Document:

Form of Option Agreement under the 2008 Stock Incentive Plan

 Exhibit 10.3 
 MAX CAPITAL GROUP LTD. 
 2008 STOCK INCENTIVE PLAN 
 [INCENTIVE] [NON-QUALIFIED] STOCK OPTION AGREEMENT 
 THIS AGREEMENT, made this      day of                     , 200  
(the “Grant Date”), by and between Max Capital Group Ltd. (the “Company”) and
[                    ] (the “Optionee”). 
 W I T N E S S E T H: 
 WHEREAS, pursuant to the Max Capital Group Ltd. 2008 Stock Incentive Plan, as
amended (the “Plan”), the Company desires to afford the Optionee the opportunity to acquire, or enlarge, his/her ownership of the Company’s common shares, $1.00 par value per share (“Common
Shares”), so that he/she may have a direct proprietary interest in the Company’s success. 
 NOW, THEREFORE, in
consideration of the covenants and agreements herein contained, the parties hereto hereby agree as follows: 
 1. Grant of
Option. Subject to the terms and conditions set forth herein and in the Plan, the Company hereby grants to the Optionee, during the period commencing on the date of this Agreement and ending on the close of business on the day of the [tenth]
1 anniversary of the date hereof (the “Termination Date”), the right and option (the right to purchase any one Common Share
hereunder being an “Option”) to purchase from the Company, at a price of $             per share (the “Option Price”), an aggregate of
[                    ] Common Shares (the “Option Shares”). 
 2. Limitation on Exercise of Option. Subject to the terms and conditions set forth herein and the Plan, the Optionee will be vested in
    % of the Options on and after the                      anniversary of the Grant Date and an additional
    % on each of the
                                        
         anniversaries of the Grant Date (each such anniversary, a “Vesting Date”); provided, that, except as otherwise provided herein, the Optionee is then employed
by the Company or any of its Subsidiaries. 
 3. Termination of Employment. Any Options held by the Optionee upon termination
of employment shall remain exercisable as follows, subject to the conditions set forth in Section 4 hereof: 
 (a) Accelerated
Vesting; Forfeiture. If the Optionee’s termination of employment is due to death or Retirement (as defined below), or if the Optionee’s employment is terminated by the Company for Disability (as defined below) or without Cause (as
defined in the Plan), by the Optionee for Good Reason (as defined below), or upon the Company’s failure to renew the Optionee’s work permit in Bermuda if the Company does not offer the Optionee a comparable position of employment by one of
the Company’s Subsidiaries, a pro rata portion of 
  

	1	Term must be 5 years if the Option is an Incentive Stock Option granted to a 10% Shareholder. 

  

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the Options which would have vested upon the next Vesting Date shall vest as of the date of such termination, and all other unvested Options shall
immediately terminate and be forfeited; provided, that, with respect to the failure to renew a Bermuda work permit, if the failure by the Company or its Subsidiary to obtain such work permit is directly or indirectly related to any
actions or omissions taken by the Optionee, as determined by the Company in its sole discretion, then all unvested Options shall be immediately forfeited upon the date of termination. The pro rata portion of the Options that vests shall be
calculated by multiplying the number of Options which would have vested upon the next Vesting Date by a fraction, the numerator of which shall equal the number of consecutive days since the most recent Vesting Date that the Optionee is employed by
the Company to the date of termination, and the denominator of which shall equal 365 (rounded to the nearest whole number). If the Optionee’s termination of employment is for any other reason (including, without limitation, a termination by the
Company for Cause), all unvested Options shall terminate on the date of termination. 
 (b) Post-Termination Excerise Period. If the
Optionee’s termination of employment is due to death or Retirement, or if the Optionee’s employment is terminated by the Company for Disability or without Cause, by the Optionee for Good Reason, or upon the Company’s failure to renew
the Optionee’s work permit in Bermuda under the circumstances set forth above in Section 3(a), to the extent vested, all vested Options shall be exercisable by the Optionee or any prior transferee of the Option or by the
Optionee’s designated beneficiary, or, if none, the person(s) to whom such Optionee’s rights under the Option are transferred by will or the laws of descent and distribution for one (1) year following such termination of employment
(but in no event later than the Termination Date), and shall thereafter terminate; [provided, that, any exercise of an Incentive Stock Option beyond (a) three (3) months after the date of termination when the termination is
for any reason other than the Optionee’s death or Disability or (b) twelve (12) months after the date of termination when the termination is for the Optionee’s Disability will cause the Option to be deemed a Nonqualified Stock
Option and not an Incentive Stock Option.] If the Optionee’s termination of employment is for any other reason other than on account of termination by the Company for Cause, all vested Options, shall be exercisable for a period of 90 days
following such termination of employment (but in no event beyond the term of the Option), and shall thereafter terminate. An Optionee’s status as an employee shall not be considered terminated in the case of a leave of absence agreed to in
writing by the Company (including, but not limited to, military and sick leave); provided, that, such leave is for a period of not more than 90 days or re-employment upon expiration of such leave is guaranteed by contract or statute.
If the Optionee’s employment is terminated by the Company for Cause, both the unvested and vested portion of the Options shall terminate on the date of termination. 
 (c) Certain Definitions. For purposes of this Agreement, “Disability” shall mean termination upon 30 days’ notice in the event that the Optionee suffers a mental or physical
disability that shall have prevented him/her from performing his/her material duties for a period of at least 120 consecutive days or 180 non-consecutive days within any 365 day period; provided, that, the Optionee shall not have
returned to full-time performance of his/her duties within 30 days following receipt of such notice. The Optionee shall have “Good Reason” to terminate his/her employment within 30 days after the Optionee has knowledge of the
occurrence, without the Optionee’s written consent, of one of the following events that has not been cured, if curable, within 30 days after a notice of termination has been given by the Optionee to the Company or its Subsidiary, as applicable:
(i) any material and adverse change to 

