Document:

Exhibit 10.1

 

GLOBAL GP LLC

AMENDMENT NO. 4 TO 

EMPLOYMENT AGREEMENT

 

THIS AMENDMENT NO. 4 TO EMPLOYMENT AGREEMENT (this “Amendment”)
is made and entered into as of Nov. 2, 2010 by and between Global GP LLC, a
Delaware limited liability company (the “Company”), and Edward J.
Faneuil (the “Executive”). Capitalized terms used but not otherwise
defined herein shall have the meanings ascribed to such terms in that certain
Employment Agreement made as of February 1, 2007, as amended by Amendment No. 1
to Employment Agreement dated as of December 31, 2008, by Amendment No. 2
to Employment Agreement dated as of February 4, 2009, and by Amendment No. 3
dated March 11, 2009 by and between the Company and the Executive (the “Employment
Agreement”).

 

WHEREAS, the Company
and the Executive desire to make certain modifications to the Employment
Agreement as set forth below, and in accordance with Section 18 of the
Employment Agreement.

 

NOW, THEREFORE, in
consideration of the mutual promises and agreements set forth herein, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto, each intending to be legally bound,
hereby agree as follows:

 

1.                                       Amendment to Section 8(b) of
the Employment Agreement.

 

Section 8(b) of the Employment Agreement
is hereby amended by deleting such section in its entirety and replacing it
with the following:

 

(b)           Termination
by the Company Without Cause; Constructive Termination. If the Executive’s
employment is terminated by the Company without Cause or by the Executive for
Constructive Termination, then the Company shall pay to the Executive an amount
equal to the product of (X) the sum of (i) the Base Salary as in
effect on the Date of Termination, plus (ii) if such termination occurs
within twelve months of a Change of Control, an amount equal to the target
incentive amount under the then applicable short term incentive plan for the
fiscal year in which the termination occurs (Y) multiplied by two (2) (the
“Severance Amount”). The Executive shall be paid the Severance Amount in
twenty-four (24) equal monthly installments commencing on the first day of the
month following the Date of Termination. In addition, the Company shall provide
health care continuation coverage benefits to the Executive pursuant to the
Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) and shall
continue to pay the applicable percentage of the medical insurance premium the
Company pays for active employees towards Executive’s COBRA coverage during the
Executive’s applicable COBRA coverage period not to exceed a maximum of
eighteen (18) months following the Date of Termination. The Company’s
obligation to provide COBRA benefits to the Executive shall be subject to the
Executive making an effective election in accordance with COBRA. In the event
that the Executive’s employment is terminated by the Company without Cause or
by the Executive for Constructive Termination at any time within three (3) months
before a Change in Control and twelve months following a Change in Control,
then, in addition to the foregoing severance compensation and benefits, the
Executive shall receive 100% accelerated vesting on any and all outstanding
Company options, restricted uits, phantom units, unit appreciation rights and
other similar rights (under the LTIP or otherwise) held by the Executive as in
effect on the

 

 

Date of Termination, such accelerated vesting to occur on the later of (i) the
Date of Termination, or (ii) the date of the Change of Control.

 

2.             Captions.
The captions of this Amendment are for convenience and reference only and in no
way define, describe, extend or limit the scope or intent of this Amendment, or
the intent of any provision hereof.

 

3.             Choice of Law.
This Amendment shall be governed by and construed in accordance with the laws
of the Commonwealth of Massachusetts, other than conflicts of law provisions
thereof.

 

4.             Severability.
The provisions of this Amendment are severable, and the invalidity of any
provision shall not affect the validity of any other provision.

 

5.             Counterparts;
Facsimile. This Amendment may be executed and delivered by facsimile
signature and in counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument.

 

6.             Entire Agreement.
This Amendment constitutes the full and entire understanding and agreement
between the parties with respect to this Amendment. Except as otherwise
specifically amended herein, the Employment Agreement shall remain unchanged,
in effect and in full force.

 

IN WITNESS WHEREOF, the parties
have duly executed this Amendment as of the date first written above.

 

	
  GLOBAL GP LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Eric Slifka

  	
   

  	
   

  
	
  Name: Eric Slifka

  	
   

  	
   

  
	
  Title: President and CEO

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EDWARD J. FANEUIL

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ edward j. faneuilExhibit 10.1

 

ARCH CAPITAL GROUP LTD.

 

Restricted Share Unit Agreement

 

THIS
AGREEMENT, dated as of May 5, 2010, between Arch Capital Group Ltd. (the “Company”),
a Bermuda company, and Mark Lyons (the “Employee”).

 

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

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants contained
herein, the parties hereto agree as follows.

