Sponsor of the Plan and all affected Eligible Employees.  Any designation of a “specified employee effective date” made on or before December 31, 2007, may be applied to any Separation from Service occurring on or after January 1, 2005, unless and until subsequently changed pursuant to this paragraph.

 

The Sponsor of the Plan may adopt, in accordance with the requirements of Treasury Regulation Section 1.409A-1(i)(8), an alternative method to identify those Eligible Employee who will be subject to the six-month delay rule provided in Code Section 409A(a)(2)(B)(i), provided that the alternative method is reasonably designed to include all Specified Employees (determined without respect to any available elections), the alternative method is an objectively determinable standard providing no direct or indirect election to any employee regarding its application, and the alternative method results in either all employees or no more than 200 employees being identified in the class as of any date.  Use of such an alternative method will not be treated as a change in the time and form of payment for purposes of §1.409A-2(b) (the subsequent deferral rules), even if the employee is not a Specified Employee when the payment is delayed.

 

If as a result of a corporate transaction, two or more employers, more than one of which has stock outstanding that is publicly traded on an established securities market or otherwise immediately before the transaction, become one entity, any stock of which is publicly traded on an established securities market or otherwise immediately after the transaction (resulting public company), the resulting public company’s next “specified employee identification date” and “specified employee effective date” following the corporate transaction are the “specified employee identification date” and “specified employee effective date” that the acquiring employer would have been required to use absent such transaction.  For this purpose, in the case of a corporate merger, the acquiring employer is the employer that included the surviving corporation in such merger, in the case of an acquisition by a corporation of the stock of another corporation, the acquiring employer is the employer that included the corporation that acquired such stock, and in all other cases, the surviving company is determined on the basis of all of the facts and circumstances.  For the period between the transaction and the next “specified employee effective date,” the list of Specified Employees of the resulting public company is determined by combining the lists of Specified Employees of all employers participating in the transaction that were in effect at the date of the corporate transaction, ranking such Specified Employees in order of the amount of compensation used to determine each Specified Employee’s status as a Specified Employee, and treating the top 50 of such Specified Employees, plus any employees described in Code Section 416(i)(1)(ii) or 416(i)(1)(iii) and the Treasury Regulations thereunder (relating to 1-percent and 5-percent owners) who are not included in such top 50 Specified Employees, as Specified Employees for the period between the corporate transaction and the next “specified employee effective date.”  Alternatively, the resulting public company may elect in accordance with the requirements of Treasury Regulation Section 1.409A-1(i)(8) to use any reasonable method to determine the Specified Employees of the resulting public company, including the use of an alternative method of compliance described above, provided that such method is adopted no later than 90 days after the corporate transaction and applied prospectively from the date the method is adopted.

 

If as part of a corporate transaction an employer that does not have outstanding stock that is publicly traded on an established securities market or otherwise immediately before the transaction (initial private company), and an employer with stock outstanding that is publicly traded on an established securities market or otherwise immediately before the transaction (initial public company), become a single employer having stock that is publicly traded on an established securities market or otherwise immediately after the transaction (resulting public company), the resulting public company’s next “specified employee identification date” and “specified employee effective date” following the corporate transaction are the “specified employee identification date” and “specified employee effective date” that the initial public company would have been required to use absent such transaction.  For the period after the date of the corporate transaction and before the next “specified employee effective date,” the Specified Employees of the initial public company immediately before the transaction continue to be the Specified Employees of the resulting public company, and no Eligible Employees of the initial private company are required to be treated as Specified Employees.

 

If as part of a corporate transaction, an employer with stock outstanding that is publicly traded on an established securities market or otherwise immediately before the transaction (initial public company), becomes two or more separate companies, each with stock outstanding that is publicly traded on an established securities market or otherwise immediately after the transaction (post-transaction public companies), the next “specified employee identification date” of each of the post-transaction public companies is the specified employee identification date that the initial public company would have been required to use absent such transaction.  For the period after the date of the corporate transaction and before the next “specified employee effective date,” the Specified Employees of the initial public company immediately before the transaction continue to be the Specified Employees of the post-transaction public companies.

 

  

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If as part of an initial public offering or corporate transaction not described above, an employer with no outstanding stock that is publicly traded on an established securities market or otherwise immediately before such offering or other transaction (initial private employer), becomes one or more employers with stock outstanding that is publicly traded on an established securities market or otherwise immediately after such offering or other transaction (post-transaction public company), each post transaction public company has a “specified employee identification date” of December 31 and a “specified employee effective date” of April 1, effective retroactively to the December 31 and April 1 next preceding the offering or other transaction for purposes of identifying the Specified Employees between the corporate transaction and the next December 31. Alternatively, a post-transaction public company may elect in accordance with the requirements of Treasury Regulation Section 1.409A-1(i)(8), a “specified employee identification date” and “specified employee effective date” on or before the date of the offering or other transaction.  If a public company makes such an election, for the period after the offering or other transaction and before the next “specified employee effective date,” the Specified Employees of the post-transaction public company consist of the Eligible Employees that at the time of the offering or other transaction would have been classified as Specified Employees of the initial private company, had the initial private company elected the same “specified employee identification date” and “specified employee effective date” as selected by the post-transaction public company, and had such initial private company had stock publicly traded on an established securities market or otherwise as of the “specified employee identification date” preceding the transaction.

 

For purposes of the rules regarding corporate transactions, references to Specified Employees as of a corporate transaction or offering include any Specified Employees identified through the use of an alternative method described above, where the use of such alternative method was established and effective at the time of the corporate transaction or offering.

 

For purposes of determining whether an employee meets the requirements of Code Section 416(i)(1)(A)(i), (ii), or (iii) (applied in accordance with the Treasury Regulations thereunder and disregarding section 416(i)(5)), and therefore is a key employee, the incorporation of the rules of Treasury Regulation Section 1.415(c)-2(g)(5) regarding the definition of compensation applies.  Accordingly, the rule of Treasury Regulation Section 1.415(c)-2(g)(5)(i), generally requiring the treatment as compensation of certain compensation excludible from an employee’s gross income due to the location of the services or the identity of the employer, applies.  In addition, a Sponsor of the Plan may elect in accordance with Treasury Regulation Section 1.409A-1(i)(8) to apply the rule of Treasury Regulation Section 1.415(c)-2(g)(5)(ii) to not treat as compensation certain compensation excludible from an employee’s gross income on account of the location of the services or the identity of the employer that is not effectively connected with the conduct of a trade or business within the United States.  An employer may elect to apply the rule of Treasury Regulation Section 1.415-2(g)(5)(ii) regardless of whether the employer has elected to apply the rule to a qualified plan Sponsored by the employer; however, once a list of Specified Employees has become effective, any election of the rule for that period may not be changed.

 

The elections described above are effective only as of the date that all necessary corporate action has been taken to make such elections binding for purposes of all affected nonqualified deferred compensation plans in which the employees of the employer that would become a Specified Employee due to the application of such election participate.  Where a taxpayer attempts to make such an election but such election is not binding on all the affected nonqualified deferred compensation plans and applied consistently to all such employees, the election is not effective and the rule regarding “specified employee identification date” and “specified employee effective date” that would apply absent an election is applicable for identifying Specified Employees.

 

The above definition of Specified Employee and the additional rules regarding how Specified Employees may be identified are intended to comply with the Code Section 409A Regulations and are deemed modified to the extent necessary to comply with the Code Section 409A Regulations, including any modifications that may be made to those regulations.  If the Sponsor of the Plan makes no special elections regarding the identification of Specified Employees, the general rule that treats all Eligible Employees who are “key employees” of the Sponsor of the Plan pursuant to Code Section 416(i)(1)(A)(i), (ii), or (iii) (applied in accordance with the Treasury Regulations thereunder and disregarding Code Section 416(i)(5)) shall apply without modification.

 

2.26        Sponsor

 

Sponsor means Platinum Underwriters Reinsurance, Inc.

 

2.27        Valuation Date

 

Valuation Date means each day the New York Stock Exchange is open for trading.

 

2.28        Written or “in Writing”

 

Written or in Writing means, with respect to any documentation of an election or other action by a Participant or by the Committee, that such documentation be either in paper or, as permitted by the Committee, in electronic form; provided, however, that such documentation must be adequate to establish a right that is enforceable under applicable law.

 

2.29        Years of Service

 

Years of Service means with respect to any Participant or inactive Participant, the number of whole years of his or her periods of service, as determined based on the elapsed time method, with the Employer or any related employers.  A Participant or inactive Participant will receive credit for the aggregate of all time periods commencing with his or her employment commencement date.  A Participant will also receive credit for any period of severance of less than 12 consecutive months.

 

  

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ARTICLE III ELIGIBILITY AND PARTICIPATION

 

3.1           Eligibility to Participate

 

Any Eligible Employee eligible to participate in the Plan on December 31, 2010 is eligible to participate in the Plan on January 1, 2011, provided such employee continues to be an Eligible Employee on or after January 1, 2011.  Employees satisfying the eligibility requirements after the Effective Date shall enter the Plan immediately following becoming members of the eligible class.

 

3.2          Change in Status as Eligible Employee

 

The Committee shall have complete discretion to exclude one or more individuals from Participant status for one or more Plan Years as the Committee deems appropriate.

 

3.3          Cessation of Participation

 

A Participant shall cease active participation in the Plan upon the occurrence of his or her Separation from Service, death or Disability.

 

  

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ARTICLE IV EMPLOYER CREDITS

 

4.1           Establishment of Participant Accounts

 

The Company shall establish and maintain on its books and records an Account with several subaccounts in the name of each Participant to record:

 

	
(a)  

	
amounts of Matching Contribution Credits on the Participant’s behalf pursuant to Section 4.2 of the Plan;

 

	
(b)  

	
amounts of Discretionary Employer Credits on the Participant’s behalf pursuant to Section 4.3 of the Plan

 

	
(c)  

	
credits or debits for investment earnings or losses pursuant to Section 4.5 of the Plan; and

 

	
(d)  

	
payments of benefits to the Participant or the Participant’s beneficiary pursuant to  Article VI of the Plan.

 

4.2           Matching Contribution Credits

 

For each Participant who has made Qualified Plan deferrals of the maximum permitted under Code section 402(g), or the maximum permitted under the Qualified Plan, the Company shall credit the Matching Contribution Account with credits in an amount equal to (a) minus (b) below:

 

	
(a)  

	
The matching contributions that the Participant would have received under the Qualified Plan on the sum of the Participant’s Qualified Plan deferrals, determined as though no limits otherwise imposed by the tax law applied to such Qualified Plan match.

 

	
(b)  

	
The Qualified Plan match actually made to such participant under the Qualified Plan for the applicable Plan Year.

 

In no event will the Matching Contribution Credit exceed 4% of the Participant’s Compensation in excess of the limit imposed under Code Section 401(a)(17) unless otherwise approved by the Company.

 

The Company shall credit the Matching Contribution Credits to the Participant’s Matching Contribution Account as soon as administratively practical following the applicable calendar quarter.

