<PAGE>
                                                                    Exhibit 10.6

                              EMPLOYMENT AGREEMENT

            This Employment Agreement (this "Agreement") is entered into as of
December 26, 2002 (the "Execution Date") between Endurance Specialty Holdings
Ltd., a Bermuda company (the "Company"), and David Cash (the "Executive").

            WHEREAS, the Company desires to employ the Executive to serve as the
Chief Actuary/Risk Officer of the Company, and the Executive desires to be
employed by the Company, upon the terms and subject to the conditions set forth
herein; and

            WHEREAS, this Agreement replaces that certain Employment Agreement,
dated as of December 26, 2001, between the Company and the Executive (the
"Original Agreement").

            NOW, THEREFORE, in consideration of the premises and the mutual
agreements contained herein, the Company and the Executive hereby agree as
follows:

            1. EMPLOYMENT. (a) Term. The Company hereby agrees to employ the
Executive and the Executive hereby agrees to be employed by the Company upon the
terms and subject to the conditions contained in this Agreement. The term of
employment of the Executive by the Company pursuant to this Agreement (the
"Employment Period") shall commence as of December 26th, 2002 (the "Effective
Date") and shall end on the first anniversary of the Effective Date, unless
earlier terminated pursuant to Section 4 hereof.

            (b) Expiration of Term. At the expiration of the term of this
Agreement, the Company may in its sole discretion offer employment to the
Executive pursuant to a separate employment agreement. If at the expiration of
the term of this Agreement the Company does not offer the Executive employment
pursuant to a separate employment agreement, the terms of which are at least as
favorable (determined as set forth below) to the Executive as the terms of this
Agreement (a "Separate Employment Agreement"), the Company shall agree to enter
into with the Executive a general release and nonsolicitation agreement
substantially in the form of Exhibit A hereto (the "Release and Nonsolicitation
Agreement"). For purposes of determining whether the terms of a Separate
Employment Agreement are at least as favorable to the Executive as the terms of
this Agreement, (i) the Separate Employment Agreement shall include the terms of
this Agreement, including this Section 1(b) and (ii) the term of payment of Base
Salary set forth in Section 1(a) of Exhibit A to the Separate Employment
Agreement and the term of continuation of benefits set forth in Section 1(c) of
Exhibit A to the Separate Employment Agreement in no event shall extend beyond
December 26th, 2007. Notwithstanding any other provision of this Section 1(b),
the Company shall not be required to enter into the Release and Nonsolicitation
Agreement if this Agreement terminates for a reason set forth in Section 4 of
this Agreement.

            2. POSITION AND DUTIES. (a) Position. The Company shall employ the
Executive during the Employment Period as its Chief Actuary/Risk Officer. During
the Employment Period, the Executive shall perform faithfully and loyally and to
the best of the Executive's abilities the duties assigned to the Executive
hereunder and shall devote the Executive's full business time, attention and
effort to the affairs of the Company and its subsidiaries and shall use the
Executive's reasonable best efforts to promote the interests of the
<PAGE>
Company and its subsidiaries. The Executive may engage in charitable, civic or
community activities, provided that such activities do not interfere with the
Executive's duties hereunder or violate the terms of any of the covenants
contained in Section 6, 7 or 8 hereof.

            (b) Duties. The Executive shall perform such duties as are normally
associated with the position of Chief Actuary/Risk Officer on behalf of the
Company and its subsidiaries as may from time to time be authorized or directed
by the board of directors of the Company (the "Board") or by the CEO. The
Executive shall perform such duties in accordance with the Company's operational
guidelines.

            3. COMPENSATION. (a) Base Salary. During the Employment Period, the
Company shall pay to the Executive a base salary at the rate of US $350,000 per
annum ("Base Salary"), payable in accordance with the Company's executive
payroll policy.

            (b) Annual Bonus. The Executive shall be eligible each Period to
receive an annual incentive bonus payable in cash ("Annual Bonus"). The Annual
Bonus shall be based upon (i) the performance of the Company, (ii) the
performance of the business unit or units of the Company for which the Executive
is responsible and (iii) the Executive's personal contribution to the success of
the Company, each as determined by the CEO in his sole discretion. The Annual
Bonus shall not exceed 100% of the Executive's Base Salary. Such annual bonus
shall be paid after the end of the Period at the same time as annual bonuses are
paid to other executives.

            (c) Relocation Expenses. The Company shall pay the Executive's
proper and reasonable expenses relating to the relocation of the Executive's
primary residence in a manner agreeable to the Company and the Executive upon
the termination of the Executive's employment by the Company for any reason
other than Serious Misconduct. Prior to such payment the Executive shall provide
to the Company any substantiation for such expenses requested by the Company.

            (d) Housing Allowance. The Company shall pay the Executive's proper
and reasonable expenses relating to the maintenance of the Executive's primary
residence in Bermuda during the Employment Period. Prior to such payment the
Executive shall provide to the Company any substantiation for such expenses
requested by the Company. Notwithstanding the foregoing, the maximum amount the
Company shall pay pursuant to this Section 3(d) shall be US $120,000.00, which
maximum amount shall be prorated if the Employment Period terminates prior to
the expiration of this Agreement on the first anniversary of the Effective Date.

            (e) Tax Gross-Up. To the extent that the Executive incurs any United
States federal or state ordinary income tax liability on account of the housing
allowance specified in Section 3(d) hereof, the Company shall reimburse the
Executive for all such tax liability incurred and all United States federal and
state ordinary income tax liability incurred as a result of the tax gross-up
payments specified pursuant to this Section 3(e).

            (f) Other Benefits. During the Employment Period, the Executive
shall be entitled to participate in (i) the Company's medical and dental plans,
(ii) a suitable pension arrangement in accordance with Bermuda law and (iii) any
other employee benefit plans made


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<PAGE>
generally available to executives of the Company (such benefits set forth in
items (i), (ii) and (iii) hereof being hereinafter referred to as the "Employee
Benefits"). The Executive shall be entitled to five weeks of paid vacation. The
Executive also shall be entitled to take time off for illness in accordance with
the Company's policy for executives and to receive all other fringe benefits as
are from time to time made generally available to executives of the Company.

