Document:

1999 Employee Stock Purchase Plan, as amended

 Exhibit 10.2 
  
 PALM, INC. 
  
 1999 EMPLOYEE STOCK PURCHASE PLAN 
  
 (As Amended and Restated Effective as of July 1, 2004) 
  
 The following constitute the provisions of the Palm, Inc. 1999 Employee Stock Purchase Plan, as amended and restated effective as of July 1, 2004:

  
 1. Purpose. The purpose of the Plan is to provide
Employees with an opportunity to purchase Common Stock through accumulated payroll deductions. It is the intention of the Company to have the Plan qualify as an “Employee Stock Purchase Plan” under Section 423 of the Code. The provisions
of the Plan, accordingly, shall be construed so as to extend and limit participation in a manner consistent with the requirements of that section of the Code. 
  

2. Definitions. 
  
 (a) “Administrator” shall mean the Board or any committee thereof designated by the Board in accordance with Section 14. 
  
 (b) “Board” shall mean the Board of Directors of the
Company. 
  
 (c) “Code” shall mean the Internal
Revenue Code of 1986, as amended. Any reference to a section of the Code herein shall be a reference to any successor or amended section of the Code. 
  
 (d) “Common Stock” shall mean the common stock of the Company. 
  
 (e) “Company” shall mean Palm, Inc., a Delaware corporation. 
  
 (f) “Compensation” shall mean an Employee’s base
straight time gross earnings and commissions, but shall exclude payments for overtime, shift premium, incentive compensation, incentive payments, bonuses and other compensation. 
  
 (g) “Designated Subsidiary” shall mean any Subsidiary that has been designated by the Administrator from
time to time in its sole discretion as eligible to participate in the Plan with respect to its Employees. 
  
 (h) “Employee” shall mean any individual who is an employee of an Employer for tax purposes and is customarily employed for at least
twenty (20) hours per week and more than five (5) months in any calendar year by the Employer. For purposes of the Plan, the employment relationship shall be treated as continuing intact while the individual is on sick leave or other leave of
absence approved by the Employer. Where the period of leave exceeds ninety (90) days and the individual’s right to reemployment is not guaranteed either by statute or by contract, the employment relationship shall be deemed to have terminated
on the 91st day of such leave. 

 (i) “Employer” shall mean any one or all of the Company and its Designated Subsidiaries.

  
 (j) “Enrollment Date” shall mean the first
Trading Day of each Offering Period. 
  
 (k) “Exercise
Date” shall mean the last Trading Day of each Purchase Period. 
  
 (l) “Fair Market Value” shall mean, as of any date, the value of Common Stock determined as follows: 
  
 (i) If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq National Market
or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for the Common Stock (or the closing bid, if no sales were reported) as quoted on such exchange or system on the date of determination,
as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
  
 (ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the
mean of the closing bid and asked prices for the Common Stock on the date of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
  
 (iii) In the absence of an established market for the Common Stock, the Fair
Market Value thereof shall be determined in good faith by the Administrator; or 
  
 (iv) For purposes of the Enrollment Date of the first Offering Period under the Plan, the Fair Market Value shall be the initial price to the public as set forth in the final prospectus included with the registration
statement on Form S-1 filed with the Securities and Exchange Commission for the initial public offering of the Company’s Common Stock (the “Registration Statement”). 
  
 (m) “Offering Periods” shall mean the periods of approximately twenty-four (24) months during which an
option granted pursuant to the Plan may be exercised, commencing on the first Trading Day on or after April 1 and October 1 of each year and terminating on the last Trading Day in the periods ending twenty-four (24) months later; provided, however,
that the first Offering Period under the Plan shall commence with the first Trading Day on or after the date on which the Securities and Exchange Commission declares the Company’s Registration Statement effective and ending on the last Trading
Day on or before March 31, 2002. Notwithstanding the foregoing, if a new Offering Period is established in accordance with Section 25, the new Offering Period shall commence on the last Exercise Date of the immediately preceding Offering
Period following the exercise of options on such Exercise Date. The duration and timing of Offering Periods may be changed by the Administrator pursuant to Section 4. 
  
 (n) “Parent” shall mean a “parent corporation,” whether now or hereafter existing, as defined in
Section 424(e) of the Code. 
  
 (o) “Plan” shall
mean this 1999 Employee Stock Purchase Plan, as amended from time to time. 
  

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 (p) “Purchase Period” shall mean the approximately six (6) month period commencing after
one Exercise Date and ending with the next Exercise Date, except that the first Purchase Period of any Offering Period shall commence on the Enrollment Date and end with the next Exercise Date. 
  
 (q) “Purchase Price” shall mean eighty-five percent (85%) of
the Fair Market Value of a share of Common Stock on the Enrollment Date or on the Exercise Date, whichever is lower; provided however, that the Purchase Price may be adjusted by the Administrator pursuant to Section 20. 
  
 (r) “Reserves” shall mean the number of shares of Common
Stock covered by each option under the Plan which have not yet been exercised and the number of shares of Common Stock which have been authorized for issuance under the Plan but not yet placed under option. 
  
 (s) “Subsidiary” shall mean a corporation, domestic or
foreign, of which not less than 50% of the voting shares are held by the Company or a Subsidiary, whether or not such corporation now exists or is hereafter organized or acquired by the Company or a Subsidiary. 
  
 (t) “Trading Day” shall mean a day on which U.S. national
stock exchanges and the Nasdaq System are open for trading. 
  
 3.
Eligibility. 
  
 (a) Any person who is an Employee as of
the Enrollment Date of a given Offering Period shall be eligible to participate in such Offering Period under the Plan, subject to the requirements of Section 5. 
  
 (b) Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under the Plan (i) to
the extent that, immediately after the grant, such Employee (or any other person whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own capital stock of the Company or any Parent or Subsidiary of the
Company and/or hold outstanding options to purchase such stock possessing five percent (5%) or more of the total combined voting power or value of all classes of the capital stock of the Company or any Parent or Subsidiary of the Company, or (ii) to
the extent that his or her rights to purchase stock under all employee stock purchase plans (as defined in Section 423 of the Code) of the Company or any Parent or Subsidiary of the Company accrues at a rate which exceeds twenty-five thousand
dollars ($25,000) worth of stock (determined at the Fair Market Value of the stock at the time such option is granted) for each calendar year in which such option is outstanding at any time. 
  
 4. Offering Periods. The Plan shall be implemented by consecutive,
overlapping Offering Periods, with a new Offering Period commencing on the first Trading Day on or after April 1 and October 1 of each year, or on such other date as the Administrator shall determine, and continuing thereafter until terminated in
accordance with Section 20; provided, however, that the first Offering Period under the Plan shall commence with the first Trading Day on or after the date on which the Securities and Exchange Commission declares the Company’s Registration
Statement effective and ending on the last Trading Day on or before March 31, 2002. The Administrator shall have the power to change the duration of Offering Periods (including the commencement dates thereof) with respect to future offerings without
shareholder approval if such change is announced at least five (5) days prior to the scheduled beginning of the first Offering Period to be affected thereafter. 
  