 

4.3           Discretionary Employer Contributions

 

The Company may determine, in its sole discretion, from time to time, an applicable Discretionary Employer Credit to be applied to the Discretionary Employer Accounts of select Participants.  The Committee shall determine the time and manner for crediting the Discretionary Employer Credits to the Participant’s Discretionary Employer Account.

 

4.4           Employee Deferral Elections

 

Employee deferrals of Compensation are not permitted under the terms of the Plan.

 

4.5           Credits for Investment Earnings and Debits for Investment Losses

 

	
(a)  

	All amounts credited to a Participant’s Account shall be credited with amounts of investment earnings or debited with amounts of investment losses that correspond to the total investment return earned by the Investment Fund or combination of Investment Funds designated in advance by the Participant for these purposes.

 

	
(b)  

	
The designation of one or more Investment Funds by a Participant under this Section 4.5 of the Plan shall be used solely to measure the amounts of investment earnings or losses that will be credited or debited to the Participant’s Account on the Company’s books and records, and the Company shall not be required under the Plan to establish any account in the Investment Funds or to purchase any Investment Fund shares on the Participant’s behalf.

 

	
(c)  

	
The designation by a Participant of any Investment Funds under this Section 4.5 of the Plan shall be made in accordance with rules and procedures established by the Committee.

 

  

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(d)  

	
The Investment Funds are valued each day the New York Stock Exchange is open for trading.

 

	
(e)  

	
A Participant may elect to revise the investment options with respect to existing Account allocations or future contributions at any time (subject to any Investment Fund limitation) by notification to the Committee in the prescribed manner. The Committee, however, retains the right to review and restrict transfer rights at any time.

 

	
(f)  

	
If a Participant fails to make a proper designation, then his or her Accounts shall be deemed to be invested in the Investment Fund(s) designated by the Committee from time to time for this purpose at the Committee’s discretion.  Such investment option can be changed by the Committee from time to time at the Committee’s discretion.

 

  

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ARTICLE V VESTING

 

5.1          Vesting of Matching Contribution Account

 

A Participant shall be vested in the amounts credited to his or her Matching Contribution Account as set forth below:

 

	
Vesting Percentage

	
Years of Service

	
0%

	
0

	
0%

	
1

	
100%

	
2

 

5.2          Vesting of Discretionary Employer Account

 

A Participant shall be vested in the amounts credited to his or her Discretionary Employer Account as set forth below:

 

	
Vesting Percentage

	
Years of Service

	
0%

	
0

	
0%

	
1

	
100%

	
2

 

5.3          Accelerated Vesting

 

Regardless of the Participant’s Years of Service, a Participant’s interest in his or her Accounts becomes fully (100%) vested upon his or her Retirement Date, date of death, if his or her Separation from Service has not previously occurred, upon the Committee’s determination that he or she is unable to continue to perform his or her regular duties on account of Disability, or upon a Change in Control.

 

5.4          Forfeiture of Non-vested Accounts

 

Once payments are to commence to a Participant, the portion of such Account not yet vested, if any, will be forfeited by the Participant.

 

  

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ARTICLE VI PAYMENT OF BENEFITS

 

6.1           Distributions of Benefits

 

In general, a Participant shall receive payment of benefits in the form and manner as described in this Article VI.

 

 

6.2           Time and Form of Distributions

 

A Participant’s distribution of benefits shall always be made in the form of a lump sum payment as soon as practicable following the first to occur of the Participant’s Separation from Service or a Change in Control, except to the extent a delayed distribution is required pursuant to Section 6.3, below.

 

6.3           Distributions to Specified Employees.

 

Notwithstanding the foregoing, in the event that, as of the date a distribution is to be made on account of a Participant’s Separation from Service, as determined under the Code Section 409A Regulations, any distribution due hereunder to such Participant on account of his or her Separation from Service shall, if such Participant is determined to be a Specified Employee, not commence until after the six (6) month anniversary of such Participant’s Separation from Service.  Notwithstanding the foregoing, in the event a distribution is delayed by reason of this Section 6.3 and the affected Participant’s death occurs prior to commencement of such distribution, such distribution shall be made as soon as practicable following such Participant’s death.

 

6.4           Permitted Acceleration of Payment

 

Notwithstanding the timing provisions pursuant to Article VI of the Plan, the time of a payment shall be accelerated in the following circumstances (but only to the extent permitted under the Code Section 409A Regulations):

 

	
(a)  

	
Payment shall be made to the extent necessary to comply with a domestic relations order (as defined in Code Section 414(p)(1)(B)) that meets the requirements of the Company’s domestic relations order procedures applicable to non-qualified plans, if such payment is made to an individual other than the Participant.

 

	
(b)  

	
Payment shall be made to the extent necessary to comply with an ethics agreement with the Federal government or to the extent reasonably necessary to avoid the violation of an applicable federal, state, local, or foreign ethics law or conflicts of interest law (including where such payment is reasonably necessary to permit the Participant to participate in activities in the normal course of his or her position in which the Participant would otherwise not be able to participate under an applicable rule).

 

	
(c)  

	
Payment of a Participant’s entire Account may be made in the form of a lump sum payment of amounts deferred under the Plan that do not exceed a specified amount, provided any action by the Company causing such lump sum payment to be made to a Participant is evidenced in Written form and executed by an authorized officer of the Company no later than the date such lump sum payment is made, and provided that that such lump sum payment results in the termination and liquidation of the entirety of the Participant’s Account under the Plan, and his or her deferred compensation benefits under all other agreements, methods, programs, or other arrangements with respect to which deferrals of compensation are treated as having been deferred under a single nonqualified deferred compensation plan under Section 1.409A-1(c)(2) of the Code Section 409A Regulations; and provided further that the total payment to the Participant (under the Plan and all other arrangements treated as a single nonqualified deferred compensation plan) is not in excess of the applicable dollar amount under Code Section 402(g)(1)(B).

 

	
(d)  

	
Payment is permitted to the extent necessary to satisfy any applicable federal, state and local income tax withholding and federal payroll withholding requirements pursuant to provisions of Code Section 409A and the regulations thereunder, related to benefits provided in the Plan.

 

	
(e)  

	
Payment of a Participant’s entire Account shall be made in the event of the failure of the Plan (or failure of any other plan required to be aggregated with the Plan pursuant to regulations published under Code Section 409A) to meet the requirements of Code Section 409A.

 

6.5           Payment For Unforeseeable Emergency

 

A Participant who incurs an unforeseeable emergency may apply to the Committee for an immediate distribution from his or her vested Account in an amount necessary to satisfy such financial hardship and the tax liability attributable to such distribution, subject to the rules set forth below.

 

	
(a)  

	
An unforeseeable emergency will be deemed to have occurred if the Participant undergoes a severe financial hardship resulting from an illness or accident of the Participant or his or her spouse, the Participant’s beneficiary, or his or her dependent (as defined in Code Section 152, without regard to Code Sections 152(b)(1), (b)(2), and (d)(1)(B)); 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 other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the employee.   In addition, the need to pay for the funeral expenses of a spouse, a beneficiary, or a dependent may also constitute an unforeseeable emergency.

 

	
(b)  

	
A distribution on account of unforeseeable emergency may not be made to a Participant to the extent that such emergency is or may be relieved through reimbursement or compensation from insurance or otherwise, by liquidation of the Participant’s assets, to the extent the liquidation of such assets would not cause severe financial hardship, or by cessation of deferrals under the plan, if applicable.

 

  

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(c)  

	
Distributions because of an unforeseeable emergency must be limited to the amount reasonably necessary to satisfy the emergency need (which may include amounts necessary to pay any federal, state, local, or foreign income taxes or penalties reasonably anticipated to result from the distribution).  Determinations of amounts reasonably necessary to satisfy the emergency need must take into account any additional compensation that is available by reason of the cancellation of the Participant’s deferral election, if applicable, upon a payment due to an unforeseeable emergency, which cancellation shall be implemented to the extent permitted or required under the Code Section 409A Regulations, and to the extent required under the Plan.

 

6.6           Payment of Disability Benefits

 

If a Participant incurs a Disability, the entire value of his or her Account shall be distributed to the Participant in the form of a single lump sum.  Any distribution pursuant to this Section 6.6 will occur following the determination of the Disability as approved by the Committee.

 

6.7           Payment of Death Benefits

 

	
  

	
(a)   

	
Each Participant shall designate a beneficiary on the proper beneficiary form as prescribed by the Committee to receive his or her Accounts in the event of death. If a Participant dies with a balance credited to his or her Accounts, such balance shall be paid to the applicable beneficiary or beneficiaries in a single lump sum.

 

	
  

	
(b)   

	
Any distributions pursuant to this Section 6.7 will occur following the date of death and receipt by the Company of acceptable proof of the Participant’s death and approval by the Committee.

 

	
  

	
(c)   

	
Notwithstanding the above, if no beneficiary designation is on file with the Company at the time of death of the Participant or such designation is not effective for any reason then the designated beneficiary to receive such benefits shall be as follows:

 

	
(1)  

	
the Participant’s surviving spouse; or

 

	
(2)  

	
if there is no surviving spouse, then to the Participant’s estate.

 

If a beneficiary dies before the Account is distributed, the Account shall be paid to the beneficiary’s estate.

 

All decisions made by the Committee in good faith and based upon affidavit or other evidence satisfactory to the Committee regarding questions of fact in the determination of the identity of such beneficiary(ies) shall be conclusive and binding upon all parties, and payment made in accordance therewith shall satisfy all liability hereunder.

 

6.8           In-service Withdrawals and Distributions

 

Except as provided in Section 6.5, in-service withdrawals and distributions of any kind shall not be permitted.

 

6.9           Change of Control

 

Following a Change of Control of the Company, the entire value of his or her Account shall be distributed to the Participant in the form of a single lump sum.  Any distribution pursuant to this Section 6.9 will occur following the determination of a Change of Control as approved by the Committee.  For purposes of this paragraph, a Change of Control shall be deemed to have occurred if, and only if, it is determined as of the relevant date that a “change in ownership or effective control” of the Company has occurred for purposes of Code Section 409A (taking into account applicable provisions of the Code Section 409A Regulations, as such may be modified from time to time, and taking into account also any other guidance as may be issued by the IRS or the Treasury regarding this definition).

 

6.10        Valuation of Distributions

 

The benefit amount of a Participant’s Account to be distributed pursuant to this Article VI shall be based on the value of such Account on any Valuation Date after instructions are received in good order by the Committee.

 

6.11         Timing of Distributions

 

Any distribution made in accordance with an event in this Article VI shall be made as soon as administratively feasible following the event, but no later than 90 days following the date the benefit is payable under this Article VI and no earlier than the 15th day of the month following the event that gives rise to the distribution.

