FORM OF OPTION AGREEMENT
Published on February 27, 2006
OPTION GRANT NOTICE AND AGREEMENT RenaissanceRe Holdings, Ltd. (the "Company"), pursuant to its Amended and Restated Non-Employee Director Stock Plan, as amended and restated effective June 1, 2002 (the "Plan"), hereby grants to the Holder options (the "Options") to purchase the number of Shares set forth below. The Options are subject to all of the terms and conditions set forth herein, as well as all of the terms and conditions of the Plan, all of which are incorporated herein in their entirety. Capitalized terms not otherwise defined herein shall have the same meaning as set forth in the Plan. In the event of a conflict or inconsistency between the terms and provisions of the Plan and the provisions of this Grant Notice and Agreement (this "Grant Notice"), the Plan shall govern and control. HOLDER: ______________ DATE OF GRANT: ______________ NUMBER OF SHARES UNDERLYING THE OPTIONS: ______________ EXERCISE PRICE PER SHARE $_____________ EXPIRATION DATE: ______________ VESTING SCHEDULE: Subject to the Holder's continued membership on the Board, the Options shall vest and become exercisable as to one-third (1/3) of the Shares on each of the first, second and third anniversaries of the Date of Grant. TERMINATION OF MEMBERSHIP: In the event of a termination of the Holder's membership on the Board (i) by reason of the death or permanent disability of the Holder, or (ii) if the Holder is requested, by the Board, to resign Holder's membership on the Board for any reason other than for cause, including without limitation because of Holder's resignation in conjunction with guidelines or policies of the Board with respect to retirement age, all Options which have not vested as of the date of such termination shall become immediately vested. In the event of a termination of the Holder's membership on the Board (i) for cause, or (ii) by the Holder on his or her own accord, all Options which have not vested as of the date of such termination shall be forfeited as of such date. The Holder shall have a period of up to 90 days within which to exercise any Options which were vested as of the date of termination. Any Options that are not exercised within the permissible exercise periods shall lapse and be cancelled to the extent not so exercised ADDITIONAL TERMS: Options shall be subject to the following additional terms: o Each Share purchased through the exercise of Options shall be paid for in full at the time of exercise (i) in cash or cash equivalents, (ii) by tendering previously owned Shares with a Fair Market Value equal to the exercise price, (iii) pursuant to brokerage arrangements approved by the Board providing for simultaneous exercise of Options and sale of Shares, or (iv) by any combination of (i) through (iii) above. o As promptly as practical after the Holder's Options are exercised and fully payment of such purchase price and any required income tax withholding amount is received, the Company shall issue or transfer to the Holder the number of Shares with respect to which Options have been so exercised, and shall cause the Shares to be registered in the Holder's name. o The Company shall have the right with respect to tax withholding in accordance with Section 8 of the Plan, the terms of which are incorporated herein by reference and made a part hereof. o The Options granted hereunder are not intended to be incentive stock options within the meaning of Section 422 of the Code. o This Grant Notice does not confer upon the Holder any right to continue to serve as a director of the Company. o This Grant Notice shall be construed and interpreted in accordance with the laws of Bermuda, without regard to the principles of conflicts of law thereof. [Signatures to appear on the following page.] THE UNDERSIGNED HOLDER ACKNOWLEDGES RECEIPT OF THE PLAN, AND, AS AN EXPRESS CONDITION TO THE GRANT OF OPTIONS UNDER THIS GRANT NOTICE, AGREES TO BE BOUND BY THE TERMS OF BOTH THE GRANT NOTICE AND THE PLAN. RENAISSANCERE HOLDINGS LTD. HOLDER By: ---------------------------------- ---------------------------------- Signature Signature Title: Date: ------------------------------- ---------------------------- Date: --------------------------------