            (g) Expense Reimbursement. During the Employment Period, the Company
shall reimburse the Executive, in accordance with the Company's policies and
procedures, for all proper and reasonable expenses incurred by the Executive in
the performance of the Executive's duties hereunder.

            4. TERMINATION. (a) Death. Upon the death of the Executive, this
Agreement shall automatically terminate and all rights of the Executive and the
Executive's heirs, executors and administrators to compensation and other
benefits under this Agreement shall cease immediately, except that the
Executive's heirs, executors or administrators, as the case may be, shall be
entitled to:

            (i)   accrued Base Salary through and including the date of the
                  Executive's death;

            (ii)  other Employee Benefits to which the Executive was entitled on
                  the date of the Executive's death in accordance with the terms
                  of the plans and programs of the Company;

            (iii) payment, in accordance with the Company's executive payroll
                  policy, for each year during the period commencing on the date
                  of the Executive's death and ending on December 26th, 2007, of
                  an amount equal to the Base Salary, which amount shall be
                  prorated for any partial year during such period of payment;

            (iv)  the exercise of the Option (as defined in the Original
                  Agreement) in accordance with the 20% Vesting Schedule,
                  determined as if the Executive continuously had remained an
                  employee of the Company until December 26th, 2007, through and
                  including December 26th, 2008 and, to the extent not exercised
                  during such period, the Option shall terminate; and

            (v)   the continuation until December 26th, 2007 of the Employee
                  Benefits to which the Executive was entitled on the date of
                  the Executive's death, subject to such changes thereto as are
                  generally applicable to the executives of the Company from
                  time to time.

            (b) Disability. The Company may, at its option, terminate this
Agreement upon 30 days prior written notice to the Executive if the Executive,
because of physical or mental incapacity or disability, fails to perform the
essential functions of the Executive's position, with or without reasonable
accommodation, required of the Executive hereunder for a continuous period of
120 days or any 180 days during the Employment Period. Upon such termination,
all obligations of the Company hereunder shall cease immediately, except that
the Executive shall be entitled to:


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<PAGE>
            (i)   accrued Base Salary through and including the effective date
                  of the Executive's termination of employment;

            (ii)  other Employee Benefits to which the Executive is entitled
                  upon termination of employment in accordance with the terms of
                  the plans and programs of the Company;

            (iii) payment, in accordance with the Company's executive payroll
                  policy, for each year during the period commencing on the date
                  of the Executive's termination of employment and ending on
                  December 26th, 2007, of an amount equal to the Base Salary,
                  which amount shall be prorated for any partial year during
                  such period of payment;

            (iv)  the exercise of the Option (as defined in the Original
                  Agreement) in accordance with the 20% Vesting Schedule,
                  determined as if the Executive continuously had remained an
                  employee of the Company until December 26th, 2007, through and
                  including December 26th, 2008 and, to the extent not exercised
                  during such period, the Option shall terminate; and

            (v)   the continuation until December 26th, 2007 of the Employee
                  Benefits to which the Executive was entitled on the date of
                  the Executive's termination of employment, subject to such
                  changes thereto as are generally applicable to the executives
                  of the Company from time to time.

            (c) Serious Misconduct or Repeated Misconduct. (i) The Company may,
at its option, terminate the Executive's employment under this Agreement for
Serious Misconduct or Repeated Misconduct (as each term hereinafter is defined)
upon written notice to the Executive (the "Termination Notice"). The Termination
Notice shall state the particular action(s) or omission(s) giving rise to
termination for Serious Misconduct or Repeated Misconduct.

            (ii)  As used in this Agreement, the term "Serious Misconduct" shall
                  mean:

                  (A) any intentional act of fraud, embezzlement or theft by the
                  Executive in connection with the Executive's duties hereunder
                  or in the course of the Executive's employment hereunder or
                  any prior employment, or the Executive's admission or
                  conviction of a felony or of any crime involving moral
                  turpitude, fraud, embezzlement or theft;

                  (B) any breach by the Executive of any one or more of the
                  covenants contained in Section 6, 7 or 8 hereof;

                  (C) any violation by the Executive of any statutory or common
                  law duty of loyalty to the Company or any of its subsidiaries;
                  or

                  (D) any other action or omission by the Executive which is
                  considered to be serious misconduct under The Employment Act
                  2000.


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<PAGE>
            (iii) As used in this Agreement, the term "Repeated Misconduct"
      shall mean any one or more of the following actions or omissions and,
      within six months of the date the Executive receives from the Board and
      the CEO two written warnings thereof, a repetition of such act or
      omission:

                  (A) any gross negligence, willful misconduct or gross
                  insubordination by the Executive; or

                  (B) any other action or omission by the Executive which is
                  considered to be misconduct under The Employment Act 2000; or

                  (C) substandard performance.

            (iv)  The exercise of the right of the Company to terminate this
                  Agreement pursuant to this Section 4(c) shall not abrogate the
                  rights or remedies of the Company in respect of the breach
                  giving rise to such termination.

            (v)   If the Company terminates the Executive's employment under
                  this Agreement for Serious Misconduct, the Option (as defined
                  in the Original Agreement) shall terminate automatically on
                  the date of the Executive's termination of employment, and all
                  obligations of the Company hereunder shall cease, except that
                  the Executive shall be entitled to the payments and benefits
                  specified in Sections 4(b)(i) and 4(b)(ii) hereof.