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 5. Participation. An Employee who is eligible to participate in the Plan pursuant to Section 3 may
become a participant in the Plan by (i) submitting to the Company’s Stock Administration Department (or its designee), on or before a date prescribed by the Administrator prior to an applicable Enrollment Date, a properly completed subscription
agreement authorizing payroll deductions in the form provided by the Administrator for such purpose, or (ii) following an electronic or other enrollment procedure prescribed by the Administrator. 
  
 6. Payroll Deductions. 
  
 (a) At the time a participant enrolls in the Plan pursuant to Section 5, he
or she shall elect to have payroll deductions made on each payday during the Offering Period in an amount not exceeding ten percent (10%) of the Compensation which he or she receives on each such payday. However, if the percentage of a
participant’s Compensation deducted for purposes of this Plan and all other plans of the Company or any Parent or Subsidiary of the Company, that are intended to qualify as “employee stock purchase plans” under Section 423 of the Code
exceeds ten percent (10%), then the percentage of Compensation deducted for purposes of this Plan shall be reduced such that the participant’s percentage of Compensation deducted under all such plans that qualify under Section 423 of the Code
does not exceed ten percent (10%) of the Compensation which the participant receives on each pay day during the Offering Period. 
  
 (b) Payroll deductions authorized by a participant shall commence on the first payday following the Enrollment Date and shall end on the last payday in
the Offering Period to which such authorization is applicable, unless sooner terminated by the participant as provided in Section 10. 
  
 (c) All payroll deductions made for a participant shall be credited to his or her account under the Plan and shall be withheld in whole percentages only.
A participant may not make any additional payments into such account. 
  
 (d) A participant may discontinue his or her participation in the Plan as provided in Section 10, or may change the rate of his or her payroll deductions during the Offering Period by (i) properly completing and submitting to the
Company’s Stock Administration Department (or its designee), on or before a date prescribed by the Administrator prior to an applicable Exercise Date, a new subscription agreement authorizing the change in payroll deduction rate in the form
provided by the Administrator for such purpose, or (ii) following an electronic or other procedure prescribed by the Administrator. If a participant has not followed such procedures to change the rate of payroll deductions, the rate of his or her
payroll deductions shall continue at the originally elected rate throughout the Offering Period and future Offering Periods (unless terminated as provided in Section 10). The Administrator may, in its sole discretion, limit the nature and/or number
of payroll deduction rate changes that may be made by participants during any Offering Period. Any change in payroll deduction rate made pursuant to this Section 6(d) shall be effective as of the beginning of the calendar month immediately following
the date on which the change is made by the participant. 
  

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 (e) Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code
and Section 3(b), a participant’s payroll deductions may be decreased to zero percent (0%) at any time during a Purchase Period. Payroll deductions shall recommence at the rate originally elected by the participant effective as of the beginning
of the first Purchase Period which is scheduled to end in the following calendar year, unless terminated by the participant as provided in Section 10. 
  
 (f) At the time the option is exercised, in whole or in part, or at the time some or all of the Common Stock issued under the Plan is disposed of, the
participant must make adequate provision for the Company’s federal, state, or other tax withholding obligations, if any, which arise upon the exercise of the option or the disposition of the Common Stock. At any time, the Company may, but shall
not be obligated to, withhold from the participant’s compensation the amount necessary for the Company to meet applicable withholding obligations, including any withholding required to make available to the Company any tax deductions or
benefits attributable to sale or early disposition of Common Stock by the participant. 
  
 7. Grant of Option. On the Enrollment Date of each Offering Period, each Employee participating in such Offering Period shall be granted an option to purchase on each Exercise Date during such Offering Period
(at the applicable Purchase Price) up to a number of shares of Common Stock determined by dividing such participant’s payroll deductions accumulated prior to such Exercise Date and retained in the participant’s account as of the Exercise
Date by the applicable Purchase Price; provided that in no event shall a participant be permitted to purchase during each Purchase Period more than 740 shares of Common Stock for Offering Periods beginning prior to March 31, 2004 and 1,500 shares of
Common Stock for Offering Periods beginning after March 31, 2004 (subject to any adjustment pursuant to Section 19), and provided further that such purchase shall be subject to the limitations set forth in Sections 3(b) and 13. The Administrator
may, for future Offering Periods, increase or decrease, in its absolute discretion, the maximum number of shares of Common Stock that an Employee may purchase during each Purchase Period of such Offering Period. Exercise of the option shall occur as
provided in Section 8, unless the participant has withdrawn pursuant to Section 10. The option shall expire on the last day of the Offering Period. 
  
 8. Exercise of Option. 
  
 (a) Unless a participant withdraws from the Plan as provided in Section 10, his or her option for the purchase of shares of Common Stock shall be
exercised automatically on the Exercise Date, and the maximum number of full shares subject to the option shall be purchased for such participant at the applicable Purchase Price with the accumulated payroll deductions in his or her account. No
fractional shares of Common Stock shall be purchased; any payroll deductions accumulated in a participant’s account which are not sufficient to purchase a full share shall be retained in the participant’s account for the subsequent
Purchase Period or Offering Period, subject to earlier withdrawal by the participant as provided in Section 10. Any other monies left over in a participant’s account after the Exercise Date shall be returned to the participant. During a
participant’s lifetime, a participant’s option to purchase shares hereunder is exercisable only by him or her. 
  
 (b) If the Administrator determines that, on a given Exercise Date, the number of shares of Common Stock with respect to which options are to be exercised
may exceed (i) the 
  

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 number of shares of Common Stock that were available for sale under the Plan on the Enrollment Date of the applicable
Offering Period, or (ii) the number of shares of Common Stock available for sale under the Plan on such Exercise Date, the Administrator may in its sole discretion (x) provide that the Company shall make a pro rata allocation of the shares of Common
Stock available for purchase on such Enrollment Date or Exercise Date, as applicable, in as uniform a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all participants exercising options to
purchase Common Stock on such Exercise Date, and continue all Offering Periods then in effect, or (y) provide that the Company shall make a pro rata allocation of the shares of Common Stock available for purchase on such Enrollment Date or Exercise
Date, as applicable, in as uniform a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all participants exercising options to purchase Common Stock on such Exercise Date, and terminate any or all
Offering Periods then in effect pursuant to Section 20. The Company may make pro rata allocation of the shares of Common Stock available on the Enrollment Date of any applicable Offering Period pursuant to the preceding sentence, notwithstanding any
authorization of additional shares of Common Stock for issuance under the Plan by the Company’s shareholders subsequent to such Enrollment Date. 
  
 9. Delivery. As promptly as practicable after each Exercise Date on which a purchase of shares of Common Stock occurs, the Company shall arrange
the delivery to each participant, as appropriate, of a record of the shares purchased. The Administrator may permit or require that such shares be deposited directly with a broker designated by the Administrator or to a designated agent of the
Company, and the Administrator may utilize electronic or other automated methods of share transfer. No participant shall have any voting, dividend, or other shareholder rights with respect to shares of Common Stock subject to any option granted
under the Plan until such shares have been purchased and delivered to the participant as provided in this Section 9. 
  
