Document:

Exhibit
      10.1

    

    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/
              Stephen Ungar        
	 	
              Name:

            	
              
                

              

               Stephen
                Ungar

            
	 	Title: 	 Secretary
	 	 	
               

               

            

    

    
      
        	 	 	 
	 	MAIDEN
                HOLDINGS,
                LTD.
	 
 	 
 	 
 
	
              	By:  	 /s/
                Bentzion Turin
	 	
                Name:

              	
                
                  

                

                 Bentzion Turin 

              
	 	Title: 	 Chief
                Operating Officer
	 	 	
                
                   

                   

                

              
	 	
              

      

      
         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

      

    

    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.Exhibit
        10.2

    

     

     

    QUOTA
      SHARE REINSURANCE AGREEMENT

     

    BETWEEN

     

    AMTRUST
      INTERNATIONAL INSURANCE, LTD

    HAMILTON,
      BERMUDA

     

    (hereinafter
      referred to as the “Company”)

     

    AND

     

    MAIDEN
      INSURANCE COMPANY, LTD

    HAMILTON,
      BERMUDA

     

    (hereinafter
      referred to as the “Reinsurer”)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      I
-
      BUSINESS REINSURED

     

    
      	
              A.

            	
              The
                Reinsurer, subject to the terms and conditions hereunder and the
                exclusions set forth herein, agrees to indemnify the Company, as
                specified
                in Article V below, for its Ultimate Net Loss which accrues during
                the
                term of this Agreement under any and all binders, policies, or contracts
                of insurance issued by Affiliates (including as a member or reinsurer
                of
                any assigned risk or similar plans) and reinsured by the Company
                (individually, a “Policy” and, collectively, “Policies”) pursuant to an
                Underlying Reinsurance Agreement to the extent covering the lines
                of
                insurance specified in Schedule
                A
                hereto, but not including any Ultimate Net Loss with respect to any
                risk
                under any Policy if the applicable ceding Affiliate’s retention with
                respect to such risk shall be greater than $5,000,000) (all hereinafter
                referred to as “Covered Business”).

            

    

     

    
      	
              B.

            	
              The
                Company hereby agrees that, if it reinsures binders, policies, or
                contracts of insurance issued by Affiliates that cover lines of insurance
                other than those specified in Schedule A hereto (“Additional Business”),
                it shall offer to the Reinsurer the opportunity to reinsure, on a
                retrocession basis, all such Additional Business pursuant to this
                Agreement. If
                the Reinsurer elects in its sole discretion to so reinsure any Additional
                Business, such Additional Business shall be considered “Covered Business”
                for all purposes, and shall be subject to all of the terms and conditions,
                of this Agreement, other than (a) the date and time as of which the
                reinsurance of such Additional Business shall be effective for purposes
                of
                this Agreement and (b) the ceding commission allowed in respect of
                such
                Additional Business, which terms and conditions described in clauses
                (a)
                and (b) shall be mutually agreed upon by the Reinsurer and the
                Company.

            

    

     

    ARTICLE
      II -
      COMMENCEMENT

     

    This
      Agreement shall commence effective as of 12:01 a.m., Eastern Standard Time,
      July
      1, 2007 (the “Effective Time”) and shall remain in force thereafter, subject to
      the terms and conditions for termination stipulated in Article XXI - TERM AND
      TERMINATION.

     

    ARTICLE
      III -
      TERRITORY

     

    This
      Agreement shall follow the territorial limits of the Covered
      Business.

     

    ARTICLE
      IV -
      DEFINITIONS

     

    
      	
              A.

            	
              “Affiliate”
                means Rochdale, Wesco, Technology, IGI, AIU, Associated Industries
                Insurance Company (“AIIC”) and each other insurance company more than
                fifty percent (50%) of the voting securities of which are directly
                or
                indirectly controlled by AmTrust Financial Services, Inc. (“AmTrust”), for
                so long as AmTrust continues to so directly or indirectly control
                such
                entity. 

            

    

     

    
      	
              B.

            	
              “Affiliate
                Subject Premium” means, for each Affiliate, the gross written premium, as
                defined in the subject Underlying Reinsurance Agreement, charged
                by such
                Affiliate for Covered Business, less the cost of inuring reinsurance
                (and,
                in the case of IGI, less commissions paid by IGI in respect of Policies
                issued by IGI), but without deduction for any Federal Excise Tax
                payable
                by such Affiliate as a result reinsuring Subject Business to the
                Company.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              C.