  

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the Optionee’s duties or authority which are inconsistent with his/her title and position, (ii) a material diminution of the Optionee’s title
or position; (iii) a reduction of the Optionee’s base salary; or (iv) any other reason which the Company determines in its sole discretion to be a Good Reason; provided, however, that if termination for “Good
Reason” is defined in the Optionee’s employment agreement, the definition in the employment agreement shall apply for purposes of this Section 3. “Retirement” shall be defined as when the Optionee
retires from the Company if the sum of the Optionee’s age and years of service as an employee of the Company or any Subsidiaries equals at least 55. 
 4. Method of Exercising Option. 
 (a) Payment of Option Price. Options, to the extent
vested, may be exercised, in whole or in part, by giving written notice of exercise to the Company specifying the number of Common Shares to be purchased. Such notice shall be accompanied by the payment in full of the Option Price. Such payment
shall be made: (i) in cash, (ii) by surrender of Common Shares owned by the holder of the Option that are Mature Shares (as defined in the Plan), (iii) by means of a broker-assisted “cashless exercise,” (iv) by a
“net exercise” method whereby the Company withholds from the delivery of Common Shares for which the Option was exercised that number of Common Shares having a Fair Market Value equal to the aggregate Option Price for the Common Shares for
which the Option was exercised, or (v) by a combination of any such methods. 
 (b) Tax Withholding. At the time of exercise, the
Optionee shall pay to the Company such amount as the Company deems necessary to satisfy its obligation, if any, to withhold federal, state or local income or other taxes incurred by reason of the exercise of Options granted hereunder. Such payment
shall be made: (i) in cash, (ii) by having the Company withhold from the delivery of Common Shares for which the Option was exercised that number of Common Shares having a Fair Market Value equal to the minimum withholding obligation,
(iii) by delivering Common Shares owned by the holder of the Option that are Mature Shares, or (iv) by a combination of any such methods. For purposes hereof, Common Shares shall be valued at Fair Market Value. 
 5. Issuance of Shares. Except as otherwise provided in the Plan, as promptly as practical after receipt of such written notification of
exercise and full payment of the Option Price and any required income tax withholding, the Company shall issue or transfer to the Optionee the number of Option Shares with respect to which Options have been so exercised (less shares withheld for
payment of the Option Price and/or in satisfaction of tax withholding obligations, if any), and shall deliver to the Optionee a certificate or certificates therefor, registered in the Optionee’s name. 
 6. Company; Optionee. 
 (a) The
term “Company” as used in this Agreement with reference to employment shall include the Company and its Subsidiaries, as appropriate. 
 (b) Whenever the word “Optionee” is used in any provision of this Agreement under circumstances where the provision should logically be construed to apply to the 

  

