Document:

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                                                                     EXHIBIT 4.4

                      PLATINUM UNDERWRITERS HOLDINGS, LTD.

                                       AND

                              JPMORGAN CHASE BANK,

                           AS PURCHASE CONTRACT AGENT

                           PURCHASE CONTRACT AGREEMENT

                             DATED AS OF ,     2002

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                                TABLE OF CONTENTS

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                                                 ARTICLE I
                          DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

SECTION 1.1 Definitions..................................................................................1
SECTION 1.2 Compliance Certificates and Opinions........................................................15
SECTION 1.3 Form of Documents Delivered to Agent........................................................16
SECTION 1.4 Acts of Holders; Record Dates...............................................................17
SECTION 1.5 Notices.....................................................................................18
SECTION 1.6 Notice to Holders; Waiver...................................................................19
SECTION 1.7 Effect of Headings and Table of Contents....................................................20
SECTION 1.8 Successors and Assigns......................................................................20
SECTION 1.9 Separability Clause.........................................................................20
SECTION 1.10 Benefits of Agreement......................................................................20
SECTION 1.11 Governing Law; Jurisdiction................................................................20
SECTION 1.12 Legal Holidays.............................................................................21
SECTION 1.13 Counterparts...............................................................................22
SECTION 1.14 Inspection of Agreement....................................................................22
SECTION 1.15 Appointment of Financial Institution as Agent for the Company..............................22
SECTION 1.16 No Waiver..................................................................................22

                                                ARTICLE II
                                             CERTIFICATE FORMS

SECTION 2.1 Forms of Certificates Generally.............................................................22
SECTION 2.2 Form of Agent's Certificate of Authentication...............................................24

                                                ARTICLE III
                                                 THE UNITS

SECTION 3.1 Title and Terms; Denominations..............................................................24
SECTION 3.2 Rights and Obligations Evidenced by the Certificates........................................24
SECTION 3.3 Execution, Authentication, Delivery and Dating..............................................25
SECTION 3.4 Temporary Certificates......................................................................26
SECTION 3.5 Registration; Registration of Transfer and Exchange.........................................27
SECTION 3.6 Book-Entry Interests........................................................................28
SECTION 3.7 Notices to Holders..........................................................................29
SECTION 3.8 Appointment of Successor Clearing Agency....................................................29
SECTION 3.9 Definitive Certificates.....................................................................29
SECTION 3.10 Mutilated, Destroyed, Lost and Stolen Certificates.........................................30
SECTION 3.11 Persons Deemed Owners......................................................................31
SECTION 3.12 Cancellation...............................................................................32
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SECTION 3.13 Establishment of Stripped Units............................................................32
SECTION 3.14 Reestablishment of Normal Units............................................................34
SECTION 3.15 Transfer of Collateral upon Occurrence of Termination Event................................35
SECTION 3.16 No Consent to Assumption...................................................................36
SECTION 3.17 CUSIP Numbers..............................................................................36

                                                ARTICLE IV
                                                 THE NOTES

SECTION 4.1 Payment of Interest; Rights to Interest Payments Preserved; Notice..........................36
SECTION 4.2 Notice and Voting...........................................................................37
SECTION 4.3 Tax Event Redemption........................................................................38
SECTION 4.4 Consent to Treatment for Tax Purposes.......................................................38
SECTION 4.5 Prepayment of Notes.........................................................................39

                                                 ARTICLE V
                                  THE PURCHASE CONTRACTS; THE REMARKETING

SECTION 5.1 Purchase of Common Shares...................................................................39
SECTION 5.2 Contract Adjustment Payments................................................................41
SECTION 5.3 Deferral of Contract Adjustment Payments....................................................47
SECTION 5.4 Payment of Purchase Price; Remarketing......................................................49
SECTION 5.5 Issuance of Common Shares...................................................................54
SECTION 5.6 Adjustment of Settlement Rate...............................................................55
SECTION 5.7 Notice of Adjustments and Certain Other Events..............................................62
SECTION 5.8 Termination Event; Notice...................................................................63
SECTION 5.9 Early Settlement............................................................................63
SECTION 5.10 Early Settlement Upon Cash Merger..........................................................65
SECTION 5.11 Charges and Taxes..........................................................................67
SECTION 5.12 No Fractional Shares.......................................................................67

                                                ARTICLE VI
                                                 REMEDIES

SECTION 6.1 Unconditional Right of Holders to Receive Purchase Contract Adjustment
               Payments and Purchase Common Shares......................................................68
SECTION 6.2 Restoration of Rights and Remedies..........................................................68
SECTION 6.3 Rights and Remedies Cumulative..............................................................68
SECTION 6.4 Delay or Omission Not Waiver................................................................69
SECTION 6.5 Undertaking for Costs.......................................................................69
SECTION 6.6 Waiver of Stay or Extension Laws............................................................69
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                                                ARTICLE VII
                                                 THE AGENT

SECTION 7.1 Certain Duties and Responsibilities.........................................................69
SECTION 7.2 Notice of Default...........................................................................70
SECTION 7.3 Certain Rights of Agent.....................................................................71
SECTION 7.4 Not Responsible for Recitals or Issuance of Units...........................................72
SECTION 7.5 May Hold Units..............................................................................72
SECTION 7.6 Money Held in Custody.......................................................................72
SECTION 7.7 Compensation and Reimbursement..............................................................72
SECTION 7.8 Corporate Agent Required; Eligibility.......................................................73
SECTION 7.9 Resignation and Removal; Appointment of Successor...........................................73
SECTION 7.10 Acceptance of Appointment by Successor.....................................................75
SECTION 7.11 Merger, Conversion, Consolidation or Succession to Business................................75
SECTION 7.12 Preservation of Information................................................................75
SECTION 7.13 No Obligations of Agent....................................................................76
SECTION 7.14 Tax Compliance.............................................................................76

                                               ARTICLE VIII
                                          SUPPLEMENTAL AGREEMENTS

SECTION 8.1 Supplemental Agreements Without Consent of Holders..........................................76
SECTION 8.2 Supplemental Agreements with Consent of Holders.............................................77
SECTION 8.3 Execution of Supplemental Agreements........................................................78
SECTION 8.4 Effect of Supplemental Agreements...........................................................79
SECTION 8.5 Reference to Supplemental Agreements........................................................79

                                                ARTICLE IX
                                 CONSOLIDATION, MERGER, SALE OR CONVEYANCE

SECTION 9.1 Covenant Not to Merge, Consolidate, Sell or Convey Property Except
               Under Certain Conditions.................................................................79
SECTION 9.2 Rights and Duties of Successor Corporation..................................................79
SECTION 9.3 Opinion of Counsel Given to Agent...........................................................80

                                                 ARTICLE X
                                                 COVENANTS

SECTION 10.1 Performance Under Purchase Contracts.......................................................80
SECTION 10.2 Maintenance of Office or Agency............................................................80
SECTION 10.3 Company to Reserve Common Shares...........................................................81
SECTION 10.4 Covenants as to Common Shares..............................................................81
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                                                                            PAGE

EXHIBITS

EXHIBIT A    Form of Normal Units Certificate
EXHIBIT B    Form of Stripped Units Certificate
EXHIBIT C    Instruction from Purchase Contract Agent to Collateral Agent
EXHIBIT D    Instruction to Purchase Contract Agent

EXHIBIT E    Notice to Settle by Separate Cash

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          PURCHASE CONTRACT AGREEMENT, dated as of *, 2002, between Platinum
Underwriters Holdings, Ltd., a Bermuda corporation (the "Company"), and JPMorgan
Chase Bank, a New York banking corporation, acting as purchase contract agent
and attorney-in-fact for the Holders of Units from time to time (the "Agent").

                                    RECITALS

          The Company has duly authorized the execution and delivery of this
Agreement and the Certificates evidencing the Units.

          All things necessary to make the Purchase Contracts, when the
Certificates are executed by the Company and authenticated, executed on behalf
of the Holders and delivered by the Agent, as provided in this Agreement, the
valid obligations of the Company, and to constitute this Agreement a valid
agreement of the Company, in accordance with its terms, have been done.

                                   WITNESSETH:

          For and in consideration of the premises and the purchase of the Units
by the Holders thereof, it is mutually agreed as follows:

                                    ARTICLE I

                        DEFINITIONS AND OTHER PROVISIONS
                             OF GENERAL APPLICATION

          SECTION 1.1 DEFINITIONS.

          For all purposes of this Agreement, except as otherwise expressly
provided or unless the context otherwise requires:

          (a)  the terms defined in this Article have the meanings assigned to
     them in this Article and include the plural as well as the singular, and
     nouns and pronouns of the masculine gender include the feminine and neuter
     genders;

          (b)  all accounting terms not otherwise defined herein have the
     meanings assigned to them in accordance with generally accepted accounting
     principles in the United States;

          (c)  the words "herein," "hereof" and "hereunder" and other words of
     similar import refer to this Agreement as a whole and not to any particular
     Article, Section or other subdivision; and

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          (d)  the following terms have the meanings given to them in this
     Section 1.1(d):

          "Act" when used with respect to any Holder, has the meaning specified
     in Section 1.4(a).

          "Affiliate" has the same meaning as given to that term in Rule 405 of
     the Securities Act or any successor rule thereunder.

          "Agent" means the Person named as the "Agent" in the first paragraph
     of this Agreement until a successor Agent shall have become such pursuant
     to the applicable provisions of this Agreement, and thereafter "Agent"
     shall mean such Person.

          "Agent-purchased Treasury Consideration" has the meaning specified in
     Section 5.4(b)(i).

          "Agreement" means this agreement as originally executed or as it may
     from time to time be supplemented or amended by one or more agreements
     supplemental hereto entered into pursuant to the applicable provisions
     hereof.

          "Applicable Market Value" has the meaning specified in Section 5.1(c).

          "Applicants" has the meaning specified in Section 7.12(b).

          "Bankruptcy Code" means Title 11 of the United States Code, or any
     other law of the United States that from time to time provides a uniform
     system of bankruptcy laws.

          "Beneficial Owner" means, with respect to a Book-Entry Interest, a
     Person who is the beneficial owner of such Book-Entry Interest as reflected
     on the books of the Clearing Agency or on the books of a Person maintaining
     an account with such Clearing Agency (directly as a Clearing Agency
     Participant or as an indirect participant, in each case in accordance with
     the rules of such Clearing Agency).

          "Board of Directors" means either the Board of Directors of the
     Company or the Executive Committee of such Board or any other committee of
     such Board duly authorized to act generally or in any particular respect
     for the Board hereunder.

          "Board Resolution" means (i) a copy of a resolution certified by the
     Secretary or the Assistant Secretary of the Company to have been duly
     adopted by the Board of Directors and to be in full force and effect on the
     date of such certification, (ii) a copy of a unanimous written consent of
     the Board of Directors or (iii) a certificate signed by the authorized
     officer or officers to whom the Board of Directors has delegated its
     authority, and in each case, delivered to the Agent.

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          "Book-Entry Interest" means a beneficial interest in a Global
     Certificate, ownership and transfers of which shall be maintained and made
     through book entries by a Clearing Agency as described in Section 3.6.

          "Business Day" means any day that is not a Saturday, Sunday or day on
     which banking institutions and trust companies in The City of New York[ or
     in the city where the principal corporate trust office of the Collateral
     Agent is located] or at a place of payment are authorized or required by
     law, regulation or executive order to close.

          "Capital Stock" means any and all shares, interests, rights to
     purchase, warrants, options, participations or other equivalents of or
     interests in (however designated, whether voting or non-voting) corporate
     stock or similar interests in other types of entities.

          "Cash Merger" has the meaning set forth in Section 5.10(a).

          "Cash Merger Date" means the date on which a Cash Merger is
     consummated.

          "Cash Settlement" has the meaning set forth in Section 5.4(a).

          "Certificate" means a Normal Units Certificate or a Stripped Units
     Certificate.

          "Clearing Agency" means an organization registered as a "clearing
     agency" pursuant to Section 17A of the Exchange Act that is acting as a
     depositary for the Units and in whose name, or in the name of a nominee of
     that organization, shall be registered a Global Certificate and which shall
     undertake to effect book-entry transfers and pledges of the Units.

          "Clearing Agency Participant" means a broker, dealer, bank, trust
     company, clearing corporation, other financial institution or other Person
     for whom from time to time the Clearing Agency effects book-entry transfers
     and pledges of securities deposited with the Clearing Agency.

          "Closing Price" has the meaning specified in Section 5.1(c).

          "Collateral" has the meaning specified in Section 2.1(a) of the Pledge
     Agreement.

          "Collateral Agent" means State Street Bank and Trust Company, a
     Massachusetts trust company, as Collateral Agent under the Pledge Agreement
     until a successor Collateral Agent shall have become such pursuant to the
     applicable provisions of the Pledge Agreement, and thereafter "Collateral
     Agent" shall mean the Person who is then the Collateral Agent thereunder.

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          "Collateral Substitution" has the meaning specified in Section
     3.13(a).

          "Common Shares" means the Common Shares, par value $0.01 per share, of
     the Company.

          "Company" means the Person named as the "Company" in the first
     paragraph of this Agreement until a successor shall have become such
     pursuant to the applicable provisions of this Agreement, and thereafter
     "Company" shall mean such successor.

          "Constituent Person" has the meaning specified in Section 5.6(b).

          "Contract Adjustment Payments" means, in the case of Normal Units and
     Stripped Units, the amount payable by the Company in respect of each
     Purchase Contract constituting a part of such Unit, which amount shall be
     equal to [   ]% per year of the Stated Amount, in each case computed (i)
     for any full quarterly period on the basis of a 360-day year of twelve
     30-day months and (ii) for any period shorter than a full quarterly period,
     on the basis of a 30-day month, and for periods of less than a month, on
     the basis of the actual number of days elapsed per 30-day month, plus any
     Deferred Contract Adjustment Payments accrued pursuant to Section 5.3.

          "Corporate Trust Office" means the corporate trust office of the Agent
     at which, at any particular time, its corporate trust business shall be
     principally administered, which office at the date hereof is located at 450
     West 33rd Street, New York, New York 10001, Attention: Institutional Trust
     Services.

          "Coupon Rate" means the percentage rate per annum at which each Note
     will bear interest initially.

          "Current Market Price" has the meaning specified in Section 5.6(a)(8).

          "Custodial Agent" means State Street Bank and Trust Company, a
     Massachusetts trust company, as Custodial Agent under the Pledge Agreement
     until a successor Custodial Agent shall have become such pursuant to the
     applicable provisions of the Pledge Agreement, and thereafter "Custodial
     Agent" shall mean the Person who is then the Custodial Agent thereunder.

          "Default" means a default by the Company in any of its obligations
     under this Agreement.

          "Deferred Contract Adjustment Payments" has the meaning specified in
     Section 5.3(a).

          "Depositary" means, initially, DTC, until another Clearing Agency
     becomes its successor.

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          "DTC" means The Depository Trust Company, the initial Clearing Agency.

          "Early Settlement" has the meaning specified in Section 5.9(a).

          "Early Settlement Amount" has the meaning specified in Section 5.9(a).

          "Early Settlement Date" has the meaning specified in Section 5.9(a).

          "Early Settlement Rate" has the meaning specified in Section 5.9(b).

          "Exchange Act" means the Securities Exchange Act of 1934 and any
     statute successor thereto, in each case as amended from time to time, and
     the rules and regulations promulgated thereunder.

          "Expiration Date" has the meaning specified in Section 1.4(f).

          "Expiration Time" has the meaning specified in Section 5.6(a)(6).

          "Failed Remarketing" has the meaning specified in Section 5.4(b)(ii).

          "Fair Market Value" with respect to securities distributed in a
     Spin-Off means (a) in the case of any Spin-Off that is effected
     simultaneously with an Initial Public Offering of such securities, the
     initial public offering price of those securities and (b) in the case of
     any other Spin-Off, (i) the average of the Sale Price of those securities
     over the first ten Trading Days after the effective date of such Spin-Off
     or (ii) if the Sale Price is required to be defined without regard to the
     price on any Trading Days, the Sale Price as of the effective date of such
     Spin-Off.

          "First Supplemental Indenture" means the First Supplemental Indenture,
     dated as of *, 2002, to the Indenture among Platinum Underwriters Finance,
     Inc., the Company and the Trustee.

          "Global Certificate" means a Certificate that evidences all or part of
     the Units and is registered in the name of a Depositary or a nominee
     thereof.

          "Holder" means the Person in whose name the Unit evidenced by a Normal
     Units Certificate and/or a Stripped Units Certificate is registered in the
     related Normal Units Register and/or the Stripped Units Register, as the
     case may be.

          "Indenture" means the Indenture, dated as of *, 2002, among Platinum
     Underwriters Finance, Inc., the Company and the Trustee pursuant to which
     the Notes are to be issued, as originally executed and delivered and as it
     may from time to time be supplemented or amended by one or more indentures

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     supplemental thereto entered into pursuant to the applicable provisions
     thereof and shall include the terms of a particular series established as
     contemplated thereof.

          "Initial Public Offering" with respect to a Spin-Off means the first
     time securities of the same class or type as the securities being
     distributed in such Spin-Off are bona fide offered to the public for cash.

          "Issuer Order" or "Issuer Request" means a written order or request
     signed in the name of the Company by the Chief Executive Officer, the Chief
     Financial Officer, the President, any Vice-President, the Treasurer, any
     Assistant Treasurer, the Secretary or any Assistant Secretary (or other
     officer performing similar functions) of the Company and delivered to the
     Agent.

          "Last Failed Remarketing" has the meaning specified in Section
     5.4(b)(ii).

          "Merger Early Settlement" has the meaning specified in Section
     5.10(a).

          "Merger Early Settlement Amount" has the meaning specified in Section
     5.10(b).

          "Merger Early Settlement Date" has the meaning specified in Section
     5.10(a)(i).

          "Non-electing Share" has the meaning specified in Section 5.6(b).

          "Normal Unit" means the collective rights and obligations of a Holder
     of a Normal Units Certificate in respect of a 1/40 undivided beneficial
     interest in a Note or the appropriate Treasury Consideration, as the case
     may be, subject in each case to the Pledge thereof, and the related
     Purchase Contract.

          "Normal Units Certificate" means a certificate evidencing the rights
     and obligations of a Holder in respect of the number of Normal Units
     specified on such certificate, substantially in the form of Exhibit A
     hereto.

          "Normal Units Register" and "Normal Units Registrar" have the
     respective meanings specified in Section 3.5(a).

          "Notes" means the *% Senior Guaranteed Notes due * 2007 of Platinum
     Underwriters Finance, Inc. issued under the Indenture and guaranteed by the
     Company.

          "NYSE" has the meaning specified in Section 5.1(c).

          "Officers' Certificate" means a certificate signed by the Chief
     Executive Officer, the Chief Financial Officer, the President or any
     Vice-President, and by

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     the Treasurer, any Assistant Treasurer, the Secretary or any Assistant
     Secretary (or other officer performing similar functions) of the Company
     and delivered to the Agent.

          "Opinion of Counsel" means an opinion in writing signed by legal
     counsel, who may be an employee of or counsel to the Company or an
     Affiliate of the Company and who shall be reasonably acceptable to the
     Agent.

          "Opt-out Treasury Consideration" has the meaning specified in Section
     5.4(b)(iv).

          "Outstanding Units" means, as of the date of determination, all Normal
     Units or Stripped Units evidenced by Certificates theretofore
     authenticated, executed and delivered under this Agreement, except:

               (i)     If a Termination Event has occurred, (A) Stripped Units
          and (B) Normal Units for which the related Notes or the appropriate
          Treasury Consideration, as the case may be, has been theretofore
          deposited with the Agent in trust for the Holders of such Normal
          Units;

               (ii)    Normal Units and Stripped Units evidenced by Certificates
          theretofore cancelled by the Agent or delivered to the Agent for
          cancellation or deemed cancelled pursuant to the provisions of this
          Agreement; and

               (iii)   Normal Units and Stripped Units evidenced by Certificates
          in exchange for or in lieu of which other Certificates have been
          authenticated, executed on behalf of the Holder and delivered pursuant
          to this Agreement, other than any such Certificate in respect of which
          there shall have been presented to the Agent proof satisfactory to it
          that such Certificate is held by a protected purchaser in whose hands
          the Normal Units or Stripped Units evidenced by such Certificate are
          valid obligations of the Company;

     provided, that in determining whether the Holders of the requisite number
     of the Normal Units or Stripped Units have given any request, demand,
     authorization, direction, notice, consent or waiver hereunder, Normal Units
     or Stripped Units owned by the Company or any Affiliate of the Company
     shall be disregarded and deemed not to be outstanding, except that, in
     determining whether the Agent shall be protected in relying upon any such
     request, demand, authorization, direction, notice, consent or waiver, only
     Normal Units or Stripped Units which a Responsible Officer of the Agent
     knows to be so owned shall be so disregarded. Normal Units or Stripped
     Units so owned which have been pledged in good faith may be regarded as
     Outstanding Units if the pledgee establishes to the satisfaction of the
     Agent the pledgee's right so to act with respect to such Normal Units or

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     Stripped Units and that the pledgee is not the Company or any Affiliate of
     the Company.

          "Payment Date" means each *, *, * and *, commencing *, 2002 and ending
     on * , 2005.

          "Person" means any individual, corporation, limited liability company,
     partnership, joint venture, association, joint-stock company, trust,
     unincorporated organization or government or any agency or political
     subdivision thereof.

          "Platinum Underwriters Finance" means Platinum Underwriters Finance,
     Inc., a Delaware corporation.

          "Pledge" means the pledge under the Pledge Agreement of the Notes, the
     Treasury Securities or the appropriate Treasury Consideration, in each case
     constituting a part of the Units, property, cash, securities, financial
     assets and security entitlements of the Collateral Account (as defined in
     the Pledge Agreement) and any proceeds of any of the foregoing.

          "Pledge Agreement" means the Pledge Agreement, dated as of the date
     hereof, by and among the Company, the Collateral Agent, the Custodial
     Agent, the Securities Intermediary and the Agent, on its own behalf and as
     attorney-in-fact for the Holders from time to time of the Units.

          "Pledged Notes" has the meaning set forth in Section 2.1(c) of the
     Pledge Agreement.

          "Pledged Treasury Consideration" has the meaning set forth in Section
     2.1(c) of the Pledge Agreement.

          "Pledged Treasury Securities" has the meaning set forth in Section
     2.1(c) of the Pledge Agreement.

          "Predecessor Certificate" means a Predecessor Normal Units Certificate
     or a Predecessor Stripped Units Certificate.

          "Predecessor Normal Units Certificate" of any particular Normal Units
     Certificate means every previous Normal Units Certificate evidencing all or
     a portion of the rights and obligations of the Company and the Holder under
     the Normal Units evidenced thereby; and, for the purposes of this
     definition, any Normal Units Certificate authenticated and delivered under
     Section 3.10 in exchange for or in lieu of a mutilated, destroyed, lost or
     stolen Normal Units Certificate shall be deemed to evidence the same rights
     and obligations of the Company and the Holder as the mutilated, destroyed,
     lost or stolen Normal Units Certificate.

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          "Predecessor Stripped Units Certificate" of any particular Stripped
     Units Certificate means every previous Stripped Units Certificate
     evidencing all or a portion of the rights and obligations of the Company
     and the Holder under the Stripped Units evidenced thereby; and, for the
     purposes of this definition, any Stripped Units Certificate authenticated
     and delivered under Section 3.10 in exchange for or in lieu of a mutilated,
     destroyed, lost or stolen Stripped Units Certificate shall be deemed to
     evidence the same rights and obligations of the Company and the Holder as
     the mutilated, destroyed, lost or stolen Stripped Units Certificate.

          "Prepayment Event" has the meaning specified in Section 4.5.

          "Prepayment Treasury Consideration" means, with respect to a Normal
     Unit, a 1/40, or 2.5%, undivided beneficial ownership interest in a
     zero-coupon U.S. Treasury security (CUSIP Number *) maturing on *, 2005
     that will pay $1,000 on such maturity date.

          "Purchase Contract," when used with respect to any Unit, means the
     contract forming a part of such Unit and obligating the Company to sell and
     the Holder of such Unit to purchase Common Shares on the terms and subject
     to the conditions set forth in Article Five.

          "Purchase Contract Settlement Fund" has the meaning specified in
     Section 5.5.

          "Purchase Price" has the meaning specified in Section 5.1(a).

          "Purchased Shares" has the meaning specified in Section 5.6(a)(6).

          "Quotation Agent" means Goldman, Sachs & Co. or any of its successors
     or any other primary U.S. government securities dealer in New York City
     selected by the Company.

          "Record Date" for the payment of a distribution payable on any Payment
     Date means, as to any Global Certificate, the Business Day next preceding
     such Payment Date, and as to any other Certificate, the 15th calendar day
     preceding such Payment Date.

          "Redemption Price" means, for each Note, the product of (i) the
     principal amount of such Note and (ii) a fraction whose numerator is the
     applicable Treasury Portfolio Purchase Price and whose denominator is the
     applicable Tax Event Redemption Principal Amount.

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          "Register" means the Normal Units Register and the Stripped Units
     Register, as applicable.

          "Registrar" means the Normal Units Registrar and the Stripped Units
     Registrar, as applicable.

          "Remarketing Agent" has the meaning specified in Section 5.4(b)(i).

          "Remarketing Agreement" means the Remarketing Agreement to be entered
     into by and among the Company, Platinum Underwriters Finance, the
     Remarketing Agent and the Agent.

          "Remarketing Date" means the third Business Day preceding *, 2005.

          "Remarketing Fee" has the meaning specified in Section 5.4(b)(i).

          "Remarketing Period" means each of (i) the three Business Day period
     beginning on the Remarketing Date and ending after the two immediately
     following Business Days; (ii) the three Business Day period immediately
     preceding *, 2005; and (iii) the third Business Day immediately preceding
     the Share Purchase Date.

          "Remarketing Rate" means the percentage rate per year at which each
     Note will bear interest on and following the Reset Date.

          "Remarketing Value" means the sum of

               (i)     the value at the Remarketing Date or any Subsequent
          Remarketing Date, as the case may be, of U.S. Treasury securities that
          will pay, on or prior to the Share Purchase Date, an amount of cash
          equal to the interest payment scheduled to be payable on that date on
          the Note, assuming for that purpose, even if not true, that the
          interest rate on the Note is equal to the Coupon Rate, and

               (ii)    the value at the Remarketing Date or any Subsequent
          Remarketing Date, as the case may be, of U.S. Treasury securities that
          will pay, on or prior to the Share Purchase Date, an amount of cash
          equal to the Stated Amount of such Note;

     provided that for purposes of clauses (i) and (ii) above, the Remarketing
     Value shall be calculated on the assumptions that (x) the U.S. Treasury
     securities are highly liquid and mature on or within 35 days prior to the
     Share Purchase Date, as determined in good faith by the Remarketing Agent
     in a manner intended to minimize the cash value of the U.S. Treasury
     securities, and (y) the U.S. Treasury securities are valued based on the
     ask-side price of such U.S. Treasury securities at a time between 9:00 a.m.
     and 11:00 a.m., New York City time, selected by the

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     Remarketing Agent, on the Remarketing Date or any Subsequent Remarketing
     Date, as the case may be, as determined on a third-day settlement basis by
     a reasonable and customary means selected in good faith by the Remarketing
     Agent, plus accrued interest to that date.

          "Reorganization Event" has the meaning specified in Section 5.6(b).

          "Reset Date" means the date following the Remarketing Date or a
     Subsequent Remarketing Date, as applicable, on which the trades in a
     successful remarketing of the Notes, pursuant to the provisions of Section
     5.4, settle.

          "Responsible Officer" means, when used with respect to the Agent, any
     officer within the Institutional Trust Services unit of the Agent (or any
     successor unit or department of the Agent) located at the Corporate Trust
     Office of the Agent who has direct responsibility for the administration of
     this Agreement and, for the purposes of Section 7.1(b)(2), shall also
     include any officer of the Agent to whom any corporate trust matter is
     referred because of such person's knowledge of and familiarity with the
     particular subject.

          "Sale Price" of any securities distributed in a Spin-Off on any
     Trading Day means the closing sale price per share (or if no closing sale
     price is reported, the average of the bid and ask prices or, if more than
     one in either case, the average of the average bid and average ask prices)
     on such Trading Day as reported in composite transactions for the principal
     U.S. securities exchange on which such securities are traded or, if such
     securities are not listed on a U.S. national or regional securities
     exchange, as reported by the Nasdaq Stock Market, or if such securities are
     not so reported, the last quoted bid price for such securities in the
     over-the-counter market as reported by the National Quotation Bureau or
     similar organization, or, if such bid price is not available, the market
     value of such securities on such date as determined by a nationally
     recognized independent investment banking firm retained by the Company for
     this purpose.

          "Securities Act" means the Securities Act of 1933 and any statute
     successor thereto, in each case as amended from time to time, and the rules
     and regulations promulgated thereunder.

          "Securities Intermediary" means State Street Bank and Trust Company, a
     Massachusetts trust company, in its capacity as Securities Intermediary
     under the Pledge Agreement, together with its successors in such capacity.

          "Senior Indebtedness" means indebtedness of any kind of the Company
     unless the instrument under which such indebtedness is incurred expressly
     provides that it is in parity or subordinate in right of payment to the
     Contract Adjustment Payments.

          "Separate Notes" has the meaning set forth in the Pledge Agreement.

                                       11
<Page>

          "Settlement Date" means any Early Settlement Date or Merger Early
     Settlement Date or the Share Purchase Date.

          "Settlement Rate" has the meaning specified in Section 5.1(a).

          "Share Purchase Date" means *, 2005.

          "Spin-Off" means a dividend or other distribution on the Common Shares
     or shares of Capital Stock of any class or series, or similar equity
     interests, of or relating to a subsidiary or other business unit of the
     Company.

          "Stated Amount" means, with respect to any one Normal Unit or Stripped
     Unit, $25, and with respect to any one Note, $1,000.

          "Stripped Unit" means the collective rights and obligations of a
     Holder of a Stripped Units Certificate in respect of a 1/40 undivided
     beneficial interest in a Treasury Security, subject to the Pledge thereof,
     and the related Purchase Contract.

          "Stripped Units Certificate" means a certificate evidencing the rights
     and obligations of a Holder in respect of the number of Stripped Units
     specified on such certificate, substantially in the form of Exhibit B
     hereto.

          "Stripped Units Register" and "Stripped Units Registrar" have the
     respective meanings specified in Section 3.5(a).

          "Subsequent Remarketing" has the meaning specified in Section
     5.4(b)(ii).

          "Subsequent Remarketing Date" means any date during any Remarketing
     Period on which the Remarketing Agent attempts a Subsequent Remarketing in
     accordance with Section 5.4 hereof.

          "Tax Event" means the receipt by the Company of an opinion of a
     nationally recognized tax counsel experienced in such matters to the effect
     that there is more than an insubstantial risk that interest payable by
     Platinum Underwriters Finance on the Notes on the next Payment Date will
     not be deductible, in whole or in part, by Platinum Underwriters Finance
     for United States federal income tax purposes, as a result of (a) any
     amendment to, or change (including any announced proposed change) in, the
     laws (or any regulations thereunder) of the United States or any political
     subdivision or taxing authority thereof or therein affecting taxation
     (other than any such amendment, change or announced proposed change to the
     so-called "earnings stripping" provisions of Section 163(j) of the Internal
     Revenue Code, which limit the ability of U.S. corporations to deduct
     interest on certain debt owed to or guaranteed by related foreign persons),
     (b) any amendment to or change in an official interpretation or application
     of such laws or regulations by any legislative body, court,

                                       12
<Page>

     governmental agency or regulatory authority or (c) any official
     interpretation, pronouncement or application that provides for a position
     with respect to such laws or regulations that differs from the generally
     accepted position on _________, 2002, which amendment, change or proposed
     change is effective or which interpretation or pronouncement is announced
     on or after __________, 2002.

          "Tax Event Redemption" means, if a Tax Event shall occur and be
     continuing, the redemption of the Notes, at the option of Platinum
     Underwriters Finance, in whole but not in part, on not less than 30 days
     nor more than 60 days' prior written notice.

          "Tax Event Redemption Date" means the date upon which a Tax Event
     Redemption is to occur.

          "Tax Event Redemption Principal Amount" means (i) in the case of a Tax
     Event Redemption Date occurring prior to a successful remarketing of the
     Notes pursuant to Section 5.4 hereof, the aggregate principal amount of
     Notes included in Normal Units outstanding on such date, and (ii) in the
     case of a Tax Event Redemption Date occurring after either a successful
     remarketing of the Notes pursuant to Section 5.4 hereof or the Share
     Purchase Date, the aggregate principal amount of the Notes outstanding on
     such date.

          "Tax Event Redemption Treasury Consideration" means, with respect to a
     Normal Unit and the U.S. Treasury securities in the Treasury Portfolio,
     (A) a 1/40, or 2.5%, undivided beneficial ownership interest in a $1,000
     principal or interest amount of a principal or interest strip in a U.S.
     Treasury security included in such Treasury Portfolio which matures on or
     prior to the Share Purchase Date and (B) for each scheduled interest
     Payment Date on the Notes that occurs after the Tax Event Redemption Date
     and on or before the Share Purchase Date a *% undivided beneficial
     ownership interest in a $1,000 principal or interest of a principal or
     interest strip in a U.S. Treasury security included in the Treasury
     Portfolio that matures on or prior to that interest Payment Date.

          "Termination Date" means the date, if any, on which a Termination
     Event occurs.

          "Termination Event" means the occurrence of any of the following
     events:

               (i)     at any time on or prior to the Share Purchase Date, a
          judgment, decree or court order shall have been entered granting
          relief under the Bankruptcy Code or any other similar foreign, federal
          or state law, adjudicating the Company to be insolvent, or approving
          as properly filed a petition seeking reorganization or liquidation of
          the Company, and, unless such judgment, decree or order shall have
          been entered within 60

                                       13
<Page>

          days prior to the Share Purchase Date, such decree or order shall have
          continued undischarged and unstayed for a period of 60 days;

               (ii)    at any time on or prior to the Share Purchase Date, a
          judgment, decree or court order for the appointment of a receiver or
          liquidator or trustee or assignee in bankruptcy or insolvency of the
          Company or of its property substantially in its entirety, or for the
          winding up or liquidation of its affairs, shall have been entered,
          and, unless such judgment, decree or order shall have been entered
          within 60 days prior to the Share Purchase Date, such judgment, decree
          or order shall have continued undischarged and unstayed for a period
          of 60 days; or

               (iii)   at any time on or prior to the Share Purchase Date, the
          Company shall file a petition for relief under the Bankruptcy Code or
          any other similar foreign, federal or state law, or shall consent to
          the filing of a bankruptcy proceeding against it, or shall file a
          petition or answer or consent seeking reorganization or liquidation
          under the Bankruptcy Code or any other similar foreign, federal or
          state law, or shall consent to the filing of any such petition, or
          shall consent to the appointment of a receiver or liquidator or
          trustee or assignee in bankruptcy or insolvency of it or of its
          property substantially in its entirety, or shall make an assignment
          for the benefit of creditors, or shall admit in writing its inability
          to pay its debts generally as they become due.

          "Threshold Appreciation Price" has the meaning specified in Section
     5.1(a).

          "TIA" means the Trust Indenture Act of 1939, and any statute successor
     thereto, in each case as amended from time to time, and the rules and
     regulations promulgated thereunder.

          "Trading Day" has the meaning specified in Section 5.1(c).

          "Treasury Consideration" means the Agent-purchased Treasury
     Consideration, the Opt-out Treasury Consideration, the Prepayment Treasury
     Consideration or the Tax Event Redemption Treasury Consideration.

          "Treasury Portfolio" means: (i) if a Tax Event Redemption occurs prior
     to a successful remarketing of the Notes pursuant to the provisions of
     Section 5.4 hereof, a portfolio of (A) zero-coupon U.S. Treasury securities
     consisting of principal or interest strips of U.S. Treasury securities that
     mature on or prior to the Share Purchase Date in an aggregate amount equal
     to the applicable Tax Event Redemption Principal Amount and (B) with
     respect to each scheduled interest Payment Date on the Notes that occurs
     after the Tax Event Redemption Date and on or before the Share Purchase
     Date, interest or principal strips of U.S. Treasury securities that mature
     on or prior to such interest Payment Date in an aggregate

                                       14
<Page>

     amount equal to the aggregate interest payment that would be due on the
     applicable Tax Event Redemption Principal Amount on such date if the
     interest rate of the Notes were not reset on the Reset Date, and (ii)
     solely for purposes of determining the Treasury Portfolio Purchase Price in
     the case of a Tax Event Redemption Date occurring after either of a
     successful remarketing of the Notes or the Share Purchase Date, a portfolio
     of (A) zero-coupon U.S. Treasury securities consisting of principal or
     interest strips of U.S. Treasury securities that mature on or prior to *,
     2007 in an aggregate amount equal to the applicable Tax Event Redemption
     Principal Amount and (B) with respect to each scheduled interest Payment
     Date on the Notes that occurs after the Tax Event Redemption Date and on or
     before *, 2007, interest or principal strips of U.S. Treasury securities
     that mature on or prior to such interest Payment Date in an aggregate
     amount equal to the aggregate interest payment that would be due on the
     applicable Tax Event Redemption Principal Amount.

          "Treasury Portfolio Purchase Price" means the lowest aggregate price
     quoted by a primary U.S. government securities dealer in New York City to
     the Quotation Agent on the third Business Day immediately preceding the Tax
     Event Redemption Date for the purchase of the Treasury Portfolio for
     settlement on the Tax Event Redemption Date.

          "Treasury Security" means a zero-coupon U.S. Treasury security (CUSIP
     Number *) maturing on *, 2005 that will pay $1,000 on such maturity date.

          "Trustee" means JPMorgan Chase Bank, a New York banking corporation,
     as trustee under the Indenture and the First Supplemental Indenture, or any
     successor thereto.

          "Underwriting Agreement" means the Underwriting Agreement relating to
     the Units dated *, 2002 among the Company, Platinum Underwriters Finance,
     Inc., The St. Paul Companies, Inc. and the underwriters named therein.

          "Unit" means a Normal Unit or a Stripped Unit.

          "Vice-President" means any vice-president, whether or not designated
     by a number or a word or words added before or after the title
     "vice-president."

          SECTION 1.2 COMPLIANCE CERTIFICATES AND OPINIONS.

          Except as otherwise expressly provided by this Agreement, upon any
application or request by the Company to the Agent to take any action under any
provision of this Agreement, the Company shall furnish to the Agent an Officers'
Certificate stating that all conditions precedent, if any, provided for in this
Agreement relating to the proposed action have been complied with and, if
requested by the Agent, an Opinion of Counsel stating that, in the opinion of
such counsel, all such conditions precedent, if any, have been complied with,
except that in the case of any such

                                       15
<Page>

application or request as to which the furnishing of such documents is
specifically required by any provision of this Agreement relating to such
particular application or request, no additional certificate or opinion need be
furnished.

          Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Agreement shall include:

          (a)  a statement that the individual signing such certificate or
     opinion has read such covenant or condition and the definitions herein
     relating thereto;

          (b)  a brief statement as to the nature and scope of the examination
     or investigation upon which the statements or opinions contained in such
     certificate or opinion are based;

          (c)  a statement that, in the opinion of such individual, he or she
     has made such examination or investigation as is necessary to enable such
     individual to express an informed opinion as to whether or not such
     covenant or condition has been complied with; and

          (d)  a statement as to whether, in the opinion of such individual
     based on his or her knowledge, such condition or covenant has been complied
     with.

          SECTION 1.3 FORM OF DOCUMENTS DELIVERED TO AGENT.

          (a)  In any case where several matters are required to be certified
     by, or covered by an opinion of, any specified Person, it is not necessary
     that all such matters be certified by, or covered by the opinion of, only
     one such Person, or that they be so certified or covered by only one
     document, but one such Person may certify or give an opinion with respect
     to some matters and one or more other such Persons as to other matters, and
     any such Person may certify or give an opinion as to such matters in one or
     several documents.

          (b)  Any certificate or opinion of an officer of the Company may be
     based, insofar as it relates to legal matters, upon a certificate or
     opinion of, or representations by, counsel, unless such officer knows, or
     in the exercise of reasonable care should know, that the certificate or
     opinion or representations with respect to the matters upon which his
     certificate or opinion is based are erroneous. Any such certificate or
     Opinion of Counsel may be based, insofar as it relates to factual matters,
     upon a certificate or opinion of, or representations by, an officer or
     officers of the Company stating that the information with respect to such
     factual matters is in the possession of the Company unless such counsel
     knows, or in the exercise of reasonable care should know, that the
     certificate or opinion or representations with respect to such matters are
     erroneous.

                                       16
<Page>

          Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Agreement, they may, but need not, be consolidated and
form one instrument.

          SECTION 1.4 ACTS OF HOLDERS; RECORD DATES.

          (a)  Any request, demand, authorization, direction, notice, consent,
     waiver or other action provided by this Agreement to be given or taken by
     Holders may be embodied in and evidenced by one or more instruments of
     substantially similar tenor signed by such Holders in person or by an agent
     duly appointed in writing; and, except as herein otherwise expressly
     provided, such action shall become effective when such instrument or
     instruments are delivered to the Agent and, where it is hereby expressly
     required, to the Company. Such instrument or instruments (and the action
     embodied therein and evidenced thereby) are herein sometimes referred to as
     the "Act" of the Holders signing such instrument or instruments. Proof of
     execution of any such instrument or of a writing appointing any such agent
     shall be sufficient for any purpose of this Agreement and (subject to
     Section 7.1) conclusive in favor of the Agent and the Company, if made in
     the manner provided in this Section.

          (b)  The fact and date of the execution by any Person of any such
     instrument or writing may be proved in any manner which the Agent deems
     sufficient.

          (c)  The ownership of Units shall be proved by the Normal Units
     Register or the Stripped Units Register, as the case may be.

          (d)  Any request, demand, authorization, direction, notice, consent,
     waiver or other Act of the Holder of any Certificate shall bind every
     future Holder of the same Certificate and the Holder of every Certificate
     issued upon the registration of transfer thereof or in exchange therefor or
     in lieu thereof in respect of anything done, omitted or suffered to be done
     by the Agent or the Company in reliance thereon, whether or not notation of
     such action is made upon such Certificate.

          (e)  The Company may set any day as a record date for the purpose of
     determining the Holders of Outstanding Units entitled to give, make or take
     any request, demand, authorization, direction, notice, consent, waiver or
     other action provided or permitted by this Agreement to be given, made or
     taken by Holders of Units. If any record date is set pursuant to this
     paragraph, the Holders of the Outstanding Normal Units and the Outstanding
     Stripped Units, as the case may be, on such record date, and no other
     Holders, shall be entitled to take the relevant action with respect to the
     Normal Units or the Stripped Units, as the case may be, whether or not such
     Holders remain Holders after such record date; provided that no such action
     shall be effective hereunder unless taken on or prior to the applicable
     Expiration Date by Holders of the requisite number of Outstanding

                                       17
<Page>

     Units on such record date. Nothing in this paragraph shall be construed to
     prevent the Company from setting a new record date for any action for which
     a record date has previously been set pursuant to this paragraph (whereupon
     the record date previously set shall automatically and with no action by
     any Person be cancelled and of no effect), and nothing in this paragraph
     shall be construed to render ineffective any action taken by Holders of the
     requisite number of Outstanding Units on the date such action is taken.
     Promptly after any record date is set pursuant to this paragraph, the
     Company, at its own expense, shall cause notice of such record date, the
     proposed action by Holders and the applicable Expiration Date to be given
     to the Agent in writing and to each Holder of Units in the manner set forth
     in Section 1.6.

