Document:

Exhibit

Exhibit 10.6

KINSALE CAPITAL GROUP, LTD.
2010 STOCK INCENTIVE PLAN
Effective May 13, 2010 

1.Purpose.  The purpose of this Kinsale Capital Group, Ltd. 2010 Stock Incentive Plan (the “Plan”) is to further the long term stability and financial success of Kinsale Capital Group, Ltd. by retaining and attracting key employees and consultants of the Company through the use of incentives tied to the value of Class B Common shares of the Company.  
2.    Definitions.  As used in the Plan, the following terms have the meanings indicated:
(a)     “Applicable Withholding Taxes” means the aggregate amount of federal, state, local and/or foreign income and payroll taxes that the Company is required to withhold in connection with the grant, vesting or exercise of any Incentive Award.
(b)    “Board” means the board of directors of the Company.
(c)    “Code” means the Internal Revenue Code of 1986, as amended. 
(d)    “Committee” means the committee appointed by the Board (as described in Section 11), or the entire Board if no committee is appointed.
(e)    “Company” means Kinsale Capital Group, Ltd., a company incorporated in the Island of Bermuda.
(f)    “Company Sale” means a Company Sale as defined in Section 16.G. of the Shareholders Agreement.
(g)    “Company Stock” means Class B Common Shares of the Company, par value $0.0001 per share, with the rights and obligations assigned to such shares as described in the Bye-Laws of the Company, as amended from time to time.  

(h)    “Consultant” means any director, advisor, consultant or other natural person providing bona fide services to the Company or a Related Company, other than as an Employee.
(i)    “Date of Grant” means (i) with respect to an award of Restricted Stock, the date on which the Committee approves the material terms of the award; (ii) with respect to a Nonstatutory Option, the date on which the Committee completes the corporate action necessary to create a legally binding right constituting the Option, and (iii) with respect to an Incentive Stock Option, the date on which the Committee completes the corporate action constituting an offer of stock for sale to a Participant under the terms and conditions of the Incentive Stock Option; or (iv) with respect to any Incentive Award, such future date on which the grant is to be effective as specified by the Committee.
(j)    “Disability” or “Disabled” means, as to an Incentive Stock Option, a Disability within the meaning of Code Section 22(e)(3).  As to all other Incentive Awards, the Committee shall determine whether a Disability exists and such determination shall be conclusive.
(k)    “Employee” means any individual common-law employee of the Company or a Related Company.
(l)    “Fair Market Value” means the value of a share of Company Stock determined by the Committee using the reasonable application of a reasonable valuation method in accordance with U.S. Treasury Regulations section 1.409A-1(b)(5)(iv)(B) (or any successor provision).
(m)    “Incentive Award” means any award of Restricted Stock or any Option granted under the Plan.
(n)    “Incentive Stock Option” means an Option intended to meet the requirements of, and to qualify for favorable federal income tax treatment under, Code Section 422.  

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(o)    “Nonstatutory Stock Option” means an Option which does not meet the requirements of Code Section 422, or even if meeting the requirements of Code Section 422, is not intended to be an Incentive Stock Option and is so designated.
(p)    “Option” means a right to purchase Company Stock granted under the Plan in accordance with Section 6.
(q)    “Participant” means a Service Provider who receives an Incentive Award under the Plan.
(r)    “Plan” shall have the meaning as defined in Section 1.
(s)    “Qualified Public Offering” means a Qualified Public Offering as defined in Section 16.M. of the Shareholders Agreement.
(t)    “Related Company” means, (i) for all purposes relating to Incentive Stock Options (including for purposes of determining any Ten Percent Shareholder as well as for purposes of determining eligibility to receive such awards), any “parent corporation” with respect to the Company within the meaning of Code Section 424(e) or any “subsidiary corporation” with respect to the Company within the meaning of Code Section 424(f); (ii) for purposes of determining eligibility to receive a Nonstatutory Stock Option, any corporation or other entity in a chain of corporations or other entities in which each corporation or other entity has a controlling interest (within the meaning of Treasury Regulations section 1.409A-1(b)(5)(E)(1) (or any successor provision)) in another corporation or other entity in the chain, beginning with the corporation or other entity in which the Company has a controlling interest; and (iii) for all other purposes under the Plan, any direct or indirect parent of the Company, any majority-owned subsidiary of the Company, and any majority-owned subsidiary of a direct or indirect parent of the Company. 

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(u)    “Restricted Stock” means Company Stock awarded upon the terms and subject to the restrictions set forth in Section 5.  
(v)    “Service Provider” means an Employee or Consultant, provided that such person would satisfy the requirements of Rule 701 under the Securities Act of 1933, as amended.
(w)    “Shareholders Agreement” means the Amended and Restated Shareholders Agreement of the Company dated March 8, 2010, as amended from time to time.
(x)    “Ten Percent Shareholder” means a person who owns, directly or indirectly, stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or any Related Company. 
3.    Authorized Stock.  Subject to Section 10 of the Plan, there shall be reserved for issuance under the Plan an aggregate of 2,730,167 shares of Company Stock, which shall be authorized but unissued shares.  All shares reserved for issuance under the Plan may be issued as Incentive Stock Options.  Shares allocable to Incentive Awards or portions thereof granted under the Plan that expire or otherwise terminate unexercised may again be subjected to an Incentive Award under the Plan.  For purposes of determining the number of shares that are available for Incentive Awards under the Plan, such number shall include the number of shares surrendered by a Participant or retained by the Company in payment of the exercise price of an Option or of Applicable Withholding Taxes.
4.    Eligibility.  Any Service Provider who, in the judgment of the Committee, has contributed or can be expected to contribute to the profits or growth of the Company (or a Related Company) shall be eligible to receive an Incentive Award under the Plan.  The Committee shall have the power and complete discretion, as provided in Section 11, to select eligible Service Providers to receive Incentive Awards and to determine for each Service Provider, consistent with 

