Document:

Exhibit 10.11.1

 

ARCH CAPITAL GROUP LTD.

Share Appreciation Right Agreement

 

AGREEMENT, made and entered into this         
day of                       ,
2007, by and between Arch Capital Group Ltd. (the “Company”), a Bermuda company,
and                           
(the “SAR Holder”).

 

WHEREAS, the SAR Holder has been granted the following award under the
Company’s 2007 Long Term Incentive and Share Award Plan (the “Plan”);

 

NOW, THEREFORE, in consideration of the premises and
mutual covenants contained herein, and for other good and valuable
consideration, the Company and the SAR Holder agree as follows:

 

(a)                                  Grant.  Pursuant to the provisions of the Plan, the
terms of which are incorporated herein by reference, the Company hereby grants
to the SAR Holder a Share Appreciation Right (the “SAR”) with respect to                       
Shares.  The SAR represents a right to be
paid, upon exercise of the SAR, an amount measured by (x) the difference
between the Fair Market Value per Share on the date of exercise and the
exercise price per Share of the SAR, multiplied by (y) the number of Shares
with respect to which the SAR is exercised, with such amount to be paid in the
form of Shares valued at their Fair Market Value on the date of exercise.  The SAR is granted as of                         
      , 2007 (the “Date of Grant”), and such
grant is subject to the terms and conditions herein and the terms and
conditions of the Plan.  In the event
there is any conflict between the terms of the Plan and this Agreement, the
terms of the Plan shall control. 
Capitalized terms used herein but not defined shall have the meanings
given to them in the Plan.

 

(b)                                 Exercise
Price.  The exercise price of the SAR
shall be equal to $          
per Share.

 

(c)                                  Status
of Shares.  Upon issue, the shares received
upon exercise of the SAR shall rank equally in all respects with the other
Shares.

 

(d)                                 Term
of SAR.  The SAR may be exercised
only during the period (the “SAR Period”) set forth in paragraph (f) below
and shall remain exercisable until the tenth anniversary of the Date of
Grant.  Thereafter, the SAR Holder shall
cease to have any rights in respect thereof. 
The right to exercise the SAR shall be subject to sooner termination as
provided in paragraph (j) below.

 

(e)                                  No
Rights of Shareholder.  The SAR
Holder shall not, by virtue hereof, be entitled to any rights of a shareholder
in the Company, either at law or in equity.

 

(f)                                    Exercisability.  Except as otherwise set forth in paragraph (j) below,
the SAR shall become exercisable  in three equal
annual installments on the first, second and third anniversaries of the Date of
Grant, in each case subject to paragraph (j) below.  Subject to paragraph (j)

 

 

below, the SAR may be exercised at any time or from
time to time during the SAR Period in regard to all or any portion of the SAR
which is then exercisable, as may be adjusted pursuant to paragraph (g) below.

 

(g)                                 Adjustments
for Recapitalization and Dividends. 
In the event that, prior to the expiration of the SAR, any dividend in Shares,
recapitalization, Share split, reverse split, reorganization, merger,
consolidation, spin-off, combination, repurchase, or share exchange, or other
such change affects the Shares such that they are increased or decreased or
changed into or exchanged for a different number or kind of shares, other
securities of the Company or of another corporation or other consideration,
then in order to maintain the proportionate interest of the SAR Holder and
preserve the value of the SAR, (i) there shall automatically be
substituted for each Share subject to the unexercised SAR the number and kind
of shares, other securities or other consideration (including cash) into which
each outstanding Share shall be changed or for which each such Share shall be
exchanged, and (ii) the exercise price shall be increased or decreased
proportionately so that the aggregate purchase price for the Shares subject to
the unexercised SAR shall remain the same as immediately prior to such event.