          (f)  With respect to any record date set pursuant to this Section, the
     Company may designate any date as the "Expiration Date" and from time to
     time may change the Expiration Date to any earlier or later day; provided
     that no such change shall be effective unless notice of the proposed new
     Expiration Date is given to the Agent in writing, and to each Holder of
     Units in the manner set forth in Section 1.6, on or prior to the existing
     Expiration Date. If an Expiration Date is not designated with respect to
     any record date set pursuant to this Section, the Company shall be deemed
     to have initially designated the 180th day after such record date as the
     Expiration Date with respect thereto, subject to its right to change the
     Expiration Date as provided in this paragraph. Notwithstanding the
     foregoing, no Expiration Date shall be later than the 180th day after the
     applicable record date.

          SECTION 1.5 NOTICES.

          Any request, demand, authorization, direction, notice, consent, waiver
or Act of Holders or other document provided or permitted by this Agreement to
be made upon, given or furnished to, or filed with:

          (a)  the Agent by any Holder or by the Company shall be sufficient for
     every purpose hereunder (unless otherwise herein expressly provided) if
     made, given, furnished or filed in writing and personally delivered,
     mailed, first-class postage prepaid, telecopied or delivered by overnight
     air courier guaranteeing next day delivery, addressed to and received by
     the Agent at JPMorgan Chase Bank, 450 West 33rd Street, 15th Floor, New
     York, NY 10001, Attention: Institutional Trust Services, telecopy: (212)
     946-8154, or at any other address furnished in writing by the Agent to the
     Holders and the Company; or

          (b)  the Company by the Agent or by any Holder shall be sufficient for
     every purpose hereunder (unless otherwise herein expressly provided) if
     made, given, furnished or filed in writing and personally delivered,
     mailed, first-class postage prepaid, telecopied or delivered by overnight
     air courier guaranteeing at least second day delivery, addressed to and
     received by the Company at Platinum

                                       18
<Page>

     Underwriters Holdings, Ltd. *, Attention: *, telecopy: *, or at any other
     address furnished in writing to the Agent by the Company; or

          (c)  the Collateral Agent by the Agent, the Company or any Holder
     shall be sufficient for every purpose hereunder (unless otherwise herein
     expressly provided) if made, given, furnished or filed in writing and
     personally delivered, mailed, first-class postage prepaid, telecopied or
     delivered by overnight air courier guaranteeing next day delivery,
     addressed to and received by the Collateral Agent at State Street Bank and
     Trust Company, Goodwin Square, 225 Asylum Street, Hartford, CT 06103,
     Attention: Corporate Trust Administration, telecopy: (860) 244-1889, or at
     any other address furnished in writing by the Collateral Agent to the
     Agent, the Company and the Holders; or

          (d)  the Trustee by the Company shall be sufficient for every purpose
     hereunder (unless otherwise herein expressly provided) if made, given,
     furnished or filed in writing and personally delivered, mailed, first-class
     postage prepaid, telecopied or delivered by overnight air courier
     guaranteeing next day delivery, addressed to and received by the Trustee at
     JPMorgan Chase Bank, 450 West 33rd Street, 15th Floor, New York, NY 10001,
     Attention: Institutional Trust Services, telecopy: (212) 946-8154, or at
     any other address furnished in writing by the Trustee to the Company.

          SECTION 1.6 NOTICE TO HOLDERS; WAIVER.

          (a)  Where this Agreement provides for notice to Holders of any event,
     such notice shall be sufficiently given (unless otherwise herein expressly
     provided) if in writing and mailed, first-class postage prepaid, to each
     Holder affected by such event, at its address as it appears in the
     applicable Register, not later than the latest date, and not earlier than
     the earliest date, prescribed for the giving of such notice. In any case
     where notice to Holders is given by mail, neither the failure to mail such
     notice, nor any defect in any notice so mailed, to any particular Holder
     shall affect the sufficiency of such notice with respect to other Holders.
     Where this Agreement provides for notice in any manner, such notice may be
     waived in writing by the Person entitled to receive such notice, either
     before or after the event, and such waiver shall be the equivalent of such
     notice. Waivers of notice by Holders shall be filed with the Agent, but
     such filing shall not be a condition precedent to the validity of any
     action taken in reliance upon such waiver.

          (b)  In case by reason of the suspension of regular mail service or by
     reason of any other cause it shall be impracticable to give such notice by
     mail, then such notification as shall be made with the approval of the
     Agent shall constitute a sufficient notification for every purpose
     hereunder.

                                       19
<Page>

          SECTION 1.7 EFFECT OF HEADINGS AND TABLE OF CONTENTS.

          The Article and Section headings herein and the Table of Contents are
for convenience only and shall not affect the construction hereof.

          SECTION 1.8 SUCCESSORS AND ASSIGNS.

          All covenants and agreements in this Agreement by the Company shall
bind its successors and assigns, whether so expressed or not.

          SECTION 1.9 SEPARABILITY CLAUSE.

          If any provision hereof is invalid and unenforceable in any
jurisdiction, then, to the fullest extent permitted by law, (i) the other
provisions hereof shall remain in full force and effect in such jurisdiction and
shall be liberally construed in order to carry out the intentions of the parties
hereto as nearly as may be possible and (ii) the invalidity or unenforceability
of any provision hereof in any jurisdiction shall not affect the validity or
enforceability of such provision in any other jurisdiction.

          SECTION 1.10 BENEFITS OF AGREEMENT.

          Nothing in this Agreement or in the Units, express or implied, shall
give to any Person, other than the parties hereto and their successors hereunder
and, to the extent provided hereby, the Holders, any benefits or any legal or
equitable right, remedy or claim under this Agreement. The Holders from time to
time shall be beneficiaries of this Agreement and shall be bound by all of the
terms and conditions hereof and of the Units evidenced by their Certificates by
their acceptance of delivery of such Certificates.

          SECTION 1.11 GOVERNING LAW; JURISDICTION.

          (a)  This Agreement and the Units shall be governed by, deemed to be a
     contract under, and construed in accordance with, the laws of the State of
     New York, without regard to the conflicts of laws principles thereof.

          (b)  The Company irrevocably (i) agrees that any legal suit, action or
     proceeding against it arising out of or based on this Agreement or the
     transactions contemplated hereby or the Units may be instituted in any
     United States Federal or State court in the Borough of Manhattan, The City
     of New York (a "New York Court"), (ii) waives, to the fullest extent it may
     effectively do so, any objection which it may now or hereafter have to the
     laying of venue of any such proceeding, and (iii) submits to the
     non-exclusive jurisdiction of such courts in any such suit, action or
     proceeding. The Company irrevocably waives any immunity to jurisdiction to
     which it may otherwise be entitled or become entitled (including sovereign
     immunity, immunity to pre-judgment attachment, post-judgment attachment and
     execution) in any legal suit, action or proceeding against it arising out
     of or based on this Agreement or the transactions contemplated hereby or
     the

                                       20
<Page>

     Units which is instituted in any New York Court or in any foreign court. To
     the fullest extent permitted by law, the Company hereby waives any
     objection to the enforcement by competent foreign court of any judgment
     validly obtained in any such proceeding. The Company designates and
     appoints CT Corporation System in New York City as its authorized agent
     (the "Authorized Agent") upon which process may be served in any such
     action arising out of or based on this Agreement or the transactions
     contemplated hereby or the Units which may be instituted in any New York
     Court, expressly consents to the jurisdiction of any such court in respect
     of any such action, and waives any other requirements of or objections to
     personal jurisdiction with respect thereto. Such appointment shall be
     irrevocable. The Company represents and warrants that its Authorized Agent
     has agreed to act as such agent for service of process and the Company
     agrees to take any and all action, including the filing of any and all
     documents and instruments, that may be necessary to continue such
     appointment in full force and effect as aforesaid. Service of process upon
     the Authorized Agent and written notice of such service of process to the
     Company shall be deemed, in every respect, effective service of process
     upon the Company.

          SECTION 1.12 LEGAL HOLIDAYS.

          (a)  In any case where any Payment Date shall not be a Business Day,
     then (notwithstanding any other provision of this Agreement or the Normal
     Units Certificates) payments on the Notes shall not be made on such date,
     but such payments shall be made on the next succeeding day which is a
     Business Day with the same force and effect as if made on such Payment
     Date, provided that no interest shall accrue or be payable by the Company
     in respect of such payment for the period from and after any such Payment
     Date, except that if such next succeeding Business Day is in the next
     succeeding calendar year, such payment shall be made on the immediately
     preceding Business Day with the same force and effect as if made on such
     Payment Date.

          (b)  If any date on which Contract Adjustment Payments are to be made
     on the Purchase Contracts is not a Business Day, then payment of the
     Contract Adjustment Payments payable on that date will be made on the next
     succeeding day which is a Business Day, and no interest or additional
     payment will be paid in respect of the delay. However, if that Business Day
     is in the next succeeding calendar year, the payment will be made on the
     immediately preceding Business Day with the same force and effect as if
     made on that Payment Date.

          (c)  In any case where the Share Purchase Date shall not be a Business
     Day, then (notwithstanding any other provision of this Agreement or the
     Certificates), the Purchase Contracts shall not be performed on such date,
     but the Purchase Contracts shall be performed on the next succeeding day
     which is a

                                       21
<Page>

     Business Day with the same force and effect as if performed on the Share
     Purchase Date.

          SECTION 1.13 COUNTERPARTS.

          This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one and the same instrument, and any of
the parties hereto may execute this Agreement by signing any such counterpart.

          SECTION 1.14 INSPECTION OF AGREEMENT.

          A copy of this Agreement shall be available at all reasonable times
during normal business hours at the Corporate Trust Office for inspection by any
Holder.

          SECTION 1.15 APPOINTMENT OF FINANCIAL INSTITUTION AS AGENT FOR THE
COMPANY.

          The Company may appoint a financial institution (which may be the
Collateral Agent) to act as its agent in performing its obligations and in
accepting and enforcing performance of the obligations of the Agent and the
Holders, under this Agreement and the Purchase Contracts, by giving notice of
such appointment in the manner provided in Section 1.5 hereof. Any such
appointment shall not relieve the Company in any way from its obligation
hereunder.

          SECTION 1.16 NO WAIVER.

          No failure on the part of the Company, the Agent, the Collateral
Agent, the Securities Intermediary or any of their respective agents to
exercise, and no course of dealing with respect to, and no delay in exercising,
any right, power or remedy hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise by the Company, the Agent, the Collateral
Agent, the Securities Intermediary or any of their respective agents of any
right, power or remedy hereunder preclude any further exercise thereof or the
exercise of any right, power or remedy. The remedies herein are cumulative and
are not exclusive of any remedies provided by law.

                                   ARTICLE II

                                CERTIFICATE FORMS

          SECTION 2.1 FORMS OF CERTIFICATES GENERALLY.

          (a)  The Normal Units Certificates (including the form of Purchase
     Contract forming part of the Normal Units evidenced thereby) shall be in
     substantially the form set forth in Exhibit A hereto, with such letters,
     numbers or other marks of identification or designation and such legends or
     endorsements printed, lithographed or engraved thereon as may be required
     by the rules of any

                                       22
<Page>

     securities exchange or quotation system on which the Normal Units are
     listed or quoted for trading or any depositary therefor, or as may,
     consistently herewith, be determined by the officers of the Company
     executing such Normal Units Certificates, as evidenced by their execution
     of the Normal Units Certificates.

          (b)  The definitive Normal Units Certificates shall be printed,
     lithographed or engraved on steel engraved borders or may be produced in
     any other manner, all as determined by the officers of the Company
     executing such Normal Units Certificates, consistent with the provisions of
     this Agreement, as evidenced by their execution thereof.

          (c)  The Stripped Units Certificates (including the form of Purchase
     Contracts forming part of the Stripped Units evidenced thereby) shall be in
     substantially the form set forth in Exhibit B hereto, with such letters,
     numbers or other marks of identification or designation and such legends or
     endorsements printed, lithographed or engraved thereon as may be required
     by the rules of any securities exchange or the quotation system on which
     the Stripped Units may be listed or quoted for trading or any depositary
     therefor, or as may, consistently herewith, be determined by the officers
     of the Company executing such Stripped Units Certificates, as evidenced by
     their execution of the Stripped Units Certificates.

          (d)  The definitive Stripped Units Certificates shall be printed,
     lithographed or engraved on steel engraved borders or may be produced in
     any other manner, all as determined by the officers of the Company
     executing such Stripped Units Certificates, consistent with the provisions
     of this Agreement, as evidenced by their execution thereof.

          (e)  Every Global Certificate authenticated, executed on behalf of the
     Holders and delivered hereunder shall bear a legend in substantially the
     following form:

          "THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE MEANING OF THE
          PURCHASE CONTRACT AGREEMENT (AS DEFINED ON THE REVERSE HEREOF) AND IS
          REGISTERED IN THE NAME OF THE CLEARING AGENCY OR A NOMINEE THEREOF.
          THIS CERTIFICATE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
          CERTIFICATE REGISTERED, AND NO TRANSFER OF THIS CERTIFICATE IN WHOLE
          OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN
          SUCH CLEARING AGENCY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED
          CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AGREEMENT.

          [Unless this Certificate is presented by an authorized representative
          of the Depository Trust Company (55 Water Street, New York, New York)
          to

                                       23
<Page>

          the Company or its agent for registration or transfer, exchange or
          payment, and any Certificate issued is registered in the name of Cede
          & Co., or such other name as requested by an authorized representative
          of the Depository Trust Company, and any payment hereon is made to
          Cede & Co., ANY TRANSFER PLEDGE OR OTHER USE HEREOF OR OTHERWISE BY A
          PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has
          an interest herein.]"

          SECTION 2.2 FORM OF AGENT'S CERTIFICATE OF AUTHENTICATION.

          (a)  The form of the Agent's certificate of authentication of the
     Normal Units shall be in substantially the form set forth on the form of
     the Normal Units Certificates.

          (b)  The form of the Agent's certificate of authentication of the
     Stripped Units shall be in substantially the form set forth on the form of
     the Stripped Units Certificates.

                                   ARTICLE III

                                    THE UNITS

          SECTION 3.1 TITLE AND TERMS; DENOMINATIONS.

          (a)  The aggregate number of Normal Units and Stripped Units, if any,
     evidenced by Certificates authenticated, executed on behalf of the Holders
     and delivered hereunder is limited to 5,000,000 (5,750,000 if the
     underwriters' option to purchase additional Normal Units pursuant to the
     Underwriting Agreement is exercised in full), except for Certificates
     authenticated, executed on behalf of the Holder and delivered upon
     registration of transfer of, in exchange for, or in lieu of, other
     Certificates pursuant to Section 3.4, 3.5, 3.10, 3.13, 3.14, 5.9(e),
     5.10(e) or 8.5.

          (b)  The Certificates shall be issuable only in registered form and
     only in denominations of a single Unit and any integral multiple thereof.

          SECTION 3.2 RIGHTS AND OBLIGATIONS EVIDENCED BY THE CERTIFICATES.

          (a)  Each Normal Units Certificate shall evidence the number of Normal
     Units specified therein, with each such Normal Unit representing the
     ownership by the Holder thereof of a 1/40 undivided beneficial interest in
     a Note or the appropriate Treasury Consideration, as the case may be,
     subject to the Pledge of such interest in the Note or the Treasury
     Consideration, as the case may be, by such Holder pursuant to the Pledge
     Agreement, and the rights and obligations of the Holder thereof and the
     Company under one Purchase Contract. The Agent as attorney-in-fact for, and
     on behalf of, the Holder of each Normal

                                       24
<Page>

     Unit shall pledge, pursuant to the Pledge Agreement, the interest in the
     Note or the Treasury Consideration forming a part of such Normal Unit, to
     the Collateral Agent and grant to the Collateral Agent a security interest
     in the right, title, and interest of such Holder in such interest in the
     Note or Treasury Consideration for the benefit of the Company, to secure
     the obligation of such Holder under the related Purchase Contract to
     purchase the Common Shares of the Company.

          (b)  Each Stripped Units Certificate shall evidence the number of
     Stripped Units specified therein, with each such Stripped Unit representing
     the ownership by the Holder thereof of a 1/40 undivided beneficial interest
     in a Treasury Security, subject to the Pledge of such interest in such
     Treasury Security by such Holder pursuant to the Pledge Agreement, and the
     rights and obligations of the Holder thereof and the Company under one
     Purchase Contract. The Agent as attorney-in-fact for, and on behalf of, the
     Holder of each Stripped Unit shall pledge, pursuant to the Pledge
     Agreement, the interest in the Treasury Security forming a part of such
     Stripped Unit, to the Collateral Agent and grant to the Collateral Agent a
     security interest in the right, title, and interest of such Holder in such
     interest in the Treasury Security for the benefit of the Company, to secure
     the obligation of such Holder under the related Purchase Contract to
     purchase the Common Shares of the Company.

          (c)  Prior to the purchase of Common Shares under each Purchase
     Contract, such Purchase Contract shall not entitle the Holder of the
     related Units Certificates to any of the rights of a holder of Common
     Shares, including, without limitation, the right to vote or receive any
     dividends or other payments or to consent or to receive notice as a
     shareholder in respect of the meetings of shareholders or for the election
     of directors of the Company or for any other matter, or any other rights
     whatsoever as a shareholder of the Company.

          SECTION 3.3 EXECUTION, AUTHENTICATION, DELIVERY AND DATING.

          (a)  Subject to the provisions of Sections 3.13 and 3.14, upon the
     execution and delivery of this Agreement, and at any time and from time to
     time thereafter, the Company may deliver Certificates executed by the
     Company to the Agent for authentication, execution on behalf of the Holders
     and delivery, together with its Issuer Order for authentication of such
     Certificates, and the Agent in accordance with such Issuer Order shall
     authenticate, execute on behalf of the Holders and deliver such
     Certificates.

          (b)  The Certificates shall be executed on behalf of the Company by
     the Chief Executive Officer, the Chief Financial Officer, the President,
     any Vice-President, the Treasurer, any Assistant Treasurer, the Secretary
     or any Assistant Secretary (or other officer performing similar functions)
     of the Company and delivered to the Agent. The signature of any of these
     officers on the Certificates may be manual or facsimile.

                                       25
<Page>

          (c)  Certificates bearing the manual or facsimile signatures of
     individuals who were at any time the proper officers of the Company shall
     bind the Company, notwithstanding that such individuals or any of them have
     ceased to hold such offices prior to the authentication and delivery of
     such Certificates or did not hold such offices at the date of such
     Certificates.

          (d)  No Purchase Contract evidenced by a Certificate shall be valid
     until such Certificate has been executed on behalf of the Holder by the
     manual signature of an authorized officer of the Agent, as such Holder's
     attorney-in-fact. Such signature by an authorized officer of the Agent
     shall be conclusive evidence that the Holder of such Certificate has
     entered into the Purchase Contract or Purchase Contracts evidenced by such
     Certificate.

          (e)  Each Certificate shall be dated the date of its authentication.

          (f)  No Certificate shall be entitled to any benefit under this
     Agreement or be valid or obligatory for any purpose unless there appears on
     such Certificate a certificate of authentication substantially in the form
     provided for herein executed by an authorized officer of the Agent by
     manual signature, and such certificate upon any Certificate shall be
     conclusive evidence, and the only evidence, that such Certificate has been
     duly authenticated and delivered hereunder.

          SECTION 3.4 TEMPORARY CERTIFICATES.

          (a)  Pending the preparation of definitive Certificates, the Company
     shall execute and deliver to the Agent, and the Agent shall authenticate,
     execute on behalf of the Holders, and deliver, in lieu of such definitive
     Certificates, temporary Certificates which are in substantially the form
     set forth in Exhibit A or Exhibit B hereto, as the case may be, with such
     letters, numbers or other marks of identification or designation and such
     legends or endorsements printed, lithographed or engraved thereon as may be
     required by the rules of any securities exchange on which the Normal Units
     or Stripped Units, as the case may be, are listed or quoted for trading or
     any depositary transfer, or as may, consistently herewith, be determined by
     the officers of the Company executing such Certificates, as evidenced by
     their execution of the Certificates.

          (b)  If temporary Certificates are issued, the Company will cause
     definitive Certificates to be prepared without unreasonable delay. After
     the preparation of definitive Certificates, the temporary Certificates
     shall be exchangeable for definitive Certificates upon surrender of the
     temporary Certificates at the Corporate Trust Office, at the expense of the
     Company and without charge to the Holder. Upon surrender for cancellation
     of any one or more temporary Certificates, the Company shall execute and
     deliver to the Agent, and the Agent shall authenticate, execute on behalf
     of the Holder, and deliver in exchange therefor, one or more definitive
     Certificates of like tenor and

                                       26
<Page>

     denominations and evidencing a like number of Normal Units or Stripped
     Units, as the case may be, as the temporary Certificate or Certificates so
     surrendered. Until so exchanged, the temporary Certificates shall in all
     respects evidence the same benefits and the same obligations with respect
     to the Normal Units or Stripped Units, as the case may be, evidenced
     thereby as definitive Certificates.

          SECTION 3.5 REGISTRATION; REGISTRATION OF TRANSFER AND EXCHANGE.

          (a)  The Agent shall keep at the Corporate Trust Office a register
     (the "Normal Units Register") in which, subject to such reasonable
     regulations as it may prescribe, the Agent shall provide for the
     registration of Normal Units Certificates and of transfers of Normal Units
     Certificates (the Agent, in such capacity, the "Normal Units Registrar")
     and a register (the "Stripped Units Register") in which, subject to such
     reasonable regulations as it may prescribe, the Agent shall provide for the
     registration of the Stripped Units Certificates and transfers of Stripped
     Units Certificates (the Agent, in such capacity, the "Stripped Units
     Registrar").

          (b)  Upon surrender for registration of transfer of any Certificate at
     the Corporate Trust Office, the Company shall execute and deliver to the
     Agent, and the Agent shall authenticate, execute on behalf of the
     designated transferee or transferees, and deliver one or more new
     Certificates of like tenor and denominations, registered in the name of the
     designated transferee or transferees, and evidencing a like number of
     Normal Units or Stripped Units, as the case may be.

          (c)  At the option of the Holder, Certificates may be exchanged for
     other Certificates, of like tenor and denominations and evidencing a like
     number of Normal Units or Stripped Units, as the case may be, upon
     surrender of the Certificates to be exchanged at the Corporate Trust
     Office. Whenever any Certificates are so surrendered for exchange, the
     Company shall execute and deliver to the Agent, and the Agent shall
     authenticate, execute on behalf of the Holder, and deliver the Certificates
     which the Holder making the exchange is entitled to receive.

          (d)  All Certificates issued upon any registration of transfer or
     exchange of a Certificate shall evidence the ownership of the same number
     of Normal Units or Stripped Units, as the case may be, and be entitled to
     the same benefits and subject to the same obligations, under this Agreement
     as the Normal Units or Stripped Units, as the case may be, evidenced by the
     Certificate surrendered upon such registration of transfer or exchange.

          (e)  Every Certificate presented or surrendered for registration of
     transfer or for exchange shall (if so required by the Company or the Agent)
     be duly endorsed, or be accompanied by a written instrument of transfer in
     form

                                       27
<Page>

     satisfactory to the Company and the Agent duly executed by the Holder
     thereof or its attorney duly authorized in writing.

          (f)  No service charge shall be made for any registration of transfer
     or exchange of a Certificate, but the Company and the Agent may require
     payment from the Holder of a sum sufficient to cover any tax or other
     governmental charge that may be imposed in connection with any registration
     of transfer or exchange of Certificates, other than any exchanges pursuant
     to Sections 3.6, 3.9 and 8.5 not involving any transfer.

          (g)  Notwithstanding the foregoing, the Company shall not be obligated
     to execute and deliver to the Agent, and the Agent shall not be obligated
     to authenticate, execute on behalf of the Holder and deliver, any
     Certificate presented or surrendered for registration of transfer or for
     exchange on or after the Business Day immediately preceding the earlier of
     the Share Purchase Date or the Termination Date. In lieu of delivery of a
     new Certificate, upon satisfaction of the applicable conditions specified
     above in this Section and receipt of appropriate registration or transfer
     instructions from such Holder, the Agent shall,

               (i)     if the Share Purchase Date has occurred, deliver the
          Common Shares issuable in respect of the Purchase Contracts forming a
          part of the Units evidenced by such Certificate,

               (ii)    in the case of Normal Units, if a Termination Event shall
          have occurred prior to the Share Purchase Date, transfer the Notes or
          the appropriate Treasury Consideration, as applicable, relating to
          such Normal Units, or

               (iii)   in the case of Stripped Units, if a Termination Event
          shall have occurred prior to the Share Purchase Date, transfer the
          Treasury Securities relating to such Stripped Units,

     in each case subject to the applicable conditions and in accordance with
     the applicable provisions of Article V.

          SECTION 3.6 BOOK-ENTRY INTERESTS.

          The Certificates, on original issuance, will be issued in the form of
one or more fully registered Global Certificates, to be delivered to the
Depositary or a nominee or custodian thereof by, or on behalf of, the Company.
Such Global Certificate shall initially be registered on the books and records
of the Company in the name of Cede & Co., the nominee of the Depositary, and no
Beneficial Owner will receive a definitive Certificate representing such
Beneficial Owner's interest in such Global Certificate, except as provided in
Section 3.9. The Agent shall enter into a customary agreement with the
Depositary if so requested by the Company. Unless and until definitive, fully
registered Certificates have been issued to Beneficial Owners pursuant to
Section 3.9:

                                       28
<Page>

          (a)  the provisions of this Section 3.6 shall be in full force and
     effect;

          (b)  the Company and the Agent shall be entitled to deal with the
     Clearing Agency for all purposes of this Agreement (including the payment
     of Contract Adjustment Payments, if any, and receiving approvals, votes or
     consents hereunder) as the Holder of the Units and the sole holder of the
     Global Certificate(s) and shall have no obligation to the Beneficial
     Owners;

          (c)  to the extent that the provisions of this Section 3.6 conflict
     with any other provisions of this Agreement or any Certificate, the
     provisions of this Section 3.6 shall control; and

          (d)  the rights of the Beneficial Owners shall be exercised only
     through the Clearing Agency and shall be limited to those established by
     law and agreements between such Beneficial Owners and the Clearing Agency
     and/or the Clearing Agency Participants.

          The Clearing Agency will make book-entry transfers among Clearing
Agency Participants and receive and transmit payments of Contract Adjustment
Payments to such Clearing Agency Participants.

          SECTION 3.7 NOTICES TO HOLDERS.

          Whenever a notice or other communication to the Holders is required to
be given under this Agreement, the Company or the Company's agent shall give
such notices and communications to the Holders and, with respect to any Units
registered in the name of a Clearing Agency or the nominee of a Clearing Agency,
the Company or the Company's agent shall, except as set forth herein, have no
obligations to the Beneficial Owners.

          SECTION 3.8 APPOINTMENT OF SUCCESSOR CLEARING AGENCY.

          If any Clearing Agency elects to discontinue its services as
securities depositary with respect to the Units, the Company may, in its sole
discretion, appoint a successor Clearing Agency with respect to the Units.

          SECTION 3.9 DEFINITIVE CERTIFICATES.

          If

               (i)     a Clearing Agency notifies the Company that it is
          unwilling or unable to continue its services as securities depositary
          with respect to the Units and a successor Clearing Agency is not
          appointed within 90 days after such discontinuance pursuant to
          Section 3.8,

                                       29
<Page>

               (ii)    the Company elects to terminate the book-entry system
          arrangements through the Clearing Agency with respect to the Units, or

               (iii)   there shall have occurred and be continuing a default by
          the Company in respect of its obligations under one or more Purchase
          Contracts,

then upon surrender of the Global Certificates representing the Book-Entry
Interests with respect to the Units by the Clearing Agency, accompanied by
registration instructions, the Company shall cause definitive Certificates to be
delivered to Beneficial Owners in accordance with the instructions of the
Clearing Agency. The Company shall not be liable for any delay in delivery of
such instructions and may conclusively rely on and shall be protected in relying
on, such instructions.

          SECTION 3.10 MUTILATED, DESTROYED, LOST AND STOLEN CERTIFICATES.

          (a)  If any mutilated Certificate is surrendered to the Agent, the
     Company shall execute and deliver to the Agent, and the Agent shall
     authenticate, execute on behalf of the Holder, and deliver in exchange
     therefor, a new Certificate at the cost of the Holder, evidencing the same
     number of Normal Units or Stripped Units, as the case may be, and bearing a
     Certificate number not contemporaneously outstanding.

          (b)  If there shall be delivered to the Company and the Agent (i)
     evidence to their satisfaction of the destruction, loss or theft of any
     Certificate, and (ii) such security or indemnity at the cost of the Holder
     as may be required by them to hold each of them and any agent of either of
     them harmless, then, in the absence of notice to the Company or to a
     Responsible Officer of the Agent that such Certificate has been acquired by
     a protected purchaser, the Company shall execute and deliver to the Agent,
     and the Agent shall authenticate, execute on behalf of the Holder, and
     deliver to the Holder, in lieu of any such destroyed, lost or stolen
     Certificate, a new Certificate, evidencing the same number of Normal Units
     or Stripped Units, as the case may be, and bearing a Certificate number not
     contemporaneously outstanding.

          (c)  Notwithstanding the foregoing, the Company shall not be obligated
     to execute and deliver to the Agent, and the Agent shall not be obligated
     to authenticate, execute on behalf of the Holder, and deliver to the
     Holder, a Certificate on or after the Business Day immediately preceding
     the earlier of the Share Purchase Date or the Termination Date. In lieu of
     delivery of a new Certificate, upon satisfaction of the applicable
     conditions specified above in this Section and receipt of appropriate
     registration or transfer instructions from such Holder, the Agent shall

                                       30
<Page>

               (i)     if the Share Purchase Date has occurred, deliver the
          Common Shares issuable in respect of the Purchase Contracts forming a
          part of the Units evidenced by such Certificate,

               (ii)    in the case of Normal Units, if a Termination Event shall
          have occurred prior to the Share Purchase Date, transfer the Notes or
          the appropriate Treasury Consideration, as applicable, relating to
          such Normal Units, or

               (iii)   in the case of Stripped Units, if a Termination Event
          shall have occurred prior to the Share Purchase Date, transfer the
          Treasury Securities relating to such Stripped Units,

     in each case subject to the applicable conditions and in accordance with
     the applicable provisions of Article V.

          (d)  Upon the issuance of any new Certificate under this Section, the
     Company and the Agent may require the payment by the Holder of a sum
     sufficient to cover any tax or other governmental charge that may be
     imposed in relation thereto and any other expenses (including the fees and
     expenses of the Agent) connected therewith.

          (e)  Every new Certificate issued pursuant to this Section in lieu of
     any destroyed, lost or stolen Certificate shall constitute an original
     additional contractual obligation of the Company and of the Holder in
     respect of the Unit evidenced thereby, whether or not the destroyed, lost
     or stolen Certificate (and the Units evidenced thereby) shall be at any
     time enforceable by anyone, and shall be entitled to all the benefits and
     be subject to all the obligations of this Agreement equally and
     proportionately with any and all other Certificates delivered hereunder.

          (f)  The provisions of this Section are exclusive and shall preclude
     (to the extent lawful) all other rights and remedies with respect to the
     replacement or payment of mutilated, destroyed, lost or stolen
     Certificates.

          SECTION 3.11 PERSONS DEEMED OWNERS.

          (a)  Prior to due presentment of a Certificate for registration of
     transfer, the Company and the Agent, and any agent of the Company or the
     Agent, may treat the Person in whose name such Certificate is registered on
     the Register as the owner of the Units evidenced thereby, for the purpose
     of receiving quarterly payments on the Notes or Treasury Consideration,
     receiving payment of Contract Adjustment Payments, if any, and any Deferred
     Contract Adjustment Payments, performance of the Purchase Contracts and for
     all other purposes whatsoever, whether or not any such payments shall be
     overdue and notwithstanding any

                                       31
<Page>

     notice to the contrary, and neither the Company nor the Agent, nor any
     agent of the Company or the Agent, shall be affected by notice to the
     contrary.

          (b)  Notwithstanding the foregoing, with respect to any Global
     Certificate, nothing herein shall prevent the Company, the Agent or any
     agent of the Company or the Agent, from treating the Clearing Agency as the
     sole Holder of such Global Certificate or from giving effect to any written
     certification, proxy or other authorization furnished by any Clearing
     Agency (or its nominee), as a Holder of such Global Certificate, with
     respect to such Global Certificate or impair, as between such Clearing
     Agency and owners of beneficial interests in such Global Certificate, the
     operation of customary practices governing the exercise of rights of such
     Clearing Agency (or its nominee) as a Holder of such Global Certificate.

          SECTION 3.12 CANCELLATION.

          (a)  All Certificates surrendered (i) for delivery of Common Shares on
     or after any Settlement Date; (ii) upon the transfer of Notes or Treasury
     Consideration or Treasury Securities, as the case may be, after the
     occurrence of a Termination Event or pursuant to an Early Settlement or
     Merger Early Settlement, or a Collateral Substitution or an establishment
     or re-establishment of a Normal Unit; or (iii) upon the registration of a
     transfer or exchange of a Unit shall, if surrendered to any Person other
     than the Agent, be delivered to the Agent and, if not already cancelled,
     shall be promptly cancelled by it. The Company may at any time deliver to
     the Agent for cancellation any Certificates previously authenticated,
     executed on behalf of the Holder and delivered hereunder which the Company
     may have acquired in any manner whatsoever, and all Certificates so
     delivered shall, upon Issuer Order, be promptly cancelled by the Agent. No
     Certificates shall be authenticated, executed on behalf of the Holder and
     delivered in lieu of or in exchange for any Certificates cancelled as
     provided in this Section, except as expressly permitted by this Agreement.
     All cancelled Certificates held by the Agent shall be disposed of by the
     Agent in accordance with its then customary procedures.

          (b)  If the Company or any Affiliate of the Company shall acquire any
     Certificate, such acquisition shall not operate as a cancellation of such
     Certificate unless and until such Certificate is delivered to the Agent
     cancelled or for cancellation.

          SECTION 3.13 ESTABLISHMENT OF STRIPPED UNITS.

          (a)  A Holder may separate the Pledged Notes or Pledged Treasury
     Consideration (other than Prepayment Treasury Consideration), as
     applicable, from the related Purchase Contracts in respect of the Normal
     Units held by such Holder by substituting for such Pledged Notes or Pledged
     Treasury Consideration, as the case may be, Treasury Securities that will
     pay at the Share Purchase Date

                                       32
<Page>

     an amount equal to the aggregate Stated Amount of such Normal Units (a
     "Collateral Substitution"), at any time from and after the date of this
     Agreement and on or prior to the second Business Day immediately preceding
     the Share Purchase Date, by (i) depositing with the Collateral Agent
     Treasury Securities having an aggregate principal amount equal to the
     aggregate Stated Amount of such Normal Units, and (ii) transferring the
     related Normal Units to the Agent accompanied by a notice to the Agent,
     substantially in the form of Exhibit D hereto, stating that the Holder has
     transferred the relevant amount of Treasury Securities to the Collateral
     Agent and requesting that the Agent instruct the Collateral Agent to
     release the Pledged Notes or Pledged Treasury Consideration, as the case
     may be, underlying such Normal Units, whereupon the Agent shall promptly
     give such instruction to the Collateral Agent, substantially in the form of
     Exhibit C hereto. Notwithstanding the foregoing, a Holder may not separate
     the Pledged Notes or Pledged Treasury Consideration from the related
     Purchase Contracts in respect of the Normal Units held by such Holder
     during the periods beginning on the fourth Business Day prior to the first
     day of any Remarketing Period and ending on the third Business Day after
     the end of such Remarketing Period. Upon receipt of the Treasury Securities
     described in clause (i) above and the instruction described in clause (ii)
     above, in accordance with the terms of the Pledge Agreement, the Collateral
     Agent will release to the Agent, on behalf of the Holder, such Pledged
     Notes or Pledged Treasury Consideration from the Pledge, free and clear of
     the Company's security interest therein, and upon receipt thereof the Agent
     shall promptly:

               (x)     cancel the related Normal Units;

               (y)     transfer the Pledged Notes or Pledged Treasury
          Consideration, as the case may be, to the Holder; and

               (z)     authenticate, execute on behalf of such Holder and
          deliver a Stripped Units Certificate executed by the Company in
          accordance with Section 3.3 evidencing the same number of Purchase
          Contracts as were evidenced by the cancelled Normal Units.

          (b)  Holders who elect to separate the Pledged Notes or Pledged
     Treasury Consideration, as the case may be, from the related Purchase
     Contract and to substitute Treasury Securities for such Pledged Notes or
     Pledged Treasury Consideration shall be responsible for any fees or
     expenses payable to the Collateral Agent for its services as Collateral
     Agent in respect of the substitution, and the Company shall not be
     responsible for any such fees or expenses.

          (c)  Holders may make Collateral Substitutions (i) if Treasury
     Securities are being substituted for Pledged Notes, only in integral
     multiples of 40 Normal Units, or (ii) if the Collateral Substitutions occur
     after a successful remarketing of the Notes pursuant to the provisions of
     Section 5.4 or after a Tax

                                       33
<Page>

     Event Redemption, as the case may be, only in integral multiples of Normal
     Units such that the Treasury Securities to be deposited and the Treasury
     Consideration to be released are in integral multiples of $1,000.

          (d)  In the event a Holder making a Collateral Substitution pursuant
     to this Section 3.13 fails to effect a book-entry transfer of the Normal
     Units or fails to deliver a Normal Units Certificate to the Agent after
     depositing Treasury Securities with the Collateral Agent, the Pledged Notes
     or Pledged Treasury Consideration, as the case may be, constituting a part
     of such Normal Units, and any distributions on such Pledged Notes or
     Pledged Treasury Consideration shall be held in the name of the Agent or
     its nominee in trust for the benefit of such Holder, until such Normal
     Units are so transferred or the Normal Units Certificate is so delivered,
     as the case may be, or, with respect to a Normal Units Certificate, such
     Holder provides evidence satisfactory to the Company and the Agent that
     such Normal Units Certificate has been destroyed, lost or stolen, together
     with any indemnity that may be required by the Agent and the Company.

          (e)  Except as described in this Section 3.13, for so long as the
     Purchase Contract underlying a Normal Unit remains in effect, such Normal
     Unit shall not be separable into its constituent parts, and the rights and
     obligations of the Holder of such Normal Unit in respect of the Pledged
     Note or the Pledged Treasury Consideration, as the case may be, and the
     Purchase Contract comprising such Normal Unit may be acquired, and may be
     transferred and exchanged, only as a Normal Unit.

          SECTION 3.14 REESTABLISHMENT OF NORMAL UNITS.

          (a)  A Holder of Stripped Units may reestablish Normal Units at any
     time from and after the date of this Agreement and on or prior to the
     second Business Day immediately preceding the Share Purchase Date, by (i)
     depositing with the Collateral Agent the Notes or the appropriate Treasury
     Consideration (identified and calculated by reference to the Treasury
     Consideration then comprising Normal Units), as the case may be, then
     comprising such number of Normal Units as is equal to the number of such
     Stripped Units and (ii) transferring such Stripped Units to the Agent
     accompanied by a notice to the Agent, substantially in the form of Exhibit
     D hereto, stating that the Holder has transferred the relevant amount of
     Notes or the appropriate Treasury Consideration, as the case may be, to the
     Collateral Agent and requesting that the Agent instruct the Collateral
     Agent to release the Pledged Treasury Securities underlying such Stripped
     Unit, whereupon the Agent shall promptly give such instruction to the
     Collateral Agent, substantially in the form of Exhibit C hereto.
     Notwithstanding the foregoing, a Holder may not reestablish Normal Units
     during the periods beginning on the fourth Business Day prior to the first
     day of any Remarketing Period and ending on the third Business Day after
     the end of such Remarketing Period. Upon receipt of the Notes or the
     appropriate Treasury

                                       34
<Page>

     Consideration, as the case may be, described in clause (i) above and the
     instruction described in clause (ii) above, in accordance with the terms of
     the Pledge Agreement, the Collateral Agent will release to the Agent, on
     behalf of the Holder, such Pledged Treasury Securities from the Pledge,
     free and clear of the Company's security interest therein, and upon receipt
     thereof the Agent shall promptly:

               (x)     cancel the related Stripped Units;

               (y)     transfer the Pledged Treasury Securities to the Holder;
          and

               (z)     authenticate, execute on behalf of such Holder and
          deliver a Normal Units Certificate executed by the Company in
          accordance with Section 3.3 evidencing the same number of Purchase
          Contracts as were evidenced by the cancelled Stripped Units.

          (b)  Holders of Stripped Units may reestablish Normal Units (i) if
     Notes are being substituted for the Pledged Treasury Securities, only in
     integral multiples of 40 Stripped Units for 40 Normal Units or (ii) if the
     reestablishment occurs after a successful remarketing of the Notes pursuant
     to the provisions of Section 5.4 or after a Tax Event Redemption, as the
     case may be, only in integral multiples of Stripped Units such that the
     Treasury Consideration to be deposited and the Treasury Securities to be
     released are in integral multiples of $1,000.

          (c)  Except as provided in this Section 3.14, for so long as the
     Purchase Contract underlying a Stripped Unit remains in effect, such
     Stripped Unit shall not be separable into its constituent parts, and the
     rights and obligations of the Holder of such Stripped Unit in respect of
     the Pledged Treasury Securities and Purchase Contract comprising such
     Stripped Unit may be acquired, and may be transferred and exchanged, only
     as a Stripped Unit.

          SECTION 3.15 TRANSFER OF COLLATERAL UPON OCCURRENCE OF TERMINATION
EVENT.

          Upon the occurrence of a Termination Event and the transfer to the
Agent of the Notes or the appropriate Treasury Consideration or the Treasury
Securities, as the case may be, underlying the Normal Units and the Stripped
Units pursuant to the terms of the Pledge Agreement, the Agent shall request
transfer instructions with respect to such Notes or the appropriate Treasury
Consideration or Treasury Securities, as the case may be, from each Holder by
written request mailed to such Holder at its address as it appears in the Normal
Units Register or the Stripped Units Register, as the case may be. Upon
book-entry transfer of the Normal Units or Stripped Units or delivery of a
Normal Units Certificate or Stripped Units Certificate to the Agent with such
transfer instructions, the Agent shall transfer the Notes, the appropriate
Treasury Consideration or the Treasury Securities underlying such Normal Units
or Stripped Units, as the case may be, to such Holder by book-entry transfer, or
other appropriate procedures, in accordance with such

                                       35
<Page>

instructions. In the event a Holder of Normal Units or Stripped Units fails to
effect such transfer or delivery, the Notes, the appropriate Treasury
Consideration or the Treasury Securities, as the case may be, underlying such
Normal Units or Stripped Units, as the case may be, and any distributions
thereon, shall be held in the name of the Agent or its nominee in trust for the
benefit of such Holder, until such Normal Units or Stripped Units are
transferred or the Normal Units Certificate or Stripped Units Certificate is
surrendered or such Holder provides satisfactory evidence that such Normal Units
Certificate or Stripped Units Certificate has been destroyed, lost or stolen,
together with any indemnity that may be required by the Agent and the Company.
In the case of the Treasury Portfolio or any Treasury Securities, the Agent may
dispose of the subject securities for cash and pay the applicable portion of
such cash to the Holders in lieu of such Holders' Treasury Securities, where
such Holder would otherwise have been entitled to receive less than $1,000 of
any such security.

          SECTION 3.16 NO CONSENT TO ASSUMPTION.

          Each Holder of a Unit, by acceptance thereof, shall be deemed
expressly to have withheld any consent to the assumption (i.e., affirmance),
under Section 365 of the Bankruptcy Code or otherwise, of the Purchase Contract
by the Company, any receiver, liquidator or person or entity performing similar
functions or its trustee in the event that the Company becomes the debtor under
the Bankruptcy Code or subject to other similar state or federal law providing
for reorganization or liquidation.

          SECTION 3.17 CUSIP NUMBERS.