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the terms of the Plan, the type of award, the terms and conditions of the award and the number of shares to be allocated to each Service Provider as part of each award.  
5.    Restricted Stock Awards.
(a)    Authority for Grants.  The Committee may grant Restricted Stock to eligible Service Providers in accordance with the terms hereof; provided, however, that the Committee will not grant Restricted Stock or Options to any Service Provider which would result in any such Service Provider owning 5% or more of the issued share capital of the Company without the prior consent of the Bermuda Monetary Authority.  Whenever the Committee deems it appropriate to grant Restricted Stock, notice shall be given to the Service Provider stating the number of shares of Restricted Stock granted and the terms and conditions to which the Restricted Stock is subject.  This notice shall become an award agreement between the Company and the Service Provider.  Restricted Stock may be awarded by the Committee in its discretion without cash consideration.
(b)    Transfer Restrictions.  The Committee shall place such restrictions on the transferability and vesting of Restricted Stock as the Committee deems appropriate, including without limitation restrictions relating to continued service and/or performance goals.  Except as otherwise specifically provided in the Participant’s award agreement, no shares of Restricted Stock may be sold, assigned, transferred, pledged, hypothecated, or otherwise encumbered or disposed of until the restrictions on such shares as set forth in the Participant’s award agreement have lapsed or been removed pursuant to paragraph (f) below.
(c)    Shareholder Rights.  Upon grant of any Restricted Stock award, and as a condition thereof, the Company may require the Participant to enter into the Shareholders Agreement or a separate agreement with the Company restricting the Participant’s ability to transfer any shares of Company Stock acquired under the Restricted Stock award, and may require a customary written 

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indication of the Participant’s investment intent.  A Participant shall, subject to the restrictions set forth in paragraph (b) above and the restrictions imposed by any such shareholders’ agreement, have all the rights of a shareholder with respect to any shares of Restricted Stock which he or she has been awarded, including, but not limited to, the right to receive all dividends and other distributions paid thereon, subject to the Shareholders Agreement and the Company Bye-Laws.  Until the Participant has made any required payment upon grant of the Restricted Stock, including any Applicable Withholding Taxes, he or she shall possess no shareholder rights with respect to any shares subject to the Restricted Stock award.
(d)    Dividends. Unless otherwise provided by the Committee in the award agreement, (i) any dividends or other distributions with respect to any outstanding shares of Restricted Stock that are payable in Company Stock shall be subject to the same restrictions as the underlying shares of Restricted Stock; and (ii) any dividends or other distributions payable in cash shall be withheld and accumulated without interest in an unfunded bookkeeping account for the Participant, which account shall be subject to the same restrictions to which the underlying shares of Restricted Stock are subject, and which shall be distributable in cash upon and to the extent of the lapsing or removal of such restrictions, or forfeitable (as the case may be) to the Company upon and to the extent the underlying shares of Restricted Stock are forfeited.  Such bookkeeping account shall be paid, if at all, from the general assets of the Company, and the Participant’s right to receive any amounts credited to such account shall be solely that of an unsecured general creditor of the Company.
(e)    Share Certificates.  Certificates representing Restricted Stock shall be held by the Company until the restrictions lapse and shall bear a legend referring to the restrictions set forth in the Plan and the Participant’s award agreement, and any other legend deemed desirable by 

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the Company’s counsel to comply with federal or state securities laws.  Upon request the Participant shall provide the Company with appropriate stock powers endorsed in blank.  
(f)    Lapsing of Restrictions.  The Committee shall establish as to each award of Restricted Stock the terms and conditions upon which the restrictions set forth in paragraph (b) above shall lapse.  Such terms and conditions may include, without limitation, the lapsing of such restrictions as a result of the Disability or death of the Participant or the occurrence of a Company Sale or Qualified Public Offering.  Notwithstanding the foregoing, the Committee may at any time, in its sole discretion, accelerate the time at which any or all restrictions will lapse or remove any and all such restrictions. 
(g)    Applicable Withholding Taxes.  Each Participant shall agree at the time his or her Restricted Stock is granted, and as a condition thereof, to pay to the Company, or make arrangements satisfactory to the Company regarding the payment to the Company of, Applicable Withholding Taxes.  Applicable Withholding Taxes may be paid in cash or, if the grant agreement or the Committee by separate action so provides, the Participant may elect to (i) deliver shares of Company Stock to which the Participant has good title, free and clear of all liens and encumbrances or (ii) have the Company retain shares of Company Stock subject to the award, sufficient in either case to satisfy all or a specified portion of the Applicable Withholding Taxes, based on the Fair Market Value of the Company Stock as of the date the Applicable Withholding Taxes are required to be withheld.  The Committee shall have sole discretion to approve or disapprove any such election.  The Participant and the Committee may make any other arrangements for payment of the Applicable Withholding Taxes which the Committee deems appropriate in its sole discretion.
6.    Options.

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(a)    Authority for Grants.  The Committee may grant Options to eligible Service Providers in accordance with the terms hereof.  Whenever the Committee deems it appropriate to grant Options, notice shall be given to the Service Provider stating the number of shares for which Options are granted, the Option price per share, whether the Options are Incentive Stock Options or Nonstatutory Stock Options and the conditions to which the grant and exercise of the Options are subject.  This notice shall become an award agreement between the Company and the Service Provider.
(b)    Exercise Price.  The exercise price per share of Company Stock covered by an Option shall not be less than 100% of the Fair Market Value per share of such stock on the Date of Grant.  If the Option is an Incentive Stock Option and the Participant is a Ten Percent Shareholder, the exercise price per share shall be not less than 110% of the Fair Market Value per share of Company Stock on the Date of Grant.
(c)    Term.  Options may be exercised in whole or in part at the times as may be specified by the Committee in the Participant’s award agreement; provided that no Option may be exercised after the expiration of ten (10) years from the Date of Grant.  If the Option is an Incentive Stock Option and the Participant is a Ten Percent Shareholder, the Option may not be exercised after the expiration of five (5) years from the Date of Grant.
(d)    Nontransferability.  Options shall not be transferable except to the extent specifically provided in the grant agreement to a revocable trust or otherwise as permitted under Rule 701 of the Securities Act of 1933, as amended.  Incentive Stock Options, by their terms, shall not be transferable except by will or the laws of descent and distribution, and shall be exercisable during the Participant’s lifetime only by the Participant.

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(e)    Additional Requirements for Incentive Options.  The following additional terms and conditions shall apply with respect to any grant of Incentive Stock Options:
(i)    Incentive Stock Options shall be granted only to Employees.
(ii)    An Incentive Stock Option by its terms shall be exercisable in any calendar year only to the extent that the aggregate Fair Market Value (determined at the Date of Grant) of the Company Stock with respect to which options are exercisable for the first time during the calendar year does not exceed $100,000 (the “Limitation Amount”).  Incentive Stock Options granted under the Plan and similar incentive options granted under all other plans of the Company and any Related Company shall be aggregated for purposes of determining whether the Limitation Amount has been exceeded.  The Committee may impose such conditions as it deems appropriate on an Incentive Stock Option to ensure that the foregoing requirement is met.  If Incentive Stock Options that first become exercisable in a calendar year exceed the Limitation Amount, the excess Options will be treated as Nonstatutory Stock Options to the extent permitted by law.
(iii)    No Incentive Stock Option may be exercised after the first to occur of (a) ten years from the Date of Grant (five years if the Participant is a Ten Percent Shareholder), (b) three months following the date of the Participant’s retirement or termination of employment for reasons other than Disability or death, (c) one year following the date of the Participant’s termination of employment on account of Disability or death, or (d) one year following the date of the Participant’s death during the first three months following the Participant’s termination of employment for a reason other than death.
(iv)    An Incentive Stock Option shall be subject to such other conditions on exercise as may be imposed under the Code.