            	
              “Extra
                Contractual Obligations” means any punitive, exemplary, compensatory or
                consequential damages, other than Loss in Excess of Policy Limits,
                paid or
                payable by the Company as a result of an action against it, or, to
                the
                extent reinsured pursuant to an Underlying Reinsurance Agreement,
                against
                an Affiliate, by an Affiliate's insured, an assignee of an Affiliate's
                insured or a third party claimant, by reason of alleged or actual
                negligence, fraud or bad faith on the part of the Company or any
                Affiliate
                in handling a claim under a Policy (whether or not paid) subject
                to this
                Agreement, but in each case excluding fraudulent or criminal acts
                by a
                director or executive officer of the Company or an Affiliate or criminal
                acts by the Company or an Affiliate.

            

    

     

    
      	
              D.

            	
              “Loss
                Adjustment Expenses” means court costs, post-judgment interest, and
                allocated investigation, adjustment and legal expenses of the Company
                related to and charged to a specific claim file, but shall not include
                general overhead expenses of the Company or salaries, per diem and
                other
                remuneration of the Company’s employees.

            

    

     

    
      	
              E.

            	
              “Loss
                in Excess of Policy Limits” means an amount that the Company would have
                been contractually obligated to pay had it not been for the limit
                of the
                original Policy, as a result of an action against it, or, to the
                extent
                reinsured pursuant to an Underlying Reinsurance Agreement, against
                an
                Affiliate, by an Affiliate's insured, an assignee of an Affiliate's
                insured or a third party claimant, by reason of alleged or actual
                negligence, fraud or bad faith in rejecting an offer of settlement
                or in
                the preparation of the defense or in trial of any action against
                its
                insured or in the preparation or prosecution of an appeal consequent
                upon
                such action, but in each case excluding fraudulent or criminal acts
                by a
                director or executive officer of the Company or an Affiliate or criminal
                acts by the Company or an Affiliate.

            

    

     

    
      	
              F.

            	
              "Net
                Loss Ratio" means, for any period, the ratio of (a) Ultimate Net
                Loss
                ceded to the Reinsurer plus the Reinsurer’s quota share of ceded reserves
                for Ultimate Net Loss (including losses incurred but not reported)
                during
                such period, to (b) the Subject Premiums earned during such
                period.

            

    

     

    
      	
              G.

            	
              “Subject
                Premium” means, for each Affiliate, the percentage of the premium ceded to
                the Company under the Underlying Reinsurance Agreement to which such
                Affiliate is a party equal to forty percent (40%) of the Affiliate
                Subject
                Premium, in respect of Covered Business in accordance with the terms
                of
                the Underlying Reinsurance Agreements, to the extent the Affiliates
                shall
                have collected such premiums, and whether or not such Affiliates
                shall
                have remitted such premiums to the
                Company.

            

    

     

    
      	
              H.

            	
              “Ultimate
                Net Loss” means the sum actually paid or to be paid by the Company to
                Affiliates in settlement of losses for which the Company is liable
                in
                accordance with the terms of an Underlying Reinsurance Agreement,
                after
                making deductions for all inuring reinsurance (whether inuring to
                the
                benefit of the Company or to an Affiliate), whether or not collectible
                by
                an Affiliate or by the Company, and all Recoveries, and shall include
                payments to Affiliates for Loss Adjustment Expenses, Extra Contractual
                Obligations and Loss in Excess of Policy Limits (subject to the
                limitations specified in Article XXII
                hereof).

            

    

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    
      	
              I.

            	
              "Underlying
                Reinsurance Agreement" means each of (a) that certain AmTrust Intercompany
                Reinsurance Agreement, effective June 1, 2006, by and among Technology
                Insurance Company, Inc. ("Technology"), Rochdale Insurance Company
                ("Rochdale"), Wesco Insurance Company ("Wesco") and the Company,
                (b) that
                certain 70% Whole Account Quota Share Reinsurance Agreement, effective
                as
                of July 1, 2006, by and between IGI Insurance Company Limited ("IGI")
                and
                the Company, (c) that certain Quota Share Reinsurance Agreement,
                effective
                as of May 1, 2007, by and between AmTrust International Underwriters,
                Ltd.
                ("AIU") and the Company, and (d) any other reinsurance agreement
                entered
                into from time to time after the date hereof by and between an Affiliate,
                as ceding company, including without limitation AIIC, and the Company,
                as
                reinsurer. 

            

    

     

    ARTICLE
      V
-
      LIABILITY OF THE REINSURER

     

    
      	
              A.