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beneficiaries, the executors, the administrators, or the person or persons to whom the Options may be transferred by will or by the laws of descent and
distribution, the word “Optionee” shall be deemed to include such person or persons. 
 7. Non-Transferability. The
Options are not transferable by the Optionee otherwise than to a designated beneficiary upon death or by will or the laws of descent and distribution, and are exercisable during the Optionee’s lifetime only by him/her (or his or her legal
representative in the event of incapacity). No assignment or transfer of the Options, or of the rights represented thereby, whether voluntary or involuntary, by operation of law or otherwise (except to a designated beneficiary, upon death, by will
or the laws of descent and distribution), shall vest in the assignee or transferee any interest or right herein whatsoever, but immediately upon such assignment or transfer the Options shall terminate and become of no further effect. 
 8. Change in Control. Upon the occurrence of a Change in Control (as defined in the Plan), all outstanding Options shall automatically
become vested and immediately exercisable in full. 
 9. Rights as Shareholder. The Optionee or a transferee of the Options
shall have no rights as shareholder with respect to any Option Shares until he/she shall have become the holder of record of such shares, and no adjustment shall be made for dividends or distributions or other rights in respect of such Option Shares
for which the date on which shareholders of record are determined for purposes of paying cash dividends on Common Shares is prior to the date upon which he/she shall become the holder of record thereof. 
 10. Adjustments. The Options granted hereunder are subject to adjustment pursuant to Section 12 of the Plan. 
 11. Compliance with Law. Notwithstanding any of the provisions hereof, the Optionee hereby agrees that he/she will not exercise the
Options, and that the Company will not be obligated to issue or transfer any shares to the Optionee hereunder, if the exercise hereof or the issuance or transfer of such shares shall constitute a violation by the Optionee or the Company of any
provisions of any law or regulation of any governmental authority. Any determination in this connection by the Committee shall be final, binding and conclusive. The Company shall in no event be obliged to register any securities pursuant to the
Securities Act of 1933 (as now in effect or as hereafter amended) or to take any other affirmative action in order to cause the exercise of the Options or the issuance or transfer of shares pursuant thereto to comply with any law or regulation of
any governmental authority. 
 12. Notice. Every notice or other communication relating to this Agreement shall be in writing,
and shall be mailed to or delivered to the party for whom it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other party as herein provided; provided, that, unless and
until some other address be so designated, all notices or communications by the Optionee to the Company shall be mailed or delivered to the Company at its principal executive office, and all notices or communications by the Company to the Optionee
may be given to the Optionee personally or may be mailed to him/her at his/her address as recorded in the records of the Company. 
  

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 13. [Incentive Stock Options] [Non-Qualified Stock Options]. [The Options granted hereunder
are not intended to be incentive stock options within the meaning of Section 422 of the Code.] [The Options granted hereunder are intended to be incentive stock options within the meaning of Section 422 of the Code. The Company shall have
no liability to any Optionee or any other person if an Option designated as an Incentive Stock Option fails to qualify as such at any time. If the Option is an Incentive Stock Option, and if the Optionee sells or otherwise disposes of any of the
Option Shares acquired pursuant to the Incentive Stock Option on or before the later of (a) the date two (2) years after the Grant Date, and (b) the date one (1) year after transfer of such Option Shares to the Optionee upon
exercise of the Option, the Optionee shall immediately notify the Company in writing of such disposition. In the event any such disposition causes the Company to incur additional federal, state, or local tax withholding obligations, the Optionee
will satisfy any such obligations in cash or out of the current wages or other compensation payable to the Optionee.] 
 14. Binding
Effect. Subject to Section 7 hereof, this Agreement shall be binding upon the heirs, executors, administrators and successors of the parties hereto. 
 15. Governing Law. This Agreement shall be construed and interpreted in accordance with the laws of the State of New York without regard to its conflict of law principles. 
 16. Plan. The terms and provisions of the Plan are incorporated herein by reference, and the Optionee hereby acknowledges receiving a copy
of the Plan. In the event of a conflict or inconsistency between the terms and provisions of the Plan and the provisions of this Agreement, the Plan shall govern and control. All capitalized terms not defined herein shall have the meaning ascribed
to them as set forth in the Plan. 
 17. Interpretation. Any dispute regarding the interpretation of this Agreement shall be
submitted by the Optionee or the Company to the Committee for review. The resolution of such a dispute by the Committee shall be binding on the Company and the Optionee. 
 18. No Right to Continued Employment. Nothing in this Agreement shall be deemed by implication or otherwise to impose any limitation on any right of the Company to terminate the Optionee’s
employment. 
 19. Section 409A Limitation. The Company shall have no liability to the Optionee or any other person if an
Option is determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code and the terms of such Option do not satisfy the additional conditions applicable to nonqualified deferred
compensation under Section 409A of the Code. 
  

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 20. [Non-Solicitation Agreement. By accepting the Options and as a condition thereof, the
Optionee agrees to comply with the Company’s following policies with respect to non-solicitation:                     .]2 
 21. Severability. Every provision
of this Agreement is intended to be severable and any illegal or invalid term shall not affect the validity or legality of the remaining terms. 
 22. Headings. The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation of construction, and shall not constitute a part of this Agreement. 
 23. Signature in Counterparts. This Agreement may be signed in counterparts, each of which shall be deemed an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument 
 IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the date set forth below. 
  

