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| 1) | Definitions      and Interpretation |
|----|-------------------------------------|
|   | Headings      in this document do not affect interpretation and are for convenience      only. In addition to the words and expressions hereinbefore defined the      following words and expressions shall have the meanings hereinafter      ascribed to them:Headings in this document do not affect interpretation      and are for convenience only. In addition to the words and expressions      hereinbefore defined the following words and expressions shall have the      meanings hereinafter ascribed tothem: |
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|   | a) | “Affiliate” means a      company which is a subsidiary of another company or 2 or more companies      which are both subsidiaries of the same company or each of them is      controlled by the same person.  For the purposes of this      definition, "control", when used with respect to any company, means the      power to direct the management and policies of such company, directly or      indirectly, whether through the ownership of voting securities, by      contract or otherwise; and the terms "controlling" and "controlled" have      meanings correlative to theforegoing; |
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|   | b) | “Bonus Payment Date” has      the meaning set out in paragraph 6 of Schedule  1; |
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|   | c) | “Business Day” means any      day normally treated as a business day in  Bermuda; |
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|   | d) | “Cause”      means: |
|--------|----|---------------------------------|

|   |   | (i) | a      material breach by the Employee of any contract between the Employee and      the Company; |
|--------|--------|-----|---------------------------------------------------------------------------------------------------|

|   |   | (ii) | the      wilful and continued failure or refusal by the Employee to perform any      duties reasonably required by the Company, after notification by the      Company of such failure or refusal, and failing to correct such behaviour      within 20 days of suchnotification; |
|--------|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | (iii) | commission      by the Employee of a criminal offence or other offence of moral      turpitude, |
|--------|--------|-------|-------------------------------------------------------------------------------------------------|

|   |   | (iv) | perpetration      by the Employee of a dishonest act or common law fraud against the Company      or a client thereof; |
|--------|--------|------|------------------------------------------------------------------------------------------------------------------------|

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|   |   | (v) | the      Employee wilfully engaging in misconduct which is materially injurious to      the Company, including without limitation, the disclosure of any trade      secrets, financial models, or computer software to persons outside the      Company without the consent of theCompany. |
|--------|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e) | “Commencement Date” has      the meaning set out in paragraph 3 of Schedule  1; |
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|   | f) | “Employment” means the      employment of the Employee pursuant to this  Agreement; |
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|   | g) | “Intellectual Property      Rights” means rights in inventions, patents, trademarks, service      marks, design rights (whether registrable or otherwise), trade and      business names, copyrights (including rights in computer software),      database rights and semiconductor topography rights (whether or not any of      these is registered and including applications for registrations) and all      rights or terms of protection of a similar nature or having equivalent or      similar effect to any of these which may subsist anywhere in the      world; |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | h) | “Staff Policy Manual”      means such document or documents produced by the Company which set      out the policies and procedures of the Company and which may be amended      from time to time; |
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|   | i) | “Termination Date” means      the date on which the Employee’s employment with the Company ceases either      for reason of the conclusion of the fixed term of the Employment or for      reason of the termination of the Employment in accordance with the      provisions of this Agreement. |
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| 2) | Appointment |
|----|-------------|

|   | a) | The      Company hereby appoints the Employee and the Employee hereby accepts the      position set out in paragraph 1 of Schedule 1 and shall have such      responsibilities as the Company may from time to time    direct. |
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|   | b) | The      foregoing appointment shall be subjectto:- |
|--------|----|-----------------------------------------------------|

|   |   | i) | satisfactory      reference/background checks conducted by or on behalf of the Company;      and |
|--------|--------|----|--------------------------------------------------------------------------------------------------|

|   |   | ii) | where      applicable, this appointment shall be subject to the grant and maintenance      of appropriate work permits |
|--------|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | c)  | The      Employee may be expected from time to time to perform duties for and on      behalf of other entities within the Flagstone group of Companies including      but not limited to affiliates, subsidiaries, branches and any other entity      that is controlled by, directly or indirectly, Flagstone Reinsurance      Holdings Limited, for which the Employee may or may not receive additional      remuneration. |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 3) | Duration      of Appointment |
|----|------------------------------|
|   | The Employment shall be deemed to have      commenced on the Commencement Date and shall continue unless terminated in      accordance with the provisions of this  Agreement.  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4) | Place      of Employment |
|----|--------------------------|
|   | The Employee’s place of employment is set out      in paragraph 2 of Schedule1.  |
|--------|---------------------------------------------------------------------------------------------|

| 5) | Compensation |
|----|--------------|

|   | a) | Salary,      Benefits and Deductions from Salary |
|--------|----|--------------------------------------------------|

