EX-10.4

Exhibit 10.4

EMPLOYMENTAGREEMENT

EMPLOYMENTAGREEMENT("Agreement"),datedasof March 1,2019,betweenArch

U.S.MlServicesInc.,aDelawarecorporation(the"Company"),andMichael Schmeiser(the

"Executive").

WHEREAS,the Executivehasbeen promotedtothepositionsdescribedInSection3.01

below;

WHEREAS,inconnectionwiththepromotionandinexchangeforandcontingentonthe

Executive'sexecutionofthisAgreement,theExecutive'sbasesalarywillbeincreasedto the

amount set forthinSection4.01below,he willreceive the equity grant from theCompany

describedInSection 4.06belowandhewillbeentitledto theseverance benefitsontheterms

set forth in Article 5 below;

WHEREAS,theExecutive'spositions withtheCompanyanditsAffiliates willgivehim

accesstoConfidentialInformation(asdefinedherein)oftheCompanyanditsAffiliates(as

defined herein);

WHEREAS,theExecutive'spositionswiththeCompanyanditsAffiliateswillgivethe

Executive certainopportunities, onbehalfof theCompany,towork withanddevelop

relationshipswithemployees,customers,investors,clients,insured,reinsureds,brokers,

agents,andlicenseesoftheCompanyanditsAffiliates;and

WHEREAS,thepartiesagreethatthisAgreementisnecessaryfortheprotectionand

preservationoftheproprietary andconfidentialinformationoftheCompany anditsAffiliates,

theprotection andpreservation ofthegoodwilloftheCompany and itsAffiliates, andthe

protection andpreservationoftherelationships thattheCompany has withitsemployees,

customers,investors,clients,insureds,reinsureds,brokers,agents,licensees,andotherswith

whichtheCompany hasabusinessrelationship; and

NOW,THEREFORE,inconsiderationoftheExecutive'scontinuedemploymentas

providedherein,theExecutive'sincreasedbasesalary,hisreceiptofanequitygrantfromthe

Company,hisseverancebenefitspayableassetforthhereinandothergoodandvaluable

consideration,thereceiptandsufficiencyofwhichisherebyacknowledged,thepartieshereto

agree as follows:

ARTICLE 1

DEFINITIONS

SECTION1.01.Definitions.ForpurposesofthisAgreement,thefollowingtermshavethe

meaningssetforthbelow:

"AccountingFirm"hasthemeaningsetforthinSection12.10(b).

"Affiliate" means any Person, directly or indirectly, through one or more

intermediaries, Controlling,Controlledby,orundercommonControlwiththeCompany.For

purposeshereof,

(a)"Control" meanstheownership, directly orindirectly, of (i)inthe caseofacorporation,

VotingSecurities(asdefinedbelow)representing50%ormoreofthe totalvotingpoweror

valueofallthethenoutstandingVotingSecurities ofsuchcorporation or(ii)inthecaseof a

partnership,limitedliabilitycompany,associationor otherbusinessentity("BusinessEntity''),

50%ormoreofthepartnershiporothersimilarownershipinterestofsuchBusinessEntity;and

(b)"VotingSecurity" meansanysecurityofacorporation whichcarriestherightto vote

generallyinthe electionof directors.Forpurposes of thedefinitionof "Control,"(x)aPerson

willbedeemedtohavea50%ormoreownershipInterestinaBusinessEntityifsuchPersonis

allocated50%ormoreofBusinessEntitygainsorlossesorcontrolsthe managingdirectoror

memberor generalpartnerof suchBusinessEntity;and(y)"Controlling" and"Controlled" have

meanings correlative thereto.

"BaseSalary"hasthemeaningsetforthInSection4.01.

"BonusAmount" meansforterminationoftheExecutive's employment occurring

duringacalendaryear,thegreater of (i)theExecutive'starget annualbonusfortheyear of

suchterminationofemployment,or(ii)theaverageoftheExecutive'sactualannualbonusfor

thethreeimmediatelyprecedingyears(or suchlessernumberofyearsinwhichtheExecutive

was employed bytheCompany orits Affiliate).

"Cause" means(a)theftorembezzlementbytheExecutive withrespecttothe

Company oritsAffiliates;(b)intentionalmalfeasance orgrossnegligence intheperformance

ofthe Executive'sduties;(c)theconvictionoftheExecutiveofanyfelonyoranycrimeinvolving

moral turpitude;(d)willfulorprolonged absencefromworkbytheExecutive (otherthanby

reason of disabilityduetophysicalormentalillness)orfailure,neglector refusalbythe

Executiveto performhis duties andresponsibilities without thesame beingcorrected within

ten (10) days after beinggiven writtennoticethereof; (e) continued andhabitual use of

alcoholbythe Executivetoanextent whichmateriallyimpairstheExecutive's performance of

hisduties;(f) theExecutive'suseofillegaldrugs;or(g)thematerialbreachbytheExecutiveof

anyof the covenants contained in this Agreement.

"Code"hasthemeaningset forthinSection12.09.

"Confidential Information"means information that is not generally known to the

public and that was or is used, developed or obtained by the Company or its Affiliates in

connection with their business. It shall not include information (a) required to be disclosed by

court or administrative order (subject to the Executive's compliance with the notice

requirements set forth in Section 6.01 below); (b) lawfully obtainable from other sources or

which is in the public

domain through no fault of the Executive; or (c) thedisclosureofwhich isconsented toby

the Company.

"DateofTermination"hasthemeaningsetforthInSection5.06andSection5.02.

"EmploymentPeriod"hasthemeaningsetforthInSection2.01andSection5.02.

"GoodReason"means,withouttheExecutive'swrittenconsentandsubjectto the

timelynotice requirement andtheCompany's opportunity to cure setforth inSection 5.05

below,(a)thematerialdiminutionofanymaterialdutiesorresponsibilitiesoftheExecutive;(b)

amaterialreductionintheExecutive'sBaseSalary;or(c)anymaterialbreachbytheCompany

of the provisions contained in this Agreement.

"Intellectual Property" has the meaning set forthInSection 7.01.

"Notice ofTermination"hasthemeaningset forthInSection 5.05.

"NoncompetitionPeriod"hasthemeaningsetforthinSection9.01.

"NonsolicitationPeriod" has themeaning set forth In Section 9.02.

"Person" means anIndividual, a partnership, acorporation, alimited liability

company, anassociation, ajoint stockcompany, anestate,atrust,ajoint venture, an

unincorporated organization or agovernmentalentityoranydepartment,agencyor political

subdivision thereof.