            	
              Commencing
                as of the Effective Time, the Company hereby agrees to cede to the
                Reinsurer, and the Reinsurer agrees to accept and reinsure, the Ultimate
                Net Loss of the Company equal to forty percent (40%) of the Affiliate
                Ultimate Net Loss with respect to Covered Business ceded to the Company
                by
                each Affiliate, subject to all other terms and conditions set forth
                in
                this Agreement; provided,
                however,
                that the Reinsurer's maximum liability hereunder in respect of a
                single
                loss under a Policy reinsured hereunder (without taking into account
                any
                Loss Adjustment Expenses, Extra Contractual Obligations or Loss in
                Excess
                of Policy Limits attributable thereto) shall not exceed $2,000,000.
                For
                purposes of this Agreement, "Affiliate Ultimate Net Loss" means the
                sum
                actually paid or to be paid by such Affiliate in settlement of losses
                for
                which it is liable in respect of the Covered Business, after making
                deductions for all inuring reinsurance (other than reinsurance with
                any
                direct or indirect subsidiary of AmTrust), whether collectible or
                not, and
                all Recoveries. Without limiting the generality of the foregoing,
                the
                Reinsurer shall be liable for its proportionate share of any
                experience-related premium rebates or credits to policyholders under
                Policies of workers compensation insurance, and shall benefit
                proportionately to the extent any such policyholder pays any additional
                premiums as a result of the experience under such
                Policies.

            

    

     

    
      	
              B.

            	
              If
                an Affiliate Change in Control or Affiliate Run-Off Event occurs
                with
                respect to any Affiliate, the Reinsurer shall be entitled to elect
                not to
                reinsure Covered Business related to Policies issued or renewed by
                such
                Affiliate (“Applicable Covered Business”) effective as of such Affiliate
                Change in Control or Affiliate Run-Off Event (the “Election Effective
                Date”). Such election shall be in writing (an “Affiliate Run-Off Notice”),
                and shall be given not later than thirty (30) days following the
                date on
                which the Reinsurer has actual knowledge that the Affiliate Change
                in
                Control or the Affiliate Run-Off event (as applicable) shall have
                occurred. Subject to the immediately following sentence, if the Reinsurer
                makes such an election, all reinsurance hereunder of Applicable Covered
                Business that is in force as of the Election Effective Date shall
                remain
                in full force and effect until the applicable expiration date, anniversary
                date, or prior termination date of the Policies attributable to the
                Applicable Covered Business (the “Run-Off Policies”). The Company shall be
                entitled to notify the Reinsurer, within thirty (30) days following
                 delivery to it of the Affiliate Run-Off Notice, that the Reinsurer
                shall
                not be liable for any Ultimate Net Loss arising out of the Run-Off
                Policies to the extent such Ultimate Net Loss occurs, accrues or
                arises on
                or after the Election Effective Date and, if the Company makes such
                election, the Reinsurer shall, within thirty (30) days following
                the date
                of such election, return to the Company the unearned premium attributable
                to the Run-Off Policies in force as of the Election Effective Date,
                less
                the unearned portion of the ceding commission paid thereon.
                

            

    

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    
      	
              C.

            	
              For
                purposes of this Agreement:

            

    

     

    
      	
            	1.	
              an
                “Affiliate Change of Control” will be deemed to occur with respect to an
                Affiliate when either (a) an individual person, corporation or other
                entity, or a group of commonly controlled persons, corporations or
                entities, acquires, including through merger, directly or indirectly,
                more
                than fifty percent (50%) of the voting securities of such Affiliate
                or
                obtains the power to vote (directly or through proxies) more than
                fifty
                percent (50%) of the voting securities of such Affiliate, except
                if such
                individual person, corporation or other entity is under common control
                with the Affiliate, or (b) AmTrust no longer directly or indirectly
                controls the power to vote more than fifty percent (50%) of the voting
                securities of such Affiliate; provided
                that in no event shall the acquisition, including through merger,
                of more
                than fifty percent (50%) of the voting securities of AmTrust or of
                the
                power to vote (directly or through proxies) more than fifty percent
                (50%)
                of the voting securities of AmTrust, or the merger, combination or
                amalgamation of AmTrust into any person, or similar transaction pursuant
                to which AmTrust shall not be the surviving entity, be deemed a "Affiliate
                Change of Control". 

            

    

     

    
      	
            	2.	
              An
                “Affiliate Run-off Event” shall be deemed to have occurred as to an
                Affiliate if:

            

    

     

    (a) such
      Affiliate ceases writing new or renewal business and elects to run off its
      existing business or an insurance or other regulatory authority orders such
      party to cease writing new or renewal business; or

     

    (b) such
      Affiliate becomes insolvent, or has been placed into liquidation or receivership
      (whether voluntary or involuntary), or there 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; or

     

    
      	
              D.

            	
              No
                more frequently than quarterly the Company shall, and shall cause
                each
                ceding Affiliate under an Underlying Reinsurance Agreement to, provide
                to
                the Reinsurer and its representatives reasonable access, on reasonable
                advance notice and during business hours, to its claims files with
                respect
                to Covered Business. The Reinsurer shall have the right, but not
                the
                obligation, to consult with the Company and such Affiliate regarding
                the
                handling of any disputed or contested
                claim.

            

    

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VI -
      PREMIUM
      AND CEDING COMMISSION

     

    
      	
              A.