 

  

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ARTICLE VII  AMENDMENT AND TERMINATION OF PLAN

 

7.1           Amendments Generally

 

The Sponsor reserves the right to amend the Plan at any time. No amendment, however, may reduce the amount credited to Accounts at the time of the amendment’s adoption, except as may otherwise be required by law.  Without limiting the generality of the foregoing, the Committee may amend the Plan to impose such restrictions upon the timing, filing and effectiveness of Deferral Elections, if applicable, the investment procedures and investment alternatives available under the Plan and the distribution provisions of Article VI which the Committee deems appropriate or advisable in order to avoid the current income taxation of amounts deferred under the Plan which might otherwise occur as a result of changes to the tax laws and regulations governing deferred compensation arrangements such as the Plan and may also, in such event, cease further deferrals under the Plan.

 

7.2           Right to Terminate

 

The Sponsor may terminate the Plan at any time in whole or in part.

 

	
(a)  

	
Except for such modifications, limitations or restrictions as may otherwise be required to avoid current income taxation or other adverse tax consequences as a result of changes to the tax laws and regulations applicable to the Plan, no such plan amendment or plan termination authorized by the Committee shall adversely affect the benefits accrued to date under the Plan or otherwise reduce the then outstanding balances credited to Accounts or otherwise adversely affect the distribution provisions in effect for those Accounts, and all amounts deferred prior to the date of any such plan amendment or termination shall, subject to the foregoing exception, continue to become due and payable in accordance with the distribution provisions of Article VI as in effect immediately prior to such amendment or termination.  Termination of the Plan shall not serve to reduce the amount credited to an Account at the time of termination.

 

	
(b)  

	
Notwithstanding the above, the Sponsor may terminate the Plan and distribute the Participant’s credited Accounts in the form of a single lump sum. Such a Plan termination may occur only if the conditions set forth below are met, consistent with the requirements of Code Section 409A and the Code Section 409A Regulations:

 

	
(i)  

	
The termination and liquidation does not occur proximate to a downturn in the financial health of the Company;

 

	
(ii)  

	
The Company terminates and liquidates all agreements, methods, programs, and other arrangements sponsored by the Company that would be aggregated with the Plan under applicable provisions of the Code Section 409A Regulations assuming a Participant in the Plan also had deferrals credited under all such other agreements, methods, programs;

 

	
(iii)  

	
No payments in liquidation of the plan are made within 12 months of the date the Sponsor takes all necessary action to irrevocably terminate and liquidate the Plan (other than amounts distributed under the terms of the Plan without regard to the action to terminate and liquidate the Plan);

 

	
(iv)  

	
All payments in liquidation of the Plan are made within 24 months of the date the Sponsor takes all necessary action to irrevocably terminate and liquidate the Plan; and

 

	
(v)  

	
The Sponsor does not adopt a new plan that would be aggregated with the Plan under applicable provisions of the Code Section 409A Regulations if assuming a Participant participated in both plans, at any time within three years following the date the Sponsor takes all necessary action to irrevocably terminate and liquidate the Plan.

 

  

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ARTICLE VIII MISCELLANEOUS

 

8.1           Unfunded Plan

 

This Plan is an unfunded deferred compensation arrangement for Eligible Employees. While it is the intention of the Company that this Plan shall be unfunded for federal tax purposes and for purposes of Title I of ERISA, the Company may establish a grantor trust to satisfy part or all of its Plan payment obligations so long as the Plan remains unfunded for federal tax purposes and for purposes of Title I of ERISA. Nothing contained in the Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any employee or other person. To the extent any person acquires a right to receive a payment from the Company under the Plan, such right shall be no greater than that of an unsecured general creditor of the Company.

 

8.2           Nonguarantee of Employment

 

Nothing contained in the Plan shall be construed as a contract of employment between the Company and any Participant, or as a right of any Participant to be continued in the employment of the Company, or as a limitation of the right of the Company to discharge any Participant with or without cause.

 

8.3           Nonalienation of Benefits

 

	
(a)  

	
Except as provided in Section 6.4 or as may be required by law, benefits payable under the Plan are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution, or levy of any kind, whether voluntary or involuntary. Any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge or otherwise dispose of any right to benefits under the Plan shall be void. The Company shall not in any manner be liable for, or subject to, the debts, contracts, liabilities, engagements or torts of any person entitled to benefits under the Plan.

 

	
(b)  

	
Notwithstanding Section 8.3(a) of the Plan, if a Participant is indebted to the Company at any time when payments are to be made by the Company to the Participant under the provisions of the Plan, the Company shall have the right to reduce the amount of payment to be made to the Participant (or the Participant’s beneficiary) to the extent of such indebtedness. Any election by the Company not to reduce such payment shall not constitute a waiver of its claim for such indebtedness.

 

8.4           Taxes and Withholding

 

For each Plan Year in which the Participant defers a portion of Compensation under this Plan, the Company or its delegate will withhold from the Participant’s non-deferred Compensation the Participant’s share of FICA and other employment taxes.

 

8.5           Applicable Law

 

To the extent not preempted by federal law, this Plan shall be construed and enforced in accordance with the laws of the state of New York.

 

8.6           Headings and Subheadings

 

Headings and subheadings in this Plan are inserted for convenience only and are not to be considered in the construction of the provisions.

 

8.7           Severability

 

The invalidity and unenforceability of any particular provision of this plan shall not affect any other provision and the Plan shall be construed in all respects as if such invalid or unenforceable provisions were omitted.

 

8.8           Expenses

 

In addition to the expenses and costs that may be charged against Participants’ Accounts pursuant to other provisions of the Plan, each Participant’s Account shall also be charged with its allocable share of all other costs and expenses incurred in the operation and administration of the Plan, except to the extent the Company elects in its sole discretion to pay all or a portion of those costs and expenses.

 

  

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8.9           Facility of Payment

 

In the event the Committee determines, on the basis of medical reports or other evidence satisfactory to the Committee, that the recipient of any benefit payments under the Plan is incapable of handling his affairs by reason of minority, illness, infirmity or other incapacity, the Sponsor may disburse such payments, or direct the trustee to disburse such payments, as applicable, to a person or institution designated by a court which has jurisdiction over such recipient or a person or institution otherwise having the legal authority under State law for the care and control of such recipient.  The receipt by such person or institution of any such payments shall be complete acquittance therefore, and any such payment to the extent thereof, shall discharge the liability of the trust for the payment of benefits hereunder to such recipient.

 

8.10         USERRA

 

Notwithstanding anything herein to the contrary, the Committee shall permit any Participant election and make any payments hereunder required by the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended, 38 USC 4301-4334.

 

  

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ARTICLE IX ADMINISTRATION OF THE PLAN

 

9.1           Powers and Duties of the Committee

 

The Board of Directors, or its designee, shall appoint members of the Committee. The Committee will be responsible for the administration of the Plan. The Committee shall have full responsibility to represent the Company and the Participants in all things it may deem necessary for the proper administration of the Plan. Subject to the terms of the Plan, the decision of the Committee upon any question of fact, interpretation, definition or procedures relating to the administration of the Plan shall be conclusive. The responsibilities of the Committee shall include, but not be limited to, the following:

 

	
(a)  

	
Verifying all procedures by which payments to Participants and their beneficiaries are authorized.

 

	
(b)  

	
Deciding all questions relating to the eligibility of employees to become Participants in the Plan.

 

	
(c)  

	
Interpreting the provisions of the Plan in all particulars.

 

	
(d)  

	
Establishing and publishing rules and regulations for carrying out the Plan.

 

	
(e)  

	
Preparing an individual record for each Participant in the Plan, which shall be available for examination by such Participant, or authorized persons.

 

	
(f)  

	
Reviewing and answering any denied claim for benefits that has been appealed to the Committee under the provisions of this Article.

 

The Committee may delegate any or all of its responsibilities under the Plan to such individual(s) or entities selected by the Committee in its sole discretion.

 

9.2           Claims Procedure

 

	
  

	
(a)   

	
Filing of Claim. Any Participant or beneficiary under the Plan may file a written claim for a Plan benefit with the Committee or with a person named by the Committee to receive claims under the Plan.

 

	
  

	
(b)   

	
Notice of Denial of Claim. In the event of a denial or limitation of any benefit or payment due to or requested by any Participant or beneficiary under the Plan (“claimant”), the claimant shall be given a written notification, including electronic communication, containing specific reasons for the denial or limitation of the benefit. The written notification shall contain specific reference to the pertinent Plan provisions on which the denial or limitation of the benefit is based. In addition, it shall contain a description of any other material or information necessary for the claimant to perfect a claim, and an explanation of why such material or information is necessary. The notification shall further provide appropriate information as to the steps to be taken if the claimant wishes to appeal the denial or limitation of benefit and submit a claim for review. This written notification shall be given to a claimant within 90 days after receipt of the claim by the Committee or 180 days if special circumstances require an extension of time for process of the claim. If such an extension of time for processing is required, written notice of the extension shall be furnished to the claimant prior to the termination of said 90-day period, and such notice shall indicate the special circumstances which make the postponement appropriate.

 

	
  

	
If the claim concerns disability benefits under the Plan, the Committee shall notify the claimant in writing within 45 days after the claim was filed in order to deny it. If special circumstances require an extension of time to process the claim, the Committee shall notify the claimant before the end of the 45-day period that the claim may take up to 30 days longer to process. If special circumstances still prevent the resolution of the claim, the Committee may then only take up to another 30 days after giving the claimant notice before the end of the original 30-day extension. If the Committee gives the claimant notice that the claimant needs to provide additional information regarding the claim, the claimant must do so within 45 days of that notice.

 

	
  

	
(c)   

	
Right of Review. In the event of a denial or limitation of the claimant’s benefit, the claimant or the claimant’s duly authorized representative shall be permitted to review pertinent documents free of charge upon request and to submit to the Committee issues and comments in writing. In addition, the claimant or the claimant’s duly authorized representative may make a written request for a full and fair review of the claim and its denial by the Committee; provided, however, that such written request must be received by the Committee within 60 days after receipt by the claimant of written notification of the denial or limitation of the claim. The 60-day requirement may be waived by the Committee in appropriate cases.

 

	
  

	
(d)   

	
Decision on Review. A decision shall be rendered by the Committee within 60 days after the receipt of the request for review, provided that where special circumstances require an extension of time for processing the decision, it may be postponed on written notice to the claimant (prior to the expiration of the initial 60-day period) for an additional 60 days, but in no event shall the decision be rendered more than 120 days after the receipt of such request for review. Any decision by the Committee shall be furnished to the claimant in writing and shall set forth the specific reasons for the decision and the specific plan provisions on which the decision is based.

 

  

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If the initial claim was for Disability benefits under the Plan and the claim has been denied by the Committee, the claimant will have 180 days from the date the claimant received notice of the claim’s denial in which to appeal that decision. The review will be handled completely independently of the findings and decision made regarding the initial claim and will be processed by an individual who is not a subordinate of the individual who denied the initial claim. If the claim requires medical judgment, the individual handling the appeal will consult with a medical professional whom was not consulted regarding the initial claim and who is not a subordinate of anyone consulted regarding the initial claim and identify that medical professional to the claimant.   The Committee shall provide the claimant with written notification of a plan’s benefit determination on review. In the case of an adverse benefit determination, the notification shall set forth, in a manner calculated to be understood by the claimant, the specific reason or reasons for the adverse determinations, reference to the specific plan provisions on which the benefit determination is based, a statement that the claimant is entitled to receive, upon the claimant’s request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claim for benefits.

