Document:

Exhibit

Exhibit 10.24
ARCH CAPITAL GROUP LTD. 
Restricted Share Agreement
THIS AGREEMENT, dated as of May 8, 2017, between Arch Capital Group Ltd. (the “Company”), a Bermuda company, and Maamoun Rajeh (the “Employee”).
WHEREAS, the Employee has been granted the following award under the Company’s 2015 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 Shares.  Pursuant to the provisions of the Plan, the terms of which are incorporated herein by reference, the Employee is hereby awarded 5,310 Restricted Shares (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 Shares 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 dividends and other amounts receivable in connection with any adjustments to the Shares under Section 4(c) of the Plan shall be subject to the vesting schedule in this Section 2(a). 
(b)    Termination of Service; Forfeiture of Unvested Shares. 
(i)    In the event the Employee ceases to be an employee of the Company prior to the date the Restricted Shares 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 Shares 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, and other than as set forth in Section 2(b)(i) or (iii) hereof) after the attainment of Retirement Age (as defined in the Company’s Incentive Compensation Plan on the date hereof), the Restricted Shares shall continue to vest on the schedule set forth in Section 2(a) above so long as the Employee does not, without the written consent of the Company, engage in any activity in competition with any activity of the Company or any of its Subsidiaries other than (i) serving on the board of directors (or similar governing body) of another company or (ii) serving as a consultant for no more than 26 weeks per calendar year providing services that do not, in whole or in part, relate to the business or operations of an insurance or reinsurance company (“Competitive Activity”). In the event the Employee engages in a Competitive Activity, any unvested Restricted Shares 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 below), in either case, on or before the second anniversary of the occurrence of the Change in Control, the Restricted Shares, to the extent not already vested, shall become immediately vested in full upon such termination of employment. “Good Reason” means, without the Employee’s written consent, (a) the material diminution of any material duties or responsibilities of the Employee without the same being corrected within thirty (30) days after being given written notice thereof; or (b) a material reduction in the Employee’s Base Salary without the same being corrected within thirty (30) days after being given written notice thereof.

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(iv)    If the Employee ceases to be an Employee of the Company for any other reason prior to the date the Restricted Shares become vested, the Award shall be forfeited by the Employee and become the property of the Company. 
(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 

		
	(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.
(c)    Certificates.  Each certificate issued in respect of Restricted Shares awarded hereunder shall be issued in book entry format with the Company’s transfer agent and shall bear a legend disclosing the restrictions on transferability imposed on such Restricted Shares by this Agreement (the “Restrictive Legend”). Upon the vesting of Restricted Shares pursuant to Section 2 hereof and the satisfaction of any withholding tax liability pursuant to Section 5 hereof, such vested Shares, not bearing the Restrictive Legend, shall be delivered to the Employee.
(d)    Rights of a Stockholder.  Prior to the time a Restricted Share is fully vested hereunder, the Employee shall have no right to transfer, pledge, hypothecate or otherwise encumber such Restricted Share. During such period, the Employee shall have all other rights of a stockholder, including, but not limited to, the right to vote and to receive dividends (subject to Section 2(a) hereof) at the time paid on such Restricted Shares.

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(e)    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. 
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. No later than the date of vesting of (or the date of an election by the Employee under Section 83(b) of the Code with respect to) the Award granted hereunder, 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 at such time with respect to such 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 at such time. 
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. 
Waterloo House 
100 Pitts Bay Road 
Pembroke HM 08 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.

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

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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/ Susie Tindall

	 
	 
	Name:
	Susie Tindall

	 
	 
	Title:
	Secretary

	 
	 
	 
	 

	 
	 
	/s/ Maamoun Rajeh 

	 
	 
	Maamoun Rajeh 

	 
	 
	 
	 

