Document:

EXHIBIT
      10.6

    EXECUTION
      COPY

    

     

    MASTER
      AGREEMENT

     

    

    This
      Agreement (“Agreement”) is made this 3rd day of July, 2007 by and between
      AmTrust Financial Services, Inc., a Delaware Corporation (“AmTrust”), and Maiden
      Holdings, Ltd., a Bermuda corporation (“Maiden Holdings”).

     

     

    RECITALS

     

    WHEREAS,
      Maiden Holdings plans to capitalize Maiden Insurance Company, Ltd., a
      reinsurance company to be domiciled in Bermuda (“Maiden Insurance”) and wholly
      owned by Maiden Holdings; and

     

    WHEREAS,
      AmTrust, directly or indirectly, owns Rochdale Insurance Company, a New York
      corporation (“Rochdale”), Technology Insurance Company, Inc., a New Hampshire
      corporation (“TIC”), Wesco Insurance Company, a Delaware corporation (“Wesco”),
      AmTrust International Underwriters, Ltd., a Irish corporation (“AIU”), and IGI
      Insurance Company, a United Kingdom corporation (“IGI,” together with Rochdale,
      TIC, Wesco, AIU and any additional companies that write direct insurance
      business as to which AmTrust acquires a majority interest that Maiden Insurance
      desires to reinsure as contemplated hereby, the “AmTrust Ceding Insurers”), and
      intends to enter into a strategic reinsurance arrangement with Maiden Insurance;
      and

     

    WHEREAS,
      when AmTrust completes its acquisition of Associated Industries Insurance
      Company, Inc., a Florida corporation (“Associated”), Associated will become an
      AmTrust Ceding Insurer; and

     

    WHEREAS,
      concurrently with the execution and delivery of this Agreement, Maiden Insurance
      is entering into a quota share reinsurance agreement with AIU and IGI, pursuant
      to which agreement Maiden Insurance will, effective as of 12:01 a.m. on July
      1,
      2007 (the “Effective Time”) and subject to the licensing and capitalization of
      Maiden Insurance, reinsure 40% of all ultimate net loss each of AIU and IGI
      incurs as a result of losses under all of their respective workers’
compensation, general liability, commercial automobile liability, specialty
      risk
      and extended warranty policies and such other types of policies that Maiden
      Insurance desires to reinsure pursuant to the provisions of any such quota
      share
      reinsurance agreement as contemplated by Article I therein; and

     

    WHEREAS,
      after the Effective Time and the licensing and capitalization of Maiden
      Insurance, subject to the receipt of regulatory approval, Maiden Holdings plans
      to cause Maiden Insurance to reinsure 40% of all ultimate net loss each such
      AmTrust Ceding Insurer incurs as a result of losses under all of its respective
      workers’ compensation, general liability, commercial automobile liability,
      specialty risk and extended warranty policies (the “Covered Business”), and such
      other types of policies that Maiden Insurance desires to reinsure pursuant
      to
      the provisions of any such quota share reinsurance agreement as contemplated
      by
      Article I therein, pursuant to a reinsurance quota share agreement to be entered
      into by Maiden Insurance and the AmTrust Ceding Insurers; and 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    WHEREAS,
      effective as of the Effective Time, but subject to the licensing and
      capitalization of Maiden Insurance and receipt of all required U.S. state
      insurance regulatory approvals, Maiden Holdings plans to cause Maiden Insurance
      to reinsure 40% of all ultimate net loss each of Rochdale, TIC and Wesco incurs
      as a result of losses pursuant to policies issued by those insurers that cover
      the Covered Business and such other types of policies that Maiden Insurance
      desires to reinsure pursuant to the provisions of the such quota share
      reinsurance agreement as contemplated by Article I therein;

     

    WHEREAS,
      in connection with such reinsurance agreements, where necessary for an AmTrust
      Ceding Company to receive credit for reinsurance under applicable law) each
      of
      AmTrust and Maiden Holdings intend to cause such AmTrust Ceding Insurers
      (initially Rochdale, TIC and Wesco) and Maiden Insurance, respectively, to
      enter
      into reinsurance trust agreements for the purpose of providing collateral
      security for the performance by Maiden Insurance of its obligation to the
      AmTrust Ceding Insurers under the applicable reinsurance agreement;
      and

     

    WHEREAS,
      concurrently with the execution and delivery of this Agreement, (i) AII
      Insurance Management Ltd. and Maiden Insurance are entering into an Asset
      Management Agreement pursuant to which AmTrust will provide asset management
      services to Maiden Insurance, and (ii) AII Reinsurance Broker Ltd. and Maiden
      Insurance are entering into a Reinsurance Brokerage Agreement pursuant to which
      Maiden Insurance will appoint AII Reinsurance Broker Ltd. as a broker of
      reinsurance and will pay it a fee in connection with reinsurance ceded to Maiden
      Insurance by AmTrust’s insurance company subsidiaries; and

     

    WHEREAS,
      Maiden Holdings and AmTrust would like to establish a procedure to provide
      for
      the conduct of business with regard to any future opportunities presented to
      both AmTrust and Maiden Holdings to insure, reinsure or acquire the same book
      of
      business;

     

    NOW,
      THEREFORE, in consideration of the mutual agreements described in this
      Agreement, AmTrust and Maiden Holdings agree as follows:

     

     

    ARTICLE
      I

    PURPOSE
      AND OVERVIEW

     

    1.1 Overview.
      As a
      result of the contemplated transactions set forth herein, whereby AmTrust is
      an
      intended strategic business partner with Maiden Holdings, it is intended that
      Maiden Holdings will be an organization that on fair and reasonable terms (a)
      can provide a stable source of reinsurance to the AmTrust Ceding Insurers,
      and
      (b) can have a steady source of profitable reinsurance business from the AmTrust
      Ceding Insurers in its initial years as it establishes itself in the
      marketplace.

     

    1.2 Purpose
      of Agreement.
      The
      purpose of this Agreement is to set forth duties and covenants of AmTrust and
      Maiden Holdings including:

     

    (a) Duties
      and covenants of AmTrust and Maiden Holdings to each other after the Effective
      Time; and

     

    
      
        
        

      

      
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    (b) Duties
      and covenants of AmTrust and Maiden Holdings to each other regarding the
      establishment of appropriate corporate governance principles to address
      conflicts of interest and the pursuit of corporate opportunities by each in
      connection with any opportunities that may be presented to both AmTrust and
      its
      subsidiaries and Maiden Holdings and its subsidiaries to insure, reinsure or
      acquire the same book of business.