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(f)    Additional Requirements for California Residents.  The award agreement with respect to an Option that is granted to a Participant resident in the state of California shall provide that unless a Participant’s employment is terminated for cause (as determined in the discretion of the Committee), the Participant shall be entitled to exercise the Option until the earlier of (i) the expiration date of the Option or (ii) if the termination of employment was caused by the Participant’s death or Disability, the date which is at least six months following such termination of employment or (iii) if the termination of employment was for a reason other than death or Disability, the date which is at least 30 days following such termination of employment.
(g)    Vesting.  The Committee shall establish as to each Option award the terms and conditions upon which the Participant’s right to exercise the Option shall vest, including without limitation vesting schedules relating to continued service and/or performance goals.  Such terms and conditions may include, without limitation, accelerated vesting as a result of the Disability or death of the Participant or the occurrence of a Company Sale or Qualified Public Offering.  Notwithstanding the foregoing, the Committee may at any time, in its sole discretion, accelerate the time at which the Participant’s right to exercise an Option vests.  
(h)    Exercise.  Options may be exercised by the Participant by giving written notice of the exercise to the Company, stating the number of shares the Participant has elected to purchase under the Option.  Such notice shall be effective only if accompanied by the exercise price in full in cash; provided, however, that if the grant agreement or the Committee by separate action so provides, the Participant may elect to (i) deliver shares of Company Stock to which the Participant has good title, free and clear of all liens and encumbrances or (ii) have the Company retain shares of Company Stock issuable upon exercise of the Option, sufficient in either case to satisfy all or a specified portion of the exercise price, based on the Fair Market Value of the Company Stock as of 

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the date of exercise.  The Committee shall have sole discretion to approve or disapprove any such election.  The Participant and the Committee may make any other arrangements for payment of the exercise price which the Committee deems appropriate in its sole discretion.
(i)    Applicable Withholding Taxes.  Each Participant shall agree at the time his or her Option is exercised, and as a condition thereof, to pay to the Company, or make arrangements satisfactory to the Company regarding the payment to the Company of, Applicable Withholding Taxes.  Applicable Withholding Taxes may be paid in cash or, if the grant agreement or the Committee by separate action so provides, the Participant may elect to (i) deliver shares of Company Stock to which the Participant has good title, free and clear of all liens and encumbrances or (ii) have the Company retain shares of Company Stock issuable upon exercise of the Option, sufficient in either case to satisfy all or a specified portion of the Applicable Withholding Taxes, based on the Fair Market Value of the Company Stock as of the date the Applicable Withholding Taxes are required to be withheld.  The Committee shall have sole discretion to approve or disapprove any such election.  The Participant and the Committee may make any other arrangements for payment of the Applicable Withholding Taxes which the Committee deems appropriate in its sole discretion.
(j)    Shareholder Rights.  As a condition of the exercise of any Option award, the Company may require the Participant to enter into the Shareholders Agreement or a separate agreement with the Company restricting the Participant’s ability to transfer any shares of Company Stock acquired upon exercise of the Option, and may require a customary written indication of the Participant’s investment intent.  The Company may place on any certificate representing Company Stock issued upon the exercise of an Option any legend deemed desirable by the Company’s counsel to comply with applicable securities laws.  Until the Participant has made any required payment 

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upon exercise, including any Applicable Withholding Taxes, he or she shall possess no shareholder rights with respect to any shares subject to the Option award.
7.    Securities Laws.  The Committee may suspend the right to exercise an Option or delay or cancel the grant, vesting or lapse in restrictions with respect to Options or Restricted Stock at any time when the Committee determines that allowing such exercise, grant, vesting or lapse in restrictions would violate any federal or state securities laws.  The Committee may provide in its discretion that any time periods to exercise the Option are tolled during a period of suspension.
8.    Effective Date of the Plan.  The Plan was approved by the Board on May ___, 2010 and shall become effective as of the date on which it is approved by the shareholders of the Company.  No awards of Restricted Stock shall be granted under the Plan and no Options granted under the Plan shall become exercisable until (i) the Plan has been approved by the Company’s shareholders and (ii) the requirements of any applicable federal or state securities laws have been met.
9.    Termination, Modification, Change.  If not sooner terminated by the Board, this Plan shall terminate at the close of the business day that is the day immediately preceding the tenth anniversary of the date on which the Plan was approved by the Board (as provided in Section 8).  No Incentive Awards shall be made under the Plan after its termination.  The Board may terminate the Plan or may amend the Plan in such respects as it shall deem advisable prior to such date; provided, that, if and to the extent required by the Code or applicable federal or state securities law or regulations thereunder, no change shall be made that materially increases the total number of shares of Company Stock reserved for issuance pursuant to Incentive Awards granted under the Plan (except pursuant to Section 10), materially expands the class of persons eligible to receive Incentive Awards, or materially increases the benefits accruing to Participants under the Plan, unless such change is authorized by the shareholders of the Company.  Notwithstanding the foregoing, the 

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Board may amend the Plan and unilaterally amend outstanding Incentive Awards as it deems appropriate to ensure compliance with applicable federal or state securities laws or regulations thereunder and to cause Incentive Awards to meet the requirements of the Code and regulations thereunder.  Except as provided in the preceding sentence, a termination or amendment of the Plan shall not, without the consent of the Participant, detrimentally affect a Participant’s rights under an Incentive Award previously granted to him.
10.    Change in Capital Structure.
(a)    In the event of a stock dividend, stock split or combination of shares, recapitalization or merger in which the Company is the surviving corporation or other change in the Company’s capital stock without the receipt of consideration by the Company, the number and kind of shares of stock or securities of the Company to be subject to the Plan and to Incentive Awards then outstanding or to be granted thereunder, the maximum number of shares or securities which may be delivered under the Plan under Section 3, the exercise price and all other relevant provisions of outstanding Incentive Awards shall be proportionately adjusted by the Committee, whose determination shall be binding on all persons.  If the adjustment would produce fractional shares with respect to any Incentive Award and/or fractional cents with respect to the exercise price of any outstanding Option award, the Committee shall round down the number of shares covered by the Incentive Award to the nearest whole share so as to eliminate the fractional shares, and shall round up the exercise price of the outstanding Option to the nearest whole cent so as to eliminate the fractional cents. 
(b)    In the event of a Company Sale, or if the Company is otherwise a party to a consolidation or a merger in which the Company is not the surviving corporation, a transaction that results in the acquisition of substantially all of the Company’s outstanding stock by a single person 