            (vi)  If the Company terminates the Executive's employment under
                  this Agreement for Repeated Misconduct, all obligations of the
                  Company hereunder shall cease, except that the Executive shall
                  be entitled to:

                  (A) the payments and benefits specified in Sections 4(b)(i)
                  and 4(b)(ii) hereof;

                  (B) provided that the Executive executes a general release
                  substantially in the form of Exhibit B hereto (the "General
                  Release"), an amount equal to Base Salary, reduced pro-rata to
                  reflect payment for a partial year, for the period commencing
                  on the date of the Executive's termination of employment and
                  ending on the date which is the six-month anniversary of the
                  Executive's termination of employment, payable in accordance
                  with the Company's executive payroll policy;

                  (C) provided that the Executive executes the General Release,
                  the continuation of the Employee Benefits to which the
                  Executive was entitled on the date of the Executive's
                  termination of employment until the six-month anniversary of
                  the Executive's termination of employment (subject to such
                  changes thereto as are generally applicable to the executives
                  of the Company from time to time); and

                  (D) the exercise of the Option to the extent it is exercisable
                  on the date of the Executive's termination of employment,
                  through and including the date which is 90 days following the
                  date of the Executive's termination of


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<PAGE>
                  employment, it being understood that the portion of the Option
                  which is not exercisable on the date of the Executive's
                  termination of employment shall terminate on such date and the
                  portion of the Option which is exercisable on the date of the
                  Executive's termination of employment, if not exercised during
                  such 90-day period, shall terminate as of the end of such
                  90-day period.

Notwithstanding Section 4(c)(vi)(B) hereof, the amount payable to the Executive
under such Section 4(c)(vi)(B) shall be reduced by the amount of salary, bonus
or other compensation which the Executive earns from a subsequent employer that
relates to the period for which the amount is payable to the Executive under
such Section 4(c)(vi)(B); provided, however, that in no event shall the amount
payable to the Executive under Section 4(c)(vi)(B) hereof be reduced to an
amount that is less than US $50,000 (such US $50,000 amount being attributable
to the consideration paid to the Executive for the general release and being
referred to hereinafter as the "General Release Consideration"). The Executive
shall use reasonable efforts to seek other employment for this purpose. In the
event that any provision of Section 6, 7 or 8 of this Agreement is not performed
by the Executive in accordance with its terms or is otherwise breached by the
Executive, the Company's payment to the Executive of the amount under Section
4(c)(vi)(B) hereof (other than the General Release Consideration) and the
Company's provision to the Executive of the Employee Benefits under Section
4(c)(vi)(C) hereof immediately shall cease and the Executive's right to any such
amount or benefits immediately shall be forfeited.

            (d) Voluntary Termination. Upon 30 days prior written notice to the
Company (or such shorter period as may be permitted by the Board), the Executive
may, during the Employment Period, voluntarily terminate the Executive's
employment with the Company for any reason. If the Executive voluntarily
terminates the Executive's employment pursuant to this Section 4(d), (i) the
Option (as defined in the Original Agreement) shall be exercisable only to the
extent it is exercisable on the date of the Executive's termination of
employment and thereafter may be exercised by the Executive until the date which
is 90 days following the date of the Executive's termination of employment, it
being understood that the portion of the Option which is not exercisable on the
date of the Executive's termination of employment shall terminate on such date
and the portion of the Option which is exercisable on the date of the
Executive's termination of employment, if not exercised during such 90-day
period, shall terminate as of the end of such 90-day period and (ii) all
obligations of the Company hereunder shall cease immediately, except that the
Executive shall be entitled to the payments and benefits specified in Sections
4(b)(i) and 4(b)(ii) hereof.

            5. TAX WITHHOLDING. The Company shall deduct from the amounts
payable to the Executive pursuant to this Agreement the amount of taxes that the
Company is required to withhold pursuant to applicable laws, rules and
regulations.

            6. NONCOMPETITION; NONSOLICITATION. (a) General. The Executive
acknowledges that in the course of the Executive's employment with the Company
the Executive will become familiar with trade secrets and other confidential
information concerning the Company and its subsidiaries and that the Executive's
services will be of special, unique and extraordinary value to the Company and
its subsidiaries.


                                       6
<PAGE>
            (b) Noncompetition. The Executive agrees that during the Employment
Period the Executive shall not in any manner, directly or indirectly, through
any person, firm or corporation, alone or as a member of a partnership or as an
officer, director, stockholder, investor or employee of or consultant to any
other corporation or enterprise or otherwise, engage or be engaged, or assist
any other person, firm, corporation or enterprise in engaging or being engaged,
in the Business (as defined in this Section 6(b)) in any geographic area in
which the Company or any of its subsidiaries is then conducting such business.
For purposes of this Agreement, the "Business" shall mean any property or
casualty coverages underwritten by the Company or any of its subsidiaries as an
insurer or reinsurer during the Employment Period or the one-year period
immediately preceding the commencement of the Employment Period.

            (c) Nonsolicitation. The Executive further agrees that during the
Employment Period and for a period of one year thereafter the Executive shall
not (i) in any manner, directly or indirectly, induce or attempt to induce any
employee of the Company or any of its subsidiaries to terminate or abandon his
or her employment for any purpose whatsoever or (ii) in connection with the
Business, call on, service, solicit or otherwise do business with any customer
of the Company or any of its subsidiaries.

            (d) Exceptions. Nothing in this Section 6 shall prohibit the
Executive from being (i) a stockholder in a mutual fund or a diversified
investment company or (ii) an owner of not more than two percent of the
outstanding stock of any class of a corporation, any securities of which are
publicly traded, so long as the Executive has no active participation in the
business of such corporation.

            (e) Reformation. If, at any time of enforcement of this Section 6, a
court or an arbitrator holds that the restrictions stated herein are
unreasonable and/or unenforceable under circumstances then existing, the parties
hereto agree that the maximum period, scope or geographical area reasonable
and/or enforceable under such circumstances shall be substituted for the stated
period, scope or area and that the court or arbitrator shall be allowed to
revise the restrictions contained herein to cover the maximum period, scope and
area permitted by law. This Agreement shall not authorize a court or arbitrator
to increase or broaden any of the restrictions in this Section 6.