          The Company in issuing the Securities may use "CUSIP" numbers (if then
generally in use), and, if so, the Agent shall use "CUSIP" numbers in notices of
redemption as a convenience to Holders; PROVIDED that any such notice may state
that no representation is made as to the correctness of such numbers either as
printed on the Securities or as contained in any notice of a redemption and that
reliance may be placed only on the other identification numbers printed on the
Securities, and any such redemption shall not be affected by any defect in or
omission of such numbers. The Company will promptly notify the Agent of any
changes in the "CUSIP" numbers.

                                   ARTICLE IV

                                    THE NOTES

          SECTION 4.1 PAYMENT OF INTEREST; RIGHTS TO INTEREST PAYMENTS
PRESERVED; NOTICE.

          (a)  A payment on any Note or Treasury Consideration, as the case may
     be, which is paid on any Payment Date shall, subject to receipt thereof by
     the Agent from the Collateral Agent as provided by the terms of the Pledge
     Agreement, be paid to the Person in whose name the Normal Units Certificate
     (or one or more Predecessor Normal Units Certificates) of which such Note
     or the

                                       36
<Page>

     appropriate Treasury Consideration is a part is registered at the close of
     business on the Record Date for such Payment Date.

          (b)  Each Normal Units Certificate evidencing Notes delivered under
     this Agreement upon registration of transfer of or in exchange for or in
     lieu of any other Normal Units Certificate shall carry the rights to
     interest accrued and unpaid, and rights to accrue interest, which were
     carried by the Notes underlying such other Normal Units Certificate.

          (c)  In the case of any Normal Unit with respect to which Early
     Settlement of the underlying Purchase Contract is effected on an Early
     Settlement Date, or with respect to which Merger Early Settlement of the
     underlying Purchase Contract is effected on a Merger Early Settlement Date,
     or with respect to which Cash Settlement is effected on the Business Day
     immediately preceding the Share Purchase Date, or with respect to which a
     Collateral Substitution is effected, in each case on a date that is after
     any Record Date and on or prior to the next succeeding Payment Date,
     payments on the Note or the appropriate Treasury Consideration, as the case
     may be, underlying such Normal Unit otherwise payable on such Payment Date
     shall be payable on such Payment Date notwithstanding such Early
     Settlement, Merger Early Settlement, Cash Settlement or Collateral
     Substitution, as the case may be, and such payments shall, subject to
     receipt thereof by the Agent, be payable to the Person in whose name the
     Normal Units Certificate (or one or more Predecessor Normal Unit
     Certificates) was registered at the close of business on such Record Date.
     Except as otherwise expressly provided in the immediately preceding
     sentence, in the case of any Normal Unit with respect to which Early
     Settlement, Merger Early Settlement or Cash Settlement of the underlying
     Purchase Contract is effected, or with respect to which a Collateral
     Substitution has been effected, payments on the related Notes or payments
     on the appropriate Treasury Consideration that would otherwise be payable
     after the applicable Settlement Date or after such Collateral Substitution,
     as the case may be, shall not be payable hereunder to the Holder of such
     Normal Unit; provided, that to the extent that such Holder continues to
     hold the separated Notes that formerly comprised a part of such Holder's
     Normal Units, such Holder shall be entitled to receive any payments on such
     separated Notes.

          SECTION 4.2 NOTICE AND VOTING.

          Under and subject to the terms of the Pledge Agreement and this
Agreement, the Agent will be entitled to exercise the voting and any other
consensual rights pertaining to the Pledged Notes but only to the extent
instructed by the Holders as described below. Upon receipt of notice of any
meeting at which holders of Notes are entitled to vote or upon any solicitation
of consents, waivers or proxies of holders of Notes, the Agent shall, as soon as
practicable thereafter, mail to the Holders of Normal Units a notice (a)
containing such information as is contained in the notice or solicitation,

                                       37
<Page>

(b) stating that each Holder on the record date set by the Agent therefor
(which, to the extent possible, shall be the same date as the record date for
determining the holders of Notes entitled to vote) shall be entitled to instruct
the Agent as to the exercise of the voting rights pertaining to the Pledged
Notes underlying their Normal Units and (c) stating the manner in which such
instructions may be given. Upon the written request of any Holder of Normal
Units on such record date, the Agent shall endeavor insofar as practicable to
vote or cause to be voted, in accordance with the instructions set forth in such
request, the maximum number of Pledged Notes as to which any particular voting
instructions are received. In the absence of specific instructions from the
Holder of a Normal Unit, the Agent shall abstain from voting the Pledged Note
underlying such Normal Unit. The Company hereby agrees, if applicable, to
solicit Holders of Normal Units to timely instruct the Agent in order to enable
the Agent to vote such Pledged Notes.

          SECTION 4.3 TAX EVENT REDEMPTION.

          Upon the occurrence of a Tax Event Redemption prior to the successful
remarketing of the Notes pursuant to the provisions of Section 5.4, the Company
may elect to instruct in writing the Collateral Agent to apply, and upon such
written instruction, the Collateral Agent shall apply, out of the aggregate
Redemption Price for the Notes that are components of Normal Units, an amount
equal to the Tax Event Redemption Principal Amount to purchase on behalf of the
Holders of Normal Units the Treasury Portfolio and promptly remit the remaining
portion of such Redemption Price to the Agent for payment to the Holders of such
Normal Units. The Treasury Portfolio will be substituted for the Pledged Notes,
and will be pledged to the Collateral Agent in accordance with the terms of the
Pledge Agreement to secure the obligation of each Holder of a Normal Unit to
purchase the Common Shares under the Purchase Contract constituting a part of
such Normal Unit. Following the occurrence of a Tax Event Redemption prior to a
successful remarketing of the Notes pursuant to the provisions of Section 5.4,
the Holders of Normal Units and the Collateral Agent shall have such security
interests, rights and obligations with respect to the Treasury Portfolio as the
Holder of Normal Units and the Collateral Agent had in respect of the Notes, as
the case may be, subject to the Pledge thereof as provided in Articles II, III,
IV, V and VI of the Pledge Agreement, and any reference herein or in the
Certificates to the Note shall be deemed to be a reference to such Treasury
Portfolio and any reference herein or in the Certificates to interest on the
Notes shall be deemed to be a reference to corresponding distributions on the
Treasury Portfolio. The Company may cause to be made in any Normal Unit
Certificates thereafter to be issued such change in phraseology and form (but
not in substance) as may be appropriate to reflect the substitution of the
Treasury Portfolio for Notes as collateral.

          Upon the occurrence of a Tax Event Redemption after the successful
remarketing of the Notes, the Redemption Price will be payable in cash to the
holders of the Notes.

                                       38
<Page>

          SECTION 4.4 CONSENT TO TREATMENT FOR TAX PURPOSES.

          Each Holder of a Normal Unit or a Stripped Unit, by its acceptance
thereof, covenants and agrees to treat itself as the owner, for federal, state
and local income and franchise tax purposes of (i) the related Notes or the
appropriate Treasury Consideration, in the case of the Normal Units, or (ii) the
Treasury Securities, in the case of the Stripped Units. Each Holder of a Normal
Unit, by its acceptance thereof, further covenants and agrees (i) to treat the
Notes as indebtedness of Platinum Underwriters Finance, Inc. for federal, state
and local income and franchise tax purposes and (ii) to allocate *% of the issue
price of a Normal Unit in the Initial Public Offering to the beneficial interest
in the Note and *% of the issue price to the Purchase Contract.

          SECTION 4.5 PREPAYMENT OF NOTES.

          Upon the prepayment in full of the principal of the Notes prior to
the earlier to occur of a successful remarketing of the Notes pursuant to the
provisions of Section 5.4 and a Termination Event (a "Prepayment Event"), the
Company shall instruct the Collateral Agent in writing to purchase, and upon
such written instruction, the Collateral Agent shall purchase the Prepayment
Treasury Consideration on behalf of the Holders of Normal Units and promptly
remit the remaining portion of any payments received with respect to such
Notes to the Agent for payment to the Holders of such Normal Units. Any
distribution to Holders of excess funds shall be payable at the Corporate
Trust Office or, at the option of the Holder, by check mailed to the address
of the Person entitled thereto at such address as it appears on the Register
or by wire transfer to an account maintained in the United States specified
by the Holder. The Prepayment Treasury Consideration will be substituted for
the Pledged Notes, and will be pledged to the Collateral Agent in accordance
with the terms of the Pledge Agreement to secure the obligation of each
Holder of a Normal Unit to purchase the Common Shares under the Purchase
Contract constituting a part of such Normal Unit. Following the occurrence of
a Prepayment Event, the Holders of Normal Units and the Collateral Agent
shall have such security interests, rights and obligations with respect to
the Prepayment Treasury Consideration as the Holder of Normal Units and the
Collateral Agent had in respect of the Notes, as the case may be, subject to
the Pledge thereof as provided in Articles II, III, IV, V and VI of the
Pledge Agreement, and any reference herein or in the Certificates to the Note
shall be deemed to be a reference to such Prepayment Treasury Consideration.
The Company may cause to be made in any Normal Unit Certificates thereafter
to be issued such change in phraseology and form (but not in substance) as
may be appropriate to reflect the substitution of the Prepayment Treasury
Consideration for Notes as collateral.

                                       39
<Page>

                                    ARTICLE V

                     THE PURCHASE CONTRACTS; THE REMARKETING

          SECTION 5.1 PURCHASE OF COMMON SHARES.

          (a)  Each Purchase Contract shall, unless an Early Settlement has
     occurred in accordance with Section 5.9, or a Merger Early Settlement has
     occurred in accordance with Section 5.10, obligate the Holder of the
     related Unit to purchase, and the Company to sell, on the Share Purchase
     Date at a price equal to $25 (the "Purchase Price"), a number of newly
     issued Common Shares equal to the Settlement Rate unless, on or prior to
     the Share Purchase Date, a Termination Event shall have occurred. The
     "Settlement Rate" is equal to,

               (i)     if the Applicable Market Value (as defined below) is
          equal to or greater than $* (the "Threshold Appreciation Price"), *
          Common Shares per Purchase Contract,

               (ii)    if the Applicable Market Value is less than the Threshold
          Appreciation Price, but is greater than $*, the number of Common
          Shares per Purchase Contract equal to the Purchase Price divided by
          the Applicable Market Value, and

               (iii)   if the Applicable Market Value is equal to or less than
          $*, * Common Shares per Purchase Contract,

     in each case subject to adjustment as provided in Section 5.6 (and in each
     case rounded upward or downward to the nearest 1/10,000th of a share).

          (b)  No fractional Common Shares will be issued by the Company with
     respect to the payment of Contract Adjustment Payments on the Share
     Purchase Date. In lieu of fractional shares otherwise issuable with respect
     to such payment of Contract Adjustment Payments, the Holder will be
     entitled to receive an amount in cash as provided in Section 5.12.

          (c)  The "Applicable Market Value" means the average of the Closing
     Price per Common Share on each of the 20 consecutive Trading Days ending on
     the third Trading Day immediately preceding the Share Purchase Date. The
     "Closing Price" of the Common Shares on any date of determination means the
     closing sale price (or, if no closing price is reported, the last reported
     sale price) of the Common Shares on the New York Stock Exchange (the
     "NYSE") on such date or, if the Common Shares are not listed for trading on
     the NYSE on any such date, as reported in the composite transactions for
     the principal United States securities exchange on which the Common Shares
     are so listed, or if the Common Shares are not so listed on a United States
     securities exchange, as reported by The Nasdaq Stock Market, or, if the
     Common Shares are not so reported, the last

                                       40
<Page>

     quoted bid price for the Common Shares in the over-the-counter market as
     reported by the National Quotation Bureau or similar organization, or, if
     such bid price is not available, the market value of the Common Shares on
     such date as determined by a nationally recognized independent investment
     banking firm retained for this purpose by the Company. A "Trading Day"
     means a day on which the Common Shares (A) are not suspended from trading
     on any national or regional securities exchange or association or
     over-the-counter market at the close of business and (B) have traded at
     least once on the national or regional securities exchange or association
     or over-the-counter market that is the primary market for the trading of
     the Common Shares at the close of business on such day.

          (d)  Each Holder of a Unit, by its acceptance thereof, irrevocably
     authorizes the Agent to enter into and perform the related Purchase
     Contract on its behalf as its attorney-in-fact (including the execution of
     Certificates on behalf of such Holder), agrees to be bound by the terms and
     provisions thereof, covenants and agrees to perform its obligations under
     such Purchase Contract, consents to the provisions hereof, irrevocably
     authorizes the Agent as its attorney-in-fact to enter into and perform the
     Pledge Agreement on its behalf as its attorney-in-fact, and consents to and
     agrees to be bound by the Pledge of the Notes, the appropriate Treasury
     Consideration or the Treasury Securities pursuant to the Pledge Agreement;
     provided that upon a Termination Event, the rights of the Holder of such
     Unit under the Purchase Contract may be enforced without regard to any
     other rights or obligations. Each Holder of a Unit, by its acceptance
     thereof, further covenants and agrees, that, to the extent and in the
     manner provided in Section 5.4 and the Pledge Agreement, but subject to the
     terms thereof, payments in respect of the Pledged Notes, the Pledged
     Treasury Consideration or the Pledged Treasury Securities to be paid upon
     settlement of such Holder's obligations to purchase Common Shares under the
     Purchase Contract, shall be paid on the Share Purchase Date by the
     Collateral Agent to the Company in satisfaction of such Holder's
     obligations under such Purchase Contract and such Holder shall acquire no
     right, title or interest in such payments.

          (e)  Upon registration of transfer of a Certificate, the transferee
     shall be bound (without the necessity of any other action on the part of
     such transferee) under the terms of this Agreement, the Purchase Contracts
     underlying such Certificate and the Pledge Agreement, and the transferor
     shall be released from the obligations under this Agreement, the Purchase
     Contracts underlying the Certificate so transferred and the Pledge
     Agreement. The Company covenants and agrees, and each Holder of a
     Certificate, by its acceptance thereof, likewise covenants and agrees, to
     be bound by the provisions of this paragraph.

          SECTION 5.2 CONTRACT ADJUSTMENT PAYMENTS.

          (a)  Subject to Section 5.3 herein, the Company shall pay, on each
     Payment Date, the Contract Adjustment Payments, if any, payable in respect
     of

                                       41
<Page>

     each Purchase Contract to the Person in whose name a Certificate (or one or
     more Predecessor Certificates) is registered on the Register at the close
     of business on the Record Date next preceding such Payment Date in such
     coin or currency of the United States as at the time of payment shall be
     legal tender for payments. The Contract Adjustment Payments, if any, will
     be payable at the Corporate Trust Office or, at the option of the Company,
     by check mailed to the address of the Person entitled thereto at such
     Person's address as it appears on the Register or by wire transfer to the
     account maintained in the United States designated by a prior written
     notice by such Person.

          (b)  Upon the occurrence of a Termination Event, the Company's
     obligation to pay Contract Adjustment Payments (including any accrued
     Deferred Contract Adjustment Payments), if any, shall cease.

          (c)  Each Certificate delivered under this Agreement upon registration
     of transfer of or in exchange for or in lieu of any other Certificate
     (including as a result of a Collateral Substitution or the re-establishment
     of a Normal Unit) shall carry the rights to Contract Adjustment Payments,
     if any, accrued and unpaid, and to accrue Contract Adjustment Payments, if
     any, which were carried by the Purchase Contracts underlying such other
     Certificates.

          (d)  Subject to Sections 5.4, 5.9 and 5.10, in the case of any Unit
     with respect to which Early Settlement or Merger Early Settlement of the
     underlying Purchase Contract is effected on an Early Settlement Date or a
     Merger Early Settlement Date, respectively, or in respect of which Cash
     Settlement of the underlying Purchase Contract is effected on the Business
     Day immediately preceding the Share Purchase Date, or with respect to which
     a Collateral Substitution or an establishment or re-establishment of a
     Normal Unit pursuant to Section 3.14 is effected, in each case on a date
     that is after any Record Date and on or prior to the next succeeding
     Payment Date, Contract Adjustment Payments on the Purchase Contract
     underlying such Unit otherwise payable on such Payment Date shall be
     payable on such Payment Date notwithstanding such Cash Settlement, Early
     Settlement, Merger Early Settlement, Collateral Substitution or
     establishment or re-establishment of Normal Units, and such Contract
     Adjustment Payments shall, subject to receipt thereof by the Agent, be
     payable to the Person in whose name the Certificate evidencing such Unit
     (or one or more Predecessor Certificates) was registered at the close of
     business on such Record Date. Except as otherwise expressly provided in the
     immediately preceding sentence, in the case of any Unit with respect to
     which Early Settlement or Merger Early Settlement or Cash Settlement of the
     underlying Purchase Contract is effected on an Early Settlement Date or
     Merger Early Settlement Date or on the Business Day immediately preceding
     the Share Purchase Date, as the case may be, or with respect to which a
     Collateral Substitution or an establishment or re-establishment of a Normal
     Unit has been effected, Contract Adjustment Payments, if any, that would
     otherwise be payable after the Early Settlement Date, or Merger Early

                                       42
<Page>

     Settlement Date, Collateral Substitution or such establishment or
     re-establishment with respect to such Purchase Contract shall not be
     payable.

          (e)  The Company's obligations with respect to Contract Adjustment
     Payments (including any accrued or Deferred Contract Adjustment Payments)
     will be subordinated and junior in right of payment to the Company's
     obligations under any Senior Indebtedness.

          (f)  Subject to the provisions of Section 5.8, in the event (x) of any
     payment by, or distribution of assets of, the Company of any kind or
     character, whether in cash, property or securities, to creditors upon any
     dissolution, winding-up, liquidation or reorganization of the Company,
     whether voluntary or involuntary or in bankruptcy, insolvency, receivership
     or other proceedings, or (y) subject to the provisions of Section 5.2(h)
     below, that (i) a default shall have occurred and be continuing with
     respect to the payment of principal, interest or any other monetary amounts
     due and payable on any Senior Indebtedness and such default shall have
     continued beyond the period of grace, if any, specified in the instrument
     evidencing such Senior Indebtedness (and the Agent shall have received
     written notice thereof from the Company or one or more holders of Senior
     Indebtedness or their representative or representatives or the trustee or
     trustees under any indenture pursuant to which any such Senior Indebtedness
     may have been issued), or (ii) the maturity of any Senior Indebtedness
     shall have been accelerated because of a default in respect of such Senior
     Indebtedness (and the Agent shall have received written notice thereof from
     the Company or one or more holders of Senior Indebtedness or their
     representative or representatives or the trustee or trustees under any
     indenture pursuant to which any such Senior Indebtedness may have been
     issued), then:

               (i)     the holders of all Senior Indebtedness shall first be
          entitled to receive, in the case of clause (x) above, payment in full
          of all amounts due or to become due upon all Senior Indebtedness and,
          in the case of subclauses (i) and (ii) of clause (y) above, payment of
          all amounts due thereon, or provision shall be made for such payment
          in money or money's worth, before the Holders of any of the Units are
          entitled to receive any Contract Adjustment Payments on the Purchase
          Contracts underlying the Units;

               (ii)    any payment by, or distribution of assets of, the Company
          of any kind or character, whether in cash, property or securities, to
          which the Holders of any of the Units would be entitled except for the
          provisions of Sections 5.2(e) through (q), including any such payment
          or distribution which may be payable or deliverable by reason of the
          payment of any other indebtedness of the Company being subordinated to
          the payment of such Contract Adjustment Payments on the Purchase
          Contracts underlying the Securities, shall be paid or delivered by the
          Person making such

                                       43
<Page>

          payment or distribution, whether a trustee in bankruptcy, a receiver
          or liquidating trustee or otherwise, directly to the holders of such
          Senior Indebtedness or their representative or representatives or to
          the trustee or trustees under any indenture under which any
          instruments evidencing any of such Senior Indebtedness may have been
          issued, ratably according to the aggregate amounts remaining unpaid on
          account of such Senior Indebtedness held or represented by each, to
          the extent necessary to make payment in full of all Senior
          Indebtedness remaining unpaid after giving effect to any concurrent
          payment or distribution (or provision therefor) to the holders of such
          Senior Indebtedness, before any payment or distribution is made of
          such Contract Adjustment Payments to the Holders of such Units; and

               (iii)   in the event that, notwithstanding the foregoing, any
          payment by, or distribution of assets of, the Company of any kind or
          character, whether in cash, property or securities, including any such
          payment or distribution which may be payable or deliverable by reason
          of the payment of any other indebtedness of the Company being
          subordinated to the payment of Contract Adjustment Payments on the
          Purchase Contracts underlying the Securities, shall be received by the
          Agent or the Holders of any of the Securities when such payment or
          distribution is prohibited pursuant to Sections 5.2(e) through (q),
          such payment or distribution shall be paid over to the holders of such
          Senior Indebtedness or their representative or representatives or to
          the trustee or trustees under any indenture pursuant to which any
          instruments evidencing any such Senior Indebtedness may have been
          issued, ratably as aforesaid, for application to the payment of all
          Senior Indebtedness remaining unpaid until all such Senior
          Indebtedness shall have been paid in full, after giving effect to any
          concurrent payment or distribution (or provision therefor) to the
          holders of such Senior Indebtedness.

          (g)  For purposes of Sections 5.2(e) through (q), the words "cash,
     property or securities" shall not be deemed to include shares of stock of
     the Company as reorganized or readjusted, or securities of the Company or
     any other Person provided for by a plan of reorganization or readjustment,
     the payment of which is subordinated at least to the extent provided in
     Sections 5.2(e) through (q) with respect to such Contract Adjustment
     Payments on the Securities to the payment of all Senior Indebtedness which
     may at the time be outstanding; PROVIDED that (i) the indebtedness or
     guarantee of indebtedness, as the case may be, that constitutes Senior
     Indebtedness is assumed by the Person, if any, resulting from any such
     reorganization or readjustment, and (ii) the rights of the holders of the
     Senior Indebtedness are not, without the consent of each such holder
     adversely affected thereby, altered by such reorganization or readjustment.

                                       44
<Page>

          (h)  Any failure by the Company to make any payment on or perform any
     other obligation under Senior Indebtedness, other than any indebtedness
     incurred by the Company or assumed or guaranteed, directly or indirectly,
     by the Company for money borrowed (or any deferral, renewal, extension or
     refunding thereof) or any indebtedness or obligation as to which the
     provisions of Sections 5.2(e) through (g) shall have been waived by the
     Company in the instrument or instruments by which the Company incurred,
     assumed, guaranteed or otherwise created such indebtedness or obligation,
     shall not be deemed a default or event of default if (i) the Company shall
     be disputing its obligation to make such payment or perform such obligation
     and (ii) either (A) no final judgment relating to such dispute shall have
     been issued against the Company which is in full force and effect and is
     not subject to further review, including a judgment that has become final
     by reason of the expiration of the time within which a party may seek
     further appeal or review, and (B) in the event a judgment that is subject
     to further review or appeal has been issued, the Company shall in good
     faith be prosecuting an appeal or other proceeding for review and a stay of
     execution shall have been obtained pending such appeal or review.

          (i)  Subject to the payment in full of all Senior Indebtedness, the
     Holders of the Purchase Contracts underlying the Units shall be subrogated
     (equally and ratably with the holders of all obligations of the Company
     which by their express terms are subordinated to Senior Indebtedness of the
     Company to the same extent as payment of the Contract Adjustment Payments
     in respect of the Purchase Contracts underlying the Units is subordinated
     and which are entitled to like rights of subrogation) to the rights of the
     holders of Senior Indebtedness to receive payments or distributions of
     cash, property or securities of the Company applicable to the Senior
     Indebtedness until all such Contract Adjustment Payments owing on the
     Purchase Contracts underlying the Units shall be paid in full, and as
     between the Company, its creditors other than holders of such Senior
     Indebtedness and the Holders, no such payment or distribution made to the
     holders of Senior Indebtedness by virtue of Sections 5.2(e) through (q)
     that otherwise would have been made to the Holders shall be deemed to be a
     payment by the Company on account of such Senior Indebtedness, it being
     understood that the provisions of Sections 5.2(e) through (q) are and are
     intended solely for the purpose of defining the relative rights of the
     Holders, on the one hand, and the holders of Senior Indebtedness, on the
     other hand.

          (j)  Nothing contained in Sections 5.2(e) through (q) or elsewhere in
     this Agreement or in the Units is intended to or shall impair, as among the
     Company, its creditors other than the holders of Senior Indebtedness and
     the Holders, the obligation of the Company, which is absolute and
     unconditional, to pay to the Holders such Contract Adjustment Payments on
     the Purchase Contracts underlying the Units as and when the same shall
     become due and payable in accordance with their terms, or is intended to or
     shall affect the relative rights of the Holders and creditors of the
     Company other than the holders of Senior

                                       45
<Page>

     Indebtedness, nor shall anything herein or therein prevent the Agent or any
     Holder from exercising all remedies otherwise permitted by applicable law
     upon default under this Agreement, subject to the rights, if any, under
     these Sections 5.2(e) through (q), of the holders of Senior Indebtedness in
     respect of cash, property or securities of the Company received upon the
     exercise of any such remedy.

          (k)  Upon payment or distribution of assets of the Company referred to
     in these Sections 5.2(e) through (q), the Agent and the Holders shall be
     entitled to rely upon any order or decree made by any court of competent
     jurisdiction in which any such dissolution, winding up, liquidation or
     reorganization proceeding affecting the affairs of the Company is pending
     or upon a certificate of the trustee in bankruptcy, receiver, assignee for
     the benefit of creditors, liquidating trustee or agent or other Person
     making any payment or distribution, delivered to the Agent or to the
     Holders, for the purpose of ascertaining the Persons entitled to
     participate in such payment or distribution, the holders of the Senior
     Indebtedness and other indebtedness of the Company, the amount thereof or
     payable thereon, the amount or amounts paid or distributed thereon and all
     other facts pertinent thereto or to these Sections 5.2(e) through (q).

          (l)  The Agent shall be entitled to rely on the delivery to it of a
     written notice by a Person representing himself to be a holder of Senior
     Indebtedness (or a trustee or representative on behalf of such holder) to
     establish that such notice has been given by a holder of Senior
     Indebtedness or a trustee or representative on behalf of any such holder or
     holders. In the event that the Agent determines in good faith that further
     evidence is required with respect to the right of any Person as a holder of
     Senior Indebtedness to participate in any payment or distribution pursuant
     to Sections 5.2(e) through (q), the Agent may request such Person to
     furnish evidence to the reasonable satisfaction of the Agent as to the
     amount of Senior Indebtedness held by such Person, the extent to which such
     Person is entitled to participate in such payment or distribution and any
     other facts pertinent to the rights of such Person under Sections 5.2(e)
     through (q), and, if such evidence is not furnished, the Agent may defer
     payment to such Person pending judicial determination as to the right of
     such Person to receive such payment.

          (m)  Nothing contained in Sections 5.2(e) through (q) shall affect the
     obligations of the Company to make, or prevent the Company from making,
     payment of the Contract Adjustment Payments, except as provided in these
     Sections 5.2(e) through (q).

          (n)  Each Holder of Securities, by his acceptance thereof, authorizes
     and directs the Agent on his, her or its behalf to take such action as may
     be necessary or appropriate to effectuate the subordination provided in
     Sections 5.2(e) through (q) and appoints the Agent his, her or its
     attorney-in-fact, as the case may be, for any and all such purposes.

                                       46
<Page>

          (o)  The Company shall give prompt written notice to the Agent of any
     fact known to the Company that would prohibit the making of any payment of
     moneys to or by the Agent in respect of the Purchase Contracts underlying
     the Units pursuant to the provisions of this Section 5.2. Notwithstanding
     the provisions of Sections 5.2(e) through (q) or any other provisions of
     this Agreement, the Agent shall not be charged with knowledge of the
     existence of any facts that would prohibit the making of any payment of
     moneys to or by the Agent, or the taking of any other action by the Agent,
     unless and until the Agent shall have received written notice thereof
     mailed or delivered to a Responsible Officer of the Agent from the Company,
     any Holder, any paying agent or the holder or representative of any Senior
     Indebtedness; PROVIDED that if at least two Business Days prior to the date
     upon which by the terms hereof any such moneys may become payable for any
     purpose, the Agent shall not have received with respect to such moneys the
     notice provided for in this Section 5.2(o), then, anything herein contained
     to the contrary notwithstanding, the Agent shall have full power and
     authority to receive such moneys and to apply the same to the purpose for
     which they were received and shall not be affected by any notice to the
     contrary that may be received by it within two Business Days prior to or on
     or after such date.

          (p)  The Agent in its individual capacity shall be entitled to all the
     rights set forth in this Section 5.2 with respect to any Senior
     Indebtedness at the time held by it, to the same extent as any other holder
     of Senior Indebtedness and nothing in this Agreement shall deprive the
     Agent of any of its rights as such holder.

          (q)  No right of any present or future holder of any Senior
     Indebtedness to enforce the subordination herein shall at any time or in
     any way be prejudiced or impaired by any act or failure to act on the part
     of the Company or by any noncompliance by the Company with the terms,
     provisions and covenants of this Agreement, regardless of any knowledge
     thereof which any such holder may have or be otherwise charged with.

          (r)  Nothing in this Section 5.2 shall apply to claims of, or payments
     to, the Agent under or pursuant to Section 7.7 hereof.

With respect to the holders of Senior Indebtedness, (i) the duties and
obligations of the Agent shall be determined solely by the express provisions of
this Agreement; (ii) the Agent shall not be liable except for the performance of
such duties and obligations as are specifically set forth in this Agreement;
(iii) no implied covenants or obligations shall be read into this Agreement
against the Agent; and (iv) the Agent shall not be deemed to be a fiduciary as
to such holders.

                                       47
<Page>

          SECTION 5.3 DEFERRAL OF CONTRACT ADJUSTMENT PAYMENTS.

          (a)  The Company shall have the right, at any time prior to the Share
     Purchase Date, to defer the payment of any or all of the Contract
     Adjustment Payments otherwise payable on any Payment Date, but only if the
     Company shall give the Holders and the Agent written notice of its election
     to defer each such deferred Contract Adjustment Payment (specifying the
     amount to be deferred) at least ten Business Days prior to the earlier of
     (i) the next succeeding Payment Date or (ii) the date the Company is
     required to give notice of the Record Date or Payment Date with respect to
     payment of such Contract Adjustment Payments to the NYSE or other
     applicable self-regulatory organization or to Holders of the Units, but in
     any event not less than one Business Day prior to such Record Date. Any
     Contract Adjustment Payments so deferred shall, to the extent permitted by
     law, accrue additional Contract Adjustment Payments thereon at the rate of
     *% per year (computed on the basis of a 360-day year of twelve 30-day
     months), compounding on each succeeding Payment Date, until paid in full
     (such deferred installments of Contract Adjustment Payments, if any,
     together with the additional Contract Adjustment Payments, if any, accrued
     thereon, being referred to herein as the "Deferred Contract Adjustment
     Payments"). Deferred Contract Adjustment Payments, if any, shall be due on
     the next succeeding Payment Date except to the extent that payment is
     deferred pursuant to this Section 5.3. No Contract Adjustment Payments may
     be deferred to a date that is after the Settlement Date and no such
     deferral period may end other than on a Payment Date. If the Purchase
     Contracts are terminated upon the occurrence of a Termination Event, the
     Holder's right to receive Contract Adjustment Payments, if any, and
     Deferred Contract Adjustment Payments, will terminate.

          (b)  In the event that the Company elects to defer the payment of
     Contract Adjustment Payments on the Purchase Contracts until a Payment Date
     prior to the Share Purchase Date, then all Deferred Contract Adjustment
     Payments, if any, shall be payable to the registered Holders as of the
     close of business on the Record Date immediately preceding such Payment
     Date.

          (c)  In the event that the Company elects to defer the payment of
     Contract Adjustment Payments on the Purchase Contracts until the Share
     Purchase Date, each Holder will receive on the Share Purchase Date in lieu
     of a cash payment a number of Common Shares (in addition to a number of
     Common Shares equal to the Settlement Rate) equal to (A) the aggregate
     amount of Deferred Contract Adjustment Payments payable to such Holder (net
     of any required tax withholding on such Deferred Contract Adjustment
     Payment, which shall be remitted to the appropriate taxing jurisdiction)
     divided by (B) the Applicable Market Value.

          (d)  No fractional Common Shares will be issued by the Company with
     respect to the payment of Deferred Contract Adjustment Payments on the
     Share

                                       48
<Page>

     Purchase Date. In lieu of fractional shares otherwise issuable with respect
     to such payment of Deferred Contract Adjustment Payments, the Holder will
     be entitled to receive an amount in cash as provided in Section 5.12.

          (e)  In the event the Company exercises its option to defer the
     payment of Contract Adjustment Payments then, until the earlier of (x) the
     Termination Date or (y) the date on which the Deferred Contract Adjustment
     Payments have been paid, the Company shall not declare or pay dividends on,
     make distributions with respect to, or redeem, purchase or acquire, or make
     a liquidation payment with respect to, any of the Company's Capital Stock
     other than:

               (i)     purchases, redemptions or acquisitions of shares of
          Capital Stock of the Company in connection with any employment
          contract, benefit plan or other similar arrangement with or for the
          benefit of employees, officers, directors or agents or a share
          purchase or dividend reinvestment plan, or the satisfaction by the
          Company of its obligations pursuant to any contract or security
          outstanding on the date the Company exercises its right to defer the
          payment of Contract Adjustment Payments;

               (ii)    as a result of a reclassification of the Company's
          Capital Stock or the exchange or conversion of one class or series of
          the Company's Capital Stock for another class or series of the
          Company's Capital Stock;

               (iii)   the purchase of fractional interests of the Company's
          Capital Stock pursuant to the conversion or exchange provisions of
          such Capital Stock or the security being converted or exchanged;

               (iv)    dividends or distributions in the Company's Capital Stock
          (or rights to acquire the Company's Capital Stock) or repurchases,
          acquisitions or redemptions of the Company's Capital Stock in exchange
          for or out of the net cash proceeds of the sale of the Company's
          Capital Stock (or securities convertible into or exchangeable for
          shares of the Company's Capital Stock); or

               (v)     redemptions, exchanges or repurchases of any rights
          outstanding under a shareholder rights plan or the declaration or
          payment thereunder of a dividend or distribution of or with respect to
          rights in the future.

          SECTION 5.4 PAYMENT OF PURCHASE PRICE; REMARKETING.

          (a)  Unless a Tax Event Redemption, Prepayment Event, successful
     remarketing of the Notes pursuant to the provisions of this Section 5.4 or
     Termination Event has occurred, or a Holder of a Unit has settled the
     underlying Purchase Contract through an Early Settlement pursuant to
     Section 5.9 or a

                                       49
<Page>

     Merger Early Settlement pursuant to Section 5.10, each Holder of a Normal
     Unit may pay in cash ("Cash Settlement") the Purchase Price for the Common
     Shares to be purchased pursuant to a Purchase Contract if such Holder
     notifies the Agent by surrender of the Normal Unit Certificate and delivery
     of a notice in substantially the form of Exhibit E hereto of its intention
     to make a Cash Settlement. Such notice shall be made on or prior to
     5:00 p.m., New York City time, on the seventh Business Day immediately
     preceding the Share Purchase Date. The Agent shall promptly notify the
     Collateral Agent of the receipt of such a notice from a Holder intending to
     make a Cash Settlement.

               (i)     A Holder of a Normal Unit who has so notified the Agent
          of its intention to make a Cash Settlement is required to pay the
          Purchase Price to the Collateral Agent prior to 11:00 a.m., New York
          City time, on the Business Day immediately preceding the Share
          Purchase Date in lawful money of the United States by certified or
          cashiers' check or wire transfer, in each case in immediately
          available funds payable to or upon the order of the Company. Any cash
          received by the Collateral Agent will be paid to the Company on the
          Share Purchase Date in settlement of the Purchase Contract in
          accordance with the terms of this Agreement and the Pledge Agreement.

               (ii)    If a Holder of a Normal Unit fails to notify the Agent of
          its intention to make a Cash Settlement in accordance with paragraph
          (a)(i) above, the Holder shall be deemed to have consented to the
          disposition of the Pledged Notes pursuant to the remarketing as
          described in paragraph (b) below. If a Holder of a Normal Unit does
          notify the Agent as provided in paragraph (a)(i) above of its
          intention to pay the Purchase Price in cash, but fails to make such
          payment as required by paragraph (a)(i) above, such failure shall
          constitute an event of default; however, the Notes of such a Holder
          will not be remarketed but instead the Collateral Agent, for the
          benefit of the Company, will exercise its rights as a secured party
          with respect to such Notes, including but not limited to those rights
          specified in subsection (b)(iii) below.

          (b)  (i) Unless a Tax Event Redemption or Prepayment Event has
     occurred, the Company and Platinum Underwriters Finance shall engage a
     nationally recognized investment bank (the "Remarketing Agent") pursuant to
     a Remarketing Agreement to be mutually agreed on by the Company, Platinum
     Underwriters Finance, the Agent and the Remarketing Agent, but providing
     for remarketing procedures substantially as set forth below to sell the
     Notes of Holders of Normal Units, other than Holders that have elected not
     to participate in the remarketing pursuant to the procedures set forth in
     clause (iv) below, and holders of Separate Notes that have elected to
     participate in the remarketing pursuant to the procedures set forth in
     Section 4.5(d) of the Pledge Agreement. On the seventh Business Day prior
     to first day of each Remarketing Period, the

                                       50
<Page>

     Agent shall give Holders of Normal Units and holders of Separate Notes
     notice of the remarketing in a daily newspaper in the English language of
     general circulation in The City of New York (which is expected to be THE
     WALL STREET JOURNAL) including the specific U.S. Treasury security or
     securities (including the CUSIP number and/or the principal terms of such
     Treasury security or securities) described in clause (iv) below, that must
     be delivered by Holders of Normal Units that elect not to participate in
     the remarketing pursuant to clause (iv) below no later than 10:00 a.m., New
     York City time, on the fourth Business Day preceding the first day of such
     Remarketing Period. The Company or the Agent, at the Company's request,
     shall request not later than seven nor more than 15 calendar days prior to
     any Remarketing Period, that the Clearing Agency notify the Clearing Agency
     participants of such Remarketing Period. The Agent shall notify, by
     10:00 a.m., New York City time, on the third Business Day preceding the
     first day of such Remarketing Period, the Remarketing Agent and the
     Collateral Agent of the aggregate number of Notes of Normal Unit Holders to
     be remarketed. On the third Business Day preceding the first day of such
     Remarketing Period, no later than by 10:00 a.m., New York City time,
     pursuant to the terms of the Pledge Agreement, the Custodial Agent will
     notify the Remarketing Agent of the aggregate number of Separate Notes to
     be remarketed. No later than 10:00 a.m., New York City time, on the
     Business Day immediately preceding the first day of such Remarketing
     Period, the Collateral Agent and the Custodial Agent, pursuant to the terms
     of the Pledge Agreement, will deliver for remarketing to the Remarketing
     Agent all Notes to be remarketed. Upon receipt of such notice from the
     Agent and the Custodial Agent and such Notes from the Collateral Agent and
     the Custodial Agent, the Remarketing Agent will, on the Remarketing Date,
     use its commercially reasonable best efforts to sell such Notes on such
     date at an aggregate price equal to at least 100.25% of the Remarketing
     Value. The Remarketing Agent will use the proceeds from a successful
     remarketing to purchase the appropriate U.S. Treasury securities (the
     "Agent-purchased Treasury Consideration") with the CUSIP numbers, if any,
     selected by the Remarketing Agent, described in clauses (i)(1) and (ii)(1)
     of the definition of Remarketing Value related to the Notes of Holders of
     Normal Units that were remarketed. On or prior to the third Business Day
     following the Remarketing Date or any Subsequent Remarketing Date on which
     the Notes are successfully remarketed, the Remarketing Agent shall deliver
     such Agent-purchased Treasury Consideration to the Agent, which shall
     thereupon deliver such Agent-purchased Treasury Consideration to the
     Collateral Agent. The Collateral Agent, for the benefit of the Company,
     will thereupon apply such Agent-purchased Treasury Consideration, in
     accordance with the Pledge Agreement, to secure such Holders' obligations
     under the Purchase Contracts. In the event of a successful remarketing
     pursuant to this Section 5.4, the Remarketing Agent will deduct as a
     remarketing fee an amount not exceeding 25 basis points (.25%) of the total
     proceeds from the remarketing (the "Remarketing Fee"). The Remarketing
     Agent will remit (1) the portion of the proceeds from the remarketing
     attributable to the Separate Notes to the holders of Separate Notes that
     were remarketed and (2) the

                                       51
<Page>

     remaining portion of the proceeds, less those proceeds used to purchase the
     Agent-purchased Treasury Consideration, to the Agent for the benefit of the
     Holders of the Normal Units that were remarketed, all determined on a pro
     rata basis, in each case, on or prior to the third Business Day following
     the Remarketing Date or any Subsequent Remarketing Date on which the Notes
     were successfully remarketed. Holders whose Notes are so remarketed will
     not otherwise be responsible for the payment of any Remarketing Fee in
     connection therewith.

               (ii)    If, in spite of using its commercially reasonable best
          efforts, the Remarketing Agent cannot remarket the Notes included in
          the remarketing at a price equal to at least 100.25% of the
          Remarketing Value on the Remarketing Date, the Remarketing Agent will
          attempt to establish a Remarketing Rate meeting these requirements on
          each of the two immediately following Business Days. If the
          Remarketing Agent cannot establish a Remarketing Rate meeting these
          requirements on either of those days, the remarketing in such period
          will be deemed to have failed (a "Failed Remarketing"). In the event
          of a Failed Remarketing with respect to the first Remarketing Period,
          the Remarketing Agent will undertake the procedures set forth in
          clause (i) above on each of the three Business Days in the second
          Remarketing Period. In the event of a Failed Remarketing in the second
          Remarketing Period, the Remarketing Agent will further attempt to
          establish such a Remarketing Rate on the third Business Day
          immediately preceding the Share Purchase Date. If, in spite of using
          its commercially reasonable best efforts, the Remarketing Agent fails
          to remarket the Notes underlying the Normal Units at a price equal to
          at least 100.25% of the Remarketing Value in accordance with the terms
          of the Pledge Agreement by 4:00 p.m., New York City time, on the third
          Business Day immediately preceding the Share Purchase Date, the "Last
          Failed Remarketing" will be deemed to have occurred. Each remarketing
          attempt that takes place in accordance with this Section 5.4 after the
          Remarketing Date is referred to herein as a "Subsequent Remarketing."
          Within three Business Days following the date of a Failed Remarketing
          or the Last Failed Remarketing, as the case may be, the Remarketing
          Agent shall return any Notes delivered to it to the Collateral Agent
          and the Custodial Agent, as applicable. The Collateral Agent, for the
          benefit of the Company, may exercise its rights as a secured party
          with respect to such Notes, including those actions specified in (b)
          (iii) below; provided that if upon the Last Failed Remarketing, the
          Collateral Agent exercises such rights for the benefit of the Company
          with respect to such Notes, any accumulated and unpaid interest on
          such Notes will become payable by Platinum Underwriters Finance to the
          Agent for payment to the Holders of the Normal Units to which such
          Notes relate. Such payment will be made by Platinum Underwriters
          Finance on or prior to 11:00 a.m., New York City time, on the Share
          Purchase Date in lawful money of the United

                                       52
<Page>

          States by certified or cashier's check or wire transfer in immediately
          available funds payable to or upon the order of the Agent. The Company
          will cause a notice of any Failed Remarketing and of the Last Failed
          Remarketing to be published on the fourth Business Day following each
          Failed Remarketing and the Last Failed Remarketing, as the case may
          be, in a daily newspaper in the English language of general
          circulation in The City of New York, which shall be THE WALL STREET
          JOURNAL, if such newspaper is then so published. The Company will also
          release this information by means of Bloomberg and Reuters newswire.

               (iii)   With respect to any Notes which constitute part of Normal
          Units which are subject to the Last Failed Remarketing, the Collateral
          Agent for the benefit of the Company reserves all of its rights as a
          secured party with respect thereto and, subject to applicable law and
          Section 5.4 (e) below, may, among other things, (A) retain such Notes
          in full satisfaction of the Holders' obligations under the Purchase
          Contracts or (B) sell such Notes in one or more public or private
          sales or otherwise.