|   |   | i) | The      salary payable to the Employee shall be the sum as set out in paragraph 4      of Schedule 1, and shall be payable by equal monthly instalments in      arrears on the last Business Day of eachmonth. |
|--------|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | ii) | The      Company shall review the salary annually in January and the rate of salary      may, at the Company’s sole discretion, be increased effective from the      date of review. |
|--------|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | iii) | The      Company shall be required by law to deduct from the Employee’s salary the      amounts set out in paragraph 5 of Schedule1. |
|--------|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Bonus |
|--------|----|-------|

|   |   | i) | The      Company may, but shall not be obliged to, pay an annual bonus in      accordance with this paragraph 6 of Schedule1. |
|--------|--------|----|-------------------------------------------------------------------------------------------------------------------------------|

|   |   | ii) | Bonuses      payable on the first Bonus Payment Date will be assessed on salary earned      by the Employee since the January 1st      2008 and December 31, 2008 and thereafter on the calendar      year. |
|--------|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | iii) | The      Company shall not be liable to pay any bonus to the Employee if the      Termination Date occurs between Bonus Payment Dates even if the      termination was not for cause atlaw. |
|--------|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6) | Vacation |
|----|----------|
|   | The      Employee shall be entitled to paid vacation in accordance with paragraph 7      of Schedule 1, such vacation to be taken in accordance with the Staff      Policy Manual. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 7) | Amendments      and Waivers |
|----|-----------------------------|

|   | (a) | No      amendments to the provisions of this Agreement shall be effective unless      in writing and signed by the parties hereto or their duly authorized      representatives. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | All      rights, remedies and powers conferred upon the parties hereto are      cumulative and shall not be deemed or construed to be exclusive of any      other rights, remedies or powers now or hereafter conferred upon the      parties hereto or either of them by law or  otherwise. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Any      failure at any time to insist upon or enforce any such right, remedy or      power shall not be construed as a waiver  thereof. |
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| 8) | Warranty |
|----|----------|
|   | The      Employee represents and warrants that he is not a party to any agreement,      contract (whether of employment or otherwise) or understanding, which      would in any way restrict or prohibit himfrom: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | Undertaking      or performing any of the duties of the Employment in accordance with the      terms and conditions of this Agreement;or |
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|   | b) | Utilizing      any materials which the Employee proposes to use in the course of his      employment with the Company whether in hard copy or stored in an      electronic storage device. |
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| 9) | Covenants |
|----|-----------|

|   | a) | The      Employee expressly covenants that all Intellectual Property Rights      relating in anyway to the business activities (or incidental to the use of      company time and or property) of the Company or its Affiliates which may      be discovered, invented, improved or developed by the Employee during his      Employment with the Company, whether during regular      office hours or otherwise and whosesoever discovered, invented, improved      or developed will be the exclusive and sole property of the Company and      its Affiliates. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | The      Employee undertakes to disclose promptly to the Company and hereby assigns      to the Company without further compensation, all rights, title and      interest in the said discoveries, inventions, improvements and      developments whether conceived and developed solely by the Employee or      jointly with others and will on the request of the Company execute all      documents and do all such things as may be requested by the Company or its      Affiliates to confirm or perfect the rights title and interest in such      property provided that the Company will bear all costs and expenses      associated therewith. |
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| 10) | Notice |
|-----|--------|

|   | a) | Any      notice required or authorized hereunder shall be in writing and may be      served:- |
|--------|----|-----------------------------------------------------------------------------------------------|

|   |   | i)  | by      personal delivery; or  |
|--------|--------|----------|-------------------------------------|
|   |   | ii) | by      first class post if to an address in the same country as the sender;      or |
|--------|--------|-----|--------------------------------------------------------------------------------------|

|   |   | iii) | by      air mail post if to an address outside the sender's country;      or |
|--------|--------|------|------------------------------------------------------------------------------|

|   |   | iv) | by      facsimile; or |
|--------|--------|-----|-----------------------|

|   |   | v) | by      email with a receipt evidencing that the recipient has read the      email. |
|--------|--------|----|-------------------------------------------------------------------------------------|

|   | b) | In      proving service of any notice hereunder it shall be sufficient to      prove:- |
|--------|----|----------------------------------------------------------------------------------------|

|   |   | i) | in      the case of a notice delivered personally, that it was left at the address      for notices herein or any substitutedaddress; |
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|   |   | ii) | in      the case of a notice sent by post, that the envelope containing the notice      was properly addressed to the address for notices herein or any      substituted address, stamped and posted, in which case it will be deemed      effective three days after the date on which it was posted;      and |
|--------|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | iii) | in      the case of a notice sent by facsimile, that it was properly transmitted      to the last known facsimile number;and |
|--------|--------|------|------------------------------------------------------------------------------------------------------------------------------|