            	
              As
                consideration for entering into this Agreement, the Company shall
                transfer
                to the Reinsurer, not later than October 30, 2007, the portion of
                premium
                attributable to Covered Business ceded to the Company by each Affiliate
                equal to the Subject Premium that is unearned as of the Effective
                Time
                (the "Initial Premium"). The Reinsurer shall be entitled to verify
                the
                accuracy of the amount of Initial Premium so transferred and shall
                be
                entitled to dispute such amount if it has reason to believe in good
                faith
                that the Company improperly or inaccurately calculated such
                amount.

            

    

     

    
      	
              B.

            	
              Subject
                to and in accordance with the terms of Article VII, in addition to
                the
                payment of the Initial Premium, during the term of this Agreement,
                the
                Company shall cede to the Reinsurer the Subject Premium. .
                

            

    

     

    
      	
              C.

            	
              The
                Reinsurer shall allow the Company a 31% commission on all Subject
                Premium
                ceded hereunder until July 1, 2008 and attributable to Covered Business.
                Thereafter, during the remaining term of this Agreement, the commission
                may be adjusted on each January 1 and July 1 (each an “Adjustment Date”)
                based on the Net Loss Ratio, calculated during the period from the
                Effective Time through the date that is six months prior to the applicable
                Adjustment Date, of the Covered Business as follows: (a) the ceding
                commission shall increase 0.5% for every 1.0% decline in the Net
                Loss
                Ratio below 60% up to a maximum ceding commission of 32%, and (b)
                the
                ceding commission shall decrease 0.5% for every 1.0% increase in
                the Net
                Loss Ratio above 60%, subject to a minimum ceding commission of 30%.
                The
                Company and the Reinsurer acknowledge and agree that the commission
                payable hereunder shall be subject to appropriate adjustments if
                Additional Business is reinsured hereunder as described in Section
                B of
                Article I hereof. The Company shall allow the Reinsurer return commission
                on return premiums at the rate in effect when the return premiums
                were
                originally ceded to the Reinsurer. It is expressly agreed that the
                ceding
                commission allowed the Company includes provision for all commissions,
                taxes, assessments (other than assessments based on losses of an
                Affiliate, as a ceding company under an Underlying Reinsurance Agreement)
                and all other expenses of whatever nature of the Company and Affiliates,
                except loss adjustment expense. 

            

    

     

    ARTICLE
      VII -
      ACCOUNTS, REPORTS AND REMITTANCES

     

    Within
      thirty (30) days following the end of each calendar quarter, the Company shall
      report to the Reinsurer:

     

    
      	
              A.

            	
              Affiliate
                Subject Premium, by Affiliate and by line of Covered Business, for
                the
                quarter

            

    

     

    
      	
              B.

            	
              Ceded
                Subject Premium, by Affiliate and by line of Covered Business, for
                the
                quarter;

            

    

     

    
      	
              C.

            	
              Ceding
                commission thereon;

            

    

     

    
      	
              D.

            	
              Ceded
                Ultimate Net Loss in respect of Covered Business, by Affiliate and
                by line
                of Covered Business, as of the end of the quarter;
                

            

    

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    
      	
              E.

            	
              Reinsurer’s
                share of Recoveries made by Company during the quarter, as determined
                in
                accordance with Article VIII hereof;
                and

            

    

     

    
      	
              F.

            	
              The
                balance due to or from the Reinsurer as determined by subtracting
                the sum
                of (C) and (D) from the sum of (B) and
                (E).

            

    

     

    The
      Company shall provide, and shall cause all Affiliates to provide, to the
      Reinsurer all information respecting premiums and losses, including reserves,
      as
      reasonably requested by the Reinsurer, including without limitation such
      information as is reasonably necessary to enable the Reinsurer to maintain
      and
      adjust the balance of the collateral to be provided pursuant to the terms of
      Article XXIII of this Agreement. 

     

    If
      the
      amount calculated pursuant to paragraph F above is negative, the Reinsurer
      shall
      remit to the Company the absolute value of such amount within fifteen (15)
      days
      following the Company’s submission of the quarterly report to the Reinsurer. If
      the amount calculated pursuant to paragraph F above is positive, the Company
      shall remit such amount to the Reinsurer simultaneously with the Company’s
      submission of the quarterly report to the Reinsurer.

     

    ARTICLE
      VIII -
      RECOVERIES

     

    The
      Company shall pay to or credit the Reinsurer with the Reinsurer’s portion of any
      recovery connected with an Ultimate Net Loss obtained from salvage, subrogation
      or other insurance (collectively, "Recoveries"), and such amount shall be paid
      or credited to the Reinsurer when obtained irrespective of the termination
      of
      this Agreement. Expenses allocated to the Company by Affiliates in connection
      with obtaining Recoveries shall be apportioned between the Company and the
      Reinsurer in the proportion that the benefit to each party from such Recoveries
      bears to the total amount of the Recovery.

