Document:

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                                                                   Exhibit 10.11

                           CASTLEWOOD HOLDINGS LIMITED

                           2006 EQUITY INCENTIVE PLAN
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                                TABLE OF CONTENTS
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SECTION 1 -    PURPOSE......................................................1

SECTION 2 -    DEFINITIONS..................................................1

SECTION 3 -    ADMINISTRATION...............................................4

SECTION 4 -    STOCK........................................................6

SECTION 5 -    GRANTING OF AWARDS...........................................7

SECTION 6 -    TERMS AND CONDITIONS OF OPTIONS..............................7

SECTION 7 -    SARS........................................................10

SECTION 8 -    RESTRICTED STOCK............................................11

SECTION 9 -    RSUs........................................................13

SECTION 10 -   OTHER AWARDS................................................14

SECTION 11 -   AWARD AGREEMENTS............................................15

SECTION 12 -   ADJUSTMENT IN CASE OF CHANGES IN COMMON SHARES..............15

SECTION 13 -   CHANGE IN CONTROL...........................................16

SECTION 14 -   ALTERNATIVE AWARDS..........................................17

SECTION 15 -   AMENDMENT OF THE PLAN AND OUTSTANDING AWARDS................18

SECTION 16 -   TERMINATION OF PLAN; CESSATION OF ISO GRANTS................19

SECTION 17 -   MISCELLANEOUS...............................................19

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                           CASTLEWOOD HOLDINGS LIMITED
                           2006 EQUITY INCENTIVE PLAN

                              SECTION 1 - PURPOSE

     The Plan is intended to provide a means whereby the Company may, through
the grant of Awards to Employees, Consultants and Non-Employee Directors,
attract and retain such individuals and motivate them to exercise their best
efforts on behalf of the Company and of any Related Corporation.

                            SECTION 2 - DEFINITIONS

     The following terms, when used herein, shall have the following meanings
unless otherwise required by the context:

     (a) "APPROVED RETIREMENT" shall mean termination of a Grantee's employment
(i) on or after having met the conditions for normal or early retirement
established under any defined benefit pension plan maintained by the Company or
a Related Corporation and in which the Grantee participates or (ii) on or after
attaining such age not less than 65 and completing such period of service, as
the Committee shall determine from time to time. Notwithstanding the foregoing,
the term "Approved Retirement" shall not apply to any Grantee whose employment
with the Company or a Related Corporation has been terminated for Cause, whether
or not such individual is deemed to be retirement eligible or is receiving
retirement benefits under any defined benefit pension plan maintained by the
Company or a Related Corporation and in which the Grantee participates or would
otherwise satisfy the criteria set forth by the Committee as noted in the
preceding sentence.

     (b) "AWARD" shall mean an ISO, NQSO, Performance Share, PSU, SAR,
Restricted Stock, RSU, Bonus Share, or Dividend Equivalents, awarded under the
Plan by the Company to an Employee, a Consultant or a Non-Employee Director.

     (c) "AWARD AGREEMENT" shall mean a written document evidencing the grant of
an Award, as described in Section 11.

     (d) "BOARD" shall mean the Board of Directors of the Company.

     (e) "BONUS SHARES" shall mean a grant of unrestricted Common Shares
pursuant to Section 10(a).

     (f) "CAUSE" shall mean (a) fraud or dishonesty that results in a material
injury to the Company or any Related Corporation, (b) conviction or plea of nolo
contendre of any felony or (c) any act or omission detrimental to the conduct of
the business of the Company or any Related Corporation in any way.

     (g) "CODE" shall mean the United States Internal Revenue Code of 1986, as
amended, including, for these purposes, any regulations promulgated by the
Internal Revenue Service with respect to the provisions of the Code, and any
successor thereto.

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     (h) "COMMITTEE" shall mean the Compensation Committee of the Board or such
other committee of the Board as the Board shall designate from time to time,
which committee shall consist solely of not fewer than two directors of the
Company, each of whom shall be appointed by and serve at the pleasure of the
Board, and each of whom are intended to be a "Non-Employee Director" within the
meaning of Rule 16b-3 of the Exchange Act, an "outside director" within the
meaning of Section 162(m) of the Code and an "independent director" within the
meaning of Nasdaq Marketplace Rule 4200(a)(15), or any successors thereto.

     (i) "COMMON SHARES" shall mean the ordinary shares of the Company.

     (j) "COMPANY" shall mean Castlewood Holdings Limited, a Bermuda
corporation.

     (k) "CONSULTANT" shall mean an individual who is not an Employee or a
Non-Employee Director and who has entered into a consulting arrangement with the
Company or a Related Corporation to provide bona fide services that (i) are not
in connection with the offer or sale of securities in a capital-raising
transaction, and (ii) do not directly or indirectly promote or maintain a market
for the Company's securities.

     (l) "COVERED EMPLOYEE" shall mean any Employee who is a "covered employee"
within the meaning of Code section 162(m).

     (m) "DIVIDEND EQUIVALENTS" shall mean the right to receive an amount equal
to the regular cash dividends paid by the Company upon one Common Share which is
awarded to a Grantee in accordance with Section 9(e) or Section 10(b) of the
Plan.

     (n) "EMPLOYEE" shall mean an officer or other employee of the Company or a
Related Corporation.

     (o) "EXCHANGE ACT" shall mean the United States Securities Exchange Act of
1934, as amended.

     (p) "FAIR MARKET VALUE" shall mean the following, arrived at by a good
faith determination of the Committee:

          (1) the closing price of the Common Shares on a registered securities
exchange or an over-the-counter market on the applicable date; or

          (2) such other method of determining fair market value that complies
with Code Sections 422 and 409A and that is adopted by the Committee.

     (q) "GRANTEE" shall mean an Employee, a Consultant or a Non-Employee
Director who has been granted an Award under the Plan.

     (r) "ISO" shall mean an Option which, at the time such Option is granted,
qualifies as an incentive stock option within the meaning of Code Section 422
and is designated as an ISO in the applicable Award Agreement.

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     (s) "NON-EMPLOYEE DIRECTOR" shall mean a director of the Company who is not
an Employee.

     (t) "NQSO" shall mean an Option which, at the time such Option is granted,
does not qualify as an ISO (whether or not it is designated as an ISO in the
applicable Award Agreement) or is not designated an ISO in the applicable Award
Agreement.

     (u) "OPTIONS" shall mean ISOs and NQSOs which entitle the Grantee on
exercise thereof to purchase Common Shares at a specified exercise price for a
specified period of time.

     (v) "PERFORMANCE GOALS" shall mean the goal or goals applicable to a
Grantee's Performance Stock or PSUs that are deemed by the Committee to be
important to the success of the Company or any of its Related Corporations. The
Committee shall establish the specific measures for each applicable goal for a
Performance Period, which need not be uniform with respect to each Grantee. In
creating these measures, the Committee shall use one or more of the following
business criteria: revenues, profit, consolidated net after-tax profit, income
from operations, return on assets, return on net assets, return on equity,
return on capital, market price appreciation of Common Shares, economic value
added, total shareholder return, net income, pre-tax income, earnings per share,
operating profit margin, net income margin, cash flow, market share, revenue
growth, net revenue growth, net income growth, expense control and hiring of
personnel. The business criteria may apply to the individual, a division, or to
the Company and/or one or more Related Corporations and may be weighted and
expressed in absolute terms or relative to the performance of other individuals
or companies or an index.

     (w) "PERFORMANCE PERIOD" shall mean the period, not to exceed five (5)
years, selected by the Committee during which the performance of the Company or
any Related Corporation or unit thereof or any individual is measured for the
purpose of determining the extent to which an Award subject to Performance Goals
has been earned.

     (x) "PERFORMANCE STOCK" shall mean a type of Restricted Stock, where the
lapse of restrictions is based on the actual achievement of Performance Goals.

     (y) "PLAN" shall mean the Castlewood Holdings Limited 2006 Equity Incentive
Plan as set forth herein and as amended from time to time.

     (z) "PSU" shall mean a performance stock unit which is a type of RSU, the
vesting of which is based on the actual achievement of Performance Goals.

     (aa) "RELATED CORPORATION" shall mean each "subsidiary corporation" of the
Company, as defined in Code Section 424(f).

     (bb) "RESTRICTED PERIOD" shall mean the period of time during which RSUs or
shares of Restricted Stock are subject to forfeiture or restrictions on transfer
(if applicable) pursuant to Sections 8 and 9 of the Plan.

     (cc) "RESTRICTED STOCK" shall mean Common Shares subject to restrictions
determined by the Committee pursuant to Section 8.

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     (dd) "RSU" shall mean a restricted stock unit granted pursuant to Section
9.

     (ee) "SAR" shall mean an Award entitling the recipient on exercise to
receive an amount, in cash or Common Shares or in a combination thereof (such
form to be determined by the Committee at or after grant, including after
exercise of the SAR), determined by reference to appreciation in the value of
Common Shares.