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or entity, or a sale or transfer of substantially all of the Company’s assets, the Committee may take such actions with respect to outstanding Incentive Awards as the Committee deems appropriate, subject to the Bye-Laws of the Company and the Shareholders Agreement as in effect at the time of such event.
(c)    Notwithstanding anything in the Plan or any award agreement to the contrary, the Committee may take the foregoing actions without the consent of any Participant, and the Committee’s determination shall be conclusive and binding on all persons for all purposes.
11.    Administration of the Plan.  The Plan shall be administered by the Committee, the members of which shall be appointed by and serve at the pleasure of the Board.  In the event a Committee is not appointed, the Board shall serve as the Committee.  The Committee shall have general authority to impose any limitation or condition upon an Incentive Award the Committee deems appropriate to achieve the objectives of the Incentive Award and the Plan and, without limitation and in addition to powers set forth elsewhere in the Plan, shall have the following specific authority:
(a)    The Committee shall have the power and complete discretion to determine (i) which eligible Service Providers shall receive Incentive Awards and the nature of each Incentive Award, (ii) the number of shares of Company Stock to be covered by each Incentive Award, (iii) whether Options shall be Incentive Stock Options or Nonstatutory Stock Options, (iv) the Fair Market Value of Company Stock, (v) the time or times when an Incentive Award shall be granted, (vi) whether an Incentive Award shall become vested over a period of time and when it shall be fully vested, (vii) when Options may be exercised, (viii) whether a Disability exists, (x) the manner in which payment of the exercise price will be made upon the exercise of Options, (x) conditions relating to the length of time before disposition of Company Stock received upon the exercise of 

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Options is permitted, (xii) whether to approve a Participant’s election (A) to deliver shares of Company Stock to satisfy Applicable Withholding Taxes or (B) to have the Company withhold from the shares to be issued upon the exercise of an Option the number of shares necessary to satisfy Applicable Withholding Taxes, (xii) notice provisions relating to the sale of Company Stock acquired under the Plan, (xiii) whether or not to remove, waive or make exceptions to any restrictions set forth in the Plan or in the grant agreement with respect to any Incentive Award; and (xiv) any additional requirements relating to Incentive Awards that the Committee deems appropriate in its sole discretion.  
(b)    The Committee shall have the power and authority to delegate its powers under the Plan to an appropriate officer or officers of the Company, provided that any delegation to an officer or officers of the Committee’s power to grant Incentive Awards under the Plan shall be done in compliance with all applicable laws. 
(c)    The Committee may adopt rules and regulations for carrying out the Plan.  The interpretation and construction of any provision of the Plan by the Committee shall be final and conclusive.  The Committee may consult with counsel, who may be counsel to the Company, and shall not incur any liability for any action taken in good faith in reliance upon the advice of counsel.  A majority of the members of the Committee shall constitute a quorum, and all actions of the Committee shall be taken by a majority of the members present.  Any action may be taken by a written instrument signed by all of the members, and any action so taken shall be fully effective as if it had been taken at a meeting.  The Board from time to time may appoint members previously appointed and may fill vacancies, however caused, in the Committee.
12.    Notice.  All notices and other communications required or permitted to be given under this Plan shall be in writing and shall be deemed to have been duly given if delivered personally 

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or mailed first class, postage prepaid, as follows (a) if to the Company – at its principal business address to the attention of the Treasurer; (b) if to any Participant – at the last address of the Participant known to the sender at the time the notice or other communication is sent..
13.    No Right to Continued Employment or Service.  The grant of an Incentive Award shall not obligate the Company or any Related Company to pay a Service Provider any particular amount of remuneration, to continue the employment or other service of the Service Provider after the grant or to make further grants to the Service Provider at any time thereafter
14.    Interpretation.  The terms of this Plan shall be governed by the laws of Delaware, without regard to the conflict of law provisions of any jurisdiction. 

[ SIGNATURE PAGE FOLLOWS ]

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IN WITNESS WHEREOF, the Company has caused this Plan to be executed on this 13th day of May, 2010.

KINSALE CAPITAL GROUP, LTD.

/s/ Michael P. Kehoe                 
Michael P. Kehoe
/s/ Greg M. Share                 
Greg M. Share
                    

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Exhibit 10.7

KINSALE MANAGEMENT, INC.
EMPLOYMENT AND ARBITRATION AGREEMENT
THIS AGREEMENT is dated and effective as of June 4, 2009, between Kinsale Management, Inc. (the “Company”) and Michael P. Kehoe (“Executive”).
WITNESSETH:
WHEREAS, the Company is in the business of underwriting insurance in the excess and surplus lines market;
WHEREAS, in order to develop and grow its business, the Company has offered to employ the Executive as Chief Executive Officer of the Company effective as of June 4, 2009 (“Effective Date”) and the Executive has agreed to be so employed; and
WHEREAS, the parties desire to set forth the terms of such employment in this Employment and Arbitration Agreement (“Agreement”).
NOW, THEREFORE, in consideration of the promises and mutual covenants herein contained, and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties agree as follows.
1. EMPLOYMENT AND TERM. The Company hereby employs Executive as Chief Executive Officer of the Company, and Executive hereby accepts such employment on the terms set forth in this Agreement.  Executive shall, in each case without additional compensation, also serve as Chief Executive Officer of each of Kinsale Capital Group, Ltd. (“KCGL”) and Kinsale Capital Group, Inc. (“KCGI”) and, if requested by the Company, as an officer or member of the board of directors of any Affiliates (as defined in Section 4).  The term of this Agreement shall commence as of the Effective Date and shall continue until the third anniversary of the Effective Date. The term of this Agreement shall thereafter be automatically be renewed for additional one (1) year periods unless written notice to the contrary shall be given by either party to the other not less than ninety (90) days prior to the end of the initial or any renewal term that the term shall not thereafter be renewed. The initial term plus any renewals thereof shall hereafter be referred to as the “Term.”
2. COMPENSATION AND BENEFITS. Executive shall be paid, as an annualized “Base Salary,” not less than Two Hundred Fifty Thousand Dollars ($250,000.00) for calendar year 2009 (pro-rated for the portion of the year that occurs following the Effective Date) and not less than Four Hundred Thousand Dollars ($400,000.00) for each of calendar years 2010 and 2011. Thereafter, Executive’s Base Salary shall be determined by the Board of Directors of the Company (“Board”) in its discretion but, in no event, shall Executive’s annualized Base Salary be less than Four Hundred Thousand Dollars ($400,000.00). Base Salary shall be payable in periodic installments in accordance with the Company’s regular payroll practices. Executive shall be eligible to receive such discretionary bonuses as the Board, in its discretion, may determine. Within one hundred eighty (180) days after the close of each fiscal year of the 