			
	MAX CAPITAL GROUP LTD.
		
	By:	 	  

	Name:	 	
	Title:	 	
	Date	 	
	
	OPTIONEE
		
	By:	 	  

	Name:	 	
	Date:	 	

  

	2	The Committee may include non-solicitation provisions in certain awards. 

  

 6Form of Director Restricted Stock Agreement under the 2008 Stock Incentive Plan

 Exhibit 10.4 
 For Nonemployee Directors 
 MAX CAPITAL GROUP LTD. 
 2008 STOCK INCENTIVE PLAN 
 RESTRICTED
STOCK AWARD AGREEMENT 
 This Restricted Stock Award Agreement (the “Agreement”) is made, effective as of the
     day of                     , 2       (the “Grant
Date”), by and between Max Capital Group Ltd. (the “Company”) and _______________ (the “Grantee”). 
 RECITALS: 
 WHEREAS, the Company has adopted the Max Capital Group Ltd. 2008 Stock Incentive
Plan (the “Plan”) pursuant to which awards of restricted common shares of the Company (“Common Shares”) may be granted; and 
 WHEREAS, the Committee has determined that it is in the best interests of the Company and its shareholders to grant the award of restricted Common
Shares provided for herein (the “Restricted Stock Award”) to the Grantee in recognition of the Grantee’s services to the Company, such grant to be subject to the terms set forth herein. 
 NOW, THEREFORE, in consideration for the mutual covenants hereinafter set forth, the parties hereto agree as follows: 
  

	1.	Grant of Restricted Stock Award. Pursuant to Section 9 of the Plan, the Company hereby issues to the Grantee on the Grant Date a Restricted Stock Award consisting
of, in the aggregate,                      Common Shares in the capital of the Company (hereinafter called the “Restricted
Stock”). 

  

	2.	Incorporation by Reference. The provisions of the Plan are hereby incorporated herein by reference. Except as otherwise expressly set forth herein, this
Agreement shall be construed in accordance with the provisions of the Plan and any capitalized terms not otherwise defined in this Agreement shall have the definitions set forth in the Plan. The Committee shall have the authority to interpret and
construe the Plan and this Agreement and to make any and all determinations thereunder, and its decision shall be binding and conclusive upon the Grantee and his/her legal representative in respect of any questions arising under the Plan or this
Agreement. 

  

	3.	Restrictions. Except as provided in the Plan or this Agreement, the restrictions on the Restricted Stock are that they will be forfeited by the Grantee and all
of the Grantee’s rights to such shares shall immediately terminate without any payment or consideration by the Company, in the event of any sale, assignment, transfer, hypothecation, pledge or other alienation of such Restricted Stock made or
attempted, whether voluntary or involuntary, and if involuntary whether by process of law in any civil or criminal suit, action or proceeding, whether in the nature of an insolvency or bankruptcy proceeding or otherwise, without the written consent
of the Board. 

  

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	4.	Vesting. 

  

	 	(a)	Except as otherwise provided herein, the restrictions described in Section 3 above will lapse with respect to [100% of the Restricted Stock on the third
anniversary]1 of the Grant Date (the “Vesting Date”); provided, that, except as otherwise provided herein, the
Grantee is then serving as a director on the Board. If the Grantee’s service as a director on the Board is terminated at any time prior to the Vesting Date, the unvested Restricted Stock shall automatically be forfeited upon such cessation of
service, unless otherwise provided in this Section 4. 

  

	 	(b)	Death, Disability. In the event of the Grantee’s death or upon the Grantee’s removal from the Board on account of Disability (as defined below), a pro rata portion
of the Restricted Stock shall vest as of the date of such termination, and all other unvested Restricted Stock shall immediately terminate and be forfeited. The pro rata portion of the Restricted Stock that vests shall be calculated by multiplying
the number of shares of Restricted Stock by a fraction, the numerator of which shall equal the number of consecutive days the Grantee has served as a director on the Board from the Grant Date to the date of removal, and the denominator of which
shall equal                      (rounded to the nearest whole number). 

 For purposes of this Agreement, “Disability” shall mean the removal of the Grantee as a director on the Board upon 30 days’
notice in the event that the Grantee suffers a mental or physical disability that shall have prevented him/her from performing his/her material duties for a period of at least 120 consecutive days or 180 non-consecutive days within any 365 day
period; provided, that, the Grantee shall not have returned to full-time performance of his/her duties within 30 days following receipt of such notice. 
  