 10. Withdrawal. 
  
 (a) Under procedures established by the Administrator, a participant may withdraw all but not less than all the payroll deductions credited to his or her
account and not yet used to exercise his or her option under the Plan by submitting to the Company’s Stock Administration Department (or its designee) a notice of withdrawal in the form and manner prescribed by the Administrator for such
purpose. Unless otherwise determined by the Administrator on a uniform and non-discriminatory basis, any election to withdraw from an Offering Period will be effective only with respect to Exercise Dates that are at least five (5) business days
after the properly completed election is received by the Company’s Stock Administration Department. All of the participant’s payroll deductions credited to his or her account shall be paid to such participant as promptly as practicable
after the effective date of his or her withdrawal and such participant’s option for the Offering Period shall be automatically terminated, and no further payroll deductions for the purchase of shares shall be made for such Offering Period. Once
a participant has withdrawn from an Offering Period, the participant may not re-enroll in the same Offering Period. Moreover, payroll deductions shall not resume at the beginning of the succeeding Offering Period unless the participant re-enrolls in
the Plan in accordance with the provisions of Section 5. 
  
 (b) A
participant’s withdrawal from an Offering Period shall not have any effect upon his or her eligibility to participate in any similar plan which may hereafter be adopted by the Company or in succeeding Offering Periods which commence after the
termination of the Offering Period from which the participant withdraws. 
  

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 11. Termination of Employment. Upon a participant’s ceasing to be an Employee for any reason,
he or she shall be deemed to have elected to withdraw from the Plan and the payroll deductions credited to such participant’s account during the Offering Period but not yet used to exercise the option shall be returned to such participant or,
in the case of his or her death, to the person or persons entitled thereto under Section 15, and such participant’s option shall be automatically terminated. The preceding sentence notwithstanding, a participant who receives payment in lieu of
notice of termination of employment shall be treated as continuing to be an Employee for the participant’s customary number of hours per week of employment during the period in which the participant is subject to such payment in lieu of notice;
provided, however, that in no event shall the participant’s option be exercisable more than three (3) months after the date of his or her termination of employment. 
  
 12. Interest. No interest shall accrue on the payroll deductions of a participant in the Plan. 
  
 13. Stock. 
  
 (a) Subject to adjustment upon changes in capitalization of the Company as
provided in Section 19, the maximum number of shares of Common Stock which shall be made available for sale under the Plan shall be 3,749,487* shares plus an annual increase to be added on the first day of the Company’s fiscal year equal to the
lesser of (i) 739,791 shares, (ii) 2% of the outstanding shares of Common Stock on such date, or (iii) a lesser amount determined by the Board. 
  
 (b) Shares of Common Stock to be delivered to a participant under the Plan shall be registered in the name of the participant or in the name of the
participant and his or her spouse. 
  
 14. Administration.
The Plan shall be administered by the Board or a committee of members of the Board who shall be appointed from time to time by, and shall serve at the pleasure of, the Board. The Administrator shall have full and exclusive discretionary authority to
construe, interpret and apply the terms of the Plan, to determine eligibility and to adjudicate all disputed claims filed under the Plan. The Administrator, in its sole discretion and on such terms and conditions as it may provide, may delegate to
one or more individuals all or any part of its authority and powers under the Plan. Every finding, decision and determination made by the Administrator shall, to the full extent permitted by law, be final and binding upon all parties. 

	*	This number includes the 5,000,000 Shares initially reserved for issuance under the Plan, plus the Shares that have been added annually pursuant to this Section 13(a) since the
first day of the Company’s 2001 fiscal year through July 1, 2004, as adjusted for the 1-for-20 reverse stock split effected on October 15, 2002 and the spin-off of PalmSource effected on October 28, 2003. 

  

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 15. Designation of Beneficiary. 
  
 (a) A participant may designate a beneficiary who is to receive any shares of Common Stock and cash, if any, from the
participant’s account under the Plan in the event of such participant’s death subsequent to an Exercise Date on which the option is exercised but prior to delivery to such participant of such shares and cash. In addition, a participant may
designate a beneficiary who is to receive any cash from the participant’s account under the Plan in the event of such participant’s death prior to exercise of the option. If a participant is married and the designated beneficiary is not
the spouse, spousal consent shall be required for such designation to be effective. 
  
 (b) Such designation of beneficiary may be changed by the participant at any time. In the event of the death of a participant and in the absence of a beneficiary validly designated under the Plan who is living at the
time of such participant’s death, the Company shall deliver such shares and/or cash to the executor or administrator of the estate of the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company),
the Company, in its discretion, may deliver such shares and/or cash to the spouse or to any one or more dependents or relatives of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the
Company may designate. 
  
 (c) All beneficiary designations under
this Section 15 shall be made in such form and manner as the Administrator may prescribe from time to time. 
  
 16. Transferability. Neither payroll deductions credited to a participant’s account nor any rights with regard to the exercise of an option or
to receive shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in Section 15) by the participant. Any such attempt at assignment,
transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw from an Offering Period in accordance with Section 10. 
  
 17. Use of Funds. All payroll deductions received or held by the Company under the Plan may be used by the Company
for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions. Until shares of Common Stock are issued under the Plan, a participant shall only have the rights of an unsecured creditor with respect to such
shares. 
  
 18. Reports. Individual accounts shall be
maintained for each participant in the Plan. Statements of account shall be given to participating Employees at least annually, which statements shall set forth the amounts of payroll deductions, the Purchase Price, the number of shares of Common
Stock purchased and the remaining cash balance, if any. 
  
 19.
Adjustments Upon Changes in Capitalization, Dissolution, Liquidation, Merger or Asset Sale. 
  
 (a) Changes in Capitalization. Subject to any required action by the shareholders of the Company, the Reserves, the number of shares of Common
Stock that may be added annually to the shares reserved under the Plan (pursuant to Section 13(a)(i)), the maximum number of shares of Common Stock each participant may purchase each Purchase Period (pursuant to Section 7), as well as the Purchase
Price per share and the number of shares of Common Stock covered by each option under the Plan which has not yet been exercised, shall be proportionately adjusted for any spin-off or increase or decrease in the number of issued shares of Common
Stock resulting from a 
  

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 stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other
increase or decrease in the number of shares of Common Stock effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected
without receipt of consideration.” Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or Purchase Price of shares of Common Stock subject to an option. 
  
 (b) Dissolution or Liquidation. In the event of the proposed
dissolution or liquidation of the Company, the Offering Period then in progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”), and shall terminate immediately prior to the consummation of such proposed
dissolution or liquidation, unless provided otherwise by the Board. The New Exercise Date shall be before the date of the Company’s proposed dissolution or liquidation. The Board shall notify each participant in writing, at least ten (10)
business days prior to the New Exercise Date, that the Exercise Date for the participant’s option has been changed to the New Exercise Date and that the participant’s option shall be exercised automatically on the New Exercise Date, unless
prior to such date the participant has withdrawn from the Offering Period as provided in Section 10. 
  
