Document:

Exhibit - 10.18

 

 

MONTPELIER RE HOLDINGS LTD.

 

LONG-TERM INCENTIVE PLAN

 

RESTRICTED SHARE UNIT

AWARD AGREEMENT

 

This Award Agreement (the “Award Agreement”) is made
and entered into as of
[                        ]
between Montpelier

Re Holdings Ltd. (the “Company”) and NAME (the “Participant”).

 

The Company hereby grants to the Participant an
incentive award (the “Award”) on the terms and conditions as set forth in this
Award Agreement and in the Montpelier Long-Term Incentive Plan (the “Plan”), as
the same may be amended from time to time.

 

In accordance with this grant, and as a condition
thereto, the Company and the Participant agree as follows:

 

SECTION 1.  Restricted Share Units;
Vesting Period

 

	
  Award:

  	
  [      ]
  Restricted Share Units

  (“RSUs”)

  
	
  Vesting
  Period:

  	
  [      ]
  through and ending on

  [      ]

  

 

SECTION 2.  Nature of Award.  RSUs represent the
opportunity to receive shares of Company common shares, $0.001666 par value per
share (“Shares”), as are earned in accordance with Section 3 of this Award
Agreement.

 

SECTION 3. Vesting.  Subject to
the Participant remaining employed at the applicable Vesting Date, as
hereinafter defined, the RSUs shall vest over the vesting period described in Section 1
above (the “Vesting Period”) in [       ]
equal tranches at midnight on [specified annual vesting dates], respectively
(each a “Vesting Date”).  Shares shall be
issued by the Company to the Participant in satisfaction of the Award as soon
as reasonably practicable following the end of the Vesting Period.

 

SECTION 4.  Termination of Employment

 

(a)   If the Participant’s employment with the Company or
one of its subsidiaries is terminated at any time during the Vesting Period:

 

                (i) for any reason other
than termination by the Company or subsidiary for Cause, then all RSUs unvested
at the date of termination shall be forfeited, and Shares with respect to any
RSUs vested at the date of termination shall be issued to the Participant by
the Company as soon as reasonably practicable following the Vesting Period; or

 

                (ii) by the Company or
subsidiary for Cause, then all RSUs whether vested or unvested at the date of
termination shall be forfeited.

 

 

 

(b)  For purposes of the Plan and the Award Agreement, a
transfer of employment from the Company to any subsidiary of the Company or
vice versa, or from one subsidiary to another, shall not be considered a
termination of employment.

 

SECTION 5. Change in Control. Notwithstanding the provisions of Section 4
above, if within 24 months following a Change in Control, the employment of the
Participant with the Company or one of its subsidiaries is terminated during
the Vesting Period:

 

(a)   (i) by the Company or subsidiary without Cause,
(ii) on account of death or disability (as determined in accordance with Section 8
of the Plan), or (iii) by the Participant on account of a Constructive
Termination or retirement at age 60 or later, then upon such termination the
RSUs shall be deemed to have vested in full and Shares with respect to such
vested RSUs shall be issued to the Participant by the Company as soon as
reasonably practicable after such termination;

 

(b)   by the Participant other than on account of a
Constructive Termination or retirement at age 60 or later, then all RSUs
unvested at the date of termination shall be forfeited, and Shares with respect
to any RSUs vested at the date of termination shall be issued to the
Participant by the Company as soon as reasonably practicable after such
termination; or

 

(c)   by the Company or subsidiary for Cause, then all
RSUs whether vested or unvested at the date of termination shall be forfeited.

 

SECTION 6.  Tax Withholding.  Pursuant to Section 17(c) of
the Plan, the Committee shall have the power and the right to deduct or
withhold, or require the Participant to remit to the Company, an amount sufficient
to satisfy any federal, state, local or other taxes required by applicable law
to be withheld with respect to payment of the Award.  The Committee may condition the payment
hereunder upon the Participant’s satisfaction of such withholding obligations.

 

SECTION 7.  Rights As A Shareholder.  The Participant shall have
no rights as shareholder with respect to any Shares underlying the Award until
and unless the Participant’s name is entered in the Company’s Register of
Members as the holder of such shares and a Share certificate is issued to the
Participant upon payment with respect to the Award.

 

SECTION 8.  Dividend Equivalents.  To the extent dividends are paid on Shares
with respect to the Vesting Period, the Participant shall be entitled to receive
within 90 days following the respective payment dates of such dividends
(subject to the Participant’s continued employment with the Company or one of
its subsidiaries at the relevant payment date), a cash payment equivalent to
the cash dividends paid on the number of Shares underlying the RSUs awarded
pursuant to Section 2 above on such payment date.  Any payments made pursuant to this Section 8
shall be in the form of ordinary compensation.