 

 

EXECUTION OF DOCUMENT

 

	Attest: 	 	 	Platinum Underwriters Reinsurance, Inc.	 
	 	 	 	 	 
	 	 	 	 	 
	
/s/ Robert DeProspo

	 	 	
By: /s/ James M. Conway

	 
	
VICE PRESIDENT

	 	 	
Senior Vice President

	 
	
 

	 	 	

Date:  February 4, 2011

	 

 

  

- 18 -

  

 

Addendum I

 

Any participant in the Plan who is employed by Platinum Underwriters Holdings, Ltd. or Platinum Underwriters Bermuda, Ltd. and is a taxpayer in the United States of America (“U.S. Taxpayer”) shall not be eligible to participate in the Plan, and shall not be a participant in this Plan for any periods after December 31, 2008.

 

Furthermore, in accordance with IRC Section 457A, all amounts of deferred compensation under this Plan payable to a U.S. Taxpayer described above shall be includible in gross income by such U.S. Taxpayer no later than the last taxable year beginning before 2018.   Accounts shall be disbursed in the time and manner as directed by the Committee.

 

 

- 19 -exhibit10_14.htm

 

Exhibit 10.14

 

PLAN DOCUMENTS

 

FOR

Platinum Underwriters Holdings Ltd.

 

(INTERNATIONAL PLAN)

 

  

  

  

 

TRUST DEED

 

  

- 1 -

  

 

THIS DEED is made this 26 day of April 2007

 

	
BETWEEN:

	
PLATINUM UNDERWRITERS HOLDINGS LTD. of "The Belvedere Building", 69 Pitts Bay Road, Hamilton HMOS, Bermuda hereinafter referred to as the "Employer",

	
AND:

	
COLONIAL PRIVATE TRUSTEE LIMITED a company incorporated in and under the laws of the islands of Bermuda and having its registered office at Jardine House 33-35 Reid Street, Hamilton HM 12 Bermuda (the "Trustee").

	
AND

	
COLONIAL PENSION SERVICES LIMITED a company incorporated in and under the laws of the islands of Bermuda and having its registered office at Jardine House 33-35 Reid Street, Hamilton HM 12 Bermuda (the "Administrator").

 

WHEREAS:

 

	
1.

	
The Employer has established the Platinum Underwriters Holdings Ltd. International Pension Plan on the terms herein set forth or as such terms may be amended from time to time (the "Plan") for the purpose of providing pension benefits to each person who is or may be entitled to a benefit or a refund of the contributions held for the account of such person under the Plan as a result of the person's employment.

	  	  
	
2.

	
The Employer has appointed the Trustee to administer the Plan.

	  	  
	
3.

	
Having determined that it is reasonable and in the interests of the Members so to do, the Trustee has employed the Administrator to carry out any and all acts required to be done in the administration of the Plan.

	  	  
	
4.

	
The Employer has duly authorised the execution of this Deed.

	  	  
	
5.

	
The Employer wishes the Trustee to hold the moneys and other assets contributed as aforesaid and the Trustee agrees to hold the same pursuant to the terms of this Deed.

  

- 2 -

  

NOW THIS DEED WITNESSES as follows:

 

ARTICLE I

 

Interpretation

 

	
1.1

	
Definitions

 

For the purpose of the Plan, the following words and phrases shall be used with an initial capital letter and shall have the following meaning unless the context clearly indicates otherwise.

 

"Account" shall mean for a Member's Account or Employer's Account and shall include accounts attributable to Mandatory, Voluntary and Rollover Contributions, as the case may be.

 

"Annuity" shall mean any post -retirement instrument purchased from a financial institution and/or insurance company whereby the retired Member receives a guaranteed lifetime income in exchange for his accumulated Pension benefit under the Plan.

 

"Appropriate Form" shall mean the form provided or prescribed by the Administrator.

 

"Auditors" shall mean such firm of chartered accountants appointed by the Trustee.

 

"Beneficiary" shall mean, the person or persons last designated by a Member as set forth in 12.11 of the Plan Rules to receive the interest of such Member after his death.

 

"Business Day" shall mean a day on which banks are open in Bermuda.

 

"Contribution Date" shall mean the date on which Members and Employer's Contributions are received by the Trustee, pursuant to Section 3.2 of the Plan Rules.

 

"Contributions" shall mean payments made by the Employer and/or the Member as set forth in the 3.1 -3.4 of the Plan Rules.

 

"Early Retirement Date" the date which the Member selects for the start of his retirement benefit which shall be on or after the date he has attained the age of 55 but before his Normal Retirement Date.

"Earnings" means the following payments expressed in monetary terms and paid (directly or indirectly) to the Member by the Employer up to a maximum of $200,000 per year:

 

	
(i)

	
any wages, salary or leave pay;

	
(ii)

	
any fee or commission;

	
(iii)

	
any bonus, including payments from a profit-sharing scheme, which exceeds ten per cent of the employee's basic salary or wage from the period in question;

but does not include overtime payments in respect of hours worked in excess of 35 hours in any week, severance payments, retirement or long-service recognition payments or health insurance premiums.

 

"Effective Date" shall mean the date selected by the Administrator on which the Plan becomes effective.

 

"Employer" shall mean the Employer party hereto but shall be deemed to include any employer associated with the Employer who adopts the Plan pursuant to Section XIV of the Plan Rules.

 

"Employer's Account" means the account established in the books of the Trustee in the name of the Employer in respect of a Member to record such Member's interest in the Trust Fund accruing from the Employer's Mandatory Contributions and Voluntary Contributions.

 

"Employer's Mandatory Contributions" shall mean Contributions made by the Employer in respect of a Member pursuant to Section 3.10 of the Plan Rules.

 

"Employer's Voluntary Contributions" shall mean Contributions made by the Employer in respect of a Member pursuant to Section 3.1 I of the Plan Rules.

 

"Investment Manager" shall mean any investment manager appointed by the Trustee pursuant to Section 8.2 of this Deed.

 

  

- 3 -

  

 

"Member" in relation to the Plan means an employee, officer or director of the Employer who is not a Bermudian or spouse of a Bermudian and has applied to the Employer to join the Plan and has been authorised in writing by the Employer to join the Plan.

 

"Member's Account" shall mean the account established in the books of the Trustee in the name of a Member to record his interest in the Trust Fund accruing pursuant to the Plan and in which the Trustee records such Member's Rollover Contributions, Mandatory Contributions and Voluntary Contributions.

 

"Member's Mandatory Contributions" shall mean regular payroll deductions, pursuant to

3.9 ofthe Plan Rules.

 

"Member's Voluntary Contributions" shall mean additional or voluntary payments made by a Member, pursuant to 3.11 of the Plan Rules.

 

"Membership Date" shall mean the date a Member first enters the Plan.

 

"Month" shall mean a full calendar month.

 

"Normal Retirement Date" in respect of a Member means a date selected by the Member which shall occur not later than one year after such Member has attained 65 years of age.

 

"Pension" means the periodic payment due to a person in accordance with the Plan Rules, and shall be in the form of an Annuity or such other similar financial instrument as may be approved by Employer and Trustee.

 

"Pension benefit" the Pension benefit to which each Member shall be entitled at retirement shall be the value of the vested Units and/or cash allocated to his Employer's and Member's accounts as at the Valuation Day immediately following receipt by the Administrator of written notification of termination of the Member's service from the Employer.

 

"Plan" means the pension plan as defined in paragraph I of the Recitals, above.

 

"Plan Rules" shall mean the rules adopted by the Trustee and Administrator in respect of the Plan and any amendments that may be made by the Trustee and Administrator from time to time.

 

"Plan Year" shall be the period of twelve calendar months from February I st in each year.

"Rollover Contributions" shall mean a contribution by a Member as the result of a distribution from another pension plan, pursuant to 3.12 of the Plan Rules.

 

"Trust Fund " shall mean property which any person or persons may donate to or give or cause to be vested in the Trustee for the account of a Member or an Employer, to be held upon the trust and with and subject to the powers and provisions hereof including all accumulation of income and accretions to capital thereto.

 

"Unit" shall mean a portion of the series investment fund held by the Trustee for the benefit of the Members ,in exchange for their Contributions.

 

"Valuation Day" shall mean the date on which the Trustee shall determine the value of the assets of the Trust Fund for purposes of determining the value of each Account.

 

	
1.2

	
Unless the context otherwise requires words and phrases not expressly defined in this Deed, they shall have the same meaning as provided in the Plan Rules.

 

	
1.3

	
The masculine gender includes the feminine gender and the singular includes the plural unless the context clearly indicates otherwise.

 

ARTICLE II

 

Appointment of Trustee

 

	
2.1

	
Appointment

 

The Employer hereby appoints the Trustee to be and the Trustee shall act as Trustee of the Plan for the term and subject to the provisions hereof.

 

  

- 4 -

  

 

	
2.2

	
Duties of Trustee

 

The Trustee shall:

 

	
  

	
(a)

	
ensure that the Plan and the Trust Fund are administered in accordance with these Trust Deed and Plan Rules or any amendments thereto; and

 

	
  

	
(b)

	
review the financial operation of the Plan regularly during the continuation of the Plan.

 

ARTICLE III

 

Delegation to Administrator

 

	
3.1

	
Power to Sub Delegate

 

The Trustee shall have full power to delegate or to subcontract any administrative functions it deems necessary to perform its obligations under this Deed, including, without limitation, the investment of the Trust Fund, the valuation of Accounts and the administration of the Plan. The authorities herein contained are continuing ones and shall remain in full force and effect until revoked by termination of this Deed as hereinafter provided, but such revocation shall not affect any liability in any way resulting from transactions initiated prior to such revocation.

 

ARTICLE IV

 

The Trust Fund

 

	
4.1

	
Creation of the Trust Fund

 

The Trust Fund consisting of such sums of money and such property acceptable to the Trustee as shall from time to time be paid or delivered to the Trustee by the Employer and the earnings and profits thereon shall be held by the Trustee in trust and shall be dealt with in accordance with the provisions of this Deed. At no time shall any part of the Trust Fund be used for or diverted to purposes other than pursuant to the terms of this Pension Plan. The title to all assets of the Trust Fund shall be vested in and remain exclusively vested in the Trustee.

 

	
4.2

	
Purpose of the Trust Fund

 

The Trust Fund is created, established and maintained and the Trustee agrees to receive, hold and administer the Trust Fund for the exclusive purpose of providing benefits for the Members in accordance with the provisions of the Pension Plan.

 

ARTICLE V

 

Acceptance of Trust and Establishment of the Plan

 

	
5.1

	
Acceptance of Trust

 

The Trustee hereby accepts the Trust herein set out and agrees to hold, invest, distribute and administer the Trust Fund in accordance with the provisions of this Deed.