 (c) Merger or Asset Sale. In the event of a proposed sale of all or substantially all of the assets of the Company, or the merger of the Company
with or into another corporation, each outstanding option shall be assumed or an equivalent option substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. In the event that the successor corporation refuses
to assume or substitute for the option, any Purchase Periods then in progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”) and any Offering Periods then in progress shall end on the New Exercise Date. The New
Exercise Date shall be before the date of the Company’s proposed sale or merger. The Board shall notify each participant in writing, at least ten (10) business days prior to the New Exercise Date, that the Exercise Date for the
participant’s option has been changed to the New Exercise Date and that the participant’s option shall be exercised automatically on the New Exercise Date, unless prior to such date the participant has withdrawn from the Offering Period as
provided in Section 10. 
  
 20. Amendment or Termination.

  
 (a) The Board may at any time and for any reason terminate or
amend the Plan. Except as provided in Section 19, no such termination can affect options previously granted under the Plan, provided that an Offering Period may be terminated by the Board on any Exercise Date if the Board determines that the
termination of the Offering Period or the Plan is in the best interests of the Company and its shareholders. Except as provided in Section 19 and this Section 20, no amendment may make any change in any option theretofore granted which adversely
affects the rights of any participant. To the extent necessary to comply with Section 423 of the Code (or any successor rule or provision or any other applicable law, regulation or stock exchange rule), the Company shall obtain shareholder approval
in such a manner and to such a degree as required. 
  

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 (b) Without shareholder consent and without regard to whether any participant rights may be considered to
have been “adversely affected,” the Administrator shall be entitled to change the Offering Periods, limit the frequency and/or number of changes in the amount withheld during an Offering Period, establish the exchange ratio applicable to
amounts withheld in a currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by a participant in order to adjust for delays or mistakes in the Company’s processing of properly completed withholding
elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each participant properly correspond with amounts withheld from the
participant’s Compensation, and establish such other limitations or procedures as the Administrator determines in its sole discretion advisable which are consistent with the Plan. 
  
 (c) In the event the Board determines that the ongoing operation of the Plan may result in unfavorable financial accounting
consequences, the Board may, in its discretion and, to the extent necessary or desirable, modify or amend the Plan to reduce or eliminate such accounting consequence including, but not limited to: 
  
 (i) altering the Purchase Price for any Offering Period including an
Offering Period underway at the time of the change in Purchase Price; 
  
 (ii) shortening any Offering Period so that Offering Period ends on a new Exercise Date, including an Offering Period underway at the time of the Board action; and 
  
 (iii) allocating shares. 
  
 Such modifications or amendments shall not require stockholder approval or the consent of any Plan participants. 
  
 21. Notices. All notices or other communications by a participant to
the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 
  
 22. Conditions Upon Issuance of Shares. Shares of Common Stock shall
not be issued with respect to an option under the Plan unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without
limitation, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the shares may then be listed, and shall be
further subject to the approval of counsel for the Company with respect to such compliance. 
  
 As a condition to the exercise of an option, the Company may require the person exercising such option to represent and warrant at the time of any such exercise that the shares are being purchased only for investment
and without any present intention to sell or distribute such shares if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned applicable provisions of law. 
  

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 23. Term of Plan. The Plan shall become effective upon the earlier to occur of its adoption by the
Board or its approval by the shareholders of the Company. It shall continue in effect for a term of ten (10) years unless sooner terminated under Section 20. 
  
 24. No Enlargement of Employee Rights. Nothing contained in the Plan shall be deemed to give any Employee the right to be retained in the employ of
any Employer or to interfere with the right of the Employer to discharge any Employee at any time. 
  
 25. Automatic Transfer to Low Price Offering Period. To the extent permitted by any applicable laws, regulations, or stock exchange rules if the
Fair Market Value of the Common Stock on any Exercise Date in an Offering Period is lower than the Fair Market Value of the Common Stock on the Enrollment Date of such Offering Period, then all participants in such Offering Period shall be
automatically withdrawn from such Offering Period immediately after the exercise of their option on such Exercise Date and automatically re-enrolled in the immediately following Offering Period. The new Offering Period shall commence on the last
Exercise Date of the immediately preceding Offering Period after all options have been exercised on such Exercise Date. 
  

 11EX-10.1

AMENDED AND RESTATED OPTION AGREEMENT

This AMENDED AND RESTATED OPTION AGREEMENT (this “Agreement”), dated as of November 18, 2004,
amends and restates the OPTION AGREEMENT, dated November 1, 2002 (the “Option Agreement”), between
PLATINUM UNDERWRITERS HOLDINGS, LTD., a company organized under the laws of the Islands of Bermuda
(the “Company”), and RENAISSANCERE HOLDINGS LTD., a company organized under the laws of the Islands
of Bermuda (“RenRe”).

RECITALS:

WHEREAS, the Company completed an initial public offering (the “Public Offering”) of its
common shares, par value U.S.$0.01 per share (the “Common Shares”), on November 1, 2002;

WHEREAS, RenRe and the Company entered into an Investment Agreement, dated as of September 20,
2002 (the “Investment Agreement”), pursuant to which RenRe agreed to purchase from the Company that
number of Common Shares determined as set forth in the Investment Agreement;

WHEREAS, pursuant to the Investment Agreement, the Company and RenRe entered into the Option
Agreement pursuant to which the Company granted to RenRe, in respect of RenRe’s initial investment
in the Company, an option (the “Original Option”) to purchase up to 2,500,000 Common Shares
following the completion of the Public Offering at an exercise price of $27.00, which equals 120
percent of the Public Offering price per Common Share;

WHEREAS, RenRe has proposed that the Original Option be amended to provide that any exercise
thereof shall be on a net share settlement basis with payment by RenRe to the Company of cash
consideration per Common Share issued upon such exercise of the then par value of such Common
Share; and

WHEREAS, the Company has determined that the Company will benefit from a reduction in the
overhang on the market which arises from the Original Option, the Company has no need of the
capital represented by the aggregate Original Option Price, and it is in the best interests of the
Company to amend the Original Option in accordance with RenRe’s proposal.

NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements set forth
herein and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree that the Option Agreement shall be amended and
restated in its entirety as follows:

1

THE RENRE OPTION (AS DEFINED BELOW) HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF
1933. NEITHER THE RENRE OPTION, NOR ANY INTEREST THEREIN, NOR ANY COMMON SHARES DELIVERABLE UPON
EXERCISE THEREOF MAY BE ASSIGNED OR OTHERWISE TRANSFERRED, DISPOSED OF OR ENCUMBERED EXCEPT
FOLLOWING RECEIPT BY PLATINUM UNDERWRITERS HOLDINGS, LTD. (THE “COMPANY”) OF EVIDENCE SATISFACTORY
TO IT, WHICH MAY INCLUDE AN OPINION OF UNITED STATES COUNSEL, THAT SUCH TRANSFER DOES NOT REQUIRE
REGISTRATION UNDER THE SECURITIES ACT OR STATE SECURITIES LAWS AND UPON OBTAINMENT OF ANY REQUIRED
GOVERNMENT APPROVALS AND EXCEPT TO THE EXTENT PERMITTED HEREIN. TRANSFER (AS DEFINED IN THE
COMPANY’S BYE-LAWS) OF THE RENRE OPTION OR ANY INTEREST THEREIN, OR ANY COMMON SHARES DELIVERABLE
UPON EXERCISE THEREOF, MAY BE DISAPPROVED BY THE BOARD OF DIRECTORS OF THE COMPANY IF, IN ITS
REASONABLE JUDGMENT, IT HAS REASON TO BELIEVE THAT SUCH TRANSFER MAY EXPOSE THE COMPANY, ANY
SUBSIDIARY THEREOF, ANY SHAREHOLDER OR ANY PERSON CEDING INSURANCE TO THE COMPANY OR ANY SUCH
SUBSIDIARY TO ADVERSE TAX OR REGULATORY TREATMENT IN ANY JURISDICTION. COMMON SHARES OBTAINED UPON
EXERCISE OF THE RENRE OPTION ARE SUBJECT TO SUBSTANTIAL RESTRICTIONS ON TRANSFER AS SET FORTH IN
SECTION 6 OF THIS AGREEMENT.