            7. CONFIDENTIALITY. The Executive shall not, at any time during the
Employment Period or thereafter, make use of or disclose, directly or
indirectly, any (i) trade secret or other confidential or secret information of
the Company or of any of its subsidiaries or (ii) other technical, business,
proprietary or financial information of the Company or of any of its
subsidiaries not available to the public generally or to the competitors of the
Company or to the competitors of any of its subsidiaries ("Confidential
Information"), except to the extent that such Confidential Information (a)
becomes a matter of public record or is published in a newspaper, magazine or
other periodical or on electronic or other media available to the general
public, other than as a result of any act or omission of the Executive, (b) is
required to be disclosed by any law, regulation or order of any court or
regulatory commission, department or agency, provided that the Executive gives
prompt notice of such requirement to the Company to enable the Company to seek
an appropriate protective order, or (c) is required to be used or disclosed by
the Executive to perform properly the Executive's duties under this Agreement.
Promptly following the termination of the Executive's employment with the
Company, the Executive shall surrender


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<PAGE>
to the Company all records, memoranda, notes, plans, reports, computer tapes and
software and other documents and data which constitute Confidential Information
which the Executive may then possess or have under the Executive's control
(together with all copies thereof).

            8. INVENTIONS. The Executive hereby assigns to the Company the
Executive's entire right, title and interest in and to all discoveries and
improvements, patentable or otherwise, trade secrets and ideas, writings and
copyrightable material, which may be conceived by the Executive or developed or
acquired by the Executive during the Employment Period, which may pertain
directly or indirectly to the business of the Company or any of its
subsidiaries. The Executive agrees to disclose fully all such developments to
the Company upon its request, which disclosure shall be made in writing promptly
following any such request. The Executive shall, upon the Company's request,
execute, acknowledge and deliver to the Company all instruments and do all other
acts which are necessary or desirable to enable the Company or any of its
subsidiaries to file and prosecute applications for, and to acquire, maintain
and enforce, all patents, trademarks and copyrights in all countries.

            9. ENFORCEMENT. The parties hereto agree that the Company and its
subsidiaries would be damaged irreparably in the event that any provision of
Section 6, 7 or 8 of this Agreement was not performed in accordance with its
terms or was otherwise breached and that money damages would be an inadequate
remedy for any such nonperformance or breach. Accordingly, the Company and its
successors and permitted assigns shall be entitled, in addition to other rights
and remedies existing in their favor, to an injunction or injunctions to prevent
any breach or threatened breach of any of such provisions and to enforce such
provisions specifically (without posting a bond or other security). The
Executive agrees that the Executive will submit to the personal jurisdiction of
the courts of Bermuda in any action by the Company to enforce an arbitration
award against the Executive or to obtain interim injunctive or other relief
pending an arbitration decision.

            10. REPRESENTATIONS. The Executive represents and warrants to the
Company that (a) the execution, delivery and performance of this Agreement by
the Executive does not and will not conflict with, breach, violate or cause a
default under any contract, agreement, instrument, order, judgment or decree to
which the Executive is a party or by which the Executive is bound, (b) the
Executive is not a party to or bound by any employment agreement, noncompetition
agreement or confidentiality agreement with any other person or entity and (c)
upon the execution and delivery of this Agreement by the Company, this Agreement
shall be the valid and binding obligation of the Executive, enforceable in
accordance with its terms.

            11. SURVIVAL. Sections 6, 7, 8 and 9 of this Agreement shall survive
and continue in full force and effect in accordance with their respective terms,
notwithstanding any termination of the Employment Period.

            12. ARBITRATION. Except as otherwise set forth in Section 9 hereof,
any dispute or controversy between the Company and the Executive, whether
arising out of or relating to this Agreement, the breach of this Agreement, or
otherwise, shall be settled by arbitration in Bermuda administered by the
American Arbitration Association, with any such dispute or controversy arising
under this Agreement being so administered in accordance with its Commercial
Rules then in effect, and judgment on the award rendered by the arbitrator may
be


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<PAGE>
entered in any court having jurisdiction thereof. The arbitrator shall have the
authority to award any remedy or relief that a court of competent jurisdiction
could order or grant, including, without limitation, the issuance of an
injunction. However, either party may, without inconsistency with this
arbitration provision, apply to any court having jurisdiction over such dispute
or controversy and seek interim provisional, injunctive or other equitable
relief until the arbitration award is rendered or the controversy is otherwise
resolved. Except as necessary in court proceedings to enforce this arbitration
provision or an award rendered hereunder, or to obtain interim relief, neither a
party nor an arbitrator may disclose the existence, content or results of any
arbitration hereunder without the prior written consent of the Company and the
Executive. Notwithstanding any choice of law provision included in this
Agreement, the United States Federal Arbitration Act shall govern the
interpretation and enforcement of this arbitration provision.

            13. INDEMNIFICATION. With respect to any claim, loss, damage or
expense (including attorneys' fees) arising from the performance by the
Executive of his duties as an officer or director of the Company, the Executive
shall be entitled to indemnification by the Company to the fullest extent
permitted by law and to reimbursement under any directors' and officers'
liability insurance of the Company that may be in effect from time to time.

            14. NOTICES. All notices and other communications required or
permitted hereunder shall be in writing and shall be deemed given when (a)
delivered personally or by overnight courier to the following address of the
other party hereto (or such other address for such party as shall be specified
by notice given pursuant to this Section) or (b) sent by facsimile to the
following facsimile number of the other party hereto (or such other facsimile
number for such party as shall be specified by notice given pursuant to this
Section), with the confirmatory copy delivered by overnight courier to the
address of such party pursuant to this Section 14:

            If to the Company, to:

                  Endurance Specialty Holdings Ltd.
                  48 Par-La-Ville Road
                  Suite 784
                  Hamilton HM 11, Bermuda
                  Attention:  Chief Financial Officer
                  Facsimile:  (441) 278-0401

            If to the Executive, to the residence address or residence facsimile
number of the Executive set forth in the records of the Company.

            15. SEVERABILITY. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect
the validity, legality or enforceability of any other provision of this
Agreement or the validity, legality or enforceability of such provision in any
other jurisdiction, but this Agreement shall be reformed, construed and enforced
in such jurisdiction as if such invalid, illegal or unenforceable provision had
never been contained herein.