 

(h)                                 Nontransferability.  The SAR, or any interest therein, may not be
assigned or otherwise transferred, disposed of or encumbered by the SAR Holder,
other than by will or by the laws of descent and distribution.  During the lifetime of the SAR Holder, the SAR
shall be exercisable only by the SAR Holder or by his or her guardian or legal
representative.  Notwithstanding the
foregoing, the SAR may be transferred by the SAR Holder to members of his or
her “immediate family “ or to a trust or other entity established for the
exclusive benefit of solely one or more members of the SAR Holder’s “immediate
family.”  Any SAR held by the transferee
will continue to be subject to the same terms and conditions that were
applicable to the SAR immediately prior to the transfer, except that the SAR
will be transferable by the transferee only by will or the laws of descent and
distribution.  For purposes hereof, “immediate
family” means the SAR Holder’s children, stepchildren, grandchildren, parents,
stepparents, grandparents, spouse, siblings (including half brother and
sisters), in laws, and relationships arising because of legal adoption.

 

(i)                                     Exercise
of SAR.  In order to exercise the SAR,
the SAR Holder shall submit to the Company an instrument specifying the whole
number of Shares in respect of which the SAR is being exercised. Shares will be
issued accordingly by the Company, and a share certificate dispatched to the SAR
Holder within 30 days. The payment upon a SAR exercise shall be solely the
number of whole Shares calculated in paragraph (a) above.  Fractional Shares shall be rounded down to
the nearest whole Share with no cash consideration being paid upon exercise. Anything
to the contrary herein notwithstanding, the Company shall not be obligated to
issue any Shares hereunder if the issuance of such Shares would violate the
provision of any applicable law, in which event the Company shall, as soon as
practicable, take whatever action it reasonably can so that such Shares may be
issued without resulting in such violations of law.

 

2

 

(j)                                     Termination
of Service.

 

1.               In
the event the SAR Holder ceases to be an employee of the Company due to his
death or Permanent Disability (as defined in the Company’s Incentive
Compensation Plan on the date hereof), the SAR, to the extent not already
exercisable in full, shall become immediately exercisable in full and shall
continue to be exercisable by the SAR Holder (or his Beneficiary or estate in
the event of his death) for a period of three years following such termination
of employment (but not beyond the SAR Period).

 

2.               In
the event of termination of employment (other than by the Company for Cause, as
such term is defined in the Company’s Incentive Compensation Plan on the date
hereof) after the attainment of Retirement Age (as defined in the Company’s
Incentive Compensation Plan on the date hereof), the SAR shall continue to become
exercisable on the schedule set forth in paragraph (f) above so long as
the SAR Holder does not engage in any activity in competition with any activity
of the Company or any of its Subsidiaries other than serving on the board of
directors (or similar governing body) of another company or as a consultant for
no more than 26 weeks per calendar year (“Competitive Activity”) and shall
continue to be exercisable by the SAR Holder (or his Beneficiary or estate in
the event of his death) for the remainder of the SAR Period.  In the event the SAR Holder engages in a
Competitive Activity, (A) the SAR, to the extent then exercisable, may be
exercised for 30 days following the date on which the SAR Holder engages in
such Competitive Activity (but not beyond the SAR Period) and (B) the SAR,
to the extent then not exercisable, shall be immediately forfeited.

 

3.               In
the event the SAR Holder ceases to be an employee of the Company after a Change
in Control (as defined below) due to termination by the Company not for Cause
on or before the second anniversary of the occurrence of the Change in Control,
the SAR, to the extent not already exercisable in full, shall become immediately
exercisable in full and shall continue to be exercisable by the SAR Holder for
a period of 90 days following such termination of employment (but not beyond
the SAR Period).

 

4.               In
the event that the SAR Holder ceases to be an employee of the Company for any other
reason, except due to a termination of the SAR Holder’s employment by the
Company for Cause, (A) the SAR, to the extent then exercisable, may be
exercised for 90 days following termination of employment (but not beyond the SAR
Period) and (B) the SAR, to the extent then not exercisable, shall be
immediately forfeited; provided that, in the event of a Redundancy (as defined
below), the Committee, in its sole discretion, may, in accordance with its
authority under the Plan, determine that the SAR, to the extent not
exercisable, shall become exercisable and shall continue to be exercisable by
the SAR Holder for a period of 90 days following such termination of employment
(but not beyond the SAR Period).