"Permanent Disability" means thosecircumstances wherethe Executive isunable

to continue toperform the usual customary duties of his assigned job or asotherwise

assigned in accordancewiththe provisions of this Agreementfor a period of six (6)

consecutive months in any twelve(12) monthperiod becauseofphysical, mental or

emotional Incapacityresulting from injury, sickness or disease. Any questions astothe

existenceof a Permanent Disability shall be determined by a qualified, independent

physician selected by the Company and approved by the Executive (which approval shall

notbe unreasonably withheld). The determination of any such physician shall be final and

conclusive forall purposes of this Agreement.

"ReimbursableExpenses"hasthemeaningsetforthinSection4.04.

"Start Date"hasthemeaningset forthinSection2.01.

ARTICLE 2

EMPLOYMENT

SECTION2.01.Employment.TheCompanyshallemploytheExecutiveasprovided

herein,andtheExecutiveshallaccept suchemployment, fortheperiodbeginning asofMarch 1,

2019(the"StartDate") and endingasprovidedinSection5.01(the "EmploymentPeriod"). If

theExecutivefailstosatisfytheconditionsetforthintheprecedingsentence,heshallforfeit all

rights hereunder.

ARTICLE3

POSITION AND DUTIES

SECTION 3.01. Position and Duties. Duringthe Employment Period, the Executive

shall serveasPresidentandChiefExecutiveOfficeroftheCompanyandshallhavesuch

responsibilities,powers anddutiesasmayfromtime to timebeprescribedbytheBoard of

DirectorsoftheCompany;providedthatsuchresponsibilities,powersanddutiesare

substantiallyconsistentwiththosecustomarilyassignedtoIndividualsservingInsuchposition

atcomparablecompaniesorasmaybereasonablyrequiredbytheconductofthebusinessof

theCompany.

TheExecutiveunderstandsandagreesthatinthesepositions,he willhaveaccesstoand

becomefamiliar withconfidential andtradesecretinformationbelongingtotheCompany and

itsAffiliates,theCompany's manner ofdoingbusiness, themanner inwhichAffiliates do

business,futureplansoftheCompanyandItsAffiliates,andconfidentialinformationrelatingto

customers,employees,andbusinessrelationsoftheCompanyanditsAffiliates.TheExecutive

acknowledgesthatsuchinformationhasbeenandwillbeestablishedatgreatexpensetothe

CompanyanditsAffiliatesandthattheCompanyhasalegitimatebusinessinterestin

protectingsuchInformation from disclosure tocompetitors orotherwise.

DuringtheEmploymentPeriod,theExecutive shalldevotesubstantiallyallofhis

workingtimeandeffortsto thebusiness andaffairsoftheCompany anditsAffiliates.The

Executiveshallnotdirectlyorindirectlyrenderanyservicesofabusiness,commercialor

professionalnatureto anyotherpersonorfor-profitorganizationnotrelatedto thebusinessof

theCompany orIts Affiliates, whether forcompensation orotherwise, without prior written

consent oftheCompany.DuringtheEmployment Period,theExecutivewillcomply withthe

Company'sCodeofBusinessConduct,asineffect fortimetotime.

ARTICLE4

BASESALARYANDBENEFITS

SECTION4.01.BaseSalary.DuringtheEmploymentPeriod,theExecutive'sbasesalary

willbe$450,000per annum (the "BaseSalary"). The BaseSalary willbepayable bythe

Company bi-monthlyonthe 15thandlastworkingdayofeachmonth.Annually duringthe

EmploymentPeriod,theCompanyshallreviewwiththeExecutivehisjobperformanceand

compensation, and if deemed appropriate bytheCompany, in its discretion, the Executive's

BaseSalary maybeincreased.

SECTION4.02.Bonuses.InadditiontotheBaseSalary,theExecutiveshallbe

eligibleto participatein anannualbonusplan on termssetforthfromtime totime bythe

Boardof Directors oftheCompany.TheExecutive's target annualbonus willbe100% ofhis

Base Salary.

SECTION4.03.Benefits.In additionto theBaseSalary,andanybonusespayableto

the Executive pursuant to this Agreement, theExecutive shall be entitled to the following

benefits during the EmploymentPeriod:

(a)such major medical, lifeinsurance and disability insurance coverage

as is, or may during the Employment Period be, provided generally for other senior

executive officers oftheCompanyas setforth fromtime to time intheapplicable

plan documents;

(b)inaccordance withapplicable policies, «Vacation_Days»vacation

days and10sickdaysannually(eachofwhichwillbepro-ratedforpartialyears)

duringthe Employment Period; and

(c)benefits under any planor arrangement available generally for the

senior executive officers of the Company, including the Executive Supplemental Non-

Qualified Savings and RetirementPlan, subject toand consistentwith the terms

and conditions and overall administration of such plans as set forth from time totime

in the applicable plan documents.

SECTION4.04.Expenses. TheCompanyshallreimburse theExecutive forall

reasonable expensesincurredbyhimin thecourseof performinghisdutiesunderthis

Agreement which are consistent withtheCompany's policiesin effect from timeto time with

respect to travel, entertainmentandotherbusinessexpenses("ReimbursableExpenses"),

subjectto the Company's requirements withrespect to reportinganddocumentation of

expenses.

SECTION4.05.Share-BasedAwards.TheExecutiveshallbeeligibletoparticipatein

the Company's LongTerm Incentive andShare Award Plans (and any similar plan adopted

bythe Company) under which share-based awards may be granted, as determined by the

Board of Directors of the Company in its discretion.

SECTION 4.06Equity Award.Subject toapproval bytheBoardof Directors of Arch

Capital Group Ltd. ("Parent''), on the date this Agreementhas been fully-executed by the

parties("GrantDate"),theExecutivewillreceiveasigningbonusconsistingoftheshare-

based awards of Parent valued at $232,500 in the aggregate, consisting of (a) 65.81%

performance sharesofParent ("PerformanceShares"), (b)25.93%non-qualifiedoptionsto

purchase

commonsharesofParent("StockOptions")and(c)8.26%restrictedcommonsharesof

Parent ("Restricted Shares") (withthepercentages relatingto the valueof each award

component). ThePerformance ShareswillvestonMarch10,2022(basedonachievementof

performance goals),andtheStockOptionsandtheRestrictedShareswillvestinthreeequal

annual installmentsonthefirstanniversaryof theGrantDate,February28,2021and

February 28, 2022,providedthat,ineachcase,oneach such datetheExecutive isstillan

employeeof the Company asset forthinthe awardagreements.

For these purposes, the (a) the number of Performance Shares will be determined

by dividing the performanceaward target award value by the closing price of Parent's

common shares onthe Grant Date, (b) the number ofStock Options willbe determined by

Parent based on aBlack-Scholesvaluation consistent with themanner in whichParent

reflects options in its consolidated financial statements, and (c) the number of Restricted

Shareswill bedetermined by dividingthe restricted share award value by the closingprice

of Parent's common shares on theGrant Date. The Stock Options willhave an exercise

price per share equal tothe closing market price of Parent's common shares on the Grant

Date. The terms and conditions of the Performance Shares andtheStock Options will be

as set forth in the award agreements.

