SEC Contract Filing

Filing Date: 2018-02-28

Document Content:
<DOCUMENT>
<TYPE>EX-10.5.6
<SEQUENCE>3
<FILENAME>a2017ex1056.htm
<DESCRIPTION>EX 10.5.6
<TEXT>
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<div><a name="s8A2964D3F08BDD4640F0C36DF21D007D"></a></div><div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div></div><div><br></div><div style="line-height:120%;text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">EXHIBIT 10.5.6</font></div><div style="line-height:120%;padding-bottom:32px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;padding-bottom:32px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">ARCH CAPITAL GROUP LTD. <br>Non-Qualified Stock Option Agreement</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:96px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">FOR GOOD AND VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, Arch Capital Group Ltd. (the &#8220;Company&#8221;), a Bermuda company, hereby grants to Maamoun Rajeh, an employee of the Company on the date hereof (the &#8220;Option Holder&#8221;), the option to purchase common shares, $0.0033 par value per share, of the Company (&#8220;Shares&#8221;), upon the following terms:</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:96px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">WHEREAS, the Option Holder has been granted the following award under the Company&#8217;s 2015 Long Term Incentive and Share Award Plan (the &#8220;Plan&#8221;);</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:96px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(a)&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Grant</font><font style="font-family:inherit;font-size:10pt;">. The Option Holder is hereby granted an option (the &#8220;Option&#8221;) to purchase 10,500 Shares (the &#8220;Option Shares&#8221;) pursuant to the Plan, the terms of which are incorporated herein by reference. The Option is granted as of September 19, 2017, (the &#8220;Date of Grant&#8221;) and such grant is subject to the terms and conditions herein and the terms and conditions of the applicable provisions of the Plan. This Option shall not be treated as an incentive stock option as defined in Section 422 of the Internal Revenue Code of 1986, as amended. In the event of any conflict between this Agreement and the Plan, the Plan shall control.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:96px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(b)&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Status of Option Shares</font><font style="font-family:inherit;font-size:10pt;">. Upon issue, the Option Shares shall rank equally in all respects with the other Shares.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:96px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(c)&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Option Price</font><font style="font-family:inherit;font-size:10pt;">. The purchase price for the Option Shares shall be, except as herein provided, $96.39 per Option Share, hereinafter sometimes referred to as the &#8220;Option Price,&#8221; payable immediately in full upon the exercise of the Option.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:96px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(d)&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Term of Option</font><font style="font-family:inherit;font-size:10pt;">. The Option may be exercised only during the period (the &#8220;Option Period&#8221;) set forth in paragraph (f) below and shall remain exercisable until the tenth anniversary of the Date of Grant. Thereafter, the Option Holder shall cease to have any rights in respect thereof. The right to exercise the Option shall be subject to sooner termination as provided in paragraph (j) below.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:96px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(e)&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">No Rights of Shareholder</font><font style="font-family:inherit;font-size:10pt;">. The Option Holder shall not, by virtue hereof, be entitled to any rights of a shareholder in the Company, either at law or in equity.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:96px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(f)&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Exercisability</font><font style="font-family:inherit;font-size:10pt;">. Except as otherwise set forth in paragraph (j) below, the Option shall become exercisable</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;">&#32;</font><font style="font-family:inherit;font-size:10pt;">in three equal annual installments on the first, second and third anniversaries of the Date of Grant, in each case subject to paragraph (j) below. Subject to paragraph (j) below, the Option may be exercised at a