     (ff) "TERMINATION OF SERVICE" shall mean (i) with respect to an Award
granted to an Employee, the termination of the employment relationship between
the Employee and the Company and all Related Corporations; (ii) with respect to
an Award granted to a Consultant, the termination of the consulting or advisory
arrangement between the Consultant and the Company and all Related Corporations;
and (iii) with respect to an Award granted to a Non-Employee Director, the
cessation of the provision of services as a director of the Company and all
Related Corporations; provided, however, that if the Grantee's status changes
from Employee, Consultant or Non-Employee Director to any other status eligible
to receive an Award under the Plan, the Committee may provide that no
Termination of Service occurs for purposes of the Plan until the Grantee's new
status with the Company and all Related Corporations terminates. For purposes of
this paragraph, if a Grantee is an Employee, Consultant or Non-Employee Director
of a Related Corporation and not the Company, the Grantee shall incur a
Termination of Service when such corporation ceases to be a Related Corporation,
unless the Committee determines otherwise. A Termination of Service shall not be
deemed to have resulted by reason of a bona fide leave of absence approved by
the Committee.

                           SECTION 3 - ADMINISTRATION

     (a) POWER TO GRANT. The Plan shall be administered by the Committee. Each
member of the Committee, while serving as such, shall be deemed to be acting in
his or her capacity as a director of the Company. Grantees shall be those
Employees, Consultants and Non-Employee Directors designated by the affirmative
action of the Committee (or its delegate) to participate in the Plan. The
Committee shall have full authority, subject to the terms of the Plan, to select
the Employees, Consultants and Non-Employee Directors to be granted Awards under
the Plan and the terms and conditions of any and all Awards including, but not
limited to, (i) the number of Common Shares to be covered by each Award; (ii)
the time or times at which Awards shall be granted; (iii) the terms and
provisions of the instruments by which Options may be evidenced, including the
designation of Options as ISOs or NQSOs; (iv) the determination of the period of
time during which restrictions on Restricted Stock or RSUs shall remain in
effect; (v) the establishment and administration of any Performance Goals and
Performance Periods applicable to Awards granted under the Plan; and (vi) the
development and implementation of specific stock-based programs for the Company
and any Related Corporation that are consistent with the intent and specific
terms of the framework created by this Plan. Appropriate officers of the Company
or any Related Corporation may suggest to the Committee the Employees,
Consultants and Non-Employee Directors who should receive Awards, which the
Committee may accept or reject in its sole discretion. The Committee shall
determine the terms and conditions of each Award at the time of grant. The
Committee may establish different terms and conditions for different Grantees
and for the same Grantee for each Award such Grantee may receive, whether or not
granted at different times.

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     (b) RULES, INTERPRETATIONS AND DETERMINATIONS. The Committee may correct
any defect, supply any omission, and reconcile any inconsistency in the Plan and
in any Award granted hereunder, in the manner and to the extent it deems
desirable. The Committee also shall have the authority (1) to establish such
rules and regulations, not inconsistent with the provisions of the Plan, for the
proper administration of the Plan, and to amend, modify, or rescind any such
rules and regulations, (2) to adopt modifications, amendments, procedures,
sub-plans and the like, which may be inconsistent with the provisions of the
Plan, as are necessary to comply with the laws and regulations of other
countries in which the Company operates in order to assure the viability of
Awards granted under the Plan to individuals in such other countries, and (3) to
make such determinations and interpretations under, or in connection with, the
Plan, as it deems necessary or advisable. All such rules, regulations,
determinations, and interpretations shall be binding and conclusive upon the
Company, its shareholders, and all Grantees, upon their respective legal
representatives, beneficiaries, successors, and assigns, and upon all other
persons claiming under or through any of them. The Committee's determinations
under the Plan (including the determination of the Employees, Consultants and
Non-Employee Directors to receive Awards, the form, amount and timing of such
Awards, the terms and provisions of such Awards and the agreements hereunder)
may vary, and need not be uniform, whether or not any such Employees,
Consultants and Non-Employee Directors could be deemed to be similarly situated.
Except as otherwise required by the by-laws of the Company or by applicable law,
no member of the Board or the Committee shall be liable for any action or
determination made in good faith with respect to the Plan or any Award granted
under it.

     (c) 409A COMPLIANCE. The Plan is intended to be administered in a manner
consistent with the requirements, where applicable, of Section 409A of the Code.
Where reasonably possible and practicable, the Plan shall be administered in a
manner to avoid the imposition on Employees, Consultants and Non-Employee
Directors of immediate tax recognition and additional taxes pursuant to such
Section 409A. To that end, and without limiting the generality of the foregoing,
unless otherwise expressly provided herein or in any Award Agreement, any amount
payable or shares distributable hereunder in connection with the vesting of any
Award (including upon the satisfaction of any applicable performance criteria)
shall be paid not later than two and one-half months (or such other time as is
required to cause such amounts not to be treated as deferred compensation under
Section 409A of the Code) following the end of the taxable year of the Company
or the Employee, Consultant and Non-Employee Director in which the Employee's,
Consultant's or Non-Employee Director's (as applicable) rights with respect to
the corresponding Award (or portion thereof) ceased to be subject to a
substantial risk of forfeiture. Notwithstanding the foregoing, neither the
Company nor the Committee shall have any liability to any person in the event
such Section 409A applies to any such Award in a manner that results in adverse
tax consequences for the Employee, Consultant or Non-Employee Director or any of
his beneficiaries or transferees.

     (d) PERFORMANCE BASED COMPENSATION INTERPRETATIONS; LIMITATIONS ON
DISCRETION. Notwithstanding anything contained in the Plan to the contrary, to
the extent the Committee has required upon grant that any Performance Stock or
PSU must qualify as "other performance based compensation" within the meaning of
Section 162(m)(4)(c) of the Code, the Committee shall (i) specify and approve
the specific terms of any Performance Goals with respect to such Awards in
writing no later than ninety (90) days from the commencement of the

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Performance Period to which the Performance Goal or Goals relate, and (ii) not
be entitled to exercise any subsequent discretion otherwise authorized under the
Plan (such as the right to authorize payout at a level above that dictated by
the achievement of the relevant Performance Goals) with respect to such Award if
the ability to exercise discretion (as opposed to the exercise of such
discretion) would cause such Award to fail to qualify as other performance based
compensation.

                               SECTION 4 - STOCK

     The maximum aggregate number of Common Shares that may be delivered under
the Plan is One Million Two Hundred Thousand (1,200,000) shares (which is also
the maximum aggregate number of shares that may be issued under the Plan through
Options, SARs, Restricted Stock, RSUs and Bonus Shares), subject to the
following limits:

     (a) The aggregate number of Common Shares subject to Options granted to an
Employee during any calendar year under the Plan shall not exceed One Hundred
Twenty Thousand (120,000) shares;

     (b) The aggregate number of Common Shares subject to SARs granted to an
Employee during any calendar year under the Plan shall not exceed One Hundred
Twenty Thousand (120,000) shares; and

     (c) The aggregate number of Common Shares subject to Performance Stock and
PSUs granted to an Employee during any calendar year under the Plan shall not
exceed One Hundred Twenty Thousand (120,000) shares.

     (d) The aggregate number of Common Shares subject to Bonus Shares granted
to an Employee under the Plan shall not exceed One Hundred Twenty Thousand
(120,000) shares.

     This limit shall be subject to adjustment, as described in Section 12.
Shares delivered under the Plan may be authorized but unissued shares or
reacquired shares, and the Company may purchase shares required for this
purpose, from time to time, if it deems such purchase to be advisable.

     If any Award expires, terminates for any reason, is cancelled, is forfeited
or is settled in cash rather than Common Shares, the number of Common Shares
with respect to which such Award expired, terminated, was cancelled, was
forfeited or was settled in cash, shall continue to be available for future
Awards granted under the Plan. However, if an Option or SAR is cancelled, or a
PSU is settled for cash, the Common Shares covered by (i) the cancelled Option
or SAR shall be counted against the maximum number of shares specified above for
Options and SARs, and (ii) the cash-settled PSU shall be counted against the
maximum number of shares specified above for PSUs and Performance Stock, in each
case, that may be granted to a single Employee. If any Option is exercised by
surrendering Common Shares to the Company as full or partial payment or if tax
withholding requirements are satisfied by withholding Common Shares to the
Company, only the number of shares issued net of Common Shares withheld or

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surrendered shall be deemed delivered for purposes of determining the maximum
number of shares available for grant under the Plan.

                         SECTION 5 - GRANTING OF AWARDS

     The Committee may, on behalf of the Company, grant to Employees,
Consultants and Non-Employee Directors such Awards as it, in its sole
discretion, determines are warranted. More than one Award may be granted to an
Employee, Consultant or Non-Employee Director under the Plan.