4Exhibit

Exhibit 10.25

September 19, 2017

Mr. David McElroy
22 Joshua Dr.
West Simsbury, CT  06092

Dear David:
This letter agreement confirms your and our understanding and agreement on the terms under which you will provide consulting services to Arch Capital Group Ltd. (the “Company”).
1.    From October 1, 2017 until December 31, 2017, you will serve as Executive Chairman of Arch Insurance Group Inc. (“AIGI”) and Vice Chairman of Arch Worldwide Insurance Group on a full time basis. As of January 1, 2018 (the “Effective Date”), you will retire as an employee of AIGI, and your employment with AIGI will terminate in accordance with Section 5.03 of your employment agreement with AIGI, dated as of June 5, 2009 and as amended on July 25, 2012 (“Prior Agreement”). For the avoidance of doubt, certain provisions of the Prior Agreement will survive in accordance with their terms as provided in Section 12.16 of the Prior Agreement. 
2. During the term of this letter agreement commencing on the Effective Date (the “Consulting Term”), you shall serve as Vice Chairman of Arch Worldwide Insurance Group and make yourself available to provide consulting services to the Company for up to 50 days per year as reasonably requested by the Company on specific projects, including, among other things, assistance in the transition to the new Chairman and Chief Executive Officer of Arch Worldwide Insurance Group, participation in meetings and other activities of the Underwriting Oversight Committee of the Board of Directors of the Company and due diligence relating to proposed acquisitions by the Company and its subsidiaries. During the Consulting Term, you shall receive compensation of $150,000 per calendar year, payable in four equal quarterly installments within 10 days of the close of each calendar quarter. You will also be eligible for an annual bonus based on your performance, as determined in the discretion of the Board of Directors of the Company (or a duly authorized committee) (the “Board”). It is anticipated by both you and the Company that the level of services you will perform hereunder will be no more than 20% of the average level of services performed by you for the Company and its affiliates over the immediately preceding three years. In performing your services hereunder, you will comply with the applicable operating guidelines of the Company and its subsidiaries, which contain restrictions on activities within the United States. 
3.    During the Consulting Term, the Company shall reimburse you for all reasonable out-of-pocket expenses incurred by you in connection with your provision of consulting services hereunder, including business class air travel, upon presentation to the Company of appropriate documentation. Additionally, in the event of a federal income tax law change applicable to 2018 that would have reduced federal income tax payments by you in respect of distributions in 2017 from the Arch Capital Group (U.S.) supplemental non-qualified plan (taking into account reductions in tax rates and adjustments to the tax base), the Company shall reimburse you, on an after-tax basis, for the amount of such reduced income tax payments as calculated by the Company. Any reimbursement under this Section 2 shall be made on or before the last day of the calendar year following the calendar year for which the expense was incurred, and the amount of any benefit or reimbursement under this Section 2 for one calendar year shall not affect the amount of any benefit or reimbursement available hereunder in any other calendar year.
4.    You understand and agree that (1) you shall not, directly or indirectly, divulge to any person or use for your own benefit or the benefit of any person any information of a private, secret or confidential nature concerning the business, accounts, finances, transactions or other affairs of the Company, or any of its affiliates or business partners which has come into your knowledge during the course of your services with the Company, (2) you shall not remove from the premises of the Company or any of its affiliates, except in connection with your duties pursuant to this letter agreement, any document or other object containing or reflecting any such information, (3) all of such information, including any written reports prepared by you, are and shall remain the sole and exclusive property of the Company, and upon completion of your services hereunder, you shall return to the Company the originals and all copies and extracts of any such 

information, and (4) any remedy at law for any breach by you of this paragraph 3 shall be inadequate and that the Company shall be entitled to temporary and permanent injunctive relief without the necessity of proving actual damages. 
5.    Both you and the Company agree that you will act as an independent contractor in the performance of your services under this letter agreement, and that nothing herein shall be taken to imply any relationship of partnership, agency or employer and employee between you and the Company. In addition, you shall not delegate any of your responsibilities hereunder to any other person.     
6.    This letter agreement is of unlimited duration unless terminated as provided below. Either party may terminate this letter agreement by providing at least 30 days’ prior written notice to the other party. If you shall fail to perform your duties hereunder in any respect, the Company may terminate this letter agreement immediately upon notice to you with no obligation to make further payment to you hereunder. You shall not assign this letter agreement or any rights, benefits, duties or obligations hereunder to any other party.            
7. For the bonus paid on or before March 15, 2018 for calendar year 2017, a bonus for you will be recommended for approval by the Board in an amount of not less than 5.4% (the “Percentage”) of the aggregate formula approach pool for the Company’s insurance segment paid at such time (for such purposes, the Percentage was determined by dividing your bonus for the 2016 year by the aggregate insurance segment pool of $16,652,338 paid in March 2017). 
8.    This letter agreement constitutes the entire agreement among the parties regarding the subject matter hereof, and shall be governed by and construed in accordance with the laws of New York, without reference to the principles of conflict of laws thereof.

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Please confirm your agreement to the above by signing and returning the enclosed duplicate of this letter agreement. 

	
				
	 
	ARCH CAPITAL GROUP LTD.

	 
	 
	 

	 
	By:
	/s/ Marc Grandisson

	 
	 
	Name:
	Marc Grandisson

	 
	 
	Title:
	President & Chief Operating Officer 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	ARCH INSURANCE GROUP INC.

	 
	 
	 

	 
	By:
	/s/ Carl Sullo    

	 
	 
	Name:
	Carl Sullo

	 
	 
	Title:
	SVP 

	 
	 
	 
	 

	Accepted as of the date hereof:

	 
	 
	 

	/s/ David McElroy            

	 
	 

	David McElroy

	 
	 
	 

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