ARTICLE5

TERMANDTERMINATION

SECTION 5.01.Term.TheEmployment Period willterminate onthethirdanniversary

of theStartDate;providedthat (a)theEmployment Period shallterminate prior to suchdate

upontheExecutive'sdeathorPermanent Disability,(b)theEmployment Periodmaybe

terminatedbytheCompanyforanyreasonpriortosuchdate,and(c)theEmployment Period

maybeterminatedbytheExecutivepriorto suchdate,if suchterminationshallbeforGood

Reason.In addition,thisAgreement willbeautomatically extendedonthesametermsand

conditionsforsuccessiveoneyearperiodsfollowingtheoriginaltermuntileithertheCompany

ortheExecutive,atleastninety (90) dayspriorto theexpiration oftheoriginaltermor any

extendedterm,shallgive writtennoticeoftheirintention notto renew theAgreement.Upon

terminationoftheExecutive's employment withtheCompanyforanyreason,the Executive

shallresignfrom allpositionsandinallcapacitieswiththeCompany anditsAffiliatesorfrom

anyothercompanyorotherPersonwithwhichtheExecutive isservingattheCompany's

request.

SECTION5.02.UnjustifiedTermination.Exceptasotherwise providedinSection12.09,

if theEmploymentPeriod shall beterminated (i) at the end of the EmploymentPeriod due to

the Companygivingwritten notice of non-extensionpursuanttoSection5.01above, or (ii)

prior to the expiration of theoriginal term (or the Employment Period as extended pursuant

toSection 5.01) by the Executive for Good Reason orby theCompany notfor Cause (such

terminations under clauses (i) and (ii) of thisSection 5.02 arecollectively referred to as

"Unjustified Terminations"), theExecutive shallbepaid solely (except as additionally

providedin Section 5.04below or the Company's Incentive Compensation Plan or successor

plan) hisBase Salary

earnedthroughthedateof termination ofemployment andanamount equalto thesumof(A)

hisannualBaseSalary,(B)histargetannualbonus,and(C)apro-ratedportionof the

Executive'stargetannualbonusbasedonthenumberofdayselapsedinthecalendaryear

through the Date of Termination.

TheExecutiveshallbeentitledtosuchpaymentssetforthinclauses(A),(B)and(C)of

thisSectiononlyIfthe Executivehasfullycompliedwithandcontinuesto fullycomplywiththe

provisions of Sections 6.01,7.01,8.01,9.01or 9.02 hereof andthe Executive has entered into

a generalreleaseofclaimsreasonably satisfactorytotheCompanyonorbeforethedatethat

is fifty(SO)daysfollowingtheDateofTerminationanddoesnotrevokesuchreleasepriorto

the endofthestatutoryseven (7)dayrevocationperiod(it beingunderstoodthatsuchgeneral

releasewillnotrequiretheExecutivetoreleasehisrightsunderSections5.02and5.04ofthis

Agreementandwillnot contain anyemployment restrictions ornon-solicitationobligations

other than those set forth in this Agreement).

SubjecttoSection12.09below,suchamountswillbepaidintwelve(12)equal

installments,the firsttwo(2)of whichshallbepaidonthedatethatistwo(2)monthsfollowing

theDateof Termination andthenextten (10)ofwhich willbepaidin ten(10)equalmonthly

installments commencing onthe datethat isthree (3)months followingtheDate of

Termination andcontinuingon eachofthenextnine(9)monthly anniversaries oftheDateof

Termination.In addition, promptly followinganUnjustified Termination, theExecutive shall

alsobereimbursedforallReimbursableExpensesincurredbytheExecutivepriortosuch

UnjustifiedTermination.Notwithstandingany provisionhereofto thecontrary, in order forthe

Executiveto terminatetheEmploymentPeriodforGoodReason,suchtermination of

employmentmust occurnolaterthansixty(60)daysafterthedatethe Executivegiveswritten

noticeinaccordancewithSection5.05belowtotheCompanyofthe occurrenceoftheeventor

condition that constitutes Good Reason.

SECTION 5.03.Justified Termination. If the Employment Period shall beterminated

(i) prior tothe expirationof the original term (or the EmploymentPeriodas extended

pursuantto Section 5.01) (a) by theCompany forCause, (b) as a result of the Executive's

resignation or leaving of his employment, other than for Good Reason or (c) as a result of

the death or PermanentDisability of theExecutive, or(ii) at the end of theEmployment

Period asaresult of the Executive'sprovision ofwritten notice not toextend the

EmploymentPeriod under Section 5.01 (suchterminations underclauses (i) and(ii) ofthis

Section 5.03 are collectivelyreferred to as "JustifiedTerminations"),theExecutiveshall

beentitledtoreceive solely (except as additionally provided in Section 5.04 below or the

Company's Incentive Compensation Plan or successor plan) his Base Salary earned

through the date of termination of employmentand reimbursementof all Reimbursable

Expenses incurred by the Executive prior to such Justified Termination.

SECTION 5.04.Benefits.Except asotherwise required by mandatory provisions of

law,all oftheExecutive'srights tofringe and other benefits under this Agreementor

otherwise, ifany, accruingaftertheterminationof the EmploymentPeriodwill ceaseupon

such termination.

Notwithstandingtheforegoing,ifsuchterminationisaresultofaPermanentDisabilityorifthe

Employment PeriodIsterminated asa result ofanUnjustified Termination,theExecutive shall

continueto receivehismajormedicalinsurance coveragebenefitsfromtheCompany's planin

effect fromtimetotime(providedtheExecutivecontinuestopaytheportionofthepremiums

forsuchcoveragethatarechargedtosimilarlysituated activeemployees) foraperiodequalto

thelesserof(i)twelve(12)monthsaftertheDateofTermination,and(ii)untiltheExecutiveis

providedbyanother employer withbenefitssubstantially comparable (withnopre-existing

conditionlimitations)tothebenefitsprovidedbysuchplan.Thecontinuation ofsuchbenefits

underthisSectionshallonlybeavailableiftheExecutivehasfullycomplied withandcontinues

tofullycomplywiththeprovisionsofSections6.01,7.01,8.01,9.01or9.02ofthisAgreement.