     

    1.3 Agreements
      Contemplated.
      This
      Agreement contemplates that, in order to effectuate the business goals set
      forth
      herein, (a) quota share reinsurance agreements between Maiden Insurance and
      the
      AmTrust Ceding Insurers, substantially in the same form as the agreements
      attached hereto as Exhibit
      A-1
      (applying to Rochdale; TIC; Wesco, upon the closing of AmTrust’s acquisition of
      Associated, Associated and potentially other AmTrust Ceding Insurers from time
      to time, the “U.S. Reinsurance Agreement”) and A-2
      (applying to AIU, IGI and potentially other AmTrust Ceding Insurers over time,
      the “International Reinsurance Agreement”) (collectively, the “Reinsurance
      Agreements”), shall be executed and delivered by the parties and (b) reinsurance
      trust agreements among Rochdale, TIC and Wesco, as beneficiaries, Maiden
      Insurance, as grantor, and a trustee, substantially in the same form as the
      agreements attached hereto as Exhibits
      B-1,
      B-2
      and
B-3
      (the
“Reinsurance Trust Agreements”) shall be executed and delivered by the parties.
      If AmTrust acquires a majority equity interest in any other insurance company
      that writes direct business (an “Additional AmTrust Ceding Insurer”) and such
      company writes direct business of a type constituting Covered Business,

     

    1.4 it
      will
      cause such Additional AmTrust Ceding Insurer to enter into one of the
      Reinsurance Agreements (the U.S. Reinsurance Agreement if such Additional
      AmTrust Ceding Insurer is organized under the laws of the United States, any
      state thereof, the District of Columbia or any territory or possession of the
      United States and the International Reinsurance Agreement if such Additional
      AmTrust Ceding Insurer is organized under the laws of any other jurisdiction).
      If the direct business written by such Additional AmTrust Ceding Insurer is
      not
      of a type constituting Covered Business, AmTrust shall cause such Additional
      AmTrust Ceding Insurer to offer Maiden Insurance the opportunity to reinsure
      such business pursuant to the terms of the applicable Reinsurance Agreement,
      and, if Maiden accepts such offer, will cause such Additional AmTrust Ceding
      Insurer to enter into one of the Reinsurance Agreements (the U.S. Reinsurance
      Agreement if such Additional AmTrust Ceding Insurer is organized under the
      laws
      of the United States, any state thereof, the District of Columbia or any
      territory or possession of the United States and International Reinsurance
      Agreement if such Additional AmTrust Ceding Insurer is organized under the
      laws
      of any other jurisdiction). 

     

    It
      is
      expressly understood by all parties that the parties will act with diligence
      to
      cause the U.S. Reinsurance Agreement to become effective as soon as practicable
      after the Effective Time but that it will require submission to and approval
      or
      non-disapproval by all applicable U.S. state insurance regulators before it
      becomes effective.

     

    1.5 Good
      Faith.
      Each
      party agrees that it will negotiate and act in good faith and will take all
      steps reasonably necessary to carry out the intent of this Agreement and
      preserve the economic arrangements contemplated hereby, including modifying
      the
      Reinsurance Agreements and the Reinsurance Trust Agreements to the extent
      required to comply with the laws, orders or directives of any insurance
      regulator having jurisdiction over the parties thereto or negotiating and
      entering into any other agreements that are reasonable and necessary in order
      to
      carry out the intent of the parties.

     

    
      
        
        

      

      
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    1.6 Term.
      This
      Agreement shall be effective upon the Effective Time. 

     

     

    ARTICLE
      II

    TRANSACTIONS
      CONTEMPLATED BY THIS AGREEMENT

     

    2.1 Duties
      of the Parties after the Effective Time.
      Maiden
      Holdings shall cause Maiden Insurance to enter into the Reinsurance Agreements
      and the Reinsurance Trust Agreements and AmTrust shall cause the AmTrust Ceding
      Insurers to enter into the Reinsurance Agreements and each of the AmTrust Ceding
      Insurers contemplated as being parties to a Reinsurance Trust Agreement to
      enter
      into the applicable Reinsurance Trust Agreement. If AmTrust acquires a majority
      equity interest in an Additional AmTrust Ceding Insurer, Maiden Holdings will
      cause Maiden Insurance, and AmTrust will cause such Additional AmTrust Ceding
      Insurer, to enter into(i) an amendment to the applicable Reinsurance Agreement
      to provide for the inclusion of such Additional AmTrust Ceding Insurer and
      (ii)
      if a Reinsurance Trust Agreement is required for such Additional AmTrust Ceding
      Insurer to be given credit for such reinsurance under applicable law, a
      Reinsurance Trust Agreement in form substantially consistent with the other
      Reinsurance Trust Agreements but with such modifications as shall be reasonably
      necessary to comply with the laws of the jurisdiction under which such AmTrust
      Ceding Company is organized.

     

    2.2 Corporate
      Governance Considerations.
      Both
      AmTrust and Maiden Holdings are committed to good corporate governance,
      compliance with Securities and Exchange Commission and stock exchange listing
      requirements, adherence to the applicable governing corporate laws, and
      satisfaction of state regulatory laws regarding insurance holding company
      structure and related party transactions.

     

    Both
      AmTrust and Maiden Holdings recognize that because they have large shareholders
      in common and because AmTrust and Maiden Holdings will initially share members
      of executive management and boards of directors, activities of each that impact
      the other will attract special scrutiny from interested parties and demand
      special scrutiny from AmTrust’s and Maiden Holdings’ management and boards of
      directors. Accordingly, each of AmTrust and Maiden Holdings shall require that
      on any occasion where a business opportunity to insure, reinsure or acquire
      the
      same book of business is presented to both AmTrust and Maiden Holdings, each
      company shall refer such opportunity to a committee of its independent directors
      to decide whether that company shall pursue the opportunity. A director of
      Maiden Holdings or AmTrust shall not be considered “independent” unless the
      board of directors of Maiden Holdings or AmTrust, respectively, determines
      that
      such director is independent with respect to both Maiden Holdings and AmTrust
      under the applicable standards for director independence under the rules of
      the
      principal stock exchange on which any securities of Maiden Holdings or AmTrust,
      respectively, are listed (or, if no securities of such party are listed on
      any
      stock exchange, the rules of the NASDAQ Stock Market).

     

    

    
      
        
        

      

      
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    ARTICLE
      III

    REPRESENTATIONS
      AND WARRANTIES OF AMTRUST

     

    AmTrust
      hereby represents and warrants to Maiden Holdings the following:

     

    3.1 Organization
      and Corporate Power.
      AmTrust
      is a corporation duly organized, validly existing and in good standing under
      the
      laws of the State of Delaware having all corporate power and authority necessary
      to own its property and operate its businesses as now conducted. It has all
      corporate power, authority and legal right necessary to execute and deliver
      this
      Agreement and, subject to receipt of the requisite approvals or non-disapprovals
      of the U.S. Reinsurance Agreement and the Reinsurance Trust Agreements from
      the
      applicable insurance regulators, to
      perform
      and carry out the transactions contemplated hereby pursuant to the terms and
      conditions of this Agreement.