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<PAGE>
            16. ENTIRE AGREEMENT. This Agreement, including Exhibit A and the
Non-Qualified Stock Option Agreement dated as of December 17, 2002, between the
Company and the Executive, constitutes the entire agreement and understanding
between the parties with respect to the subject matter hereof and supersedes and
preempts any prior understandings, agreements (including any employment
agreements) or representations by or between the parties, written or oral, which
may have related in any manner to the subject matter hereof. Any employment
agreement entered into between the Company and the Executive prior to the date
of this Agreement shall be of no further force or effect.

            17. SUCCESSORS AND ASSIGNS. This Agreement shall be enforceable by
the Executive and the Executive's heirs, executors, administrators and legal
representatives, and by the Company and its successors and assigns. In the event
that following the termination of the Executive's employment the Executive shall
die at a time when the Executive is entitled to the continuation of any payments
or benefits hereunder, such payments or benefits shall continue to be provided
to the Executive's heirs, executors, administrators or legal representatives.

            18. GOVERNING LAW. This Agreement shall be governed by and construed
and enforced in accordance with the internal laws of Bermuda, without regard to
principles of conflict of laws.

            19. AMENDMENT AND WAIVER. The provisions of this Agreement may be
amended or waived only by the written agreement of the Company and the
Executive, and no course of conduct or failure or delay in enforcing the
provisions of this Agreement shall affect the validity, binding effect or
enforceability of this Agreement.

            20. COUNTERPARTS. This Agreement may be executed in two
counterparts, each of which shall be deemed to be an original and both of which
together shall constitute one and the same instrument.

            21. SEPARATE EMPLOYMENT AGREEMENT. The parties hereto agree and
acknowledge that (a) this Agreement constitutes a Separate Employment Agreement
(as defined in the Original Agreement) and satisfies the requirements of Section
1(b) of the Original Agreement and (b) the employment agreement entered into by
the parties on December 26, 2002 is null and void.


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<PAGE>
            IN WITNESS WHEREOF, the parties hereto have executed this Agreement
as of the date first written above.

                                    Endurance Specialty Holdings Ltd.


                                    By:   /s/ Kenneth J. LeStrange
                                       ---------------------------------------

                                    Title:      Chief Executive Officer
                                           -----------------------------------


                                    DAVID CASH

                                           /s/ David Cash
                                     ------------------------------------------


                                       11
<PAGE>
                                                                       EXHIBIT A

                GENERAL RELEASE AND NONSOLICITATION AGREEMENT

            This General Release and Nonsolicitation Agreement (this "Release
and Nonsolicitation Agreement") is entered into as of December 26th, 2001
between Endurance Specialty Holdings Ltd., a Bermuda company (the "Company"),
and David Cash (the "Executive").

            WHEREAS, the employment agreement between the Company and the
Executive (the "Employment Agreement") has expired and the Executive's
employment with the Company is terminating;

            WHEREAS, the Executive has had 21 days to consider the form of
this Release and Nonsolicitation Agreement;

            WHEREAS, the Company advised the Executive in writing to consult
with an attorney before signing this Release and Nonsolicitation Agreement;

            WHEREAS, the Executive acknowledges that the payments and benefits
to be provided to the Executive pursuant to Section 1 of this Release and
Nonsolicitation Agreement are in consideration of, and are sufficient to
support, the general release set forth in Section 2 of this Release and
Nonsolicitation Agreement and the covenants set forth in Section 3 of this
Release and Nonsolicitation Agreement; and

            WHEREAS, the Executive understands that the Company regards the
representations and covenants by the Executive in this Release and
Nonsolicitation Agreement as material and that the Company is relying on such
representations and covenants in providing the Executive with the payments and
benefits set forth in Section 1 of this Release and Nonsolicitation Agreement.

            NOW, THEREFORE, in consideration of the premises and the mutual
agreements contained herein, the Company and the Executive hereby agree as
follows:

            1. Payments and Benefits. (a) Payments. The Company shall pay to the
Executive for each year during the period commencing on the date of the
termination of the Executive's employment and ending on December 26th, 2007, an
amount equal to the Base Salary (as defined in the Employment Agreement), which
amount shall be prorated for any partial year during such period of payment.
Payment pursuant to this Section 1 shall be in accordance with the Company's
executive payroll policy. Notwithstanding any other provision of this Section 1,
the amount payable to the Executive under this Section 1 shall be reduced by the
amount of salary, bonus or other compensation which the Executive earns from a
subsequent employer that relates to the period for which the amount is payable
to the Executive under this Section 1; provided, however, that in no event shall
the amount payable to the Executive under this Section 1 be reduced to an amount
that is less than US $50,000 (such US $50,000 amount


                                      A-1
<PAGE>
being attributable to the consideration paid to the Executive for the general
release and being referred to hereinafter as the "General Release
Consideration"). The Executive shall use reasonable efforts to seek other
employment for this purpose.

            (b) Continued Vesting of Stock Option. The Option (as defined in the
Employment Agreement, dated as of December 26, 2001, between the Company and the
Executive (the "Original Agreement")) granted to the Executive at the
commencement of the Executive's employment by the Company to purchase from the
Company 291,758 Ordinary Shares shall be exercisable only to the extent it is
exercisable on the date of the Executive's termination of employment and
thereafter may be exercised by the Executive until the date which is 90 days
following the date of the Executive's termination of employment, it being
understood that the portion of the Option which is not exercisable on the date
of the Executive's termination of employment shall terminate on such date and
the portion of the Option which is exercisable on the date of the Executive's
termination of employment, if not exercised during such 90-day period, shall
terminate as of the end of such 90-day period.

            (c) Continuation of Benefits. The Employee Benefits (as defined in
the Employment Agreement) to which the Executive was entitled on the date of the
Executive's termination of employment shall continue until December 26th, 2007,
subject to such changes thereto as are generally applicable to the executives of
the Company from time to time.

