|   | 1) | Relocation: |
|--------|----|-------------|

|   | a. | The      Company will pay all expenses for your family’s relocation from Bermuda to      Switzerland, at the beginning of your secondment or later as you      prefer. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | The      Company will provide free temporary housing or a hotel in Martigny area      for you, until such time is your family is ready to    relocate. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | The      Company will relocate you and your family to Bermuda at the end of your      secondment. |
|--------|----|---------------------------------------------------------------------------------------------------|

|   | d. | The      Company will take such steps as are needed and reasonably within its      power, to ensure that a place will be available for your daughter in      Bermuda at a school satisfactory to you, at the end of the      secondment. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2) | Transition:  During      the first four months of employment the Employee is expected to spend      approximately half time in the offices of the Company, will travel to and      from Bermuda, according to the travel policies of the Company, as a      Business expense. The purpose of this transition period is to facilitate      the handover of previous responsibilities in  Bermuda. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3) | Benefits: |
|--------|----|-----------|

|   | a. | As      described in the contract, the Company will provide a housing allowance of      CHF 7,000 per calendar month, during all months in which you have a lease      or own a property in Switzerland, during the term of your secondment. This      benefit will be taxable to you inSwitzerland. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| FLAGSTONE      REINSURANCE HOLDINGS LIMITED23      Church Street, Hamilton HM 11, Bermuda | Tel:      +1-441-278-4300    Fax: +1-441-296-9879info©flagstonere.bm    www.flagstonere.bm |
|-------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

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|   | b. | The      Company will pay 80% of school expenses for your daughter in Switzerland,      up to a maximum expense of CHF 20’000 per year paid by the Company.      Depending on your choice of school this may be taxable or not to you in      Switzerland. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | The      Company will bear the expense of transporting your daughter to and from      school. |
|--------|----|-----------------------------------------------------------------------------------------------|

|   | 4) | Your Bermuda      contract: |
|--------|----|-----------------------------|

|   | a. | Your      salary and Bonus under the Bermuda contract will be suspended during your      term in Switzerland. |
|--------|----|---------------------------------------------------------------------------------------------------------------|

|   | b. | Your      Mortgage Subsidy under the Bermuda contract will continue while you are in      Switzerland for up to two years. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------|

|   | c. | At      the conclusion of your term in Switzerland, the Company will offer you      (subject only to your not having resigned or been terminated for Cause),      the following: |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i. |   | A      position in Bermuda equal to or senior to the position you are leaving for      the secondment. |
|--------|----|--------|--------------------------------------------------------------------------------------------------------|

|   | ii. |   | Full      relocation as described above. |
|--------|-----|--------|------------------------------------------|

|   | iii. |   | Equitable      adjustment to your Bermuda salary for at least Bermuda inflation during      your period of absence. |
|--------|------|--------|---------------------------------------------------------------------------------------------------------------------|

|   | d. | Should      the Company terminate your contract in Switzerland for any reason other      than Cause, the Company obligations under this section will nonetheless      still apply. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5) | 2007 , 2008, and 2009 Bonus      years: |
|--------|----|-----------------------------------------|

|   | a. | We      will pay your 2007 Bonus for Bermuda work, on August 31,    2007. |
|--------|----|---------------------------------------------------------------------------|

|   | b. | We      will pay a partial year bonus in Switzerland in March 2008, according to      the terms of that contract. |
|--------|----|-------------------------------------------------------------------------------------------------------------------|

|   | c. | Your      2008 Bonus will be paid in March 2009 in  Switzerland. |
|--------|----|------------------------------------------------------------------|

|   | d. | Your      2009 Bonus will be paid in Switzerland for the salary earned in      Switzerland, upon your departure from Switzerland in August      2009. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | You      will receive a Bonus for your work in Bermuda in Q4 2009, in March 2010 in      Bermuda. |
|--------|----|---------------------------------------------------------------------------------------------------|

|   | f. | The      above assumes your secondment lasts the exact two years expected, failing      which we will make equitable adjustment to the  above. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Yours      Sincerely  |   | Accepted:         |
|--------|----------------------------|--------|-------------------|
|   |                       |   |              |
|   | /s/ Mark    Byrne          |   | /s/ Guy    Swayne |
|   | Mark      Byrne       |   | Guy  Swayne       |