 

5.               In
the event of a termination of the SAR Holder’s employment for Cause, the SAR
shall immediately cease to be exercisable and shall be immediately forfeited.

 

3

 

6.               For purposes of
this SAR, service with any of the Company’s Subsidiaries (as defined in the Plan) shall be considered to be service with
the Company.

 

7.               “Change in Control” shall mean:

 

(A)            any person (within the meaning of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), other than a
Permitted Person, is or becomes the “beneficial owner” (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of Voting Securities
representing 50% or more of the total voting power or value of all the then
outstanding Voting Securities; or

 

(B)              the individuals who, as of the date hereof,
constitute the Board of Directors of the Company (the “Board”) together with
those who become directors subsequent to such date and whose recommendation,
election or nomination for election to the Board was approved by a vote of at
least a majority of the directors then still in office who either were
directors as of such date or whose recommendation, election or nomination for
election was previously so approved, cease for any reason to constitute a
majority of the members of the Board; or

 

(C)              the consummation of a merger, consolidation,
recapitalization, liquidation, sale or disposition by the Company of all or
substantially all of the Company’s assets, or reorganization of the Company,
other than any such transaction which would (x) result in more than 50% of
the total voting power and value represented by the voting securities of the
surviving entity outstanding immediately after such transaction being
beneficially owned by the former shareholders of the Company and (y) not
otherwise be deemed a Change in Control under subparagraphs (A) or (B) of
this paragraph.

 

“Permitted Persons” means (A) the
Company; (B) any Related Party; (C) Hellman & Friedman or
any of its subsidiaries or investment funds managed or controlled by Hellman &
Friedman; (D) Warburg Pincus or any of its subsidiaries or any investment
funds managed or controlled by Warburg Pincus or any of its subsidiaries; or (E) any
group (as defined in Rule 13b-3 under the Exchange Act) comprised of any
or all of the foregoing.

 

“Related Party” means (A) a
majority-owned subsidiary of the Company; (B) a trustee or other fiduciary
holding securities under an employee benefit plan of the Company or any
majority-owned subsidiary of the Company; or (C) any entity, 50% or more
of the voting power of which is owned directly or indirectly by the
shareholders of the Company in substantially the same proportion as their
ownership of Voting Securities immediately prior to the transaction.

 

4

 

“Voting
Security” means any security of the Company which carries the right to vote generally
in the election of directors.

 

8.                     “Redundancy”
shall mean termination of employment by the Company due to its need to reduce
the size of its workforce, including due to closure of a business or a
particular workplace or change in business process.  Whether a termination
of employment is due to a “redundancy” shall be determined by the Committee in
its sole and absolute discretion, such determination being final and binding on
all parties hereto and all persons claiming through, in the name of or on
behalf of such parties.

 

(k)                                  Obligations
as to Capital.  The Company agrees
that it will at all times maintain authorized and unissued share capital sufficient
to fulfill all of its obligations under the SAR.

 

(l)                                     Transfer
of Shares.  The SAR, the Shares
issued hereunder, or any interest in either, may be sold, assigned, pledged,
hypothecated, encumbered, or transferred or disposed of in any other manner, in
whole or in part, only in compliance with the terms, conditions and
restrictions as set forth in the governing instruments of the Company, applicable
United States federal and state securities laws and the terms and conditions
hereof.

 

(m)                               Expenses
of Issuance of Shares.  The issuance
of stock certificates upon the exercise of the SAR in whole or in part, shall
be without charge to the SAR Holder.  The
Company shall pay any issuance, stamp or documentary taxes (other than transfer
taxes) or charges imposed by any governmental body, agency or official (other
than income taxes) by reason of the exercise of the SAR in whole or in part or
the resulting issuance of Shares hereunder.