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Company during the Term, the Board shall review Executive’s performance during such fiscal year and award any discretionary bonus to Executive. For the avoidance of doubt, Executive shall not be entitled to a discretionary bonus in respect of performance for 2009.  Executive shall also be entitled, during the Term to participate in all retirement, disability, pension, savings, health, medical, dental, insurance and other fringe benefits or plans (which shall be approved by the Board in its discretion) of the Company generally available to executive employees.  Executive shall be entitled to six (6) weeks of paid vacation per annum (not subject to rollover).  Executive shall be entitled to participate in the pool of common shares of KCGL designated for distribution to KCGL’s management team in accordance with the terms attached hereto as Exhibit A. 
3. DUTIES. Executive shall perform all duties and responsibilities normally associated with the position of Chief Executive Officer of each of the Company, KCGL, and KCGI, and such other reasonable duties as may be assigned to him by the Company. Executive will devote his entire working time, attention and energies to carry out and fulfill his duties and responsibilities under this Agreement. Executive shall not engage in any employment or consulting for any business entity other than the Company without permission.
4. CONFIDENTIAL INFORMATION. Executive will not at any time during the term of this Agreement or at any time thereafter directly or indirectly reveal, divulge or make known to any person, firm or corporation or use for his personal benefit or the benefit of others (except the Company) any “Confidential Information” (as defined below) received or developed by him during the course of his employment.  This restriction will not apply to information that (a) was known to the public before its disclosure to Executive; (b) becomes known to the public after disclosure to Executive through no wrongful act of Executive; or (c) Executive is required to disclose by applicable law, regulation or legal process (provided that Executive shall provide to the extent practicable the Company with prior written notice of the contemplated disclosure and reasonably cooperate with the Company at its expense in seeking a protective order or other appropriate protection of such information).  For the purposes of this Agreement, “Confidential Information” shall mean all confidential and proprietary information and trade secrets of the Company and any of its parent, holding, sister, subsidiary or other affiliated companies whether or not Executive had managerial responsibility (hereinafter referred to collectively as “Affiliates”).  Such Confidential Information includes, but is not limited to, (1) all historical and pro forma projections of loss ratios incurred by the Company or its Affiliates, (2) all historical and pro forma actuarial data relating to the Company or its Affiliates, (3) historical and pro forma financial results, revenue statements, and projections for the Company or its Affiliates, (4) all information relating to the Company’s or its Affiliates’ systems and software (other than the portion thereof provided by the vendor to all purchasers of such systems and software), (5) all information relating to the Company’s or its Affiliates unique underwriting approaches, (6) all information relating to plans for acquisitions of any business entities or blocks of business by the Company or its Affiliates, (7) non-public business plans of the Company or its Affiliates, (8) non-public information and lists relating to the Company’s or its Affiliates’ business relationships with customers, insurance agents, insurance agencies, wholesale brokers, wholesale agents, managing general agents, or other individuals or entities necessary to the sale or marketing of the 

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Company’s or Affiliates’ policies, products, or services; and (9) all other information relating to the financial, business or other affairs of the Company or its Affiliates.
5. COVENANTS OF NON-COMPETITION AND NON-SOLICITATION. Executive acknowledges and agrees that, as the Chief Executive Officer of the Company and certain of its Affiliates, he is responsible for, and directly involved in, developing goodwill and business relationships for the benefit of the Company, he is responsible for the operation and development of the Company’s business in each and every location in the United States where the Company engages in business or which has been or will be targeted by the Company, he will gain knowledge of the Company’s most proprietary and valuable Confidential Information, and has been and will be compensated for the development, and supervising the development, of the same, and that he will gain unique insight into and knowledge of the skills, talents and capabilities of the Company’s key employees.  Executive further acknowledges and agrees that the restrictions contained in Sections 4 and 5 are reasonable and necessary to protect the legitimate business interests of the Company, in view of, among other things, the short duration of the restrictions, the narrow scope of the restrictions, and the Company’s interests in protecting its goodwill, valuable Confidential Information, trade secrets, and its business relationships with customers, insurance agents, insurance agencies, wholesale brokers, wholesale agents, managing general agents, or other individuals or entities necessary to the sale or marketing of the Company’s or its Affiliates’ policies, products, or services.  Executive agrees that his background and capabilities will allow him to seek and accept employment acceptable to him without violation of the restrictions contained in this Agreement.  Executive also acknowledges and agrees that at the inception of his employment with the Company it was agreed that he would be bound by non-competition and non-solicitation restrictions, that such restrictions were a condition of employment, and that this Agreement memorializes those restrictions.  Executive further acknowledges and agrees that his employment with the Company constitutes sufficient consideration for his agreement to the non-competition and non-solicitation restrictions set forth in this Agreement.
(a)    Executive covenants and agrees that during his employment by the Company, and for the period of one (1) year after his employment with the Company ceases for any reason (the “Restricted Period”), that
(1)     he will not directly or indirectly engage in, assist any other person or entity to engage in, have an ownership interest in, or be employed by any Competitive Business in the Territory (as those terms are defined herein);
(2)     he will not directly or indirectly perform or provide any services for or on behalf of any competitor of the Company that are the same or similar in character to the services performed or provided by Executive in the two year period preceding Executive’s termination of employment with the Company; 
(3)     he will not directly or indirectly, either individually or through any other person or entity, induce, advise, request, or solicit any customers, insurance agents, insurance agencies, wholesale brokers, wholesale agents, managing general agents, or other individuals or entities necessary to the sale or marketing of the Company’s or Affiliates’ policies, 