     

    ARTICLE
      IX -
      OFFSET

     

    The
      Company or the Reinsurer may offset any balance, whether on account of premium,
      commission, claims or losses, Loss Adjustment Expenses, Recoveries or any other
      amount due from one such party to the other such party under this Agreement.
      The
      right of offset shall not be affected by the insolvency of the Company or the
      Reinsurer.

     

    ARTICLE
      X
-PREMIUM
      TAXES

     

    The
      Company shall be liable for all taxes on premiums paid to it with respect to
      the
      business reinsured pursuant to the Agreement. 

     

    ARTICLE
      XI -
      EXCISE
      TAXES

     

    The
      Company shall be liable for the U.S. federal insurance excise tax ("FET") (as
      imposed under section 4371 of the Internal Revenue Code) to the extent premium
      paid by it to the Reinsurer under this Agreement is subject to the FET. The
      Company acknowledges and agrees that the net amount of Subject Premium due
      to
      the Reinsurer hereunder (being the Reinsurer’s proportionate share of Subject
      Premium less the ceding commission described in Article VI hereof) shall not
      be
      reduced as a result of or in order to pay such Federal Excise Tax, if
      any.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      XII -
      ERRORS
      AND OMISSIONS

     

    The
      Reinsurer shall not be relieved of liability because of an error or accidental
      omission by the Company in reporting any claim, loss, or any business reinsured
      under this agreement, provided that the error or omission is rectified promptly
      after discovery. The Reinsurer shall be obligated only for the return of the
      premium paid for business reported but not reinsured under this
      Agreement.

     

    ARTICLE
      XIII -
      AMENDMENTS

     

    The
      terms
      and conditions contained in this Agreement may be changed, altered or amended
      as
      the parties may agree, provided such change, alteration or amendment is
      evidenced by Addendum to this Agreement executed by the Company and the
      Reinsurer.

     

    ARTICLE
      XIV -
      ACCESS
      TO RECORDS

     

    The
      Company shall comply with the Reinsurer’s reasonable request for any information
      relating to this Agreement. Additionally, the Reinsurer, or its authorised
      representatives, shall have the right to inspect at any reasonable time at
      the
      offices of the Company and the Affiliates (or that of service providers), and
      shall be permitted to make and retain copies of, all papers, books, accounts,
      documents, claims files and other records of the Company and the Affiliates
      relating to this Agreement, and in connection therewith the Company shall make
      available to the Reinsurer responsible representatives of the Company and the
      Affiliates upon reasonable prior notice. The Reinsurer’s right of inspection
      shall continue to exist after the termination of this Agreement.

     

    ARTICLE
      XV -
      INTENTIONALLY OMITTED

     

    ARTICLE
      XVI -
      ARBITRATION

     

    
      	
              A.

            	
              As
                a condition precedent to any right of action hereunder, any dispute
                arising out of the interpretation, performance or breach of this
                Agreement, including the formation or validity thereof (each, a
                "Dispute"), shall be submitted for decision to a panel of three
                arbitrators. Notice requesting arbitration shall be in writing and
                sent
                certified or registered mail, return receipt
                requested.

            

    

     

    
      	
              B.

            	
              Each
                party shall choose one arbitrator and the two arbitrators shall,
                before
                instituting the hearing, choose an impartial third arbitrator who
                shall
                preside at the hearing. If either party fails to appoint its arbitrator
                within thirty (30) days after being requested to do so by the other
                party,
                which request shall be made by certified or registered mail, the
                latter
                may appoint the second arbitrator and then notify the other party
                by
                certified or registered mail of its
                appointment.

            

    

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    
      	
              C.

            	
              If
                the first two arbitrators are unable to agree upon the third arbitrator
                within thirty (30) days of their appointment, each arbitrator shall
                name
                three candidates within ten days thereafter, two of whom shall be
                declined
                by the other arbitrator within fifteen days after receiving their
                names,
                and within five days the choice shall be made between the two remaining
                candidates by drawing lots. All arbitrators shall be disinterested
                active
                or former executive officers of insurance or reinsurance companies
                or
                Underwriters at Lloyd’s.

            

    

     

    
      	
              D.

            	
              Within
                thirty (30) days after notice of appointment of all arbitrators,
                the panel
                shall meet and determine timely periods for briefs, discovery procedures
                and schedules for hearings. The panel shall be relieved of all judicial
                formality and shall not be bound by the strict rules of procedure
                and
                evidence. Unless the panel agrees otherwise, arbitration shall take
                place
                in New York, New York, but the venue may be changed when deemed by
                the
                panel to be in the best interest of the arbitration proceeding. Insofar
                as
                the arbitration panel looks to substantive law, it shall consider
                the law
                of the New York. The decision of any two arbitrators when rendered
                in
                writing shall be final and binding. The panel is empowered to grant
                interim relief as it may deem
                appropriate.