                  SECTION 6 - TERMS AND CONDITIONS OF OPTIONS

     Subject to the provisions of Section 4, Options may be granted to Grantees
at such time or times as shall be determined by the Committee. Except as
otherwise provided herein, the Committee shall have complete discretion in
determining the number of Options, if any, to be granted to a Grantee, except
that ISOs may only be granted to Employees who satisfy the requirements for
eligibility set forth under Code Section 424. The date of grant of an Option
under the Plan will be the date on which the Option is awarded by the Committee
or, if so determined by the Committee, the date on which occurs any event
(including, but not limited to, the completion of an individual or corporate
Performance Goal) the occurrence of which is an express condition precedent to
the grant of the Option. Subject to Section 4, the Committee shall determine the
number of Options, if any, to be granted to the Grantee. Each Option grant shall
be evidenced by an Award Agreement that shall specify the type of Option granted
and such other terms and conditions as the Committee shall determine which are
not inconsistent with the provisions of the Plan. Options may be granted in
tandem with SARs (as described in more detail in Section 7); provided, however,
that grants of ISOs shall not be granted in tandem with any other Awards.

     (a) NUMBER OF SHARES. The Award Agreement shall state the number of Common
Shares to which the Option pertains.

     (b) EXERCISE PRICE. The Award Agreement shall state the exercise price
which shall be determined and fixed by the Committee in its discretion, but the
exercise price shall not be less than the higher of 100 percent (110 percent in
the case of an ISO granted to a more-than-ten-percent shareholder, as provided
in subsection (i) below) of the Fair Market Value of the Common Shares subject
to the Option on the date the Option is granted or the par value thereof. Except
as a result of any Adjustment Event as defined in Section 12, the Committee
shall not have the power or authority to reduce, whether through amendment or
otherwise, the exercise price of any outstanding Option nor to grant any new
Options or other Awards in substitution for or upon the cancellation of Options
previously granted which shall have the effect of reducing the exercise price of
any outstanding Option.

     (c) TERM. The term of each Option shall be determined by the Committee, in
its discretion; provided, however, that the term of each Option shall be not
more than ten years from the date of grant (with respect to an ISO, five years
in the case of a more-than-ten-percent shareholder (as provided in subsection
(g) below) from the date of grant of the ISO). Each Option shall be subject to
earlier termination as provided in subsections (f) below.

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     (d) EXERCISE. Unless the Committee shall determine otherwise at the time of
grant, one-third (1/3) of each Option granted pursuant to the Plan shall become
exercisable on each of the first three (3) anniversaries of the date such Option
is granted; provided that the Committee may establish performance-based criteria
for exercisability of any Option. The Committee may accelerate the exercise date
of an outstanding Option, in its discretion, if the Committee deems such
acceleration to be desirable.

     Any exercisable Option may be exercised at any time up to the expiration or
termination of the Option. Exercisable Options may be exercised, in whole or in
part and from time to time, by giving notice of exercise to the Company at its
principal office, specifying the number of shares to be purchased and
accompanied by payment in full of the aggregate exercise price for such shares
(except that, in the case of an exercise arrangement approved by the Committee
and described in paragraph (4) below, payment may be made as soon as practicable
after the exercise). Only full shares shall be issued, and any fractional share
which might otherwise be issuable upon exercise of an Option shall be forfeited.

     The Committee, in its sole discretion, shall determine from the
alternatives set forth in paragraphs (1) through (5) the methods by which the
exercise price may be paid. To the extent an Award Agreement does not include
one or more alternative, the Committee hereby specifically reserves the right to
exercise its discretion to allow the Grantee to pay the exercise price using
such alternative:

          (1) in cash or, if permitted by the Committee, its equivalent;

          (2) in Common Shares previously acquired by the Grantee;

          (3) in Common Shares newly acquired by the Grantee upon exercise of
     such Option (which shall constitute a disqualifying disposition in the case
     of an ISO);

          (4) by delivering a properly executed notice of exercise of the Option
     to the Company and a broker, with irrevocable instructions to the broker
     promptly to deliver to the Company the amount necessary to pay the exercise
     price of the Option; or

          (5) in any combination of paragraphs (1), (2), (3) and (4) above.

In the event the exercise price is paid, in whole or in part, with Common
Shares, the portion of the exercise price so paid shall be equal to the
aggregate Fair Market Value (determined as of the date of exercise of the
Option) of the Common Shares used to pay the exercise price.

     (e) ISO ANNUAL LIMIT. The aggregate Fair Market Value (determined as of the
date the ISO is granted) of the Common Shares with respect to which ISOs are
exercisable for the first time by an Employee during any calendar year (counting
ISOs under this Plan and under any other stock option plan of the Company or a
Related Corporation) shall not exceed $100,000. If an Option intended as an ISO
is granted to an Employee and the Option may not be treated in whole or in part
as an ISO pursuant to the $100,000 limit, the Option shall be treated as an ISO
to the extent it may be so treated under the limit and as an NQSO as to the
remainder.

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For purposes of determining whether an ISO would cause the limitation to be
exceeded, ISOs shall be taken into account in the order granted.

     (f) TERMINATION OF SERVICE. Unless otherwise determined by the Committee at
the time of grant and sets forth in the Award Agreement:

          (1) FOR CAUSE. If a Grantee's Termination of Service occurs prior to
     the expiration date fixed for his or her Options for Cause, any Options
     granted to such Grantee that are then not yet exercised shall be forfeited
     at the time of such termination and shall not be exercisable thereafter and
     the Committee may require that such Grantee disgorge any profit, gain or
     other benefit received in respect of the exercise of any such Award for a
     period of up to twelve (12) months prior to the Grantee's Termination of
     Service for Cause.

          (2) APPROVED RETIREMENT. If a Grantee's Termination of Service occurs
     prior to the expiration date fixed for his or her Option by reason of
     Approved Retirement, such Option may be exercised by the Grantee at any
     time prior to the earlier of (i) the expiration date specified in the Award
     Agreement, or (ii) one year after the date of such Termination of Service.
     Such Option may be exercised to the extent of the number of shares with
     respect to which the Grantee could have exercised it on the date of such
     Termination of Service, or to any greater extent permitted by the
     Committee, and shall terminate with respect to the remaining shares.

          (3) TERMINATION OF SERVICE FOR A REASON OTHER THAN FOR CAUSE, APPROVED
     RETIREMENT, DEATH OR DISABILITY. If a Grantee's Termination of Service
     occurs prior to the expiration date fixed for his or her Option for any
     reason other than for Cause, Approved Retirement, death or disability, such
     Option may be exercised by the Grantee at any time prior to the earlier of
     (i) the expiration date specified in the Award Agreement, or (ii) three
     months after the date of such Termination of Service. Such Option may be
     exercised to the extent of the number of shares with respect to which the
     Grantee could have exercised it on the date of such Termination of Service,
     or to any greater extent permitted by the Committee, and shall terminate
     with respect to the remaining shares.

          (4) DISABILITY. If a Grantee becomes disabled (within the meaning of
     Code Section 22(e)(3)) prior to the expiration date fixed for his or her
     Option, and the Grantee's Termination of Service occurs as a consequence of
     such disability, such Option may be exercised by the Grantee at any time
     prior to the earlier of (i) the expiration date specified in the Award
     Agreement, or (ii) one year after the date of such Termination of Service.
     Such Option may be exercised to the extent of the number of shares with
     respect to which the Grantee could have exercised it on the date of such
     Termination of Service, or to any greater extent permitted by the
     Committee, and shall terminate with respect to the remaining shares. In the
     event of the Grantee's legal disability, such Option may be exercised by
     the Grantee's legal representative.

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          (5) DEATH. Unless otherwise determined by the Committee at the time of
     grant and set forth in the Award Agreement, if a Grantee's Termination of
     Service occurs as a result of death, prior to the expiration date fixed for
     his or her Option, or if the Grantee dies following his or her Termination
     of Service but prior to the expiration of the period determined under
     subsections (2), (3) or (4) above (including any extension of such period
     provided in the Award Agreement), such Option may be exercised by the
     Grantee's estate, personal representative, or beneficiary who acquired the
     right to exercise such Option by bequest or inheritance or by reason of the
     death of the Grantee. Such post-death exercise may occur at any time prior
     to the earlier of (i) the expiration date specified in the Award Agreement,
     or (ii) one year after the date of the Grantee's death. Such Option may be
     exercised to the extent of the number of shares with respect to which the
     Grantee could have exercised it on the date of his or her death, or to any
     greater extent permitted by the Committee, and shall terminate with respect
     to the remaining shares.

     (g) MORE-THAN-TEN-PERCENT SHAREHOLDER. If, after applying the attribution
rules of Code Section 424(d), the Grantee owns stock possessing more than ten
percent of the total combined voting power of all classes of stock of the
Company or of a Related Corporation immediately before an ISO is granted to him
or her, the exercise price for the ISO shall be not less than 110 percent of the
Fair Market Value of the optioned Common Shares on the date the ISO is granted,
and such ISO, by its terms, shall not be exercisable after the expiration of
five years from the date the ISO is granted. The conditions set forth in this
subsection shall not apply to NQSOs.