 

	
5.2

	
Establishment of the Plan

 

The Trustee hereby adopts and agrees to maintain the Plan in accordance with the provision of Plan Rules as detailed in Schedule I hereto.

 

ARTICLE VI

 

Powers and Duties of the Trustee

 

	
6.1

	
It shall be the duties of the Trustee to hold, invest, and reinvest the principal and income of the Trust Fund in any of the investments hereafter authorised and keep the Trust Fund invested without distinction between principal and income.

 

  

- 5 -

  

 

	
6.2

	
In addition and without prejudice to such other powers as set forth herein, the Trustee shall have the power and authority to:

 

	
  

	
(a)

	
purchase or subscribe for any securities, stocks, bonds, policies of insurance, annuity contracts or other property and to retain the same in trust;

 

	
  

	
(b)

	
sell, convert, redeem, convey, transfer, exchange, for other securities or property or otherwise dispose of any securities or other property at any time forming part of the Trust Fund or the whole thereof, upon such terms as it may deem proper and to effect and deliver any and all instruments of conveyance and transfer in connection therewith;

 

	
  

	
(c)

	
keep the investments of the Trust Fund in its own name or in the name of nominees of the Trustee and to keep the same wholly or partly in the principal office of the Administrator or otherwise, held by or to the order of the Trustee as it may think proper but the books and records of the Trustee shall at all times show that all investments are part of the Trust Fund;

 

	
  

	
(d)

	
exercise personally or by proxy or power of attorney all voting and other rights in respect of stocks, bonds or other investments or property held in the Trust Fund except where such voting and other rights are given to the Investment Manager(s);

 

	
  

	
(e)

	
execute all documents of transfer and conveyance and all other instruments that may be necessary or appropriate to carry out the powers herein granted;

 

	
  

	
(f)

	
borrow or raise money from any source permitted by law for the purposes hereof in such amounts and upon such terms and conditions as the Trustee shall deem appropriate, and for any such amounts so borrowed to issue its promissory note as Trustee and to secure payment by pledging all or any part of the Trust Fund;

 

	
  

	
(g)

	
keep such portion of the Trust Fund in cash or cash balances as the Trustee may from time to time deem to be in the best interest of the Trust Fund;

 

	
  

	
(h)

	
if necessary for the execution of its duties and not provided or paid for by the Employer upon reasonable notice, to employ such agents, lawyers, accountants and other persons and to payout of the Trust Fund their reasonable expenses and compensations and the Trustee may rely and act on information and advice furnished by such persons or refrain from acting thereon;

 

	
  

	
(i)

	
adjust contest or submit to arbitration any claims, debts or debentures due or owing to or from the Trust Fund and to sue, commence or defend any legal proceeding related thereto, and

 

	
  

	
(j)

	
do all acts, take all proceeding and to exercise all rights and privileges although not specifically mentioned herein as the Trustee deems necessary to administer the Trust Fund, with the general effect that the Trustee carries out its duties and responsibilities under the Trust Deed and exercises all powers as it were the beneficial owner of the Trust Fund.

 

ARTICLE VII

 

Administration of the Trust Fund

 

	
7.1

	
The administration of the Trust Fund shall be carried out by the Trustee who has appointed the Administrator to perform such administration.

 

	
7.2

	
The Administrator shall assume whatever duties and responsibilities may be delegated to it by the Trustee and shall be required to make periodic reports of its operations in respect of the Plan to the Trustee, and to receive periodic instructions from the Trustee as to the actions to be taken or policy to be followed.

 

	
7.3

	
The Trustee shall, either directly or through the actions of the Administrator, consistent with the purpose of the Plan, have the power and authority to:

 

	
  

	
(a)

	
require the immediate payment of Contributions from the Employer and the Member to the Trust Fund and reports from the Employer in accordance with the Plan. The Trustee shall have the power to demand, collect, receive and hold Contributions, and may take such steps including the institution and prosecution of or the intervention in any proceeding at law or in any bankruptcy, as may be necessary or desirable to accomplish the collection of such Contributions. The Contributions and the reports to the Trustee shall be remitted by the date specified in the Plan.

 

	
  

	
(b)

	
determine all questions of eligibility, membership status and all related matters;

 

	
  

	
(c)

	
decide all questions or controversies arising in any manner or between any parties in connection with the Trust Fund or the operation thereof, whether as to any claim for benefits by a Member or any other person, or as to the construction of the language or meaning of this Trust Fund or the Plan Rules or any regulations adopted by the Trustee under either of them, or as any writing, decision, instrument, or accounts in connection with the operation of the Trust Fund or otherwise. The decision of the Trustee shall be binding upon all persons dealing with the Trust Fund or claiming benefits thereunder.

 

  

- 6 -

  

 

ARTICLE VIII

 

Investment of the Trust Fund's Assets

 

	
8.1

	
Pursuant to the provisions of the Trust Deed, the Trustee shall hold, invest and reinvest the principal and income of the Trust Fund in any of the investments hereafter authorised and keep the Trust Fund invested without distinction between principal and income.

 

	
8.2

	
The Trustee may delegate from time to time the management of the Trust Fund's assets to one or more Investment Managers.

 

	
8.3

	
In making any investment for the Trust Fund, the Trustee may invest and reinvest in any currency and in any part of the world, in bonds, debentures, certificates of deposits, common or preferred stocks, shares of mutual funds, units of unit trusts, financial institutions or funds maintained by the Trustee or any affiliate or parent of the Trustee, as it shall in its absolute discretion think fit, and the Trustee may with like discretion dispose or vary any such investments. The Trustee shall forthwith determine and publish guidelines at least once in each year and shall publish details of any amendments thereto.

 

ARTICLE IX

 

Statements of Accounts

 

	
9.1

	
The Administrator and the Trustee shall:

 

	
  

	
(a)

	
keep at their principal office, accurate and detailed accounts of all Contributions paid to the Trustee in respect of the Plan and of all Annuities paid by or at the request of the Employer pursuant to the Plan and in particular shall maintain separate Member and Employer Accounts in respect of each Member.

 

	
  

	
(b)

	
hold the said accounts and all records relating thereto open to inspection at all reasonable time by the Employer or any Member. Such records shall be audited by the Auditors selected by the Trustee at least annually and at such other times as the Trustee shall deem advisable.

	
9.2

	
As at the end of each Plan Year, the Trustee shall cause accounts to be made up in respect of the Plan Year then ending. Such accounts shall be audited and shall include a schedule of such Investments and shall contain a report by the Auditors and shall be approved and signed by the Trustee, and the Trustee shall cause a copy thereof to be sent to the Employer.

 

	
9.3

	
Within one hundred and eighty (180) days following the close of each financial year of the Plan, or within one hundred and eighty (180) days after the removal or resignation of the Trustee as provided for in Article XVII hereof, the Trustee shall file with the Employer a statement setting forth all investment holdings and other assets of the Plan, all investments receipts and disbursements, and other transactions effected by them, during such financial year or during the period from the close of the last financial year to the date of such removal or resignation.

 

	
9.4

	
Upon the expiry of ninety (90) days from the date of filing the statement described in the preceding Clause, the Trustee shall be released and discharged from all liability and accountability to anyone with respect to their acts and transactions during the period covered by the statement, except with respect to any such acts or transactions as to which the Employer shall within such ninety-day period file with the Administrator, written objections and except for loss to or diminution of the Trust Fund resulting from negligence, willful conduct or lack of good faith of the Administrator.

 

	
9.5

	
The accounting policies used in the preparation of the above mentioned accounts shall be determined by the Trustee on the advice of the Administrator, provided that the value of the Investments comprised in the Trust Fund shall be determined by the Trustee in consultation with any Investment Manager appointed in respect of such Investments.

 

ARTICLE X

 

Payment out of the Trust Fund

 

	
10.1

	
The Administrator shall from time to time on the written directions of the Employer, make payments out of the Trust Fund whether in respect of Annuities payable to or for the account of a Member or by way of transfer payments to another pension plan or otherwise, to such person in such manner, in such amounts as may be specified in such directions. Upon such payment being made the amount thereof shall no longer constitute part of the Trust Fund.

 

	
10.2

	
In directing such payments, the Employer shall have regards to the Plan Rules and in the event of any difference arising as to the interpretation of this Deed, or as to the right of a Member as described in the Plan Rules or any person deriving title from the Member, the Administrator's determination thereof shall be conclusive.

 

ARTICLE XI

 

Employer's Liability

 

	
11.1

	
The Employer's liability for Contributions to the Trust Fund shall be limited to the payment of the amount due to the Trust Fund under the Plan.

 

  

- 7 -

  

 

	
11.2

	
The Employer shall not be liable for the failure of the Trustee and Administrator to secure the benefits contemplated in the Plan for any Member or for any default or neglect of the Trustee or the Administrator.

 

	
11.3

	
Except as required under the Plan or this Deed, the Employer shall not be responsible for any decision, act or omission of the Trustee, Administrator, or Investment Manager and shall not be responsible for the application of any moneys, securities, investments or other property paid or delivered to the Trustee.

 

ARTICLE XII

 

Trustee and Administrator Liability

 

	
12.1

	
The Trustee and Administrator shall not be liable for:

 

	
  

	
(a)

	
any loss to or diminution of the Trust Fund arising out of the making retention or sale of any investment or reinvestment except on account of the negligence, willful misconduct or lack of good faith of, respectively, the Trustee, Administrator, or of any person to whom they have delegated any of their powers and discretion hereunder; .

 

	
  

	
(b)

	
acting upon instructions given by the Investment Manager(s) or failing to act in absence of such instructions in connection with investment of assets of the Trust Fund;

 

	
  

	
(c)

	
the proper application of any part of the Trust Fund if payments are made in accordance with the written directions of the Employer as herein provided, nor shall the Trustee and Administrator be responsible for the adequacy of the Trust Fund to meet and discharge any and all payments and liabilities under the Plan.

ARTICLE XIII

 

Execution of Instruments

 

	
13.1

	
All instruments in writing required to be executed by the Trustee shall be executed by the signature of any two authorised signatories as the Trustee may from time to time named in a resolution of directors of the Trustee; and all persons may rely upon such instrument as having been duly authorised. All cheques, and other instruments in respect of the transfer of moneys or the operation of bank accounts shall be signed by any two authorised signatories named as aforesaid.

 

ARTICLE XIV

 

Limitation of Rights to the Trust Fund

 

	
14.1

	
No Employer, Member or any other person, association, firm or corporation shall have the right, title, interest in or to the assets of the Trust Fund except as specifically provided herein or by the Plan Rules.

 

	
14.2

	
No part of the Trust Fund shall be invested or lent to or for the benefit of the Trustee, the Administrator or to the agents or associates of the Trustee, the Administrator or the Sub-Administrator.

 

	
14.3

	
No part of the Trust Fund shall be used for or diverted to purposes other than the establishment of and payment of benefits for Members and former Members and their Beneficiaries or for the purposes set out in 2.2 hereof or the purchase of investments permitted under the provisions of the Plan Rules.