            2. General Release. (a) General. The Executive, on behalf of the
Executive and anyone claiming through the Executive, hereby agrees not to sue
the Company or any division, subsidiary, affiliate or other related entity of
the Company (whether or not such entity is wholly owned) or any of the past,
present or future directors, officers, administrators, trustees, fiduciaries,
employees, agents, attorneys or shareholders of the Company or any of such other
entities, or the predecessors, successors or assigns of any of them (hereinafter
referred to as the "Released Parties"), and agrees to release and discharge,
fully, finally and forever, the Released Parties from any and all claims, causes
of action, lawsuits, liabilities, debts, accounts, covenants, contracts,
controversies, agreements, promises, sums of money, damages, judgments and
demands of any nature whatsoever, in law or in equity, both known and unknown,
asserted or not asserted, foreseen or unforeseen, which the Executive ever had
or may presently have against any of the Released Parties arising from the
beginning of time up to and including the effective date of this Release and
Nonsolicitation Agreement, including, without limitation, all matters in any way
related to the Executive's employment by the Company or any of its affiliates,
the terms and conditions thereof, any failure to promote the Executive and the
termination or cessation of the Executive's employment with the Company or any
of its affiliates, and including, without limitation, any and all claims arising
under (i) The Employment Act 2000, the Human Rights Act 1981 or the Commission
for Unity and Racial Equality Act 1996, each enacted in Bermuda and as may be
amended from time to time or (ii) the Civil Rights Act of 1964, the Civil Rights
Act of 1991, the Civil Rights Act of 1866, the Age Discrimination in Employment
Act, the Older Workers' Benefit Protection Act, the Family and Medical Leave
Act, the Americans With Disabilities Act or the Employee Retirement Income
Security Act of 1974, each enacted in the United States and as may be amended
from time to time, or any other Bermuda, United States or foreign statute,
regulation, ordinance or order, or pursuant to any common law doctrine;
provided, however, that nothing contained in this Release and Nonsolicitation
Agreement shall apply to, or release the Company from, any obligation of the
Company contained in the


                                      A-2
<PAGE>
Employment Agreement or this Release and Nonsolicitation Agreement. The General
Release Consideration is accepted by the Executive as being in full accord,
satisfaction, compromise and settlement of any and all claims or potential
claims, and the Executive expressly agrees that, except for the payments and
benefits provided to the Executive under Section 1 of this Release and
Nonsolicitation Agreement and as provided in Section 2(b) of this Release and
Nonsolicitation Agreement, (i) Executive is not entitled to, and shall not
receive, any further recovery of any kind from the Company or any of the other
Released Parties and (ii) in the event of any further proceedings whatsoever
based upon any matter released herein, neither the Company nor any of the other
Released Parties shall have any further monetary or other obligation of any kind
to the Executive, including any obligation for any costs, expenses or attorneys'
fees incurred by or on behalf of the Executive. The Executive agrees that the
Executive has no present or future right to employment with the Company or any
of the other Released Parties.

            (b) Unenforceability. In the event that the general release set
forth in Section 2(a) of this Release and Nonsolicitation Agreement is found by
an arbitrator or other appropriate decisionmaker to be unenforceable and the
Executive subsequently obtains a monetary award payable by the Company or any of
the other Released Parties, the arbitrator or other decisionmaker shall have the
authority to reduce such monetary award by the lesser of (i) the General Release
Consideration and (ii) the amount of the monetary award.

            (c) Representations. The Executive expressly represents and warrants
that the Executive is the sole owner of the actual and alleged claims, demands,
rights, causes of action and other matters that are released herein; that the
same have not been transferred or assigned or caused to be transferred or
assigned to any other person, firm, corporation or other legal entity; and that
the Executive has the full right and power to grant, execute and deliver the
general release, undertakings and agreements contained herein.

            3. Nonsolicitation. (a) General. The Executive acknowledges that in
the course of the Executive's employment with the Company the Executive has
become familiar with trade secrets and other confidential information concerning
the Company and its subsidiaries and that the Executive's services were of
special, unique and extraordinary value to the Company and its subsidiaries. The
Executive agrees that during the period commencing on the date of the
Executive's termination of employment and ending on December 26th, 2007, the
Executive shall not (i) in any manner, directly or indirectly, induce or attempt
to induce any employee of the Company or any of its subsidiaries to terminate or
abandon his or her employment for any purpose whatsoever or (ii) in connection
with any Business (as defined in the Employment Agreement) call on, service,
solicit or otherwise do business with any customer of the Company or any of its
subsidiaries.

            (b) Reformation. If, at any time of enforcement of this Section 3, a
court or an arbitrator holds that the restrictions stated herein are
unreasonable and/or unenforceable under circumstances then existing, the parties
hereto agree that the maximum period, scope or geographical area reasonable
and/or enforceable under such circumstances shall be substituted for the stated
period, scope or area and that the court or arbitrator shall be allowed to
revise the restrictions contained herein to cover the maximum period, scope and
area permitted by law.


                                      A-3
<PAGE>
This Release and Nonsolicitation Agreement shall not authorize a court or
arbitrator to increase or broaden any of the restrictions in this Section 3.

            4. Tax Withholding. The Company shall deduct from the amount payable
to the Executive pursuant to this Release and Nonsolicitation Agreement the
amount of taxes that the Company is required to withhold pursuant to applicable
laws, rules and regulations.

            5. Breach of Agreement. In the event that any provision of Section 3
of this Release and Nonsolicitation Agreement is not performed by the Executive
in accordance with its terms or is otherwise breached by the Executive, the
Company immediately shall cease providing the Executive with the payments and
benefits set forth in Sections 1(a) and (c) of this Release and Nonsolicitation
Agreement, other than the General Release Consideration, and the Executive's
right to any such payments and benefits immediately shall be forfeited.

            6. Enforcement. The Executive acknowledges that the Company and its
subsidiaries would be damaged irreparably in the event that any provision of
Section 3 of this Release and Nonsolicitation Agreement was not performed in
accordance with its terms or was otherwise breached and that money damages would
be an inadequate remedy for any such nonperformance or breach. Accordingly, the
Executive agrees that the Company and its successors and permitted assigns shall
be entitled, in addition to other rights and remedies existing in their favor,
to an injunction or injunctions to prevent any breach or threatened breach of
such provision and to enforce such provision specifically (without posting a
bond or other security). The Executive agrees that the Executive will submit to
the personal jurisdiction of the courts of Bermuda in any action by the Company
to enforce an arbitration award against the Executive or to obtain interim
injunctive or other relief pending an arbitration decision.