SECTION5.05.NoticeofTermination andOpportunity toCure.Anyterminationbythe

CompanyforPermanentDisabilityorCauseorwithoutCauseorbytheExecutiveforGoodReason

shallbecommunicated bywrittenNotice ofTermination totheotherpartyhereto.Forpurposes

ofthis Agreement, a"Notice ofTermination"shall mean a notice which shall Indicate the

datethe

terminationistotakeeffect(consistentwiththetermsofthisAgreement),thespecifictermination

provisioninthisAgreement relieduponand,foraterminationforPermanentDisabilityorfor

CauseorforaresignationforGoodReason,shallsetforthinreasonabledetailthefactsand

circumstancesclaimedto provideabasisforterminationofemploymentundertheprovision

indicated.Itshallbeaconditionprecedentto theExecutive'srighttoterminateemployment for

GoodReasonthat(i)theExecutiveshallfirsthavegiventheCompanywrittennoticethatanevent

orconditionconstitutingGoodReasonhasoccurredwithinninety(90)daysaftersuchoccurrence,

andanyfailuretogivesuch writtennoticewithin suchperiod willresultinawaiverbythe

ExecutiveofhisrighttoterminateforGoodReasonasaresultofsucheventorcondition,and(ii)a

periodofthirty (30)daysfromandafterthegivingofsuchwrittennotice shallhaveelapsed

without theCompany havingeffectively curedorremedied such occurrence duringsuch 30-day

period,unlesssuchoccurrencecannotbecuredorremediedwithinthirty(30)days,inwhichcase

theperiod forremedyorcureshallbeextendedforareasonabletime(nottoexceed anadditional

fifteen(15)days)providedthattheCompanyhasmade andcontinues tomakeadiligent effortto

effect suchremedy orcure.

SECTION5.06.DateofTermination."DateofTermination"shallmean(a)Ifthe

EmploymentPeriodIsterminatedasaresultofaPermanentDisability,five(5)daysafteraNotice

ofTerminationisgiven,(b)iftheEmploymentPeriodisterminatedbytheExecutiveforGood

Reason,thedatespecifiedintheNoticeof Terminationconsistentwiththetermshereof,(c)ifthe

EmploymentPeriodterminatesduetoexpirationofthetermofthisAgreement, thedatetheterm

expires,and(d)iftheEmploymentPeriodisterminated foranyotherreason(includingforCause),

thedatedesignated bytheCompany intheNoticeofTermination.

ARTICLE6

CONFIDENTIAL INFORMATION

SECTION 6.01.Nondisclosureand Nonuse ofConfidentialInformation. TheExecutive

will notdiscloseoruseatanytimeduringoraftertheEmploymentPeriod anyConfidential

Information ofwhichthe Executiveisorbecomes aware,whether ornotsuchinformationis

developed byhim,exceptto theextentthatsuchdisclosure oruseisdirectly relatedto and

requiredbytheExecutive'sperformanceofdutiesassignedtotheExecutivepursuanttothis

Agreement.Underallcircumstancesandatalltimes,theExecutive willtakeallreasonably

appropriatestepstosafeguardConfidentialInformationinhispossessionandtoprotectit

againstdisclosure,misuse,espionage,lossandtheft.IftheExecutiveiscompelledbycourtor

administrativeorderto discloseinformation that would otherwise beconsidered Confidential

Information, the Executive willfirst givetheCompany prompt writtennoticeof anysuch

requirement, disclose nomoreinformationthanisso required intheopinion of competent

legalcounsel,andcooperatefullywithanyeffortsbytheCompanytoobtainaprotectiveorder

orsimilar confidentialitytreatment for suchinformation.NothinginthisAgreement,however,

or anyotheragreement or arrangement withtheCompanyoranyofitsAffiliatesshallrequire

theExecutiveto givenoticetotheCompanypriortotheExecutivemakinganydisclosureof

informationordocumentsto anygovernmentalagencyorlegislativebody,anyself-regulatory

organization, the Legal Department of theCompany, and/or pursuant to thewhistleblower

provisionsoftheDodd-Frank ActorSarbanes-OxleyAct.

SECTION6.02.DefendTradeSecretsAct.Pursuantto18U.S.C.§1833(b),the

Executive understandsthattheExecutive willnotbeheldcriminally orcivillyliableunderany

Federalor Statetradesecretlawforthedisclosureofatradesecretof theCompanythat(i)Is

made(x)in confidence to aFederal,State,or localgovernment official,either directly or

Indirectly,orto theExecutive'sattorneyand(y)solelyforthepurposeofreportingor

Investigatingasuspected violation of law;or(ii)Ismadein acomplaint orother document

that isfiledundersealin a lawsuitor otherproceeding.TheExecutiveunderstands thatifthe

Executive filesalawsuitforretaliationbythe Company forreportingasuspected violation of

law,theExecutive may disclosethetradesecrettotheExecutive's attorneyandusethetrade

secretinformationinthe courtproceedingif theExecutive (I)filesanydocument containing

thetradesecretunderseal, and(II) doesnotdisclosethetradesecret,exceptpursuantto

court order.Nothinginthis Agreement isintendedto conflict with18U.S.C.§1833(b) or

createliabilityfor disclosuresof tradesecretsthatareexpresslyallowedbysuchsection.

Further,nothinginthisAgreement or anyotheragreement orarrangement withtheCompany

oranyofitsAffiliatesshallprohibitor restrict the Executive frommakinganydisclosure of

information ordocumentsto any governmentalagencyorlegislativebody,anyself-regulatory

organization,the Legal Department of theCompany, and/or pursuant to the whistleblower

provisions oftheDodd-Frank Act or Sarbanes-Oxley Act.

ARTICLE 7

INTELLECTUAL PROPERTY

SECTION7.01.OwnershipofIntellectual Property.IntheeventthattheExecutive as

part ofhisactivitiesonbehalfof theCompany oritsAffiliatesgenerates, authorsor

contributesto anyinvention,design,newdevelopment, device,product,methodofprocess

(whetherornot patentableorreducedto practiceorcomprisingConfidentialInformation),any

copyrightable work (whether ornot comprisingConfidential Information) or anyother form of

Confidential InformationrelatingdirectlyorindirectlytothebusinessoftheCompany orits

Affiliatesasnow or hereinafter conducted (collectively,"Intellectual Property"), the

Executive acknowledgesthatsuchIntellectualPropertyisthesoleandexclusive propertyof

theCompanyandits Affiliatesandherebyassignsallrighttitleandinterestinandtosuch

IntellectualPropertytothe Companyandits Affiliates. Anycopyrightable workpreparedin

wholeorinpartbythe Executive duringemploymentwiththeCompany willbedeemed "a

workmadeforhire"under Section201(b)oftheUnitedStatesCopyrightActof1976,as

amended,andtheCompanyand its Affiliates willownallof therightscomprised inthe

copyright therein. TheExecutive will promptly andfullydiscloseallIntellectualProperty and

willcooperate withtheCompany and itsAffiliatestoprotect theinterests of theCompany and

itsAffiliates in andrightsto such IntellectualProperty(includingprovidingreasonable

assistanceinsecuringpatentprotection andcopyrightregistrationsandexecutingall

documentsasreasonablyrequestedbythe Companyor its Affiliates, whethersuchrequests

occur priorto oraftertermination of the Executive's employment hereunder).