     

    3.2 Authorization
      and Effect.
      This
      Agreement and the performance of the actions provided for herein have been
      duly
      and validly authorized by all necessary corporate action on the part of AmTrust.
      This Agreement has been executed and delivered by duly authorized and acting
      officers of AmTrust, and assuming the due authorization, execution and delivery
      of this Agreement by Maiden Holdings, constitutes a legal, valid and binding
      obligation of AmTrust enforceable in accordance with its terms, subject to
      (i)
      laws relating to bankruptcy, fraudulent conveyances, reorganization,
      liquidation, moratorium and other similar laws affecting creditor’s rights
      generally, (ii) general principles of equity (regardless whether enforceability
      is considered in a proceeding in equity or at law), (iii) standards of
      commercial reasonableness and good faith, (iv) public policy and (v) concepts
      of
      comity.

     

     

    ARTICLE
      IV

    REPRESENTATIONS
      AND WARRANTIES OF MAIDEN HOLDINGS

     

    Maiden
      Holdings hereby represents and warrants to AmTrust the following:

     

    4.1 Organization
      and Corporate Power.
      Maiden
      Holdings is a corporation duly organized, validly existing and in good standing
      under the laws of Bermuda having all corporate power and authority necessary
      to
      own its property and operate its businesses as now conducted. It has all
      corporate power, authority and legal right necessary to execute and deliver
      this
      Agreement and, subject to receipt of the requisite approvals or non-disapprovals
      of the U.S. Reinsurance Agreement and the Reinsurance Trust Agreements from
      the
      applicable insurance regulators, to
      perform
      and carry out the transactions contemplated hereby pursuant to the terms and
      conditions of this Agreement.

     

    4.2 Authorization
      and Effect.
      This
      Agreement and the performance of the actions provided for herein have been
      duly
      and validly authorized by all necessary corporate action on the part of Maiden
      Holdings. This Agreement has been executed and delivered by duly authorized
      and
      acting officers of Maiden Holdings, and assuming the due authorization,
      execution and delivery of this Agreement by AmTrust, constitutes a legal, valid
      and binding obligation of Maiden Holdings enforceable in accordance with its
      terms, subject to (i) laws relating to bankruptcy, fraudulent conveyances,
      reorganization, liquidation, moratorium and other similar laws affecting
      creditor’s rights generally, (ii) general principles of equity (regardless
      whether enforceability is considered in a proceeding in equity or at law),
      (iii)
      standards of commercial reasonableness and good faith, (iv) public policy and
      (v) concepts of comity.

     

     

    
      
        
        

      

      
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    ARTICLE
      V

    ADDITIONAL
      COVANENTS OF THE PARTIES

     

    5.1 Regulatory
      Matters.
      The
      parties hereto will cooperate with each other in the preparation and submission
      of those filings and documents necessary to obtain the permits, consents,
      approvals, non-disapprovals and authorizations of governmental bodies necessary
      to consummate the transactions contemplated by this Agreement. AmTrust and
      Maiden Holdings will furnish the other all information concerning itself and
      its
      subsidiaries and such other matters and things as may be necessary, prudent
      or
      advisable in connection with any statement or application made by or on behalf
      of AmTrust or Maiden Holdings to any governmental body in connection with the
      transactions contemplated herein.

     

    5.2 Further
      Assurances.
      Subject
      to the terms and conditions hereof, each of the parties hereto agrees to use
      all
      reasonable efforts to take, or cause to be taken, all actions and to do or
      cause
      to be done all things necessary, proper or advisable under applicable laws
      and
      regulations to consummate and make effective the transactions contemplated
      by
      this Agreement as expeditiously as possible. If at any time further action
      is
      necessary or desirable to carry out the purposes of this Agreement, the proper
      officers and directors of the parties hereto shall take all such reasonably
      necessary action.

     

     

    ARTICLE
      VI

    CONDITIONS
      TO THE CONSUMMATION OF TRANSACTIONS

     

    6.1 General
      Conditions.
      The
      obligations of the parties to complete the various transactions contemplated
      by
      this Agreement shall be subject to the satisfaction of the following terms
      and
      conditions, except as otherwise specifically provided herein:

     

    (a) receipt
      of all necessary regulatory approvals or non-disapprovals, without material
      or
      substantial qualification or condition, as are required to consummate the
      transaction contemplated hereby (except where the failure to obtain any such
      approval would not render the transaction contemplated hereby illegal or
      otherwise deprive either party of the material benefits of this Agreement or
      be
      materially inconsistent with the conditions set forth above), and such shall
      remain in full force and effect, and all statutory waiting periods in respect
      thereof shall have expired; and

     

    (b) neither
      AmTrust or any of the AmTrust Ceding Insurers, on one hand, nor Maiden Holdings
      or Maiden Insurance, on the other hand, shall be subject to any order, decree
      or
      injunction of a court or agency of competent jurisdiction which enjoins or
      prohibits the consummation of the transaction contemplated hereby, nor shall
      there be pending a suit or proceeding by any governmental authority which seeks
      injunctive or other relief in connection with the transaction contemplated
      hereby.

     

     

    
      
        
        

      

      
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    ARTICLE
      VII

    TERMINATION
      AND AMENDMENT

     

    7.1 Termination.
      This
      Agreement may be terminated at any time prior to its expiration:

     

    (a) by
      the
      written consent of AmTrust and Maiden Holdings;

     

    (b) by
      AmTrust if there shall have been any material misrepresentation in this
      Agreement by Maiden Holdings or any material breach of any covenant of Maiden
      Holdings hereunder and such breach shall not have been remedied within 30 days
      after receipt by Maiden Holdings of notice in writing from AmTrust specifying
      the nature of the breach and requesting such be remedied; and

     

    (c) by
      Maiden
      Holdings if there shall have been any material misrepresentation in this
      Agreement by AmTrust or any material breach of any covenant of AmTrust hereunder
      and such breach shall not have been remedied within 30 days after receipt by
      AmTrust of notice in writing from Maiden Holdings specifying the nature of
      the
      breach and requesting such be remedied;

     

    provided
      that the
      provisions of Section 2.2 shall survive such termination, if, and for so long
      as, (i) any member of the executive management or board of directors of AmTrust
      or any person or group of persons acting in concert who beneficially owns (as
      defined below) voting securities having 10% or more of the voting power of
      all
      outstanding voting securities of AmTrust is a member of the executive management
      or board of directors of Maiden Holdings, (ii) any member of the executive
      management or board of directors of Maiden Holdings or Maiden Insurance or
      any
      person or group of persons acting in concert who beneficially owns voting
      securities having 10% or more of the voting power of all outstanding voting
      securities of Maiden Holdings is a member of the executive management of
      AmTrust, or (iii) any person or group of persons acting in concert beneficially
      owns voting securities having 10% or more of the voting power of all outstanding
      voting securities of both Maiden Holdings and AmTrust. “Beneficially owns” shall
      have the meaning ascribed to such term in Rule 13d-3 under the United States
      Securities Exchange Act of 1934, as amended.