               (iv)    A Holder of Normal Units may elect not to participate in
          the remarketing and retain the Notes underlying such Units by
          notifying the Agent of such election and delivering the specific U.S.
          Treasury security or securities (including the CUSIP number and/or the
          principal terms of such security or securities) identified by the
          Agent (as having been based solely on the identification that the
          Remarketing Agent shall have advised the Agent) that constitute the
          U.S. Treasury securities described in clauses (i) and (ii) of the
          definition of Remarketing Value relating to the retained Notes (as if
          only such Notes were being remarketed) (the "Opt-out Treasury
          Consideration") to the Agent not later than 10:00 a.m., New York City
          time, on the fourth Business Day prior to the beginning of any
          Remarketing Period. Upon receipt thereof by the Agent, the Agent shall
          deliver such Opt-out Treasury Consideration to the Collateral Agent,
          which will, for the benefit of the Company, thereupon apply such
          Opt-out Treasury Consideration to secure such Holder's obligations
          under the Purchase Contracts. On the Business Day immediately
          preceding the first day of a Remarketing Period, the Collateral Agent,
          pursuant to the terms of the Pledge Agreement, will deliver the
          Pledged Notes of such Holder to the Agent. Within three Business Days
          following the last day of such Remarketing Period, (A) if the
          remarketing was successful, the Agent shall distribute such Notes to
          the Holders thereof, and (B) if there was a Failed Remarketing on such
          date, the Agent will deliver such Notes to the Collateral Agent, which
          will, for the benefit of the Company, thereupon apply such Notes to
          secure such Holders' obligations under the Purchase Contract and
          return the Opt-out Treasury Consideration delivered by such Holders to
          such Holders. A Holder that does not so deliver the Opt-out Treasury
          Consideration or does

                                       53
<Page>

          not so notify the agent of its election not to participate in the
          remarketing pursuant to this clause (iv) shall be deemed to have
          elected to participate in the remarketing.

          (c)  Upon the maturity of the Pledged Treasury Securities underlying
     the Stripped Units and, in the event of a successful remarketing, a
     Prepayment Event or a Tax Event Redemption, the Pledged Treasury
     Consideration underlying the Normal Units on the Share Purchase Date, the
     Collateral Agent shall remit to the Company an amount equal to the
     aggregate Purchase Price applicable to such Units, as payment for the
     Common Shares issuable upon settlement thereof without needing to receive
     any instructions from the Holders of such Units. In the event the payments
     in respect of the Pledged Treasury Securities or the Pledged Treasury
     Consideration underlying a Unit is in excess of the Purchase Price of the
     Purchase Contract being settled thereby, the Collateral Agent will
     distribute such excess to the Agent for the benefit of the Holder of such
     Unit when received.

          (d)  Any distribution to Holders of excess funds and interest
     described in Section 5.4 (b) and (c) above shall be payable at the
     Corporate Trust Office or, at the option of the Holder or the holder of
     Separate Notes, as applicable, by check mailed to the address of the Person
     entitled thereto at such address as it appears on the Register or by wire
     transfer to an account maintained in the United States specified by the
     Holder or the holder of Separate Notes, as applicable.

          (e)  Notwithstanding anything to the contrary herein or in the Pledge
     Agreement, subject to Section 3.2 of the Pledge Agreement, the obligations
     of each Holder to pay the Purchase Price are non-recourse obligations and
     are payable solely out of the proceeds of any Collateral pledged to secure
     the obligations of the Holders (except to the extent paid by Cash
     Settlement, Early Settlement or Merger Early Settlement) and in no event
     will Holders be liable for any deficiency between such payments and the
     Purchase Price.

          (f)  Notwithstanding anything to the contrary herein, the Company
     shall not be obligated to issue any Common Shares in respect of a Purchase
     Contract or deliver any certificates therefor to the Holder of the related
     Unit unless the Company shall have (i) received payment in full of the
     aggregate Purchase Price for the Common Shares to be purchased thereunder
     by such Holder in the manner herein set forth or (ii) exercised its rights
     as a secured party under Section 5.4(b)(iii).

          SECTION 5.5 ISSUANCE OF COMMON SHARES.

          Unless a Termination Event shall have occurred on or prior to the
Share Purchase Date or an Early Settlement or a Merger Early Settlement shall
have occurred, on the Share Purchase Date, upon the Company's receipt of payment
in full of the Purchase Price for the Common Shares purchased by the Holders
pursuant to the

                                       54
<Page>

foregoing provisions of this Article and subject to Section 5.6(b) or the
Company's exercise of its rights as a secured party pursuant to Section
5.4(b(iii), the Company shall issue and deposit with the Agent, for the benefit
of the Holders of the Outstanding Units, one or more certificates representing
the newly issued Common Shares, registered in the name of the Agent (or its
nominee) as custodian for the Holders (such certificates for Common Shares,
together with any dividends or distributions for which both a record date and
payment date for such dividend or distribution has occurred after the Share
Purchase Date, being hereinafter referred to as the "Purchase Contract
Settlement Fund"), to which the Holders are entitled hereunder. Subject to the
foregoing, upon surrender of a Certificate to the Agent on or after the Share
Purchase Date, together with settlement instructions thereon duly completed and
executed, the Holder of such Certificate shall be entitled to receive in
exchange therefor a certificate representing that number of whole Common Shares
which such Holder is entitled to receive pursuant to the provisions of this
Article V (after taking into account all Units then held by such Holder)
together with cash in lieu of fractional shares as provided in Section 5.12 and
any dividends or distributions with respect to such shares constituting part of
the Purchase Contract Settlement Fund, but without any interest thereon, and the
Certificate so surrendered shall forthwith be cancelled. Such shares shall be
registered in the name of the Holder or the Holder's designee as specified in
the settlement instructions provided by the Holder to the Agent. If any Common
Shares issued in respect of a Purchase Contract are to be registered to a Person
other than the Person in whose name the Certificate evidencing such Purchase
Contract is registered, no such registration shall be made unless the Person
requesting such registration has paid any transfer and other taxes required by
reason of such registration in a name other than that of the registered Holder
of such Certificate or has established to the satisfaction of the Company that
such tax either has been paid or is not payable.

          SECTION 5.6 ADJUSTMENT OF SETTLEMENT RATE.

          (a)  Adjustments for Dividends, Distributions, Stock Splits, Etc.

               (1)     STOCK DIVIDENDS. In case the Company shall pay or make a
          dividend or other distribution on the Common Shares in Common Shares,
          the Settlement Rate, as in effect at the opening of business on the
          day following the date fixed for the determination of shareholders
          entitled to receive such dividend or other distribution shall be
          increased by dividing such Settlement Rate by a fraction of which the
          numerator shall be the number of Common Shares outstanding at the
          close of business on the date fixed for such determination and the
          denominator shall be the sum of such number of Common Shares and the
          total number of Common Shares constituting such dividend or other
          distribution, such increase to become effective immediately after the
          opening of business on the day following the date fixed for such
          determination. For the purposes of this paragraph (1), the number of
          Common Shares at the time outstanding shall not include shares held in
          the treasury of the Company but shall include any

                                       55
<Page>

          shares issuable in respect of any scrip certificates issued in lieu of
          fractions of Common Shares. The Company will not pay any dividend or
          make any distribution on Common Shares held in the treasury of the
          Company.

               (2)     SHARE PURCHASE RIGHTS. In case the Company shall issue
          rights, options or warrants to all holders of its Common Shares (that
          are not available on an equivalent basis to Holders of the Units upon
          settlement of the Purchase Contracts underlying such Units) entitling
          them, for a period expiring within 45 days after the record date for
          the determination of shareholders entitled to receive such rights,
          options or warrants, to subscribe for or purchase Common Shares at a
          price per share less than the Current Market Price per Common Share on
          the date fixed for the determination of shareholders entitled to
          receive such rights, options or warrants (other than pursuant to a
          dividend reinvestment, share purchase or similar plan), the Settlement
          Rate in effect at the opening of business on the day following the
          date fixed for such determination shall be increased by dividing such
          Settlement Rate by a fraction, the numerator of which shall be the
          number of Common Shares outstanding at the close of business on the
          date fixed for such determination plus the number of Common Shares
          which the aggregate of the offering price of the total number of
          Common Shares so offered for subscription or purchase would purchase
          at such Current Market Price per Common Share and the denominator of
          which shall be the number of Common Shares outstanding at the close of
          business on the date fixed for such determination plus the number of
          Common Shares so offered for subscription or purchase, such increase
          to become effective immediately after the opening of business on the
          day following the date fixed for such determination. For the purposes
          of this paragraph (2), the number of Common Shares at any time
          outstanding shall not include shares held in the treasury of the
          Company but shall include any shares issuable in respect of any scrip
          certificates issued in lieu of fractions of Common Shares. The Company
          shall not issue any such rights, options or warrants in respect of
          Common Shares held in the treasury of the Company.

               (3)     STOCK SPLITS; REVERSE SPLITS. In case outstanding Common
          Shares shall be subdivided or split into a greater number of Common
          Shares, the Settlement Rate in effect at the opening of business on
          the day following the day upon which such subdivision or split becomes
          effective shall be proportionately increased, and, conversely, in case
          outstanding Common Shares shall each be combined into a smaller number
          of Common Shares, the Settlement Rate in effect at the opening of
          business on the day following the day upon which such combination
          becomes effective shall be proportionately reduced, such increase or
          reduction, as the case may be, to become effective immediately after
          the opening of

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          business on the day following the day upon which such subdivision,
          split or combination becomes effective.

               (4)     DEBT OR ASSET DISTRIBUTIONS. (i) In case the Company
          shall, by dividend or otherwise, distribute to all holders of its
          Common Shares evidences of its indebtedness or assets (including
          securities, but excluding any rights or warrants referred to in
          paragraph (2) of this Section, shares of capital stock of any class or
          series, or similar equity interests, of or relating to a subsidiary or
          other business unit in the case of a Spin-Off referred to in the next
          paragraph, or any dividend or distribution paid exclusively in cash
          and any dividend or distribution referred to in paragraph (1) of this
          Section), the Settlement Rate shall be adjusted so that the same shall
          equal the rate determined by dividing the Settlement Rate in effect
          immediately prior to the close of business on the date fixed for the
          determination of shareholders entitled to receive such distribution by
          a fraction, the numerator of which shall be the Current Market Price
          per Common Share on the date fixed for such determination less the
          then fair market value (as determined by the Board of Directors, whose
          determination shall be conclusive and described in a Board Resolution
          filed with the Agent) of the portion of the assets or evidences of
          indebtedness so distributed applicable to one Common Share and the
          denominator of which shall be such Current Market Price per Common
          Share, such adjustment to become effective immediately prior to the
          opening of business on the day following the date fixed for the
          determination of shareholders entitled to receive such distribution.
          In any case in which this paragraph (4) is applicable, paragraph (2)
          of this Section shall not be applicable.

               (ii) In the case of a Spin-Off, the Settlement Rate in effect
          immediately before the close of business on the record date fixed for
          determination of shareholders entitled to receive that distribution
          will be increased by multiplying the Settlement Rate by a fraction,
          the numerator of which is the Current Market Price per Common Share
          plus the Fair Market Value of the portion of those shares of Capital
          Stock or similar equity interests so distributed applicable to one
          Common Share and the denominator of which is the Current Market Price
          per Common Share. Any adjustment to the settlement rate under this
          paragraph 4(ii) will occur on the date that is the earlier of (1) the
          tenth Trading Day following the effective date of the Spin-Off and (2)
          the date of the securities being offered in the Initial Public
          Offering of the Spin-Off, if that Initial Public Offering is effected
          simultaneously with the Spin-Off.

               (5)     CASH DISTRIBUTIONS. In case the Company shall, (i) by
          dividend or otherwise, distribute to all holders of its Common Shares
          cash (excluding any cash that is distributed in a Reorganization Event
          to which

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          Section 5.6(b) applies or as part of a distribution referred to in
          paragraph (4) of this Section) in an aggregate amount that, combined
          together with (ii) the aggregate amount of any other distributions to
          all holders of its Common Shares made exclusively in cash (other than
          regular quarterly, semi-annual or annual cash dividends) within the 12
          months preceding the date of payment of such distribution and in
          respect of which no adjustment pursuant to this paragraph (5) or
          paragraph (6) of this Section has been made and (iii) the aggregate of
          any cash plus the fair market value as of the date or expiration of
          the tender or exchange offer referred to below (as determined by the
          Board of Directors, whose determination shall be conclusive and
          described in a Board Resolution filed with the Agent) of consideration
          payable in respect of any tender or exchange offer (other than
          consideration payable in respect of any odd-lot tender offer) by the
          Company or any of its subsidiaries for all or any portion of the
          Common Shares concluded within the 12 months preceding the date of
          payment of the distribution described in clause (i) above and in
          respect of which no adjustment pursuant to this paragraph (5) or
          paragraph (6) of this Section has been made, exceeds 10% of the
          product of the Current Market Price per Common Share on the date for
          the determination of holders of Common Shares entitled to receive such
          distribution times the number of Common Shares outstanding on such
          date, then, and in each such case, immediately after the close of
          business on such date for determination, the Settlement Rate shall be
          increased so that the same shall equal the rate determined by dividing
          the Settlement Rate in effect immediately prior to the close of
          business on the date fixed for determination of the shareholders
          entitled to receive such distribution by a fraction (A) the numerator
          of which shall be equal to the Current Market Price per Common Share
          on the date fixed for such determination less an amount equal to the
          quotient of (x) the combined amount distributed or payable in the
          transactions described in clauses (i), (ii) and (iii) above and (y)
          the number of Common Shares outstanding on such date for determination
          and (B) the denominator of which shall be equal to the Current Market
          Price per Common Share on such date for determination.

               (6)     TENDER OFFERS. In case (i) a tender or exchange offer
          made by the Company or any subsidiary of the Company for all or any
          portion of the Common Shares shall expire and such tender or exchange
          offer (as amended upon the expiration thereof) shall require the
          payment to shareholders (based on the acceptance (up to any maximum
          specified in the terms of the tender or exchange offer) of Purchased
          Shares) of an aggregate consideration having a fair market value (as
          determined by the Board of Directors, whose determination shall be
          conclusive and described in a Board Resolution filed with the Agent)
          that when combined together with (ii) the aggregate of the cash plus
          the fair market value (as determined by the Board of Directors, whose
          determination shall be

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          conclusive and described in a Board Resolution filed with the Agent),
          as of the expiration of such tender or exchange offer (other than
          consideration payable in respect of any odd-lot tender offer), of
          consideration payable in respect of any other tender or exchange
          offer, by the Company or any subsidiary of the Company for all or any
          portion of the Common Shares expiring within the 12 months preceding
          the expiration of such tender or exchange offer and in respect of
          which no adjustment pursuant to paragraph (5) of this Section or this
          paragraph (6) has been made and (iii) the aggregate amount of any
          distributions to all holders of the Company's Common Shares made
          exclusively in cash (other than regular quarterly, semi-annual or
          annual cash dividends) within the 12 months preceding the expiration
          of such tender or exchange offer and in respect of which no adjustment
          pursuant to paragraph (5) of this Section or this paragraph (6) has
          been made, exceeds 10% of the product of the Current Market Price per
          Common Share as of the last time (the "Expiration Time") tenders could
          have been made pursuant to such tender or exchange offer (as it may be
          amended) times the number of Common Shares outstanding (including any
          tendered shares) on the Expiration Time, then, and in each such case,
          immediately prior to the opening of business on the day after the date
          of the Expiration Time, the Settlement Rate shall be adjusted so that
          the same shall equal the rate determined by dividing the Settlement
          Rate immediately prior to the close of business on the date of the
          Expiration Time by a fraction (A) the numerator of which shall be
          equal to (x) the product of (I) the Current Market Price per Common
          Share on the date of the Expiration Time and (II) the number of Common
          Shares outstanding (including any tendered shares) on the Expiration
          Time less (y) the amount of cash plus the fair market value
          (determined as aforesaid) of the aggregate consideration payable to
          shareholders based on the transactions described in clauses (i), (ii)
          and (iii) above (assuming in the case of clause (i) the acceptance, up
          to any maximum specified in the terms of the tender or exchange offer,
          of Purchased Shares), and (B) the denominator of which shall be equal
          to the product of (x) the Current Market Price per Common Share as of
          the Expiration Time and (y) the number of Common Shares outstanding
          (including any tendered shares) as of the Expiration Time less the
          number of all shares validly tendered and not withdrawn as of the
          Expiration Time (the shares deemed so accepted, up to any such
          maximum, being referred to as the "Purchased Shares").

               (7)     RECLASSIFICATION. The reclassification of Common Shares
          into securities including securities other than Common Shares (other
          than any reclassification upon a Reorganization Event to which Section
          5.6(b) applies) shall be deemed to involve (i) a distribution of such
          securities other than Common Shares to all holders of Common Shares
          (and the effective date of such reclassification shall be deemed to be
          "the date fixed

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<Page>

          for the determination of shareholders entitled to receive such
          distribution" and the "date fixed for such determination" within the
          meaning of paragraph (4) of this Section), and (ii) a subdivision,
          split or combination, as the case may be, of the number of Common
          Shares outstanding immediately prior to such reclassification into the
          number of Common Shares outstanding immediately thereafter (and the
          effective date of such reclassification shall be deemed to be "the day
          upon which such subdivision or split becomes effective" or "the day
          upon which such combination becomes effective," as the case may be,
          and "the day upon which such subdivision, split or combination becomes
          effective" within the meaning of paragraph (3) of this Section).

               (8)     "CURRENT MARKET PRICE". The "Current Market Price" per
          Common Share means (a) on any day the average of the Closing Price per
          Common Share on each of the 20 consecutive Trading Days ending on the
          earlier of the day in question and the day before the "ex date" with
          respect to the issuance or distribution requiring such computation,
          (b) in the case of any Spin-Off that is effected simultaneously with
          an Initial Public Offering of the securities being distributed in the
          Spin-Off, the Closing Price of the Common Shares on the Trading Day on
          which the initial price of the securities being distributed in the
          Spin-Off is determined, and (c) in the case of any other Spin-Off, the
          average of the Closing Prices per Common Share over the first 10
          Trading Days after the effective date of such Spin-Off. For purposes
          of this paragraph, the term "ex date," when used with respect to any
          issuance or distribution, shall mean the first date on which the
          Common Shares trades regular way on such exchange or in such market
          without the right to receive such issuance or distribution.

               (9)     CALCULATION OF ADJUSTMENTS. All adjustments to the
          Settlement Rate shall be calculated to the nearest 1/10,000th of a
          Common Share (or if there is not a nearest 1/10,000th of a share to
          the next lower 1/10,000th of a share). No adjustment in the Settlement
          Rate shall be required unless such adjustment would require an
          increase or decrease of at least one percent therein; provided, that
          any adjustments which by reason of this subparagraph are not required
          to be made shall be carried forward and taken into account in any
          subsequent adjustment. If an adjustment is made to the Settlement Rate
          pursuant to paragraph (1), (2), (3), (4), (5), (6), (7) or (10) of
          this Section 5.6(a), an adjustment shall also be made to the
          Applicable Market Value solely to determine which of clauses (i), (ii)
          or (iii) of the definition of Settlement Rate in Section 5.1(a) will
          apply on the Share Purchase Date. Such adjustment shall be made by
          multiplying the Applicable Market Value by a fraction, the numerator
          of which shall be the Settlement Rate immediately after such
          adjustment pursuant to paragraph (1), (2), (3), (4), (5), (6), (7) or
          (10) of this Section 5.6(a) and the denominator of which shall be the
          Settlement Rate

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<Page>

          immediately before such adjustment; provided, that if such adjustment
          to the Settlement Rate is required to be made pursuant to the
          occurrence of any of the events contemplated by paragraph (1), (2),
          (3), (4), (5), (7) or (10) of this Section 5.6(a) during the period
          taken into consideration for determining the Applicable Market Value,
          appropriate and customary adjustments shall be made to the Settlement
          Rate.

               (10)    INCREASE OF SETTLEMENT RATE. The Company may make such
          increases in the Settlement Rate, in addition to those required by
          this Section, as it considers to be advisable in order to avoid or
          diminish any income tax to any holders of Common Shares resulting from
          any dividend or distribution of Capital Stock or issuance of rights or
          warrants to purchase or subscribe for stock or from any event treated
          as such for income tax purposes or for any other reasons.

          (b)  Adjustment for Consolidation, Merger or Other Reorganization
     Event.

          In the event of

               (1)     any consolidation or merger of the Company with or into
          another Person (other than a merger or consolidation in which the
          Company is the continuing corporation and in which the Common Shares
          outstanding immediately prior to the merger or consolidation is not
          exchanged for cash, securities or other property of the Company or
          another corporation),

               (2)     any sale, transfer, lease or conveyance to another Person
          of the property of the Company as an entirety or substantially as an
          entirety,

               (3)     any statutory exchange of securities of the Company with
          another Person (other than in connection with a merger or
          acquisition), or

               (4)     any liquidation, dissolution or winding up of the Company
          other than as a result of or after the occurrence of a Termination
          Event (any such event, a "Reorganization Event"),

each Common Share covered by each Purchase Contract forming part of a Unit
immediately prior to such Reorganization Event shall, after such Reorganization
Event, be converted for purposes of the Purchase Contract into the kind and
amount of securities, cash and other property receivable in such Reorganization
Event (without any interest thereon, and without any right to dividends or
distribution thereon which have a record date that is prior to the Share
Purchase Date per Common Share) by a holder of Common Shares that (i) is not a
Person with which the Company consolidated or into which the Company merged or
which merged into the Company or to which such sale or transfer was made, as the
case may be (any such Person, a "Constituent Person"), or an

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Affiliate of a Constituent Person to the extent such Reorganization Event
provides for different treatment of Common Shares held by Affiliates of the
Company and non-Affiliates, and (ii) failed to exercise his rights of election,
if any, as to the kind or amount of securities, cash and other property
receivable upon such Reorganization Event (provided that if the kind or amount
of securities, cash and other property receivable upon such Reorganization Event
is not the same for each Common Share held immediately prior to such
Reorganization Event by a Person other than a Constituent Person or an Affiliate
thereof and in respect of which such rights of election shall not have been
exercised ("Non-electing Share"), then for the purpose of this Section the kind
and amount of securities, cash and other property receivable upon such
Reorganization Event by each Non-electing Share shall be deemed to be the kind
and amount so receivable per Common Share by a plurality of the Non-electing
Shares). On the Share Purchase Date, the Settlement Rate then in effect will be
applied to the value on the Share Purchase Date of such securities, cash or
other property.

          In the event of such a Reorganization Event, the Person formed by such
consolidation, merger or exchange or the Person which acquires the assets of the
Company or, in the event of a liquidation or dissolution of the Company, the
Company or a liquidating trust created in connection therewith, shall execute
and deliver to the Agent an agreement supplemental hereto providing that the
Holder of each Outstanding Unit shall have the rights provided by this Section
5.6. Such supplemental agreement shall provide for adjustments which, for events
subsequent to the effective date of such supplemental agreement, shall be as
nearly equivalent as may be practicable to the adjustments provided for in this
Section. The above provisions of this Section shall similarly apply to
successive Reorganization Events.

          SECTION 5.7 NOTICE OF ADJUSTMENTS AND CERTAIN OTHER EVENTS.

          (a)  Whenever the Settlement Rate is adjusted as herein provided, the
     Company shall:

               (i)     forthwith compute the Settlement Rate in accordance with
          Section 5.6 and prepare and transmit to the Agent an Officers'
          Certificate setting forth the Settlement Rate, the method of
          calculation thereof in reasonable detail, and the facts requiring such
          adjustment and upon which such adjustment is based; and

               (ii)    as soon as practicable following the occurrence of an
          event that requires an adjustment to the Settlement Rate pursuant to
          Section 5.6 (or if the Company is not aware of such occurrence, as
          soon as practicable after becoming so aware), provide a written notice
          to the Agent of the occurrence of such event and a statement setting
          forth in reasonable detail the method by which the adjustment to the
          Settlement Rate was determined and setting forth the adjusted
          Settlement Rate.

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          (b)  The Agent shall not at any time be under any duty or
     responsibility to any Holder of Units to determine whether any facts exist
     which may require any adjustment of the Settlement Rate, or with respect to
     the nature or extent or calculation of any such adjustment when made, or
     with respect to the method employed in making the same. The Agent shall not
     be accountable with respect to the validity or value (or the kind or
     amount) of any Common Shares, or of any securities or property, which may
     at the time be issued or delivered with respect to any Purchase Contract,
     and the Agent makes no representation with respect thereto. The Agent shall
     not be responsible for any failure of the Company to issue, transfer or
     deliver any Common Shares pursuant to a Purchase Contract or to comply with
     any of the duties, responsibilities or covenants of the Company contained
     in this Article.

          SECTION 5.8 TERMINATION EVENT; NOTICE.

          The Purchase Contracts and all obligations and rights of the Company
and the Holders thereunder, including, without limitation, the rights of Holders
to receive Contract Adjustment Payments, if any, or any Deferred Contract
Adjustment Payments and obligations of Holders to purchase Common Shares, shall
immediately and automatically terminate, without the necessity of any notice or
action by any Holder, the Agent or the Company, if, on or prior to the Share
Purchase Date, a Termination Event shall have occurred. Upon and after the
occurrence of a Termination Event, the Normal Units shall thereafter represent
the right to receive the Notes or the appropriate Treasury Consideration, as the
case may be, forming a part of such Normal Units, and the Stripped Units shall
thereafter represent the right to receive the Treasury Securities forming a part
of such Stripped Units, in each case in accordance with the provisions of
Section 4.3 of the Pledge Agreement. Upon the occurrence of a Termination Event,
the Company shall promptly but in no event later than two Business Days
thereafter give written notice to the Agent, the Collateral Agent and to the
Holders, at their addresses as they appear in the Register.

          SECTION 5.9 EARLY SETTLEMENT.

          (a)  Subject to and upon compliance with the provisions of this
     Section 5.9, Purchase Contracts underlying Units having an aggregate Stated
     Amount equal to $1,000 or an integral multiple thereof may, at the option
     of the Holder thereof, be settled early ("Early Settlement") on or prior to
     10:00 a.m., New York City time, on the seventh Business Day immediately
     preceding the Share Purchase Date. Holders of Stripped Units (and after a
     Prepayment Event, Holders of Normal Units) may only effect Early Settlement
     of the related Purchase Contracts in integral multiples of 40 Stripped
     Units, and if Treasury Consideration has been substituted for the Notes as
     a component in the Normal Units due to a successful remarketing or the
     occurrence of a Tax Event Redemption, Purchase Contracts underlying such
     Normal Units may only be settled early in integral multiples of Normal
     Units such that the Treasury

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     Consideration to be deposited and the Treasury Consideration to be released
     are in integral multiples of $1,000. In order to exercise the right to
     effect Early Settlement with respect to any Purchase Contracts, the Holder
     of the Certificate evidencing the related Units shall deliver such
     Certificate to the Agent at the Corporate Trust Office duly endorsed for
     transfer to the Company or in blank with the form of Election to Settle
     Early on the reverse thereof duly completed and accompanied by payment
     payable to the Company in immediately available funds in an amount (the
     "Early Settlement Amount") equal to (A) the product of (i) the Purchase
     Price multiplied by (ii) the number of Purchase Contracts with respect to
     which the Holder has elected to effect Early Settlement, plus (B) if such
     delivery is made with respect to any Purchase Contracts during the period
     from the close of business on any Record Date next preceding any Payment
     Date to the opening of business on such Payment Date, an amount equal to
     the Contract Adjustment Payments, if any, payable on such Payment Date with
     respect to such Purchase Contracts; provided that no payment shall be
     required pursuant to clause (B) of this sentence if the Company shall have
     elected to defer the Contract Adjustment Payments which would otherwise be
     payable on such Payment Date. Except as provided in the immediately
     preceding sentence and subject to Section 5.2(d), no payment or adjustment
     shall be made upon Early Settlement of any Purchase Contract on any
     Contract Adjustment Payments accrued on such Purchase Contract or on
     account of any dividends on the Common Shares issued upon such Early
     Settlement. If the foregoing requirements are first satisfied with respect
     to Purchase Contracts underlying any Unit at or prior to 5:00 p.m., New
     York City time, on a Business Day, such day shall be the "Early Settlement
     Date" with respect to such Unit and if such requirements are first
     satisfied after 5:00 p.m., New York City time, on a Business Day or on a
     day that is not a Business Day, the "Early Settlement Date" with respect to
     such Units shall be the next succeeding Business Day.

          (b)  Upon Early Settlement of any Purchase Contract by the Holder of
     the related Units, the Company shall issue, and the Holder shall be
     entitled to receive, * Common Shares on account of such Purchase Contract
     (the "Early Settlement Rate"). The Early Settlement Rate shall be adjusted
     in the same manner and at the same time as the Settlement Rate is adjusted
     pursuant to Section 5.6. As promptly as practicable after Early Settlement
     of Purchase Contracts in accordance with the provisions of this Section
     5.9, the Company shall issue and shall deliver to the Agent at the
     Corporate Trust Office a certificate or certificates for the full number of
     Common Shares issuable upon such Early Settlement together with payment in
     lieu of any fraction of a share, as provided in Section 5.12.

          (c)  No later than the third Business Day after the applicable Early
     Settlement Date the Company shall cause (i) the Common Shares issuable upon
     Early Settlement of Purchase Contracts to be issued and delivered, and (ii)
     the related Pledged Notes or Pledged Treasury Consideration, in the case of
     Normal

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     Units, or the related Pledged Treasury Securities, in the case of Stripped
     Units, to be released from the Pledge by the Collateral Agent and
     transferred, in each case, to the Agent for delivery to the Holder thereof
     or the Holder's designee.

          (d)  Upon Early Settlement of any Purchase Contracts, and subject to
     receipt of Common Shares from the Company and the Pledged Notes, Pledged
     Treasury Consideration or Pledged Treasury Securities, as the case may be,
     from the Collateral Agent, as applicable, the Agent shall, in accordance
     with the instructions provided by the Holder thereof on the applicable form
     of Election to Settle Early on the reverse of the Certificate evidencing
     the related Units, (i) transfer to the Holder the Pledged Notes, Pledged
     Treasury Consideration or Pledged Treasury Securities, as the case may be,
     forming a part of such Units, and (ii) deliver to the Holder a certificate
     or certificates for the full number of Common Shares issuable upon such
     Early Settlement together with payment in lieu of any fraction of a share,
     as provided in Section 5.12.

          (e)  In the event that Early Settlement is effected with respect to
     Purchase Contracts underlying less than all the Units evidenced by a
     Certificate, upon such Early Settlement the Company shall execute and the
     Agent shall authenticate, execute on behalf of the Holder and deliver to
     the Holder thereof, at the expense of the Company, a Certificate evidencing
     the Units as to which Early Settlement was not effected.

          (f)  No Early Settlement will be permitted under this Section 5.9
     unless, at the time of delivery of the Election to Settle Early form or the
     time the Early Settlement is effected, there is an effective registration
     statement with respect to the Common Shares to be issued and delivered in
     connection with such Early Settlement, if such a registration statement is
     required (in the view of counsel, which need not be in the form of a
     written opinion, for either the Company or the Agent) under the Securities
     Act. If such a registration statement is so required, the Company covenants
     and agrees to use its commercially reasonable efforts to (A) have in effect
     a registration statement covering the Common Shares to be delivered in
     respect of the Purchase Contracts being settled and (B) provide a
     prospectus in connection therewith, in each case in a form that the Agent
     may use in connection with such Early Settlement.

          SECTION 5.10 EARLY SETTLEMENT UPON CASH MERGER.

          (a)  In the event of a merger or consolidation of the Company of the
     type described in clause (1) of Section 5.6(b) in which the Common Shares
     outstanding immediately prior to such merger or consolidation are exchanged
     for consideration consisting of at least 30% cash or cash equivalents (any
     such event a "Cash Merger"), then the Company (or the successor to the
     Company hereunder) shall be required to offer the Holder of each Unit the
     right to settle the Purchase Contract underlying such Unit prior to the
     Share Purchase Date

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     ("Merger Early Settlement") as provided herein. On or before the fifth
     Business Day after the consummation of a Cash Merger, the Company or, at
     the request and expense of the Company, the Agent, shall give all Holders
     notice of the occurrence of the Cash Merger and of the right of Merger
     Early Settlement arising as a result thereof. The Company shall also
     deliver a copy of such notice to the Agent and the Collateral Agent.

          Each such notice shall contain:

               (i)     the date, which shall be not less than 20 nor more than
          30 calendar days after the date of such notice, on which the Merger
          Early Settlement will be effected (the "Merger Early Settlement
          Date");

               (ii)    the date, which shall be on or one Business Day prior to
          the Merger Early Settlement Date, by which the Merger Early Settlement
          right must be exercised;

               (iii)   the Settlement Rate in effect as a result of such Cash
          Merger and the kind and amount of securities, cash and other property
          receivable by the Holder upon settlement of each Purchase Contract
          pursuant to Section 5.6(b);

               (iv)    a statement to the effect that all or a portion of the
          Purchase Price payable by the Holder to settle the Purchase Contract
          will be offset against the amount of cash so receivable upon exercise
          of Merger Early Settlement, as applicable; and

               (v)     the instructions a Holder must follow to exercise the
          Merger Early Settlement right.

          (b)  To exercise a Merger Early Settlement right, a Holder shall
     deliver to the Agent at the Corporate Trust Office on or before 5:00 p.m.,
     New York City time, on the date specified in the notice the Certificate(s)
     evidencing the Units with respect to which the Merger Early Settlement
     right is being exercised duly endorsed for transfer to the Company or in
     blank with the form of Election to Settle Early on the reverse thereof duly
     completed and accompanied by payment payable to the Company in immediately
     available funds in an amount equal to the Early Settlement Amount less the
     amount of cash that otherwise would be deliverable by the Company or its
     successor upon settlement of the Purchase Contract in lieu of Common Shares
     pursuant to Section 5.6(b) and as described in the notice to Holders (the
     "Merger Early Settlement Amount").

          (c)  On the Merger Early Settlement Date, the Company shall deliver or
     cause to be delivered (i) the net cash, securities and other property to be
     received by such exercising Holder, equal to the Settlement Rate as
     adjusted pursuant to Section 5.6, in respect of the number of Purchase
     Contracts for which

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     such Merger Early Settlement right was exercised, and (ii) the related
     Pledged Notes or Pledged Treasury Consideration, in the case of Normal
     Units, or Pledged Treasury Securities, in the case of Stripped Units, to be
     released from the Pledge by the Collateral Agent and transferred, in each
     case, to the the Corporate Trust Office for delivery to the Holder thereof
     or its designee. In the event a Merger Early Settlement right shall be
     exercised by a Holder in accordance with the terms hereof, all references
     herein to Share Purchase Date shall be deemed to refer to such Merger Early
     Settlement Date.

          (d)  Upon Merger Early Settlement of any Purchase Contracts, and
     subject to receipt of such net cash, securities or other property from the
     Company and the Pledged Notes, Pledged Treasury Consideration or Pledged
     Treasury Securities, as the case may be, from the Collateral Agent, as
     applicable, the Agent shall, in accordance with the instructions provided
     by the Holder thereof on the applicable form of Election to Settle Early on
     the reverse of the Certificate evidencing the related Units, (i) transfer
     to the Holder the Pledged Notes, Pledged Treasury Consideration or Pledged
     Treasury Securities, as the case may be, forming a part of such Units, and
     (ii) deliver to the Holder such net cash, securities or other property
     issuable upon such Merger Early Settlement together with payment in lieu of
     any fraction of a share, as provided in Section 5.12.

          (e)  In the event that Merger Early Settlement is effected with
     respect to Purchase Contracts underlying less than all the Units evidenced
     by a Certificate, upon such Merger Early Settlement the Company (or the
     successor to the Company hereunder) shall execute and the Agent shall
     authenticate, execute on behalf of the Holder and deliver to the Holder
     thereof, at the expense of the Company, a Certificate evidencing the Units
     as to which Merger Early Settlement was not effected.

          SECTION 5.11 CHARGES AND TAXES.

          The Company will pay all stock transfer and similar taxes attributable
to the initial issuance and delivery of the Common Shares pursuant to the
Purchase Contracts and in payment of any Deferred Contract Adjustment Payments;
provided, that the Company shall not be required to pay any such tax or taxes
which may be payable in respect of any exchange of or substitution for a
Certificate evidencing a Unit or any issuance of a Common Share in a name other
than that of the registered Holder of a Certificate surrendered in respect of
the Units evidenced thereby, other than in the name of the Agent, as custodian
for such Holder, and the Company shall not be required to issue or deliver such
Common Share certificates or Certificates unless and until the Person or Persons
requesting the transfer or issuance thereof shall have paid to the Company the
amount of such tax or shall have established to the satisfaction of the Company
that such tax has been paid.

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          SECTION 5.12 NO FRACTIONAL SHARES.

          No fractional shares or scrip representing fractional Common Shares
shall be issued or delivered upon settlement on the Share Purchase Date or upon
Early Settlement or Merger Early Settlement of any Purchase Contracts. If
Certificates evidencing more than one Purchase Contract shall be surrendered for
settlement at one time by the same Holder, the number of full Common Shares
which shall be delivered upon settlement shall be computed on the basis of the
aggregate number of Purchase Contracts evidenced by the Certificates so
surrendered. Instead of any fractional Common Share which would otherwise be
deliverable upon settlement of any Purchase Contracts on the applicable
Settlement Date or upon Early Settlement or Merger Early Settlement, the
Company, through the Agent, shall make a cash payment in respect of such
fractional shares in an amount equal to the value of such fractional shares
times the Applicable Market Value. The Company shall provide the Agent from time
to time with sufficient funds to permit the Agent to make all cash payments
required by this Section 5.12 in a timely manner.

                                   ARTICLE VI

                                    REMEDIES

          SECTION 6.1 UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PURCHASE
CONTRACT ADJUSTMENT PAYMENTS AND PURCHASE COMMON SHARES.

          The Holder of any Unit shall have the right, which is absolute and
unconditional,

          (a)  subject to the right of the Company to defer payment thereof
     pursuant to Section 5.3, and to the forfeiture of any Deferred Contract
     Adjustment Payments upon Early Settlement pursuant to Section 5.9 or upon
     Merger Early Settlement pursuant to Section 5.10 or upon the occurrence of
     a Termination Event, to receive payment of each installment of the Contract
     Adjustment Payments, if any, with respect to the Purchase Contract
     constituting a part of such Unit on the respective Payment Date for such
     Unit, and to institute suit for the enforcement of such right to receive
     Contract Adjustment Payments, and

          (b)  to purchase Common Shares pursuant to the Purchase Contract
     constituting a part of such Unit and to institute suit for the enforcement
     of any such right to purchase Common Shares, and such rights shall not be
     impaired without the consent of such Holder.

          SECTION 6.2 RESTORATION OF RIGHTS AND REMEDIES.

          If any Holder has instituted any proceeding to enforce any right or
remedy under this Agreement and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to such Holder, then
and in every such case,

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subject to any determination in such proceeding, the Company and such Holder
shall be restored severally and respectively to their former positions hereunder
and thereafter all rights and remedies of such Holder shall continue as though
no such proceeding had been instituted.

          SECTION 6.3 RIGHTS AND REMEDIES CUMULATIVE.

          Except as otherwise provided with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Certificates in Section 3.10(f),
no right or remedy herein conferred upon or reserved to the Holders is intended
to be exclusive of any other right or remedy, and every right and remedy shall,
to the extent permitted by law, be cumulative and in addition to every other
right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

          SECTION 6.4 DELAY OR OMISSION NOT WAIVER.

          No delay or omission of any Holder to exercise any right or remedy
upon a default shall impair any such right or remedy or constitute a waiver of
any such right. Every right and remedy given by this Article or by law to the
Holders may be exercised from time to time, and as often as may be deemed
expedient, by such Holders.

          SECTION 6.5 UNDERTAKING FOR COSTS.

          All parties to this Agreement agree, and each Holder of a Unit, by its
acceptance of such Unit shall be deemed to have agreed, that any court may in
its discretion require, in any suit for the enforcement of any right or remedy
under this Agreement, or in any suit against the Agent for any action taken,
suffered or omitted by it as Agent, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may in
its discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; provided that
the provisions of this Section shall not apply to any suit instituted by the
Company, to any suit instituted by the Agent, to any suit instituted by any
Holder, or group of Holders, holding in the aggregate more than 10% of the
Outstanding Units, or to any suit instituted by any Holder for the enforcement
of distributions on any Notes or Contract Adjustment Payments, if any, on any
Purchase Contract on or after the respective Payment Date therefor in respect of
any Unit held by such Holder, or for enforcement of the right to purchase Common
Shares under the Purchase Contract constituting part of any Unit held by such
Holder.

          SECTION 6.6 WAIVER OF STAY OR EXTENSION LAWS.

          The Company covenants (to the extent that it may lawfully do so) that
it will not at any time insist upon, or plead, or in any manner whatsoever claim
or take the

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benefit or advantage of, any stay or extension law wherever enacted, now or at
any time hereafter in force, which may affect the covenants or the performance
of this Agreement; and the Company (to the extent that it may lawfully do so)
hereby expressly waives all benefit or advantage of any such law, but will
suffer and permit the execution of every such power as though no such law had
been enacted.

                                   ARTICLE VII

                                    THE AGENT

          SECTION 7.1 CERTAIN DUTIES AND RESPONSIBILITIES.

          (a)  (1) The Agent undertakes to perform, with respect to the Units
     and Separate Notes, such duties and only such duties as are specifically
     set forth in this Agreement and the Pledge Agreement, and no implied
     covenants or obligations shall be read into this Agreement against the
     Agent; and

               (2)     in the absence of bad faith, willful misconduct or
          negligence on its part, the Agent may, with respect to the Units and
          Separate Notes, conclusively rely, as to the truth of the statements
          and the correctness of the opinions expressed therein, upon
          certificates or opinions furnished to the Agent and conforming to the
          requirements of this Agreement, but in the case of any certificates or
          opinions which by any provision hereof are specifically required to be
          furnished to the Agent, the Agent shall be under a duty to examine the
          same to determine whether or not they conform to the requirements of
          this Agreement (but need not confirm or investigate the accuracy of
          the mathematical calculations or other facts stated therein).

          (b)  No provision of this Agreement shall be construed to relieve the
     Agent from liability for its own negligent action, its own negligent
     failure to act, its own bad faith or its own willful misconduct, except
     that:

               (1)     this paragraph (b) shall not be construed to limit the
          effect of paragraph (a) of this Section;

               (2)     the Agent shall not be liable for any error of judgment
          made in good faith by a Responsible Officer, unless it shall be proved
          that the Agent was negligent in ascertaining the pertinent facts; and

               (3)     no provision of this Agreement shall require the Agent to
          expend or risk its own funds or otherwise incur any financial
          liability in the performance of any of its duties hereunder, or in the
          exercise of any of its rights or powers.

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          (c)  Whether or not therein expressly so provided, every provision of
     this Agreement relating to the conduct or affecting the liability of or
     affording protection to the Agent shall be subject to the provisions of
     this Section.

          (d)  The Agent is authorized to execute and deliver the Pledge
     Agreement in its capacity as Agent. The Agent shall be entitled to all of
     the rights, privileges, immunities and indemnities contained in this
     Agreement with respect to any duties of the Agent under, or actions taken,
     omitted to be taken or suffered by the Agent pursuant to the Pledge
     Agreement.

          SECTION 7.2 NOTICE OF DEFAULT.

          Within 30 days after the occurrence of any default by the Company
hereunder of which a Responsible Officer of the Agent has actual knowledge, the
Agent shall transmit by mail to the Company and the Holders of Units, as their
names and addresses appear in the applicable Register, notice of such default
hereunder, unless such default shall have been cured or waived.