            

    

     

    
      	
              E.

            	
              The
                panel shall make its decision considering the custom and practice
                of the
                applicable insurance and reinsurance business as promptly as possible
                following the termination of hearings. Judgment upon the award may
                be
                entered in any court having jurisdiction thereof. Except
                as provided above, arbitration shall be based, insofar as applicable,
                upon
                the then most current version of the Procedures for the Resolution
                of U.S.
                Insurance and Reinsurance Disputes provided by ARIAS
                US.

            

    

     

    
      	
              F.

            	
              Each
                party shall bear the expense of its own arbitrator and shall jointly
                and
                equally bear with the other party the cost of the third arbitrator.
                In the
                event that both arbitrators are chosen by one party, the fees of
                all
                arbitrators shall be equally divided between the parties. The panel
                shall
                allocate the remaining costs of the arbitration.
                

            

    

     

    ARTICLE
      XVII -
      APPLICABLE LAW

     

    This
      Agreement shall be governed by the laws of the State of New York, without regard
      to any conflicts of law principles thereof that would call for the application
      of the laws of any other jurisdiction.

     

    ARTICLE
      XVIII -
      NO
      THIRD-PARTY BENEFICIARIES 

     

    
      
        The
          acceptance of risks under this Agreement will create no right or legal
          relation
          between the Reinsurer and any third party or person having an interest
          of any
          kind in the Policies or the Underlying Reinsurance Agreements retroceded
          under
          this Agreement, including without limitation any
          Affiliate.

      

    

     

    ARTICLE
      XIX -
      FOLLOW
      THE FORTUNES

     

    The
      Reinsurer’s liability shall attach simultaneously to that of the Company and all
      reinsurance for which the Reinsurer shall be liable by virtue of this Agreement
      shall be subject in all respects to the same risks, terms, rates, conditions,
      interpretations, assessments, waivers, and the same modifications, alterations
      and cancellations, as the Policies to which this Agreement relates.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      XX -
      CURRENCY

     

    All
      premium and loss payments hereunder shall be in the currency designated in
      the
      applicable Underlying Reinsurance Agreement.

     

    ARTICLE
      XXI -
      TERM
      AND TERMINATION

     

    
      	
              A.

            	
              This
                Agreement shall remain in effect until three years following the
                Effective
                Time, and shall automatically renew for successive three-year periods
                thereafter, unless the Reinsurer or Company elects to terminate this
                Agreement effective as of the expiration of any such three-year period.
                If
                the Reinsurer or Company elects to so terminate this Agreement, it
                shall
                give written notice to the other party hereto not less than nine
                months
                prior to the expiration of any such three-year period.
                

            

    

     

    
      	
              B.

            	
              Notwithstanding
                the provisions of Section A of this Article XXI, the Reinsurer may
                terminate this Agreement in the event of any of the following (clauses
                1
                through 5 below, collectively, the “Company Termination Events”) by
                written notice to the Company no later than thirty (30) days (or
                in the
                case of a Company Termination Event described in subsection B(1)
                below,
                ten (10) days) following actual knowledge of the applicable Company
                Termination Event by the Reinsurer:

            

    

     

    1. the
      Company is thirty (30) or more days in arrears on payment due to the Reinsurer
      under this Agreement, and has not cured such breach within thirty (30) days
      following written notice thereof from the Reinsurer (unless the amount not
      so
      paid is the subject of a good faith dispute) (a “Company Payment
      Default”);

     

    2. the
      Company has ceased writing new or renewal business and has elected to run off
      its existing business or an insurance or other regulatory authority has ordered
      such party to cease writing new or renewal business;

     

    3. the
      Company has become insolvent, or has been placed into liquidation or
      receivership (whether voluntary or involuntary), or there 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;
      

     

    4. a
      Company
      Change of Control has occurred. For purposes of this Agreement, a “Company
      Change of Control” will be deemed to occur with respect to the Company when
      either (a) an individual person, corporation or other entity, or a group of
      commonly controlled persons, corporations or entities, acquires, including
      through merger, directly or indirectly, more than fifty percent (50%) of the
      voting securities of the Company or obtains the power to vote (directly or
      through proxies) more than fifty percent (50%) of the voting securities of
      the
      Company, except if such individual person, corporation or other entity is under
      common control with such Company, or (b) AmTrust no longer directly or
      indirectly controls the power to vote more than fifty percent (50%) of the
      voting securities of the Company; provided
      that in
      no event shall the acquisition, including through merger, of more than fifty
      percent (50%) of the voting securities of AmTrust or of the power to vote
      (directly or through proxies) more than fifty percent (50%) of the voting
      securities of AmTrust, or the merger, combination or amalgamation of AmTrust
      into any person, or similar transaction pursuant to which AmTrust shall not
      be
      the surviving entity, be deemed a "Company Change of Control"; or

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    5. the
      combined shareholders' equity of the Company and the Affiliates is reduced
      to
      50% or less of the amount of such shareholders’ equity at either the inception
      of this Agreement or at the latest renewal or anniversary date of this
      Agreement.