 

1.                                       Award of Share
Units.  Pursuant to the provisions of the Plan, the terms of which
are incorporated herein by reference, the Employee is hereby awarded 8,000
Restricted Share Units (the “Award”), subject to the terms and conditions
herein set forth.  Capitalized terms used
herein and not defined shall have the meanings set forth in the Plan.  In the event of any conflict between this
Agreement and the Plan, the Plan shall control.

 

2.                                       Terms and
Conditions.  It is understood and agreed that the
Award of Restricted Share Units evidenced hereby is subject to the following
terms and conditions:

 

(a)                                  Vesting of
Award.  Subject to Section 2(b) below
and the other terms and conditions of this Agreement, this Award shall become
vested in three equal annual installments on the first, second and third
anniversaries of the date hereof.  Unless
otherwise provided by the Company, all amounts receivable in connection with
any adjustments to the Shares under Section 4(c) of the Plan or Section 2(e) below
shall be subject to the vesting schedule in this Section 2(a).

 

(b)                                 Termination of
Service; Forfeiture of Unvested Share Units.

 

(i)                           In the event
the Employee ceases to be an employee of the Company prior to the date the
Restricted Share Units otherwise become vested due to his or her death or
Permanent Disability (as defined in the Company’s Incentive Compensation Plan
on the date hereof), the Restricted Share Units shall become immediately vested
in full upon such termination of employment.

 

(ii)                        In the event of
termination of employment (other than by the Company for Cause, as such term is
defined in the Company’s Incentive Compensation Plan on the date hereof) after
the attainment of Retirement Age (as defined in the Company’s Incentive
Compensation Plan on the date hereof), the Restricted Share Units shall
continue to vest on the schedule set forth in Section 2(a) above so
long as the Employee does not engage in any activity in competition with any
activity of the Company or any of its Subsidiaries other than serving on

 

 

the board of directors (or similar governing body) of another company
or as a consultant for no more than 26 weeks per calendar year (“Competitive
Activity”).  In the event the Employee
engages in a Competitive Activity, any unvested Restricted Share Units shall be
forfeited by the Employee and become the property of the Company.

 

(iii)                     In the event
the Employee ceases to be an employee of the Company after a Change in Control
(as defined below) due to termination (A) by the Company not for Cause or (B) by
the Employee for Good Reason (as defined in the Employment Agreement, dated as
of August 1, 2006, as amended, between the Employee and Arch Insurance
Group Inc.), in either case, on or before the second anniversary of the
occurrence of the Change in Control, the Restricted Share Units, to the extent
not already vested, shall become immediately vested in full upon such
termination of employment.

 

(iv)                    If the Employee
ceases to be an Employee of the Company for any other reason prior to the date
the Restricted Share Units become vested, the unvested Restricted Share Units
shall be forfeited by the Employee and become the property of the Company;
provided that, in the event of a Redundancy (as defined below), the Committee,
in its sole discretion, may, in accordance with its authority under the Plan,
determine that the Restricted Share Units, to the extent not vested, shall
become vested upon such termination of employment.

 

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

 

(vi)                    “Change in
Control” shall mean:

 

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

 

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

 

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

 

“Permitted
Persons” means (A) the Company; (B) any Related Party; or (C) any
group (as defined in Rule 13b-3 under the Exchange Act) comprised of any
or all of the foregoing.

 

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

 

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

 

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

 

(c)                                  Distribution of
Shares.  At the time the Employee
ceases to be an employee of the Company for any reason prior to attaining
Retirement Age, the Company shall distribute to the Employee (or his or her
heirs in the event of the Employee’s death) a number of Shares equal to the
number of vested Restricted Share Units then held by the Employee.  In the event the Employee ceases to be an
employee of the Company after attaining Retirement Age, a number of Shares
equal to the number of vested Restricted Share Units held by the Employee will
be distributed by the Company to the Employee (or his or her heirs in the event
of the

 

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Employee’s
death) at the later of (i) the time the Employee ceases to be an employee
of the Company, and (ii) the date the Restricted Share Units are scheduled
to vest pursuant to the schedule set forth in Section 2(a) above
(without regard to any acceleration of such vesting), so long as the Restricted
Share Units are not forfeited before such time as provided in Section 2(b).

 

(d)                                 Rights and
Restrictions.  The Restricted Share Units shall not be
transferable, other than pursuant to will or the laws of descent and
distribution.  Prior to vesting of the
Restricted Share Units and delivery of the Shares to the Employee following his
termination of employment, the Employee shall not have any rights or privileges
of a shareholder as to the Shares subject to the Award.  Specifically, the Employee shall not have the
right to receive dividends or the right to vote such Shares prior to vesting of
the Award and delivery of the Shares.