 

(n)                                 Withholding.  No later than the date of exercise of the SAR
granted hereunder, the SAR Holder shall pay to the Company or make arrangements
satisfactory to the Committee regarding payment of any federal, state or local
taxes of any kind required by law to be withheld upon the exercise of such SAR
and the Company shall, to the extent permitted or required by law, have the
right to deduct from any payment of any kind otherwise due to the SAR Holder,
federal, state and local taxes of any kind required by law to be withheld upon
the exercise of such SAR.

 

(o)                                 References.  References herein to rights and obligations
of the SAR Holder shall apply, where appropriate, to the SAR Holder’s legal
representative or estate without regard to whether specific reference to such
legal representative or estate is contained in a particular provision of this SAR.

 

(p)                                 Notices.  Any notice required or permitted to be given
under this agreement shall be in writing and shall be deemed to have been given
when delivered personally or by courier, or sent by certified or registered
mail, postage prepaid, return receipt

 

5

 

requested, duly addressed to the party concerned at the address
indicated below or to such changed address as such party may subsequently by
similar process give notice of:

 

If to the Company:

 

Arch Capital Group Ltd.:

Wessex House

45 Reid Street

Hamilton HM 12 Bermuda 

Attn:  Secretary

 

If to the SAR Holder:

 

The last address
delivered to the Company by the SAR Holder in the manner set forth herein.

 

(q)                                 Governing
Law.  This agreement shall be
governed by and construed in accordance with the laws of New York, without
giving effect to principles of conflict of laws thereof.

 

(r)                                    Entire
Agreement.  This agreement and the
Plan constitute the entire agreement among the parties relating to the subject
matter hereof, and any previous agreement or understanding among the parties
with respect thereto is superseded by this agreement and the Plan.

 

(s)                                  Counterparts.  This agreement may be executed in two
counterparts, each of which shall constitute one and the same instrument.

 

6

 

IN WITNESS WHEREOF, the undersigned have executed this
agreement as of the Date of Grant.

 

	
   

  	
  ARCH CAPITAL
  GROUP LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

7Exhibit 10.11.2

 

ARCH CAPITAL GROUP LTD.

Share Appreciation Right Agreement

 

AGREEMENT, made and entered into this           
day of                       ,
2007, by and between Arch Capital Group Ltd. (the “Company”), a Bermuda company,
and                                
(the “SAR Holder”).

 

WHEREAS, the SAR Holder has been granted the following
award under the Company’s 2007 Long Term Incentive and Share Award Plan (the “Plan”);

 

NOW, THEREFORE, in consideration of the premises and
mutual covenants contained herein, and for other good and valuable
consideration, the Company and the SAR Holder agree as follows:

 

(a)                                  Grant. Pursuant to the
provisions of the Plan, the terms of which are incorporated herein by
reference, the Company hereby grants to the SAR Holder a Share Appreciation Right
(the “SAR”) with respect to                         
Shares. The SAR represents a right to be paid, upon exercise of the SAR, an
amount measured by (x) the difference between the Fair Market Value per Share
on the date of exercise and the exercise price per Share of the SAR, multiplied
by (y) the number of Shares with respect to which the SAR is exercised,
with such amount to be paid in the form of Shares valued at their Fair Market
Value on the date of exercise. The SAR is granted as of                                      ,
2007 (the “Date of Grant”), and such grant is subject to the terms and
conditions herein and the terms and conditions of the Plan. In the event there
is any conflict between the terms of the Plan and this Agreement, the terms of
the Plan shall control. Capitalized terms used herein but not defined shall
have the meanings given to them in the Plan.

 

(b)                                 Exercise Price. The exercise price of the SAR shall be
equal to $                 
per Share.

 

(c)                                  Status of Shares. Upon issue, the shares received upon
exercise of the SAR shall rank equally in all respects with the other Shares.

 

(d)                                 Term of SAR. The SAR may be exercised only
during the period (the “SAR Period”) set forth in paragraph (f) below and
shall remain exercisable until the tenth anniversary of the Date of Grant. Thereafter,
the SAR Holder shall cease to have any rights in respect thereof. The right to
exercise the SAR shall be subject to sooner termination as provided in
paragraph (j) below.