     

    Termination
      as a result of a Company Payment Default shall be effective upon not less than
      ten (10) days prior written notice from the Reinsurer to the Company, and
      termination as a result of any other Company Termination Event shall be
      effective upon not less than thirty (30) days prior written notice from the
      Reinsurer to the Company. For greater certainty, the Reinsurer may not terminate
      this Agreement as a result of a Company Termination Event unless such event
      is
      continuing on the date it delivers its notice of termination to the
      Company.

     

    
      	
              C.

            	
              Notwithstanding
                the provisions of Section A of this Article XXI, the Company may
                terminate
                this Agreement, in the event of any of the following (clauses 1 through
                6
                below, collectively, the “Reinsurer Termination Events”) by written notice
                to the Reinsurer no later than thirty (30) days (or in the case of
                a
                Reinsurer Termination Event described in subsection B(1) below, ten
                (10)
                days) following actual knowledge of the applicable Reinsurer Termination
                Event by the Company:

            

    

     

    1. the
      Reinsurer is thirty (30) or more days in arrears on payment due to the Company
      under this Agreement or its obligations under Article XXIII and the Reinsurer
      has not cured such breach within thirty (30) days following written notice
      thereof from the Company (unless the amount not so paid is the subject of a
      good
      faith dispute) (a “Reinsurer Payment Default”);

     

    2. the
      Reinsurer has ceased writing new or renewal business and has elected to run
      off
      its existing business or an insurance or other regulatory authority has ordered
      the party to cease writing new or renewal business;

     

    3. the
      Reinsurer has become insolvent, or has been placed into liquidation or
      receivership (whether voluntary or involuntary), or there 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;

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    4. a
      Reinsurer Change of Control has occurred. For purposes of this Agreement, a
      “Reinsurer Change of Control” will be deemed to occur when either (a) an
      individual person, corporation or other entity, or a group of commonly
      controlled persons, corporations or entities, acquires, including through
      merger, directly or indirectly, more than fifty percent (50%) of the voting
      securities of the Reinsurer or obtains the power to vote (directly or through
      proxies) more than fifty percent (50%) of the voting securities of the
      Reinsurer, except if such individual person, corporation or other entity is
      under common control with the Reinsurer or (b) Maiden Holdings, Ltd. no longer
      directly or indirectly controls the power to vote more than fifty percent (50%)
      of the voting securities of the Reinsurer; 

     

    5. the
      Reinsurer's shareholders' equity is reduced to 50% or less of the amount of
      its
      shareholders’ equity at either the inception of this Agreement or at the latest
      renewal or anniversary date of this Agreement; or

     

    6. the
      Reinsurer fails to maintain an A.M. Best rating of A- or better.

     

    Termination
      as a result of a Reinsurer Payment Default shall be effective upon not less
      than
      ten (10) days prior written notice from the Company to the Reinsurer, and
      termination as a result of any other Reinsurer Termination Event shall be
      effective upon not less than thirty (30) days prior written notice from the
      Company to the Reinsurer. For greater certainty, the Company may not terminate
      this Agreement as a result of a Reinsurer Termination Event unless such event
      is
      continuing on the date the applicable Company delivers its notice of termination
      to the Reinsurer.

     

    
      	
              D.

            	
              Following
                the effective date of the termination of this Agreement as described
                in
                Sections A, B or C of this Article XXI, all reinsurance hereunder
                of
                Covered Business shall remain in force until the expiration date,
                anniversary date, or prior termination date of all Policies included
                therein, unless, not later than thirty (30) days following such effective
                date of termination of this Agreement, the Company shall elect that
                the
                Reinsurer shall not be liable for any Ultimate Net Loss that occurs,
                accrues or arises on or after the effective date of termination.
                If the
                Company shall make such election, within thirty (30) days following
                the
                date of such election, the Reinsurer shall return to the Company
                the
                unearned premium applicable to such Policies in force at the time
                and date
                of termination, less the unearned portion of the ceding commission
                paid
                thereon. 

            

    

     

    ARTICLE
      XXII -
      EXTRA
      CONTRACTUAL OBLIGATIONS AND LOSS IN EXCESS OF POLICY LIMITS

     

    
      	
              A.

            	
              The
                Reinsurer shall indemnify the Company for the Reinsurer’s quota share
                portion of Extra-Contractual Obligations and Loss in Excess of Policy
                Limits. 