1. (a) The Company grants RenRe an option (the “RenRe Option”) to purchase up to 2,500,000 Common
Shares (the “RenRe Option Shares”) in accordance with the terms and conditions of this Agreement.

(b) The RenRe Option is exercisable, in whole or in part at any time prior to November 1, 2012
(the “Exercise Period”), at an exercise price per Common Share (the “Exercise Price”) equal to
$27.00 less the then par value of such Common Share, as such Exercise Price is adjusted from time
to time pursuant hereto, which Exercise Price shall be paid by reducing the number of Common Shares
obtainable upon exercise of the RenRe Option as provided in Section 1(d) hereof. As additional
consideration, in connection with any exercise of the RenRe Option, RenRe must pay the applicable
Cash Consideration to the Company in accordance with Section 2 below.

(c) The RenRe Option may be exercised on any day during the Exercise Period, other than a
Saturday, Sunday or other day on which banking institutions in New York City or Bermuda are
authorized or obligated by law or executive order to close (a “Business Day”). The RenRe Option
may be exercised as provided herein until 12:01 A.M., New York City time, on the first day after
the expiration of the Exercise Period.

(d) Upon any exercise of the RenRe Option, the Exercise Price shall be paid by reducing the
number of RenRe Option Shares obtainable upon such exercise so as to yield a number of RenRe Option
Shares issuable upon such exercise equal to the product of (x) the number of RenRe Option Shares
issuable as of the Notice Date (if payment of the Exercise Price were being made in cash) and (y)
the Exchange Ratio. For purposes hereof, (i) “Exchange Ratio” means a fraction, the numerator of
which is the excess of the Market Price per Common Share over the Exercise Price per share as of
the Notice Date and the denominator of which is the Market Price per Common Share; (ii) “Market
Price” means the average of the daily Closing Price per Common Share for each of the five
consecutive Trading Days ending on the Notice Date (the “Pre-Notice Average”) plus the average of
the daily Closing Price per Common Share for each of the five consecutive Trading Days immediately
following the Notice Date (the “Post-Notice Average”) divided by two; provided,
however, that the Post-Notice Average shall not exceed the Pre-Notice Average multiplied by
1.025 nor be less than the Pre-Notice Average multiplied by 0.975; (iii) “Trading Day” means each
Monday, Tuesday, Wednesday, Thursday and Friday, other than any day on which the Common Shares are
not traded on the applicable securities exchange or on the applicable securities market; (iv)
“Closing Price” means the reported last sale price regular way or, in case no such reported sale
takes place on such day, the average of the reported closing bid and asked prices regular way, in
either case on the New York Stock Exchange or, if the Common Shares are not listed or admitted to
trading on such Exchange, on the principal national securities exchange on which the Common Shares
are listed or admitted to trading or, if not listed or admitted to trading on any national
securities exchange, on the NASDAQ National Market or, if the Common Shares are not listed or
admitted to trading on any national securities exchange or quoted on the NASDAQ National Market,
the average of the closing bid and asked prices in the over-the-counter market as furnished by any
New York Stock Exchange member firm reasonably selected from time to time by the Board of Directors
of the Company for that purpose; and (v) “Notice Date” means the date upon which the Company
receives written notice (which shall be signed on behalf of RenRe and delivered or sent to the
Company in accordance with Section 9 hereof) from RenRe of RenRe’s exercise of the RenRe Option,
provided that the Company shall receive such notice no later than 11:59 p.m. Bermuda time on such
date.

(e) No fractional Common Share shall be issued upon any exercise of the RenRe Option. In lieu
of a fractional Common Share, RenRe shall be entitled to receive cash for the value of the
fractional Common Share, which cash payment shall be equal to the product of (i) the fraction
represented by the fractional Common Share that would have been issued absent this Section 1(e) and
(ii) the Market Price.

(f) In connection with any exercise of the RenRe Option, the Market Price, the Exercise Price,
and the number of RenRe Option Shares to be issued (after giving effect to the payment of the
Exercise Price as provided in Section 1(d) hereof) will be determined by the Company within three
Business Days after the last Trading Day included in the Post-Notice Average (the “Determination
Date”).

(g) Notwithstanding anything to the contrary in this Agreement, RenRe’s beneficial ownership
interest in the Common Shares may not at any time and under any circumstances exceed 19.9% of the
then outstanding Common Shares or such higher limit as the Company may approve in writing. It is
agreed and understood that, prior to any exercise of the RenRe Option, RenRe shall, if necessary,
dispose of such number of Common Shares so that, immediately after any exercise of the RenRe
Option, except with the prior written approval of the Company, RenRe will not beneficially own more
than 19.9% of the then outstanding Common Shares.

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

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

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

2. (a) To exercise the RenRe Option in accordance with Section 1 hereof, RenRe shall provide
written notice to the Company of its intention to exercise all or a portion of the RenRe Option.
Such notice must indicate the number of the RenRe Option Shares RenRe intends to purchase upon
exercise of the RenRe Option (prior to giving effect to the payment of the Exercise Price pursuant
to Section 1(d) hereof).

(b) On the Determination Date, the Company shall deliver written notice to RenRe of the number
of RenRe Option Shares to which RenRe is entitled as a result of the exercise of the RenRe Option.
Upon payment by RenRe to the Company of the Cash Consideration (which may be made by check, cash or
wire transfer), the Company shall promptly (but in no event later than the third Business Day after
receipt of such payment from RenRe) deliver to RenRe the RenRe Option Shares, and shall pay to
RenRe the cash in lieu of any fractional Common Share, which may be paid by check, cash or wire
transfer. The “Cash Consideration” means an amount equal to the product of (i) the number of RenRe
Option Shares to which RenRe is entitled as a result of the exercise of the RenRe Option (after
giving effect to the payment of the Exercise Price pursuant to Section 1(d) hereof) and (ii) the
then per share par value of a Common Share. Any increase in the par value of the Common Shares
from $0.01 per Common Share which would have the effect of increasing the Cash Consideration, other
than in the case of any of the actions described in Sections 3(a)(B) and 3(a)(C) hereof which
includes a proportionate adjustment in the par value, shall be subject to the prior written consent
of RenRe.

(c) Notwithstanding anything to the contrary in this Agreement, the RenRe Option may not be
exercised under this Agreement unless the required regulatory approvals set forth in Section 5
shall have been obtained.