ARTICLES

DELIVERYOFMATERIALSUPONTERMINATIONOFEMPLOYMENT

SECTION8.01.DeliveryofMaterialsuponTerminationofEmployment.Asrequested

by theCompany fromtimeto timeandupontheterminationof theExecutive'semployment

with theCompanyforanyreason,theExecutivewillpromptlydelivertotheCompanyall

propertyof theCompanyanditsAffiliatesintheExecutive'spossessionorwithinhiscontrol,

including, without limitation, allcopies and embodiments, inwhatever form or medium, of all

Confidential Information orIntellectualProperty (including written records, notes,

photographs,manuals,notebooks,documentation,programlistings,flowcharts,magnetic

media,disks,diskettes,tapes andallother materials containinganyConfidential Information or

IntellectualProperty),irrespectiveofthelocationorformofsuchpropertyand,if requestedby

the Company, willprovidethe Company with writtenconfirmation that allsuchproperty have

been delivered to the Company.

ARTICLE 9

NONCOMPETITION AND NONSOLICITATION

SECTION 9.01. Noncompetition.The Executive acknowledges that duringhis

employmentwiththeCompany, he willbecome familiar withtradesecrets andother

Confidential InformationconcerningtheCompany anditsAffiliates andtheir respective

predecessors,andthathisserviceswillbeofspecial,uniqueandextraordinary valuetothe

Company.Inaddition,theExecutiveherebyagreesthatduringtheNoncompetitionPeriod,he

willnotdirectly orindirectly own,manage, control,participate in, beemployed by,consult

with,renderservices for,provideworkfor,becomeassociatedwith,orinanymannerengagein

anyRestrictedBusinessintheRestrictedArea.Withrespecttothetwelve(12)monthperiod

aftertheExecutive'semployment ends,therestrictiononworkonlyapplies to theExecutive

providingexecutivelevelservices,whether asanemployeeorindependentcontractor,or

otherwise providingworkorservicesin anexecutive levelposition.

Forpurposes of thisAgreement,the"NoncompetitionPeriod" shallmeanthe

EmploymentPeriod,togetherwithanyperiodfollowingtheEmployment Periodduringwhich

theExecutiveremains anemployee oftheCompanyorItsAffiliate,andtheperiodoftwelve

(12)monthsfollowingterminationoftheExecutive'semploymentforanyreason;

provided,however,thatif theExecutive's termination of employment occursas

aresultoftheExecutive'sresignationorleavingofhisemployment otherthanfor Good

Reasonorattheendof theEmploymentPeriodasaresultoftheExecutive's provision

of writtennoticenot to extendtheEmployment Period underSection5.01,except as

providedinclause (Y)below,theNoncompetitionPeriodshallcontinuebeyondsuch

terminationofemployment onlyif (i)the Company paystheExecutive, foreachday

duringwhichthe Noncompetition Period so continues, anamount equalto 1/365thof

thesumof(I)theExecutive'sannualBaseSalary,plus(II)hisBonusAmountforthe

calendar year of suchtermination of employment, and(Ill) a pro-rated portion ofthe

Executive'sBonusAmountbasedonthenumberofdayselapsedinthecalendaryear

throughtheDateofTermination,suchamounttobepaidinaccordancewiththeregular

payrollpracticesof theCompany (exceptthat any amount otherwisepayable priorto

the sixtieth (60th)day followingthetermination date shallinsteadbepaidonsuch

sixtieth(60th)day);and(ii)theExecutive shallcontinue to receivehismajormedical

insurance coverage benefits fromtheCompany's planin effect from time to time

(providedtheExecutivecontinuestopaytheportionofthepremiumsfor suchcoverage

thatarechargedtosimilarlysituatedactiveemployees) foraperiodequalto thelesser

of(x)theendof the NoncompetitionPeriod, and(y) untiltheExecutive isprovidedby

another employer with benefits substantially comparable (withnopre-existing

condition limitations) to the benefits provided by such plan; and provided further,

however,that:

(X)theCompanymayelect,initssolediscretion,bywrittennoticetothe

Executivegivennotmorethanten(10)businessdaysafterthedatetheExecutive's

employment terminates,to reducetheNoncompetitionPeriodunder such

circumstancessothatitendsonthedatesetforthinsuch writtennotice(whichshall

notbelater thantwelve (12) monthsafter thetermination date),inwhichcase the

Company'sobligationtomakepayments andprovidebenefitsunderthisSection9.01

shall endatthe endoftheNoncompetition Period, and

(Y)theCompany'srequirement to makepaymentsunderthisSection

9.01asa conditiontocontinuationoftheNoncompetitionPeriodshallapplyonlyIfthe

Executive hasenteredintoageneralreleaseofclaimsreasonablysatisfactorytothe

Companyon orbeforethedatethatIsfifty(50)daysfollowingtheDateofTermination

anddoesnot revokesuchreleasepriortotheendofthestatutoryseven(7)day

revocationperiod(it beingunderstood thatsuchgeneralrelease willnotrequirethe

Executivetoreleasehis rightsunderthisSection9.01andwillnotcontainany

employment restrictionsornon-solicitationobligations otherthanthosesetforthin

thisAgreement) andtheExecutive hasfullycomplied withandcontinues to fully

comply withtheprovisions ofSections 6.01, 7.01,8.01,9.01,9.02 or10.01hereof.

Fortheavoidanceofdoubt,amountsshallnotbepayableunderboththisSection9.01

andSection5.02.TheExecutiveunderstandsandagreesthatshouldtheExecutivefailtofully

complywithanyoftheobligationsspecifiedinSections 6.01,7.01,8.01,9.01,or9.02hereof,It

willresultInaforfeiture ofanycompensation andbenefitstowhichtheExecutive may

otherwisebeentitledpursuanttoclauses(A),(B),and(C)ofSection5.02ofthisAgreement or

Section 9.01of this Agreement.

"Restricted Business"means (i)providingservices orproducts relatingto mortgage

insuranceorreinsurance,(ii)anybusinesscompetingwiththebusiness(es) oftheCompany or

itsAffiliatesassuchbusiness(es)existasofthedateoftheExecutive'stermination(forany

reason),(iii)anybusinesscompetingwiththebusiness(es) thatwereconductedbythe

CompanyoritsAffiliatesatanytime duringthetwelve(12)monthsprior to theExecutive's

termination(foranyreason);or(iv)anybusinesscompetingwiththebusiness(es) thatwere

beingactivelydevelopedbytheCompany oritsAffiliatesandwithwhichtheExecutive was

involved to a material extent duringthetwelve (12) monthsprior to termination ofthe

Executive'semployment(foranyreason).Thisrestrictiononlyappliestobusinessesofthe

Company oritsAffiliates withwhichtheExecutive wasmateriallyinvolvedorfor whichthe

Executivehadaccesstoconfidentialinformation.