 

	
14.4

	
All Contributions received by the Trustee and Administrator, and all other funds received by the Trustee as part of the Trust Fund shall be deposited in such banks as the Trustee may designate for that purpose, and withdrawal of such funds shall be made pursuant to authorisations provided for in 10.1 hereof. All accounts with such banks shall be opened in the name of the Trustee.

 

ARTICLE XV

 

Claims by Beneficiaries

 

	
15.1

	
No person entitled under the Plan shall have any claims against the Trustee and Administrator or the Trust Fund except by or through the Employer, and the Trustee or Administrator, shall not be liable to any such person provided that they have acted in good faith or any direction or resolution furnished to them by the Employer as provided herein.

 

  

- 8 -

  

 

ARTICLE XVI

 

Expenses and Compensation

 

	
16.1

	
The Administrator and the Trustee shall be paid all reasonable costs and expenses incurred in the performance of their duties and such reasonable compensation as it may from time to time agree with the Trustee (and in the absence of such agreement then in accordance with their published fee schedule) and the same shall constitute a charge against the Trust Fund unless paid by the Employer. All fees of any and all kind whatsoever that may be levied upon or in respect of the Trust Fund shall also constitute a charge upon the Trust Fund unless paid by the Employer.

 

ARTICLE XVII

 

Resignation or Removal of the Trustee

 

	
17.1

	
The Trustee may resign at any time by giving ninety (90) days notice in writing to the Employer.

 

	
17.2

	
The Employer may remove the Trustee at any time upon ninety (90) days notice in writing to the Trustee.

 

ARTICLE XVIII

 

Successor Trustee

 

	
18.1

	
Upon such resignation or removal, the Employer may appoint a successor who shall have the same powers and duties as those conferred upon the Trustee hereunder.

 

	
18.2

	
In the event of the Trustee's resignation, the Trustee shall make all reasonable endeavours to ensure the appointment of a successor trustee within the notice period.

 

	
18.3

	
Upon such resignation or removal of the Trustee, and acceptance of such appointment by the successor trustee, the Trustee shall assign, transfer or otherwise pay and transfer to the successor trustee the moneys, investments and other property then constituting the Trust Fund less compensation of the Trustee and Administrator and any proper charges against the Trust Fund; and turn over any and all records, books and documents incidental to the its duties as Trustee under this Deed or relating to the administration of the Trust Fund.

 

ARTICLE XIX

 

Amendment of the Trust Deed and Plan Rules

 

	
19.1

	
The Employer may at any time and from time to time amend in whole or in part any or all of the provisions of this Deed and any or all of the Plan Rules attached hereto by notice in writing delivered to the Trustee, provided that any such amendments which affect the rights, duties or responsibilities of the Trustee may not be made without its consent, and provided that no such amendments shall authorise or permit at any time any part of the Trust Fund to be used for or diverted to purposes other than those specified in this Plan.

 

ARTICLE XX

 

Termination of the Plan

 

	
20.1

	
The Plan shall terminate upon the earlier of:

 

	
  

	
(a)

	
the date upon which the Employer goes into liquidation whether voluntary or compulsory otherwise than for the purpose of reconstruction or amalgamation; or

 

	
  

	
(b)

	
the date upon which the Employer by written instrument delivered to the Trustee terminates this Deed; or

 

	
  

	
(c)

	
the termination of the Trustee pursuant to Section 18.1 hereof without a new Trustee being appointed.

 

  

- 9 -

  

 

	
20.2

	
Upon retirement of a Member from the employ of the Employer, all sums then credited to the Member's Employer's and Member's Accounts shall be applied as follows:

 

	
  

	
(a)

	
transfer to another pension plan; or

 

	
  

	
(b)

	
purchase a fully paid Pension, commencing at Normal Retirement Date.

 

	
20.3

	
Upon termination of the Plan, all sums then credited to each Member's and Employer's Accounts shall be applied to transfer to another pension plan approved by the Administrator for the benefit of the Members.

 

ARTICLE XXI

 

Transfers to and from the Trust Fund

 

	
21.1

	
The Trustee may accept a transfer to the Trust Fund of all or any of the assets of any pension/retirement benefits fund, plan, or arrangement (hereinafter called the "Other Fund") on terms that the Member(s) in respect of whom the transfer is made shall be entitled in lieu of benefits under the Other Fund to benefits under the Plan.

 

	
21.2

	
The Trustee upon the request of the Employer, on behalf of a Member, and as provided in this section shall transfer to the trustee or administrator of another fund, retirement plan or arrangement (the "Other Plan") providing pension benefits, all the assets of the Trust Fund standing to the credit of the Account of that Member on terms that the Member shall be entitled in lieu of benefits under the Plan to such benefits under the Other Plan as may be agreed between the Trustee and the trustee or administrator of the Other Plan to observe such restrictions before making any transfer.

 

	
21.3

	
The Trustee shall be entitled to deduct from the amount transferred as aforesaid a sum to reasonably compensate the Trust Fund for the actual or anticipated expenses and losses incurred in effecting such transfer.

 

	
21.4

	
Once a transfer is made under 21.2, subject to any special terms or conditions, there shall cease to be any entitlement under the Plan to benefits of a Member or any Beneficiary represented by the transfer.

 

ARTICLE XXII

 

Miscellaneous

 

	
22.1

	
The Employer shall promptly furnish to the Administrator on demand all necessary employment records concerning the names, amount of salaries paid, and other payroll records and information that the Administrator may reasonably require in connection with the administration of the Trust Fund.

 

	
22.2

	
The Administrator and the Trustee may, in their discretion, employ legal counsel upon any legal question arising out of the Trust Fund or the administration of the Plan, and any action taken by them upon the advice of counsel shall be regarded as prudent and they shall be held completely harmless and fully protected in acting and relying upon the advice of such counsel.

 

	
22.3

	
The Administrator and the Trustee may seek judicial protection by any action or proceeding they may deem necessary to settle its accounts, or to obtain a judicial determination or declaratory judgment as to any question of construction of this Trust Fund or as to any action thereunder. Any such determination shall be binding upon all parties to or claiming thereunder.

 

	
22.4

	
Wherever in this Deed the word "Employer" is used, it shall be deemed to mean and shall include any associated employer with which the Employer may amalgamate or with which it may be reconstructed, whether under its present name or any other name, or to which its undertaking and business for the time being may be sold or otherwise transferred.

 

	
22.5

	
This Deed shall be administered, construed and enforced according to the laws of Bermuda.

 

  

- 10 -

  

 

IN WITNESS WHEREOF the parties have caused their Common Seals to be hereunto affixed the day and year first above mentioned.

 

The Common Seal of

PLATINUM UNDERWRITERS HOLDINGS LTD.

/s/ Illegible              

in the presence of:

 

The Common Seal of

COLONIAL PRIVATE TRUSTEE LIMITED

 

/s/ Illegible              

in the presence of:

 

The Common Seal of

COLONIAL PENSION SERVICES LIMITED

/s/ Illegible              

in the presence of:

 

  

- 11 -

  

 

 

Plan Rules

 

  

- 12 -

  

 

TABLE OF CONTENTS

 

	  
	  	  	
Page

	
Section I

	
Definitions

	  
	
Section II

	
Eligibility for Membership in the Plan

	  
	
Section III

	
Contributions

	  
	
Section IV

	
Vesting of Member and Employer Contributions

	  
	
Section V

	
Accounts

	  
	
Section VI

	
Termination of Employment

	  
	
Section VII

	
Regulations Governing the Payment of Pension Benefits

	  
	
Section VIII

	
Lapsed Benefits

	  
	
Section IX

	
Forfeiture of Lapsed Benefits

	  
	
Section X

	
Administration of the Plan

	  
	
Section XI

	
Investment of the Trust Fund's Assets

	  
	
Section XII

	
General Provisions

	  
	
Section XIII

	
Discontinuance of the Plan

	  
	
Section XIV

	
Adoption of the Plan by Affiliated Companies

	  
	  	  

 

  

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SECTION I

 

Definitions

 

	
1.1

	
For the purpose of the Pension Plan, unless there is something in the subject matter or context inconsistent therewith, the expressions defined in the Trust Deed have the same meaning herein.

 

SECTION II

 

Eligibility for Membership in the Pension Plan

 

	
2.1

	
Every employee, officer or director of the Employer who is not a Bermudian or spouse of a Bermudian and has applied to the Employer to join the Plan, and has been authorised in writing by the Employer to join the Plan shall become a Member.

 

	
2.2

	
Any Employee who becomes eligible to participate shall complete the enrollment form as supplied by the. Trustee. Membership in the Plan shall commence as of the first Business Day in the calendar month coincident with, or next following the first day of his employment, provided that the enrollment form is completed and returned to the Administrator.

 

	
2.3

	
The Employee in completing the enrollment form specified in 2.2, shall authorise the deduction of his Contributions from his Earnings, agree to the terms of the Plan, and designate a Beneficiary to receive benefits arising under the Plan. The Beneficiary may be a designated person or persons, provided that, if more than one person is named, the Employee must indicate the percentage of benefit payable to each person. A member may change his Beneficiary from time to time on an Appropriate Form.

 

	
2.4

	
It shall be the duty of the Employer to notify the Administrator of the employment of any new employee. Upon such notification, the Administrator will arrange for the enrollment, and to have the enrollment form completed and signed by both the Employer and the new Employee. Such enrollment form must be filed with the Trustee within one month after the day the Employee becomes eligible to participate.

 

	
2.5

	
It is the duty of the Employer to submit the enrollment form to the Administrator. Neither the Trustee or the Administrator shall have any responsibility in respect of any period of time prior to the submission of a duly completed enrollment form by the Employer.

 

	
2.6

	
If a Member ceases to be an eligible Employee by reason of suspension without pay, or is no longer regularly employed, but continues in the employment of the Employer, his participation in the Plan shall be suspended until the resumption of his status as an Eligible Employee, but shall not be terminated so long as he remains in the employ of the Employer. During the period of his suspension, the Member may not make any Contributions under the Plan nor shall he be entitled to any Employer Contributions, but his Accounts shall continue to be re-valued. Notwithstanding the above, a Member may elect to make contributions, however he will not be entitled to any Employer Contributions.

 

SECTION III

 

Contributions

 

	
3.1

	
The Employer shall make Contributions to the Trust Fund, both for itself and on behalf of the Members of the Plan, in such sums on or before such dates and under such terms as provided for by the Plan.

 

	
3.2

	
All Contributions and such contribution data as the Trustee shall require, shall be forwarded by the Employer to the Administrator on or before the 26th day of each month, which if not a business day, the preceding business day.

 

	
3.3

	
All Contributions shall be deposited in such accounts with such banks or depository company as shall be designated and prescribed by the Trustee.

 

	
3.4

	
The Employer agrees that its absolute obligation to make Contributions to the Trust Fund shall not be subject to set-off or counterclaim which it may have for any liability of a Member.