|   |   | iv) | in      the case of a notice sent by email that the computer of the person sending      the email message has generated a receipt evidencing that the recipient      has read the email message. |
|--------|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | The      address for service of notices on the Company is at its principal place of      business. |
|--------|----|----------------------------------------------------------------------------------------------------|

|   | d) | The      address for service of notices on the Employee is at his residence on the      records of the Company. |
|--------|----|-----------------------------------------------------------------------------------------------------------------|

| 11) | Confidentiality |
|-----|-----------------|

|   | a) | The      Employee shall not at any time during his employment (except as is      necessary and proper in the course of his employment) or at any time after      the Termination Date disclose to any person any information as to the      practice, business dealings or affairs of the Employer, its affiliates or      any of the Employer’s customers or clients or as to any other matters      which may come to his knowledge by reason of his employment with the      Company. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | b) | The      Employee shall at the time of executing this Agreement execute the      undertaking of Secrecy attached in Schedule2. |
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| 12) | Notice      of Termination |
|-----|----------------------------|
|   | Subject to Clause 13, this Agreement may be      terminated in accordance with paragraph 8 of Schedule      1.  |
|--------|----------------------------------------------------------------------------------------------------------------------|

| 13) | Summary      Dismissal for Cause |
|-----|----------------------------------|
|   | The      Company reserves the right to summarily dismiss the Employee for      Cause. |
|--------|---------------------------------------------------------------------------------------|

| 14) | Misuse      of Company Property |
|-----|---------------------------------|

|   | a) | The      Employee shall not use any of the Company’s property including, but not      limited to computer equipment and software, for personal use except      moderate use of the Internet and email by the Employee, which does not      interfere with the performance of their duties, and which does not include      the reading or viewing of offensive or illegal  material. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | The      Company reserves the right to read all paper and computer files of the      Employee on premises and any information stored on any electronic device      which is the property of theCompany. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15) | Outside      Employment |
|-----|-------------------------|
|   | The Employee shall not be permitted to hold      any outside directorships or employment without the written consent of the      Company.  |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| 16) | Staff      Policy Manual |
|-----|--------------------------|
|   | The Employee agrees to abide by the terms of      the Company Staff Policy Manual as amended from time to time. The Company      Staff Policy Manual shall be available to the      Employee.  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17) | Miscellaneous |
|-----|---------------|
|   | This      Agreement shall be subject to the additional terms set out in paragraph 9      of Schedule 1. |
|--------|---------------------------------------------------------------------------------------------------------|

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| 18) | Whole      Agreement |
|-----|----------------------|
|   | This      Agreement constitutes the whole agreement between the      parties.  All other agreements (if any) for service between the      Company and the Employee or any other member of the Group are hereby      abrogated and superseded. |
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| 19) | Law      and Jurisdiction |
|-----|---------------------------|

|   | i) | The      terms of this Agreement shall be governed by and construed in accordance      with the laws of the Islands ofBermuda. |
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|   | ii) | All      disputes, controversies or claims arising out of, relating to, or in      connection with, this contract, or breach, termination or validity      thereof, shall be finally settled by arbitration.  The      arbitration shall be conducted in accordance with the Bermuda      International Conciliation and Arbitration Act 1993, except as same may be      modified herein or by mutual agreement of the parties.  The seat      of the arbitration shall be Bermuda, and it shall be conducted in the      English language.  The arbitration shall be conducted by one      arbitrator who shall be selected by BIBA (Bermuda International Business      Association) in the event that the parties fail to agree.  The      arbitral award shall be in writing, shall state reasons for the award, and      be final and binding on the parties.  The award may include an      award of costs, including reasonable attorneys’ fees and      disbursements.  Judgment on the award may be entered by any      court having jurisdiction thereof or having jurisdiction over the parties      or their assets. |
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|                              |   |      |
|--------------------------------------------------|--------|--------------------------|
| Lesley      CoxChief      Administrative Officer |   | William      Fawcett     |