            7. ACKNOWLEDGMENT BY EXECUTIVE. BY EXECUTING THIS RELEASE AND
NONSOLICITATION AGREEMENT, THE EXECUTIVE EXPRESSLY ACKNOWLEDGES THAT THE
EXECUTIVE HAS READ THIS RELEASE AND NONSOLICITATION AGREEMENT CAREFULLY, THAT
THE EXECUTIVE FULLY UNDERSTANDS ITS TERMS AND CONDITIONS, THAT THE EXECUTIVE HAS
BEEN ADVISED TO CONSULT WITH AN ATTORNEY PRIOR TO EXECUTING THIS RELEASE AND
NONSOLICITATION AGREEMENT, THAT THE EXECUTIVE HAS BEEN ADVISED THAT THE
EXECUTIVE HAS 21 DAYS WITHIN WHICH TO DECIDE WHETHER OR NOT TO EXECUTE THIS
RELEASE AND NONSOLICITATION AGREEMENT AND THAT THE EXECUTIVE INTENDS TO BE
LEGALLY BOUND BY IT. DURING A PERIOD OF SEVEN DAYS FOLLOWING THE DATE OF THE
EXECUTIVE'S EXECUTION OF THIS RELEASE AND NONSOLICITATION AGREEMENT, THE
EXECUTIVE SHALL HAVE THE RIGHT TO REVOKE THE RELEASE OF CLAIMS SET FORTH IN
SECTION 2 OF THIS RELEASE AND NONSOLICATION AGREEMENT BY SERVING WITHIN SUCH
PERIOD WRITTEN NOTICE OF REVOCATION.

8. Arbitration. Except as otherwise set forth in Section 6 hereof, any dispute
or controversy between the Company and the Executive, whether arising out of or
relating to this Release and Nonsolicitation Agreement, the breach of this
Release and Nonsolicitation Agreement, or otherwise, shall be settled by
arbitration in Bermuda administered by the American Arbitration Association,
with any such dispute or controversy arising under this


                                      A-4
<PAGE>
Release and Nonsolicitation Agreement being so administered in accordance with
its Commercial Rules then in effect, and judgment on the award rendered by the
arbitrator may be entered in any court having jurisdiction thereof. The
arbitrator shall have the authority to award any remedy or relief that a court
of competent jurisdiction could order or grant, including, without limitation,
the issuance of an injunction. However, either party may, without inconsistency
with this arbitration provision, apply to any court having jurisdiction over
such dispute or controversy and seek interim provisional, injunctive or other
equitable relief until the arbitration award is rendered or the controversy is
otherwise resolved. Except as necessary in court proceedings to enforce this
arbitration provision or an award rendered hereunder, or to obtain interim
relief, neither a party nor an arbitrator may disclose the existence, content or
results of any arbitration hereunder without the prior written consent of the
Company and the Executive. Notwithstanding any choice of law provision included
in this Release and Nonsolicitation Agreement, the United States Federal
Arbitration Act shall govern the interpretation and enforcement of this
arbitration provision.

            9. Entire Agreement. The Employment Agreement, this Release and
Nonsolicitation Agreement and the Non-Qualified Stock Option Agreement, dated as
of December 17, 2002, between the Company and the Executive (the "Option
Agreement") constitute the entire understanding between the parties. The
Executive has not relied on any oral statements that are not included in the
Employment Agreement, this Release and Nonsolicitation Agreement or the Option
Agreement.

            10. Severability. If any provision of this Release and
Nonsolicitation Agreement shall be held invalid or unenforceable, such
invalidity or unenforceability shall not affect any other provision hereof, and
this Release and Nonsolicitation Agreement shall be construed and enforced as if
such provision had not been included herein.

            11. Successors and Assigns. This Release and Nonsolicitation
Agreement shall be enforceable by the Executive and the Executive's heirs,
executors, administrators and legal representatives, and by the Company and its
successors and assigns. In the event that the Executive shall die at a time when
the Executive is entitled to the continuation of any payments or benefits
hereunder, such payments or benefits shall continue to be provided to the
Executive's heirs, executors, administrators or legal representatives.

            12. Governing Law. This Release and Nonsolicitation Agreement shall
be construed, interpreted and applied in accordance with the internal laws of
Bermuda without regard to the principles of conflicts of laws.

            13. Counterparts. This Release and Nonsolicitation Agreement may be
executed in two counterparts, each of which shall be deemed to be an original
and both of which together shall constitute one and the same instrument.



                                      A-5
<PAGE>
            IN WITNESS WHEREOF, the parties hereto have executed this Release
and Nonsolicitation Agreement as of the date first written above.

                                    Endurance Specialty Holdings Ltd.


                                    By:__________________________________

                                    Title: ______________________________


                                    DAVID CASH

                                    _____________________________________



                                      A-6
<PAGE>
                                                                       EXHIBIT B

                                 GENERAL RELEASE

            This General Release is executed by David Cash (the "Executive").

            WHEREAS, the Executive's employment with Endurance Specialty
Holdings Ltd., a Bermuda company (the "Company") is terminating;

            WHEREAS, the Executive has had 21 days to consider the form of
this General Release;

            WHEREAS, the Company advised the Executive in writing to consult
with an attorney before signing this General Release;

            WHEREAS, the Executive acknowledges that the amount to be paid to
the Executive pursuant to Section 4(c)(vi)(B) of the employment agreement
between the Company and the Executive (the "Employment Agreement"), and the
benefits to be provided to the Executive pursuant to Section 4(c)(vi)(C) of the
Employment Agreement, are in consideration of, and are sufficient to support,
the general release set forth in Section 2 of this General Release; and

            WHEREAS, the Executive understands that the Company regards the
representations and covenants by the Executive in this General Release as
material and that the Company is relying on such representations and covenants
in paying the Executive the amount set forth in Section 4(c)(vi)(B) of the
Employment Agreement and in providing the Executive the benefits set forth in
Section 4(c)(vi)(C) of the Employment Agreement.