                                SECTION 7 - SARS

     (a) NATURE OF SARS. An SAR entitles the Grantee to receive, with respect to
each Common Share as to which the SAR is exercised, the excess of the share's
Fair Market Value on the date of exercise over its Fair Market Value on the date
the SAR was granted. Such excess shall be paid in cash, Common Shares, or a
combination thereof, as determined by the Committee. SARs may be granted to any
Employee, Consultant or Non-Employee Director, all Employees, Consultants or
Non-Employee Directors or any class of Employees, Consultants or Non-Employee
Directors at such time or times as shall be determined by the Committee. SARs
may be granted in tandem with an Option or on a freestanding basis, not related
to any other Award. A grant of a SAR shall be evidenced in writing, whether as
part of the agreement governing the terms of the Option, if any, to which such
SARs relate or pursuant to a separate Award Agreement with respect to
freestanding SARs, in each case containing such provisions not inconsistent with
the Plan as the Committee shall approve.

     (b) EXERCISE OF SARS. Unless the Committee shall determine otherwise at the
time of grant, one-third (1/3) of each SAR granted pursuant to the Plan shall
become exercisable on each of the first three (3) anniversaries of the date such
SAR is granted; provided that the Committee may establish performance-based
criteria for exercisability of any SAR. The Committee may at any time accelerate
the time at which all or any part of the SAR may be exercised. Any exercise of
an SAR must be in writing, signed by the proper person, and delivered or mailed
to the Company, accompanied by any other documents required by the Committee.

                                      -10-
<PAGE>
     (c) OTHER TERMS. Unless the Committee shall otherwise determine, the terms
and conditions (including, without limitation, the exercise period of the SAR,
the vesting schedule applicable thereto and the impact of any termination of
service on the Grantee's rights with respect to the SAR) applicable with respect
to (i) SARs granted in tandem with an Option shall be substantially identical
(to the extent possible taking into account the differences related to the
character of the SAR) to the terms and conditions applicable to the tandem
Options and (ii) freestanding SARs shall be substantially identical (to the
extent possible taking into account the differences related to the character of
the SAR) to the terms and conditions that would have been applicable under
Section 6 were the grant of the SARs a grant of an Option. SARs that are granted
in tandem with an Option may only be exercised upon the surrender of the right
to exercise such Option for an equivalent number of shares and may be exercised
only with respect to the shares of Stock for which the related Award is then
exercisable.

                          SECTION 8 - RESTRICTED STOCK

     (a) GENERAL REQUIREMENTS. The Committee, in its sole discretion, may make
Awards to grantees of Restricted Stock. Any Award made hereunder of Restricted
Stock shall be subject to the terms and conditions of the Plan and to any other
terms and conditions not inconsistent with the Plan (including, but not limited
to, requiring the Grantee to pay the Company an amount equal to the par value
per share or such other amount for each share of Restricted Stock awarded) as
shall be prescribed by the Committee in its sole discretion, either at the time
of grant or thereafter. At the time Restricted Stock is granted, the Committee
shall determine whether or not the Restricted Stock is Performance Stock.

     (b) SHAREHOLDER RIGHTS. Each Grantee who receives Restricted Stock shall
have all of the rights of a shareholder with respect to such shares, subject to
the restrictions set forth in subsection (c), including the right to vote the
shares and receive dividends and other distributions. Any Common Shares or other
securities of the Company received by a Grantee with respect to a share of
Restricted Stock, as a stock dividend, or in connection with a stock split or
combination, share exchange or other recapitalization, shall have the same
status and be subject to the same restrictions as such Restricted Stock. Any
cash dividends with respect to a Grantee's Restricted Stock shall be paid to the
Grantee at the same time as such dividends are paid to other shareholders.
Unless the Committee determines otherwise, certificates evidencing shares of
Restricted Stock will remain in the possession of the Company until such shares
are free of all restrictions under the Plan and the Grantee has satisfied any
tax withholding obligations applicable to such shares.

     (c) RESTRICTIONS. Except as otherwise specifically provided in the Plan,
Restricted Stock may not be sold, assigned, transferred, pledged, or otherwise
encumbered or disposed of, during the Restricted Period, except as hereinafter
provided. Notwithstanding the foregoing, the Committee may permit (on such terms
and conditions as it shall establish) shares of Restricted Stock to be
transferred during the Restricted Periods pursuant to Section 17(d), provided
that any shares of Restricted Stock so transferred shall remain subject to the
provisions of this Section 8.

                                      -11-
<PAGE>
     (d) LAPSE OF RESTRICTIONS.

          (1) IN GENERAL. Unless the Committee shall otherwise determine at the
     date an Award of Restricted Stock is made to the Grantee by the Committee,
     the Restricted Period shall commence upon the date of grant by the
     Committee and shall lapse with respect to the shares of Restricted Stock on
     the third (3rd) anniversary of the date of grant, unless sooner terminated
     as otherwise provided herein. Upon the lapse of all restrictions in
     accordance with this subsection (d) or Section 13, Common Shares shall
     cease to be Restricted Stock for purposes of the Plan.

          (2) TERMINATION OF SERVICE. Unless the Committee shall otherwise
     determine at the date of grant and sets forth in the Award Agreement:

               (A) Due to Death or Disability. In the event a Grantee
          experiences a Termination of Service by reason of death or disability,
          the Restricted Period will lapse as to the entire portion of the
          shares of Restricted Stock transferred or issued to such Grantee under
          the Plan.

               (B) Due to Cause. In the event a Grantee experiences a
          Termination of Service for Cause, any Restricted Stock granted to such
          Participant shall be forfeited at the time of such termination, and
          the Committee may require that such Grantee disgorge any profit, gain
          or other benefit received in respect of the lapse of restrictions on
          any prior grant of Restricted Stock for a period of up to twelve (12)
          months prior to the Grantee's Termination of Service for Cause.

               (C) Due to Any Other Reason. In the event a Grantee experiences a
          Termination of Service for any other reason during the applicable
          vesting period, any Restricted Stock granted to such Grantee that is
          subject to a Restricted Period as of the date of Termination of
          Service shall be forfeited at the time of such termination.

          (3) PERFORMANCE STOCK. With respect to Performance Stock, the
     Restricted Period shall lapse at the end of the applicable Performance
     Period to the extent the applicable Performance Goals established by the
     Committee for such Performance Stock have been achieved, as determined by
     the Committee. For any Covered Employees and to the extent the Committee
     intends to comply with the requirements for performance-based Awards
     described generally under Code section 162(m), the Committee must certify,
     prior to vesting of any Performance Stock, that any applicable Performance
     Goals and/or other requirements have been satisfied, and that such amounts
     are consistent with the limits provided under Section 4(c). In no event
     shall the Committee have discretion to increase the extent to which the
     restrictions applicable to Performance Stock shall lapse beyond the extent
     to which the Performance Goals have been satisfied. Except as provided in
     Section 13 or in a Grantee's employment agreement, and unless the Committee
     shall otherwise determine at the date of grant and sets forth in the Award
     Agreement, if the Grantee's Termination of Service occurs for any reason
     prior to the end

                                      -12-
<PAGE>
     of the Performance Period, the Grantee shall forfeit all Performance Stock
     granted with respect to such Performance Period.

     (e) NOTICE OF TAX ELECTION. Any Grantee making an election under section
83(b) of the Code for the immediate recognition of income attributable to the
award of Restricted Stock must provide a copy thereof to the Company within 10
days of the filing of such election with the United States Internal Revenue
Service.

                                SECTION 9 - RSUs

     (a) NATURE OF RSUs. An RSU entitles the Grantee to receive, with respect to
each RSU that vests in accordance with subsection (c) or Section 13, one Common
Share, cash equal to the Fair Market Value of a Common Share on the date of
vesting, or a combination thereof as determined by the Committee and set forth
in the Award Agreement. Any fractional RSU shall be payable in cash.

     (b) GRANT OF RSUs. The Committee, in its sole discretion, may make Awards
to Grantee of RSUs. Any Award made hereunder of Restricted Units shall be
subject to the terms and conditions of the Plan and to any other terms and
conditions not inconsistent with the Plan as shall be prescribed by the
Committee in its sole discretion, either at the time of grant or thereafter. At
the time of grant, the Committee shall determine the number of RSUs subject to
the Award and whether or not the RSU is a PSU. The Company shall establish a
bookkeeping account in the Grantee's name which reflects the number and type of
RSUs standing to the credit of the Grantee; no shares of Common Stock shall be
issued at the time an Award of RSUs is made, and the Company shall not be
required to set aside a fund for the payment of such Award. A Grantee shall not
have any right, in respect of Restricted Units awarded pursuant to the Plan, to
vote on any matter submitted to the Company's stockholders until such time as
Common Shares attributable to such Restricted Units have been issued to the
Grantee.

     (c) VESTING.

          (1) IN GENERAL. Unless the Committee shall otherwise determine at the
     date an Award of RSUs is made to the Grantee by the Committee, the
     Restricted Period shall commence upon the date of grant by the Committee
     and shall lapse with respect to the shares of RSUs on the third (3rd)
     anniversary of the date of grant, unless sooner terminated as otherwise
     provided herein.