3. (a) In case the Company:

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

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

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

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

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

(b) In case the Company issues rights, options or warrants to all holders of its outstanding
Common Shares entitling them to subscribe for or purchase Common Shares at a price per Common Share
which is lower at the record date mentioned below than the then Current Market Value (as defined in
Section 3(d)), the number of RenRe Option Shares that RenRe may purchase thereafter upon the
exercise of the RenRe Option (prior to giving effect to the payment of the Exercise Price pursuant
to Section 1(d) hereof) will be determined by multiplying the number of RenRe Option Shares
theretofore purchasable upon exercise of the RenRe Option by a fraction, of which the numerator is
the sum of (A) the number of Common Shares outstanding on the record date for determining
shareholders entitled to receive such rights, options or warrants plus (B) the number of additional
Common Shares offered for subscription or purchase, and of which the denominator shall be the sum
of (A) the number of Common Shares outstanding on the record date for determining shareholders
entitled to receive such rights, options or warrants plus (B) the number of shares which the
aggregate offering price of the total number of Common Shares so offered would purchase at the
Current Market Value (as defined below in Section 3(d)) per Common Share at such record date. Such
adjustment shall be made whenever such rights, options or warrants are issued, and shall become
effective immediately after the record date for the determination of shareholders entitled to
receive such rights, options or warrants.

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

(d) For the purpose of any computation under Section 3(b), the “Current Market Value” of such
Common Shares on a specified date is deemed to be the average daily Closing Price per Common Share
for each of the ten consecutive Trading Days ending on the day before the applicable record date.

(e) In the event the Company shall, in any calendar year, by dividend or otherwise, distribute
to all or substantially all holders of its Common Shares (the “Current Distribution”) (i) any
dividend or other distribution of cash, evidences of indebtedness, or any other assets or
properties (other than as described in Sections 3(a) through 3(c) above) or (ii) any options,
warrants or other rights to subscribe for or purchase any of the foregoing, with a fair value (as
determined in good faith by the Company’s Board of Directors) per Common Share that, when combined
with the aggregate amount per Common Share paid in respect of all other such distributions to all
or substantially all holders of its Common Shares within such calendar year, exceeds (1) for
calendar year 2003, the Initial Dividend (as defined below) or (2) for any subsequent calendar
year, an amount equal to the Initial Dividend increased at a rate of 10% per annum from January 1,
2003, compounded annually on December 31 of each year commencing in 2003 (such excess of the
Current Distribution being herein referred to as the “Excess Distribution Amount”), the per share
Exercise Price in effect immediately prior to the close of business on the date fixed for such
payment shall be reduced by the Excess Distribution Amount, such reduction to become effective
immediately prior to the opening of business on the day following the date fixed for such payment.
The “Initial Dividend” means the distributions described in items (i) and (ii) above per Common
Share paid by the Company to all or substantially all holders of its Common Shares during the 2003
calendar year as determined by the Company’s Board of Directors, up to a maximum of $0.44 per
Common Share.

(f) Whenever the number of Common Shares purchasable by RenRe upon the exercise of the RenRe
Option is adjusted, as herein provided, the Exercise Price shall be adjusted by multiplying the
Exercise Price immediately prior to such adjustment by a fraction, of which the numerator shall be
the number of RenRe Option Shares purchasable upon the exercise of the RenRe Option immediately
prior to such adjustment, and of which the denominator shall be the number of RenRe Option Shares
purchasable immediately thereafter (in each case, prior to giving effect to the payment of the
Exercise Price pursuant to Section 1(d) hereof).

(g) No adjustment in the number of RenRe Option Shares issuable upon the exercise of the RenRe
Option need be made under Section 3(b) and (c) if the Company issues or distributes, pursuant to
this Agreement, to RenRe the shares, rights, options, warrants, securities or assets referred to in
those Sections which RenRe would have been entitled to receive had the RenRe Option been exercised
prior to the happening of such event or the record date with respect thereto. Other than for
adjustments in the Cash Consideration (which are subject to Section 2(b) hereof), no adjustment
need be made for a change in the par value of the RenRe Option Shares.

(h) For the purpose of this Section 3, the term “Common Shares” shall mean (i) the class of
stock consisting of the Common Shares of the Company, or (ii) any other class of stock resulting
from successive changes or reclassification of such shares other than consisting solely of changes
in par value. In the event that at any time, as a result of an adjustment made pursuant to Section
3(a) above, RenRe will become entitled to receive any securities of the Company other than Common
Shares, thereafter the number of such other securities so receivable upon exercise of the RenRe
Option and the Exercise Price of such securities will be subject to adjustment from time to time in
a manner and on terms as nearly equivalent as practicable to the provisions with respect to the
RenRe Option Shares contained in Sections 3(a) through 3(f), inclusive, above; provided,
however, that the Exercise Price will at no time be less than the aggregate par value of
the Common Shares or other securities of the Company obtainable upon exercise of the RenRe Option.

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

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

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

4. The Company undertakes to use commercially reasonable efforts to increase (if necessary) its
authorized share capital to a level sufficient to satisfy any exercise of the RenRe Option.

5. (a) For so long as the RenRe Option is exercisable hereunder, each party hereto shall (i) use
its commercially reasonable efforts to obtain all authorizations, consents, orders and approvals of
all governmental authorities and officials that may be or become necessary for the performance of
its obligations pursuant to this Agreement and (ii) cooperate reasonably with the other party in
promptly seeking to obtain all such authorizations, consents, orders and approvals. The parties
hereto agree to cooperate reasonably, complete and file any joint applications for any
authorizations from any governmental authorities reasonably necessary or desirable to effectuate
the transactions contemplated by this Agreement. The parties hereto agree that they will keep each
other apprised of the status of matters relating to the exercise of the RenRe Option, including
reasonably promptly furnishing the other with copies of notices or other communications received by
the Company or RenRe, from all third parties and governmental authorities with respect to the RenRe
Option.

(b) For so long as the RenRe Option is exercisable, the Company and RenRe agree to reasonably
promptly prepare and file, if necessary, any filing under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended (the “HSR Act”) with the Federal Trade Commission (the “FTC”)
and the Antitrust Division of the Department of Justice (the “DOJ”) in order to enable RenRe to
exercise such RenRe Option pursuant to this Agreement. Each party hereby covenants to cooperate
reasonably with the other such party to the extent reasonably necessary to assist in making
reasonable supplemental presentations to the FTC or the DOJ, and, if requested by the FTC or the
DOJ, to reasonably promptly amend or furnish additional information thereunder.

(c) Any reasonable out-of-pocket costs and expenses arising in connection with actions taken
pursuant to this Section 5 shall be borne by RenRe.

6. (a) The RenRe Option and the RenRe Option Shares may not be assigned or otherwise transferred,
disposed of or encumbered by RenRe (or any subsequent transferee) in whole or in part except as
provided in this Section 6. Notwithstanding anything to the contrary in this Agreement, RenRe may,
at any time, assign or otherwise transfer, dispose or encumber the RenRe Option or the RenRe Option
Shares in whole or in part to any direct or indirect wholly owned subsidiary of RenRe, provided
that such transferee shall enter into an option agreement with the Company that is substantially
identical to this Agreement.