"RestrictedArea"consistsoftheareasspecifiedinAppendixAattachedhereto.

ThepartiesacknowledgethattheCompanyengagesinandactively seeksbusiness

throughouttheUnitedStatesandthattheCompany'sAffiliatesengageinandactivelyseek

businessthroughouttheworld.ThepartiesfurtheracknowledgethattheExecutivewillhave

accesstoconfidential informationrelatingtoalloftheCompany's Affiliatesandregularly

participate instrategic business discussionsanddecisions relatingto theCompany'sAffiliates.

Thus,aworldwiderestrictionisnecessary toprotectthelegitimatebusinessinterestsofthe

CompanyanditsAffiliates.

TheExecutivehereby acknowledgesthattheperiod of time,scope,andterritoryrelating

to thisnoncompetitionprovision arereasonable andnecessary fortheprotectionofthe

Companyin theoperation ofbusinessanddonotundulyrestricttheExecutive's abilityto

provide for himself and/or hisfamily duringtheNoncompetitionPeriod orto pursueadequate

employment opportunities.

ItshallnotbeconsideredaviolationofthisSection9.01for theExecutivetobea

passiveownerofnotmorethan2%oftheoutstandingstockofanyclassofacorporationwhich

ispubliclytraded,solongastheExecutivehasnoactiveparticipationinthebusinessofsuch

corporation.

SECTION 9.02.Nonsolicitation.TheExecutive acknowledges that duringhis

employment withthe Company, hewillbecome familiar withtrade secrets andother

Confidential InformationconcerningtheCompany,ItsAffiliatesandtheirrespective

predecessors,andthat hisserviceswillbeofspecial,uniqueandextraordinaryvaluetothe

Company.TheExecutive hereby agrees that duringtheEmployment Period,together with

anyperiodfollowingthe EmploymentPeriodduringwhichtheExecutiveremainsanemployee

ofthe Company orits Affiliate, and fora periodof one(1)year afterthedateoftermination of

employment for any reason (the "NonsolicitationPeriod"), the Executive will not, directly or

Indirectly:

(i)solicit,induce,orattempttosolicitorInduceanyRelevantEmployee

of theCompanyto leavetheemployoftheCompany,foranyreason whatsoever;

(ii)solicit,Induce,orattempttosolicitorInduceanyRelevantEmployee

of oneofthe Company's Affiliatesto leavetheemploy of that Affiliate,forany

reason whatsoever;

(iii)inanyway disruptorinterfere withtherelationship, contractual or

otherwise betweenthe CompanyandanyRelevant Employeethereof;

(iv)in any way disrupt orinterfere withthe relationship, contractual or

otherwisebetween oneof theCompany'sAffiliates andanyRelevant Employeethereof;

or

(v)hire,employ,orreceivetheworkorservicesof anyRelevantEmployee

whicharethesameorsimilartotheworkorservicesthatRelevantEmployeeprovided

to the Company or its Affiliates.

ForpurposesofthisAgreement, a"Relevant Employee"shallmeananyindividualwho

was employed withtheCompany oranyAffiliateof theCompany asadirector,officer,

executive,underwriter ormanageratanytimeduringthetwelve (12)monthperiodpriorto the

termination of theExecutive's employment (foranyreason) and withwhom the Executive had

contactduringtheExecutive'semploymentwiththeCompanyorbecame awareofasaresult

of the Executive's employment withtheCompany.

TheExecutivefurther agrees thatduringtheNonsolicitation Period,theExecutive will

not, directly or Indirectly:

(i)solicit, induce, or attempt to solicit or induce any Restricted Customer

to cease doing businesswith the Company; or

(ii)solicit, induce, or attempt to solicit or induce any Restricted Customer

to cease doing business with any Affiliate of the Company.

For purposes ofthis Agreement, a "Restricted Customer"shall mean any firm,

company, orPersonwhowasacustomer,investor,supplier,client,Insured,reinsured,

reinsurer,broker, agent,licenseeorotherbusiness relationoftheCompany or any ofIts

Affiliatesatanytime duringthe twelve (12) month periodpriortothetermination ofthe

Executive'semployment (foranyreason)andwithwhomtheExecutivehadcontactduringthe

Executive's employment withtheCompany orbecame awareof asaresult oftheExecutive's

employment withthe Company.

SECTION 9.03.Enforcement. If,attheenforcementof Section9.01or9.02,acourt

holds that the duration, territory, or scopestated therein are unreasonableunder

circumstancesthen existing, the parties agree that the maximumduration, territory,and

scope reasonableunder such circumstanceswill be substituted for the stated duration or

scope and itis theparties' intention that the courtwill revise therestrictionscontainedin

thisArticle9tocoverthe maximum duration and scope permitted by law.

ARTICLE 10

EQUITABLE RELIEF

SECTION10.01.Injunctive orOther EquitableRelief.TheExecutiveacknowledgesthat

(a) the covenantscontainedhereinare reasonable,(b) the Executive'sservicesareunique,

and (c) a breachor threatenedbreachby himof anyof his covenantsandagreementswith

the Company and itsAffiliates contained in Sections 6.01, 7.01, 8.01, 9.01or 9.02 could

cause irreparableharmtotheCompanyoritsAffiliatesforwhichtheywould haveno

adequate remedyat law.Accordingly,and inadditiontoany remedieswhich theCompany

and its Affiliates may have at law,in the event ofan actualor threatened breach by the

Executive ofhis covenantsandagreementscontainedin Sections6.01, 7.01, 8.01, 9.01or

9.02, theCompany anditsAffiliatesshallhavetheabsoluteright,withouttheneedtopost

abondoranyother type ofsecurity, tocommencea lawsuitor otherproceedinginany

court ofcompetent jurisdiction(the "SelectedCourt") seeking injunctiveor otherequitable

relief (an "Injunction Proceeding").In furtherance thereof, the Executive expressly and

irrevocably agrees that the Selected Courtmay exercisepersonaljurisdiction over him in

connectionwith any Injunction

ProceedingandfurtheragreesnottoassertthatanycourtotherthantheSelectedCourtisa

more suitable forum for anInjunction Proceeding.

ARTICLE 11

EXECUTIVEREPRESENTATIONS

SECTION 11.01.Executive Representations.TheExecutive herebyrepresents and

warrantstothe Companythat(a)theexecution,delivery andperformanceofthisAgreement

bythe Executivedoesnotandwillnotconflict with,breach,violateorcauseadefaultunder

anycontract,agreement,instrument,order,judgmentordecreetowhichthe Executiveisa

partyorbywhichheisbound,(b)theExecutiveIsnotapartyto orboundbyanyemployment

agreement,noncompetitionagreement orconfidentialityagreementwithany other Person

that affectshisrightor abilityto perform the duties contemplated bythisAgreement, and(c)

upontheexecutionanddeliveryof thisAgreementbytheCompany,thisAgreementwillbe

the validandbindingobligation oftheExecutive,enforceable inaccordance withitsterms.