          (2) TERMINATION OF SERVICE. Unless the Committee shall otherwise
     determine at the date of grant and sets forth in the Award Agreement:

               (A) Due to Death or Disability. In the event a Grantee
          experiences a Termination of Service by reason of death or disability,
          the Restricted Period will lapse as to the entire portion of the
          shares of RSUs granted to such Grantee under the Plan.

               (B) Due to Cause. In the event a Grantee experiences a
          Termination of Service for Cause, any RSUs granted to such Grantee
          shall be forfeited at the time

                                      -13-
<PAGE>
          of such termination, and the Committee may require that such Grantee
          disgorge any profit, gain or other benefit received in respect of the
          lapse of restrictions on any prior grant of RSUs for a period of up to
          twelve (12) months prior to the Grantee's Termination of Service for
          Cause.

               (C) Due to Any Other Reason. In the event a Grantee experiences a
          Termination of Service for any other reason during the applicable
          vesting period, any RSUs granted to such Grantee that are subject to a
          Restricted Period as of the date of Termination of Service shall be
          forfeited at the time of such termination.

          (3) PSUs. With respect to PSUs, the Restricted Period shall lapse at
     the end of the applicable Performance Period to the extent the applicable
     Performance Goals established by the Committee for such PSUs have been
     achieved, as determined by the Committee. For any Covered Employees and to
     the extent the Committee intends to comply with the requirements for
     performance-based Awards described generally under Code section 162(m), the
     Committee must certify, prior to vesting of any PSUs, that any applicable
     Performance Goals and/or other requirements have been satisfied, and that
     such amounts are consistent with the limits provided under Section 4. In no
     event shall the Committee have discretion to increase the extent to which
     the restrictions applicable to PSUs shall become payable beyond the extent
     to which the Performance Goals have been satisfied. Except as provided in
     Section 13 or in a Grantee's employment agreement that is approved by the
     Committee, and unless the Committee shall otherwise determine at the date
     of grant and sets forth in the Award Agreement, if the Grantee's
     Termination of Service occurs for any reason prior to the end of the
     Performance Period, the Grantee shall forfeit all PSUs granted with respect
     to such Performance Period.

     (d) PAYMENT. Upon the vesting of an RSU in accordance with subsection (c)
or Section 13, payment, in Common Shares or cash (as applicable), shall be made
on the vesting date, unless a different date is specified in the Award
Agreement.

     (e) DIVIDEND EQUIVALENTS. The Committee, in its sole discretion, may make
Awards to Grantees of Dividend Equivalents in connection with the grant of RSUs
and PSUs. Unless the Committee shall otherwise determine, the terms and
conditions (including, without limitation, the payment date and vesting schedule
applicable thereto and the impact of any termination of service on the Grantee's
rights with respect to such Dividend Equivalent) shall be substantially
identical (to the extent possible taking into account the differences related to
the character of the Dividend Equivalent) to the terms and conditions applicable
to the associated RSU or PSU.

                           SECTION 10 - OTHER AWARDS

     (a) BONUS SHARES. The Committee may grant Bonus Shares under this Plan,
including but not limited to awards under the 2006-2010 Annual Incentive
Compensation Program. Such Bonus Shares shall be fully vested on the date made.

     (b) DIVIDEND EQUIVALENTS. The Committee, in its sole discretion, may make
Awards to Grantees of Dividend Equivalents as a separate Award and not in
connection with any other

                                      -14-
<PAGE>
Award, except as otherwise specifically provided herein. Unless the Committee
shall otherwise determine at the date an Award of Dividend Equivalents is made
to the Grantee by the Committee, such Dividend Equivalents shall accumulate
until the third anniversary of the date of grant, shall vest and be paid upon
such third anniversary provided the Grantee has not incurred a Termination of
Service prior to such date and shall thereafter prior to the earlier of the
expiration date of such Award or the Grantee's Termination of Service be paid to
the Grantee at the same time as the corresponding cash dividends are paid to
shareholders.

                         SECTION 11 - AWARD AGREEMENTS

     Awards granted under the Plan shall be evidenced by Award Agreements in
such form as the Committee shall from time to time approve, and containing such
provisions, as the Committee shall deem advisable that are not inconsistent with
the provisions of the Plan.

          SECTION 12 - ADJUSTMENT IN CASE OF CHANGES IN COMMON SHARES

     The following shall be adjusted, as deemed appropriate by the Committee, to
reflect any stock dividend, stock split, reverse stock split, split-up,
spin-off, distribution, recapitalization, reorganization, merger, consolidation,
dissolution, liquidation, exchange of shares, warrants or rights offering to
purchase Common Shares at a price substantially below Fair Market Value, share
combination or reclassification, extraordinary cash dividend or similar change
in the capitalization of the Company (an "ADJUSTMENT EVENT"):

     (a) The maximum number and type of shares under the limits set forth in
Section 4; and

     (b) The number and type of shares issuable upon exercise or vesting of
outstanding Options, SARs, PSUs and RSUs under the Plan (as well as the option
price per share under outstanding Options and the Fair Market Value of a share
on the date an outstanding SAR was granted).

     In the event any such change in capitalization cannot be reflected in a
straight mathematical adjustment of the number of shares issuable upon the
exercise or vesting of outstanding Options, SARs and RSUs (and a straight
mathematical adjustment of the exercise price or Fair Market Value on the date
of grant of a SAR), the Committee shall make such adjustments as are appropriate
to reflect most nearly such straight mathematical adjustment. Such adjustments
shall be made only as necessary to maintain the proportionate interest of
Grantees, and preserve, without exceeding, the value of Awards.

     To the extent deemed equitable and appropriate by the Committee and subject
to any required action by shareholders of the Company, in any Adjustment Event
that is a merger, consolidation, reorganization, liquidation, dissolution or
similar transaction, any Award granted under the Plan shall be deemed to pertain
to the securities and other property, including cash, to which a holder of the
number of Common Shares covered by the Award would have been entitled to receive
in connection with such Adjustment Event. Any shares of stock (whether Common
Shares, shares of stock into which shares of Common Shares are converted or for

                                      -15-
<PAGE>
which shares of Common Shares are exchanged or shares of stock distributed with
respect to Common Shares) or cash or other property received with respect to any
Award granted under the Plan as a result of any Adjustment Event or any
distribution of property shall, except as otherwise provided by the Committee,
be subject to the same terms and conditions (and to the same extent) as were
applicable to such Awards prior to the Adjustment Event.

                         SECTION 13 - CHANGE IN CONTROL

     (a) FULL VESTING. Unless determined otherwise by the Committee and subject
to the provisions of Section 14, in the event of a Change in Control each Option
and SAR then outstanding shall be fully exercisable regardless of the exercise
schedule otherwise applicable to such Option and/or SAR, and the Restricted
Period shall lapse as to each share of Restricted Stock and each RSU then
outstanding. In connection with such a Change in Control, the Committee may, in
its sole discretion, provide that each Option, SAR, Restricted Stock and/or RSU
shall, upon the occurrence of such Change in Control, be cancelled in exchange
for a payment per share/unit (the "SETTLEMENT PAYMENT") in an amount based on
the Change in Control Price. Such Settlement Payment shall be in the form of
cash or other property as determined by the Committee. Notwithstanding anything
in the Section to the contrary, nothing herein shall increase the extent to
which an Award is vested or exercisable if the Grantee's Termination of Service
occurs prior to the Change in Control.

     (b) PERFORMANCE-BASED AWARDS. Unless determined otherwise by the Committee
and subject to the provisions of Section 14, in the event of a Change in
Control, (a) any outstanding Performance Stock and PSUs relating to Performance
Periods ending prior to the Change in Control which have been earned but not
paid shall become immediately payable, (b) all then-in-progress Performance
Periods for Performance Stock and PSUs that are outstanding shall end, and all
Grantees shall be deemed to have earned an award equal to the Grantee's target
award opportunity for the Performance Period in question, (c) the Company may,
in its sole discretion and on such terms and conditions as it deems appropriate,
pay all such Awards either (i) in Common Shares and/or (ii) as a Settlement
Payment in cash or other property on the 30th day following such Change in
Control, based on the Change in Control Price.

     (c) DEFINITIONS.