          SECTION 7.3 CERTAIN RIGHTS OF AGENT.

          Subject to the provisions of Section 7.1:

          (a)  the Agent may conclusively rely and shall be fully protected in
     acting or refraining from acting upon any resolution, certificate,
     statement, instrument, opinion, report, notice, request, direction,
     consent, order, bond, debenture, note, other evidence of indebtedness or
     other paper or document reasonably believed by it to be genuine and to have
     been signed or presented by the proper party or parties;

          (b)  any request or direction of the Company mentioned herein shall be
     sufficiently evidenced by an Officers' Certificate, Issuer Order or Issuer
     Request, and any resolution of the Board of Directors of the Company may be
     sufficiently evidenced by a Board Resolution;

          (c)  whenever in the administration of this Agreement the Agent shall
     deem it desirable that a matter be proved or established prior to taking,
     suffering or omitting any action hereunder, the Agent (unless other
     evidence be herein specifically prescribed) may, in the absence of bad
     faith on its part, rely upon an Officers' Certificate of the Company;

          (d)  the Agent may consult with counsel and the advice of such counsel
     or any Opinion of Counsel shall be full and complete authorization and
     protection in respect of any action taken, suffered or omitted by it
     hereunder in good faith and in reliance thereon;

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          (e)  the Agent shall not be bound to make any investigation into the
     facts or matters stated in any resolution, certificate, statement,
     instrument, opinion, report, notice, request, direction, consent, order,
     bond, debenture, note, other evidence of indebtedness or other paper or
     document, but the Agent, in its discretion, may make reasonable further
     inquiry or investigation into such facts or matters related to the
     execution, delivery and performance of the Purchase Contracts as it may see
     fit, and, if the Agent shall determine to make such further inquiry or
     investigation, it shall be given a reasonable opportunity to examine the
     books, records and premises of the Company, personally or by agent or
     attorney; and

          (f)  the Agent may execute any of the powers hereunder or perform any
     duties hereunder either directly or by or through agents or attorneys or an
     Affiliate of the Agent and the Agent shall not be responsible for any
     misconduct or negligence on the part of any agent or attorney or an
     Affiliate appointed by the Agent with due care PROVIDED that such agent or
     attorney or Affiliate agrees for the benefit of the Company and the Holders
     that it is and shall be subject to the same standards as the Agent's
     hereunder.

          SECTION 7.4 NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF UNITS.

          The recitals contained herein and in the Certificates shall be taken
as the statements of the Company and the Agent assumes no responsibility for
their accuracy. The Agent makes no representations as to the validity or
sufficiency of either this Agreement or of the Units, or of the Pledge Agreement
or the Pledge. The Agent shall not be accountable for the use or application by
the Company of the Units or the proceeds therefrom or in respect of the Purchase
Contracts.

          SECTION 7.5 MAY HOLD UNITS.

          Any Registrar or any other agent of the Company, or the Agent and its
Affiliates, in their individual or any other capacity, may become the owner or
pledgee of Units and may otherwise deal with the Company, the Collateral Agent
or any other Person with the same rights it would have if it were not Registrar
or such other agent, or the Agent.

          SECTION 7.6 MONEY HELD IN CUSTODY.

          Money held by the Agent in custody hereunder need not be segregated
from the Agent's other funds except to the extent required by law or provided
herein. The Agent shall be under no obligation to invest or pay interest on any
money received by it hereunder except as otherwise agreed in writing with the
Company.

          SECTION 7.7 COMPENSATION AND REIMBURSEMENT.

          The Company agrees:

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          (a)  to pay to the Agent from time to time reasonable compensation for
     all services rendered by it hereunder;

          (b)  except as otherwise expressly provided herein, to reimburse the
     Agent upon its request for all reasonable expenses, disbursements and
     advances incurred or made by the Agent in accordance with any provision of
     this Agreement (including the reasonable compensation and the reasonable
     expenses and disbursements of its agents and counsel), except any such
     expense, disbursement or advance as may be attributable to its negligence,
     willful misconduct or bad faith; and

          (c)  to indemnify the Agent and any predecessor Agent for, and to hold
     it harmless against, any loss, liability or expense incurred without
     negligence, willful misconduct or bad faith on its part, arising out of or
     in connection with the acceptance or administration of its duties
     hereunder, including the costs and expenses of defending itself against any
     claim or liability in connection with the exercise or performance of any of
     its powers or duties hereunder. The Agent shall promptly notify the Company
     of any third party claim which may give rise to the indemnity hereunder and
     give the Company the opportunity to control the defense of such claim with
     counsel reasonably satisfactory to the indemnified party, and no such claim
     shall be settled without the written consent of the Company, which consent
     shall not be unreasonably withheld.

          For purposes of this Section 7.7, "Agent" shall include any
predecessor Agent; provided, however, that the negligence, bad faith or willful
misconduct of any Agent hereunder shall not affect the rights of any other Agent
hereunder.

          The provisions of this Section 7.7 shall survive the termination of
this Agreement, the satisfaction or discharge of the Units and/or the Separate
Notes and/or the resignation or removal of the Agent.

          SECTION 7.8 CORPORATE AGENT REQUIRED; ELIGIBILITY.

          There shall at all times be an Agent hereunder which shall be a
corporation organized and doing business under the laws of the United States of
America, any State thereof or the District of Columbia, authorized under such
laws to exercise corporate trust powers, having (or being a member of a bank
holding company having) a combined capital and surplus of at least $50,000,000,
subject to supervision or examination by federal or state authority and having a
Corporate Trust Office in the Borough of Manhattan, The City of New York, if
there be such a corporation, qualified and eligible under this Article and
willing to act on reasonable terms. If such corporation publishes reports of
condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition
so published. If at any time the Agent shall cease to be eligible in accordance
with the provisions of this

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Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.

          SECTION 7.9 RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.

          (a)  No resignation or removal of the Agent and no appointment of a
     successor Agent pursuant to this Article shall become effective until the
     acceptance of appointment by the successor Agent in accordance with the
     applicable requirements of Section 7.10.

          (b)  The Agent may resign at any time by giving written notice thereof
     to the Company 60 days prior to the effective date of such resignation. If
     the instrument of acceptance by a successor Agent required by Section 7.10
     shall not have been delivered to the Agent within 30 days after the giving
     of such notice of resignation, the resigning Agent may petition any court
     of competent jurisdiction for the appointment of a successor Agent.

          (c)  The Agent may be removed at any time by Act of the Holders of a
     majority in number of the Outstanding Units delivered to the Agent and the
     Company.

          (d)  If at any time:

               (1)     the Agent fails to comply with Section 310(b) of the TIA,
          as if the Agent were an indenture trustee under an indenture qualified
          under the TIA, after written request therefor by the Company or by any
          Holder who has been a bona fide Holder of a Unit for at least six
          months; or

               (2)     the Agent shall cease to be eligible under Section 7.8
          and shall fail to resign after written request therefor by the Company
          or by any such Holder; or

               (3)     the Agent shall become incapable of acting or shall be
          adjudged a bankrupt or insolvent or a receiver of the Agent or of its
          property shall be appointed or any public officer shall take charge or
          control of the Agent or of its property or affairs for the purpose of
          rehabilitation, conservation or liquidation;

     then, in any such case, (x) the Company by a Board Resolution may remove
     the Agent, or (y) any Holder who has been a bona fide Holder of a Unit for
     at least six months may, on behalf of himself and all others similarly
     situated, petition any court of competent jurisdiction for the removal of
     the Agent and the appointment of a successor Agent.

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          (e)  If the Agent shall resign, be removed or become incapable of
     acting, or if a vacancy shall occur in the office of Agent for any reason,
     the Company, by a Board Resolution, shall promptly appoint a successor
     Agent and shall comply with the applicable requirements of Section 7.10. If
     no successor Agent shall have been so appointed by the Company and accepted
     appointment in the manner required by Section 7.10, any Holder who has been
     a bona fide Holder of a Unit for at least six months may, on behalf of
     itself and all others similarly situated, petition any court of competent
     jurisdiction for the appointment of a successor Agent.

          (f)  The Company shall give, or shall cause such successor Agent to
     give, notice of each resignation and each removal of the Agent and each
     appointment of a successor Agent by mailing written notice of such event by
     first-class mail, postage prepaid, to all Holders as their names and
     addresses appear in the applicable Register. Each notice shall include the
     name of the successor Agent and the address of its Corporate Trust Office.

          SECTION 7.10 ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.

          (a)  In case of the appointment hereunder of a successor Agent, every
     such successor Agent so appointed shall execute, acknowledge and deliver to
     the Company and to the retiring Agent an instrument accepting such
     appointment, and thereupon the resignation or removal of the retiring Agent
     shall become effective and such successor Agent, without any further act,
     deed or conveyance, shall become vested with all the rights, powers,
     agencies and duties of the retiring Agent. On the request of the Company or
     the successor Agent, such retiring Agent shall, upon payment of its
     charges, execute and deliver an instrument transferring to such successor
     Agent all the rights, powers and trusts of the retiring Agent and shall
     duly assign, transfer and deliver to such successor Agent all property and
     money held by such retiring Agent hereunder.

          (b)  Upon request of any such successor Agent, the Company shall
     execute any and all instruments for more fully and certainly vesting in and
     confirming to such successor Agent all such rights, powers and agencies
     referred to in paragraph (a) of this Section.

          (c)  No successor Agent shall accept its appointment unless at the
     time of such acceptance such successor Agent shall be qualified and
     eligible under this Article.

          SECTION 7.11 MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO
BUSINESS.

          Any Person into which the Agent may be merged or converted or with
which it may be consolidated, or any Person resulting from any merger,
conversion or consolidation to which the Agent shall be a party, or any Person
succeeding to all or

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substantially all the corporate trust business of the Agent, shall be the
successor of the Agent hereunder, provided such Person shall be otherwise
qualified and eligible under this Article, without the execution or filing of
any paper or any further act on the part of any of the parties hereto. In case
any Certificates shall have been authenticated and executed on behalf of the
Holders, but not delivered, by the Agent then in office, any successor to such
Agent shall adopt such authentication and execution and deliver the Certificates
so authenticated and executed with the same effect as if such successor Agent
had itself authenticated and executed such Units.

          SECTION 7.12 PRESERVATION OF INFORMATION.

          The Agent shall preserve, in as current a form as is reasonably
practicable, the names and addresses of Holders received by the Agent in its
capacity as Registrar.

          SECTION 7.13 NO OBLIGATIONS OF AGENT.

          Except to the extent otherwise provided in this Agreement, the Agent
assumes no obligation and shall not be subject to any liability under this
Agreement, the Pledge Agreement or any Purchase Contract in respect of the
obligations of the Holder of any Unit thereunder. The Company agrees, and each
Holder of a Certificate, by such Holder's acceptance thereof, shall be deemed to
have agreed, that the Agent's execution of the Certificates on behalf of the
Holders shall be solely as agent and attorney-in-fact for the Holders, and that
the Agent shall have no obligation to perform such Purchase Contracts on behalf
of the Holders, except to the extent expressly provided in Article V.

          SECTION 7.14 TAX COMPLIANCE.

          (a)  The Agent, on its own behalf and on behalf of the Company, will
     comply with all applicable certification, information reporting and
     withholding (including "backup" withholding) requirements imposed by
     applicable tax laws, regulations or administrative practice with respect to
     (i) any payments made with respect to the Units or (ii) the issuance,
     delivery, holding, transfer, redemption or exercise of rights under the
     Units. Such compliance shall include, without limitation, the preparation
     and timely filing of required returns and the timely payment of all amounts
     required to be withheld to the appropriate taxing authority or its
     designated agent.

          (b)  The Agent shall comply with any reasonable written direction
     timely received from the Company with respect to the execution or
     certification of any required documentation and the application of such
     requirements to particular payments or Holders or in other particular
     circumstances, and may for purposes of this Agreement conclusively rely on
     any such direction in accordance with the provisions of Section 7.1(a)(2).

          (c)  The Agent shall maintain all appropriate records documenting
     compliance with such requirements, and shall make such records available,
     on

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     written request, to the Company or its authorized representative within a
     reasonable period of time after receipt of such request.

                                  ARTICLE VIII

                             SUPPLEMENTAL AGREEMENTS

          SECTION 8.1 SUPPLEMENTAL AGREEMENTS WITHOUT CONSENT OF HOLDERS.

Without the consent of any Holders, the Company and the Agent, at any time and
from time to time, may enter into one or more agreements supplemental hereto, in
form satisfactory to the Company and the Agent, for any of the following
purposes:

          (a)  to evidence the succession of another Person to the Company, and
     the assumption by any such successor of the covenants of the Company herein
     and in the Certificates; or

          (b)  to add to the covenants of the Company for the benefit of the
     Holders, or to surrender any right or power herein conferred upon the
     Company; or

          (c)  to evidence and provide for the acceptance of appointment
     hereunder by a successor Agent; or

          (d)  to make provision with respect to the rights of Holders pursuant
     to the requirements of Section 5.6(b) or 5.10; or

          (e)  to cure any ambiguity, to correct or supplement any provisions
     herein which may be inconsistent with any other provisions herein, or to
     make any other provisions with respect to such matters or questions arising
     under this Agreement, provided such action shall not adversely affect the
     interests of the Holders.

          SECTION 8.2 SUPPLEMENTAL AGREEMENTS WITH CONSENT OF HOLDERS.

          (a)  With the consent of the Holders of not less than a majority of
     the outstanding Purchase Contracts voting together as one class, by Act of
     said Holders delivered to the Company and the Agent, the Company, when
     authorized by a Board Resolution, and the Agent may enter into an agreement
     or agreements supplemental hereto for the purpose of modifying in any
     manner the terms of the Purchase Contracts, or the provisions of this
     Agreement or the rights of the Holders in respect of the Units; provided,
     however, that, except as contemplated herein, no such supplemental
     agreement shall, without the consent of the Holder of each Outstanding Unit
     affected thereby:

               (1)     change any Payment Date;

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               (2)     change the amount or the type of Collateral required to
          be Pledged to secure a Holder's obligations under the Purchase
          Contract, impair the right of the Holder of any Purchase Contract to
          receive distributions on the related Collateral (except for the rights
          of Holders of Normal Units to substitute the Treasury Securities for
          the Pledged Notes or Pledged Treasury Consideration or the rights of
          holders of Stripped Units to substitute Notes or appropriate Treasury
          Consideration for the Pledged Treasury Securities) or otherwise
          materially adversely affect the Holder's rights in or to such
          Collateral;

               (3)     reduce any Contract Adjustment Payments or any Deferred
          Contract Adjustment Payment, or change any place where, or the coin or
          currency in which, any Contract Adjustment Payment is payable or
          increase any amounts payable in respect of the Units or decrease any
          other amounts receivable by Holders in respect of the Units;

               (4)     impair the right to institute suit for the enforcement of
          any Purchase Contract, any Contract Adjustment Payment, if any, or any
          Deferred Contract Adjustment Payment, if any;

               (5)     reduce the number of Common Shares to be purchased
          pursuant to any Purchase Contract, increase the price to purchase
          Common Shares upon settlement of any Purchase Contract, change the
          Share Purchase Date or otherwise materially adversely affect the
          Holder's rights under any Purchase Contract; or

               (6)     reduce the percentage of the outstanding Purchase
          Contracts the consent of whose Holders is required for any such
          supplemental agreement;

     PROVIDED, that if any amendment or proposal referred to above would
     adversely affect only the Normal Units or the Stripped Units, then only the
     affected class of Holder as of the record date for the Holders entitled to
     vote thereon will be entitled to vote on or consent to such amendment or
     proposal, and such amendment or proposal shall not be effective except with
     the consent of Holders of not less than a majority of such class; provided,
     however, that no such agreement, whether with or without the consent of
     Holders, shall affect Section 3.16.

          (b)  It shall not be necessary for any Act of Holders under this
     Section to approve the particular form of any proposed supplemental
     agreement, but it shall be sufficient if such Act shall approve the
     substance thereof.

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          SECTION 8.3 EXECUTION OF SUPPLEMENTAL AGREEMENTS.

          In executing, or accepting the additional agencies created by, any
supplemental agreement permitted by this Article or the modifications thereby of
the agencies created by this Agreement, the Agent shall be entitled to receive
and (subject to Section 7.1) shall be fully protected in relying upon, an
Officer's Certificate and an Opinion of Counsel stating that the execution of
such supplemental agreement is authorized or permitted by this Agreement and
that all conditions precedent to the execution of such supplemental agreement
have been satisfied. The Agent shall enter into any such supplemental agreement
which does not materially adversely affect the Agent's own rights, duties or
immunities under this Agreement or otherwise.

          SECTION 8.4 EFFECT OF SUPPLEMENTAL AGREEMENTS.

          Upon the execution of any supplemental agreement under this Article,
this Agreement shall be modified in accordance therewith, and such supplemental
agreement shall form a part of this Agreement for all purposes; and every Holder
of Certificates theretofore or thereafter authenticated, executed on behalf of
the Holders and delivered hereunder shall be bound thereby.

          SECTION 8.5 REFERENCE TO SUPPLEMENTAL AGREEMENTS.

          Certificates authenticated, executed on behalf of the Holders and
delivered after the execution of any supplemental agreement pursuant to this
Article may, and shall if required by the Agent, bear a notation in form
approved by the Agent as to any matter provided for in such supplemental
agreement. If the Company shall so determine, new Certificates so modified as to
conform, in the opinion of the Agent and the Company, to any such supplemental
agreement may be prepared and executed by the Company and authenticated,
executed on behalf of the Holders and delivered by the Agent in exchange for
Outstanding Certificates.

                                   ARTICLE IX

                    CONSOLIDATION, MERGER, SALE OR CONVEYANCE

          SECTION 9.1 COVENANT NOT TO MERGE, CONSOLIDATE, SELL OR CONVEY
PROPERTY EXCEPT UNDER CERTAIN CONDITIONS.

          The Company covenants that, so long as any Units are outstanding,
it will not (a) merge with or into or consolidate with any other Person or
(b) transfer, lease or convey all or substantially all its assets to any
Person, unless (i) either the Company shall be the continuing entity, or the
successor (if other than the Company) shall be a corporation, partnership or
trust organized and existing under the laws of Bermuda or the United States
of America or a State thereof or the District of Columbia and such Person
shall expressly assume all the obligations of the Company under the Purchase
Contracts, this Agreement, the Remarketing Agreement and the Pledge Agreement
by one or more

                                       79
<Page>

supplemental agreements in form reasonably satisfactory to the Agent and the
Collateral Agent, executed and delivered to the Agent and the Collateral Agent
by such Person, and (ii) the Company or such successor, as the case may be,
shall not, immediately after such merger or consolidation, or such transfer,
lease or conveyance, be in default in the performance of any covenant or
condition hereunder, under any of the Purchase Contracts, under the Remarketing
Agreement or under the Pledge Agreement.

          SECTION 9.2 RIGHTS AND DUTIES OF SUCCESSOR CORPORATION.

          (a)  In case of any such consolidation, merger, transfer, lease or
     conveyance and upon any such assumption by a successor entity in accordance
     with Section 9.1, such successor entity shall succeed to and be substituted
     for the Company with the same effect as if it had been named herein as the
     Company. Such successor entity thereupon may cause to be signed, and may
     issue either in its own name or in the name of the Company, any or all of
     the Certificates evidencing Units issuable hereunder which theretofore
     shall not have been signed by the Company and delivered to the Agent; and,
     upon the order of such successor corporation, instead of the Company, and
     subject to all the terms, conditions and limitations in this Agreement
     prescribed, the Agent shall authenticate and execute on behalf of the
     Holders and deliver any Certificates which previously shall have been
     signed and delivered by the officers of the Company to the Agent for
     authentication, execution on behalf of the Holder and delivery, and any
     Certificate evidencing Units which such successor entity thereafter shall
     cause to be signed and delivered to the Agent for that purpose. All the
     Certificates so issued shall in all respects have the same legal rank and
     benefit under this Agreement as the Certificates theretofore or thereafter
     issued in accordance with the terms of this Agreement as though all of such
     Certificates had been issued at the date of the execution hereof.

          (b)  In case of any such consolidation, merger, transfer, lease or
     conveyance such change in phraseology and form (but not in substance) may
     be made in the Certificates evidencing Units thereafter to be issued as may
     be appropriate.

          SECTION 9.3 OPINION OF COUNSEL GIVEN TO AGENT.

          The Agent, subject to Sections 7.1 and 7.3, shall receive an Opinion
of Counsel as conclusive evidence that any such consolidation, merger, transfer,
lease or conveyance, and any such assumption, complies with the provisions of
this Article and that all conditions precedent to the consummation of any such
consolidation, merger, sale, assignment, transfer, lease or conveyance have been
met.

                                       80
<Page>

                                    ARTICLE X

                                    COVENANTS

          SECTION 10.1 PERFORMANCE UNDER PURCHASE CONTRACTS.

          The Company covenants and agrees for the benefit of the Holders from
time to time of the Units that it will duly and punctually perform its
obligations under the Purchase Contracts in accordance with the terms of the
Purchase Contracts and this Agreement.

          SECTION 10.2 MAINTENANCE OF OFFICE OR AGENCY.

          (a)  The Company will maintain in the Borough of Manhattan, The City
     of New York an office or agency where Certificates may be presented or
     surrendered for acquisition of Common Shares upon settlement of the
     Purchase Contracts on any Settlement Date and for transfer of Collateral
     upon occurrence of a Termination Event, where Certificates may be
     surrendered for registration of transfer or exchange, for a Collateral
     Substitution or reestablishment of Normal Units and where notices and
     demands to or upon the Company in respect of the Units and this Agreement
     may be served. The Company will give prompt written notice to the Agent of
     the location, and any change in the location, of such office or agency. If
     at any time the Company shall fail to maintain any such required office or
     agency or shall fail to furnish the Agent with the address thereof, such
     presentations, surrenders, notices and demands may be made or served at the
     Corporate Trust Office, and the Company hereby appoints the Agent as its
     agent to receive all such presentations, surrenders, notices and demands.

          (b)  The Company may also from time to time designate one or more
     other offices or agencies where Certificates may be presented or
     surrendered for any or all such purposes and may from time to time rescind
     such designations; provided, however, that no such designation or
     rescission shall in any manner relieve the Company of its obligation to
     maintain an office or agency in the Borough of Manhattan, The City of New
     York for such purposes. The Company will give prompt written notice to the
     Agent of any such designation or rescission and of any change in the
     location of any such other office or agency. The Company hereby designates
     as the place of payment for the Units the Corporate Trust Office and
     appoints the Agent at its Corporate Trust Office as paying agent in such
     city.

          SECTION 10.3 COMPANY TO RESERVE COMMON SHARES.

          The Company shall at all times prior to the Share Purchase Date
reserve and keep available, free from preemptive rights, out of its authorized
but unissued Common Shares the maximum number of Common Shares issuable against
tender of

                                       81
<Page>

payment in respect of all Purchase Contracts constituting a part of the Units
evidenced by Outstanding Certificates.

          SECTION 10.4 COVENANTS AS TO COMMON SHARES.

          The Company covenants that all Common Shares which may be issued
against tender of payment in respect of any Purchase Contract constituting a
part of the Outstanding Units will, upon issuance, be duly authorized, validly
issued, fully paid and nonassessable.

          SECTION 10.5 STATEMENTS OF OFFICER OF THE COMPANY AS TO DEFAULT.

          The Company will deliver to the Agent, within 120 days after the end
of each fiscal year of the Company ending after the date hereof, an Officers'
Certificate, stating whether or not to the best knowledge of the signers
thereof the Company is in default in the performance and observance of any of
the terms, provisions and conditions hereof, and if the Company shall be in
default, specifying all such defaults and the nature and status thereof of
which such Officers may have knowledge. In the event the Company shall change
its fiscal year at any time the Units are outstanding, the Company shall
notify the Agent of the effective date of such change.

                                       82
<Page>

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed as of the day and year first above written.

                                       PLATINUM UNDERWRITERS HOLDINGS, LTD.

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                       JPMORGAN CHASE BANK,
                                       as Purchase Contract Agent

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:

<Page>

                                    EXHIBIT A
                        FORM OF NORMAL UNITS CERTIFICATE
                       (FORM OF GLOBAL CERTIFICATE LEGEND)

[THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE MEANING OF THE PURCHASE
CONTRACT AGREEMENT (AS DEFINED ON THE REVERSE HEREOF) AND IS REGISTERED IN THE
NAME OF THE CLEARING AGENCY OR A NOMINEE THEREOF. THIS CERTIFICATE MAY NOT BE
EXCHANGED IN WHOLE OR IN PART FOR A CERTIFICATE REGISTERED, AND NO TRANSFER OF
THIS CERTIFICATE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY
PERSON OTHER THAN SUCH CLEARING AGENCY OR A NOMINEE THEREOF, EXCEPT IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AGREEMENT.]*

[SO LONG AS DTC IS THE DEPOSITARY, INSERT: Unless this Certificate is presented
by an authorized representative of The Depository Trust Company (55 Water
Street, New York, New York) to the Company or its agent for registration or
transfer, exchange or payment, and any Certificate issued is registered in the
name of Cede & Co., or such other name as requested by an authorized
representative of the Depository Trust Company, and any payment hereon is made
to Cede & Co., ANY TRANSFER PLEDGE OR OTHER USE HEREOF OR OTHERWISE BY A PERSON
IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest
herein.]

                   (Form of Face of Normal Units Certificate)

                      Platinum Underwriters Holdings, Ltd.

              ___% Adjustable Conversion Rate Equity Security Units

No._______________                      CUSIP No.
Number of Normal Units _____________

          This Normal Units Certificate certifies that _____ is the registered
Holder of the number of Normal Units set forth above. Each Normal Unit
represents (i) either (a) a 1/40, or 2.5%, beneficial ownership interest of the
Holder in one % Senior Note due 2007 (the "Note") of Platinum Underwriters
Finance, Inc., a Delaware corporation, having a principal amount of $1,000,
subject to the Pledge of such Note by such Holder pursuant to the Pledge
Agreement, or (b) if the Note has been remarketed by the Remarketing Agent (or
if the Holder has elected not to have the Note remarketed or a Tax Event
Redemption has occurred), the appropriate Treasury Consideration, subject to the
Pledge of such Treasury Consideration by such Holder pursuant to the Pledge
Agreement, and (ii) the rights and obligations of the Holder under one Purchase
Contract with Platinum Underwriters Holdings, Ltd., a Bermuda corporation (the
"Company").

----------
* To be inserted in Global Certificates only.

                                       A-1
<Page>

Each Normal Unit will have a stated amount of $25 (the "Stated Amount"). All
capitalized terms used herein which are defined in the Purchase Contract
Agreement have the meaning set forth therein.

          Pursuant to the Pledge Agreement, the interest in the Note or the
appropriate Treasury Consideration, as the case may be, constituting part of
each Normal Unit evidenced hereby has been pledged to the Collateral Agent, for
the benefit of the Company, to secure the obligations of the Holder under the
Purchase Contract comprising a part of such Normal Unit to purchase Common
Shares of the Company. Prior to the purchase of Common Shares under each
Purchase Contract, such Purchase Contracts shall not entitle the Holders of
Normal Units Certificates to any of the rights of a holder of Common Shares,
including without limitation, the right to vote or receive any dividends or
other payments or to consent or to receive notice as shareholders in respect of
the meetings of shareholders, or for the election of directors of the Company or
for any other matter or any other rights whatsoever as shareholder of the
Company.

          The Pledge Agreement provides that all payments in respect of the
Pledged Notes or Pledged Treasury Consideration received by the Collateral
Agent shall be paid by the Collateral Agent by wire transfer in same day
funds (i) in the case of (A) quarterly cash distributions on Normal Units
which include Pledged Notes or Pledged Treasury Consideration and (B) any
payments in respect of the Notes or Treasury Consideration, as the case may
be, that have been released from the Pledge pursuant to the Pledge Agreement,
to the Agent to the account designated by the Agent, no later than 10:00
a.m., New York City time, on the Business Day such payment is received by the
Collateral Agent (provided that in the event such payment is received by the
Collateral Agent on a day that is not a Business Day or after 9:00 a.m., New
York City time, on a Business Day, then such payment shall be made no later
than 9:30 a.m., New York City time, on the next succeeding Business Day) and
(ii) in the case of payments in respect of any Pledged Notes or Pledged
Treasury Consideration, as the case may be, to be paid upon settlement of
such Holder's obligations to purchase Common Shares under the Purchase
Contract, to the Company on the Share Purchase Date (as defined herein) in
accordance with the terms of the Pledge Agreement, in full satisfaction of
the respective obligations of the Holders of the Normal Units of which such
Pledged Notes or Pledged Treasury Consideration are a part under the Purchase
Contracts forming a part of such Normal Units. Quarterly distributions on
Normal Units which include Pledged Notes or Pledged Treasury Consideration
(other than Prepayment Treasury Consideration) which are payable quarterly in
arrears on *, *, *, and * each year, commencing *, 2002 (a "Payment Date"),
shall, subject to receipt thereof by the Agent from the Trustee or Collateral
Agent, as the case may be, be paid to the Person in whose name this Normal
Units Certificate (or a Predecessor Normal Units Certificate) is registered
at the close of business on the Record Date for such Payment Date.

          Each Purchase Contract evidenced hereby obligates the Holder of this
Normal Units Certificate to purchase, and the Company to sell, on *, 2005 (the
"Share Purchase Date"), at a price equal to $25 (the "Purchase Price"), a number
of Common

                                       A-2
<Page>

Shares, $0.01 par value per share ("Common Shares"), of the Company, equal to
the Settlement Rate, unless on or prior to the Share Purchase Date there shall
have occurred a Termination Event or an Early Settlement or Merger Early
Settlement with respect to the Normal Units of which such Purchase Contract is a
part, all as provided in the Purchase Contract Agreement, as defined and more
fully described on the reverse hereof. The Purchase Price for the Common Shares
purchased pursuant to each Purchase Contract evidenced hereby, if not paid
earlier, shall be satisfied on the Share Purchase Date by either (i) the
application of payments received with regard to Pledged Treasury Consideration,
or (ii) the exercise of the Company's rights as a secured party in connection
with the Pledged Notes, as the case may be.

          Payments on the Notes or the appropriate Treasury Consideration will
be payable at the office of the Agent in The City of New York or, at the option
of the Company, by check mailed to the address of the Person entitled thereto as
such address appears on the Normal Units Register or by wire transfer to an
account specified by the Company.

          The Company shall pay on each Payment Date in respect of each Purchase
Contract forming part of a Normal Unit evidenced hereby an amount (the "Contract
Adjustment Payments") equal to *% per year of the Stated Amount, computed on the
basis of a 360-day year of twelve 30-day months, subject to deferral at the
option of the Company as provided in the Purchase Contract Agreement and more
fully described on the reverse hereof (provided that if on any date on which
Contract Adjustment Payments are to be made on the Purchase Contracts is not a
Business Day, then payment of the Contract Adjustment Payments payable on that
date will be made on the next succeeding day which is a Business Day, and no
interest or payment will be paid in respect of the delay, except that if such
next succeeding Business Day is in the next succeeding calendar year, such
payment will be made on the immediately preceding Business Day). Such Contract
Adjustment Payments shall be payable to the Person in whose name this Normal
Units Certificate (or a Predecessor Normal Units Certificate) is registered at
the close of business on the Record Date for such Payment Date.

          Contract Adjustment Payments will be payable at the office of the
Agent in The City of New York or, at the option of the Company, by check mailed
to the address of the Person entitled thereto as such address appears on the
Normal Units Register or by wire transfer to the account designated by such
Person in writing.

          Reference is hereby made to the further provisions set forth on the
reverse hereof, which further provisions shall for all purposes have the same
effect as if set forth at this place.

          Unless the certificate of authentication hereon has been executed by
the Agent by manual signature, this Normal Units Certificate shall not be
entitled to any benefit under the Pledge Agreement or the Purchase Contract
Agreement or be valid or obligatory for any purpose.

                                       A-3
<Page>

          IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

Dated:
      -------------

                                       PLATINUM UNDERWRITERS HOLDINGS, LTD.

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                       HOLDER SPECIFIED ABOVE (as to obligations
                                       of such Holder under the Purchase
                                       Contracts evidenced hereby)

                                       By: JPMORGAN CHASE BANK,
                                           not individually but solely as
                                           Attorney-in-Fact of such Holder

                                           By:
                                              ----------------------------------
                                              Name:
                                              Title:

                                       A-4
<Page>

                      AGENT'S CERTIFICATE OF AUTHENTICATION

          This is one of the Normal Units Certificates referred to in the within
mentioned Purchase Contract Agreement.

                                           JPMORGAN CHASE BANK,
                                           as Purchase Contract Agent

Dated:                                     By:
      ----------------                        ----------------------------------
                                              Authorized Officer

                                       A-5
<Page>

                  (Form of Reverse of Normal Units Certificate)

          Each Purchase Contract evidenced hereby is governed by a Purchase
Contract Agreement, dated as of *, 2002 (as may be supplemented from time to
time, the "Purchase Contract Agreement"), between the Company and JPMorgan Chase
Bank, as Purchase Contract Agent (including its successors thereunder, herein
called the "Agent"), to which Purchase Contract Agreement and supplemental
agreements thereto reference is hereby made for a description of the respective
rights, limitations of rights, obligations, duties and immunities thereunder of
the Agent, the Company, and the Holders and of the terms upon which the Normal
Units Certificates are, and are to be, executed and delivered. All defined terms
used but not defined in this Certificate have the meanings ascribed to them in
the Purchase Contract Agreement.

          Each Purchase Contract evidenced hereby obligates the Holder of this
Normal Units Certificate to purchase, and the Company to sell, on the Share
Purchase Date at a price equal to $25 (the "Purchase Price"), a number of Common
Shares of the Company equal to the Settlement Rate, unless, on or prior to the
Share Purchase Date, there shall have occurred a Termination Event or a Cash
Settlement, Early Settlement or Merger Early Settlement with respect to the Unit
of which such Purchase Contract is a part. The "Settlement Rate" is equal to (a)
if the Applicable Market Value (as defined below) is equal to or greater than $*
(the "Threshold Appreciation Price"), * Common Shares per Purchase Contract, (b)
if the Applicable Market Value is less than the Threshold Appreciation Price but
is greater than $*, the number of Common Shares per Purchase Contract equal to
the Purchase Price divided by the Applicable Market Value and (c) if the
Applicable Market Value is equal to or less than $*, * Common Shares per
Purchase Contract, in each case subject to adjustment as provided in the
Purchase Contract Agreement. No fractional Common Shares will be issued upon
settlement of Purchase Contracts, as provided in the Purchase Contract
Agreement.

          The "Applicable Market Value" means the average of the Closing Price
per Common Share on each of the 20 consecutive Trading Days ending on the third
Trading Day immediately preceding the Share Purchase Date or, in the event of a
Cash Merger, the Cash Merger Date.

          The "Closing Price" of the Common Shares on any date of determination
means the closing sale price (or, if no closing sale price is reported, the last
reported sale price) of the Common Shares on the New York Stock Exchange (the
"NYSE") on such date or, if the Common Shares are not listed for trading on the
NYSE on any such date, as reported in the composite transactions for the
principal United States securities exchange on which the Common Shares are so
listed, or if the Common Shares are not so listed on a United States national or
regional securities exchange, as reported by The Nasdaq Stock Market, or, if the
Common Shares are not so reported, the last quoted bid price for the Common
Shares in the over-the-counter market as reported by the National Quotation
Bureau or similar organization, or, if such bid price is not available, the
market value of the Common Shares on such date as determined by a nationally
recognized independent investment banking firm retained for this purpose by the
Company.

                                       A-6
<Page>

          A "Trading Day" means a day on which the Common Shares (A) are not
suspended from trading on any national or regional securities exchange or
association or over-the-counter market at the close of business and (B) has
traded at least once on the national or regional securities exchange or
association or over-the-counter market that is the primary market for the
trading of the Common Shares at the close of business on such day.

          Each Purchase Contract evidenced hereby may be settled prior to the
Share Purchase Date through Cash Settlement, Early Settlement or Merger Early
Settlement, in accordance with the terms of the Purchase Contract Agreement.

          In accordance with the terms of the Purchase Contract Agreement, the
Holder of this Normal Units Certificate shall pay the Purchase Price for the
Common Shares purchased pursuant to each Purchase Contract evidenced hereby (i)
by effecting a Cash Settlement, an Early Settlement or Merger Early Settlement,
(ii) by application of payments received in respect of the Pledged Treasury
Consideration acquired from the proceeds of a remarketing of the related Pledged
Notes underlying the Normal Units represented by this Normal Units Certificate
as contemplated by Section 5.4 of the Purchase Contract Agreement or (iii) if
the Holder has elected not to participate in the remarketing, by application of
payments received in respect of the Pledged Opt-out Treasury Consideration
deposited by such Holder in respect of such Purchase Contract or (iv) if a Tax
Event Redemption has occurred prior to the successful remarketing of the Notes
as contemplated by Section 5.4 of the Purchase Contract Agreement, by
application of payments received in respect of the Pledged Treasury
Consideration purchased by the Collateral Agent on behalf of the Holder of this
Normal Units Certificate. If, as provided in the Purchase Contract Agreement,
upon the occurrence of a Last Failed Remarketing the Collateral Agent, for the
benefit of the Company, exercises its rights as a secured creditor with respect
to the Pledged Notes related to this Normal Units Certificate, any accrued and
unpaid interest on such Pledged Notes will become payable by the Company to the
Holder of this Normal Units Certificate in the manner provided for in the
Purchase Contract Agreement.

          Under and subject to the terms of the Pledge Agreement and the
Purchase Contract Agreement, the Agent will be entitled to exercise the voting
and any other consensual rights pertaining to the Pledged Notes, but only to the
extent instructed by the Holders as described below. Upon receipt of notice of
any meeting at which holders of Notes are entitled to vote or upon the
solicitation of consents, waivers or proxies of holders of Notes, the Agent
shall, as soon as practicable thereafter, mail to the Holders of Normal Units a
notice (a) containing such information as is contained in the notice or
solicitation, (b) stating that each such Holder on the record date set by the
Agent therefor (which, to the extent possible, shall be the same date as the
record date for determining the holders of Notes entitled to vote) shall be
entitled to instruct the Agent as to the exercise of the voting rights
pertaining to the Pledged Notes constituting a part of such Holder's Normal
Units and (c) stating the manner in which such instructions may be given. Upon
the written request of any Holder of Normal Units on such record date, the Agent
shall endeavor insofar as practicable to vote or cause to be voted, in
accordance

                                       A-7
<Page>

with the instructions set forth in such request the maximum number of Pledged
Notes as to which any particular voting instructions are received. In the
absence of specific instructions from the Holder of a Normal Unit, the Agent
shall abstain from voting the Pledged Note evidenced by such Normal Unit.

          The Normal Units Certificates are issuable only in registered form and
only in denominations of a single Normal Unit and any integral multiple thereof.
The transfer of any Normal Units Certificate will be registered and Normal Units
Certificates may be exchanged as provided in the Purchase Contract Agreement.
The Normal Units Registrar may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents permitted by the Purchase
Contract Agreement. No service charge shall be required for any such
registration of transfer or exchange of a Normal Units Certificate, but the
Company and the Agent may require payment of a sum sufficient to cover any tax
or other governmental charge that may be imposed in connection with any
registration of transfer or exchange of Certificates, other than exchanges not
involving any transfer as provided for in the Purchase Contract Agreement. The
Holder of a Normal Unit may substitute for the Pledged Notes or Pledged Treasury
Consideration securing its obligations under the related Purchase Contract
Treasury Securities in accordance with the terms of the Purchase Contract
Agreement and the Pledge Agreement. From and after such Collateral Substitution,
the Unit for which such Pledged Treasury Securities secures the Holder's
obligation under the Purchase Contract shall be referred to as a "Stripped
Unit." A Holder that elects to substitute Treasury Securities for Pledged Notes
or Pledged Treasury Consideration, thereby creating Stripped Units, shall be
responsible for any fees or expenses payable in connection therewith. Except as
provided in the Purchase Contract Agreement, for so long as the Purchase
Contract underlying a Normal Unit remains in effect, such Normal Unit shall not
be separable into its constituent parts, and the rights and obligations of the
Holder of such Normal Units in respect of the Pledged Note or Pledged Treasury
Consideration and Purchase Contract comprising such Normal Unit may be acquired,
and may be transferred and exchanged, only as a Normal Unit.

          A Holder of Stripped Units may reestablish Normal Units at any time
from and after the date of the Purchase Contract Agreement and on or prior to
the second Business Day immediately preceding the Share Purchase Date by
depositing with the Collateral Agent the Notes or the appropriate Treasury
Consideration in exchange for the release of the Pledged Treasury Securities in
accordance with the terms of the Purchase Contract Agreement and the Pledge
Agreement.

          Subject to the next succeeding paragraph, the Company shall pay, on
each Payment Date, the Contract Adjustment Payments, if any, payable in respect
of each Purchase Contract to the Person in whose name the Normal Units
Certificate (or one or more Predecessor Normal Units Certificates) evidencing
such Purchase Contract is registered on the Normal Units Register at the close
of business on the Record Date next preceding such Payment Date. The Contract
Adjustment Payments, if any, will be payable at the Corporate Trust Office or,
at the option of the Company, by check mailed to the address of the Person
entitled thereto at such Person's address as it appears on the

                                       A-8
<Page>

Normal Units Register or by wire transfer to the account designated by such
Person in writing.

          The Company shall have the right, at any time prior to the Share
Purchase Date, to defer the payment of any or all of the Contract Adjustment
Payments otherwise payable on any Payment Date, but only if the Company shall
give the Holders and the Agent written notice of its election to defer each such
Contract Adjustment Payments as provided in the Purchase Contract Agreement. Any
Contract Adjustment Payments so deferred shall, to the extent permitted by law,
accrue additional Contract Adjustment Payments thereon at the rate of *% per
year (computed on the basis of a 360-day year of twelve 30-day months),
compounding on each succeeding Payment Date, until paid in full (such deferred
installments of Contract Adjustment Payments, if any, together with the
additional Contract Adjustment Payments, if any, accrued thereon, are referred
to herein as the "Deferred Contract Adjustment Payments"). Deferred Contract
Adjustment Payments, if any, shall be due on the next succeeding Payment Date
except to the extent that payment is deferred pursuant to the Purchase Contract
Agreement. No Contract Adjustment Payments may be deferred to a date that is
after the Share Purchase Date and no such deferral period may end other than on
a Payment Date.

          In the event that the Company elects to defer the payment of Contract
Adjustment Payments on the Purchase Contracts until a Payment Date prior to the
Share Purchase Date, then all Deferred Contract Adjustment Payments, if any,
shall be payable to the registered Holders as of the close of business on the
Record Date immediately preceding such Payment Date.

          The Company's obligations with respect to Contract Adjustment Payments
(including any accrued or Deferred Contract Adjustment Payments) will be
subordinated and junior in right of payment to the Company's obligations under
any Senior Indebtedness.

          In the event that the Company elects to defer the payment of Contract
Adjustment Payments on the Purchase Contracts until the Share Purchase Date, the
Holder of this Normal Units Certificate will receive on the Share Purchase Date,
in lieu of a cash payment, a number of Common Shares (in addition to the number
of Common Shares equal to the Settlement Rate) equal to (i) the aggregate amount
of Deferred Contract Adjustment Payments payable to the Holder of this Normal
Units Certificate divided by (ii) the Applicable Market Value.