     

    7.2 Effect
      of Termination.
      In
      the
      event that this Agreement is terminated as provided in Section 7.1 above, this
      Agreement shall forthwith become void (other than this Section 7.2, and Sections
      8.1, 9.1 through 9.3, and 9.5 through 9.11, hereof which shall remain in full
      force and effect) and there shall be no further liability on the part of AmTrust
      or Maiden Holdings. Nothing contained in this Section 7.2 shall relieve any
      party hereto from liability for its breach of this Agreement.

     

    7.3 Amendment.
      At any
      time during the term of this Agreement, the parties hereto may amend this
      Agreement. This Agreement may not be amended except by an instrument in writing
      signed on behalf of each of the parties hereto.

     

    
      
        
        

      

      
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    ARTICLE
      VIII

    INDEMNIFICATION

     

    8.1 Indemnification.
      Each
      party to this Agreement shall indemnify the other party against, and hold it
      harmless from, all losses, damages, and liabilities incurred by such party
      arising from any material breach of any representation or warranty made herein
      or of any material failure to fulfill its obligations as set forth in this
      Agreement by the party against which such indemnification is sought. All
      representations and warranties and indemnification obligations made in this
      Agreement shall survive the implementation of the transactions contemplated
      hereby.

     

     

    ARTICLE
      IX

    MISCELLANEOUS

     

    9.1 Expenses.
      All
      costs
      and expenses incurred in connection with this Agreement and the transactions
      contemplated hereby shall be paid by the party incurring such costs and
      expenses.

     

    9.2 Notices.
      Except
      as
      may be otherwise provided herein, any notice or other communication or delivery
      required or permitted hereunder shall be in writing and shall be delivered
      personally or sent by certified mail, postage prepaid, by a nationally
      recognized overnight courier service or by facsimile as follows, and shall
      be
      deemed given when actually received.

     

    (a) if
      to
      AmTrust:

     

    AmTrust
      Financial Services, Inc.

    59
      Maiden
      Lane, 6th Floor

    New
      York,
      New York 10038

    Attention:
      Stephen Ungar

    Facsimile:
      (212) 220-7130

     

    (b) if
      to
      Maiden Holdings:

     

    Maiden
      Holdings, Ltd.

    7
      Reid
      Street

    Hamilton
      HM 12 Bermuda

    Attention:
      Ben Turin

    Facsimile:
      (441) 292-5796

     

    With
      a
      copy (which shall not constitute notice) to:

     

    LeBoeuf,
      Lamb, Greene & MacRae LLP

    125
      West
      55th
      Street

    New
      York,
      New York 10019

    Attention:
      Matthew M. Ricciardi, Esq.

    Facsimile:
      (212) 649-9483

     

    
      
        
        

      

      
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    9.3 Parties
      in Interest.
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors and assigns.

     

    9.4 Survival
      of Covenants, Representations and Warranties.
      The
      representations and warranties contained herein shall survive throughout the
      course of the transactions contemplated hereby and may be enforced by the
      parties hereto. The covenants shall survive according to their individual
      terms.

     

    9.5 Counterparts.
      This
      Agreement may be executed in one or more counterparts, all of which shall be
      considered one and the same agreement, and each of which shall be deemed an
      original.

     

    9.6 Headings.
      The
      article and section headings used in this Agreement have been inserted for
      convenience of reference only and shall not be construed to affect the meaning
      or interpretation of any provision, term or condition hereof.

     

    9.7 Governing
      Law.
      This
      Agreement shall be construed and enforced in accordance with the laws and
      decisions of the State of New York without giving effect to the principles
      of
      conflicts of laws thereof.

     

    9.8 Entire
      Agreement; No Third Party Beneficiaries.
      This
      Agreement represents the entire agreement between the parties and supersedes
      all
      prior written or oral agreements relating to the transactions contemplated
      hereby and is not intended to confer upon any person other than the parties
      any
      rights or remedies hereunder.

     

    9.9 Severability
      of Invalid Provision.
      If any
      one
      or more covenants or agreements provided in this Agreement should be contrary
      to
      law, then such covenant or covenants, agreement or agreements shall be null
      and
      void and shall in no way affect the validity of the other provisions of this
      Agreement.

     

    9.10 Assignment
      of Agreement.
      This
      Agreement may not be assigned without the written consent of all parties to
      it.
      This Agreement shall insure to the benefit of, and be binding upon, the
      successors of each party. This Agreement shall be for the sole benefit of the
      parties to this Agreement and their respective heirs, successors, assigns and
      legal representatives and is not
      intended, nor shall be construed, to give any person, other than the parties
      hereto and their respective heirs, successors, assigns and legal
      representatives, any legal or equitable right, remedy or claim
      hereunder.

     

    9.11 Waiver.
      No
      party
      to this Agreement shall be deemed to have waived any rights or remedies under
      this Agreement unless such waiver is expressly made in writing and signed by
      such party. Failure of any party to exercise any right or remedy under this
      Agreement or otherwise, or delay by a party in exercising such right or remedy,
      shall not operate as a waiver thereof. No single waiver or failure to exercise
      any right or remedy shall be construed as a waiver of any other right or
      remedy.

     

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF, the parties to this Agreement have caused it to be executed
      by
      their respective undersigned officers, each thereunto duly
      authorized.

    

    

                                    AMTRUST
      FINANCIAL
      SERVICES, INC.

    

    By:_
      /s/
      Stephen Ungar______________

      Name: Stephen
      Ungar

      Title: Secretary

    

     

    MAIDEN
      HOLDINGS, LTD.

    
By:__
      /s/
      Bentzion S. Turin____________

      Name: Bentzion
      S. Turin

      Title: Chief
      Operating Officer, 

      General
      Counsel and Assistant
      Secretary

    

    
      
        
        

      

      
        10EXHIBIT
      10.7

    Execution
      Copy

    

    FIRST
      AMENDMENT

    TO

    MASTER
      AGREEMENT

    

    THIS
      FIRST AMENDMENT (this
      "Amendment"), dated and effective as of September 17, 2007, to the Master
      Agreement (the "Agreement") dated as of July 3, 2007, by and between AmTrust
      Financial Services, Inc., a Delaware corporation ("AmTrust") and Maiden
      Holdings, Ltd., a Bermuda corporation ("Maiden Holdings"), is made by and
      between AmTrust and Maiden Holdings.

     

    RECITALS

     

    WHEREAS,
      pursuant to Section 7.3 of the Agreement, the parties hereto wish to amend
      certain provisions of the Agreement in the manner set forth in this
      Amendment.

     

    NOW,
      THEREFORE, in consideration of the premises and mutual covenants contained
      herein, the parties hereto agree as follows:

     

    ARTICLE
      I

    DEFINITIONS
      AND USAGE

     

    
      	
              1.1

            	
              Definitions.
                Capitalized terms used but not defined herein shall have the meaning
                set
                forth in the Agreement.