          (1) For purposes of this Plan, a "Change in Control" with respect to
     the Company shall mean the first to occur of any of the following events:

               (A) the acquisition by any person, entity or "group" required to
          file a Schedule 13D or Schedule 14D-1 under the Exchange Act
          (excluding, for this purpose, the Company, its subsidiaries, any
          employee benefit plan of the Company or its subsidiaries which
          acquires ownership of voting securities of the Company) of beneficial
          ownership (within the meaning of Rule 13d-3 under the Exchange Act) of
          50% or more of either the then outstanding ordinary shares or the
          combined voting power of the Company's then outstanding voting
          securities entitled to vote generally in the election of directors;

                                      -16-

<PAGE>
               (B) the election or appointment to the Board, or resignation of
          or removal from the Board, of directors with the result that the
          individuals who as of the date hereof constituted the Board (the
          "INCUMBENT BOARD") no longer constitute at least a majority of the
          Board, provided that any person who becomes a director subsequent to
          the date hereof whose appointment, election, or nomination for
          election by the Company's shareholders, was approved by a vote of at
          least a majority of the Incumbent Board (other than an appointment,
          election or nomination of an individual whose initial assumption of
          office is in connection with an actual or threatened election contest
          relating to the election of the directors of the Company) shall be,
          for purposes of this Plan, considered as though such person were a
          member of the Incumbent Board; or

               (C) approval by the shareholders of the Company of: (i) a
          reorganization, merger or consolidation by reason of which persons who
          were the shareholders of the Company immediately prior to such
          reorganization, merger or consolidation do not, immediately
          thereafter, own more than 50% of the combined voting power of the
          reorganized, merged or consolidated company's then outstanding voting
          securities entitled to vote generally in the election of directors, or
          (ii) a liquidation or dissolution of the Company or the sale,
          transfer, lease or other disposition of all or substantially all of
          the assets of the Company (whether such assets are held directly or
          indirectly); and such transaction is consummated.

          (2) For purposes of this Plan, "Change in Control Price" means the
     highest price per Common Share paid in conjunction with any transaction
     resulting in a Change in Control (as determined in good faith by the
     Committee if any part of the offered price is payable other than in cash)
     or, in the case of a Change in Control occurring solely by reason of a
     change in the composition of the Board, the highest Fair Market Value of
     the Common Shares on any of the 30 trading days immediately preceding the
     date on which a Change in Control occurs; provided that, with respect to
     any portion of any Option or SAR, the Change in Control Price shall not
     exceed the Fair Market Value of the Common Shares on the date that a Change
     in Control occurs.

                        SECTION 14 - ALTERNATIVE AWARDS

     Notwithstanding Section 13, no cancellation, acceleration of
exercisability, vesting, cash settlement or other payment shall occur with
respect to any Option, SAR, Restricted Stock, and/or RSU if the Committee
reasonably determines in good faith prior to the occurrence of a Change in
Control that such Award shall be honored or assumed, or new rights substituted
therefore (such honored, assumed or substituted award hereinafter called an
"ALTERNATIVE AWARD"), by a Grantee's employer (or the parent or an affiliate of
such employer) immediately following the Change in Control; provided that any
such Alternative Award must:

     (a) be based on stock that is traded on an established securities market;

                                      -17-
<PAGE>
     (b) provide such Grantee with rights and entitlements substantially
equivalent to or better than the rights, terms and conditions applicable under
such Award, including, but not limited to, an identical or better exercise or
vesting schedules;

     (c) have substantially equivalent value to such Award (determined at the
time of the Change in Control); and

     (d) have terms and conditions which provide that in the event that the
Grantee's employment is involuntarily terminated for any reason other than for
Cause, all of such Grantee's Awards shall be deemed immediately and fully
exercisable and/or all restrictions shall lapse, and shall be settled for a
payment per each share of stock subject to the Alternative Award in cash, in
immediately transferable, publicly traded securities, or in a combination
thereof, in an amount equal to (i) the fair market value of such stock on the
date of the Grantee's termination (with respect to any Restricted Stock, and/or
RSUs), (ii) the excess of the fair market value of such stock on the date of the
Grantee's termination over the corresponding exercise or base price per share,
if any (with respect to any Option and/or SARs), or (iii) the Grantee's target
award opportunity for the Performance Period in question (with respect to any
performance--based Awards).

           SECTION 15 - AMENDMENT OF THE PLAN AND OUTSTANDING AWARDS

     The Board, pursuant to resolution, may at any time and from time to time
amend, modify or suspend the Plan, in whole or in part, without notice to or
consent of any Employee, Consultant or Non-Employee Director, provided, however,
that the following amendments shall require the approval of shareholders:

          (1) a change in the class of employees eligible to participate in the
     Plan with respect to ISOs;

          (2) except as permitted under Section 12, an increase in the maximum
     number of Common Shares with respect to which ISOs may be granted under the
     Plan;

          (3) a modification of the material terms of the "performance goal,"
     within the meaning of Treas. Reg. Section 1.162-27(e)(4)(vi) or any
     successor thereto (to the extent compliance with section 162(m) of the Code
     is desired); and

          (4) any amendment for which shareholder approval is required under the
     rules of the exchange or market on which the Common Shares are listed or
     traded.

     Subject to the provisions of the Plan. the Committee may amend an
outstanding Award in any respect whatsoever and at any time, in whole or in
part, without notice to or consent of any Grantee.

     No amendment, modification or termination of the Plan or any Award shall in
any manner adversely affect any Award theretofore granted under the Plan,
without the consent of the Grantee, provided, however, that (i) any change
pursuant to, and in accordance with the requirements of, Section 14; (ii) any
acceleration of payments of amounts accrued under the Plan

                                      -18-
<PAGE>
by action of the Committee or by operation of the Plan's terms; or (iii) any
decision by the Committee to limit participation (or other features of the Plan)
prospectively under the Plan shall not be deemed to violate this provision.

           SECTION 16 - TERMINATION OF PLAN; CESSATION OF ISO GRANTS

     The Board, pursuant to resolution, may terminate the Plan at any time and
for any reason. No Awards shall be granted hereunder after the 10th anniversary
of the date the Plan becomes effective. Nothing contained in this Section,
however, shall terminate or affect the continued existence of rights created
under Awards granted hereunder which are outstanding on the date the Plan is
terminated and which by their terms extend beyond such date.

                           SECTION 17 - MISCELLANEOUS

     (a) EFFECTIVE DATE. This Plan shall become effective on the date the
shareholders of the Company approve the Plan.

     (b) RIGHTS. Neither the adoption of the Plan nor any action of the Board or
the Committee shall be deemed to give any individual any right to be granted an
Award, or any other right hereunder, unless and until the Committee shall have
granted such individual an Award, and then his or her rights shall be only such
as are provided in the Award Agreement and this Plan. Notwithstanding any
provisions of the Plan or the Award Agreement with an Employee, the Company and
any Related Corporation shall have the right, in its discretion but subject to
any employment contract entered into with the Employee, to retire the Employee
at any time pursuant to its retirement rules or otherwise to terminate his or
her employment at any time for any reason whatsoever, or for no reason. A
Grantee shall have no rights as a shareholder with respect to any shares covered
by his or her Award until the issuance of a stock certificate to him or her for
such shares, except as otherwise provided under Section 8(b) (regarding
Restricted Stock).

     (c) INDEMNIFICATION OF BOARD AND COMMITTEE. Without limiting any other
rights of indemnification which they may have from the Company and any Related
Corporation, the members of the Board and the members of the Committee shall be
indemnified by the Company against all costs and expenses reasonably incurred by
them in connection with any claim, action, suit, or proceeding to which they or
any of them may be a party by reason of any action taken or failure to act
under, or in connection with, the Plan, or any Award granted hereunder, and
against all amounts paid by them in settlement thereof (provided such settlement
is approved by legal counsel selected by the Company) or paid by them in
satisfaction of a judgment in any such action, suit, or proceeding, except a
judgment based upon a finding of willful misconduct or recklessness on their
part. Upon the making or institution of any such claim, action, suit, or
proceeding, the Board or Committee member shall notify the Company in writing,
giving the Company an opportunity, at its own expense, to handle and defend the
same before such Board or Committee member undertakes to handle it on his or her
own behalf. The provisions of this Section shall not give members of the Board
or the Committee greater rights than they would have under the Company's by-laws
or Bermuda law.

                                      -19-
<PAGE>
     (d) TRANSFERABILITY; REGISTRATION. No ISO, Restricted Stock or RSU shall be
assignable or transferable by the Grantee other than by will or by the laws of
descent and distribution. During the lifetime of the Grantee, an ISO shall be
exercisable only by the Grantee or, in the event of the Grantee's legal
disability, by the Grantee's guardian or legal representative. Except as
provided in a Grantee's Award Agreement, such limits on assignment, transfer and
exercise shall also apply to NQSOs and SARs. If the Grantee so requests at the
time of exercise of an Option or an SAR, or at the time of grant of Restricted
Stock or vesting of an RSU, the certificate(s) shall be registered in the name
of the Grantee and the Grantee's spouse jointly, with right of survivorship.

     (e) BENEFICIARY DESIGNATION. Each Grantee may designate the person(s) or
entities as the beneficiary(ies) to whom the Grantee's Award may (subject to the
provisions of the Plan) be paid in the event of the Grantee's death prior to the
payment of such Award to him or her. Each beneficiary designation shall be
substantially in the form determined by the Committee and shall be effective
only when filed with the Committee during the Grantee's lifetime. Any
beneficiary designation may be changed by a Grantee without the consent of any
previously designated beneficiary or any other person or entity, unless
otherwise required by law, by the filing of a new beneficiary designation with
the Committee. The filing of a new beneficiary designation shall cancel all
beneficiary designations previously filed. If any Grantee fails to designate a
beneficiary in the manner provided above, or if the beneficiary designated by a
participant predeceases the participant, the Committee may direct such Grantee's
Award to be paid to the Grantee's surviving spouse or, if the Grantee has no
surviving spouse, then to the Grantee's estate.