3
        

products, or services, to take any action detrimental to the business relationships between the Company and that individual or entity.  This restriction shall apply only to  those customers, insurance agents, insurance agencies, wholesale brokers, wholesale agents, managing general agents, or other individuals or entities necessary to the sale or marketing of the Company’s or Affiliates’ policies, products, or services with whom the Company had a business relationship in the two-year period preceding Executive’s termination of employment with the Company;
(4)     he will not directly or indirectly, either individually or through any other person or entity, induce, advise, request, or solicit any Key Employees (as defined below) to either leave the Company or to engage in a Competitive Business; 
(5)    he will not hire any Key Employee as an employee, consultant, or otherwise in a Competitive Business; and
(6)    he will not enter into a contract or engage in discussions or negotiations with potential investors in preparation to do any of the activities prohibited by subsections 5(a)(1) through (5) above.
(b)     For purposes of this Agreement, the following terms shall have the meanings set forth below:
(1)     “Competitive Business” shall mean the business of underwriting insurance in the excess and surplus lines market; any other material business that the Company or any of its Affiliates is engaged in as of the date of this Agreement and as the business of the Company and its Affiliates evolves during the Executive’s employment; and any business of the Company and its Affiliates which Executive managed, controlled, or developed during the two year period preceding Executive’s termination of employment with the Company.
(2) “Territory” shall mean
(i) each and every state or other geographical territory where the Company is licensed or authorized to do business, or where the Company is in the process of seeking to be licensed or authorized to do business at the time of Executive’s termination of employment;
(ii) each and every territory in which the Company maintained an office or had business relationships with customers, insurance agents, insurance agencies, wholesale brokers, wholesale agents, managing general agents, or other individuals or entities necessary to the sale or marketing of the Company’s or Affiliates’ policies, products, or services during the two year period preceding Executive’s termination of employment with the Company;
(iii) each and every territory which was assigned to Executive’s management or control during the two year period preceding Executive’s termination of employment with the Company; and

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(iv) each and every territory in which Executive conducted, managed, controlled, or developed Company business during the two year period preceding Executive’s termination of employment with the Company, whether or not such location was formally assigned to Executive.
(3) “Key Employees” shall mean any officer, executive, managerial, sales, marketing, underwriting, claims, finance, actuarial, or supervisory employee of the Company or its Affiliates under Executive’s management authority during the two year period preceding Executive’s termination of employment with the Company.
(c) The restrictions contained in this Section shall not prevent the purchase of ownership by Executive of not more than three percent (3%) of the securities of any class of any corporation, whether or not such corporation is engaged in any Competitive Business, which are publicly traded on any securities exchange or any "over the counter" market.
6. TERMINATION. Executive’s employment hereunder shall terminate under the following circumstances:
(a) Termination for Cause. The Company may terminate the employment of Executive for cause at any time upon written notice to Executive specifying the cause of the termination. For the purposes of this Section, “for cause” shall include only discharge resulting from a determination by the Company that: (i) Executive has willfully violated any material term of this Agreement (including, without limitation, Section 4 or 5 of this Agreement); (ii) Executive commits willful or gross misconduct or has grossly neglected his duties hereunder; (iii) Executive has been convicted of a felony or a crime involving moral turpitude (meaning a crime that includes the commission of an act of depravity, dishonesty or bad morals); or (iv) Executive has committed an act of dishonesty, fraud or embezzlement against the Company.
In the event that the Company provides written notice of termination for cause, Executive shall first be entitled to cure any violation of this Agreement or any alleged neglect of his duties within thirty (30) days of receiving written notice from the Company specifying in detail the factual basis for its belief that Executive willfully violated this Agreement or grossly neglected his duties hereunder. Following expiration of the opportunity to cure, the Company will provide Executive with the opportunity to meet with the Board to address the allegations and may be represented by counsel at this meeting. Following the completion of Executive’s presentation, the Board will take another vote concerning termination and promptly notify Executive of its decision. If Executive is terminated for cause, Executive’s salary and right to receive fringe benefits shall terminate on the date of the final vote by the Board to terminate Executive.
(b) Expiration or Termination Without Cause. The Company may terminate this Agreement at any time without cause or may elect to have the Term of this agreement expire.
(c) Termination by Executive; Resignation.

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(1) Executive may, at his option, terminate this Agreement for Good Reason. “Good Reason” shall mean the occurrence of any one or more of the following events without Executive’s consent:
(i) The assignment to the Executive of any duties inconsistent in any material adverse respect with his position, authority or responsibilities, or any other material adverse change in such position, including titles, authority, or responsibilities; 
(ii) The Company’s requiring the Executive to be based at any office or location more than 35 miles from the location at which he performs his services as of the Effective Date, provided that such relocation is materially adverse to Executive; or 
(iii) Any material breach by the Company of any of the provisions of this Agreement (including, without limitation, any material failure of the Company to provide Executive with the compensation and benefits described in Section 2 above).
Notwithstanding the above, no event shall constitute Good Reason unless Executive provides the Company with written notice of the occurrence of the event constituting Good Reason within thirty (30) days following the occurrence of such event and the Company fails to cure the event  within thirty (30) days following receipt of such notice.
(2) At any time upon sixty (60) days notice to the Company, the Executive may resign his employment. However, nothing in this paragraph shall be construed to alter or affect the Executive’s obligations or the time period set forth in Paragraph 1 with respect to renewal of the Term of this Agreement. 
(e) Termination due to Disability. The Company may terminate Executive’s employment if he is prevented from performing his responsibilities under this Agreement due to Disability. For the purposes of this paragraph, “Disability” is defined as Executive’s inability to perform his duties by reason of any incapacity, physical or mental, for a period of more than ninety (90) days, whether or not consecutive, during any twelve (12) month period.
7. COMPENSATION AND BENEFITS UPON TERMINATION.
(a) In the event that the Company terminates this Agreement without cause or if Executive terminates this Agreement for Good Reason, Executive is entitled to receive:
(1) continuation of Executive’s base salary, as in effect on the date of Executive’s termination, for a period of twelve (12) months after the Termination Date which shall be paid in accordance with the Company’s normal payroll practices;
(2) the continuation at the Company’s expense of coverage under all welfare benefit plans (and benefits under any other plan or program that the Board determines in 