(b) In the event of a merger of RenRe into another person, or a sale, transfer or lease to
another person of all or substantially all the assets of RenRe, the RenRe Option or the RenRe
Option Shares may be transferred as part of such transaction to the other party to such
transaction.

(c) On and after November 1, 2004, RenRe may transfer the RenRe Option or the RenRe Option
Shares, in whole or in part, in one or more private transaction(s) to up to three institutional
accredited investors; provided, however, that any proposed transfer is conditioned
upon:

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

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

(A) that the transferee may not offer, sell, assign, pledge or otherwise
transfer the RenRe Option or any RenRe Option Shares except pursuant to an effective
registration statement under the Securities Act of 1933, as amended (the “Securities
Act”), covering such RenRe Option Shares or pursuant to an available exemption from
the registration requirements of the Securities Act and in compliance with all
applicable state securities laws;

(B) that the Company is entitled to decline to register any transfer (as
defined in the Company’s bye-laws) of RenRe Option Shares, and any transfer of RenRe
Option and RenRe Option Shares shall be void, unless (i) such transfer is made
pursuant to and in accordance with Rule 144 (provided that the Company (or
its designated agent for such purpose) may request a certificate satisfactory to it
of compliance by the transferor with the requirements of Rule 144), (ii) such
transfer is made pursuant to another available exemption from the registration
requirements of the Securities Act (provided that, if not already a party
hereto, the intended transferee agrees to abide by the provisions of this Section
6(c)(ii), and provided, further, that, if the Company requests, the
transferor first provides the Company (or such agent) with evidence satisfactory to
it, which may include an opinion of U.S. counsel satisfactory to the Company, to the
effect that such transfer is made pursuant to another available exemption from the
registration requirements of the Securities Act), (iii) such transfer is made
pursuant to an effective registration statement under the Securities Act covering
the RenRe Option Shares being transferred, including a registration statement filed
pursuant to the Transfer Restrictions, Registrations Rights and Standstill Agreement
dated November 1, 2002 between the Company and RenRe (the “Transfer Restrictions,
Registration Rights and Standstill Agreement”), and in all cases pursuant to this
clause (B) such transfer is in compliance with all applicable state securities laws
(the Company being entitled to waive or modify the foregoing transfer requirements,
generally or in any particular case, to the extent that it determines, on advice of
U.S. counsel, that compliance with such requirements is not necessary to ensure
compliance with the Securities Act or any applicable state securities laws, or such
modification is necessary to ensure compliance with the Securities Act or any
applicable state securities laws, as the case may be) and (iv) such transferee
agrees to be bound by the provisions of this Agreement;

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

THE COMMON SHARES EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED OR
OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE U.S. SECURITIES ACT OF 1933 (THE “SECURITIES ACT”) OR AN AVAILABLE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND COMPLIANCE WITH
APPLICABLE STATE SECURITIES LAWS. SUCH SHARES MAY NOT BE HELD IN BOOK-ENTRY FORM.
SUCH SHARES ARE ALSO SUBJECT TO RESTRICTIONS ON TRANSFER (AS DEFINED IN THE BYE-LAWS
OF THE COMPANY) SET FORTH IN THE TRANSFER RESTRICTIONS, REGISTRATION RIGHTS AND
STANDSTILL AGREEMENT, DATED NOVEMBER 1, 2002, BETWEEN PLATINUM UNDERWRITERS
HOLDINGS, LTD. (THE “COMPANY”) AND RENAISSANCERE HOLDINGS LTD., WHICH MAY REQUIRE,
AMONG OTHER THINGS, THE PRIOR RECEIPT BY THE COMPANY FROM THE TRANSFEROR OR THE
TRANSFEREE OF EVIDENCE SATISFACTORY TO IT, WHICH MAY INCLUDE AN OPINION OF U.S.
COUNSEL OR UNDERTAKINGS TO BE BOUND BY SUCH AGREEMENT. SUCH SHARES ARE ALSO SUBJECT
TO RESTRICTIONS IN THE BYE-LAWS OF THE COMPANY, INCLUDING RESTRICTIONS ON TRANSFER
AND VOTING INTENDED TO ENSURE THAT NO PERSON BECOMES OR IS DEEMED TO BECOME A 10%
SHAREHOLDER OF THE COMPANY (AS EXPLAINED IN SUCH BYE-LAWS).

(D) that the transferee shall become a party to the Transfer Restrictions,
Registration Rights and Standstill Agreement, with the attendant rights and
obligations thereunder; provided, further, that any proposed
transfer may be disapproved by the Board of Directors of the Company if, in their
reasonable judgment, they have reason to believe that such transfer may expose the
Company, any subsidiary thereof, any shareholder or any person ceding insurance to
the Company or any such subsidiary to adverse tax or regulatory treatment in any
jurisdiction. In connection with or following any transfer of RenRe Option Shares
in accordance with clause (i) or (iii) of Section 6(c)(ii)(B) (except in the case of
a transfer of RenRe Option Shares to an “affiliate” of RenRe, as such term is
defined in the Securities Act, in accordance with clause (i) of Section
6(c)(ii)(B)), and upon the surrender of any certificate or certificates representing
such RenRe Option Shares to the Company (or such agent), the Company shall cause to
be issued in exchange therefor a new certificate or certificates that represent the
same Common Shares and do not bear the Legend (or shall permit such shares to be
held in book-entry form). The Company shall use commercially reasonable efforts to
cause each RenRe Option Share transferred as contemplated by clause (i) or (iii) of
Section 6(c)(ii)(B) to be duly listed on each securities exchange, and to be
accepted for quotation in each interdealer quotation system, on or in which any
Common Shares are listed or quoted at the time of such transfer (provided
that the approval for such listing or quotation has been obtained by the Company),
in each case so that the RenRe Option Share so transferred will be freely
transferable on each such exchange and in each such system to the same extent as the
Common Shares then listed thereon or quoted therein; and

(E) such transferee shall not become a “10% Shareholder” (as defined below in
this Section 6(c)) immediately after such transfer (assuming for purposes of this
determination that the RenRe Option Shares were actually owned by the transferee);
and

(iii) such transfer not resulting, directly or indirectly, in a transfer to any
Specified Person (as defined below) of more than 9.9% of the Common Shares outstanding at
the time of such transfer, or the right to acquire pursuant to the RenRe Option more than
9.9% of the Common Shares outstanding at the time of such transfer, except in the following
circumstances: (A) in connection with any tender offer or exchange offer made to all holders
of outstanding Common Shares; (B) to any Wholly Owned Subsidiary (as defined in the Transfer
Restrictions, Registration Rights and Standstill Agreement) of RenRe provided that
such Wholly Owned Subsidiary agrees in writing with the Company to the same transfer
restrictions as are contained in this Section 6(c); or (C) a transfer by operation of law
upon consummation of a merger or consolidation of RenRe into another Person (as defined in
the Investment Agreement). For purposes of this Section 6(c)(iii), “Specified Person” means
any Person that generates 50% or more of its gross revenue in its most recent fiscal year
for which financial statements are available by writing property or casualty insurance or
reinsurance.