            

    

     

    
      	
              1.2

            	
              Headings.
                The headings contained in this Amendment are for reference purposes
                only
                and shall not affect the meaning or interpretation of this
                Amendment.

            

    

     

    ARTICLE
      II

    AMENDMENTS

     

    
      	
              2.1

            	
              The
                fourth, fifth, sixth and seventh Recitals of the Agreement are hereby
                deleted in their entirety and replaced with the
                following:

            

    

     

    WHEREAS,
      after the Effective Time and the licensing and capitalization of Maiden
      Insurance, subject to the receipt of regulatory approval, Maiden Holdings plans
      to cause Maiden Insurance to reinsure, pursuant to a Quota Share Reinsurance
      Agreement between AmTrust International Insurance, Ltd. ("AII") and Maiden
      Insurance, in the form attached hereto as Exhibit
      A
      (the
      "Reinsurance Agreement"), 40% of all ultimate net loss each such AmTrust Ceding
      Insurer incurs as a result of losses under all of its respective workers’
compensation, general liability, commercial automobile liability, specialty
      risk
      and extended warranty policies (the “Covered Business”) to the extent reinsured
      by AII pursuant to existing reinsurance agreements between the AmTrust Ceding
      Insurers and AII (the "Underlying Reinsurance Agreements"), and such other
      types
      of policies that Maiden Insurance desires to reinsure pursuant to the provisions
      of the Reinsurance Agreement as more particularly set forth in the Reinsurance
      Agreement, and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              2.2

            	
              Section
                1.3 of the Agreement is hereby amended and restated in its entirety
                as
                follows:

            

    

     

    
      	 	
              1.3

            	
              Agreements
                Contemplated.
                

            

    

     

    (a) This
      Agreement contemplates that, in order to effectuate the business goals set
      forth
      herein, Maiden Insurance and AII shall (i) no later than September 17, 2007
      ,
      execute and deliver the Reinsurance Agreement and (ii) promptly following the
      execution hereof negotiate in good faith and execute and deliver a loan
      agreement on mutually acceptable terms and conditions between Maiden Insurance
      and AII, provided that such loan agreement shall include the terms and provision
      set forth in Exhibit
      B
      (the
      "Loan Agreement"). 

     

    (b) If
      either
      party to this Agreement determines in good faith that (i) the mix of business
      represented by the Covered Business as of the end of any semi-annual period
      during the term of the Reinsurance Agreement differs materially from (ii) the
      mix of business represented by the Covered Business reinsured by Maiden
      Insurance under the Reinsurance Agreement as of the Effective Time, then, upon
      written notice by such party to the other party hereto, the parties hereto
      shall
      cause Maiden Insurance and AII, respectively, to promptly negotiate in good
      faith appropriate adjustments to the rate of commissions payable under the
      Reinsurance Agreement. 

     

    
      	
              2.3

            	
              Section
                1.4 of the Agreement is hereby amended and restated in its entirety
                as
                follows: 

            

    

     

    1.4 Representations,
      Warranties and Covenants.
      AmTrust
      hereby represents, warrants and covenants to Maiden that:

     

    (a) AmTrust
      shall cause AII to enforce its rights and exercise its remedies under the
      Underlying Reinsurance Agreements on a timely basis and in an arms-length
      manner;

     

    (b) AmTrust
      shall cause AII to cede to Maiden Insurance pursuant to the Reinsurance
      Agreement an amount of premium equal to forty percent (40%) of Affiliate Subject
      Premium (as defined in the Reinsurance Agreement) with respect to each AmTrust
      Ceding Insurer as more particularly set forth in the Reinsurance Agreement,
      unless AII shall no longer be an Affiliate (as defined in the Reinsurance
      Agreement) of AmTrust or AII shall have become insolvent, or shall have been
      placed into liquidation or receivership (whether voluntary or involuntary),
      or
      there shall have been instituted against it proceedings for the appointment
      of a
      receiver, liquidator, rehabilitator, conservator, or trustee in bankruptcy
      or
      other agent known by whatever name, to take possession of its assets or control
      of its operations (an “AII Insolvency”);

     

    (c) Subject
      to applicable law, AmTrust shall cause each AmTrust Ceding Insurer, to the
      extent such AmTrust Ceding Insurer writes Covered Business, to cede to AII
      not
      less than forty percent (40%) of Affiliate Subject Premium in accordance with
      the terms of an Underlying Reinsurance Agreement, unless AII shall no longer
      be
      an Affiliate of AmTrust or an AII Insolvency shall have occurred, in which
      event
      AmTrust shall either cause each such AmTrust Ceding Insurer, as a cedent, to
      cede the Subject Premium to (i) Maiden Insurance, as reinsurer, on terms
      substantially similar to the Reinsurance Agreement mutatis mutandis
      or
      (ii) another Affiliate of AmTrust, as a reinsurer, reasonably acceptable to
      Maiden Insurance, which shall in turn retrocede such Subject Premium to Maiden
      Insurance on terms substantially similar to the Reinsurance Agreement
mutatis mutandis
      and
      Maiden Holdings shall cause Maiden Insurance to accept such cession or
      retrocession.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    (d) if
      an
      Affiliate writes direct business that is not of a type constituting Covered
      Business (including direct business that would be Covered Business, except
      that
      the retention of such Affiliate as to any one risk under any Policy (as defined
      in the Reinsurance Agreement) shall be greater than $5,000,000) or AmTrust
      directly or indirectly acquires an Affiliate after the date of this Agreement
      that writes direct business of any type, AmTrust shall cause AII to offer Maiden
      Insurance the opportunity to reinsure forty percent (40%) of such Affiliate's
      gross written premium, less the cost of inuring reinsurance and other deductions
      from premium ceded to AII, attributable to such additional business and, if
      Maiden Insurance accepts such offer within thirty (30) days of such offer,
      shall
      cause such Affiliate to reinsure such business to AII pursuant to an Underlying
      Reinsurance Agreement, which shall in turn cede such business to Maiden
      Insurance pursuant to and in accordance with the terms of the Reinsurance
      Agreement, unless AII shall no longer be an Affiliate of AmTrust or an AII
      Insolvency shall have occurred, in which event AmTrust shall either cause such
      Affiliate that is a direct writer, as a cedent, or another Affiliate of AmTrust,
      as retrocedent, reasonably acceptable to Maiden Insurance, to make such offer
      to
      Maiden Insurance;

     