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its sole discretion are appropriate to continue) in which the Executive participates in as of immediately prior to his termination, for a period of twelve (12) months after the Termination Date; and
(3) any unused vacation and any non reimbursed reasonable business expenses.
(b) If Executive is terminated for cause, or due to disability, or the Executive resigns without Good Reason or the Term of this Agreement expires, the Company shall have no further obligations to Executive, except as provided in any stock option or other bonus or incentive plan to which Executive is entitled, and Executive shall have no further rights hereunder.
(c) The payment of amounts and the provision of benefits under this Section 7 are expressly conditioned upon Executive’s execution and non-revocation of a Severance and Release Agreement by which Executive releases any and all legal claims Executive may have against the Company arising out of or relating to employment with the Company within twenty-one days following Executive’s termination of employment (or such longer minimum period as is required by applicable law). All compensation and benefits made pursuant to this Section shall cease if Executive violates any of the terms of Sections 4 or 5 of this Agreement during the-twelve (12) months following his last day of employment. In addition to this remedy, the Company shall have all other remedies provided by this Agreement and by law for the breach of Section 4 or Section 5 hereof.
8. UNIQUENESS OF SERVICES, REMEDIES. Executive acknowledges that the services to be rendered under the provisions of this Agreement are of a special, unique and extraordinary character, involve access to and development of valuable Confidential, Information and trade secrets, and involve developing and protecting the Company's goodwill and business relationships with customers, insurance agents, insurance agencies, wholesale brokers, wholesale agents, managing general agents, or other individuals or entities necessary to the sale or marketing of the Company's or Affiliates' policies, products, or services. Executive acknowledges and agrees that it would be difficult or impossible to replace such unique services, and that the breach of any provision of this Agreement might cause the Company irreparable injury and damage, and consequently the Company shall be entitled, in addition to all other remedies available to it, to injunctive and equitable relief issued by a tribunal of competent jurisdiction to prevent a breach of this Agreement, or any part of it, and to secure the enforcement of this Agreement, without restricting the Company from other legal and equitable remedies. The parties agree that, in addition to any equitable relief or compensatory damages, the tribunal may award reasonable attorneys' fees to the party that prevails in an action brought to enforce the terms of this Agreement.
9. WARRANTIES. Executive represents to the Company, which is relying on this representation, that he is free to enter into this Agreement, and that Executive is not under any restrictions from a former employer or business which would preclude Executive from entering into this Agreement or which would in any way interfere with or be inconsistent with Executive’s obligations to the Company under this Agreement. Executive understands that the Company does 

7
        

not want Executive to disclose to the Company any confidential information that Executive may have obtained from a former employer, although Executive is free to use his general knowledge and past experience in the performance of Executive’s obligations under this Agreement. If any restrictions exist, Executive will discuss such restrictions with the Company and provide all relevant documents and other information related to these restrictions to the Company.
10. NOTICES. Any notices provided for or permitted by this Agreement shall be in writing and shall be deemed to have been duly given when delivered in person or three (3) days after it is deposited in a United States Postal Depository, postage prepaid, registered or certified mail, return receipt requested, addressed to the party at the address set forth below, or to such address as a party may designate upon notice in writing: 
To Executive:
Michael P. Kehoe 
        519 Sleepy Hollow Rd 
        Richmond, VA 23229
To Company: 
Kinsale Management Inc. 
        c/o Greg Share 
        Moelis & Company 
        245 Park Avenue, 32nd Floor 
        New York, NY 10167
11. ENTIRE AGREEMENT; AMENDMENTS. This Agreement constitutes the entire agreement and understanding between Executive and the Company, and this Agreement shall supersede any all other prior agreements and understandings, whether oral or written, relating to the employment of Executive by the Company. This Agreement may not be rescinded, modified or amended except by an instrument in writing signed both parties. 
12. PARTIAL INVALIDITY. The parties intend and agree that if any clause, sentence, provision, section, or paragraph of this Agreement shall be held to be invalid or unenforceable for any reason by a tribunal of competent jurisdiction, the remaining clauses, sentences, provisions, sections or paragraphs shall continue to be valid and enforceable. If a tribunal of competent jurisdiction finds that any part of this Agreement is invalid or unenforceable, but that by limiting such part it would become valid and enforceable, then both Executive and the Company intend, agree, and request that such provision be deemed to be written, intended, construed, and enforced as so limited.
13. GOVERNING LAW. This Agreement shall be construed and administered in accordance with the laws of the State of Delaware, without regard to the principles of conflicts of law which might otherwise apply. 
14. ASSIGNABILITY. This Agreement may not be assigned by Executive, and all its terms and conditions shall be binding upon and inure to the benefit of the Company and its 

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successors. Successors to the Company shall include, without limitation, any corporation or corporations acquiring, directly or indirectly, all or substantially all of the assets of the Company whether by merger, consolidation, purchase or otherwise and such successor shall thereafter be deemed the “Company” for purposes hereof.
15. AGREEMENT TO ARBITRATE DISPUTES.
(a)    Arbitrable Claims.  The Company and Executive mutually consent to the resolution by final and binding arbitration of any and all disputes, controversies or claims related in any way to Executive's employment with the Company, including, but not limited to, any dispute, controversy or claim of alleged discrimination, harassment or retaliation (including, but not limited to, claims based on race, sex, sexual preference, religion, national origin, age, marital or family status, medical condition, handicap or disability), any claim arising out of or relating to this Agreement or the breach thereof, and any dispute as to the arbitrability of a matter under this provision (collectively, "Claims"); provided, however, that nothing herein shall require arbitration of any claim or charge which, by law, cannot be the subject of a compulsory arbitration agreement.  The Company and Executive expressly acknowledge that they waive the right to litigate Claims in a judicial forum before a judge or jury, except as provided in Section 15(f) below.

(b)    Claim Initiation/Time Limits.  A party must notify the other party in writing at the addresses indicated in Section 10 of a request to arbitrate Claims within the same statute of limitations applicable to the legal claim asserted.  The written request for arbitration must specify:  (i) the factual basis on which the Claims are made; (ii) the statutory provision or legal theory under which Claims are made; and (iii) the nature and extent of any relief or remedy sought.

(c)    Procedures.  The arbitration will be administered in accordance with the Employment Arbitration Rules and Mediation Procedures then in effect (“Rules”) of the American Arbitration Association (“AAA”), a copy of which is available upon request to the Company, in Wilmington, Delaware, before a panel of three arbitrators, experienced in employment law and licensed to practice law in that jurisdiction, who have been selected in accordance with such Rules.  With respect to any Claims, the Company and Executive shall pay their own legal fees (including counsel fees), accounting fees and related expenses incurred by them in obtaining or defending any right or benefit under such Claims, including without limitation all court costs, transcript costs, fees of experts, witness fees, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees and all other disbursements or expenditures of the types customarily incurred in connection with prosecuting, defending or investigating any arbitration, action or suit irrespective of the outcome of such arbitration, action, or suit; provided, however, that, irrespective of the outcome of any arbitration, the Company will pay any filing costs, arbitrator fees or expenses for any arbitration proceeding.  