          In the event the Company exercises its option to defer the payment of
Contract Adjustment Payments, then, until the Deferred Contract Adjustment
Payments have been paid, the Company shall not, and will not permit any
subsidiary of the Company to, declare or pay dividends on, make distributions
with respect to, or redeem, purchase or acquire, or make a liquidation payment
with respect to, any of the Company's Capital Stock other than (i) purchases,
redemptions or acquisitions of shares of the Company's Capital Stock in
connection with any employment contract, benefit plan or other similar
arrangement with or for the benefit of employees, officers, directors

                                       A-9
<Page>

or agents or a stock purchase or dividend reinvestment plan, or the satisfaction
by the Company of its obligations pursuant to any contract or security
outstanding on the date the Company exercises its rights to defer the Contract
Adjustment Payments; (ii) as a result of a reclassification of the Company's
Capital Stock or the exchange or conversion of one class or series of the
Company's Capital Stock for another class or series of the Company's Capital
Stock; (iii) the purchase of fractional interests in shares of any series of the
Company's Capital Stock pursuant to the conversion or exchange provisions of
such Capital Stock or the security being converted or exchanged; (iv) dividends
or distributions in any series of the Company's Capital Stock (or rights to
acquire Capital Stock) or repurchases, acquisitions or redemptions of the
Company's Capital Stock in connection with the issuance or exchange of any
series of the Company's Capital Stock (or securities convertible into or
exchangeable for shares of the Company's Capital Stock); or (v) redemptions,
exchanges or repurchases of any rights outstanding under a shareholder rights
plan or the declaration or payment thereunder of a dividend or distribution of
or with respect to rights in the future.

          The Purchase Contracts and all obligations and rights of the Company
and the Holders thereunder, including, without limitation, the rights of the
Holders to receive accumulated Contract Adjustment Payments, if any, or any
Deferred Contract Adjustment Payments and the obligations of the Holders to
purchase Common Shares, shall immediately and automatically terminate, without
the necessity of any notice or action by any Holder, the Agent or the Company,
if, on or prior to the Share Purchase Date, a Termination Event shall have
occurred. Upon the occurrence of a Termination Event, the Company shall promptly
but in no event later than two Business Days thereafter give written notice to
the Agent, the Collateral Agent and to the Holders, at their addresses as they
appear in the Normal Units Register. Upon and after the occurrence of a
Termination Event, the Collateral Agent shall release the Pledged Notes or
Pledged Treasury Consideration from the Pledge in accordance with the provisions
of the Pledge Agreement.

          Upon registration of transfer of this Normal Units Certificate, the
transferee shall be bound (without the necessity of any other action on the part
of such transferee, except as may be required by the Agent pursuant to the
Purchase Contract Agreement), under the terms of the Purchase Contract
Agreement, the Purchase Contracts evidenced hereby and the Pledge Agreement and
the transferor shall be released from the obligations under the Purchase
Contract Agreement, the Purchase Contracts evidenced by this Normal Units
Certificate and the Pledge Agreement. The Company covenants and agrees, and the
Holder, by its acceptance hereof, likewise covenants and agrees, to be bound by
the provisions of this paragraph.

          The Holder of this Normal Units Certificate, by its acceptance hereof,
irrevocably authorizes the Agent to enter into and perform the related Purchase
Contracts forming part of the Normal Units evidenced hereby on his behalf as his
attorney-in-fact, expressly withholds any consent to the assumption (i.e.,
affirmance) of the Purchase Contracts by the Company or its trustee in the event
that the Company becomes the subject of a case under the Bankruptcy Code, agrees
to be bound by the terms and

                                      A-10
<Page>

provisions thereof, covenants and agrees to perform such Holder's obligations
under such Purchase Contracts, consents to the provisions of the Purchase
Contract Agreement, authorizes the Agent to enter into and perform the Pledge
Agreement on such Holder's behalf as attorney-in-fact, and consents to the
Pledge of the Notes or the appropriate Treasury Consideration underlying this
Normal Units Certificate pursuant to the Pledge Agreement. The Holder further
covenants and agrees, that, to the extent and in the manner provided in the
Purchase Contract Agreement and the Pledge Agreement, but subject to the terms
thereof, payments in respect of the Pledged Notes or the Pledged Treasury
Consideration to be paid upon settlement of such Holder's obligations to
purchase Common Shares under the Purchase Contract, shall be paid on the Share
Purchase Date by the Collateral Agent to the Company in satisfaction of such
Holder's obligations under such Purchase Contract and such Holder shall acquire
no right, title or interest in such payments. The obligations of each Holder to
pay the Purchase Price are non-recourse obligations and except to the extent
paid by Cash Settlement, Early Settlement or Merger Early Settlement, are
payable solely out of the proceeds of any Collateral pledged to secure the
obligations of the Holders and in no event will Holders be liable for any
deficiency between such payments and the Purchase Price. Notwithstanding
anything to the contrary herein, the Company shall not be obligated to issue any
Common Shares in respect of a Purchase Contract or deliver any certificates
therefor to the Holder of the related Unit unless the Company shall have (i)
received payment in full of the aggregate Purchase Price for the Common Shares
to be purchased thereunder by such Holder in the manner herein set forth or (ii)
exercised its rights as a secured party under Section 5.4(b)(iii) of the
Purchase Contract Agreement.

          Each Holder of any Unit, and each Beneficial Owner thereof, by its
acceptance thereof or of its interest therein, further agrees to treat (i)
itself as the owner of the related Notes, Treasury Consideration or Treasury
Securities, as the case may be, and (ii) the Notes as indebtedness of Platinum
Underwriters Finance, Inc. in each case, for United States federal, state and
local income and franchise tax purposes.

          Subject to certain exceptions, the provisions of the Purchase Contract
Agreement may be amended with the consent of the Holders of a majority of the
outstanding Purchase Contracts.

          The Purchase Contracts shall for all purposes be governed by, deemed
to be a contract under, and construed in accordance with, the laws of the State
of New York, without regard to the conflicts of laws principles thereof.

          The Company, the Agent and its Affiliates and any agent of the Company
or the Agent may treat the Person in whose name this Normal Units Certificate is
registered as the owner of the Normal Units evidenced hereby for the purpose of
receiving quarterly payments of interest on the Notes or the Treasury
Consideration, as the case may be, receiving payments of Contract Adjustment
Payments, if any, and any Deferred Contract Adjustment Payments, performance of
the Purchase Contracts and for all other purposes whatsoever, whether or not any
payments in respect thereof be overdue

                                      A-11
<Page>

and notwithstanding any notice to the contrary, and neither the Company, the
Agent, such Affiliates nor any such agent shall be affected by notice to the
contrary.

          The Purchase Contracts shall not, prior to the settlement thereof,
entitle the Holder to any of the rights of a holder of Common Shares.

          A copy of the Purchase Contract Agreement is available for inspection
at the offices of the Agent.

                                      A-12
<Page>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM -                as tenants in common

UNIF GIFT MIN ACT -      Custodian

                         -----------------------------------
                         (cust)                    (minor)

                         Under Uniform Gifts to Minors Act

                         -----------------------------------
                                      (State)

TEN ENT -                as tenants by the entireties

JT TEN -                 as joint tenants with right of survivorship and not as
                         tenants in common

Additional abbreviations may also be used though not in the above list.

                                      A-13
<Page>

                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto ___________________________________________________________________________
________________________________________________________________________________

(Please insert Social Security or Taxpayer I.D. or other Identifying Number of
Assignee)_______________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please Print or Type Name and Address Including Postal Zip Code of Assignee)

the within Normal Units Certificates and all rights thereunder, hereby
irrevocably constituting and appointing ________________________________________
attorney to transfer said Normal Units Certificates on the books of Platinum
Underwriters Holdings, Ltd. with full power of substitution in the premises.

Dated:________________              Signature:
                                               ---------------------------------

                                     NOTICE: The signature to this assignment
                                     must correspond with the name as it appears
                                     upon the face of the within Normal Units
                                     Certificates in every particular, without
                                     alteration or enlargement or any change
                                     whatsoever.

Signature Guarantee:
                     -----------------------------------------------------------

                                      A-14
<Page>

                             SETTLEMENT INSTRUCTIONS

          The undersigned Holder directs that a certificate for Common Shares
deliverable upon settlement on or after the Share Purchase Date of the Purchase
Contracts underlying the number of Normal Units evidenced by this Normal Units
Certificate be registered in the name of, and delivered, together with a check
in payment for any fractional share, to the undersigned at the address indicated
below unless a different name and address have been indicated below. If shares
are to be registered in the name of a Person other than the undersigned, the
undersigned will pay any transfer tax payable incident thereto.

Dated:_______________                      Signature:
                                                      --------------------------
                                           Signature Guarantee:
                                                                ----------------
                                           (if assigned to another person)

If shares  are to be  registered  in the     REGISTERED HOLDER
name of and delivered to a Person other
than the Holder,  please (i) print such
Person's  name and  address and (ii)         Please print name and address of
provide a guarantee of your signature:       Registered Holder:

----------------------------------------    ------------------------------------
                 Name                                      Name

----------------------------------------    ------------------------------------
               Address                                    Address

Social Security or other Taxpayer
Identification Number, if any

                                      A-15
<Page>

                            ELECTION TO SETTLE EARLY

          The undersigned Holder of this Normal Units Certificate hereby
irrevocably exercises the option to effect Early Settlement in accordance with
the terms of the Purchase Contract Agreement with respect to the Purchase
Contracts underlying the number of Normal Units evidenced by this Normal Units
Certificate specified below. The option to effect Early Settlement may be
exercised only with respect to Purchase Contracts underlying Normal Units with
an aggregate Purchase Price equal to $1,000 or an integral multiple thereof. The
undersigned Holder directs that a certificate for Common Shares deliverable upon
such Early Settlement be registered in the name of, and delivered, together with
a check in payment for any fractional share and any Normal Units Certificate
representing any Normal Units evidenced hereby as to which Early Settlement of
the related Purchase Contracts is not effected, to the undersigned at the
address indicated below unless a different name and address have been indicated
below. Pledged Notes or Pledged Treasury Consideration deliverable upon such
Early Settlement will be transferred in accordance with the transfer
instructions set forth below. If Common Shares are to be registered in the name
of a Person other than the undersigned, the undersigned will pay any transfer
tax payable incident thereto.

Dated:_________________                    Signature:
                                                      --------------------------
Signature Guarantee:                       Signature Guarantee:
                     -------------------                        ----------------

          Number of Units evidenced hereby as to which Early Settlement of the
related Purchase Contracts is being elected:

If Common Shares are to be registered in     REGISTERED HOLDER
the name of and delivered to and Pledged
Notes or Pledged Treasury Consideration
are to be transferred to a Person other      Please print name and address of
than the Holder, please print such           Registered Holder:
Person's name and address:

----------------------------------------    ------------------------------------
                 Name                                      Name

----------------------------------------    ------------------------------------
               Address                                    Address

Social Security or other Taxpayer
Identification Number, if any

Transfer instructions for Pledged Notes or Pledged Treasury Consideration
transferable upon Early Settlement or a Termination Event:

                                      A-16
<Page>

                     [TO BE ATTACHED TO GLOBAL CERTIFICATES]

            SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE

          The following increases or decreases in this Global Certificate have
been made:

<Table>
<Caption>
                                                         STATED AMOUNT
                    AMOUNT OF           AMOUNT OF        OF THE GLOBAL
                   DECREASE IN         INCREASE IN        CERTIFICATE      SIGNATURE OF
                  STATED AMOUNT       STATED AMOUNT        FOLLOWING        AUTHORIZED
                  OF THE GLOBAL       OF THE GLOBAL      SUCH DECREASE      OFFICER OF
     DATE          CERTIFICATE         CERTIFICATE        OR INCREASE          AGENT
--------------  -----------------   -----------------   ----------------  --------------
<S>             <C>                 <C>                 <C>               <C>

</Table>

                                      A-17
<Page>

                                    EXHIBIT B
                       FORM OF STRIPPED UNITS CERTIFICATE
                       (FORM OF GLOBAL CERTIFICATE LEGEND)

[THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE MEANING OF THE PURCHASE
CONTRACT AGREEMENT (AS DEFINED ON THE REVERSE HEREOF) AND IS REGISTERED IN THE
NAME OF A CLEARING AGENCY OR A NOMINEE THEREOF. THIS CERTIFICATE MAY NOT BE
EXCHANGED IN WHOLE OR IN PART FOR A CERTIFICATE REGISTERED, AND NO TRANSFER OF
THIS CERTIFICATE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY
PERSON OTHER THAN SUCH CLEARING AGENCY OR A NOMINEE THEREOF, EXCEPT IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AGREEMENT.]*

[SO LONG AS DTC IS THE DEPOSITARY, INSERT: Unless this Certificate is presented
by an authorized representative of The Depository Trust Company (55 Water
Street, New York, New York) to the Company or its agent for registration of
transfer, exchange or payment, and any Certificate issued is registered in the
name of Cede & Co., or such other name as requested by an authorized
representative of The Depository Trust Company, and any payment hereon is made
to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY A PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an
interest herein.]

                   Form of Face of Stripped Units Certificate

No.                                     CUSIP No.
Number of Stripped Units

          This Stripped Units Certificate certifies that _________ is the
registered Holder of the number of Stripped Units set forth above. Each Stripped
Unit represents (i) a 1/40 undivided beneficial ownership interest in a Treasury
Security, subject to the Pledge of such interest in such Treasury Security by
such Holder pursuant to the Pledge Agreement, and (ii) the rights and
obligations of the Holder under one Purchase Contract with platinum Underwriters
Holdings, Ltd., a Bermuda corporation (the "Company"). Each Stripped Unit will
have a stated amount of $25 (the "Stated Amount"). All capitalized terms used
herein which are defined in the Purchase Contract Agreement have the meaning set
forth therein.

          Pursuant to the Pledge Agreement, the Treasury Security constituting
part of each Stripped Unit evidenced hereby has been pledged to the Collateral
Agent, for the benefit of the Company, to secure the obligations of the Holder
under the Purchase

----------
* To be inserted in Global Certificates only.

                                       B-1
<Page>

Contract comprising a part of such Stripped Unit to purchase Common Shares of
the Company. Prior to the purchase of Common Shares under each Purchase
Contract, such Purchase Contracts shall not entitle the Holders of Normal Units
Certificates to any of the rights of a holder of Common Shares, including
without limitation, the right to vote or receive any dividends or other payments
or to consent or to receive notice as shareholders in respect of the meetings of
shareholders, or for the election of directors of the Company or for any other
matter or any other rights whatsoever as shareholder of the Company.

          Each Purchase Contract evidenced hereby obligates the Holder of this
Stripped Units Certificate to purchase, and the Company to sell, on *, 2005 (the
"Share Purchase Date"), at a price equal to $25 (the "Purchase Price"), a number
of Common Shares, $0.01 par value per share ("Common Shares"), of the Company,
equal to the Settlement Rate, unless on or prior to the Share Purchase Date
there shall have occurred a Termination Event or an Early Settlement or Merger
Early Settlement with respect to the Stripped Units of which such Purchase
Contract is a part, all as provided in the Purchase Contract Agreement and more
fully described on the reverse hereof. The Purchase Price (as defined herein)
for the Common Shares purchased pursuant to each Purchase Contract evidenced
hereby, if not paid earlier, shall be paid on the Share Purchase Date by
application of payments received in respect of the Pledged Treasury Securities
pledged to secure the obligations of the Holder under such Purchase Contract in
accordance with the terms of the Pledge Agreement.

          The Company shall pay on each Payment Date in respect of each Purchase
Contract forming part of a Stripped Unit evidenced hereby an amount (the
"Contract Adjustment Payments") equal to *% per year of the Stated Amount,
computed on the basis of a 360-day year of twelve 30-day months, subject to
deferral at the option of the Company as provided in the Purchase Contract
Agreement and more fully described on the reverse hereof (provided that if on
any date on which Contract Adjustment Payments are to be made on the Purchase
Contracts is not a Business Day, then payment of the Contract Adjustment
Payments payable on that date will be made on the next succeeding day which is a
Business Day, and no interest or payment will be paid in respect of the delay,
except that if such next succeeding Business Day is in the next succeeding
calendar year, such payment will be made on the immediately preceding Business
Day). Such Contract Adjustment Payments shall be payable to the Person in whose
name this Stripped Units Certificate (or a Predecessor Stripped Units
Certificate) is registered at the close of business on the Record Date for such
Payment Date.

          Contract Adjustment Payments will be payable at the office of the
Agent in the City of New York or, at the option of the Company, by check mailed
to the address of the Person entitled thereto as such address appears on the
Normal Units Register or by wire transfer to the account designated by such
Person in writing.

          Reference is hereby made to the further provisions set forth on the
reverse hereof, which further provisions shall for all purposes have the same
effect as if set forth at this place.

                                       B-2
<Page>

          Unless the certificate of authentication hereon has been executed by
the Agent by manual signature, this Stripped Units Certificate shall not be
entitled to any benefit under the Pledge Agreement or the Purchase Contract
Agreement or be valid or obligatory for any purpose.

                                       B-3
<Page>

          IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

Dated:_________________

                                      PLATINUM UNDERWRITERS HOLDINGS, LTD.

                                      By:
                                          -------------------------------------
                                          Name:
                                          Title:

                                      HOLDER SPECIFIED ABOVE (as to obligations
                                      of such Holder under the Purchase
                                      Contracts evidenced hereby)

                                      By: JPMORGAN CHASE BANK, not
                                          individually but solely as
                                          Attorney-in-Fact of such Holder

                                          By:
                                              ---------------------------------
                                              Name:
                                              Title:

                                       B-4
<Page>

                      AGENT'S CERTIFICATE OF AUTHENTICATION

          This is one of the Stripped Units Certificates referred to in the
within-mentioned Purchase Contract Agreement.

                                          JPMORGAN CHASE BANK,
                                          as Purchase Contract Agent

                                          By:
                                             ----------------------------------
                                             Authorized Officer

                                       B-5
<Page>

                 (Form of Reverse of Stripped Units Certificate)

          Each Purchase Contract evidenced hereby is governed by a Purchase
Contract Agreement, dated as of *, 2002 (as may be supplemented from time to
time, the "Purchase Contract Agreement"), between the Company and JPMorgan Chase
Bank, as Purchase Contract Agent (including its successors thereunder, herein
called the "Agent"), to which the Purchase Contract Agreement and supplemental
agreements thereto reference is hereby made for a description of the respective
rights, limitations of rights, obligations, duties and immunities thereunder of
the Agent, the Company and the Holders and of the terms upon which the Stripped
Units Certificates are, and are to be, executed and delivered.

          Each Purchase Contract evidenced hereby obligates the Holder of this
Stripped Units Certificate to purchase, and the Company to sell, on the Share
Purchase Date at a price equal to $25 (the "Purchase Price"), a number of Common
Shares of the Company equal to the Settlement Rate, unless, on or prior to the
Share Purchase Date, there shall have occurred a Termination Event or a Cash
Settlement, an Early Settlement or Merger Early Settlement with respect to the
Unit of which such Purchase Contract is a part. The "Settlement Rate" is equal
to (a) if the Applicable Market Value (as defined below) is equal to or greater
than $* (the "Threshold Appreciation Price"), * Common Shares per Purchase
Contract, (b) if the Applicable Market Value is less than the Threshold
Appreciation Price but is greater than $*, the number of Common Shares per
Purchase Contract equal to the Purchase Price divided by the Applicable Market
Value and (c) if the Applicable Market Value is equal to or less than $*, *
Common Shares per Purchase Contract, in each case subject to adjustment as
provided in the Purchase Contract Agreement. No fractional Common Shares will be
issued upon settlement of Purchase Contracts, as provided in the Purchase
Contract Agreement.

          The "Applicable Market Value" means the average of the Closing Price
per Common Share on each of the 20 consecutive Trading Days ending on the third
Trading Day immediately preceding the Share Purchase Date or in the event of a
Cash Merger, the Cash Merger Date.

          The "Closing Price" of the Common Shares on any date of determination
means the closing sale price (or, if no closing sale price is reported, the last
reported sale price) of the Common Shares on the New York Stock Exchange (the
"NYSE") on such date or, if the Common Shares are not listed for trading on the
NYSE on any such date, as reported in the composite transactions for the
principal United States securities exchange on which the Common Shares are so
listed, or if the Common Shares are not so listed on a United States national or
regional securities exchange, as reported by The Nasdaq Stock Market, or, if the
Common Shares are not so reported, the last quoted bid price for the Common
Shares in the over-the-counter market as reported by the National Quotation
Bureau or similar organization, or, if such bid price is not available, the
market value of the Common Shares on such date as determined by a nationally
recognized independent investment banking firm retained for this purpose by the
Company.

                                       B-6
<Page>

          A "Trading Day" means a day on which the Common Shares (A) are not
suspended from trading on any national or regional securities exchange or
association or over-the-counter market at the close of business and (B) has
traded at least once on the national or regional securities exchange or
association or over-the-counter market that is the primary market for the
trading of the Common Shares at the close of business of such day.

          Each Purchase Contract evidenced hereby may be settled prior to the
Share Purchase Date through Cash Settlement, Early Settlement or Merger Early
Settlement, in accordance with the terms of the Purchase Contract Agreement.

          In accordance with the terms of the Purchase Contract Agreement, the
Holder of this Stripped Units Certificate shall pay the Purchase Price for the
Common Shares purchased pursuant to each Purchase Contract evidenced hereby (i)
by effecting a Cash Settlement, an Early Settlement or Merger Early Settlement
or (ii) by application of payments received in respect of the Pledged Treasury
Securities underlying the Stripped Units represented by this Stripped Units
Certificate.

          The Company shall not be obligated to issue any Common Shares in
respect of a Purchase Contract or deliver any certificates therefor to the
Holder unless it shall have received payment in full of the aggregate Purchase
Price for the Common Shares to be purchased thereunder in the manner herein set
forth.

          The Stripped Units Certificates are issuable only in registered form
and only in denominations of a single Stripped Unit and any integral multiple
thereof. The transfer of any Stripped Units Certificate will be registered and
Stripped Units Certificates may be exchanged as provided in the Purchase
Contract Agreement. The Stripped Units Registrar may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents
permitted by the Purchase Contract Agreement. No service charge shall be
required for any such registration of transfer or exchange of a Stripped Units
Certificate, but the Company and the Agent may require payment from the Holder
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of
Certificates, other than exchanges not involving any transfer as provided for in
the Purchase Contract Agreement. The Holder of a Stripped Unit may substitute
for the Pledged Treasury Securities securing its obligations under the related
Purchase Contract Notes or the appropriate Treasury Consideration in accordance
with the terms of the Purchase Contract Agreement and the Pledge Agreement. From
and after such Collateral Substitution, the Unit for which such Pledged Notes or
Pledged Treasury Consideration secures the Holder's obligation under the
Purchase Contract shall be referred to as a "Normal Unit." A Holder that elects
to substitute Notes or the appropriate Treasury Consideration for Pledged
Treasury Securities, thereby reestablishing Normal Units, shall be responsible
for any fees or expenses payable in connection therewith. Except as provided in
the Purchase Contract Agreement, for so long as the Purchase Contract underlying
a Stripped Unit remains in effect, such Stripped Unit shall not be separable

                                       B-7
<Page>

into its constituent parts, and the rights and obligations of the Holder of such
Stripped Unit in respect of the Pledged Treasury Security and the Purchase
Contract comprising such Stripped Unit may be acquired, and may be transferred
and exchanged, only as a Stripped Unit.

          A Holder of Normal Units may establish Stripped Units at any time from
and after the date of the Purchase Contract Agreement and on or prior to the
second Business Day immediately preceding the Share Purchase Date by depositing
with the Collateral Agent Treasury Securities in exchange for the release of the
Pledged Notes or the appropriate Pledged Treasury Consideration in accordance
with the terms of the Purchase Contract Agreement and the Pledge Agreement.

          Subject to the next succeeding paragraph, the Company shall pay, on
each Payment Date, the Contract Adjustment Payments, if any, payable in respect
of each Purchase Contract to the Person in whose name the Stripped Units
Certificate (or one or more Predecessor Stripped Units Certificates) evidencing
such Purchase Contract is registered on the Stripped Units Register at the close
of business on the Record Date next preceding such Payment Date. Contract
Adjustment Payments, if any, will be payable at the Corporate Trust Office or,
at the option of the Company, by check mailed to the address of the Person
entitled thereto at such Person's address as it appears on the Stripped Units
Register or by wire transfer to the account designated by such Person in
writing.

          The Company shall have the right, at any time prior to the Share
Purchase Date, to defer the payment of any or all of the Contract Adjustment
Payments otherwise payable on any Payment Date, but only if the Company shall
give the Holders and the Agent written notice of its election to defer each such
Contract Adjustment Payments as provided in the Purchase Contract Agreement. Any
Contract Adjustment Payments so deferred shall, to the extent permitted by law,
accrue additional Contract Adjustment Payments thereon at the rate of *% per
year (computed on the basis of a 360-day year of twelve 30-day months),
compounding on each succeeding Payment Date, until paid in full (such deferred
installments of Contract Adjustment Payments, if any, together with the
additional Contract Adjustment Payments, if any, accrued thereon, are referred
to herein as the "Deferred Contract Adjustment Payments"). Deferred Contract
Adjustment Payments, if any, shall be due on the next succeeding Payment Date
except to the extent that payment is deferred pursuant to the Purchase Contract
Agreement. No Contract Adjustment Payments may be deferred to a date that is
after the Share Purchase Date and no such deferral period may end other than on
a Payment Date.

          In the event that the Company elects to defer the payment of Contract
Adjustment Payments on the Purchase Contracts until a Payment Date prior to the
Share Purchase Date, then all Deferred Contract Adjustment Payments, if any,
shall be payable to the registered Holders as of the close of business on the
Record Date immediately preceding such Payment Date.

                                       B-8
<Page>

          In the event that the Company elects to defer the payment of Contract
Adjustment Payments on the Purchase Contracts until the Share Purchase Date, the
Holder of this Stripped Units Certificate will receive on the Share Purchase
Date, in lieu of a cash payment, a number of Common Shares (in addition to the
number of Common Shares equal to the Settlement Rate) equal to (i) the aggregate
amount of Deferred Contract Adjustment Payments payable to the Holder of this
Stripped Units Certificate divided by (ii) the Applicable Market Value.

          In the event the Company exercises its option to defer the payment of
Contract Adjustment Payments, then, until the Deferred Contract Adjustment
Payments have been paid, the Company shall not, and will not permit any
subsidiary of the Company to, declare or pay dividends on, make distributions
with respect to, or redeem, purchase or acquire, or make a liquidation payment
with respect to, any of the Company's Capital Stock other than (i) purchases,
redemptions or acquisitions of shares of the Company's Capital Stock in
connection with any employment contract, benefit plan or other similar
arrangement with or for the benefit of employees, officers, directors or agents
or a stock purchase or dividend reinvestment plan, or the satisfaction by the
Company of its obligations pursuant to any contract or security outstanding on
the date the Company exercises its rights to defer the Contract Adjustment
Payments; (ii) as a result of a reclassification of the Company's Capital Stock
or the exchange or conversion of one class or series of the Company's Capital
Stock for another class or series of the Company's Capital Stock; (iii) the
purchase of fractional interests in shares of the Company's Capital Stock
pursuant to the conversion or exchange provisions of such Capital Stock or the
security being converted or exchanged; (iv) dividends or distributions in any
series of the Company's Capital Stock (or rights to acquire Capital Stock) or
repurchases, acquisitions or redemptions of the Company's Capital Stock in
connection with the issuance or exchange of any series of the Company's Capital
Stock (or securities convertible into or exchangeable for shares of the
Company's Capital Stock); or (v) redemptions, exchanges or repurchases of any
rights outstanding under a shareholder rights plan or the declaration or payment
thereunder of a dividend or distribution of or with respect to rights in the
future.

          The Purchase Contracts and all obligations and rights of the Company
and the Holders thereunder, including, without limitation, the rights of the
Holders to receive accumulated Contract Adjustment Payments, if any, or any
Deferred Contract Adjustment Payments, and the obligations of the Holders to
purchase Common Shares, shall immediately and automatically terminate, without
the necessity of any notice or action by any Holder, the Agent or the Company,
if, on or prior to the Share Purchase Date, a Termination Event shall have
occurred. Upon the occurrence of a Termination Event, the Company shall promptly
but in no event later than two business days thereafter give written notice to
the Agent, the Collateral Agent and to the Holders, at their addresses as they
appear in the Stripped Units Register. Upon and after the occurrence of a
Termination Event, the Collateral Agent shall release the Pledged Treasury
Securities from the Pledge in accordance with the provisions of the Pledge
Agreement.

                                       B-9
<Page>

          Upon registration of transfer of this Stripped Units Certificate, the
transferee shall be bound (without the necessity of any other action on the part
of such transferee, except as may be required by the Agent pursuant to the
Purchase Contract Agreement), under the terms of the Purchase Contract
Agreement, the Purchase Contracts evidenced hereby and the Pledge Agreement and
the transferor shall be released from the obligations under the Purchase
Contract Agreement, the Purchase Contracts evidenced by this Stripped Units
Certificate and the Pledge Agreement. The Company covenants and agrees, and the
Holder, by his acceptance hereof, likewise covenants and agrees, to be bound by
the provisions of this paragraph.

          The Holder of this Stripped Units Certificate, by its acceptance
hereof, irrevocably authorizes the Agent to enter into and perform the related
Purchase Contracts forming part of the Stripped Units evidenced hereby on his
behalf as its attorney-in-fact, expressly withholds any consent to the
assumption (i.e., affirmance) of the Purchase Contracts by the Company or its
trustee in the event that the Company becomes the subject of a case under the
Bankruptcy Code, agrees to be bound by the terms and provisions thereof,
covenants and agrees to perform such Holder's obligations under such Purchase
Contracts, consents to the provisions of the Purchase Contract Agreement,
authorizes the Agent to enter into and perform the Pledge Agreement on such
Holder's behalf as attorney-in-fact, and consents to the Pledge of the Treasury
Securities underlying this Stripped Units Certificate pursuant to the Pledge
Agreement. The Holder further covenants and agrees, that, to the extent and in
the manner provided in the Purchase Contract Agreement and the Pledge Agreement,
but subject to the terms thereof, payments in respect of the Pledged Treasury
Securities, to be paid upon settlement of such Holder's obligations to purchase
Common Shares under the Purchase Contract, shall be paid on the Share Purchase
Date by the Collateral Agent to the Company in satisfaction of such Holder's
obligations under such Purchase Contract and such Holder shall acquire no right,
title or interest in such payments. The obligations of each Holder to pay the
Purchase Price are non-recourse obligations and except to the extent paid by
Early Settlement or Merger Early Settlement, are payable solely out of the
proceeds of any Collateral pledged to secure the obligations of the Holders and
in no event will Holders be liable for any deficiency between such payments and
the Purchase Price.

          Each Holder of any Unit, and each Beneficial Owner thereof, by its
acceptance thereof or of its interest therein, further agrees to treat (i)
itself as the owner of the related Notes, Treasury Consideration or Treasury
Securities, as the case may be, and (ii) the Notes as indebtedness of the
Platinum Underwriters Finance, Inc., in each case, for United States federal,
state and local income and franchise tax purposes.

          Subject to certain exceptions, the provisions of the Purchase Contract
Agreement may be amended with the consent of the Holders of a majority of the
Purchase Contracts.

                                      B-10
<Page>

          The Purchase Contracts shall for all purposes be governed by and
deemed to be a contract under, and construed in accordance with, the laws of the
State of New York, without regard to conflicts of laws principles thereof.

          The Company, the Agent and its Affiliates and any agent of the Company
or the Agent may treat the Person in whose name this Stripped Units Certificate
is registered as the owner of the Stripped Units evidenced hereby for the
purpose of receiving any Contract Adjustment Payments and any Deferred Contract
Adjustment Payments, performance of the Purchase Contracts and for all other
purposes whatsoever, whether or not any payments in respect thereof be overdue
and notwithstanding any notice to the contrary, and neither the Company, the
Agent, such Affiliate, nor any such agent shall be affected by notice to the
contrary.

          The Purchase Contracts shall not, prior to the settlement thereof,
entitle the Holder to any of the rights of a holder of Common Shares.

          A copy of the Purchase Contract Agreement is available for inspection
at the offices of the Agent.

                                      B-11
<Page>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM -                   as tenants in common

UNIF GIFT MIN ACT -         Custodian

                            -----------------------------------
                            (cust)                   (minor)

                            Under Uniform Gifts to Minors Act

                            -----------------------------------
                                          (State)

TEN ENT -                   as tenants by the entireties

JT TEN -                    as joint tenants with right of survivorship and not
                            as tenants in common

Additional abbreviations may also be used though not in the above list.

                                      B-12
<Page>

                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto ___________________________________________________________________________
________________________________________________________________________________

(Please insert Social Security or Taxpayer I.D. or other Identifying Number of
Assignee)_______________________________________________________________________
________________________________________________________________________________

(Please Print or Type Name and Address Including Postal Zip Code of Assignee)

the within Stripped Units Certificates and all rights thereunder, hereby
irrevocably constituting and appointing ______________________________________
attorney to transfer said Stripped Units Certificates on the books of Platinum
Underwriters Holdings, Ltd. with full power of substitution in the premises.

Dated:_________________                 Signature:
                                                   -----------------------------

                                        NOTICE: The signature to this assignment
                                        must correspond with the name as it
                                        appears upon the face of the within
                                        Stripped Units Certificates in every
                                        particular, without alteration or
                                        enlargement or any change whatsoever.

Signature Guarantee:
                     -----------------------------------------------------------

                                      B-13
<Page>

                             SETTLEMENT INSTRUCTIONS

          The undersigned Holder directs that a certificate for Common Shares
deliverable upon settlement on or after the Share Purchase Date of the Purchase
Contracts underlying the number of Stripped Units evidenced by this Stripped
Units Certificate be registered in the name of, and delivered, together with a
check in payment for any fractional share, to the undersigned at the address
indicated below unless a different name and address have been indicated below.
If shares are to be registered in the name of a Person other than the
undersigned, the undersigned will pay any transfer tax payable incident thereto.

Dated:_________________                    Signature:
                                                      --------------------------
                                           Signature Guarantee:
                                                                ----------------
                                           (if assigned to another person)

If shares  are to be  registered  in the     REGISTERED HOLDER
name of and delivered to a Person other
than the Holder,  please (i) print such
Person's  name and  address and (ii)         Please print name and address of
provide a guarantee of your signature:       Registered Holder:

----------------------------------------    ------------------------------------
                 Name                                      Name

----------------------------------------    ------------------------------------
               Address                                    Address

Social Security or other Taxpayer
Identification Number, if any

                                      B-14
<Page>

                            ELECTION TO SETTLE EARLY

          The undersigned Holder of this Stripped Units Certificate hereby
irrevocably exercises the option to effect Early Settlement in accordance with
the terms of the Purchase Contract Agreement with respect to the Purchase
Contracts underlying the number of Stripped Units evidenced by this Stripped
Units Certificate specified below. The option to effect Early Settlement may be
exercised only with respect to Purchase Contracts underlying Stripped Units with
an aggregate Purchase Price equal to $1,000 or an integral multiple thereof. The
undersigned Holder directs that a certificate for Common Shares deliverable upon
such Early Settlement be registered in the name of, and delivered, together with
a check in payment for any fractional share and any Stripped Units Certificate
representing any Stripped Units evidenced hereby as to which Early Settlement of
the related Purchase Contracts is not effected, to the undersigned at the
address indicated below unless a different name and address have been indicated
below. Pledged Treasury Securities deliverable upon such Early Settlement will
be transferred in accordance with the transfer instructions set forth below. If
shares are to be registered in the name of a Person other than the undersigned,
the undersigned will pay any transfer tax payable incident thereto.

Dated:________________                     Signature:
                                                      --------------------------
                                           Signature Guarantee:
                                                                ----------------

          Number of Units evidenced hereby as to which Early Settlement of the
related Purchase Contracts is being elected:

If Common Shares are to be registered in     REGISTERED HOLDER
the name of and delivered to and Pledged
Treasury Securities are to be transferred
to a Person other than the Holder, please    Please print name and address of
print such Person's name and address:        Registered Holder:

----------------------------------------    ------------------------------------
                 Name                                      Name

----------------------------------------    ------------------------------------
               Address                                    Address

Social Security or other Taxpayer
Identification Number, if any

Transfer instructions for Pledged Treasury Securities, transferable upon Early
Settlement or a Termination Event:

                                      B-15
<Page>

                     [TO BE ATTACHED TO GLOBAL CERTIFICATES]

            SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE

          The following increases or decreases in this Global Certificate have
been made:

<Table>
<Caption>
                                                         STATED AMOUNT
                    AMOUNT OF           AMOUNT OF        OF THE GLOBAL
                   DECREASE IN         INCREASE IN        CERTIFICATE      SIGNATURE OF
                  STATED AMOUNT       STATED AMOUNT        FOLLOWING        AUTHORIZED
                  OF THE GLOBAL       OF THE GLOBAL      SUCH DECREASE      OFFICER OF
     DATE          CERTIFICATE         CERTIFICATE        OR INCREASE          AGENT
--------------  -----------------   -----------------   ----------------  --------------
<S>             <C>                 <C>                 <C>               <C>

</Table>

                                      B-16
<Page>

                                    EXHIBIT C

                   INSTRUCTION FROM PURCHASE CONTRACT AGENT TO
                                COLLATERAL AGENT

State Street Bank and Trust Company
*
*
*

Attention: *

               Re:    EQUITY SECURITY UNITS OF PLATINUM UNDERWRITERS
                      HOLDINGS, LTD.  (THE "COMPANY")

          We hereby notify you in accordance with Section 4.1 of the Pledge
Agreement, dated as of *, 2002, among the Company, you, as Collateral Agent,
Custodial Agent and Securities Intermediary, and us, as Purchase Contract Agent
and as attorney-in-fact for the holders of [Normal Units] [Stripped Units] from
time to time, that the holder of securities listed below (the "Holder") has
elected to substitute [$ _______ aggregate principal amount of Treasury
Securities (CUSIP No. _____)] [$_______ principal amount of Notes or the
appropriate Treasury Consideration, as the case may be,] in exchange for the
related [Pledged Notes or Pledged Treasury Consideration] [Pledged Treasury
Securities (CUSIP No. ____),] held by you in accordance with the Pledge
Agreement and has delivered to us a notice stating that the Holder has
transferred [Treasury Securities] [Notes or the appropriate Treasury
Consideration] to you, as Collateral Agent. We hereby instruct you, upon receipt
of such [Pledged Treasury Securities] [Pledged Notes or Pledged Treasury
Consideration], and upon the payment by such Holder of any applicable fees, to
release the [Notes or Treasury Consideration, as the case may be,] [Treasury
Securities] related to such [Normal Units] [Stripped Units] to us in accordance
with the Holder's instructions. Capitalized terms used herein but not defined
shall have the meaning set forth in the Purchase Contract Agreement.

Date:_________________

                                  JPMORGAN CHASE BANK,
                                  As Purchase Contract Agent under the Purchase
                                  Contract Agreement, dated as of *, 2002,
                                  between the Company and the Purchase Contract
                                  Agent

                                  By:
                                      ------------------------------------
                                       Name:
                                       Title:

                                       C-1
<Page>

Please print name and address of Registered Holder electing to substitute
[Treasury Securities] [Notes or Treasury Consideration, as the case may be,] for
the [Pledged Notes or Pledged Treasury Consideration, as the case may be,]
[Pledged Treasury Securities]:

       Name

       Address

Social Security or other Taxpayer Identification
Number, if any

                                       C-2
<Page>

                                    EXHIBIT D

                     INSTRUCTION TO PURCHASE CONTRACT AGENT

JPMorgan Chase Bank
450 West 33rd Street
New York, New York 10001

Attn: Institutional Trust Services

                  Re:   EQUITY SECURITY UNITS OF PLATINUM UNDERWRITERS
                        HOLDINGS, LTD. (THE "COMPANY")

          The undersigned Holder hereby notifies you, as Purchase Contract Agent
under the Purchase Contract Agreement, dated as of *, 2002, between the Company
and you, that it has delivered to State Street Bank and Trust Company, as
Collateral Agent, Custodial Agent and Securities Intermediary [$_________
aggregate principal amount of Treasury Securities] [$_________ principal amount
of Notes or the appropriate Treasury Consideration, as the case may be,] in
exchange for the related [Pledged Notes or Pledged Treasury Consideration, as
the case may be,] [Pledged Treasury Securities] held by the Collateral Agent, in
accordance with Section 4.1 of the Pledge Agreement, dated as of *, 2002, among
you, the Company and the Collateral Agent. The undersigned Holder has paid the
Collateral Agent all applicable fees relating to such exchange. The undersigned
Holder hereby instructs you to instruct the Collateral Agent to release to you
on behalf of the undersigned Holder the [Pledged Notes or Pledged Treasury
Consideration, as the case may be,] [Pledged Treasury Securities] related to
such [Normal Units] [Stripped Units]. Capitalized terms used herein but not
defined shall have the meaning set forth in the Purchase Contract Agreement.

Date:
                                     By:
                                         ---------------------------------------

                                     Signature Guarantee:
                                                          ----------------------

Dated:

Please print name and address of
Registered Holder:

Name                                 Social Security or other Taxpayer
                                     Identification Number, if any

Address

<Page>

                                    EXHIBIT E

                        NOTICE TO SETTLE BY SEPARATE CASH

JPMorgan Chase Bank
450 West 33rd Street
New York, New York 10001

Attn: Institutional Trust Services

                  Re:   EQUITY SECURITY UNITS OF PLATINUM UNDERWRITERS
                        HOLDINGS, LTD. (THE "COMPANY")

          The undersigned Holder hereby notifies you in accordance with Section
5.4 of the Purchase Contract Agreement, dated as of *, 2002, between the Company
and you, that it has delivered to State Street Bank and Trust Company, as
Collateral Agent, Custodial Agent and Securities Intermediary as Purchase
Contract Agent, Attorney-in-Fact and Trustee for the Holders of the Purchase
Contracts, that such Holder has elected to pay to the Collateral Agent, on or
prior to 11:00 a.m. New York City time, on the Business Day immediately
preceding the Share Purchase Date, (in lawful money of the United States by
certified or cashiers check or wire transfer, in each case in immediately
available funds), $_________ as the Purchase Price for the Common Shares
issuable to such Holder by the Company under the related Purchase Contract on
the Share Purchase Date. The undersigned Holder hereby instructs you to notify
promptly the Collateral Agent of the undersigned Holder's election to make such
cash settlement with respect to the Purchase Contracts related to such Holder's
Normal Units. Capitalized terms used herein but not defined shall have the
meaning set forth in the Purchase Contract Agreement.

Date:
                                     By:
                                         ---------------------------------------

                                     Signature Guarantee:
                                                         -----------------------

Dated:

Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program ("STAMP") or such
other "signature guarantee program" as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

Please print name and address of
Registered Holder:

Name                                 Social Security or other Taxpayer
                                     Identification Number, if any

Address<Page>

                                                                     EXHIBIT 4.5

                      PLATINUM UNDERWRITERS HOLDINGS, LTD.