 

(e)                                  No Rights of Shareholder. The SAR Holder shall not, by virtue
hereof, be entitled to any rights of a shareholder in the Company, either at
law or in equity.

 

(f)                                    Exercisability. Except as otherwise set forth in
paragraph (j) below, the SAR shall become exercisable  in
three equal annual installments on the first, second and third anniversaries of
the Date of Grant, in each case subject to paragraph (j) below. Subject to
paragraph (j)

 

 

below, the SAR may be
exercised at any time or from time to time during the SAR Period in regard to
all or any portion of the SAR which is then exercisable, as may be
adjusted pursuant to paragraph (g) below.

 

(g)                                 Adjustments for Recapitalization and
Dividends. In the
event that, prior to the expiration of the SAR, any dividend in Shares,
recapitalization, Share split, reverse split, reorganization, merger,
consolidation, spin-off, combination, repurchase, or share exchange, or other
such change affects the Shares such that they are increased or decreased or
changed into or exchanged for a different number or kind of shares, other
securities of the Company or of another corporation or other consideration,
then in order to maintain the proportionate interest of the SAR Holder and
preserve the value of the SAR, (i) there shall automatically be
substituted for each Share subject to the unexercised SAR the number and kind
of shares, other securities or other consideration (including cash) into which
each outstanding Share shall be changed or for which each such Share shall be
exchanged, and (ii) the exercise price shall be increased or decreased
proportionately so that the aggregate purchase price for the Shares subject to
the unexercised SAR shall remain the same as immediately prior to such event.

 

(h)                                 Nontransferability. The SAR, or any interest therein, may not
be assigned or otherwise transferred, disposed of or encumbered by the SAR
Holder, other than by will or by the laws of descent and distribution. During
the lifetime of the SAR Holder, the SAR shall be exercisable only by the SAR
Holder or by his or her guardian or legal representative. Notwithstanding the
foregoing, the SAR may be transferred by the SAR Holder to members of his
or her “immediate family “ or to a trust or other entity established for the
exclusive benefit of solely one or more members of the SAR Holder’s “immediate
family.”  Any SAR held by the transferee
will continue to be subject to the same terms and conditions that were
applicable to the SAR immediately prior to the transfer, except that the SAR
will be transferable by the transferee only by will or the laws of descent and
distribution. For purposes hereof, “immediate family” means the SAR Holder’s
children, stepchildren, grandchildren, parents, stepparents, grandparents,
spouse, siblings (including half brother and sisters), in laws, and
relationships arising because of legal adoption.

 

(i)                                     Exercise of SAR. In order to exercise the SAR, the SAR
Holder shall submit to the Company an instrument specifying the whole number of
Shares in respect of which the SAR is being exercised. Shares will be issued
accordingly by the Company, and a share certificate dispatched to the SAR
Holder within 30 days. The payment upon a SAR exercise shall be solely the
number of whole Shares calculated in paragraph (a) above. Fractional Shares
shall be rounded down to the nearest whole Share with no cash consideration
being paid upon exercise. Anything to the contrary herein notwithstanding, the
Company shall not be obligated to issue any Shares hereunder if the issuance of
such Shares would violate the provision of any applicable law, in which event
the Company shall, as soon as practicable, take whatever action it reasonably
can so that such Shares may be issued without resulting in such violations
of law.

 

2

 

(j)                                     Termination of Service.

 

1.               In the event the SAR Holder ceases to be
an employee of the Company due to his death or Permanent Disability (as defined
in the Company’s Incentive Compensation Plan on the date hereof), the SAR, to
the extent not already exercisable in full, shall become immediately
exercisable in full and shall continue to be exercisable by the SAR Holder (or
his Beneficiary or estate in the event of his death) for a period of three
years following such termination of employment (but not beyond the SAR Period).