As used herein, “10% Shareholder” means a person who owns, in aggregate, (i) directly, (ii) with
respect to persons who are United States persons, by application of the attribution and
constructive ownership rules of Sections 958(a) and 958(b) of the Code or (iii) beneficially,
directly or indirectly, within the meaning of Section 13(d)(3) of the United States Securities
Exchange Act of 1934, issued shares of the Company carrying 10% or more of the total combined
voting rights attaching to all issued shares.

(d) In connection with any proposed transfer of all or a portion of the RenRe Option pursuant
to Section 6(c), the Company shall prepare an option agreement (or, in the case of a partial
transfer, option agreements) substantially identical to this Agreement with the transferee (and
transferor, in the case of partial transfer) upon surrender to the Company of the existing option
agreement prior to the consummation of the transfer. Upon the execution of such option agreement by
the transferee and the Company and the consummation of the transfer, the transferee shall have such
rights and obligations with respect to the number of RenRe Option Shares covered by the portion of
the RenRe Option transferred to such transferee as the rights and obligations of RenRe to such
portion hereunder.

(e) Any transferee of all or part of the RenRe Option pursuant to Section 6(c) hereof (or any
subsequent transferee who holds any portion of the RenRe Option as a result of a transfer pursuant
to this Section 6(e)) may transfer, in whole but not in part, the RenRe Option to a subsequent
transferee; provided that any such transfer shall be subject to the terms and conditions
set forth in Sections 6(c) and 6(d) hereof.

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

8. This Agreement may not be amended except in a written instrument signed by the Company and
RenRe.

9. All notices, requests, claims, demands and other communications hereunder shall be in writing
and shall be given by facsimile and by e-mail transmission addressed as follows (or to such other
address as a party may designate by written notice to the others) and shall be deemed given on the
date on which such notice is received:

	 	 	 
	If to RenRe:

	 	

	 
	 	 
	RenaissanceRe Holdings Ltd.

	 
	 	 
	Renaissance House

8-12 East Broadway

Pembroke HM 19 Bermuda

Attention:

	 	

Stephen H. Weinstein

	 	 	 
	General Counsel

Facsimile:

E-mail:

	 	

(441) 296-5037

shw@renre.com

	 	 	 
	with a copy to:

	 	

	John S. D’Alimonte

	 	

	 
	 	 
	Willkie Farr & Gallagher

	 
	 	 
	787 Seventh Avenue

	 	

	 
	 	 
	New York, New York 10019

	 
	 	 
	Facsimile:

E-mail:

	 	(212) 728-8111

jd’alimonte@willkie.com

	 	 	 
	If to the Company:

	 	

	 
	 	 
	Platinum Underwriters Holdings, Ltd.

	 
	 	 
	The Belvedere Building

69 Pitts Bay Road

Pembroke HM08

Bermuda

Attention:

	 	

Michael E. Lombardozzi

	 	 	 
	Executive Vice President, General Counsel

	 
	 	 
	and Secretary

Facsimile:

E-mail:

	 	

(441) 292-4720

mlombardozzi@platinumre.com

	 	 	 
	with a copy to:

	 	

	Linda E. Ransom

Dewey Ballantine LLP

	 	

	 
	 	 
	1301 Avenue of the Americas

	 
	 	 
	New York, New York 10019

Facsimile:

E-mail:

	 	

(212) 259-6333

lransom@dbllp.com

10. This Agreement, the Transfer Restrictions, Registration Rights and Standstill Agreement (which,
for the avoidance of doubt, shall apply to any Common Share issued under this Agreement in the same
manner as to any Common Shares that were issuable the Option Agreement) and the Investment
Agreement constitute the entire agreement between the parties hereto with respect to the subject
matter hereof and supersede all prior agreements and understandings, oral and written, between the
parties hereto with respect to the subject matter hereof.

11. This Agreement shall inure to the benefit of and be binding upon the parties hereto, and their
respective successors and permitted assigns. Nothing in this Agreement, expressed or implied, is
intended to confer on any person other than the parties hereto, and their respective successors and
permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this
Agreement.

12. This Agreement may not be assigned by any party hereto, except to a party to whom RenRe
transfers the RenRe Option or RenRe Option Shares in accordance with Section 6 of this Agreement or
Section 2 of the Transfer Restrictions, Registration Rights and Standstill Agreement, and then only
in accordance with those sections.

13. The headings contained in this Agreement are for convenience only and do not affect the meaning
or interpretation of this Agreement.

14. (a) This Agreement shall be governed by, and construed in accordance with, the law of the State
of New York (without regard to principles of conflict of laws).

(b) The parties hereto shall promptly submit any dispute, claim, or controversy arising out of
or relating to this Agreement, including effect, validity, breach, interpretation, performance, or
enforcement (collectively, a “Dispute”) to binding arbitration in New York, New York at the offices
of Judicial Arbitration and Mediation Services, Inc. (“JAMS”) before an arbitrator (the
“Arbitrator”) in accordance with JAMS’ Comprehensive Arbitration Rules and Procedures and the
Federal Arbitration Act, 9 U.S.C. §§ 1 et seq. The Arbitrator shall be a former judge selected
from JAMS’ pool of neutrals. The parties agree that, except as otherwise provided herein
respecting temporary or preliminary injunctive relief, binding arbitration shall be the sole means
of resolving any Dispute. Judgment on any award of the Arbitrators may be entered by any court of
competent jurisdiction.

(c) The costs of the arbitration proceeding and any proceeding in court to confirm or to
vacate any arbitration award or to obtain temporary or preliminary injunctive relief as provided in
Section 14(d) below, as applicable (including, without limitation, actual attorneys’ fees and
costs), shall be borne by the unsuccessful party and shall be awarded as part of the Arbitrator’s
decision, unless the Arbitrator shall otherwise allocate such costs in such decision.

(d) This Section 14 shall not prevent the parties hereto from seeking or obtaining temporary
or preliminary injunctive relieve in a court for any breach or threatened breach of any provision
hereof pending the hearing before and determination of the Arbitrator. The parties hereby agree
that they shall continue to perform their obligations under this Agreement pending the hearing
before and determination of the Arbitrator, it being agreed and understood that the failure to so
provide will cause irreparable harm to the other party hereto and that the putative breaching party
has assumed all of the commercial risks associated with such breach or threatened breach of any
provision hereof by such party.

(e) The parties agree that the State and Federal courts in The City of New York shall have
jurisdiction for purposes of enforcement of their agreement to submit Disputes to arbitration and
of any award of the Arbitrator.

2

IN WITNESS WHEREOF, each of the parties hereto has caused this AGREEMENT to be duly executed
by a duly authorized officer as of the date and year first above written.

PLATINUM UNDERWRITERS

HOLDINGS, LTD.

	 	 	 	By:
/s/ Gregory E.A. Morrison

	 	 	 	Name: Gregory E.A. Morrison

Title: President and Chief Executive

Officer

RENAISSANCERE HOLDINGS LTD.

	 	 	 	By:
/s/ John D. Nichols Jr.

	 	 	 	Name: John D. Nichols Jr.

Title: Executive Vice President

3

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