ARTICLE 12

MISCELLANEOUS

SECTION 12.01. Remedies. The Company will have all rights and remedies set forth

in this Agreement, all rights and remedies which the Company has been granted at any time

under any other agreement or contract and all of the rights which the Company has under

any law. The Company will be entitled to enforce such rights specifically, without posting a

bond or other security, to recover damages by reason of any breach of any provision of this

Agreement and to exercise all other rights granted by law. There are currently no

disciplinary or grievance procedures in place, there is no collective agreement in place, and

there is no probationary period.

SECTION12.02.Consent to Amendments. Theprovisionsof thisAgreement maybe

amendedorwaivedonly by a writtenagreementexecutedand delivered by the Company

and the Executive. Noother course ofdealingbetween theparties tothis Agreementor any

delayIn exercising any rights hereunderwill operate as a waiverof any rights of any such

parties.

SECTION12.03.SuccessorsandAssigns.Allcovenantsandagreementscontainedin

this Agreementbyoron behalf ofany of theparties heretowill bindand inure tothe benefit

of the respective successors and assigns ofthe parties hereto whether soexpressed or not,

provided that theExecutive may notassign his rights or delegate his obligations under this

Agreement without the written consent of theCompany.

SECTION12.04.Severability. Whenever possible,eachprovisionofthisAgreement

will be interpreted in such mannerastobe effective and valid under applicable law, but if

any provision of this Agreementis held tobe prohibitedby or invalid underapplicablelaw,

such

provisionwillbeineffective onlyto theextentof suchprohibitionorinvalidity,without

invalidatingthe remainderof this Agreement.

SECTION 12.05.Counterparts. This Agreement may beexecuted simultaneouslyin

two counterparts,anyoneofwhichneednotcontainthesignaturesofmorethanoneparty,

butall ofwhichcounterparts takentogether willconstitute oneandthesame agreement.

SECTION12.06.DescriptiveHeadings.ThedescriptiveheadingsofthisAgreement

are insertedfor convenienceonly and do not constitutea part of this Agreement.

SECTION12.07.Notices.Allnotices,demandsorothercommunicationstobegivenor

deliveredunderorbyreasonof theprovisions of thisAgreementwillbein writingandshallbe

deliveredpersonally byhand,byelectronic transmission(withacopy followingbyhand orby

overnightcourier),byregisteredorcertifiedmail,postageprepaid,returnreceiptrequested,or

byovernightcourierservice(chargesprepaid).Communicationsdeliveredpersonallybyhand

shallbedeemedreceived onthedate whendeliveredpersonallytotherecipient;

communicationssent by electronic means shall be deemed received one (1) business day

after thesendingthereof;communicationssentbyregistered or certifiedmailshallbedeemed

receivedfour(4)businessdaysafterthesendingthereof;andcommunicationsdeliveredby

overnightcouriershallbedeemedreceivedone(1)businessdayafterthedatewhensentto

therecipient.Suchnotices,demandsandother communicationswillbesentto theExecutive

andto theCompany atthe addresses setforth below.

ortosuchotheraddressortotheattentionofsuchotherpersonastherecipientpartyhas

specified byprior written notice to the sending party.

SECTION 12.08.Withholding.The Company may withhold from any amounts

payable underthisAgreement suchfederal,state,localorforeigntaxesasshallberequiredto

be withheld pursuantto any applicable law or regulation.

SECTION12.09.Sections409A.ItisintendedthatthisAgreementwillcomplywith

Sections 409A of theInternalRevenue Code of 1986,asamended (the"Code") (and any

regulationsandguidelinesissuedthereunder),totheextenttheAgreement issubjectthereto,

andtheAgreement shallbeinterpreted onabasisconsistent withsuchintent.Ifan

amendmentofthe Agreementisnecessary in orderforit tocomplywithSection409A,the

partiesheretowillnegotiateingoodfaithto amendtheAgreementin amannerthatpreserves

theoriginalintent ofthepartiesto theextentreasonably possible.Noactionor failureto act,

pursuant tothisSection12.09 shall subject theCompany toanyclaim,liability, or expense,

and theCompanyshallnothaveanyobligationtoindemnify orotherwise protect the

Executive fromthe obligationto payanytaxes,interest orpenaltiespursuant to Section 409A

of the Code.

Notwithstandinganyprovisiontothecontraryin this Agreement, if theExecutive is

deemed on thedateof his"separation fromservice" (withinthemeaningofTreasury

Regulation Section1.409A-l(h)) to bea "specified employee" withinthemeaningofthatterm

underSection409A(a)(2)(B)oftheCode,thenwithregardtoanypaymentthatisrequiredtobe

delayedpursuanttoSection409A(a)(2)(B)oftheCode(aftertakingintoaccounttheapplicable

provisionsof Treasury Regulation Section1.409A-l(b)(9)(iii)),theportion,if any,of such

payment sorequiredto bedelayedshallnotbemadepriorto theearlier of(i)theexpiration of

thesix (6)-month periodmeasured fromthe dateofhis "separation fromservice" or (ii) the

dateof his death (the "DelayPeriod'').Upontheexpiration of theDelay Period, all

payments andbenefitsdelayedpursuant to thisSection(whether they wouldhaveotherwise

been payableinasinglesumorininstallmentsintheabsenceofsuchdelay)shallbepaidor

reimbursedto the Executivein alumpsum,andanyremainingpaymentsdueunderthis

Agreement shallbepaidInaccordance withthenormalpayment datesspecified forthem

herein.WheneverpaymentsunderthisAgreementaretobemadeinInstallments, eachsuch

InstallmentshallbedeemedtobeaseparatepaymentforpurposesofSection409Aofthe

Code.Notwithstandinganyprovisionof thisAgreement to thecontrary,forpurposes ofany

provisionof this Agreement providingfor thepayment of any amounts or benefits upon or

followingatermination of employmentthatareconsidered deferred compensation under

Section409A,referencestotheExecutive's"terminationofemployment"(andcorollaryterms)

withtheCompany shallbeconstruedto referto theExecutive's "separation from

service" (withinthemeaningof Treas.Reg.Section1.409A-1(h))withtheCompany.Inno

casewill compliancewiththisSectionbytheCompanyconstituteabreachoftheCompany's

obligations under this Agreement.

