Document:

Exhibit 10.9.10

ARCH CAPITAL GROUP LTD.

 

Restricted Share Unit Agreement

 

THIS AGREEMENT, dated as of  May
11, 2007, between Arch Capital Group Ltd. (the “Company”), a Bermuda company,
and Ralph E. Jones, III (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                   
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 June 4, 2003, 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

 

2

 

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

 

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

 

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

 

“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 

 

3

 

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 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).  Notwithstanding any provision of this Section 2(c) to
the contrary, if the Employee is, on the date of his “separation from service”
(as such term is defined in Treasury Regulations issued under Section 409A
of the Code), a “specified employee” within the meaning of that term under Section 409A(a)(2)(B) of
the Code, then distribution of such Shares shall be deferred until the earlier
of (i) the expiration of the six (6)-month period measured from the date
of his “separation from service”, or (ii) the date of his death (the “Delay
Period”).  Upon the expiration of the
Delay Period, distribution of all Shares delayed pursuant to this Section 2(c) shall
be made to the Employee in a single lump sum. 
For purposes of this Agreement, the Employee will be deemed to have
ceased to be an employee of the Company on the date of his “separation from
service” with the Company and its Subsidiaries.

 

(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 

 

4

 

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.

 

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

 

5

 

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.

 

6

 

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

 

	
   

  	
  ARCH CAPITAL GROUP LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dawna Ferguson

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Ralph E. Jones III

  	
   

  
	
   

  	
  Ralph E. Jones, III

  

 

 

7

 

ARCH CAPITAL GROUP LTD.

 

Amendment to Restricted Share Unit
Agreement

 

WHEREAS, Arch Capital Group Ltd. (the “Company”),
a Bermuda company, awarded Restricted Share Units to Ralph E. Jones, III (the
“Employee”) pursuant to restricted share unit agreements, between the
Company and the Employee, as identified on Schedule I hereto (the “Agreements”);
and capitalized terms used without definition herein have the meanings given to
them in the Agreement;

 

NOW, THEREFORE, in consideration of the premises and
mutual covenants contained herein, the parties have agreed to amend the Agreements
as follows:

 

Section 2(c) of
each Agreement shall be amended and restated in its entirety as follows:

 

“(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 (as defined in the Company’s
Incentive Compensation Plan on the date hereof), 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 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).
Notwithstanding any provision of this Section 2(c) to the contrary,
if the Employee is, on the date of his “separation from service” (as such term
is defined in Treasury Regulations issued under Section 409A of the Code),
a “specified employee” within the meaning of that term under Section 409A(a)(2)(B) of
the Code, then distribution of such Shares shall be deferred until the earlier
of (i) the expiration of the six (6)-month period measured from the date
of his “separation from service”, or (ii) the date of his death (the “Delay
Period”). Upon the expiration of the Delay Period, distribution of all
Shares delayed pursuant to this Section 2(c) shall be made to the Employee
in a single lump sum. For purposes of this Agreement, the Employee will be
deemed to have ceased to be an employee of the Company on the date of his “separation
from service” with the Company and its Subsidiaries.”

 

 

2.                                       All other provisions of the Agreements shall
remain in full force and effect. This amendment shall be governed by and
construed in accordance with the laws of Bermuda, without giving effect to
principles of conflict of laws, and may be executed in two counterparts, each
of which shall constitute one and the same instrument.

 

2

 

IN WITNESS WHEREOF, the undersigned have executed
this agreement as of October 26, 2007.

 

	
   

  	
  ARCH CAPITAL GROUP LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dawna Ferguson

  
	
   

  	
   

  	
  Name: Dawna Ferguson

  
	
   

  	
   

  	
  Title: Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Ralph E. Jones, III

  
	
   

  	
  Ralph E. Jones, III

  
				

 

 

Schedule I

 

	
  Date of Agreement

  	
   

  	
  Number of Restricted Share Units

  
	
  7/1/2003

  	
   

  	
  50,000

  
	
  2/26/2004

  	
   

  	
  3,571

  
	
  9/22/2004

  	
   

  	
  6,000

  
	
  2/23/2006

  	
   

  	
  6,000

  
	
  5/11/2007

  	
   

  	
  9,400Exhibit
10.9.12

 

ARCH
CAPITAL GROUP LTD.

Restricted Share Agreement

 

THIS
AGREEMENT, dated as of April 28, 2005, between Arch Capital Group Ltd.
(the “Company”), a Bermuda company, and                               
(the “Director”).

 

WHEREAS,
the following terms reflect the Company’s 2002 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 Director is hereby awarded 875 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 on April 27, 2006.  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).  Notwithstanding the
foregoing, if a Change in Control occurs and the Director ceases to be a
director of the Company for any reason, then the Restricted Shares shall become
immediately vested in full upon such termination of service.

 

For
purposes of this Agreement, a “Change in Control” shall be deemed to occur if
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 more than 50% of the
total voting power of all then outstanding Voting Securities.

 

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

 

“Related
Party” means (A) a majority-owned subsidiary of the Company; (B) a
trustee or other fiduciary holding securities under an employee benefit plan of
the Company or any majority-owned subsidiary of the Company; or (C) any
entity, 50% or more of the voting power of which is owned directly or
indirectly by the stockholders 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.

 

(b)           Termination of Service; Forfeiture
of Unvested Shares.  Except as otherwise
set forth in Section 2(a) above, in the event the Director ceases to
be a director 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), the Restricted Shares shall become
immediately vested in full upon such termination of service.  If the Director ceases to be a director of
the Company for any other reason prior to the date the Restricted Shares become
vested, the Award shall be forfeited by the Director and become the property of
the Company.

 

(c)           Certificates.  Each
certificate issued in respect of Restricted Shares awarded hereunder shall be
deposited with the Company, or its designee, together with, if requested by the
Company, a stock power executed in blank by the Director, 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(a) hereof and the satisfaction of any
withholding tax liability pursuant to Section 5 hereof, the certificates
evidencing such vested Shares, not bearing the Restrictive Legend, shall be
delivered to the Director.

 

(d)           Rights of a Stockholder.  Prior
to the time a Restricted Share is fully vested hereunder, the Director shall
have no right to transfer, pledge, hypothecate or otherwise encumber such
Restricted Shares.  During such period,
the Director 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.

 

(e)           No Right to Continued Services.  This Award shall not confer upon the Director
any right with respect to continuance of services with the Company nor shall
this Award interfere with the right of the Company to terminate the Director’s
services 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 Director. 
The Company shall pay, and indemnify the Director from and against 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.

 

2

 

5.             Withholding.  No later than the date of vesting of (or the
date of an election by the Director under Section 83(b) of the Code
with respect to) the Award granted hereunder, the Director shall 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 Director, 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 Director shall apply, where
appropriate, to the Director’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

45 Reid Street

Hamilton HM 12, Bermuda 

Attn.:  Secretary

 

If to the Director:

 

To the last address
delivered to the Company by the 

Director in the manner
set forth herein.

 

8.             Governing Law.  This
Agreement shall be governed by and construed in accordance with the laws of the
State 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.

 

3

 

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

 

	
   

  	
  ARCH
  CAPITAL GROUP LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  

 

4

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