                       STATE STREET BANK AND TRUST COMPANY

                      AS COLLATERAL AGENT, CUSTODIAL AGENT

                           AND SECURITIES INTERMEDIARY

                                       AND

                               JPMORGAN CHASE BANK

                           AS PURCHASE CONTRACT AGENT

                                PLEDGE AGREEMENT

                               DATED AS OF *, 2002

<Page>

                                TABLE OF CONTENTS

<Table>
<S>                                                                                                <C>
                                              ARTICLE I
                                             DEFINITIONS

SECTION 1.1      Definitions........................................................................2

                                              ARTICLE II
                                    PLEDGE; CONTROL AND PERFECTION

SECTION 2.1      The Pledge.........................................................................4
SECTION 2.2      Control and Perfection.............................................................5

                                             ARTICLE III
                                        PAYMENTS ON COLLATERAL

SECTION 3.1      Payments...........................................................................7
SECTION 3.2      Application of Payments............................................................9

                                              ARTICLE IV
                       SUBSTITUTION, RELEASE, REPLEDGE AND SETTLEMENT OF NOTES

SECTION 4.1      Collateral Substitution and the Creation of Stripped Units.........................9
SECTION 4.2      Collateral Substitution and the Re-Creation of Normal Units.......................10
SECTION 4.3      Termination Event.................................................................11
SECTION 4.4      Early Settlement; Merger Early Settlement; Cash Settlement........................11
SECTION 4.5      Remarketing; Application of Proceeds; Settlement..................................12

                                              ARTICLE V
                                        VOTING RIGHTS -- NOTES

SECTION 5.1      Exercise by Purchase Contract Agent...............................................14

                                              ARTICLE VI
                              RIGHTS AND REMEDIES; TAX EVENT REDEMPTION

SECTION 6.1      Rights and Remedies of the Collateral Agent.......................................15
SECTION 6.2      Substitutions.....................................................................16
SECTION 6.3      Tax Event Redemption..............................................................16
SECTION 6.4      Prepayment of Notes...............................................................17

                                             ARTICLE VII
                              REPRESENTATIONS AND WARRANTIES; COVENANTS

SECTION 7.1      Representations and Warranties of the Holders.....................................17
SECTION 7.2      Representations and Warranties of the Collateral Agent, Custodial
                 Agent and Securities Intermediary.................................................18
</Table>

<Page>

<Table>
<S>                                                                                                <C>
SECTION 7.3      Covenants.........................................................................19

                                             ARTICLE VIII
                                         THE COLLATERAL AGENT

SECTION 8.1      Appointment, Powers and Immunities................................................19
SECTION 8.2      Instructions of the Company.......................................................21
SECTION 8.3      Reliance..........................................................................21
SECTION 8.4      Rights in Other Capacities........................................................21
SECTION 8.5      Non-Reliance on Collateral Agent..................................................22
SECTION 8.6      Compensation and Indemnity........................................................22
SECTION 8.7      Failure to Act....................................................................23
SECTION 8.8      Resignation.......................................................................23
SECTION 8.9      Right to Appoint Agent or Advisor.................................................25
SECTION 8.10     Survival..........................................................................25
SECTION 8.11     Exculpation.......................................................................25

                                              ARTICLE IX
                                              AMENDMENT

SECTION 9.1      Amendment Without Consent of Holders..............................................25
SECTION 9.2      Amendment with Consent of Holders.................................................26
SECTION 9.3      Execution of Amendments...........................................................27
SECTION 9.4      Effect of Amendments..............................................................27
SECTION 9.5      Reference to Amendments...........................................................27

                                              ARTICLE X
                                            MISCELLANEOUS

SECTION 10.1     No Waiver.........................................................................27
SECTION 10.2     GOVERNING LAW.....................................................................28
SECTION 10.3     Notices...........................................................................28
SECTION 10.4     Successors and Assigns............................................................28
SECTION 10.5     Counterparts......................................................................29
SECTION 10.6     Severability......................................................................29
SECTION 10.7     Expenses, Etc.....................................................................29
SECTION 10.8     Security Interest Absolute........................................................29
SECTION 10.9     Waiver of Jury Trial..............................................................30
</Table>

EXHIBIT A   Instruction from Purchase Contract Agent to Collateral Agent

EXHIBIT B   Instruction to Purchase Contract Agent

EXHIBIT C   Instruction to Custodial Agent Regarding Remarketing

<Page>

EXHIBIT D   Instruction to Custodial Agent Regarding Withdrawal from
            Remarketing

<Page>

                                PLEDGE AGREEMENT

     PLEDGE AGREEMENT, dated as of *, 2002 (this "Agreement"), among Platinum
Underwriters Holdings, Ltd., a Bermuda corporation (the "Company"), State Street
Bank and Trust Company, a Massachusetts trust company, not individually but
solely as collateral agent (in such capacity, together with its successors in
such capacity, the "Collateral Agent"), as custodial agent (in such capacity,
together with its successors in such capacity, the "Custodial Agent") and as
"securities intermediary" as defined in Section 8-102(a)(14) of the Code (as
defined herein) (in such capacity, together with its successors in such
capacity, the "Securities Intermediary"), and JPMorgan Chase Bank, a New York
banking corporation, not individually but solely as purchase contract agent and
as attorney-in-fact of the Holders from time to time of the Units (in such
capacity, together with its successors in such capacity, the "Purchase Contract
Agent") under the Purchase Contract Agreement (as defined herein).

                                    RECITALS

     WHEREAS, the Company and the Purchase Contract Agent are parties to the
Purchase Contract Agreement, dated as of the date hereof (as modified and
supplemented and in effect from time to time, the "Purchase Contract
Agreement"), pursuant to which there may be issued Units having a Stated Amount
of $25 per Unit, all of which will initially be Normal Units.

     WHEREAS, each Normal Unit will be comprised of (a) a Purchase Contract and
(b) either beneficial ownership of (i) a 1/40, or 2.5%, beneficial ownership
interest in a Note having a $1,000 principal amount or (ii) following the
remarketing of the Notes in accordance with the Purchase Contract Agreement and
the Remarketing Agreement or if the Holder has elected not to have the Note
remarketed or a Tax Event Redemption in accordance with the Purchase Contract
Agreement and the terms of the Notes, the appropriate Treasury Consideration.

     WHEREAS, in accordance with the terms of the Purchase Contract Agreement, a
holder of Normal Units may separate the Notes or the appropriate Treasury
Consideration, as applicable, from the related Purchase Contracts by
substituting for such Notes or the appropriate Treasury Consideration, as the
case may be, Treasury Securities that will pay in the aggregate an amount equal
to the aggregate Stated Amount of such Normal Units. Upon such separation, the
Normal Units will become Stripped Units. Each Stripped Unit will be comprised of
(a) a Purchase Contract and (b) a 1/40 undivided beneficial interest in a
Treasury Security.

     WHEREAS, pursuant to the terms of the Purchase Contract Agreement and the
Purchase Contracts, the Holders, from time to time, of the Units have
irrevocably authorized the Purchase Contract Agent, as attorney-in-fact of such
Holders, among other things, to execute and deliver this Agreement on behalf of
such Holders and to grant the pledge provided hereby of the Notes, any Treasury
Consideration and any Treasury

<Page>

Securities delivered in exchange therefor to secure each Holder's obligations
under the related Purchase Contract, as provided herein and subject to the terms
hereof.

     NOW, THEREFORE, and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the Company, the Collateral
Agent, the Securities Intermediary, the Custodial Agent and the Purchase
Contract Agent, on its own behalf and as attorney-in-fact of the Holders from
time to time of the Units, agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

     SECTION 1.1  Definitions

     For all purposes of this agreement, except as otherwise expressly provided
or unless the context otherwise requires:

     (a)    capitalized terms used but not defined herein are used as defined in
   the Purchase Contract Agreement;

     (b)    the defined terms in this Agreement have the meanings assigned to
   them in this Article and include the plural as well as the singular; and

     (c)    the words "herein," "hereof" and "hereunder" and other words of
   similar import refer to this Agreement as a whole and not to any particular
   Article, Section or other subdivision.

     "Agreement" means this agreement as originally executed or as it may from
time to time be supplemented or amended by one or more agreements supplemental
hereto entered into pursuant to the applicable provisions hereof.

     "Code" has the meaning specified in Section 6.1 hereof.

     "Collateral" has the meaning specified in Section 2.1 hereof.

     "Collateral Account" means the securities account (number *) maintained at
* in the name "JPMorgan Chase Bank, as Purchase Contract Agent on behalf of the
holders of certain securities of Platinum Underwriters Holdings, Ltd.,
Collateral Account subject to the security interest of State Street Bank and
Trust Company, as Collateral Agent, for the benefit of Platinum Underwriters
Holdings, Ltd., as pledgee" and any successor account.

     "Collateral Agent" has the meaning specified in the first paragraph of this
Agreement.

                                       -2-
<Page>

     "Company" means the Person named as the "Company" in the first paragraph of
this Agreement until a successor shall have become such, and thereafter
"Company" shall mean such successor.

     "Custodial Agent" has the meaning specified in the first paragraph of this
Agreement.

     "Intermediary" means any entity that in the ordinary course of its business
maintains securities accounts for others and is acting in that capacity.

     "Pledge" has the meaning specified in Section 2.1 hereof.

     "Pledged Notes" has the meaning specified in Section 2.1 hereof.

     "Pledged Treasury Consideration" has the meaning specified in Section 2.1
hereof.

     "Pledged Treasury Securities" has the meaning specified in Section 2.1
hereof.

     "Proceeds" means all interest, dividends, cash, instruments, securities,
financial assets (as defined in Section 8-102(a)(9) of the Code) and other
property from time to time received, receivable or otherwise distributed upon
the sale, exchange, collection or disposition of the Collateral or any proceeds
thereof.

     "Purchase Contract Agent" has the meaning specified in the first paragraph
of this Agreement.

     "Purchase Contract Agreement" has the meaning specified in the Recitals.

     "Securities Intermediary" has the meaning specified in the first paragraph
of this Agreement.

     "Security Entitlement" has the meaning set forth in Section 8-102(a) (17)
of the Code.

     "Separate Notes" means any Notes that are not Pledged Notes.

     "TRADES Regulations" means the regulations of the United States Department
of the Treasury, published at 31 C.F.R. Part 357, as amended from time to time.
Unless otherwise defined herein, all terms defined in the TRADES Regulations are
used herein as therein defined.

     "Transfer" means, with respect to the Collateral and in accordance with the
instructions of the Collateral Agent, the Purchase Contract Agent or the Holder,
as applicable:

                                       -3-
<Page>

     (i)    in the case of Collateral consisting of securities which cannot be
            delivered by book-entry or which the parties agree are to be
            delivered in physical form, delivery in appropriate physical form to
            the recipient accompanied by any duly executed instruments of
            transfer, assignments in blank, transfer tax stamps and any other
            documents necessary to constitute a legally valid transfer to the
            recipient;

     (ii)   in the case of Collateral consisting of securities maintained in
            book-entry form by causing a "securities intermediary" (as defined
            in Section 8-102(a)(14) of the Code) to (a) credit a "security
            entitlement" (as defined in Section 8-102(a)(17) of the Code) with
            respect to such securities to a "securities account" (as defined in
            Section 8-501(a) of the Code) maintained by or on behalf of the
            recipient and (b) to issue a confirmation to the recipient with
            respect to such credit. In the case of Collateral to be delivered to
            the Collateral Agent, the securities intermediary shall be the
            Securities Intermediary and the securities account shall be the
            Collateral Account. In addition, any Transfer of Treasury Securities
            and Treasury Consideration hereunder shall be made in accordance
            with the TRADES Regulations and other applicable law.

                                   ARTICLE II

                         PLEDGE; CONTROL AND PERFECTION

     SECTION 2.1  The Pledge

     (a)    The Holders from time to time acting through the Purchase Contract
Agent, as their attorney-in-fact, and the Purchase Contract Agent, as such
attorney-in-fact, hereby pledge and grant to the Collateral Agent, for the
benefit of the Company, as collateral security for the performance when due by
such Holders of their respective obligations under the related Purchase
Contracts, a security interest in all of the right, title and interest of the
Purchase Contract Agent and such Holders in:

     (i)    (A) the Notes, Treasury Consideration or Treasury Securities
            constituting a part of the Units, (B) any Treasury Securities
            delivered in exchange for any Notes or Treasury Consideration, as
            applicable, in accordance with Section 4.1 hereof, and (C) any Notes
            or Treasury Consideration, as applicable, delivered in exchange for
            any Treasury Securities in accordance with Section 4.2 hereof, in
            each case that have been Transferred to or otherwise received by the
            Collateral Agent and not released by the Collateral Agent to such
            Holders under the provisions of this Agreement;

                                       -4-
<Page>

     (ii)   the Collateral Account and all securities, financial assets,
            security entitlements, cash and other property credited thereto and
            all Security Entitlements related thereto; and

     (iii)  all Proceeds of the foregoing (all of the foregoing, collectively,
            the "Collateral").

     (b)    Prior to or concurrently with the execution and delivery of this
Agreement, the Purchase Contract Agent, on behalf of the initial Holders of the
Units, shall cause the Notes comprising a part of the Normal Units to be
Transferred to the Collateral Agent for the benefit of the Company.

     (c)    The pledge provided in this Section 2.1 is herein referred to as the
"Pledge" and the Notes (including any Notes that are delivered pursuant to
Section 6.2 hereof), Treasury Consideration and Treasury Securities subject to
the Pledge, excluding any Notes, Treasury Consideration or Treasury Securities
released from the Pledge as provided in Sections 4.1 and 4.2 hereof,
respectively, are hereinafter referred to as "Pledged Notes," "Pledged Treasury
Consideration" and "Pledged Treasury Securities," respectively. Subject to the
Pledge and the provisions of Section 2.2 hereof, the Holders from time to time
shall have full beneficial ownership of the Collateral. For purposes of
perfecting the Pledge under applicable law, including, to the extent applicable,
the TRADES Regulations or the Uniform Commercial Code as adopted and in effect
in any applicable jurisdiction, the Collateral Agent shall be the agent of the
Company as provided herein. Whenever directed by the Collateral Agent acting on
behalf of the Company, the Securities Intermediary shall have the right to
reregister the Notes or any other securities held in physical form in its name.

     (d)    Except as may be required in order to release Notes or Treasury
Consideration, as applicable, in connection with a Tax Event Redemption or with
a Holder's election to convert its investment from a Normal Unit to a Stripped
Unit, or except as otherwise required to release Notes as specified herein,
neither the Collateral Agent, the Custodial Agent nor the Securities
Intermediary shall relinquish physical possession of any certificate evidencing
Notes, Treasury Securities or Treasury Consideration, as applicable, prior to
the termination of this Agreement. If it becomes necessary for the Securities
Intermediary to relinquish physical possession of a certificate in order to
release a portion of the Notes evidenced thereby from the Pledge, the Securities
Intermediary shall use its best efforts to obtain physical possession of a
replacement certificate evidencing any Notes remaining subject to the Pledge
hereunder registered to it or endorsed in blank within fifteen days of the date
it relinquished possession. The Securities Intermediary shall promptly notify
the Company and the Collateral Agent of the Securities Intermediary's inability
to obtain possession of any such replacement certificate as required hereby.

                                       -5-
<Page>

     SECTION 2.2  Control and Perfection

     (a)    In connection with the Pledge granted in Section 2.1, and subject to
the other provisions of this Agreement, the Holders from time to time acting
through the Purchase Contract Agent, as their attorney-in-fact, hereby authorize
and direct the Securities Intermediary (without the necessity of obtaining the
further consent of the Purchase Contract Agent or any of the Holders), and the
Securities Intermediary agrees, to comply with and follow any instructions and
entitlement orders (as defined in Section 8-102(a)(8) of the Code) that the
Collateral Agent may deliver upon the written direction of the Company with
respect to the Collateral Account, the Collateral credited thereto and any
Security Entitlements with respect to any thereof. In the event the Securities
Intermediary receives from the Holders or the Purchase Contract Agent
entitlement orders which conflict with entitlement orders received from the
Collateral Agent, the Securities Intermediary shall follow the entitlement
orders received from the Collateral Agent. Such instructions and entitlement
orders may, without limitation, direct the Securities Intermediary to transfer,
redeem, assign, or otherwise deliver the Notes, the Treasury Consideration and
the Treasury Securities, and any Security Entitlements with respect thereto or
sell, liquidate or dispose of such assets through a broker designated by the
Company, and to pay and deliver any income, proceeds or other funds derived
therefrom to the Company. The Holders from time to time acting through the
Purchase Contract Agent hereby further authorize and direct the Collateral
Agent, as agent of the Company, to, upon written direction of the Company,
itself issue instructions and entitlement orders, and to otherwise take action,
with respect to the Collateral Account, the Collateral credited thereto and any
Security Entitlements with respect thereto, pursuant to the terms and provisions
hereof, all without the necessity of obtaining the further consent of the
Purchase Contract Agent or any of the Holders. The Collateral Agent shall be the
agent of the Company and shall act only in accordance with the terms hereof or
as otherwise directed in writing by the Company. Without limiting the generality
of the foregoing, the Collateral Agent shall issue entitlement orders to the
Securities Intermediary when and as required by the terms hereof or as otherwise
directed in writing by the Company.

     (b)    The Securities Intermediary hereby confirms and agrees that:

     (i)    all securities or other property underlying any financial assets
            credited to the Collateral Account shall be registered in the name
            of the Securities Intermediary, or its nominee, indorsed to the
            Securities Intermediary, or its nominee, or in blank or credited to
            another Collateral Account maintained in the name of the Securities
            Intermediary and in no case will any financial asset credited to the
            Collateral Account be registered in the name of the Purchase
            Contract Agent, the Collateral Agent, the Company or any Holder,
            payable to the order of, or specially indorsed to, the Purchase
            Contract Agent, the Collateral Agent, the Company or any Holder
            except to the extent the foregoing have been specially indorsed to
            the Securities Intermediary or in blank;

                                       -6-
<Page>

     (ii)   all property delivered to the Securities Intermediary pursuant to
            this Agreement (including, without limitation, any Notes, Treasury
            Consideration or Treasury Securities) will be promptly credited to
            the Collateral Account;

     (iii)  the Collateral Account is an account to which financial assets are
            or may be credited, and the Securities Intermediary shall, subject
            to the terms of this Agreement, treat the Purchase Contract Agent as
            entitled to exercise the rights of any financial asset credited to
            the Collateral Account;

     (iv)   the Securities Intermediary has not entered into, and until the
            termination of this Agreement will not enter into, any agreement
            with any other Person relating to the Collateral Account and/or any
            financial assets credited thereto pursuant to which it has agreed to
            comply with entitlement orders (as defined in Section 8-102(a)(8) of
            the Code) of such other Person; and

     (v)    the Securities Intermediary has not entered into, and until the
            termination of this Agreement will not enter into, any agreement
            with the Company, the Collateral Agent or the Purchase Contract
            Agent purporting to limit or condition the obligation of the
            Securities Intermediary to comply with entitlement orders as set
            forth in this Section 2.2 hereof.

     (c)    The Securities Intermediary hereby agrees that each item of property
(whether investment property, financial asset, security, instrument or cash)
credited to the Collateral Account shall be treated as a "financial asset"
within the meaning of Section 8-102(a)(9) of the Code.

     (d)    In the event of any conflict between this Agreement (or any portion
thereof) and any other agreement now existing or hereafter entered into, the
terms of this Agreement shall prevail.

     (e)    The Purchase Contract Agent hereby irrevocably constitutes and
appoints the Collateral Agent and the Company, with full power of substitution,
as the Purchase Contract Agent's attorney-in-fact to take on behalf of, and in
the name, place and stead of the Purchase Contract Agent and the Holders, any
action necessary or desirable to perfect and to keep perfected the security
interest in the Collateral referred to in Section 2.1. The grant of such
power-of-attorney shall not be deemed to require of the Collateral Agent any
specific duties or obligations not otherwise assumed by the Collateral Agent
hereunder. Notwithstanding the foregoing, in no event shall the Collateral Agent
or Securities Intermediary be responsible for the preparation or filing of any
financing or continuation statements in the appropriate jurisdictions or
responsible for maintenance or perfection of any Security Interest hereunder.

                                       -7-
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                                   ARTICLE III

                             PAYMENTS ON COLLATERAL

     SECTION 3.1  Payments

     So long as the Purchase Contract Agent is the registered owner of the
Pledged Notes, Pledged Treasury Consideration or Pledged Treasury Securities, it
shall receive all payments thereon. If the Pledged Notes are reregistered such
that the Collateral Agent becomes the registered holder, all payments of the
principal of, or interest on, the Pledged Notes and all payments of the
principal of, or cash distributions on, any Pledged Treasury Consideration or
Pledged Treasury Securities, that are received by the Collateral Agent and that
are properly payable hereunder shall be paid by the Collateral Agent by wire
transfer in same day funds:

     (i)    in the case of (A) quarterly cash distributions on Normal Units
            which include Pledged Notes or Pledged Treasury Consideration, as
            the case may be, and (B) any payments of principal or, if
            applicable, any Tax Event Redemption Treasury Consideration, (as
            specified in clause (B) of the definition of such term) with respect
            to any Notes or Treasury Consideration, as the case may be, that
            have been released from the Pledge pursuant to Section 4.3 hereof,
            to the Purchase Contract Agent, for the benefit of the relevant
            Holders of the Normal Units, to the account designated by the
            Purchase Contract Agent for such purpose no later than 11:00 a.m.,
            New York City time, on the Business Day such payment is received by
            the Collateral Agent (provided that in the event such payment or
            payment instructions are received by the Collateral Agent after 9:00
            a.m., New York City time, on a Business Day, then such payment shall
            be made no later than 10:30, New York City time, on the next
            succeeding Business Day and in the event such payment or payment
            instructions are received by the Collateral Agent on a day that is
            not a Business Day, then such payment shall be made no later than
            12:00 p.m., New York City time, on the next succeeding Business
            Day);

     (ii)   in the case of any payments with respect to any Treasury Securities
            that have been released from the Pledge pursuant to Section 4.3
            hereof to the Holders of the Stripped Units, to the accounts
            designated by the Purchase Contract Agent in writing for such
            purpose no later than 2:00 p.m., New York City time, on the Business
            Day such payment is received by the Collateral Agent (provided that
            in the event such payment or payment instructions are received by
            the Collateral Agent after 10:00 a.m., New York City time, on a
            Business Day, then such payment shall be made no later than 10:30,
            New York City time, on the next succeeding Business Day and in the
            event such payment or payment instructions are received by the
            Collateral Agent on a day that is not a Business Day, then such

                                       -8-
<Page>

            payment shall be made no later than 12:00 p.m., New York City time,
            on the next succeeding Business Day); any payment to be made
            directly to the Holders of such Stripped Units shall be subject
            to applicable federal withholding law, including the requirement
            that a Holder shall have provided to the Collateral Agent its
            certified taxpayer identification number by furnishing
            appropriate Forms W-9 (or such other forms as shall be applicable);

     (iii)  in the case of payments in respect of any Pledged Notes, Pledged
            Treasury Consideration or Pledged Treasury Securities, as the case
            may be, to be paid upon settlement of such Holder's obligations to
            purchase Common Shares under the Purchase Contract, to the Company
            on the Share Purchase Date in accordance with the procedure set
            forth in Section 4.5(a) or 4.5(b) hereof, in full satisfaction of
            the respective obligations of the Holders under the related Purchase
            Contracts; and

     (iv)   in the case of any payments in respect of any Pledged Notes upon a
            Prepayment Event, in accordance with the written instructions of the
            Purchase Contract Agent for the purchase of the Prepayment Treasury
            Consideration and as set forth in Section 4.5 of the Purchase
            Contract Agreement.

     SECTION 3.2  Application of Payments

     All payments received by the Purchase Contract Agent as provided herein
shall be applied by the Purchase Contract Agent pursuant to the provisions of
the Purchase Contract Agreement. If, notwithstanding the foregoing, the Purchase
Contract Agent shall receive any payments of principal on account of any Notes
or Treasury Consideration, as applicable, that, at the time of such payment, are
Pledged Notes or Pledged Treasury Consideration, as the case may be (other than
payments to which it is entitled pursuant to the terms of the Purchase Contract
Agreement), or a Holder of a Stripped Unit shall receive any payments of
principal on account of any Treasury Securities that, at the time of such
payment, are Pledged Treasury Securities (other than payments to which it is
entitled pursuant to the terms of the Purchase Contract Agreement), the Purchase
Contract Agent or such Holder shall hold the same as trustee of an express trust
for the benefit of the Company (and promptly deliver the same over to the
Company) for application to the obligations of the Holders under the related
Purchase Contracts, and the Holders shall acquire no right, title or interest in
any such payments of principal so received.

                                   ARTICLE IV

             SUBSTITUTION, RELEASE, REPLEDGE AND SETTLEMENT OF NOTES

     SECTION 4.1  Collateral Substitution and the Creation of Stripped Units

     At any time on or prior to the second Business Day immediately preceding
the Share Purchase Date, a Holder of Normal Units shall have the right to
substitute Treasury Securities for the Pledged Notes or Pledged Treasury
Consideration, as the case may be, securing such Holder's obligations under the
Purchase Contracts comprising a part of

                                       -9-
<Page>

such Normal Units, in integral multiples of 40 Normal Units, or after a
successful remarketing of the Notes pursuant to the Purchase Contract Agreement
or a Tax Event Redemption, in integral multiples of Normal Units so that
Treasury Securities to be deposited and the applicable Treasury Consideration,
as the case may be, to be released are in integral multiples of $1,000, by (a)
Transferring to the Collateral Agent Treasury Securities having an aggregate
principal amount equal to the aggregate Stated Amount of such Normal Units and
(b) delivering such Normal Units to the Purchase Contract Agent, accompanied by
a notice, substantially in the form of Exhibit B hereto, to the Purchase
Contract Agent stating that such Holder has Transferred Treasury Securities to
the Collateral Agent pursuant to clause (a) above (stating the principal amount,
the maturities and the CUSIP numbers of the Treasury Securities Transferred by
such Holder) and requesting that the Purchase Contract Agent instruct the
Collateral Agent to release from the Pledge the Pledged Notes or Pledged
Treasury Consideration related to such Normal Units, whereupon the Purchase
Contract Agent shall promptly give such instruction to the Collateral Agent in
the form provided in Exhibit A; provided that, such Holder may not substitute
such Treasury Securities for such Pledged Notes or Pledged Treasury
Consideration pursuant to this Section 4.1 after a Prepayment Event or during
the period from four Business Days prior to any Remarketing Period until the
expiration of three Business Days after the end of such Remarketing Period. Upon
receipt of Treasury Securities from a Holder of Normal Units and the related
instruction from the Purchase Contract Agent, the Collateral Agent shall release
the Pledged Notes or Pledged Treasury Consideration and shall promptly Transfer
such Pledged Notes or Pledged Treasury Consideration free and clear of any lien,
pledge or security interest created hereby, to the Purchase Contract Agent. All
items Transferred and/or substituted by any Holder pursuant to this Section 4.1,
Section 4.2 or any other Section of this Agreement shall be Transferred and/or
substituted free and clear of all liens, claims and encumbrances.

     SECTION 4.2  Collateral Substitution and the Re-Creation of Normal Units

     At any time on or prior to the second Business Day immediately preceding
the Share Purchase Date, a Holder of Stripped Units shall have the right to
reestablish Normal Units (a) consisting of the Purchase Contracts and Notes in
integral multiples of 40 Normal Units, or (b) after a remarketing of the Notes
pursuant to the Purchase Contract Agreement or a Tax Event Redemption,
consisting of the Purchase Contracts and the appropriate Treasury Consideration
(identified and calculated by reference to the Treasury Consideration then
comprising Normal Units) or the appropriate portion of the Treasury Portfolio in
integral multiples of Stripped Units so that the Treasury Consideration to be
deposited and the Treasury Securities to be released are in integral multiples
of $1,000, by (x) Transferring to the Collateral Agent Notes or the appropriate
Treasury Consideration, as the case may be, then comprising such number of
Normal Units as is equal to such Stripped Units and (y) delivering such Stripped
Units to the Purchase Contract Agent, accompanied by a notice, substantially in
the form of Exhibit B hereto, to the Purchase Contract Agent stating that such
Holder has transferred Notes or Treasury Consideration to the Collateral Agent
pursuant to clause (a) above and requesting that the Purchase Contract Agent
instruct the Collateral Agent to release from

                                      -10-
<Page>

the Pledge the Pledged Treasury Securities related to such Stripped Units,
whereupon the Purchase Contract Agent shall give such instruction to the
Collateral Agent in the form provided in Exhibit A. Upon receipt of the Notes or
the appropriate Treasury Consideration, as the case may be, from such Holder and
the instruction from the Purchase Contract Agent, the Collateral Agent shall
release the Pledged Treasury Securities and shall promptly Transfer such
Treasury Securities, free and clear of any lien, pledge or security interest
created hereby, to the Purchase Contract Agent.

     SECTION 4.3  Termination Event

     (a)    Upon receipt by the Collateral Agent of written notice from the
Company or the Purchase Contract Agent that there has occurred a Termination
Event and identifying the nature of the Termination Event, the Collateral Agent
shall release all Collateral from the Pledge and shall promptly Transfer any
Pledged Notes or Pledged Treasury Consideration, as the case may be, and Pledged
Treasury Securities to the Purchase Contract Agent for the benefit of the
Holders of the Normal Units and the Stripped Units, respectively, free and clear
of any lien, pledge or security interest or other interest created in favor of
the Collateral Agent hereby.

     (b)    If such Termination Event shall result from the Company's becoming a
debtor under the Bankruptcy Code, and if the Collateral Agent shall advise the
Purchase Contract Agent in writing that the Collateral Agent shall for any
reason be prohibited from promptly effectuating the release and Transfer of all
Pledged Notes, Pledged Treasury Consideration or Pledged Treasury Securities, as
the case may be, as provided by this Section 4.3, the Purchase Contract Agent
shall:

     (i)    use its reasonable best efforts to obtain an opinion of a nationally
            recognized law firm reasonably acceptable to the Collateral Agent to
            the effect that, as a result of the Company's being the debtor in
            such a bankruptcy case, the Collateral Agent will not be prohibited
            from releasing or Transferring the Collateral as provided in this
            Section 4.3, and shall deliver such opinion to the Collateral Agent
            within ten days after the occurrence of such Termination Event, and
            if (y) the Purchase Contract Agent shall be unable to obtain such
            opinion within ten days after the occurrence of such Termination
            Event or (z) the Collateral Agent shall continue, after delivery of
            such opinion, to refuse to effectuate the release and Transfer of
            all Pledged Notes, Pledged Treasury Consideration or Pledged
            Treasury Securities, as the case may be, as provided in this Section
            4.3, then the Purchase Contract Agent shall within fifteen days
            after the occurrence of such Termination Event commence an action or
            proceeding in the court with jurisdiction of the Company's case
            under the Bankruptcy Code seeking an order requiring the Collateral
            Agent to effectuate the release and transfer of all Pledged Notes,
            Pledged Treasury Consideration or Pledged Treasury Securities, as
            the case may be, as provided by this Section 4.3 or

                                      -11-
<Page>

     (ii)   commence an action or proceeding like that described in subsection
            (i) hereof within ten days after the occurrence of such Termination
            Event.

     SECTION 4.4  Early Settlement; Merger Early Settlement; Cash Settlement

     Upon written notice to the Collateral Agent by the Purchase Contract Agent
that one or more Holders of Units have elected to effect Early Settlement,
Merger Early Settlement or Cash Settlement of their respective obligations under
the Purchase Contracts forming a part of such Units in accordance with the terms
of the Purchase Contracts and the Purchase Contract Agreement (setting forth the
number of such Purchase Contracts as to which such Holders have elected to
effect Early Settlement, Merger Early Settlement or Cash Settlement), and that
the Purchase Contract Agent has received from such Holders, and paid to the
Company as confirmed in writing by the Company, the related Early Settlement
Amounts, Merger Early Settlement Amounts or Cash Settlement Amounts, as the case
may be, pursuant to the terms of the Purchase Contracts and the Purchase
Contract Agreement and that all conditions to such Early Settlement, Merger
Early Settlement or Cash Settlement, as the case may be, have been satisfied,
then the Collateral Agent shall release from the Pledge (a) Pledged Notes or
Pledged Treasury Consideration, as the case may be, in the case of a Holder of
Normal Units or (b) Pledged Treasury Securities, in the case of a Holder of
Stripped Units, identified by the Purchase Contract Agent as relating to such
Purchase Contracts as to which such Holders have elected to effect Early
Settlement, Merger Early Settlement or Cash Settlement, and shall Transfer all
such Pledged Notes, Pledged Treasury Consideration or Pledged Treasury
Securities, as the case may be, free and clear of any lien, pledge or security
interest created hereby, to the Purchase Contract Agent for the benefit of the
Holders.

     SECTION 4.5  Remarketing; Application of Proceeds; Settlement

     (a)    Pursuant to the Purchase Contract Agreement, the Purchase Contract
Agent shall notify, by 10:00 a.m., New York City time, on the third Business Day
preceding the first day of any Remarketing Period, the Remarketing Agent and the
Collateral Agent of the aggregate principal amount of Notes comprising part of
Normal Units to be remarketed. The Collateral Agent shall, by 10:00 a.m., New
York City time, on the Business Day immediately preceding the first day of any
Remarketing Period, without any instruction from Holders of Normal Units,
deliver (i) the Pledged Notes to be remarketed to the Remarketing Agent for
remarketing and (ii) the remaining Pledged Notes to the Purchase Contract Agent
for distribution to the Holders that have elected not to participate in the
remarketing in accordance with the Purchase Contract Agreement. After deducting
as the remarketing fee an amount not exceeding 25 basis points (.25%) of the
total proceeds of such remarketing, the Remarketing Agent will deliver the
Agent-purchased Treasury Consideration (as defined in the Purchase Contract
Agreement) purchased from the proceeds of a successful remarketing to the
Purchase Contract Agent, which shall thereupon deliver such Agent-purchased
Treasury Consideration to the Collateral Agent. Upon receipt of the
Agent-purchased Treasury Consideration from the

                                      -12-
<Page>

Purchase Contract Agent following a successful remarketing, the Collateral
Agent, for the benefit of the Company, shall thereupon hold such Agent-purchased
Treasury Consideration to secure such Holders' obligations under the Purchase
Contracts. On the Share Purchase Date, the Collateral Agent shall apply that
portion of the payments received in respect of the Pledged Treasury
Consideration equal to the aggregate Stated Amount of the related Normal Units
to satisfy in full the obligations of such Holders of Normal Units to pay the
Purchase Price under the related Purchase Contracts. The remaining portion of
such Proceeds, if any, shall be distributed by the Collateral Agent to the
Purchase Contract Agent for payment to each Holder of a Normal Unit a cash
payment in an amount equal to 1/40, or 2.5%, of a quarterly interest payment on
the $1000 principal amount of a Senior Note at the initial annual rate of * %.

     (b)    Promptly following a Failed Remarketing, the Notes delivered to the
Remarketing Agent and the Purchase Contract Agent pursuant to Section 4.5(a)
shall be returned to the Collateral Agent, together with written notice from the
Remarketing Agent of the Failed Remarketing. The Collateral Agent, for the
benefit of the Company, shall thereupon hold such Notes to secure the
obligations of Holders of Normal Units under the Purchase Contracts. The
Remarketing Agent shall make one or more attempts to remarket the Notes in
accordance with the procedures set forth in the Purchase Contract Agreement and
the Remarketing Agreement between the Remarketing Date and the Share Purchase
Date, provided that the requirements of Section 5.4(b)(ii) of the Purchase
Contract Agreement have been met. If by 4:00 p.m., New York City time, on the
third Business Day immediately preceding the Share Purchase Date the Remarketing
Agent has failed to remarket the Notes at a price equal to at least 100.25% of
the Remarketing Value (as described in the Purchase Contract Agreement), the
"Last Failed Remarketing" shall be deemed to have occurred. In this case, the
Remarketing Agent shall advise the Collateral Agent in writing that it cannot
remarket the related Pledged Notes of such Holders of Normal Units and the Notes
delivered to the Remarketing Agent pursuant to Section 4.5(a) shall promptly be
returned to the Collateral Agent. The Collateral Agent, for the benefit of the
Company will, at the written direction of the Company, deliver or dispose of the
Pledged Notes in accordance with the Company's written instructions to satisfy
in full, from any such disposition or retention, such Holders' obligations to
pay the Purchase Price for the Common Shares; provided that if upon a Failed
Remarketing or the Last Failed Remarketing, as the case may be, the Collateral
Agent delivers or disposes of the Pledged Notes in accordance with the written
instructions of the Company, any accrued and unpaid interest on such Notes will
become payable by the Company to the Purchase Contract Agent for payment to the
Holder of the Normal Units to which such Notes relate in accordance with the
Purchase Contract Agreement.

     (c)    In the event a Holder of Stripped Units has not made an Early
Settlement, Merger Early Settlement or Cash Settlement of the Purchase Contracts
underlying its Stripped Units, such Holder shall be deemed to have elected to
pay for the Common Shares to be issued under such Purchase Contracts from the
payments received in respect of the related Pledged Treasury Securities. Without
receiving any instruction from any

                                      -13-
<Page>

such Holder of Stripped Units, the Collateral Agent shall apply such payments to
the settlement of such Purchase Contracts on the Share Purchase Date pursuant to
written instructions from the Purchase Contract Agent. In the event the payments
received in respect of the related Pledged Treasury Securities are in excess of
the aggregate Purchase Price of the Purchase Contracts being settled thereby,
the Collateral Agent shall distribute such excess, when received, to the
Purchase Contract Agent for payment to such Holders of Stripped Units.

     (d)    Pursuant to the Remarketing Agreement and Purchase Contract
Agreement, on or prior to the fourth Business Day preceding the first day of any
Remarketing Period, but no earlier than the Payment Date immediately preceding
*, 2005, holders of Separate Notes may elect to have their Separate Notes
remarketed by delivering their Separate Notes, together with a notice of such
election, substantially in the form of Exhibit C hereto, to the Custodial Agent.
On the third Business Day prior to the first day of any Remarketing Period, by
10:00 a.m., New York City time, the Custodial Agent shall notify the Remarketing
Agent of the principal amount of such Separate Notes to be remarketed. The
Custodial Agent will hold such Separate Notes in an account separate from the
Collateral Account. A holder of Separate Notes electing to have its Separate
Notes remarketed will also have the right to withdraw such election by written
notice to the Custodial Agent, substantially in the form of Exhibit D hereto, on
or prior to the fourth Business Day immediately preceding the first day of any
Remarketing Period, upon which notice the Custodial Agent will return such
Separate Notes to such holder. On the Business Day immediately preceding the
first day of any Remarketing Period, the Custodial Agent will deliver to the
Remarketing Agent for remarketing all Separate Notes delivered to the Custodial
Agent pursuant to this Section 4.5(d) and not withdrawn pursuant to the terms
hereof prior to such date. The portion of the proceeds from such remarketing
equal to the amount calculated in respect of such Separate Notes as set forth in
Section 5.4(b) of the Purchase Contract Agreement will automatically be remitted
by the Remarketing Agent to the Custodial Agent for the benefit of the holders
of such Separate Notes. In addition, after deducting as the remarketing fee an
amount not exceeding 25 basis points (.25%) of the total proceeds of such
remarketing of such Separate Notes, the Remarketing Agent will remit to the
Custodial Agent the remaining portion of the proceeds, if any, for payment to
such holders. If, despite using commercially reasonable best efforts, the
Remarketing Agent advises the Custodial Agent in writing that there has been a
Failed Remarketing, the Remarketing Agent will promptly return such Notes to the
Custodial Agent for redelivery to the holders of such Separate Notes. For
purposes of this Section 4.5(d), a "holder" of a Separate Notes shall mean the
Person in whose name such Separate Notes is registered on the books of the
registrar for the Notes.

                                      -14-
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                                    ARTICLE V

                             VOTING RIGHTS -- NOTES

     SECTION 5.1  Exercise by Purchase Contract Agent

     The Purchase Contract Agent may exercise, or refrain from exercising, any
and all voting and other consensual rights pertaining to the Pledged Notes or
any part thereof for any purpose not inconsistent with the terms of this
Agreement and in accordance with the terms of the Purchase Contract Agreement;
provided that the Purchase Contract Agent shall not exercise or, as the case may
be, shall not refrain from exercising such right if, in the judgment of the
Company, such action would impair or otherwise have a material adverse effect on
the value of all or any of the Pledged Notes; and provided, further, that the
Purchase Contract Agent shall give the Company and the Collateral Agent at least
five Business Days' prior written notice of the manner in which it intends to
exercise, or its reasons for refraining from exercising, any such right. Upon
receipt of any notices and other communications in respect of any Pledged Notes,
including notice of any meeting at which holders of Notes are entitled to vote
or solicitation of consents, waivers or proxies of holders of Notes, the
Collateral Agent shall use reasonable efforts to send promptly to the Purchase
Contract Agent such notice or communication, and as soon as reasonably
practicable after receipt of a written request therefor from the Purchase
Contract Agent, execute and deliver to the Purchase Contract Agent such proxies
and other instruments in respect of such Pledged Notes (in form and substance
satisfactory to the Collateral Agent) as are prepared by the Purchase Contract
Agent with respect to the Pledged Notes.

                                   ARTICLE VI

                    RIGHTS AND REMEDIES; TAX EVENT REDEMPTION

     SECTION 6.1  Rights and Remedies of the Collateral Agent

     (a)    In addition to the rights and remedies available at law or in
equity, after an event of default under the Purchase Contracts, the Collateral
Agent shall have all of the rights and remedies with respect to the Collateral
of a secured party under the Uniform Commercial Code (or any successor thereto)
as in effect in the State of New York from time to time (the "Code") (whether or
not the Code is in effect in the jurisdiction where the rights and remedies are
asserted) and the TRADES Regulations and such additional rights and remedies to
which a secured party is entitled under the laws in effect in any jurisdiction
where any rights and remedies hereunder may be asserted. Wherever reference is
made in this Agreement to any section of the Code, such reference shall be
deemed to include a reference to any provision of the Code which is a successor
to, or amendment of, such section. Without limiting the generality of the
foregoing, such remedies may include, to the extent permitted by applicable law,
(i) retention of the Pledged Notes or other Collateral in full satisfaction of
the Holders' obligations under the

                                      -15-
<Page>

Purchase Contracts or (ii) sale of the Pledged Notes or other Collateral in one
or more public or private sales or otherwise at the written direction of the
Company.

     (b)    Without limiting any rights or powers otherwise granted by this
Agreement to the Collateral Agent, in the event the Collateral Agent is unable
to make payments to the Company on account of any Pledged Treasury Consideration
or Pledged Treasury Securities as provided in Article III hereof in satisfaction
of the obligations of the Holder of the Units of which such Pledged Treasury
Consideration or Pledged Treasury Securities, as applicable, is a part under the
related Purchase Contracts, the inability to make such payments shall constitute
an event of default under the Purchase Contracts and the Collateral Agent shall
have and may exercise, with reference to such Pledged Treasury Securities or
such Pledged Treasury Consideration, as applicable, and such obligations of such
Holder, any and all of the rights and remedies available to a secured party
under the Code and the TRADES Regulations after default by a debtor, and as
otherwise granted herein or under any other law.

     (c)    Without limiting any rights or powers otherwise granted by this
Agreement to the Collateral Agent, the Collateral Agent is hereby irrevocably
authorized to receive and collect all payments of (i) the principal amount of,
or interest on, the Pledged Notes, or (ii) the principal amount of the Pledged
Treasury Consideration or Pledged Treasury Securities, subject, in each case, to
the provisions of Article III, and as otherwise granted herein.

     (d)    The Purchase Contract Agent, individually and as attorney-in-fact
for each Holder of Units, agrees that, from time to time, upon the written
request of the Company or the Collateral Agent (acting upon the written request
of the Company), the Purchase Contract Agent or such Holder shall execute and
deliver such further documents and do such other acts and things as may be
necessary, including as the Company or the Collateral Agent (acting upon the
written request of the Company) may reasonably request in order to maintain the
Pledge, and the perfection and priority thereof, and to confirm the rights of
the Collateral Agent hereunder. The Purchase Contract Agent shall have no
liability to any Holder for executing any documents or taking any such acts
requested by the Company or the Collateral Agent (acting upon the written
request of the Company) hereunder, except for liability for its own negligent
act, its own negligent failure to act, its own bad faith or its own willful
misconduct.

     (e)    The Collateral Agent shall not be deemed to have knowledge of any
event of default unless it has received notice thereof from the Company or the
Purchase Contract Agent.

     SECTION 6.2  Substitutions

     Whenever a Holder has the right to substitute Treasury Securities, Notes,
or Treasury Consideration, as the case may be, for Collateral held by the
Collateral Agent, such substitution shall not constitute a novation of the
security interest created hereby.