 

2.               In the event of termination of employment
(other than by the Company for Cause, as such term is defined in the Company’s
Incentive Compensation Plan on the date hereof) after the attainment of Retirement
Age (as defined in the Company’s Incentive Compensation Plan on the date hereof),
the SAR shall continue to become exercisable on the schedule set forth in
paragraph (f) above so long as the SAR Holder does not engage in any
activity in competition with any activity of the Company or any of its
Subsidiaries other than serving on the board of directors (or similar governing
body) of another company or as a consultant for no more than 26 weeks per
calendar year (“Competitive Activity”) and shall continue to be exercisable by
the SAR Holder (or his Beneficiary or estate in the event of his death) for the
remainder of the SAR Period. In the event the SAR Holder engages in a
Competitive Activity, (A) the SAR, to the extent then exercisable, may be
exercised for 30 days following the date on which the SAR Holder engages in
such Competitive Activity (but not beyond the SAR Period) and (B) the SAR,
to the extent then not exercisable, shall be immediately forfeited.

 

3.               In the event the SAR Holder ceases to be
an employee of the Company after a Change in Control (as defined below) due to
termination (A) by the Company not for Cause or (B) by the SAR Holder
for Good Reason (as defined in the Employment Agreement, dated as of                       ,
between the SAR Holder and                           ),
in either case, on or
before the second anniversary of the occurrence of the Change in Control, the SAR,
to the extent not already exercisable in full, shall become immediately
exercisable in full and shall continue to be exercisable by the SAR Holder for
a period of 90 days following such termination of employment (but not beyond
the SAR Period).

 

4.               In the event that the SAR Holder ceases
to be an employee of the Company for any other reason, except due to a termination
of the SAR Holder’s employment by the Company for Cause, (A) the SAR, to
the extent then exercisable, may be exercised for 90 days following
termination of employment (but not beyond the SAR Period) and (B) the SAR,
to the extent then not exercisable, shall be immediately forfeited; provided
that, in the event of a Redundancy (as defined below), the Committee, in its
sole discretion, may, in accordance with its authority under the Plan,
determine that the SAR, to the extent not exercisable, shall become exercisable
and shall continue to be exercisable by the SAR Holder for a period of 90 days
following such termination of employment (but not beyond the SAR Period).

 

3

 

5.               In the event of a termination of the SAR
Holder’s employment for Cause, the SAR shall immediately cease to be
exercisable and shall be immediately forfeited.

 

6.               For purposes of this SAR, service with any of the
Company’s Subsidiaries (as defined in the Plan) shall be considered to
be service with the Company.

 

7.               “Change in Control” shall
mean:

 

(A)            any person (within the
meaning of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
other than a Permitted Person, is or becomes the “beneficial owner” (as defined
in Rule 13d-3 under the Exchange Act), directly or indirectly, of Voting
Securities representing 50% or more of the total voting power or value of all
the then outstanding Voting Securities; or

 

(B)              the individuals who, as of
the date hereof, constitute the Board of Directors of the Company (the “Board”)
together with those who become directors subsequent to such date and whose
recommendation, election or nomination for election to the Board was approved
by a vote of at least a majority of the directors then still in office who
either were directors as of such date or whose recommendation, election or
nomination for election was previously so approved, cease for any reason to
constitute a majority of the members of the Board; or

 

(C)              the consummation of a
merger, consolidation, recapitalization, liquidation, sale or disposition by
the Company of all or substantially all of the Company’s assets, or
reorganization of the Company, other than any such transaction which would (x) result
in more than 50% of the total voting power and value represented by the voting
securities of the surviving entity outstanding immediately after such
transaction being beneficially owned by the former shareholders of the Company
and (y) not otherwise be deemed a Change in Control under subparagraphs (A) or
(B) of this paragraph.

 

“Permitted Persons” means (A) the
Company; (B) any Related Party; (C) Hellman & Friedman or
any of its subsidiaries or investment funds managed or controlled by Hellman &
Friedman; (D) Warburg Pincus or any of its subsidiaries or any investment
funds managed or controlled by Warburg Pincus or any of its subsidiaries; or (E) any
group (as defined in Rule 13b-3 under the Exchange Act) comprised of any
or all of the foregoing.