            THE EXECUTIVE THEREFORE AGREES AS FOLLOWS:

            1. Payments. The Executive's employment with the Company shall
terminate on December 26th, 2007, and the Executive shall receive a certain
amount pursuant to Section 4(c)(vi)(B) of the Employment Agreement and certain
benefits pursuant to Section 4(c)(vi)(C) of the Employment Agreement in
accordance with the terms and subject to the conditions thereof.

            2. General Release. (a) General. The Executive, on behalf of the
Executive and anyone claiming through the Executive, hereby agrees not to sue
the Company or any division, subsidiary, affiliate or other related entity of
the Company (whether or not such entity is wholly owned) or any of the past,
present or future directors, officers, administrators, trustees, fiduciaries,
employees, agents, attorneys or shareholders of the Company or any of such other
entities, or the predecessors, successors or assigns of any of them (hereinafter
referred to as the "Released Parties"), and agrees to release and discharge,
fully, finally and forever, the Released Parties from any and all claims, causes
of action, lawsuits, liabilities, debts, accounts, covenants, contracts,
controversies, agreements, promises, sums of money, damages, judgments and
demands of any nature whatsoever, in law or in equity, both known and unknown,
asserted or not asserted, foreseen or unforeseen, which the Executive ever had
or may presently have against


                                      A-7
<PAGE>
any of the Released Parties arising from the beginning of time up to and
including the effective date of this General Release, including, without
limitation, all matters in any way related to the Executive's employment by the
Company or any of its affiliates, the terms and conditions thereof, any failure
to promote the Executive and the termination or cessation of the Executive's
employment with the Company or any of its affiliates, and including, without
limitation, any and all claims arising under (i) The Employment Act 2000, the
Human Rights Act 1981 or the Commission for Unity and Racial Equality Act 1996,
each enacted in Bermuda and as may be amended from time to time or (ii) the
Civil Rights Act of 1964, the Civil Rights Act of 1991, the Civil Rights Act of
1866, the Age Discrimination in Employment Act, the Older Workers' Benefit
Protection Act, the Family and Medical Leave Act, the Americans With
Disabilities Act or the Employee Retirement Income Security Act of 1974, each
enacted in the United States and as may be amended from time to time, or any
other Bermuda, United States or foreign statute, regulation, ordinance or order,
or pursuant to any common law doctrine; provided, however, that nothing
contained in this General Release shall apply to, or release the Company from,
any obligation of the Company contained in the Employment Agreement or this
General Release. The General Release Consideration (as defined in Section
4(c)(vi) of the Employment Agreement) is accepted by the Executive as being in
full accord, satisfaction, compromise and settlement of any and all claims or
potential claims, and the Executive expressly agrees that, except for the amount
payable to the Executive under Section 4(c)(vi)(B) of the Employment Agreement,
the benefits to be provided to the Executive under Section 4(c)(vi)(C) of the
Employment Agreement and as provided in Section 2(b) of this General Release,
(i) the Executive is not entitled to, and shall not receive, any further
recovery of any kind from the Company or any of the other Released Parties and
(ii) in the event of any further proceedings whatsoever based upon any matter
released herein, neither the Company nor any of the other Released Parties shall
have any further monetary or other obligation of any kind to the Executive,
including any obligation for any costs, expenses or attorneys' fees incurred by
or on behalf of the Executive. The Executive agrees that the Executive has no
present or future right to employment with the Company or any of the other
Released Parties.

            (b) Unenforceability. In the event that the general release set
forth in Section 2(a) of this General Release is found by an arbitrator or other
appropriate decisionmaker to be unenforceable and the Executive subsequently
obtains a monetary award payable by the Company or any of the other Released
Parties, the arbitrator or other decisionmaker shall have the authority to
reduce such monetary award by the lesser of (i) the General Release
Consideration and (ii) the amount of the monetary award.

            (c) Representations. The Executive expressly represents and warrants
that the Executive is the sole owner of the actual and alleged claims, demands,
rights, causes of action and other matters that are released herein; that the
same have not been transferred or assigned or caused to be transferred or
assigned to any other person, firm, corporation or other legal entity; and that
the Executive has the full right and power to grant, execute and deliver the
general release, undertakings and agreements contained herein.

            3. ACKNOWLEDGMENT BY EXECUTIVE. BY EXECUTING THIS GENERAL RELEASE,
THE EXECUTIVE EXPRESSLY ACKNOWLEDGES THAT THE EXECUTIVE HAS READ THIS GENERAL
RELEASE CAREFULLY, THAT THE EXECUTIVE FULLY UNDERSTANDS ITS TERMS AND
CONDITIONS, THAT THE


                                      A-8
<PAGE>
EXECUTIVE HAS BEEN ADVISED TO CONSULT WITH AN ATTORNEY PRIOR TO EXECUTING THIS
GENERAL RELEASE, THAT THE EXECUTIVE HAS BEEN ADVISED THAT THE EXECUTIVE HAS 21
DAYS WITHIN WHICH TO DECIDE WHETHER OR NOT TO EXECUTE THIS GENERAL RELEASE AND
THAT THE EXECUTIVE INTENDS TO BE LEGALLY BOUND BY IT. DURING A PERIOD OF SEVEN
DAYS FOLLOWING THE DATE OF THE EXECUTIVE'S EXECUTION OF THIS GENERAL RELEASE,
THE EXECUTIVE SHALL HAVE THE RIGHT TO REVOKE THIS GENERAL RELEASE BY SERVING
WITHIN SUCH PERIOD WRITTEN NOTICE OF REVOCATION.

            4. Entire Agreement. The Employment Agreement and this General
Release constitute the entire understanding between the parties. The Executive
has not relied on any oral statements that are not included in the Employment
Agreement or this General Release.

            5. Severability. If any provision of this General Release shall be
held invalid or unenforceable, such invalidity or unenforceability shall not
affect any other provision hereof, and this General Release shall be construed
and enforced as if such provision had not been included herein.

            6. Governing Law. This General Release shall be construed,
interpreted and applied in accordance with the internal laws of Bermuda without
regard to the principles of conflicts of laws.


Date: _____________________________      _____________________________________
                                                       DAVID CASH