	 	(c)	Retirement. Upon the Grantee’s Retirement, vesting shall continue according to the schedule set forth in Section 4(a) as if the Grantee continued to serve as a
director on the Board. 

 For purposes of this Agreement, “Retirement” shall be defined as the
Grantee’s termination of service as a director on the Board on account of his/her voluntary resignation, death or Disability if the sum of the Grantee’s age and years of service as a director on the Board equals at least 55. 
  

	 	(d)	Change in Control. Upon the occurrence of a Change in Control (as defined in the Plan), all Restricted Stock shall automatically become vested and immediately nonforfeitable
in full. 

  

	5.	Rights as Shareholder; Dividends. The Grantee shall be the record owner of the Restricted Shares unless and until such Common Shares are sold or otherwise
disposed of, and as record owner shall be entitled to all rights of a shareholder of the Company, including, without limitation, voting rights, if any, with respect to the Restricted Shares and the right to receive dividends, if any, while the
Restricted Shares are held in custody. 

  

	1	The Compensation Committee (the “Committee”) of the Company’s Board of Directors may include a different vesting period or a pro rata vesting provision
in certain awards. 

  

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	6.	Compliance with Laws and Regulations. The issuance and transfer of Common Shares shall be subject to compliance by the Company and the Grantee with all applicable
requirements of securities laws and with all applicable requirements of any stock exchange on which the Company’s Common Shares may be listed at the time of such issuance or transfer. 

  

	7.	No Right to Continued Service. Nothing in this Agreement shall confer upon the Grantee any right to continue to serve the Company or shall affect the right of
the Company to terminate the Grantee’s service as a director. 

  

	8.	Notices. All notices, demands and other communications provided for or permitted hereunder shall be made in writing and shall be delivered by registered or
certified first class mail, return receipt requested, telecopier, courier service or personal delivery: 

 If to the Company:

 Max Capital Group Ltd. 
 Max
House 
 2 Front Street 
 Hamilton
HM 11 
 Bermuda 
 If to the
Grantee, at the Grantee’s last known address on file with the Company. 
 All such notices, demands and other communications shall be
deemed to have been duly given when delivered by hand, if personally delivered; when delivered by courier, if delivered by commercial courier service; five (5) business days after being deposited in the mail, postage prepaid, if mailed; and
when receipt is mechanically acknowledged, if telecopied. 
  

	9.	Bound by Plan. By signing this Agreement, the Grantee acknowledges that he/she has received a copy of the Plan and has had an opportunity to review the Plan and
agrees to be bound by all of the terms and provisions of the Plan. 

  

	10.	Beneficiary. The Grantee may file with the Committee a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from
time to time, amend or revoke such designation. If no designated beneficiary survives the Grantee, the executor or administrator of the Grantee’s estate shall be deemed to be the Grantee’s beneficiary. 

  

	11.	Successors. The terms of this Agreement shall be binding upon and inure to the benefit of the Company, its successors and assigns, and on the Grantee and the
beneficiaries, executors and administrators, heirs and successors of the Grantee. 

  

	12.	 Amendment of Restricted Stock Award. Subject to Section 14 of this Agreement, the Committee at any time and from time to time may amend
the terms of this Restricted 

  

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Stock Award; provided, however, the Grantee’s rights under this Restricted Stock Award shall not be materially and adversely affected by
any such amendment without the Grantee’s consent. 

  

	13.	Adjustments. This Restricted Stock Award is subject to adjustment pursuant to Section 12 of the Plan. 

  

	14.	Governing Law; Modification. This Agreement shall be governed by the laws of the state of New York without regard to the conflict of law principles. The
Agreement may not be modified except in writing signed by both parties. 

  

	15.	Interpretation. Any dispute regarding the interpretation of this Agreement shall be submitted by the Grantee or the Company to the Committee for review. The
resolution of such a dispute by the Committee shall be binding on the Company and the Grantee. 

  

	16.	Severability. Every provision of this Agreement is intended to be severable and any illegal or invalid term shall not affect the validity or legality of the
remaining terms. 

  

	17.	Headings. The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation of construction, and shall
not constitute a part of this Agreement. 

  

	18.	Signature in Counterparts. This Agreement may be signed in counterparts, each of which shall be deemed an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument. 

 [SIGNATURE PAGE FOLLOWS] 
  

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 IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of the date set forth below.

  

			
	MAX CAPITAL GROUP LTD.
		
	By:	 	  

	Name:	 	
	Title:	 	
	Date:	 	
	
	GRANTEE
		
	By:	 	  

	Name:	 	
	Date:	 	

  

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