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| 1.     | Position                           | General      Counsel                                                                                                                                                                                                                                                                                                                                    |
|--------|------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                               |                                                                                                                                                                                                                                                                                                                                                    |
| 2.     | Place      of employment:          | The      Employee’s place of employment shall be at the Company’s office in      Bermuda; however the Company may require the Employee, in the performance      of his duties, to travel from Bermuda to such other places and for such      times as is reasonably necessary for the proper discharge of the      Employee’s duties. |
|   |                               |                                                                                                                                                                                                                                                                                                                                                    |
| 3.     | Commencement      Date:            | 1st      October, 2008Subject      to Immigration Approval(Internal Transfer from      FSR – current work permit pending approval with    Immigration)                                                                                                                                                                                            |
|   |                               |                                                                                                                                                                                                                                                                                                                                                    |
| 4.     | Salary:                            | USD $325,000 per      annum.                                                                                                                                                                                                                                                                                                                            |
|   |                               |                                                                                                                                                                                                                                                                                                                                                    |
| 5.     | Deductions      from Salary:       | a)                                                                                                                                                                                                                                                                                                                                                      | Social      Insurance:  This is a government administered      contributory pension scheme and the contributions are split evenly between      the Company and the Employee. |
|   |                               | b)                                                                                                                                                                                                                                                                                                                                                      | Payroll      Tax:  The Company will withhold the maximum permissible      under Bermuda law from the Employee’s salary, and the balance will be paid      by the Company. |
|   |                               | c)                                                                                                                                                                                                                                                                                                                                                      | Medical Insurance: The      Company is required to provide you with Medical Insurance under a      Bermuda-approved scheme. Half of the cost of this insurance will be      withheld from the Employee’s salary. |
| 6.     | Bonus      and Bonus Payment Date: | a)                                                                                                                                                                                                                                                                                                                                                      | The      Employee may be paid a bonus of up to 50% of salary in      accordance to Paragraph 5 section 1 - 3. |

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|   |                        | b)                                                                                                                                                                                                                                      | The      Bonus Payment date shall be in Q1 of each year commencing Q1,  2009                                                                                                                                                                           |
|--------|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                        | c)                                                                                                                                                                                                                                      | Each      bonus will be calculated with respect to salary earned in the previous      calendar year.                                                                                                                                                   |
|   |                        | d)                                                                                                                                                                                                                                      | The      first bonus, payable Q1 2009 will not be less than 40% of salary      earned.                                                                                                                                                                 |
|   |                        |                                                                                                                                                                                                                                    |
| 7.     | Vacation:                   | The      Employee will be entitled to 25 days vacation perannum.                                                                                                                                                                        |
|   |                        |                                                                                                                                                                                                                                    |
| 8.     | Notice      of Termination: | This      Agreement may be terminated by either party giving 90 days notice in      writing to the other; however, the Company may, in its sole discretion,      pay salary in lieu of notice of termination given by the      Company. |
|   |                        |                                                                                                                                                                                                                                    |
| 9.     | Miscellaneous               | Housing      Allowance and Relocation                                                                                                                                                                                                   |
|   |                        | a)                                                                                                                                                                                                                                      | From      the commencement of a lease in Bermuda in the Employee’s name, the      Employee will be entitled to receive a Housing Allowance of US$100,000 per      annum payable monthly in arrears and will be subject to Clause      5(a)(iii). |
|   |                        | b)                                                                                                                                                                                                                                      | The      Employee will receive a one-time relocation payment of      $20,000.                                                                                                                                                                          |
|   |                        | c)                                                                                                                                                                                                                                      | The      Employee will receive use of an apartment for 60 days on arrival in      Bermuda.                                                                                                                                                             |

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| 1. | That      during the course of my employment with Flagstone Réassurance Suisse SA      (Bermuda), I will keep secret the affairs and concerns of Flagstone Reinsurance Holdings      Limited and its affiliates (the “Company”), and the nature and      particulars of the Company including, but not limited to its investors,      clients, transactions, trading models and trading strategies, or the      financial results or performance figures of the Company or any client or      strategy that may come to my attention during the course of my employment      with the Company (“ConfidentialInformation”). |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | That      after my departure from the Company, I will not disclose to any person the      affairs of the Company, including, but not limited to its investors,      clients, transactions, trading models and trading strategies or the      financial results or performance figures of the Company or any client or      strategy that may come to my attention during the course of my employment      with the Company. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | That      upon my departure from the Company, I will not take with me any      Confidential Information belonging to or concerning the Company, or its      clients, whether in printed form or on any electronic storage      device. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | In      the event that I do have in my possession any Confidential Information      following my departure from the Company, I undertake to deliver such      information to the Company within 3 days of my departure.  If      personal delivery of such information is either not possible or      inconvenient, I undertake to contact the President of the Company and      arrange a suitable method of disposal of such confidential information      within three days of my departure. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Signature  |                  |   |
|-----------------|----------------------------|--------|
|            |                       |   |
| Name       |  William      Fawcett |   |
|            |                       |   |
| Witness    |                  |   |
|            |                       |   |
| Date       |                  |   |
|            |                       |   |