 

(e)                                  Adjustments for
Recapitalization and Dividends.  In the event that, prior to the distribution
of Shares pursuant to Section 2(c) above, any dividend in Shares,
recapitalization, Share split, reverse split, reorganization, merger,
consolidation, spin-off, combination, repurchase, or share exchange, or other
such change affects the Shares such that they are increased or decreased or
changed into or exchanged for a different number or kind of shares, other
securities of the Company or of another corporation or other consideration,
then in order to maintain the proportionate interest of the Employee and
preserve the value of the Award, there shall automatically be substituted for
each Share subject to the Award the number and kind of shares, other securities
or other consideration (including cash) into which each outstanding Share shall
be changed or for which each such Share shall be exchanged.

 

(f)                                    Dividend
Equivalents.  As of each
date on which a cash dividend is paid on Shares, there shall be granted to the
Employee that number of additional Restricted Share Units (including fractional
units) determined by (i) multiplying the amount of such dividend per Share
by the number of Restricted Share Units held by the Employee, and
(ii) dividing the total so determined by the Fair Market Value of a Share
on the date of payment of such cash dividend. 
The Restricted Share Units granted pursuant to this Section 2(f) will
have the same terms and conditions (including vesting dates) as the Restricted
Share Units with respect to which they are granted.

 

(g)                                 No Right to
Continued Employment.  This Award
shall not confer upon the Employee any right with respect to continuance of
employment by the Company nor shall this Award interfere with the right of the
Company to terminate the Employee’s employment at any time.

 

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

 

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4.                                       Expenses of
Issuance of Shares.  The
issuance of stock certificates hereunder shall be without charge to the
Employee.  The Company shall pay any
issuance, stamp or documentary taxes (other than transfer taxes) or charges
imposed by any governmental body, agency or official (other than income taxes)
or by reason of the issuance of Shares.

 

5.                                       Withholding.  The Employee shall pay to the Company or make
arrangements satisfactory to the Committee regarding payment of any federal,
state or local taxes of any kind required by law to be withheld with respect to
the Award and the Company shall, to the extent permitted or required by law,
have the right to deduct from any payment of any kind otherwise due to the
Employee, federal, state and local taxes of any kind required by law to be
withheld.

 

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

 

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

 

If to the Company:

 

Arch
Capital Group Ltd.

Wessex House, 4th Floor

45 Reid Street

Hamilton HM 12 Bermuda 

Attn.: Secretary

 

If to the Employee:

 

To
the last address delivered to the Company by the 

Employee in the manner set forth herein.

 

8.                                       Governing Law.  This
Agreement shall be governed by and construed in accordance with the laws of New
York, without giving effect to principles of conflict of laws.

 

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

 

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10.                                 Counterparts.  This
Agreement may be executed in two counterparts, each of which shall constitute
one and the same instrument.

 

11.                                 Section 409A.  It is intended that this Agreement and the
Award will comply with Section 409A of the Code (and any regulations and
guidelines issued thereunder), to the extent the Agreement and Award are
subject thereto, and the Agreement shall be interpreted on a basis consistent
with such intent.  If an amendment of the
Agreement is necessary in order for it to comply with Section 409A, the
parties hereto will negotiate in good faith to amend the Agreement in a manner
that preserves the original intent of the parties to the extent reasonably
possible.  Notwithstanding any provision
of this Agreement to the contrary, for purposes of this Agreement, the Employee’s
employment will be deemed to have terminated on the date of the Employee’s “separation
from service” (within the meaning of Treas. Reg. Section 1.409A-1(h)) with
the Company.  Notwithstanding any
provision to the contrary in this Agreement, if the Employee is deemed on the
date of his or her “separation from service” (within the meaning of Treas. Reg.
Section 1.409A-1(h)) to be a “specified employee” (within the meaning of
Treas. Reg. Section 1.409A-1(i)), then with regard to any payment that is
required to be delayed pursuant to Section 409A(a)(2)(B) of the Code
(after taking into account any applicable exceptions to such requirement), such
payment shall not be made prior to the earlier of (i) the expiration of
the six (6)-month period measured from the date of the Employee’s “separation
from service,” or (ii) the date of the Employee’s death (the “Delay Period”).  Upon the expiration of the Delay Period, all
payments delayed pursuant hereto (whether they would have otherwise been
payable in a single sum or in installments in the absence of such delay) shall
be paid to the Employee in a lump sum and any remaining payments due under this
Agreement shall be paid in accordance with the normal payment dates specified
for them herein.  No action or failure to
act, pursuant to this Section 11 shall subject the Company to any claim,
liability, or expense, and the Company shall not have any obligation to
indemnify or otherwise protect the Employee from the obligation to pay any
taxes, interest or penalties pursuant to Section 409A of the Code.

 

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IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
first above written.

 

	
   

  	
  ARCH
  CAPITAL GROUP LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Dawna Ferguson

  
	
   

  	
   

  	
  Name:  Dawna Ferguson

  
	
   

  	
   

  	
  Title:  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Mark D. Lyons

  
	
   

  	
  Mark
  D. Lyons

  

 

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