     (f) LISTING AND REGISTRATION OF SHARES. Each Award shall be subject to the
requirement that, if at any time the Committee shall determine, in its
discretion, that the listing, registration, or qualification of the Common
Shares covered thereby upon any securities exchange or under any state or
federal law, or the consent or approval of any governmental regulatory body, is
necessary or desirable as a condition of, or in connection with, the granting of
such Award or the purchase of Common Shares thereunder, or that action by the
Company, its shareholders, or the Grantee should be taken in order to obtain an
exemption from any such requirement or to continue any such listing,
registration, or qualification, no such Award may be exercised, in whole or in
part, and no Restricted Stock, RSU or Bonus Shares may be awarded, unless and
until such listing, registration, qualification, consent, approval, or action
shall have been effected, obtained, or taken under conditions acceptable to the
Committee. Without limiting the generality of the foregoing, each Grantee or his
or her legal representative or beneficiary may also be required to give
satisfactory assurance that such person is an eligible purchaser under
applicable securities laws, and that the shares purchased or granted pursuant to
the Award shall be for investment purposes and not with a view to distribution;
certificates representing such shares may be legended accordingly.

     (g) WITHHOLDING AND USE OF SHARES TO SATISFY TAX OBLIGATIONS. The Company
and any Related Corporation shall have the right and power to deduct from all
payments or distributions hereunder, or require a Grantee to remit to the
Company promptly upon notification of the amount due, an amount (which may
include Common Shares) to satisfy any federal, state, local or foreign taxes or
other obligations required by law to be withheld with respect thereto

                                      -20-
<PAGE>
with respect to any Award. The Company may defer payments of cash or issuance or
delivery of Common Shares until such withholding requirements are satisfied. The
Committee may, in its discretion, permit a Grantee to elect, subject to such
conditions as the Committee shall impose, (a) to have Common Shares otherwise
issuable under the Plan withheld by the Company or (b) to deliver to the Company
previously acquired Common Shares (through actual tender or attestation), in
either case for the greatest number of whole shares having a Fair Market Value
on the date immediately preceding the date of exercise not in excess of the
amount required to satisfy the withholding tax obligations.

     (h) ACQUISITIONS. Notwithstanding any other provision of this Plan, Awards
may be granted hereunder in substitution for awards held by employees,
consultants or directors of other entities who are about to, or have, become
Employees, Consultants or Non-Employee Directors as a result of a merger,
consolidation, acquisition of assets or similar transaction by the Company or
Related Corporation. The terms of the substitute Awards so granted may vary from
the terms set forth in this Plan to such extent the Committee may deem
appropriate to conform, in whole or in part, to the provisions of the awards in
substitution for which they are granted; provided, however, that no substitute
Award shall be granted which will subject the Award to section 409A of the Code
(if it previously was not subject to such Code section).

     (i) APPLICATION OF FUNDS. Any cash received in payment for shares pursuant
to an Award shall be added to the general funds of the Company. Any Common
Shares received in payment for shares shall become treasury stock.

     (j) NO OBLIGATION TO EXERCISE AWARD. The granting of an Award shall impose
no obligation upon a Grantee to exercise such Award.

     (k) GOVERNING LAW. The Plan shall be governed by the applicable Code
provisions to the maximum extent possible. Otherwise, the laws of Bermuda
(without reference to principles of conflicts of laws) shall govern the
operation of, and the rights of Grantees under, the Plan, and Awards granted
thereunder.

     (l) UNFUNDED PLAN. The Plan, insofar as it provides for Awards, shall be
unfunded, and the Company shall not be required to segregate any assets that may
at any time be represented by Awards under the Plan. Any liability of the
Company to any person with respect to any Award under this Plan shall be based
solely upon any contractual obligations that may be created pursuant to the
Plan. No such obligation of the Company shall be deemed to be secured by any
pledge of, or other encumbrance on, any property of the Company.

     (m) NO GUARANTEE OF PARTICIPATION. Except to the extent expressly selected
by the Committee to be a Grantee, no person (whether or not an Employee,
Consultant, Non-Employee Director or a Grantee) shall at any time have a right
to be selected for (or additional) participation in the Plan, despite having
previously participated in an incentive or bonus plan of the Company or an
affiliate.

     (n) NO LIMITATION ON COMPENSATION; SCOPE OF LIABILITIES. Nothing in the
Plan shall be construed to limit the right of the Company to establish other
plans if and to the extent

                                      -21-
<PAGE>
permitted by applicable law. The liability of the Company or any Related
Corporation under this Plan is limited to the obligations expressly set forth in
the Plan, and no term or provision of this Plan may be construed to impose any
further or additional duties, obligations, or costs on the Company or any
affiliate thereof or the Committee not expressly set forth in the Plan.

     (o) REQUIREMENTS OF LAW. The granting of Awards and the issuance of Common
Shares shall be subject to all applicable laws, rules, and regulations, and to
such approvals by any governmental agencies or national securities exchanges as
may be required.

     (p) NO IMPACT ON BENEFITS. Except as may otherwise be specifically provided
for under any employee benefit plan, policy or program provision to the
contrary, Awards shall not be treated as compensation for purposes of
calculating an Employee's right under any such plan, policy or program.

     (q) NO CONSTRAINT ON CORPORATE ACTION. Except as provided in Section 15,
nothing contained in this Plan shall be construed to prevent the Company or any
Related Corporation, from taking any corporate action (including, but not
limited to, the Company's right or power to make adjustments, reclassifications,
reorganizations or changes of its capital or business structure, or to merge or
consolidate, or dissolve, liquidate, sell, or transfer all or any part of its
business or assets) which is deemed by it to be appropriate, or in its best
interest, whether or not such action would have an adverse effect on this Plan,
or any Awards made under this Plan. No Employee, beneficiary, or other person,
shall have any claim against the Company, or any Related Corporation, as a
result of any such action.

     (r) DISTRIBUTION OF AMOUNTS SUBJECT TO SECTION 409A. Notwithstanding
anything in the Plan to the contrary, if any amount that is subject to Section
409A of the Code is to be paid or distributed solely on account of a Change in
Control (as opposed to being paid or distributed on account of Termination of
Service or within a reasonable time following the lapse of any substantial risk
of forfeiture with respect to the corresponding Award), solely for purposes of
determining whether such distribution or payment shall be made in connection
with a Change in Control, the term Change in Control shall be deemed to be
defined in the manner provided in Section 409A of the Code and the regulations
thereunder. If any such distribution or payment cannot be made because an event
that constitutes a Change in Control under the Plan is not a change of control
as defined under Section 409A, then such distribution or payment shall be
distributed or paid at the next event, occurrence or date specified under the
Plan or Award Agreement at which such distribution or payment could be made in
compliance with the requirements of Section 409A of the Code.

                                      -22-<PAGE>
                                                                   Exhibit 10.12

                           CASTLEWOOD HOLDINGS LIMITED

                 2006-2010 ANNUAL INCENTIVE COMPENSATION PROGRAM

<PAGE>
                                TABLE OF CONTENTS
                                -----------------
                                                                      PAGE
                                                                      ----

1.       Purposes.......................................................1

2.       Definitions....................................................1

3.       Bonus Pool.....................................................2

4.       Beneficiary Designation........................................2

5.       Delivery to Guardian...........................................3

6.       Source of Shares...............................................3

7.       Administration.................................................3

8.       Amendment and Termination......................................3

9.       Tax Withholding................................................3

10.      Headings.......................................................3

11.      Plan...........................................................3

APPENDIX A............................................................A-1

APPENDIX B............................................................B-1
<PAGE>
                           CASTLEWOOD HOLDINGS LIMITED
                 2006-2010 ANNUAL INCENTIVE COMPENSATION PROGRAM

          WHEREAS, Castlewood Holdings Limited, a Bermuda corporation (the
"Company"), has established the Castlewood Holdings Limited 2006 Equity
Incentive Plan (the "Plan"), primarily in order to award equity-based benefits
to certain officers and other key employees of the Company and its "Related
Corporations" (as defined in the Plan);

          WHEREAS, one kind of equity-based benefit that can be awarded under
the Plan is "Bonus Shares" (as defined in the Plan); and

          WHEREAS, the Company desires to establish an annual incentive
compensation program for each of the 2006, 2007, 2008, 2009 and 2010 calendar
years (the "Program") for the benefit of certain officers and other key
employees of the Company and its Related Corporations whereby such officers and
key employees would be awarded cash, Bonus Shares, or a combination thereof,
each as set forth in the Program, upon the terms and subject to the conditions
set forth below.