 

“Related Party” means (A) a
majority-owned subsidiary of the Company; (B) a trustee or other fiduciary
holding securities under an employee benefit plan of the Company or any
majority-owned subsidiary 

 

4

 

of the Company; or (C) any
entity, 50% or more of the voting power of which is owned directly or
indirectly by the shareholders of the Company in substantially the same
proportion as their ownership of Voting Securities immediately prior to the
transaction.

 

“Voting Security” means any security of the Company
which carries the right to vote generally in the election of directors.

 

8.               “Redundancy” shall mean termination of employment by
the Company due to its need to reduce the size of its workforce, including due
to closure of a business or a particular workplace or change in business process.
Whether a termination of employment is due to a “redundancy” shall be
determined by the Committee in its sole and absolute discretion, such
determination being final and binding on all parties hereto and all persons
claiming through, in the name of or on behalf of such parties.

 

(k)                                  Obligations as to Capital. The Company agrees that it will at all
times maintain authorized and unissued share capital sufficient to fulfill all
of its obligations under the SAR.

 

(l)                                     Transfer of Shares. The SAR, the Shares issued hereunder,
or any interest in either, may be sold, assigned, pledged, hypothecated,
encumbered, or transferred or disposed of in any other manner, in whole or in
part, only in compliance with the terms, conditions and restrictions as set
forth in the governing instruments of the Company, applicable United States
federal and state securities laws and the terms and conditions hereof.

 

(m)                               Expenses of Issuance of Shares. The issuance of stock certificates upon
the exercise of the SAR in whole or in part, shall be without charge to the SAR
Holder. The Company shall pay any issuance, stamp or documentary taxes (other
than transfer taxes) or charges imposed by any governmental body, agency or
official (other than income taxes) by reason of the exercise of the SAR in
whole or in part or the resulting issuance of Shares hereunder.

 

(n)                                 Withholding. No later than the date of exercise of
the SAR granted hereunder, the SAR Holder shall pay to the Company or make
arrangements satisfactory to the Committee regarding payment of any federal,
state or local taxes of any kind required by law to be withheld upon the
exercise of such SAR and the Company shall, to the extent permitted or required
by law, have the right to deduct from any payment of any kind otherwise due to
the SAR Holder, federal, state and local taxes of any kind required by law to
be withheld upon the exercise of such SAR.

 

(o)                                 References. References herein to rights and obligations of the SAR
Holder shall apply, where appropriate, to the SAR Holder’s legal representative
or estate without regard to whether specific reference to such legal
representative or estate is contained in a particular provision of this SAR.

 

5

 

(p)                                 Notices. Any notice required or permitted to be given under
this agreement shall be in writing and shall be deemed to have been given when
delivered personally or by courier, or sent by certified or registered mail,
postage prepaid, return receipt requested, duly addressed to the party
concerned at the address indicated below or to such changed address as such
party may subsequently by similar process give notice of:

 

If to
the Company:

 

Arch
Capital Group Ltd.:

Wessex
House

45 Reid Street

Hamilton HM 12 Bermuda 

Attn:  Secretary

 

If to
the SAR Holder:

 

The
last address delivered to the Company by the SAR Holder in the manner set forth
herein.

 

(q)                                 Governing Law. This agreement shall be governed by and
construed in accordance with the laws of New York, without giving effect to
principles of conflict of laws thereof.

 

(r)                                    Entire Agreement. This agreement and the Plan constitute
the entire agreement among the parties relating to the subject matter hereof,
and any previous agreement or understanding among the parties with respect
thereto is superseded by this agreement and the Plan.

 

(s)                                  Counterparts. This agreement may be executed in
two counterparts, each of which shall constitute one and the same instrument.

 

6

 

IN
WITNESS WHEREOF, the undersigned have executed this agreement as of the Date of
Grant.

	
   

  	
   

  
	
   

  	
  ARCH
  CAPITAL GROUP LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]