 

 

2

 

 

SECTION 9.  Transferability.  Pursuant to Section 14
of the Plan, the Participant may designate a beneficiary or beneficiaries to
receive any payment to which he or she

 

may be entitled in respect
of Awards under the Plan in the event of his or her death on a form to be
provided by the Committee.  Except as
provided herein, the Participant may not sell, transfer, pledge, assign or
otherwise alienate or hypothecate the RSUs, other than by his or her last Will
and Testament or by the laws of descent and distribution.

 

SECTION 10.  Ratification of Actions.  By accepting the Award or
other benefit under the Plan, the Participant and each person claiming under or
through him or her shall be conclusively deemed to have indicated the
Participant’s acceptance and ratification of, and consent to, any action taken
under the Plan or the Award by the Company, the Board or the Committee.  All decisions or interpretations of the
Company, the Board and the Committee upon any questions arising under the Plan
and/or this Award Agreement shall be binding, conclusive and final on all
parties.  In the event of any conflict
between any provision of the Plan and this Award Agreement, the terms and
provisions of the Plan shall control.

 

SECTION 11.  Notices. 
Any notice hereunder to the Company shall be addressed to its office,
Montpelier House, 94 Pitts Bay Road, Hamilton HM08, Bermuda; Attention:
Corporate Secretary, and any notice hereunder to the Participant shall be
addressed to him or her at the address specified on the Award Agreement,
subject to the right of either party to designate at any time hereafter in
writing some other address.

 

SECTION 12.  Definitions. 
Capitalized terms not otherwise defined herein shall have the meanings
given them in the Plan.

 

SECTION 13.  Governing Law and Severability.  This Award Agreement will be
governed by and construed in accordance with the laws of Bermuda, without
regard to conflicts of law provisions. 
In the event any provision of the Award Agreement shall be held illegal
or invalid for any reason, the illegality or invalidity shall not affect the
remaining parts of the Award Agreement, and the Award Agreement shall be
construed and enforced as if the illegal or invalid provision had not been
included.

 

SECTION 14.  No Rights to Continued Employment.  This Award Agreement is not
a contract of employment.  Nothing in the
Plan or in this Award Agreement shall interfere with or limit in any way the
right of the Company or any subsidiary to terminate the Participant’s
employment at any time, for any reason or no reason, or confer upon the
Participant the right to continue in the employ of the Company or a subsidiary.

 

SECTION 15.  Counterparts. This Award Agreement may be
signed in any number of counterparts, each of which shall be an original, with
the same effect as if the signatures thereto and hereto were upon the same
instrument.

 

 

3

 

 

IN WITNESS WHEREOF, the undersigned have caused this
Award Agreement to be duly executed as of the date first written above.

 

	
   

  	
  MONTPELIER RE HOLDINGS
  LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
			

 

 

	
   

  	
  PARTICIPANT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Name:

  
	
   

  	
  Title:Exhibit - 10.19

 

 

Montpelier
Re Holdings Ltd.

2007 Annual Bonus Plan

 

Purpose

 

The purpose of this Plan
is to increase the intrinsic business value of Montpelier Re Holdings Ltd. and
its operating subsidiaries (the “Company”) by aligning employee performance
with the interests of the Company’s owners. All full-time employees of the
Company shall be eligible to participate in the Plan.

 

Performance
Targets

 

The Plan shall be tied to
a calendar year performance cycle consistent with the Company’s fiscal year.
Annual bonus pool targets for categories of employees and an overall Company
performance target under the Plan shall be set by the Company’s Compensation
and Nominating Committee (the “Committee”). At the conclusion of the calendar
year, the Committee shall judge Company performance against the bonus pool
targets when determining the final size of the bonus pools and the level of
payout for each employee. The Company’s Chief Executive Officer, in
consultation with the Committee, shall then recommend the distribution of the
pool to individual Plan participants who are non-executive officers of the
Company. The Committee shall approve any payments to the Company’s executive
officers.

 

Bonus
Pool Targets

 

For the 2007 calendar
year, the annual bonus pool targets for the Company’s officers and all
remaining Company staff shall be the following percentages of eligible
salaries:

 

	
  Performance

  	
   

  	
  Group A

  	
   

  	
  Group B

  	
   

  	
  Group C

  
	
  Minimum

  	
   

  	
  50%

  	
   

  	
  37.5%

  	
   

  	
  12.5%

  
	
  On Target

  	
   

  	
  100%

  	
   

  	
  75%

  	
   

  	
  25%

  
	
  Superior

  	
   

  	
  200%

  	
   

  	
  150%

  	
   

  	
  50%

  

 

Eligible salaries for all
officers and staff shall be equivalent to the 2007 base salaries of Plan
participants, pro-rated in the case of any officer or staff member employed by
the Company for less than the entire 2007 calendar year.

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