          NOW, THEREFORE, effective as of January 1, 2006, the Program is hereby
adopted by the Compensation Committee of the Board of Directors of the Company
(the "Committee") with the following terms and conditions:

     1. Purposes. The purpose of the Program is to motivate certain officers and
employees of the Company to grow the Company's profitability.

     2. Definitions.

          (a) "Award" means an award of Bonus Shares and cash to a Participant
in accordance with Section 3 of the Program.

          (b) "Change in Control" means "Change in Control" as such term is
defined in a Participant's employment agreement or, if a Participant does not
have an employment agreement with the Company or any Related Corporation, as
such term is defined in the Plan.

          (c) "CEO" means the Chief Executive Officer of Company.

          (d) "Measurement Period" means each of the 2006, 2007, 2008, 2009 and
2010 calendar years. In the event of a Change in Control during any such year,
the Measurement Period shall be the period beginning on the first day of such
year and ending on the date of the Change in Control.

          (e) "Participant" means each of the individuals whose names are set
forth in Appendix A attached hereto and who is employed during the Measurement
Period, and such other individuals as the Committee may determine taking into
consideration the recommendations of the CEO. Within 60 days after the end of
any Measurement Period, the Committee shall, taking into consideration the
recommendations of the CEO, identify those individuals in addition to those
identified on Appendix A who shall be entitled to participate for

<PAGE>
such Measuring Period and shall determine the percentage of the Bonus Pool to be
received by each Participant for such Measurement Period. In the event a Change
in Control occurs within the Measuring Period, the Committee shall make such
determinations within 60 days prior to the date of the Change in Control.

          (f) "Senior Management" means the Chief Executive Officer, Executive
Vice Presidents, Executive Chairman and Chief Financial Officer of the Company.

          (g) "Shares" means "Common Shares" as defined in the Plan.

     3. Bonus Pool.

          (a) For each Measurement Period in which the Company has any
Consolidated Net After-Tax Profits, the Company shall pay to each Participant,
in cash, Bonus Shares, or a combination thereof, as determined by the Committee,
an amount determined by multiplying the Bonus Pool by the percentage (expressed
as a decimal) of the Bonus Pool allocated to each Participant. The portion of
such amount to be paid to the Participant in Bonus Shares (rounded down to the
nearest whole number of Shares) shall be determined by dividing the portion of
the Bonus Pool payable to the Participant in Bonus Shares by the Share Value
(based on the average Share Value over the 30 days prior to the last day of the
Measurement Period). Awards settled in Bonus Shares will be payable under the
Program to the extent that Shares remain available for issuance under the Plan.
If the total number of Bonus Shares to be awarded with respect to any
Measurement Period exceeds the number of Shares available for issuance under the
Plan, then the number of Bonus Shares payable to each Participant will be
reduced on a pro rata basis based on each individual Participant's percentage
for that Measurement Period, and Participants will receive the unpaid portion of
their Award as a cash payment instead.

          (b) The following terms shall be defined as set forth below:

               (1) "Bonus Pool" means, for any Measurement Period, a percentage
of the Company's Consolidated Net After-Tax Profits for such Measurement Period.
The guideline for this percentage is 15% but this percentage can be varied by
the Committee for any Measurement Period no later than 30 days from the end of
the Measurement Period. If, for any Measurement Period, the Company does not
have any Consolidated Net After-Tax Profits, the Bonus Pool for such Measurement
Period shall be zero.

               (2) "Share Value" means "Fair Market Value" as defined in the
Plan.

               (3) "Consolidated Net After-Tax Profits" means for each year
ending on December 31, the net earnings for that year as recorded in the
Company's Consolidated Statements of Earnings plus any bonus expense recorded in
the Company's Consolidated Statements of Earnings for such year.

          (c) Within 60 days after the end of the Measurement Period, the
Committee shall notify each Participant of the Award (if any) to such
Participant under the Program. If an Award is to be paid under the Program, it
shall be paid to Participants no later than March 14 following the applicable
Measurement Period (or, if a Change in Control occurs during a

                                      -2-
<PAGE>
Measurement Period, within 30 days after the last day of the Measurement Period
ending on the date of the Change in Control).

     4. Beneficiary Designation.

          (a) Each Participant shall designate the person(s) or entities as the
beneficiary(ies) to whom the Participant's Award shall be paid in the event of
the Participant's death prior to the payment of such Award to him or her. Each
beneficiary designation shall be substantially in the form set forth in Appendix
B attached hereto and shall be effective only when filed with the Committee
during the Participant's lifetime.

          (b) Any beneficiary designation may be changed by a Participant
without the consent of any previously designated beneficiary or any other person
or entity, unless otherwise required by law, by the filing of a new beneficiary
designation with the Committee. The filing of a new beneficiary designation
shall cancel all beneficiary designations previously filed.

          (c) If any Participant fails to designate a beneficiary in the manner
provided above, or if the beneficiary designated by a Participant predeceases
the Participant, the Committee shall direct such Participant's Award to be paid
to the Participant's surviving spouse or, if the Participant has no surviving
spouse, then to the Participant's estate.

     5. Delivery to Guardian. If an Award is payable under this Program to a
minor, a person declared incompetent or a person incapable of handling the
disposition of property, the Committee may direct the payment of the Award to
the guardian, legal representative or person having the care and custody of the
minor, incompetent or incapable person. The Committee may require proof of
incompetency, minority, incapacity or guardianship as the Committee may deem
appropriate prior to the delivery. The payment shall completely discharge the
Committee, the members of the Board of Directors of the Company or any Related
Corporation, the Company and any Related Corporation from all liability with
respect to the Award paid.

     6. Source of Shares. This Program shall be unfunded, and the payment of
Bonus Shares shall be pursuant to the Plan. Each Participant and beneficiary
shall be a general and unsecured creditor of the Company and any Related
Corporation to the extent of the Award determined hereunder, and the Participant
shall have no right, title or interest in any specific asset that the Company or
any Related Corporation may set aside, earmark or identify as for the payment of
an Award under the Program. The obligations of the Company and any Related
Corporation under the Program shall be merely that of an unfunded and unsecured
promise to pay cash and Bonus Shares in the future.

     7. Administration. This Program shall be administered by the Committee.

     8. Amendment and Termination. The Board of Directors of the Company
reserves the right to amend the Program with respect to any Measurement Period,
by written resolution, at any time within 90 days of the commencement of such
Measurement Period.

     9. Tax Withholding. The payment of cash and Bonus Shares to a Participant
or beneficiary under this Program shall be subject to any applicable tax
withholding.

                                      -3-
<PAGE>
     10. Headings. The headings of the Sections and subsections of the Program
are for reference only. In the event of a conflict between a heading and the
content of a Section or subsection, the content of the Section or subsection
shall control.

     11. Plan. Because Bonus Shares may be awarded under the Program, the terms
and conditions of the Plan are hereby incorporated by reference in connection
with issuance of Bonus Shares. If any terms of the Program conflict with the
terms of the Plan, the terms of the Program shall control. Nothing contained
herein shall limit the ability of the Committee to issue Bonus Shares under the
Plan. For 2006, this Program replaces and supersedes all other annual incentive
programs of the Company applicable to the participants in the Program's 2006
Performance Period.

                                      -4-
<PAGE>
                                   APPENDIX A

                           CASTLEWOOD HOLDINGS LIMITED

                 2006-2010 ANNUAL INCENTIVE COMPENSATION PROGRAM

                                  PARTICIPANTS
                                  ------------

NAME
----

Dominic Silvester

Paul O'Shea

Nicholas Packer

Richard Harris

John Oros

David Rocke

Such other individuals as the Committee may determine from time to time taking
into account the recommendations of Senior Management.
<PAGE>
                                   APPENDIX B

                           CASTLEWOOD HOLDINGS LIMITED

                 2006-2010 ANNUAL INCENTIVE COMPENSATION PROGRAM

                          BENEFICIARY DESIGNATION FORM
                          ----------------------------

     This Form is for your use under the Castlewood Holdings Limited 2006-2010
Annual Incentive Compensation Program (the "Program") to name a beneficiary for
an Award that may be paid to you from the Program. You should complete the Form,
sign it, have it signed by your employer, and date it.

                                     * * * *

     I understand that in the event of my death before I receive an Award that
may be payable to me under the Program, the Award will be paid to the
beneficiary designated by me below or, if none or if my designated beneficiary
predeceases me, to my surviving spouse or, if none, to my estate. I further
understand that the last beneficiary designation filed by me during my lifetime
and accepted by the Company cancels all prior beneficiary designations
previously filed by me under the Program.

     I hereby state that ____________________________ [INSERT NAME], residing or
having its principal place of business at _____________________ [INSERT
ADDRESS], [whose Social Security number is __________________,] [whose employer
identification or similar number is ________________] is designated as my
beneficiary.

_____________________________                        ___________________________
Signature of Participant                             Date

                                                     ACCEPTED:

                                                     ___________________________
                                                     [INSERT NAME OF EMPLOYER]

                                                     By:
                                                        ________________________

                                                     ___________________________

                                                     Date

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