    (e) AmTrust
      shall cause AII and the AmTrust Ceding Insurers to (i) not assign any Underlying
      Reinsurance Agreement (including without limitation Underlying Reinsurance
      Agreements entered into after the date hereof) without the prior written consent
      of Maiden Insurance, such consent to not be unreasonably withheld, (ii) not
      amend or waive any provision of any Underlying Reinsurance Agreement (or, in
      the
      case of Underlying Reinsurance Agreements entered into after the date hereof,
      agree to any such provision) that could reasonably be expected to affect the
      definition of Subject Premium or Ultimate Net Loss (both as defined in the
      Underlying Reinsurance Agreement) or the method of calculation of Subject
      Premium or Net Ultimate Loss under the Reinsurance Agreement or terms or
      provisions relating to the timing or manner of payments to Maiden Insurance
      under the Reinsurance Agreement, or otherwise could reasonably be expected
      to
      have a material adverse affect on the financial condition of AII, without the
      prior written consent of Maiden Insurance, such consent to not be unreasonably
      withheld;

     

    (f) AmTrust
      shall cause AII and the AmTrust Ceding Insurers to deliver to Maiden Insurance
      concurrent copies of all notices delivered under the Underlying Reinsurance
      Agreements and under each reinsurance trust agreement among AII, an AmTrust
      Ceding Insurer and a trustee;

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    (g) AmTrust
      shall cause the AmTrust Ceding Insurers to permit Maiden Insurance to examine,
      and make and retain (at Maiden Insurance's expense) copies of, their books
      and
      records and to make their executives reasonably available to Maiden
      Insurance

     

    (h) AmTrust
      shall cause the AmTrust Ceding Insurers to timely provide to AII all information
      required for AII to deliver to Maiden Insurance the information required by
      Article VII of the Reinsurance Agreement;

     

    (i) if
      an
      AmTrust Ceding Insurer withdraws Reinsurer Trust Assets (as defined in the
      Reinsurance Agreement) from a Trust Account (as defined in the Reinsurance
      Agreement) or draws on a Letter of Credit (as defined in the Reinsurance
      Agreement) provided by the Reinsurer pursuant to the Reinsurance Agreement,
      AmTrust shall cause such AmTrust Ceding Insurer to take such steps as are
      necessary to not commingle Reinsurer Trust Assets or drawings under such Letter
      of Credit with its own assets or AII's assets, including but not limited to,
      by
      maintaining Maiden Insurance's assets in a separately identifiable account,
      except for purpose of paying claims or other amounts due under the applicable
      Underlying Reinsurance Agreement; and

     

    (j) AmTrust
      hereby represents and warrants that AII and the AmTrust Ceding Insurers
      maintain, as of the date hereof, excess reinsurance coverage with respect to
      Extra Contractual Obligations and Loss in Excess of Policy Limits (both as
      defined in the Reinsurance Agreement) pursuant to the reinsurance agreements
      set
      forth on Exhibit C hereto, which coverage indemnifies AII and the AmTrust Ceding
      Insurers, collectively, for: 100% of $9 million excess of $1 million and 90%
      of
      $110 million excess of $20 million, respectively. AmTrust shall use commercially
      reasonable efforts to maintain excess reinsurance providing substantially the
      same protection as to Extra Contractual Obligations and Loss in Excess of Policy
      Limits during the term of the Reinsurance Agreement. AmTrust shall notify Maiden
      Insurance in writing not less than 60 days prior to the date on which any such
      excess reinsurance is terminated or amended.

     

    
      	
              2.4

            	
              Section
                2.1of the Agreement is hereby amended and restated in its entirety
                as
                follows: 

            

    

     

    2.1 Duties
      of the Parties after the Effective Time.
      If
      AmTrust acquires a majority equity interest in any other insurance company
      that
      writes direct business (an “Additional AmTrust Ceding Insurer”) and such company
      writes direct business of a type constituting Covered Business, AmTrust (i)
      will
      cause such Additional AmTrust Additional Ceding Insurer to enter into an
      Underlying Reinsurance Agreement with AII and (ii) will cause AII to reinsure
      Covered Business written by such Additional AmTrust Ceding Insurer with Maiden
      Insurance pursuant to the Reinsurance Agreement, unless AII shall no longer
      be
      an Affiliate of AmTrust or an AII Insolvency shall have occurred, in which
      event
      AmTrust shall either cause each such Additional AmTrust Ceding Insurer, as
      cedent, to cede the Subject Premium to (x) Maiden Insurance, as reinsurer,
      on
      terms substantially similar to the Reinsurance Agreement mutatis mutandis
      or
      (y) another Affiliate of AmTrust, as reinsurer, reasonably acceptable to
      Maiden Insurance, which shall in turn retrocede such Subject Premium to Maiden
      Insurance on terms substantially similar to the Reinsurance Agreement
mutatis mutandis
      and
      Maiden Holdings shall cause Maiden Insurance to accept such cession or
      retrocession.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

      

    
      	2.5	
              Sections
                1.5, 3.1 and 4.1 of the Agreement are hereby amended by replacing
                references to "Reinsurance Agreements" with "Reinsurance Agreement"
                and by
                replacing references to "Reinsurance Trust Agreements" to "Loan
                Agreement."

            

    

     

    
      	
              2.6

            	
              Section
                7.1 of the Agreement is hereby amended by deleting the word “and” at the
                end of subsection (b) thereof, adding to the end of subsection (c)
                the
                word “and” and inserting as new subsection (d) following subsection (c)
                the following:

            

    

     

    (d) automatically
      upon the termination of the Reinsurance Agreement, other than as a result of
      a
      Company Change of Control (as defined in the Reinsurance
      Agreement);

    

    
      	
              2.7

            	
              Section
                7.2 of the Agreement is hereby amended and restated in its entirety
                as
                follows: 

            

    

     

    7.2 Effect
      of Termination.
      In
      the
      event that this Agreement is terminated as provided in Section 7.1 above, this
      Agreement shall forthwith become void (other than this Section 7.2, and Sections
      8.1, 9.1 through 9.3, 9.5 through 9.11, and Article X hereof which shall remain
      in full force and effect) and there shall be no further liability on the part
      of
      AmTrust or Maiden Holdings. Nothing contained in this Section 7.2 shall relieve
      any party hereto from liability for its breach of this Agreement.