(d)    Responsibilities of Arbitrator; Award; Judgment.  The arbitration panel will act as the impartial decision maker of any Claims that come within the scope of this arbitration provision.  The arbitration panel will have the powers and authorities provided by the 

9
        

Rules.  The arbitration panel will have the authority to issue a summary disposition if there are no material factual issues in dispute requiring a hearing and the Company or Executive is clearly entitled to an award in its, his or her favor.  The arbitration panel will not have the power or authority to add to, detract from or modify any provision of this Agreement, or any related agreements or plans, including but not limited to any equity awards.  The arbitration panel, in rendering an award in any arbitration conducted pursuant to this provision, shall issue a reasoned award stating the findings of fact and conclusions of law on which it is based, and the arbitrators shall be required to follow the law of the state designated by the parties herein.  Any judgment on or enforcement of any award, including an award providing for interim or permanent injunctive relief, rendered by the arbitration panel may be entered, enforced or appealed from in any court having jurisdiction thereof.  Any arbitration proceedings, decision or award rendered hereunder, and the validity, effect and interpretation of this arbitration provision, shall be governed by the Federal Arbitration Act, 9 U.S.C. § 1 et seq.

(e)    Confidentiality.  It is part of the essence of this Agreement that any Claims hereunder shall be resolved expeditiously and as confidentially as possible.  Accordingly, the Company and Executive agree that all proceedings in any arbitration shall be conducted under seal and kept strictly confidential.  In that regard, no party shall use, disclose or permit the disclosure of any information, evidence or documents produced by any other party in the arbitration proceedings or about the existence, contents or results of the proceedings except as necessary and appropriate for the preparation and conduct of the arbitration proceedings, or as necessary and appropriate for submission in any regulatory investigation or to defend any Claims resolved in the arbitration, or as may be required by any legal process, or as required in an action in aid of arbitration or for enforcement of or appeal from an arbitral award.  Before making any disclosure permitted by the preceding sentence, the party intending to make such disclosure shall give the other party reasonable written notice of the intended disclosure and afford such other party a reasonable opportunity to protect its interests.

(f)    Injunctive Relief.  Notwithstanding the foregoing, each party shall be entitled to seek injunctive or other equitable relief under Sections 4 and 5 from any court of competent jurisdiction in Wilmington, Delaware without the need to resort to arbitration, and each party hereto hereby consents to the jurisdiction in any such court and unconditionally waives any defense of forum non conveniens, and irrevocably agrees to be bound by any judgment rendered thereby in connection with this Agreement.

16.  COMPLIANCE WITH CODE SECTION 409A.  The intent of the parties is that payments and benefits under this Agreement comply with Section 409A of the Internal Revenue Code (“Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted and administered to be in compliance therewith. Each amount to be paid or benefit to be provided under this Agreement shall be construed as a separate identified payment for purposes of Section 409A and any payments described in this Agreement that are due within the "short term deferral period" as defined in Section 409A shall not be treated as deferred compensation unless applicable law requires otherwise.  Notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A, Executive shall not be considered to have terminated employment 

10
        

with the Company for purposes of this Agreement and no payments shall be due to Executive under Section 7 of this Agreement until Executive would be considered to have incurred a “separation from service” from the Company within the meaning of Section 409A.  To the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to this Agreement during the six-month period immediately following Executive’s termination of employment shall instead be paid on the first business day after the date that is six months following Executive’s termination of employment (or upon Executive’s death, if earlier).
* * * * *

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.
THIS CONTRACT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES.

KINSALE MANAGEMENT, INC.
By:  

            
/s/ Greg M. Share________________
Greg M. Share
            
            
/s/ Michael P. Kehoe________________
Michael P. Kehoe 

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EXHIBIT A

Summary of Terms of Restricted Stock Grant

	
		
	Award
	An award (the "Award") of 22% the pool of common shares (the "Shares") of Kinsale Capital Group Limited (the "Company") designated by the Company for distribution to the management team.  The Award shall be subject to the restrictions set forth below.

All terms, unless otherwise defined herein, shall have the meanings assigned to such terms in the employment agreement entered into between the Executive and Kinsale Management, Inc.

	Vesting Schedule
	Restrictions will lapse over a seven-year period, with the vesting restrictions applicable to 12.5% of total number of Shares subject to the Award (the "Restricted Shares") lapsing at the initial closing and the vesting restrictions applicable an additional 12.5% of the total number of Restricted Shares lapsing on each subsequent anniversary of the initial closing, provided in each case that Executive is employed by the Company on the applicable vesting date.

In the event of Executive's termination of employment due to Disability, any vesting restrictions that would have lapsed in the year following Executive's termination of employment will lapse effective as of the termination and such Restricted Shares will be treated as Vested Shares.  

	Termination of Employment
	If Executive resigns (with or without Good Reason) or is terminated without Cause, the Company shall be permitted, but shall not be obligated, to repurchase unvested Restricted Shares at cost and repurchase previously vested Shares granted pursuant to the Award ("Vested Shares") at fair market value.  

In the event that Executive is terminated with Cause, the Company shall be permitted, but not obligated, to repurchase Vested Shares at cost and unvested Restricted Shares shall be forfeited.

	Transferability Restrictions
	Restricted Shares subject to the Award are not transferable at any time.

Executive shall be prohibited from selling or encumbering Vested Shares until the Company effects a Qualified Public Offering (a “QPO”, which shall be defined as a public offering raising a minimum of $75 million of proceeds to the Company at a valuation per share of common stock of at least 3.0x the original purchase price of the Preferred) and thereafter only in a percentage that is equal to the percentage of common shares Moelis Capital Partners LLC and the related investors (the "Investors") have sold or distributed prior thereto; provided, however, that Executive will have tag-along rights on the Investor’s major sales of common shares.

	Change in Control
	All vesting restrictions on the Restricted Shares will lapse upon the sale of the Company.  Upon a QPO, vesting restrictions that would have lapsed in the year following the QPO will lapse as of the QPO and the date on which all other vesting restrictions would have lapsed will be accelerated by one year.

	Restrictive Covenants
	The vesting of the Award will be subject to continued compliance with the confidentiality, non-compete, and other restrictive covenants (the "restrictive covenants") contained in the employment agreement with Executive.  If Executive fails to comply with the restrictive covenants, any Restricted Shares and any Vested Shares may be repurchased by the Company at cost.

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