Withrespect toanyreimbursement orin-kindbenefit arrangementsoftheCompany

and itssubsidiaries that constitute deferred compensation for purposes of Section 409A,

except as otherwise permitted bySection 409A,the followingconditions shallbe applicable:

(i)the amount eligible for reimbursement,orin-kindbenefitsprovided, under anysuch

arrangementinone calendaryearmaynotaffectthe amounteligibleforreimbursement,orIn-

kindbenefitstobe provided, under sucharrangement in anyother calendar year (except that

thehealth anddental plans may impose alimitonthe amount thatmaybereimbursed or

paid),(ii) anyreimbursement mustbemade onorbeforethelastdayof thecalendar year

followingthecalendar yearinwhich theexpense wasIncurred, and(iii)theright to

reimbursementorin-kind benefits isnotsubject to liquidation orexchange for another

benefit.

SECTION12.10.ExcessParachutePayments.

(a)Notwithstandinganyother provision of thisAgreement, in theevent that the

amountof paymentsorotherbenefitspayabletotheExecutiveunderthisAgreement

(including,withoutlimitation,theaccelerationofanypaymentortheacceleratedvestingofany

payment orotherbenefit),together withanypayments, awardsorbenefitspayableunder any

other plan,program, arrangement oragreement maintained bytheCompany oroneofits

Affiliates, wouldconstitute an"excess parachutepayment" (withinthemeaningofSection

280G of theCode), thepayments under Section 5.02 of this Agreementshall bereduced (by

the minimumpossible amounts) untilnoamountpayableto theExecutiveunderthis

Agreement constitutesan"excessparachutepayment"(withinthemeaningofSection 280G

oftheCode); provided.however.thatnosuchreduction shallbemadeif thenetafter-tax

payment (after takingIntoaccountfederal.state,localorotherincome.employmentand

excisetaxes)to whichtheExecutive wouldotherwisebeentitledwithoutsuchreduction

wouldbegreater than thenet after-tax payment (after takinginto account federal. state. local

orotherincome, employmentandexcisetaxes)to theExecutiveresultingfromthereceiptof

suchpayments with such reduction.

(b)Alldeterminationsrequiredto bemade under thisSection 12.10, including

whetherapaymentwouldresultinan"excessparachutepayment"andtheassumptionstobe

utilizedin arrivingatsuchdeterminations,shallbemadebyanationally recognizedaccounting

or consulting firm designated bytheCompany (the "AccountingFirm") which shall provide

detailedsupportingcalculationsbothtotheCompany andtheExecutiveasrequestedbythe

CompanyortheExecutive.Allfeesandexpenses oftheAccountingFirmshallbebornesolely

bytheCompanyandshallbepaidbytheCompany.Absentmanifesterror,alldeterminations

madebytheAccountingFirmunder thisSection12.10shallbefinalandbindinguponthe

Company andthe Executive.

SECTION12.11.NoThirdPartyBeneficiary.ThisAgreement willnotconferanyrights

or remedies upon any person other than the Companyand its Affiliates, the Executive and

their respective heirs, executors, successors and assigns.

SECTION12.12.EntireAgreement.ThisAgreement (includingthedocuments

referredto herein)constitutestheentireagreementamongtheparties andsupersedes any

prior understandings,agreements or representationsby or amongthe parties, written or oral,

that may have relatedin any way tothe subject matter hereof.Including, without limitation,

the EmploymentAgreement dated as of , between the Company and the

Executive.

SECTION12.13.Construction.ThelanguageusedinthisAgreementwillbedeemedto

be thelanguagechosen bythepartiesto express their mutualintent, andnorule of strict

construction willbeapplied against anyparty.Anyreference toanyfederal,state,localor

foreign statute orlaw willbedeemed alsotoreferto allrules andregulations promulgated

thereunder, unlessthecontext requires otherwise. Theuse oftheword "including" inthis

Agreementmeansincludingwithoutlimitationandisintendedbythepartiestobebywayof

example rather than limitation.

SECTION12.16.Survival. Sections 5.02,5.04,6.01, 6.02, 7.01,8.01andArticles9,10,11

and12willsurvive andcontinue in fullforce in accordance withtheir terms notwithstanding

any termination of theEmployment Period.

SECTION 12.17.GOVERNING LAW. ALLQUESTIONS CONCERNINGTHE

CONSTRUCTION, VALIDlTY AND INTERPRETATION OF THIS AGREEMENT WILL BE

GOVERNED BV THE INTERNAL LAW OF NORTH CAROLINA, WITHOUT REGARD TO

PRINCIPLES OF CONFLICT OF LAWS.

SECTION12.18.Arbitration.ExceptwhentheCompanyoritsAffiliatesexercisetheir

rightto seekInjunctiveorotherequitablereliefpursuantto Section10.01above,alldisputes

betweenthepartiesarisingoutof,Inconnection withorconcerningthisAgreement orany

share-basedaward agreements betweentheCompany andtheExecutive (collectively,the

"Disputes")shallbeadjudicated inaconfidential privatearbitrationtobeconductedIn

accordancewiththecomprehensiverulesandproceduresofJAMS(the"JAMSRules"),

Including,butnotlimitedto,theInternalappealprocess providedforInJAMSRule34(the

"Arbitration").The Arbitration shallbeconducted before apanel ofthree arbitrators (the

"Panel"),oneappointedbytheCompany,another appointed bytheExecutive andthethird

appointed by the other two arbitrators (or,if thetwo arbitrators cannot agree, thethird

arbitratorshallbeappointedbyJAMS).SubjecttotheJAMSRules,in-personhearingsinthe

arbitrationshallbeheldInWakeCounty,StateofNorthCarolina,andshallbeconducted in

English.Thepartiesshalleachpayfiftypercent (50%) ofthePanel's feesandothercostsbilled

to theparties byJAMS fortheArbitration.Notwithstandingtheimmediately preceding

sentence,eachofthepartiesshallpayitsownattorneys' feesandcostsincurredinconnection

withtheArbitration.ThePanelshallhavenoauthority torender anaward thatrequires either

ofthepartiesto paytheattorneys' feesorcostsincurred bytheother partyinconnection with

theArbitration orotherwise.AJudgment upona finalawardrenderedbythePanel, after

givingeffecttotheJAMSinternalappealprocess,maybesought andenteredinanycourt

havingjurisdictionthereof(an"Enforcement Proceeding").IfJAMSisnotinbusinessorisno

longerprovidingarbitration services,thentheAmericanArbitrationAssociation shallbe

substitutedforJAMSforthepurposes ofthisSection12.18.Eachpartyshallmaintainthe

confidentialityoftheArbitration(includinganyawardrenderedtherein),exceptasnecessaryin

connection withanEnforcement Proceedingorasotherwise requiredbylaw.

INWITNESSWHEREOF,thepartiesheretohaveexecutedthisAgreementasofthe

date and year first abovewritten.