    

    
      	
              2.8

            	
              The
                Agreement is hereby amended by adding thereto a new Article X to
                read as
                follows:

            

    

     

    10.1 AmTrust
      Guarantee.
      To
      induce
      Maiden Insurance to enter into the Reinsurance Agreement and the Loan Agreement,
      AmTrust hereby unconditionally, irrevocably and absolutely guarantees to Maiden
      Insurance the punctual performance and discharge of all the obligations of
      AII
      when due and arising under Article XXIII of the Reinsurance Agreement and under
      the Loan Agreement (the "AII Agreements") at any time and of any kind or nature
      whatsoever (the “Obligations”);
      provided,
      however,
      that,
      except as otherwise provided in Section 10.2, it is a condition to AmTrust's
      liability under this Article X that (i) Maiden Insurance shall have provided
      AII
      with written notice that specifies AII’s failure to pay and/or perform the
      Obligations within any applicable cure period, with a copy to AmTrust, and
      (ii)
      AII shall have failed to fully cure such deficient performance and/or payment
      to
      Maiden Insurance’s reasonable satisfaction within ten (10) business days after
      AmTrust’s receipt of such notice.
      The
      guarantee set forth in this Article X (“Guarantee”) is a guarantee of timely
      payment and performance of the Obligations by AmTrust. Maiden Insurance may
      proceed directly against AmTrust, and AmTrust shall pay and/or perform the
      Obligations directly to Maiden Insurance, if AII fails to so cure such
      deficient performance and/or payment within
      such ten (10) business day period.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    10.2 Scope
      of Guarantee.
      AmTrust
      hereby
      agrees that this Guarantee is a continuing guarantee and that AmTrust’s
      obligation to pay and/or perform or cause performance of the Obligations in
      full
      shall be unconditional, irrespective of and unaffected by (i) the absence of
      any
      action to enforce the same; (ii) the
      rendering of any judgment against AII or any action to enforce the same; (iii)
      any waiver, consent, grant of time, forbearance or other indulgence by Maiden
      Insurance to or for the benefit of AII with respect to Obligations that are
      not
      subject to a claim by Maiden Insurance under the Guarantee; (iv) (x) AII
      becoming insolvent or suspending its business; (y) AII filing a voluntary
      petition or consenting to an involuntary petition purporting to be pursuant
      to
      any reorganization or insolvency law of any jurisdiction or making a general
      assignment for the benefit of creditors or applying for or consenting to the
      appointment of a receiver or trustee for a substantial part of its property
      (collectively, a “Bankruptcy Event”); (v) the genuineness, validity,
      regularity or enforceability of the Obligations, except to the extent that
      any
      lack of genuineness, validity, regularity or enforceability of the Obligations
      is due to the acts or omissions of Maiden Insurance; (vi) any transaction or
      series of transactions that results in a change of control of AII; and (vii)
      subject to the requirement that the Obligations are then due under the AII
      Agreements, any circumstances that might otherwise constitute a legal or
      equitable discharge or defense of a guarantor or surety or any other matter
      that
      would release a guarantor. In the event of a Company Change of Control, if
      Maiden Insurance shall not terminate the Reinsurance Agreement in accordance
      with the terms and provisions of the Reinsurance Agreement, this Guarantee
      shall
      automatically terminate and be of no further force and effect. 

     

    Notwithstanding
      anything to the contrary contained in this Article X, in the event of a
      Bankruptcy Event affecting AII, Maiden Insurance may proceed directly against
      AmTrust for the payment in full of all Obligations of AII then due and payable.
      Maiden Insurance shall not be required to file any claim in the event of a
      Bankruptcy Event, it being understood and agreed that Maiden Insurance’s failure
      so to file and any action taken by a governmental Entity in connection with
      a
      Bankruptcy Event shall not diminish or in any way affect AmTrust’s obligation to
      Maiden Insurance under Article X or the timing, amount or recoverability of
      the
      Obligations under the Guarantee; provided that if Maiden Insurance shall not
      so
      file such a claim, it hereby grants to AmTrust a power of attorney to file
      on
      behalf of Maiden Insurance any such claim as shall be reasonably necessary
      to
      preserve any subrogation claim that AmTrust may have as a result of the
      performance of its obligations hereunder. Maiden Insurance agrees to execute
      any
      instrument that AmTrust may reasonably request to evidence such power of
      attorney. AmTrust hereby waives diligence, presentment, demand of payment or
      any
      defense, right of set-off or counterclaim that AII may have or assert under
      the
      AII Agreements as to the Obligations.

     

    Except
      for the notice requirements under Section 10.1, which shall not be waived under
      this Section 10.2, AmTrust further waives any right to require a proceeding
      first against AII or any other person before proceeding against AmTrust, protest
      or notice with respect to the Obligations and all demands whatsoever, and
      covenants that this Guarantee shall not be discharged except by complete payment
      of the Obligations. This Guarantee shall continue to be effective
      or be
      reinstated (to the extent that any payment made is rescinded or must otherwise
      be restored or returned by Maiden Insurance), as the case may be, if at any
      time
      any payment made by AII to
      Maiden
      Insurance is rescinded or must otherwise be restored or returned by Maiden
      Insurance in the event of a Bankruptcy Event, all as though such payment had
      not
      been made.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    10.3 Payments.
      Payment
      of amounts to Maiden Insurance under the Guarantee shall be made promptly by
      AmTrust on demand in writing by wire transfer in immediately available funds
      to
      an account or accounts designated by Maiden Insurance. AmTrust
      shall reimburse Maiden Insurance on demand for all reasonable costs, expenses
      and charges (including without limitation reasonable fees and charges of legal
      counsel for Maiden Insurance) incurred by Maiden Insurance in connection with
      the enforcement of this Guarantee.

     

    ARTICLE
      III

    MISCELLANEOUS

     

    
      	
              3.1

            	
              Confirmation
                of the Agreement.
                Except as amended by this Amendment, the Agreement remains in full
                force
                and effect, without further modification or amendment.
                

            

    

     

    
      	
              3.2

            	
              Governing
                Law.
                This Amendment shall be governed by the laws of the State of New
                York,
                without regard to principles of conflict of
                laws.

            

    

     

    
      	
              3.3

            	
              Counterparts.
                This Amendment may be executed in one or more counterparts, and such
                counterparts together shall constitute one and the same
                agreement.

            

    

     

    [Remainder
      of page intentionally left blank]

    

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
      executed by their respective officers thereunto duly authorized as of the day
      and year first above written.

    
      	 	 	 
	 	AMTRUST FINANCIAL SERVICES, INC.
	 
 	 
 	 
 
	
            	By:  	/s/ Steve
              Ungar
	 	
              
Name:
              Steve Ungar
	 	Title: Secretary

    

    
      	 	 	 
	 	MAIDEN HOLDINGS, LTD.
	 
 	 
 	 
 
	
            	By:  	/s/ Bentzion
              S. Turin 
	 	
              
Name:
              Bentzion S. Turin
	 	Title: Chief Operating Officer, General Counsel
              and
               Assistant
              Secretary

    

     

     

    [First
      Amendment to Master Agreement]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    Exhibit
      B

     

    Terms
      of
      Loan

     

    1. Commitment:
      During
      the term of the Reinsurance Agreement, any renewals thereof, and any periods
      thereafter in which Maiden Insurance remains liable to AII for Covered Business,
      Maiden Insurance shall make advances under the Loan to AII with respect to
      each
      AmTrust Ceding Insurer which AII is obligated to secure in an amount equal
      to
      its proportionate share of collateral for AII’s Obligations (as defined in the
      Reinsurance Agreement) to the AmTrust Ceding Insurer, unless in accordance
      with
      the Reinsurance Agreement, Maiden Insurance elects to fund or provide for
      collateral other than through advances under the Loan; provided however that
      Maiden Insurance shall not be required to make an advance under the Loan if
      and
      to the extent that AII shall have failed to perform its obligations to Maiden
      Insurance (including its payment obligations) under Article XXIII of the
      Reinsurance Agreement after expiration of any applicable cure period.