                                      -16-
<Page>

     SECTION 6.3  Tax Event Redemption

     Upon the occurrence of a Tax Event Redemption prior to the Share Purchase
Date or the earlier successful remarketing of the Notes pursuant to Section 5.4
of the Purchase Contract Agreement and the receipt of the Redemption Price of
the Pledged Notes by the Collateral Agent, the Collateral Agent will, at the
written direction of the Company, apply an amount, out of such Redemption Price,
equal to the aggregate Redemption Price with respect to the Pledged Notes to
purchase on behalf of the Holders of Normal Units the Tax Event Redemption
Treasury Consideration and promptly remit the remaining portion of such
Redemption Price, if any, to the Purchase Contract Agent for payment to the
Holders of Normal Units. The Collateral Agent shall transfer the Tax Event
Redemption Treasury Consideration to the Collateral Account to secure the
obligation of all Holders of Normal Units to purchase Common Shares of the
Company under the Purchase Contracts constituting a part of such Normal Units,
in substitution for the Pledged Notes. Thereafter the Collateral Agent shall
have such security interests, rights and obligations with respect to the Tax
Event Redemption Treasury Consideration as it had in respect of the Pledged
Notes as provided in Articles II, III, IV, V and VI, and any reference herein to
the Notes shall be deemed to be reference to such Tax Event Redemption Treasury
Consideration, and any reference herein to interest on the Notes shall be deemed
to be a reference to corresponding distributions on such Tax Event Redemption
Treasury Consideration. Upon the occurrence of a Tax Event Redemption, the
Collateral Agent shall be authorized to surrender the Notes in accordance with
the provisions of the Indenture.

     SECTION 6.4  Prepayment of Notes

     Upon the occurrence of a Prepayment Event prior to the Share Purchase
Date or the earlier successful remarketing of the Notes pursuant to Section
5.4 of the Purchase Contract Agreement and the receipt in full by the
Collateral Agent of the principal amount of and accrued interest, if any, on
the Pledged Notes, the Collateral Agent will, at the written direction of the
Company, purchase the Prepayment Treasury Consideration and promptly remit
the remaining portion, if any, of the amounts received in respect of the
principal and accrued interest on the Pledged Notes to the Purchase Contract
Agent for payment to the Holders of Normal Units. The Collateral Agent shall
transfer the Prepayment Treasury Consideration to the Collateral Account to
secure the obligation of all Holders of Normal Units to purchase Common
Shares of the Company under the Purchase Contracts constituting a part of
such Normal Units, in substitution for the Pledged Notes. Thereafter the
Collateral Agent shall have such security interests, rights and obligations
with respect to the Prepayment Treasury Consideration as it had in respect of
the Pledged Notes as provided in Articles II, III, IV, V and VI, and any
reference herein to the Notes shall be deemed to be reference to such
Prepayment Treasury Consideration, and any reference herein to interest on
the Notes shall be deemed to be a reference to corresponding distributions on
such Prepayment Treasury Consideration.

                                      -17-
<Page>

                                   ARTICLE VII

                    REPRESENTATIONS AND WARRANTIES; COVENANTS

     SECTION 7.1  Representations and Warranties of the Holders

     The Holders from time to time, acting through the Purchase Contract Agent
as their attorney-in-fact (it being understood that the Purchase Contract Agent
shall not be liable for any representation or warranty made by or on behalf of a
Holder), hereby represent and warrant to the Collateral Agent, which
representations and warranties shall be deemed repeated on each day a Holder
Transfers Collateral that:

     (a)    such Holder has the power to grant a security interest in and lien
on Collateral;

     (b)    such Holder is the sole beneficial owner of the Collateral and, in
the case of Collateral delivered in physical form, is the sole holder of such
Collateral and is the sole beneficial owner of, or has the right to Transfer,
the Collateral it Transfers to the Collateral Agent, free and clear of any
security interest, lien, encumbrance, call, liability to pay money or other
restriction other than the security interest and lien granted under Section 2.1;

     (c)    upon the Transfer of the Collateral to the Collateral Account, the
Collateral Agent, for the benefit of the Company, will have a valid and
perfected first priority security interest therein (assuming that any central
clearing operation or any Intermediary or other entity not within the control of
the Holder involved in the Transfer of the Collateral, including the Collateral
Agent, gives the notices and takes the action required of it hereunder and under
applicable law for perfection of that interest and assuming the establishment
and exercise of control pursuant to Section 2.2); and

     (d)    the execution and performance by the Holder of its obligations under
this Agreement will not result in the creation of any security interest, lien or
other encumbrance on the Collateral other than the security interest and lien
granted under Section 2.1 or violate any provision of any existing law or
regulation applicable to it or of any mortgage, charge, pledge, indenture,
contract or undertaking to which it is a party or which is binding on it or any
of its assets.

     SECTION 7.2  Representations and Warranties of the Collateral Agent,
                  Custodial Agent and Securities Intermediary

     The Collateral Agent, Custodial Agent and Securities Intermediary (each an
"Agent") hereby represents and warrants:

     (a)    The Collateral Agent, Custodial Agent and Securities Intermediary is
a trust company duly incorporated and validly existing under the laws of
Massachusetts;

                                      -18-
<Page>

     (b)    The execution, delivery and performance by the Collateral Agent, the
Custodial Agent and the Securities Intermediary of this Agreement have each been
duly authorized by all necessary corporate action on the part of each such
Agent; this Agreement has been duly executed and delivered by the Collateral
Agent, the Custodial Agent and the Securities Intermediary and constitutes a
valid and legally binding obligation of each of the Agents, enforceable against
such Agents in accordance with its terms, subject, as to enforcement, to
bankruptcy, insolvency, reorganization and other laws of general applicability
relating to or affecting creditors' rights and to general equity principles;

     (c)    The execution, delivery and performance by the Collateral Agent, the
Custodial Agent and the Securities Intermediary of this Agreement do not violate
or constitute a breach of the Articles of Incorporation or By-Laws of any of
such Agents; and

     (d)    No consent of any federal or state banking authority having
regulatory authority over the Agents in their individual capacity is required
for the execution and delivery of, or performance by the Agents of their
respective obligations under, this Agreement.

     SECTION 7.3  Covenants

     The Holders from time to time, acting through the Purchase Contract Agent
as their attorney-in-fact (it being understood that the Purchase Contract Agent
shall not be liable for any covenant made by or on behalf of a Holder), hereby
covenant to the Collateral Agent that for so long as the Collateral remains
subject to the Pledge:

     (a)    neither the Purchase Contract Agent nor such Holders will create or
purport to create or allow to subsist any mortgage, charge, lien, pledge or any
other security interest whatsoever over the Collateral or any part of it other
than pursuant to this Agreement; and

     (b)    neither the Purchase Contract Agent nor such Holders will sell or
otherwise dispose (or attempt to dispose) of the Collateral or any part of it
except for the beneficial interest therein, subject to the pledge hereunder,
transferred in connection with the Transfer of the Units.

                                  ARTICLE VIII

                              THE COLLATERAL AGENT

     SECTION 8.1  Appointment, Powers and Immunities

     (a)    The Collateral Agent shall act as agent for the Company hereunder
with such powers as are specifically vested in the Collateral Agent by the terms
of this

                                      -19-
<Page>

Agreement, together with such other powers as are reasonably incidental thereto.
Each of the Collateral Agent, the Custodial Agent and the Securities
Intermediary:

     (i)    shall have no duties or responsibilities except those expressly set
            forth in this Agreement and no implied covenants or obligations
            shall be inferred from this Agreement against any of them, nor shall
            any of them be bound by the provisions of any agreement by any party
            hereto beyond the specific terms hereof;

     (ii)   shall not be responsible for any recitals contained in this
            Agreement, or in any certificate or other document referred to or
            provided for in, or received by it under, this Agreement, the Units
            or the Purchase Contract Agreement, or for the value, validity,
            effectiveness, genuineness, enforceability or sufficiency of this
            Agreement (other than as against the Collateral Agent), the Units or
            the Purchase Contract Agreement or any other document referred to or
            provided for herein or therein or for any failure by the Company or
            any other Person (except the Collateral Agent, the Custodial Agent
            or the Securities Intermediary, as the case may be) to perform any
            of its obligations hereunder or thereunder or, except as expressly
            required hereby, for the existence, validity, perfection, priority
            or maintenance of any security interest created hereunder;

     (iii)  shall not be required to initiate or conduct any litigation or
            collection proceedings hereunder (except in the case of the
            Collateral Agent, pursuant to directions furnished under Section
            8.2, subject to Section 8.6);

     (iv)   shall not be responsible for any action taken or omitted to be taken
            by it hereunder or under any other document or instrument referred
            to or provided for herein or in connection herewith or therewith,
            except for its own negligence, bad faith or willful misconduct; and

     (v)    shall not be required to advise any party as to selling or
            retaining, or taking or refraining from taking any action with
            respect to, the Units or other property deposited hereunder.

Subject to the foregoing, during the term of this Agreement, the Collateral
Agent, in connection with the safekeeping and preservation of the Collateral
hereunder, shall use the same standard of care it applies for similar property
held for its own account.

     (b)    No provision of this Agreement shall require the Collateral Agent,
the Custodial Agent or the Securities Intermediary to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of
its duties hereunder. In no event shall the Collateral Agent, the Custodial
Agent or the Securities Intermediary be liable for any amount in excess of the
value of the Collateral or for any special, indirect, individual, consequential
damages or lost profits or loss of business, arising in connection with this
Agreement. Notwithstanding the foregoing, the Collateral Agent,

                                      -20-
<Page>

the Custodial Agent, the Purchase Contract Agent and Securities Intermediary,
each in its individual capacity, hereby waive any right of set-off, banker's
lien, liens or perfection rights as securities intermediary or any counterclaim
with respect to any of the Collateral. If the Company fails to pay the
Collateral Agent, the Custodial Agent and Securities Intermediary fees in
connection with this Agreement, the Collateral Agent, the Custodial Agent and
Securities Intermediary retains the right to set-off those fees from any funds
to be transferred to the Company.

     (c)    The Collateral Agent, Custodial Agent and Securities Intermediary
shall have no liability whatsoever for the action or inaction of any Clearing
Agency or any book-entry system thereof. In no event shall any Clearing Agency
or any book-entry system thereof be deemed an agent or subcustodian of the
Collateral Agent, Custodial Agent and Securities Intermediary.

     SECTION 8.2  Instructions of the Company.

     The Company shall have the right, by one or more instruments in writing
executed and delivered to the Collateral Agent, the Custodial Agent or the
Securities Intermediary, as the case may be, to direct the time, method and
place of conducting any proceeding for the realization of any right or remedy
available to the Collateral Agent, the Custodial Agent or the Securities
Intermediary, as the case may be, or of exercising any power conferred on the
Collateral Agent, the Custodial Agent or the Securities Intermediary, as the
case may be, or to direct the taking or refraining from taking of any action
authorized by this Agreement; provided that (i) such direction shall not
conflict with the provisions of any law or of this Agreement and (ii) the
Collateral Agent, the Custodial Agent and the Securities Intermediary shall each
receive indemnity reasonably satisfactory to it as provided herein. Nothing in
this Section 8.2 shall impair the right of the Collateral Agent in its
discretion to take any action or omit to take any action which it deems proper
and which is not inconsistent with such direction.

     SECTION 8.3  Reliance

     Each of the Securities Intermediary, the Custodial Agent and the Collateral
Agent shall be entitled conclusively to rely upon any certification, order,
judgment, opinion, notice or other communication (including, without limitation,
any thereof by telephone or facsimile) reasonably believed by it to be genuine
and correct and to have been signed or sent by or on behalf of the proper Person
or Persons (without being required to determine the correctness of any fact
stated therein), and upon advice and statements of legal counsel and other
experts selected by the Collateral Agent, the Custodial Agent or the Securities
Intermediary, as the case may be. As to any matters not expressly provided for
by this Agreement, the Collateral Agent, the Custodial Agent and the Securities
Intermediary shall in all cases be fully protected in acting, or in refraining
from acting, hereunder in accordance with instructions given by the Company in
accordance with this Agreement.

                                      -21-
<Page>

     SECTION 8.4  Rights in Other Capacities

     The Collateral Agent, the Custodial Agent and the Securities Intermediary
and their affiliates may (without having to account therefor to the Company)
accept deposits from, lend money to, make their investments in and generally
engage in any kind of banking, trust or other business with the Purchase
Contract Agent, any Holder of Units and any holder of Separate Notes (and any of
their respective subsidiaries or affiliates) as if it were not acting as the
Collateral Agent, the Custodial Agent or the Securities Intermediary, as the
case may be, and the Collateral Agent, the Custodial Agent and the Securities
Intermediary and their affiliates may accept fees and other consideration from
the Purchase Contract Agent, any Holder of Units or any holder of Separate Notes
without having to account for the same to the Company; provided that each of the
Securities Intermediary, the Custodial Agent and the Collateral Agent covenants
and agrees with the Company that it shall not accept, receive or permit there to
be created in favor of itself (and waives any right of set-off or banker's lien
with respect to) and shall take no affirmative action to permit there to be
created in favor of any other Person, any security interest, lien or other
encumbrance of any kind in or upon the Collateral and the Collateral shall not
be commingled with any other assets of any such Person.

     SECTION 8.5  Non-Reliance on Collateral Agent

     None of the Securities Intermediary, the Custodial Agent or the Collateral
Agent shall be required to keep itself informed as to the performance or
observance by the Purchase Contract Agent or any Holder of Units of this
Agreement, the Purchase Contract Agreement, the Units or any other document
referred to or provided for herein or therein or to inspect the properties or
books of the Purchase Contract Agent or any Holder of Units. The Collateral
Agent, the Custodial Agent and the Securities Intermediary shall not have any
duty or responsibility to provide the Company or the Remarketing Agent with any
credit or other information concerning the affairs, financial condition or
business of the Purchase Contract Agent, any Holder of Units or any holder of
Separate Notes (or any of their respective subsidiaries or affiliates) that may
come into the possession of the Collateral Agent, the Custodial Agent or the
Securities Intermediary or any of their respective affiliates.

     SECTION 8.6  Compensation and Indemnity

     The Company agrees:

     (a)    to pay each of the Collateral Agent, the Custodial Agent and the
Securities Intermediary from time to time such compensation as shall be agreed
in writing between the Company and the Collateral Agent, Custodial Agent or the
Securities Intermediary, as the case may be, for all services rendered by each
of them hereunder and

     (b)    to indemnify the Collateral Agent, the Custodial Agent and the
Securities Intermediary (which for purposes of this paragraph, in each case,
shall include its directors, officers, employees and agents) for, and to hold
each of them harmless from and

                                      -22-
<Page>

against, any loss, liability or reasonable out-of-pocket expense incurred
without negligence, willful misconduct or bad faith on its part, arising out of
or in connection with the acceptance or administration of its powers and duties
under this Agreement, including the reasonable out-of-pocket costs and expenses
(including reasonable fees and expenses of counsel) of defending itself against
any claim or liability in connection with the exercise or performance of such
powers and duties or collecting such amounts. The Collateral Agent, the
Custodial Agent and the Securities Intermediary shall each promptly notify the
Company of any third party claim which may give rise to the indemnity hereunder
and give the Company the opportunity to control the defense of such claim with
counsel reasonably satisfactory to the indemnified party and no such claim shall
be settled without the written consent of the Company, which consent shall not
be unreasonably withheld.

     SECTION 8.7  Failure to Act

     In the event of any ambiguity in the provisions of this Agreement or any
dispute between or conflicting claims by or among the parties hereto or any
other Person with respect to any funds or property deposited hereunder, the
Collateral Agent, Custodial Agent and the Securities Intermediary shall be
entitled, after prompt notice to the Company and the Purchase Contract Agent, at
its sole option, to refuse to comply with any and all claims, demands or
instructions with respect to such property or funds so long as such dispute or
conflict shall continue, and neither the Collateral Agent, Custodial Agent nor
the Securities Intermediary shall be or become liable in any way to any of the
parties hereto for its failure or refusal to comply with such conflicting
claims, demands or instructions. The Collateral Agent, Custodial Agent and the
Securities Intermediary shall be entitled to refuse to act until either (i) such
conflicting or adverse claims or demands shall have been finally determined by a
court of competent jurisdiction or settled by agreement between the conflicting
parties as evidenced in a writing, reasonably satisfactory to the Collateral
Agent, Custodial Agent or the Securities Intermediary, as the case may be, or
(ii) the Collateral Agent, the Custodial Agent or the Securities Intermediary,
as the case may be, shall have received security or an indemnity reasonably
satisfactory to the Collateral Agent, Custodial Agent or the Securities
Intermediary, as the case may be, sufficient to save the Collateral Agent,
Custodial Agent or the Securities Intermediary, as the case may be, harmless
from and against any and all loss, liability or reasonable out-of-pocket expense
which the Collateral Agent, Custodial Agent or the Securities Intermediary, as
the case may be, may incur by reason of its acting without bad faith, willful
misconduct or negligence. The Collateral Agent, Custodial Agent or the
Securities Intermediary may in addition elect to commence an interpleader action
or seek other judicial relief or orders as the Collateral Agent, Custodial Agent
or the Securities Intermediary, as the case may be, may deem necessary.
Notwithstanding anything contained herein to the contrary, neither the
Collateral Agent, Custodial Agent nor the Securities Intermediary shall be
required to take any action that is in its reasonable opinion contrary to law or
to the terms of this Agreement, or which would in its reasonable opinion subject
it or any of its officers, employees or directors to liability.

                                      -23-
<Page>

     SECTION 8.8  Resignation

     Subject to the appointment and acceptance of a successor Collateral Agent,
Custodial Agent or Securities Intermediary, as provided below, (a) the
Collateral Agent, Custodial Agent and the Securities Intermediary may resign at
any time by giving notice thereof to the Company and the Purchase Contract Agent
as attorney-in-fact for the Holders of Units, (b) the Collateral Agent,
Custodial Agent and the Securities Intermediary may be removed at any time by
the Company and (c) if the Collateral Agent, Custodial Agent or the Securities
Intermediary fails to perform any of its material obligations hereunder in any
material respect for a period of not less than 20 days after receiving written
notice of such failure by the Purchase Contract Agent and such failure shall be
continuing, the Collateral Agent, Custodial Agent or the Securities Intermediary
may be removed by the Purchase Contract Agent. The Purchase Contract Agent shall
promptly notify the Company of any removal of the Collateral Agent, the
Custodial Agent or the Securities Intermediary pursuant to clause (c) of the
immediately preceding sentence. Upon any such resignation or removal, the
Company shall have the right to appoint a successor Collateral Agent, Custodial
Agent or Securities Intermediary, as the case may be. If no successor Collateral
Agent, Custodial Agent or Securities Intermediary, as the case may be, shall
have been so appointed and shall have accepted such appointment within 30 days
after the retiring Collateral Agent's, Custodial Agent's or Securities
Intermediary's giving of notice of resignation or such removal, then the
retiring Collateral Agent, Custodial Agent or Securities Intermediary, as the
case may be, may at the Company's expense petition any court of competent
jurisdiction for the appointment of a successor Collateral Agent, Custodial
Agent or Securities Intermediary, as the case may be. Upon removal of the
Collateral Agent, Custodial Agent or Securities Intermediary, no fees paid to
the retiring Collateral Agent, Custodial Agent or Securities Intermediary
pursuant to Section 8.6(a) of this Agreement shall be refunded. Each of the
Collateral Agent, Custodial Agent and the Securities Intermediary shall be a
bank which has an office in New York, New York with a combined capital and
surplus of at least $50,000,000. Upon the acceptance of any appointment as
Collateral Agent, Custodial Agent or Securities Intermediary, as the case may
be, hereunder by a successor Collateral Agent, Custodial Agent or Securities
Intermediary, as the case may be, such successor shall thereupon succeed to and
become vested with all the rights, powers, privileges and duties of the retiring
Collateral Agent, Custodial Agent or Securities Intermediary, as the case may
be, and the retiring Collateral Agent, Custodial Agent or Securities
Intermediary, as the case may be, shall take all appropriate action to transfer
any money and property held by it hereunder (including the Collateral) to such
successor. The retiring Collateral Agent, Custodial Agent or Securities
Intermediary shall, upon such succession, be discharged from its duties and
obligations as Collateral Agent, Custodial Agent or Securities Intermediary
hereunder. After any retiring Collateral Agent's, Custodial Agent's or
Securities Intermediary's resignation hereunder as Collateral Agent, Custodial
Agent or Securities Intermediary, the provisions of this Section 8.8 shall
continue in effect for its benefit in respect of any actions taken or omitted to
be taken by it while it was acting as the Collateral Agent, Custodial Agent or
Securities Intermediary. Any resignation or removal of the Collateral Agent
hereunder shall be deemed for all purposes

                                      -24-
<Page>

of this Agreement as the simultaneous resignation or removal of the Custodial
Agent and the Securities Intermediary hereunder.

     Any corporation into which the Collateral Agent, the Custodial Agent or the
Securities Intermediary, in its individual capacity, may be merged or converted
or with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which the Collateral Agent in its
individual capacity shall be a party, or any corporation to which substantially
all the corporate trust business of the Collateral Agent in its individual
capacity may be transferred, shall be the Collateral Agent, the Custodial Agent,
or the Securities Intermediary, as the case may be, respectively, under this
Agreement without further act.

     SECTION 8.9  Right to Appoint Agent or Advisor

     The Collateral Agent shall have the right to appoint agents or advisors in
connection with any of its duties hereunder, and the Collateral Agent shall not
be liable for any action taken or omitted by, or in reliance upon the advice of,
such agents or advisors selected in good faith. The appointment of agents (other
than legal counsel) pursuant to this Section 8.9 shall be subject to prior
consent of the Company, which consent shall not be unreasonably withheld.

     SECTION 8.10 Survival

     The provisions of this Article VIII shall survive termination of this
Agreement and the resignation or removal of the Collateral Agent, the Custodial
Agent or the Securities Intermediary.

     SECTION 8.11 Exculpation

     Anything in this Agreement to the contrary notwithstanding, in no event
shall any of the Collateral Agent, the Custodial Agent or the Securities
Intermediary or their officers, employees or agents be liable under this
Agreement to any third party for indirect, special, punitive or consequential
loss or damage of any kind whatsoever, including lost profits, whether or not
the likelihood of such loss or damage was known to the Collateral Agent, the
Custodial Agent or the Securities Intermediary, or any of them, incurred without
any act or deed that is found to be attributable to gross negligence, bad faith
or willful misconduct on the part of the Collateral Agent, the Custodial Agent
or the Securities Intermediary.

                                      -25-
<Page>

                                   ARTICLE IX

                                    AMENDMENT

     SECTION 9.1  Amendment Without Consent of Holders

     Without the consent of any Holders or the holders of any Separate Notes,
the Company, the Collateral Agent, the Custodial Agent, the Securities
Intermediary and the Purchase Contract Agent, at any time and from time to time,
may amend this Agreement, in form satisfactory to the Company, the Collateral
Agent, the Custodial Agent, the Securities Intermediary and the Purchase
Contract Agent, for any of the following purposes:

     (i)    to evidence the succession of another Person to the Company, and the
            assumption by any such successor of the covenants of the Company; or

     (ii)   to add to the covenants of the Company for the benefit of the
            Holders, or to surrender any right or power herein conferred upon
            the Company so long as such covenants or such surrender do not
            adversely affect the validity, perfection or priority of the
            security interests granted or created hereunder; or

     (iii)  to evidence and provide for the acceptance of appointment hereunder
            by a successor Collateral Agent, Custodial Agent, Securities
            Intermediary or Purchase Contract Agent; or

     (iv)   to cure any ambiguity, to correct or supplement any provisions
            herein which may be inconsistent with any other such provisions
            herein, or to make any other provisions with respect to such matters
            or questions arising under this Agreement, provided such action
            shall not adversely affect the interests of the Holders.

     SECTION 9.2  Amendment with Consent of Holders

     With the consent of the Holders of not less than a majority of the Purchase
Contracts at the time outstanding, by Act of said Holders delivered to the
Company, the Purchase Contract Agent or the Collateral Agent, as the case may
be, the Company, when duly authorized, the Purchase Contract Agent, the
Collateral Agent, the Custodial Agent and the Securities Intermediary may amend
this Agreement for the purpose of modifying in any manner the provisions of this
Agreement or the rights of the Holders in respect of the Units; provided,
however, that no such supplemental agreement shall, without the consent of the
Holder of each Outstanding Unit adversely affected thereby,

     (i)    change the amount or type of Collateral underlying a Unit (except
            for the rights of holders of Normal Units to substitute the Treasury
            Securities for the Pledged Notes or the Pledged Treasury
            Consideration, as the case may

                                      -26-
<Page>

            be, or the rights of Holders of Stripped Units to substitute Notes
            or the appropriate Treasury Consideration, as applicable, for the
            Pledged Treasury Securities), impair the right of the Holder of any
            Unit to receive distributions on the underlying Collateral or
            otherwise adversely affect the Holder's rights in or to such
            Collateral; or

     (ii)   otherwise effect any action that would require the consent of the
            Holder of each Outstanding Unit affected thereby pursuant to the
            Purchase Contract Agreement if such action were effected by an
            agreement supplemental thereto; or

     (iii)  reduce the percentage of Purchase Contracts the consent of whose
            Holders is required for any such amendment.

It shall not be necessary for any Act of Holders under this Section to approve
the particular form of any proposed amendment, but it shall be sufficient if
such Act shall approve the substance thereof.

     SECTION 9.3  Execution of Amendments

     In executing any amendment permitted by this Article IX, the Collateral
Agent, the Custodial Agent, the Securities Intermediary and the Purchase
Contract Agent shall be entitled to receive and (subject to Section 8.1 hereof,
with respect to the Collateral Agent, and Section 7.1 of the Purchase Contract
Agreement, with respect to the Purchase Contract Agent) shall be fully protected
in relying upon, an Opinion of Counsel stating that the execution of such
amendment is authorized or permitted by this Agreement and that all conditions
precedent, if any, to the execution and delivery of such amendment have been
satisfied and, in the case of an amendment pursuant to Section 9.1, that such
amendment does not adversely affect the validity, perfection or priority of the
security interests granted or created hereunder.

     SECTION 9.4  Effect of Amendments

     Upon the execution of any amendment under this Article IX, this Agreement
shall be modified in accordance therewith, and such amendment shall form a part
of this Agreement for all purposes; and every Holder of Certificates theretofore
or thereafter authenticated, executed on behalf of the Holders and delivered
under the Purchase Contract Agreement shall be bound thereby.

     SECTION 9.5  Reference to Amendments

     Certificates authenticated, executed on behalf of the Holders and delivered
after the execution of any amendment pursuant to this Article IX may, and shall
if required by the Collateral Agent or the Purchase Contract Agent, bear a
notation in form approved by the Purchase Contract Agent as to any matter
provided for in such amendment. If the Company shall so determine, new
Certificates so modified as to conform, in the opinion

                                      -27-
<Page>

of the Purchase Contract Agent and the Company, to any such amendment may be
prepared and executed by the Company and authenticated, executed on behalf of
the Holders and delivered by the Purchase Contract Agent in accordance with the
Purchase Contract Agreement in exchange for outstanding Certificates.

                                    ARTICLE X

                                  MISCELLANEOUS

     SECTION 10.1 No Waiver

     No failure on the part of any party hereto or any of its agents to
exercise, and no course of dealing with respect to, and no delay in exercising,
any right, power or remedy hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise by any party hereto or any of its agents of
any right, power or remedy hereunder preclude any other or further exercise
thereof or the exercise of any other right, power or remedy. The remedies herein
are cumulative and are not exclusive of any remedies provided by law.

     SECTION 10.2 GOVERNING LAW

     THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES
THEREOF. Without limiting the foregoing, the above choice of law is expressly
agreed to by the Securities Intermediary, the Collateral Agent, the Custodial
Agent and the Holders from time to time acting through the Purchase Contract
Agent, as their attorney-in-fact, in connection with the establishment and
maintenance of the Collateral Account, which law, for purposes of the Code,
shall be deemed to be the law governing all Security Entitlements related
thereto. In addition, such parties agree that, for purposes of the Code, New
York shall be the Securities Intermediary's jurisdiction. The Company, the
Collateral Agent and the Holders from time to time of the Units, acting through
the Purchase Contract Agent as their attorney-in-fact, hereby submit to the
nonexclusive jurisdiction of the United States District Court for the Southern
District of New York and of any New York state court sitting in the Borough of
Manhattan in New York City for the purposes of all legal proceedings arising out
of or relating to this Agreement or the transactions contemplated hereby. The
Company, the Collateral Agent and the Holders from time to time of the Units,
acting through the Purchase Contract Agent as their attorney-in-fact,
irrevocably waive, to the fullest extent permitted by applicable law, any
objection which they may now or hereafter have to the laying of the venue of any
such proceeding brought in such a court and any claim that any such proceeding
brought in such a court has been brought in an inconvenient forum.

                                      -28-
<Page>

     SECTION 10.3 Notices

     Unless otherwise stated herein, all notices, requests, consents and other
communications provided for herein (including, without limitation, any
modifications of, or waivers or consents under, this Agreement) shall be given
or made in writing (including, without limitation, by telecopy) delivered to the
intended recipient at the "Address for Notices" specified below its name on the
signature pages hereof or, as to any party, at such other address as shall be
designated by such party in a notice to the other parties. Except as otherwise
provided in this Agreement, all such communications shall be deemed to have been
duly given when personally delivered or, in the case of a mailed notice or
notice transmitted by telecopier, upon receipt, in each case given or addressed
as aforesaid.

     SECTION 10.4 Successors and Assigns

     This Agreement shall be binding upon and inure to the benefit of the
respective successors and assigns of the Company, the Collateral Agent, the
Custodial Agent, the Securities Intermediary and the Purchase Contract Agent,
and the Holders from time to time of the Units, by their acceptance of the same,
shall be deemed to have agreed to be bound by the provisions hereof and to have
ratified the agreements of, and the grant of the Pledge hereunder by, the
Purchase Contract Agent.

     SECTION 10.5 Counterparts

     This Agreement may be executed in any number of counterparts, all of which
taken together shall constitute one and the same instrument, and any of the
parties hereto may execute this Agreement by signing any such counterpart.

     SECTION 10.6 Severability

     If any provision hereof is invalid and unenforceable in any jurisdiction,
then, to the fullest extent permitted by law, (i) the other provisions hereof
shall remain in full force and effect in such jurisdiction and shall be
liberally construed in order to carry out the intentions of the parties hereto
as nearly as may be possible and (ii) the invalidity or unenforceability of any
provision hereof in any jurisdiction shall not affect the validity or
enforceability of such provision in any other jurisdiction.

     SECTION 10.7 Expenses, Etc.

     The Company agrees to reimburse the Collateral Agent, the Securities
Intermediary and the Custodial Agent for:

     (a)    all reasonable out-of-pocket costs and all reasonable expenses of
the Collateral Agent, the Custodial Agent and the Securities Intermediary
(including, without limitation, the reasonable fees and expenses of counsel to
the Collateral Agent, the Custodial Agent and the Securities Intermediary), in
connection with (i) the negotiation,

                                      -29-
<Page>

preparation, execution and delivery or performance of this Agreement and (ii)
any modification, supplement or waiver of any of the terms of this Agreement;

     (b)    all reasonable costs and expenses of the Collateral Agent (which for
purposes of this paragraph shall include its directors, officers, employees and
agents) (including, without limitation, reasonable fees and expenses of counsel)
in connection with (i) any enforcement or proceedings resulting or incurred in
connection with causing any Holder of Units to satisfy its obligations under the
Purchase Contracts forming a part of the Units and (ii) the enforcement of this
Section 10.7; and

     (c)    all transfer, stamp, documentary or other similar taxes, assessments
or charges levied by any governmental or revenue authority in respect of this
Agreement or any other document referred to herein and all costs, expenses,
taxes, assessments and other charges incurred in connection with any filing,
registration, recording or perfection of any security interest contemplated
hereby.

     SECTION 10.8 Security Interest Absolute

     All rights of the Collateral Agent and security interests hereunder, and
all obligations of the Holders from time to time hereunder, shall be absolute
and unconditional irrespective of:

     (a)    any lack of validity or enforceability of any provision of the
Purchase Contracts or the Units or any other agreement or instrument relating
thereto;

     (b)    any change in the time, manner or place of payment of, or any other
term of, or any increase in the amount of, all or any of the obligations of
Holders of Units under the related Purchase Contracts, or any other amendment or
waiver of any term of, or any consent to any departure from any requirement of,
the Purchase Contract Agreement or any Purchase Contract or any other agreement
or instrument relating thereto; or

     (c)    any other circumstance which might otherwise constitute a defense
available to, or discharge of, a borrower, a guarantor or a pledgor.

     SECTION 10.9 Waiver of Jury Trial

     EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE
UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND
THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

                                      -30-
<Page>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.

                          PLATINUM UNDERWRITERS HOLDINGS, LTD.

                          By:
                             ---------------------------------------------
                             Name:
                             Title:

                          Address for Notices:

                          Platinum Underwriters Holdings, Ltd.
                          *
                          *
                          Attention: *
                          Telecopy: *
                          Telephone: *

                          JPMorgan Chase Bank,
                          as Purchase Contract Agent and
                          as attorney-in-fact of the Holders
                          from time to time of the Units

                          By:
                             ---------------------------------------------
                             Name:
                             Title:

                          Address for Notices:

                          450 West 33rd Street, 15th Floor
                          New York, New York 10001
                          Attention: Institutional Trust Services
                          Telecopy: (212) 946-8154
                          Telephone: *

                                      -31-
<Page>

                          State Street Bank and Trust Company,
                          as Collateral Agent, Custodial Agent
                          and Securities Intermediary

                          By:
                             ---------------------------------------------
                             Name:
                             Title:

                          Address for Notices:

                          c/o State Street Bank and Trust Company of Connecticut
                          Goodwin Square
                          225 Asylum Street
                          Hartford, CT 06103
                          Attention: Corporate Trust Administration
                          Telecopy:  860-244-1889
                          Telephone:  860-244-1813

                                      -32-
<Page>

                                    EXHIBIT A

                       INSTRUCTION FROM PURCHASE CONTRACT
                            AGENT TO COLLATERAL AGENT

State Street Bank and Trust Company
c/o State Street Bank and Trust Company of Connecticut
Goodwin Square
225 Asylum Street
Hartford, CT 06103

Attention: Corporate Trust Administration

               Re: EQUITY SECURITY UNITS OF PLATINUM UNDERWRITERS
                   HOLDINGS, LTD. (THE "COMPANY")

     We hereby notify you in accordance with Section [4.1] [4.2] of the Pledge
Agreement, dated as of *, 2002, (the "Pledge Agreement") among the Company,
yourselves, as Collateral Agent, Custodial Agent and Securities Intermediary and
ourselves, as Purchase Contract Agent and as attorney-in-fact for the holders of
[Normal Units] [Stripped Units] from time to time, that the holder of Units
listed below (the "Holder") has elected to substitute [$_____ aggregate
principal amount of Treasury Securities (CUSIP No. _____)] [$_______ aggregate
principal amount of Notes or $_____ aggregate principal amount of Treasury
Consideration (CUSIP No. _____)] in exchange for the related [Pledged Notes or
Pledged Treasury Consideration] [Pledged Treasury Securities] held by you in
accordance with the Pledge Agreement and has delivered to us a notice stating
that the Holder has Transferred [Treasury Securities] [Notes or the Treasury
Consideration] to you, as Collateral Agent. We hereby instruct you, upon receipt
of such [Pledged Treasury Securities] [Pledged Notes or Pledged Treasury
Consideration], to release the [Notes or the Treasury Consideration] [Treasury
Securities] related to such [Normal Units] [Stripped Units] to us in accordance
with the Holder's instructions. Capitalized terms used herein but not defined
shall have the meaning set forth in the Pledge Agreement.

Date:
      ---------------

                             JPMORGAN CHASE BANK,
                             as Purchase Contract Agent

                             By:
                                 -----------------------
                                 Name:
                                 Title:

                                       A-1
<Page>

Please print name and address of Registered Holder electing to substitute
[Treasury Securities] [Notes or Treasury Consideration] for the [Pledged Notes
or the Pledged Treasury Consideration] [Pledged Treasury Securities]:

Name:                                       Social Security or other Taxpayer
                                            Identification Number, if any:

Address:

                                       A-2
<Page>

                                    EXHIBIT B

                     INSTRUCTION TO PURCHASE CONTRACT AGENT

JPMorgan Chase Bank
  as Purchase Contract Agent
450 West 33rd Street, 15th Floor
New York, New York 10001

Attention: Institutional Trust Services

                  Re:  EQUITY SECURITY UNITS OF PLATINUM UNDERWRITERS
                       HOLDINGS, LTD. (THE "COMPANY")

     The undersigned Holder hereby notifies you that it has delivered to State
Street Bank and Trust Company, as Collateral Agent, [$_______ aggregate
principal amount of Treasury Securities (CUSIP No. _____)] [$_______ aggregate
principal amount of Notes or $_____ principal amount of Treasury Consideration
(CUSIP No. _____)] in exchange for the related [Pledged Notes or Pledged
Treasury Consideration] [Pledged Treasury Securities] held by the Collateral
Agent, in accordance with Section 4.1 of the Pledge Agreement, dated as of *,
2002 (the "Pledge Agreement"), between you, the Company and the Collateral
Agent. The undersigned Holder hereby instructs you to instruct the Collateral
Agent to release to you on behalf of the undersigned Holder the [Pledged Notes
or the Pledged Treasury Consideration] [Pledged Treasury Securities] related to
such [Normal Units] [Stripped Units]. Capitalized terms used herein but not
defined shall have the meaning set forth in the Pledge Agreement.

Date:                            Signature:
     ----------------                      ------------------------------------

                                 Signature Guarantee:
                                                      -------------------------

Please print name and address of Registered Holder:

Name:                                       Social Security or other Taxpayer
                                            Identification Number, if any:

Address:

                                       B-1
<Page>

                                    EXHIBIT C

              INSTRUCTION TO CUSTODIAL AGENT REGARDING REMARKETING

State Street Bank and Trust Company
c/o State Street Bank and Trust Company of Connecticut
Goodwin Square
225 Asylum Street
Hartford, CT 06103

Attention: Corporate Trust Administration

                  Re:  NOTES OF PLATINUM UNDERWRITERS FINANCE, INC.

     The undersigned hereby notifies you in accordance with Section 4.5(d) of
the Pledge Agreement, dated as of *, 2002 (the "Pledge Agreement"), among
Platinum Underwriters Holdings, Ltd., yourselves, as Collateral Agent,
Securities Intermediary and Custodial Agent, and JPMorgan Chase Bank, as
Purchase Contract Agent and as attorney-in-fact for the Holders of Normal Units
and Stripped Units from time to time, that the undersigned elects to deliver on
the fourth Business Day immediately preceding the first day of the Remarketing
Period commencing on __________, 2005 $__________ aggregate principal amount of
Notes for delivery to the Remarketing Agent for remarketing pursuant to Section
4.5(d) of the Pledge Agreement. The undersigned will, upon request of the
Remarketing Agent, execute and deliver any additional documents deemed by the
Remarketing Agent or by the Company to be necessary or desirable to complete the
sale, assignment and transfer of the Notes tendered hereby.

     The undersigned hereby instructs you, upon receipt of the proceeds of such
remarketing from the Remarketing Agent, net of amounts payable to the
Remarketing Agent in accordance with the Pledge Agreement, to deliver such
proceeds to the undersigned in accordance with the instructions indicated herein
under "A. Payment Instructions." The undersigned hereby instructs you, in the
event of [a/the Last] Failed Remarketing upon receipt of the Notes tendered
herewith from the Remarketing Agent, to deliver such Notes to the person(s) and
the address(es) indicated herein under "B. Delivery Instructions."

     With this notice, the undersigned hereby (i) represents and warrants that
the undersigned has full power and authority to tender, sell, assign and
transfer the Notes tendered hereby and that the undersigned is the record owner
of any Notes tendered herewith in physical form or a participant in The
Depository Trust Company ("DTC") and the beneficial owner of any Notes tendered
herewith by book-entry transfer to your account at DTC and (ii) agrees to be
bound by the terms and conditions of Section 4.5(d) of the Pledge Agreement.
Capitalized terms used herein but not defined shall have the meaning set forth
in the Pledge Agreement.

                                       C-1
<Page>

Date:
      ---------------
                                            Signature:
                                                      --------------------------

                                            Signature Guarantee:

Name:
            ----------------------------------------
            (Please Print)

Address:
            ----------------------------------------
            (Please Print)

Country:

Zip Code:

Telecopy (include country code if outside U.S.):

Telephone (include country code if outside U.S.):

(Tax Identification or Social Security Number):

A.  PAYMENT INSTRUCTIONS

Proceeds of the remarketing should be paid by check in the name of the person(s)
set forth below and mailed to the address set forth below.

Name(s):
            ----------------------------------------
            (Please Print)

Address:
            ----------------------------------------
            (Please Print)

Zip Code:

Country:

Telecopy (include country code if outside U.S.):

Telephone (include country code if outside U.S.):

(Tax Identification or Social Security Number):

                                       C-2
<Page>

B.  DELIVERY INSTRUCTIONS

In the event of [a/the Last] Failed Remarketing, Notes which are in physical
form should be delivered to the person(s) set forth below and mailed to the
address set forth below.

Name(s):
            ----------------------------------------
            (Please Print)

Address:
            ----------------------------------------
            (Please Print)

Zip Code:

Country:

Telecopy (include country code if outside U.S.):

Telephone (include country code if outside U.S.):

(Tax Identification or Social Security Number):

In the event of [a/the Last] Failed Remarketing, Notes which are in book-entry
form should be credited to the account at The Depository Trust Company set forth
below.

Name of Account Party:                                      DTC Account Number:

                                       C-3
<Page>

                                    EXHIBIT D

                    INSTRUCTION TO CUSTODIAL AGENT REGARDING
                           WITHDRAWAL FROM REMARKETING

State Street Bank and Trust Company
c/o State Street Bank and Trust Company of Connecticut
Goodwin Square
225 Asylum Street
Hartford, CT 06103

Attention: Corporate Trust Administration

                  Re: NOTES OF PLATINUM UNDERWRITERS FINANCE, INC.

     The undersigned hereby notifies you in accordance with Section 4.5(d) of
the Pledge Agreement, dated as of *, 2002 (the "Pledge Agreement"), among
Platinum Underwriters Holdings, Ltd., yourselves, as Collateral Agent,
Securities Intermediary and Custodial Agent, and JPMorgan Chase Bank, as
Purchase Contract Agent and as attorney-in-fact for the Holders of Normal Units
and Stripped Units from time to time, that the undersigned elects to withdraw
the $_____ aggregate principal amount of Notes delivered to the Custodial Agent
on ___________, 2005 for remarketing pursuant to Section 4.5(d) of the Pledge
Agreement. The undersigned hereby instructs you to return such Notes to the
undersigned in accordance with the undersigned's instructions. With this notice,
the undersigned hereby agrees to be bound by the terms and conditions of Section
4.5(d) of the Pledge Agreement. Capitalized terms used herein but not defined
shall have the meaning set forth in the Pledge Agreement.

Date:
      ---------------
                                            Signature:
                                                      -------------------------

                                            Signature Guarantee:

Name(s):
            ----------------------------------------
            (Please Print)

Address:
            ----------------------------------------
            (Please Print)

Zip Code:

Country:

Telecopy (include country code if outside U.S.):

Telephone (include country code if outside U.S.):

                                       D-1
<Page>

(Tax Identification or Social Security Number):

A.  DELIVERY INSTRUCTIONS

In the event of [a/the Last] Failed Remarketing, Notes which are in physical
form should be delivered to the person(s) set forth below and mailed to the
address set forth below.

Name(s):
            ----------------------------------------
            (Please Print)

Address:
            ----------------------------------------
            (Please Print)

Zip Code:

Country:

Telecopy (include country code if outside U.S.):

Telephone (include country code if outside U.S.):

(Tax Identification or Social Security Number):

In the event of [a/the Last] Failed Remarketing, Notes which are in book-entry
form should be credited to the account at The Depository Trust Company set forth
below.

Name of Account Party:                                       DTC Account Number:

                                       D-2

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