 

	
3.5

	
When the Employer is in default for a period of thirty (30) Business Days in the payment of Contributions to the Trust Fund, the Administrator shall notify the Trustee, and the Trustee shall direct the Employer to pay the arrears within two (2) weeks failing which it may take any action necessary to enforce payment of contributions.

 

	
3.6

	
In the event that the Trustee shall reasonably suspect that there has been a failure by the Employer to pay Contributions properly payable to the Trust Fund, the Employer shall permit an auditor appointed by the Trustee to enter upon its premises and to examine all books and records relevant to the question of the amount of Contributions payable by the Employer. Where such audit discloses an intentional failure to pay such Contributions, the Employer shall promptly pay such amount as assessed by the Trustee as being reasonably necessary (including the cost of obtaining such audit), to protect the interest in the Trust Fund of the Members of the Plan and to ensure that they are not prejudiced in any way by the Employer's failure.

 

  

- 14 -

  

 

	
3.7

	
All Contributions made under the Plan and investments made and property of any kind or character acquired with any such funds or otherwise contributed, and all income, profits, and proceeds derived therefrom, shall be held in the Trust Fund and shall be held and administered by the Administrator, in accordance with the provisions of the Plan Rules and the Trust Deed.

 

	
3.8

	
The Employer shall have no right or title to, nor interest in the Contributions made to the Trust Fund, and no part of the Trust Fund shall revert to the Employer except that in the case of the Employer Contribution which is made by a mistake of fact. At the Employer's written request, such Contributions may be returned to the Employer within 3 months of the end of the fiscal year in which the mistake was made.

 

	
3.9

	
Member Mandatory Contributions

 

Each Member shall contribute to the Plan commencing as of Membership Date, 5% of his earnings by way of payroll deductions for each payroll period.

 

	
3.10

	
Employer Mandatory Contributions

 

The Employer shall contribute to the Plan commencing as of Membership Date, by way of payroll deductions for each payroll period, an amount equal to the Member's Mandatory Contributions made during such period by each of his Employees who is a Member of the Plan.

 

	
3.11

	
Member and Employer Voluntary Contributions

 

	
  

	
(a)

	
Each Member and Employer, if he should so elect, may contribute Voluntary Contributions to the Plan. Such contributions could be made as a single lump sum payment or by way of regular payroll deductions.

 

	
  

	
(b)

	
A Member or Employer may suspend, increase or decrease the amount of Voluntary Contributions he wishes to contribute by informing the Member or Employer, as appropriate, in writing.

 

	
  

	
(c)

	
A Member may withdraw all or any part of his Voluntary Contributions once a year, by giving notice in writing to the Trustee and the Administrator. The requested withdrawal amount will be paid to the Member within 6 (six) to 8 (eight) weeks of written notice having been received by the Administrator.

 

	
3.12

	
Rollover Contributions

 

Contributions resulting from a Member's distribution from another pension plan shall be treated as Rollover Contributions. Such contributions will be held in the Employee Rollover Account for such period of time, if any as the provisions of such other plan may require; and during such period of time the Member may not withdraw any part of such Rollover Contributions unless such other plan so permits; but after such period of time, if any, has expired, such portion of the Rollover Contributions as can be attributed to Voluntary Contributions shall be deemed to become Employee Voluntary Contributions.

 

	
3.13

	
Contributions applicable to a given payroll period will normally be deducted from the Earnings applicable to such period. Exceptions may be made in individual cases for administrative convenience, to enable deductions of Contributions from Earnings applicable to earlier or later periods.

 

	
3.14

	
Employees and Employer Contributions under the Plan shall be made in the currency of the United States of America.

 

	
3.15

	
Contributions after Normal Retirement Date

 

Neither the Member nor the Employer shall be obliged to pay Contributions after the Member reaches Normal Retirement Age. However the Employer and the Member may elect to continue paying such Contributions up to the date when the Member actually retires.

 

	
3.16

	
Except as provided in 3.11 (c) above, a Member shall not withdraw all or any part of his Member's, Employer's and Rollover Accounts while he is a Member of the Plan.

 

	
3.17

	
The Employer shall not withdraw or borrow any part of any Member's or Employer's Accounts.

 

SECTION IV

 

Vesting of Member and Employer Contributions 21

 

	
4.1

	
A Member shall be vested at all times to the amounts allocated to his Member's Account, but will only have access to his Pension benefit upon termination of employment

 

  

- 15 -

  

 

	
4.2

	
A Member's interest in his Employer Account shall vest in accordance with the following schedule:

 

	
Years of Membership

	
Vested Percentage

	
Less than 2

	
2 0%

	
2 years or more

	
100%

Notwithstanding the above,

 

	
  

	
(a)

	
A Member shall become fully vested in his or her Employer Account upon the occurrence of any of the following events, if such Member is then still an Employee:

 

	
  

	
(i)

	
Death

 

	
  

	
(ii)

	
Total and Permanent Disability; or

 

	
  

	
(iii)

	
Termination of the Plan

 

	
  

	
(b)

	
The Employer may at any time or times reduce the vesting period in respect of any Member by giving written notice of such reduction to the Trustee and Administrator.

 

SECTION V

 

Accounts

 

	
5.1

	
The Administrator shall maintain a separate Employer Account for each Member, which shall reflect the portion of his interest in the Trust Fund that is attributable to the Employer's Mandatory Contributions on his behalf.

 

	
5.2

	
The Administrator shall maintain a separate Member's Account for each Member that shall reflect the portion of his interest in the Trust Fund that is attributable to his Member's Mandatory Contributions.

 

	
5.3

	
The Administrator shall maintain separate Member's and Employer's Voluntary Accounts for each Member, which shall reflect the portion of his interest in the Trust Fund that is attributable' to each of his Member's and Employer's Voluntary Contributions.

 

	
5.4

	
The Administrator shall maintain a separate Rollover Account for each Member, which shall reflect the portion of his interest in the Trust Fund that is attributable to his distribution from another pension plan.

 

	
5.5

	
Each Account as described in 5.1 to 5,4 shall consist of Units and or cash held on behalf of each Member.

 

	
5.6

	
All Member's, Employer's, and Rollover Contributions shall be credited on a current basis to each Member's Employer's, Member's and Rollover Accounts.

 

	
5.7

	
The Employer, the Trustee, and the Administrator do not in any manner or to any extent whatsoever warrant, and guarantee that the value of a Member's Account shall at any time equal or exceed the amount previously contributed thereto.

 

SECTION VI

 

Termination of Employment

 

	
6.1

	
Subject to Section 3.11 (c), no withdrawals may be made in favour of a Member from his Member's, Employer's or Rollover Accounts while employed.

 

	
6.2

	
If a Member's employment is terminated due to death, the total value of the units and or cash allocated to his Member's, Employer's and Rollover Accounts shall be payable to his Beneficiary as soon as practicable.

 

	
6.3

	
If a Member's employment is terminated due to retirement, or total and permanent disability, the total value of the Units and or cash allocated to his Member's Employer's and Rollover Accounts as of the next Valuation Day shall be payable to him in accordance with the provisions of 7.3.

 

  

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6.4

	
If a Member's employment is terminated for reasons other than retirement, or total and permanent disability, he may:

 

	
  

	
(a)

	
transfer his Pension benefit to another plan or to a deferred profit sharing plan; or

 

	
  

	
(b)

	
elect to receive his Pension Benefit at any time within the 10 (ten) year-period prior to his Normal Retirement Date; or

 

	
  

	
(c)

	
elect to receive his Pension Benefit in a lump sum.

 

	
6.5

	
A Member may elect to take Early Retirement at anytime to a maximum of ten years prior to his Normal Retirement Date. Such Member may elect to take his retirement benefits as if he had retired at Normal Retirement Date.

 

	
6.6

	
A Member continuing employment beyond Normal Retirement Date, upon mutual agreement with the Employer, shall defer receipt of his accumulated pension benefits until he ceases to work.

 

SECTION VII

 

Regulations Governing the Payment of Pension Benefits

 

	
7.1

	
Pension benefit to which each member will be entitled at retirement shall be the value of the Units and or cash allocated to his Accounts as at the Valuation Day immediately following receipt by the Administrator of written notification of termination of the Member's service from the Employer.

 

	
7.2

	
Amounts withdrawn from the Trust Fund by the terms of the Plan Rules shall only be withdrawn on a Valuation Day and Units in an aggregate equal in value to the amount so withdrawn in respect of any Member shall be canceled and cash withdrawn accordingly.

 

	
7.3

	
Pension benefits under the Pension Plan may be in the form of a fully paid up Pension. Such Pension will be determined by each Member in consultation with the Trustee, taking into consideration the needs of any Beneficiary of that Member. The Pension shall be payable to the Member or his Beneficiary as soon as practicable after the Valuation Day immediately following receipt by the Administrator of written notification of termination of the Member's service from the Employer. The amount to be applied towards the purchase of the Pension shall be the sum attributable to the Member's Mandatory, Rollover and Voluntary Accounts, the latter at the Member's discretion. Notwithstanding the above, only amounts equal to or in excess of $50,000 can be applied towards the purchase of a Pension.

 

	
7.4

	
The insurance company or financial institution from whom the Pension has been purchased shall issue a certificate setting out the particulars of the Pension to the Member.

 

	
7.5

	
If a Member dies while employed by the Employer, the Trustee and the Administrator, acting jointly, shall have discretion, having regard to the age and identity of the Beneficiary, to provide either a lump sum cash payment or a Pension, or a combination of both in the event that the Member has not previously elected the form of Pension payable to his designated Beneficiary.

 

	
7.6

	
If a former Member dies after payment of his Pension benefit is due to commence, the benefit ("survivor benefit") shall be paid to his Beneficiary in accordance with the terms of the Plan.

 

	
  

	
(a)

	
The commuted value of the survivor benefit payable under 7.6 shall be not less than the value of the former Member's Account balance, including accumulated additional Voluntary Contributions, if any.

 

	
  

	
(b)

	
Where no Beneficiary has been appointed, or where the Beneficiary predeceases the Member, the survivor benefit described in 7.6 shall be paid to the estate of the Member.

 

	
7.7

	
If a Member dies before payment of his Pension is due to commence, his Beneficiary shall receive a lump sum payment equal to the value of Pension benefit.

 

	
7.8

	
Where no Beneficiary has been appointed, or where the Beneficiary predeceases the Member, the benefit described in 7.7 shall be paid to the estate of the Member.

 

	
7.9

	
If a Member dies before completion of two years of membership in the pension plan, his Beneficiary shall receive a lump sum payment equal to the Member's contributions, if any, plus earnings thereon

 

	
7.10

	
If any person entitled to receive any benefits under this Plan is in the judgment of the Trustee and the Employer, legally, physically or mentally incapable of personally receiving any the benefits, or is a minor, the Trustee may pay the benefits to such other person or persons or institution as, in its judgment shall have custody of the retired Member or his Beneficiary. Such payment shall be a complete discharge of any liability under the Plan to the payee

 

	
7.11

	
All amounts distributable under the Plan shall be paid in the currency of the United States of America.