    

    2. Use
      of
      Proceeds:
      AII
      agrees to deposit Loan proceeds in Trust Accounts (as defined in the Reinsurance
      Agreement) established or to be established for each such AmTrust Ceding Insurer
      on the same terms as apply to the Trust Account with respect to Reinsurer Trust
      Assets (as defined in the Reinsurance Agreement). 

    

    3. Interest:
      An
      amount equal to the actual amount of dividends, interest and other income earned
      on the portion of the Loan proceeds with respect to an AmTrust Ceding Insurer
      deposited in the Trust Accounts and, to the extent so transferred, Loan proceeds
      held by an AmTrust Ceding Insurer in a segregated account as described in
      Sections C(5)(d) or D(4) of Article XXIII of the Reinsurance Agreement. To
      the
      extent that the sum of principal amount of such proceeds (including the
      undistributed earnings and interest thereon) and the Aggregate Collateral Value
      (as defined in the Reinsurance Agreement) with respect to such AmTrust Ceding
      Insurer exceeds the Reinsurer’s proportionate share of the Obligations to such
      AmTrust Ceding Insurer, such earnings and interest will be paid quarterly,
      less
      any amounts due and payable (i) by Maiden Insurance under the Reinsurance
      Agreement or the Asset Management Agreement (as defined in the Reinsurance
      Agreement) or (ii) to any Trustee (as defined in the Reinsurance Agreement
      with
      respect to loan proceeds deposited into a Trust Account. AII agrees that all
      Loan proceeds, including those deposited into a Trust Account or held in a
      segregated account, as described above, will be managed for AII by AII Insurance
      Management, Ltd. (“AIM”) in accordance the terms of and pursuant to the Asset
      Management Agreement dated July 3, 2007 entered into by Maiden Insurance and
      AIM
      (the “Asset Management Agreement”) and invested in accordance with the
      investment guidelines established pursuant to the Asset Management Agreement.
      AII and Maiden Insurance agree that, pursuant to the Loan, AIM will acknowledge
      and agree to such management of the Loan proceeds.

    

    4. Maturity:
      Each
      Loan advance shall mature on the earliest to occur of (i) ten (10) years
      following the date such advance was made with respect to an AmTrust Ceding
      Insurer, (ii) there are no further Obligations due to such AmTrust Ceding
      Insurer or (iii) AII is no longer required to secure such Obligations.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    5. Prepayments:
      If, as
      of the end of a calendar quarter, the sum of the Aggregate Collateral Value
      and
      the outstanding advances under the Loan, in each case with respect to an AmTrust
      Ceding Insurer, shall exceed Maiden Insurance’s proportionate share of the
      Obligations to such AmTrust Ceding Insurer, the advances under the Loan with
      respect to such AmTrust Ceding Insurer shall be prepaid in an amount equal
      to
      the lesser of the amount of such advances or such excess within 60 days
      following the end of such quarter, less, in either case, any amounts due and
      payable by Maiden Insurance under the Reinsurance Agreement.

    

    6. Frequency
      of Advances.
      AII
      shall be entitled to request advances under the Loan quarterly. An advances
      shall be made within 10 days of each such request. 

    

    7. Automatic
      Reduction in Principal:
      If an
      AmTrust Ceding Insurer withdraws Loan proceeds from a Trust Account with respect
      to an AmTrust Ceding Insurer into which Loan advances with respect to such
      AmTrust Ceding Insurer have been deposited, or from the segregated account
      described in Section C(5)(d) or D(4) of Article XXIII of the Reinsurance
      Agreement, funded by withdrawals from such a Trust Account, for the purpose
      of
      reimbursing such AmTrust Ceding Insurer for Ultimate Net Loss not received
      from
      AII or for unearned premiums due to such AmTrust Ceding Insurer but not
      otherwise paid by AII, the outstanding principal amount of the Loan and the
      advances with respect to such AmTrust Ceding Insurer automatically shall be
      reduced by the amount of such withdrawal and, as of the date the AmTrust Ceding
      Insurer applies such amount for such purposes, interest shall no longer be
      due
      on the amount of the reduction in principal.

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

     

    EXHIBIT
      C

    

    Schedule
      of Excess Reinsurance

    

    
      	
              1.

            	 	
              AmTrust
                Group Workers’ Compensation Excess of Loss Reinsurance
                Agreement

            
	 	 	
              Reinsurer:

            	 	
              Midwest
                Employers Casualty Company

            
	 	 	
              Term:

            	 	
              January
                1, 2006 - January 1, 2008

            
	 	 	
              Retention
                and Limit:

            	 	
              9
                million xs 1 million

            
	 	 	
              ECO/EPL:

            	 	
              100%
                (Subject to Retention and Limit)

            
	 	 	
              Intermediary:

            	 	
              Aon
                Re Inc.

            
	 	 	 	 	 
	
              2.

            	 	
              First
                Workers’ Compensation Catastrophe Excess of Loss Reinsurance
                Contract

            
	 	 	
              Reinsurer:

            	 	
              Various

            
	 	 	
              Term:

            	 	
              May
                1, 2007 to May 1, 2008

            
	 	 	
              Retention
                and Limit:

            	 	
              30
                million xs 20 million

            
	 	 	
              ECO/EPL:

            	 	
              90%
                (Subject to Retention and Limit)

            
	 	 	
              Intermediary:

            	 	
              Willis
                Re Inc.

            
	 	 	 	 	 
	
              3.

            	 	
              Second
                Workers’ Compensation Catastrophe Excess of Loss Reinsurance
                Contract

            
	 	 	
              Reinsurer:

            	 	
              Various

            
	 	 	
              Term:

            	 	
              May
                1, 2007 to May 1, 2008

            
	 	 	
              Retention
                and Limit:

            	 	
              30
                million xs 50 million

            
	 	 	
              ECO/EPL:

            	 	
              90%
                (Subject to Retention and Limit)

            
	 	 	
              Intermediary:

            	 	
              Willis
                Re Inc.

            
	 	 	 	 	 
	
              4.

            	 	
              Third
                Workers’ Compensation Catastrophe Excess of Loss Reinsurance
                Contract

            
	 	 	
              Reinsurer:

            	 	
              Various

            
	 	 	
              Term:

            	 	
              May
                1, 2007 to May 1, 2008

            
	 	 	
              Retention
                and Limit:

            	 	
              50
                million xs 80 million

            
	 	 	
              ECO/EPL:

            	 	
              90%
                (Subject to Retention and Limit)

            
	 	 	
              Intermediary:

            	 	
              Willis
                Re Inc.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]