 

  

- 17 -

  

 

SECTION VIII

 

Lapsed Benefits

 

	
8.1

	
In the event that a benefit is payable under this Plan to a Member, and after reasonable efforts the Member cannot be located for the purpose of paying the benefit during a period of three consecutive years, the Member shall be presumed dead and the benefit shall upon termination of that three year period, be paid out to the Member's Beneficiary. If an eligible Beneficiary cannot be located for the purpose of paying the benefit for the following two years, then the benefit shall be forfeited pursuant to 9.1.

 

	
8.2

	
If a Member shall die prior to receiving a distribution of all his benefits under the Plan, if after reasonable efforts, an eligible Beneficiary of the Member cannot be located for the purpose of paying the benefit during a period of five consecutive years, the benefit shall upon expiration of such five-year period be forfeited pursuant to 9.1.

 

	
8.3

	
Notwithstanding the foregoing Rules, if after such forfeiture, the Member or an eligible Beneficiary shall claim the forfeited benefit, the amount forfeited shall be reinstated (without regard to any interest or investment earnings on such amount since the forfeiture) at the complete discretion of the Trustee and paid to the claimant as soon as practical following the claimant's production of reasonable proof of his or her identity and entitlement to the benefit

 

SECTION IX

 

Forfeiture of Lapsed Benefits

 

	
9.1

	
Forfeiture of lapsed benefits of any former Member shall be applied as follows, and in this order:

 

	
  

	
(a)

	
to correct insufficient allocation of Employer Contributions made to any Member,

 

	
  

	
(b)

	
to reduce future Employer Contributions to the Plan,

 

	
  

	
(c)

	
to enhance future benefits for the remaining Members, or

 

	
  

	
(d)

	
to pay such of the Plan's expenses, as the Employer in its absolute discretion shall determine.

 

	
9.2

	
Forfeiture of lapsed benefits will not be refunded to the Employer in cash.

 

SECTION X

 

Administration of the Plan

 

	
10.1

	
The Plan shall be administered by the Trustee, and for this purpose, the Trustee has appointed the Administrator.

 

	
10.2

	
The prudent investment of the Trust Fund shall be handled by professionally recognised, experienced Investment Managers selected after careful study by the Trustee in co­ordination with the Administrator and awarded on a competitive basis.

 

	
10.3

	
The Administrator and the Trustee shall be able to rely on all reports made by any duly appointed accountants and all opinions given by any duly appointed legal counsel. Such counsel may be counsel for the Administrator and for the Trustee.

 

	
10.4

	
In addition to the powers specified above, the Administrator shall have the power to compute and certify to the Trustee and to the Employer under the Plan, the amount and kind of benefits from time to time payable to Members and their Beneficiaries.

 

	
10.5

	
To enable the Administrator to perform its functions, the Employer shall supply full and timely information to the Administrator on all matters relating to the compensation of all Members, their retirement, death or other cause for termination of employment, and such other pertinent facts as the Administrator may require.

 

  

- 18 -

  

 

	
10.6

	
The Trustee shall during normal business hours supply to any Member on demand, a copy of the rules governing the Plan and any amendments thereto, and a copy of the latest statement reflecting the most recent valuation of his Accounts.

 

	
10.7

	
For its services, the Administrator shall receive such fees as agreed from time to time by the Trustee.

 

SECTION XI

 

Investment of Trust Fund's Assets

 

	
11.1

	
Each Member will choose the manner in which his contributions must be invested. Such choices must be made from the selected options provided by the Trustee.

 

	
11.2

	
The Trustee may establish separate investment options under the Plan, with each option representing alternatives available to the Members for the investment of Contributions. The Trustee at its discretion may establish alternative options or eliminate any previously established ones.

 

The options available at the date of the execution of the Trust Deed as follows:

 

	
· Global Equities

	
(Fidelity Investments)

	
· US Equities

	
(MFS)

	
· European Equities

	
(Fidelity Investments)

	
· South East Asia Equities

	
(Fidelity Investments)

	
· US Small Cap Equities

	
(MFS)

	
· Global Bonds

	
(Morgan Stanley)

	
· US Bonds

	
(MFS)

	
· Balanced Fund

	
(Fidelity Investments)

	
· Capital G Bank

 

	  

	
11.3

	
The Trustee and the Administrator shall forthwith determine and publish guidelines to be applied in investing the Trust Fund and shall review such guidelines at least once in each year and shall publish details of any amendments thereto.

 

	
11.4

	
A Member must elect the investment options from among those offered by the Trustee. Such election shall be made on the enrollment form. A Member may also change such election once a year, on the anniversary of the Plan. Such elections shall be limited to the investment options currently offered by the Trustee and currently available pursuant to I 1.2 hereto. A Member shall effect the change in investment options by properly completing and submitting the Appropriate Form authorised by the Administrator for this purpose.

 

	
11.5

	
Amounts invested in anyone of the investment options shall not share in gains and losses experienced by any other options.

 

	
11.6

	
The investment funds shall be valued at current fair market value as of the last business day of each calendar month and, at the discretion of the Trustee may be valued more frequently. Each fund shall be valued separately so that gains and losses of the various options shall not be commingled. The valuation shall take into consideration investment earnings credited, expenses charged, payments made and changes in the value of the assets held in the funds. Upon completion of the valuations the Administrator shall re­value each Member's Account as of the applicable Valuation Day, and allocate to each Member, Units or cash equal to the amount of Contributions received in respect of that Member for each investment option, since the last Valuation Day.

 

	
11.7

	
The Employer, the Trustee, and the Administrator shall not be liable or responsible for the adequacy of the Trust Fund to meet and discharge any and all payments and liabilities thereunder. All Plan benefits will be paid only from the Trust Fund's assets, and neither the Employer, the Trustee, nor the Administrator shall have any duty or liability to furnish the Trust Fund with any funds, securities or other assets except as expressly provided in the Plan.

 

SECTION XII

 

General Provisions

 

	
12.1

	
The Plan may be wholly or partially amended or otherwise modified, in writing, at any time by the Trustee, and the Employer, provided however that:

 

  

- 19 -

  

 

	
12.2

	
No amendment or modification may be made which should permit any part of the Trust Fund to be used for or diverted to purposes other than for exclusive benefit of the Members and their Beneficiaries under the Plan and for the payment of expenses incurred by the Administrator.

 

	
12.3

	
No amendment or modification may be made which should adversely affect the Account balances of the Members and their Beneficiaries under the Plan and;

 

	
12.4

	
No amendments or modification may be made which shall increase the duties or liabilities of the Administrator without the written consent of the parties so affected.

 

	
12.5

	
No amendment to this Plan shall take effect except by mutual agreement between the Employer, the Trustee, and the Administrator.

 

	
12.6

	
Nothing contained in this Plan gives a Member the right to be retained in the Employer's employ or to interfere with the Employer's right to discharge a Member.

 

	
12.7

	
No Member shall have any right to or interest in any assets of the Plan upon termination of his employment or otherwise except as specially provided under this Plan, and then only to the extent of the benefits payable to such Member in accordance with the provisions of the Plan.

 

	
12.8

	
Benefits payable under the Plan are not subject to the claims of any creditor of any Member or his Beneficiary. A Member or his Beneficiary does not have any rights to alienate, anticipate, commute, pledge, encumber or assign any of such benefits; neither the benefits of a Member or his Beneficiary shall be subject to any judgment rendered against any such Member or his Beneficiary.

 

	
12.9

	
The validity of the Plan or any of its provisions is determined under and construed according to the laws Bermuda. In case, or in the event of any provision of this Plan being held illegal or invalid for any reason, such determination shall not affect the remaining provisions of this Plan and this Plan shall be construed and enforced as if the illegal and invalid provision had never been included.

 

	
12.10

	
These Plan Rules and the Trust Deed shall be construed together as one instrument. In the event of any conflict arises between the terms and/or conditions of the Trust Deed and this Plan, the provisions of this Plan shall control, except that with respect to the duties and responsibilities of the Trustee, the Trust Deed shall control.

 

	
12.11

	
Each Member shall name a Beneficiary to receive any accumulated pension benefit that may arise out of his Membership in the Plan. The Member may change his Beneficiary from time to time. It is the responsibility of the Member to give written notice to the Employer of the name of the Beneficiary. If a Member files no designation of Beneficiary as to all or any part of the benefits payable under the Plan, or has revoked his designation without filing a new designation, or if a designated Beneficiary shall predecease the Member, or having survived him shall die prior to the complete and final distribution of the Member's benefits, or if after a diligent and reasonable search by the Employer, the Trustee, and the Administrator, a designated Beneficiary cannot be found, then the undistributed portion of the benefits of a deceased Member shall be forfeited pursuant to 9.1.

 

	
12.12

	
Except as provided in this document and except for any payment agreed upon between the Employer and the Administrator, the Administrator and the Trustee shall not make any payments other than to the Member entitled thereto or his Beneficiary.

 

	
12.13

	
Each Member and the Employer shall furnish all information and evidence required by the Administrator, including certificates of birth and death and proof of existence which the Administrator may properly require whether before of after payment of any benefits to a Member.

 

SECTION XIII

 

Discontinuance of the Plan

 

	
13.1

	
The Plan may be discontinued upon liquidation of the Employer, or upon the Employer withdrawing from the Plan.

 

	
13.2

	
If the Plan is discontinued pursuant to 13.1, the Trust Fund shall be re-valued as if the termination date was the Valuation Day. The Units and or cash allocated to each Member's Accounts shall be realised by the Administrator, and the amount standing to the credit of each Member shall be:

 

	
  

	
(a)

	
transferred to another pension plan;

 

	
  

	
(b)

	
applied towards the purchase of a fully paid up Pension commencing at Normal Retirement Date, provided that the amount standing to the credit of each Member is equal or exceeds $50,000. If the said amount is less than $50,000, the Member shall receive a lump sum payment;

 

	
  

	
(c)

	
paid out to each Member in the form of a lump sum.

 

  

- 20 -

  

 

SECTION XIV

 

Adoption of the Plan by Affiliated Companies

 

	
14.1

	
Any company which is or becomes an affiliate, subsidiary or associate of the Employer may adopt this Plan with the approval of the Trustee and thereby come within the definition of Employer. The Plan as to each such company shall become effective upon entering into an adoption agreement in the form and substance prescribed by the Trustee. The Trustee may prospectively revoke or modify any such employer's participation in the Plan at any time. If the Plan is discontinued with respect to such employer's employees, such allocable funds shall be allocated with respect to each Member affected and shall be applied pursuant to the provisions of section 14.2.

 

	
14.2

	
By execution of an adoption agreement, (each of which shall become part of the Plan), the affiliated company agrees to be bound by all the terms and conditions of this Plan.

 

 

 

These Plan Rules were approved in final form by the Employer.

 

This 16th day of June, 2005

 

By:  /s/ Michael E. Lombardozzi                                           

Michael E. Lombardozzi

 

- 21 -

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