            

    

     

    
      	
              B.

            	
              The
                Reinsurer shall receive the benefit of its proportionate share of
                recoveries from any other form of insurance or reinsurance that protects
                the Company or any Affiliate against any loss or liability covered
                under
                this Article XVII, which shall be deducted from the total amount
                of any
                Extra-Contractual Obligation and/or Loss in Excess of Policy Limits
                in
                determining the amount of Extra-Contractual Obligation and/or Loss
                in
                Excess of Policy Limits that shall be indemnified under this Article
                XXII.

            

    

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    
      	
              C.

            	
              The
                Company shall be indemnified in accordance with this Article XXII
                to the
                extent that indemnification of the Company or subject Affiliate is
                permitted by applicable law.

            

    

     

    ARTICLE
      XXIII -
      UNAUTHORIZED REINSURANCE

     

    
      	
              A.

            	
              If
                the Company is unauthorized or otherwise unqualified in any state
                or other
                United States jurisdiction, and if, without security in a form acceptable
                to the insurance regulatory authorities having jurisdiction over
                an
                Affiliate, a financial penalty to such Affiliate, arising from the
                inability to make a reduction to liabilities for the reinsurance
                ceded to
                the Company or the recording of a liability for unauthorized
                reinsurance, would
                result on any statutory statement or report such Affiliate is required
                to
                make or file with such insurance regulatory authorities or a court
                of law
                in the event of insolvency, the Reinsurer will timely fund or provide
                for
                the Reinsurer’s share of security for the Obligations (as defined below)
                under the Underlying Reinsurance Agreement with such Affiliate
                by:

            

    

     

    1. lending
      assets to the Company on terms and conditions that shall be mutually acceptable
      to the Company and the Reinsurer (a “Loan”), provided, however, that the terms
      and conditions of the Loan shall be consistent with the terms and conditions
      set
      forth in Exhibit B to that certain First Amendment, dated as of September 17,
      2007, to the Master Agreement, dated as of July 3, 2007, by and between AmTrust
      and Maiden Holdings, Ltd.; 

     

    2. transferring
      to the Company assets (the "Reinsurer Trust Assets") for deposit into one or
      more trust accounts established or to be established by Company for the sole
      benefit of such Affiliate (each, a “Trust Account”) with a trustee (the
“Trustee”), which Trustee shall be at the time a Trust Account is established,
      and shall continue to be, a member of the Federal Reserve System and shall
      not
      be a parent, subsidiary or affiliate of the Reinsurer, Company or such
      Affiliate, pursuant to a trust agreement meeting the applicable requirements
      of
      the jurisdictions having regulatory authority over each applicable Affiliate
      (each a “Trust Agreement”); 

     

    3. delivering
      one or more clean, unconditional and irrevocable letters of credit to such
      Affiliate (each, a "Letter of Credit") in form and substance satisfying the
      requirements of the jurisdictions having regulatory authority over such
      Affiliate; and/or

     

    4. requesting
      that the Company cause such Affiliate to withhold Subject Premium in lieu of
      remitting Affiliate Subject Premium to the Company (the "Subject Withheld
      Funds", together with any other Affiliate Subject Premium that shall be withheld
      under an Underlying Reinsurance Agreement, the “Withheld Funds”) in accordance
      with the terms of the Underlying Reinsurance Agreement with such
      Affiliate.

     

    For
      the
      avoidance of doubt, the Reinsurer shall be permitted to elect any or a
      combination of the above forms of security, provided that the aggregate value
      of
      the security funded or provided by the Reinsurer equals the Reinsurer's
      proportionate share of the Obligations. The Company and the Reinsurer
      acknowledge and agree that, as of the date of execution of this Agreement,
      the
      Reinsurer intends to satisfy this obligation in the form of a Loan.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    
      	
              B.

            	
              The
                “Obligations” referred to herein means, as to each Affiliate, the then
                current (as of the end of each calendar quarter) sum
                of:

            

    

     

    1. The
      amount of ceded Ultimate Net Loss for which the Company is responsible to such
      Affiliate but has not yet paid;

     

    2. The
      amount of ceded reserves for Ultimate Net Loss (including without limitation
      ceded reserves for claims reported but not resolved and losses incurred but
      not
      reported) for which the Company is responsible to such Affiliate;
      and

     

    3. The
      amount of ceded reserves for unearned Affiliate Subject Premiums attributable
      to
      such Affiliate.

     

    
      	
              C.

            	
              With
                respect to the Trust Accounts, the following shall
                apply:

            

    

     

    1. The
      Reinsurer shall transfer Reinsurer Trust Assets to the Company, and the Company
      shall immediately upon receipt thereof transfer to the Trustee, for deposit
      into
      the applicable Trust Account, such Reinsurer Trust Assets, to be held in trust
      by the Trustee for the benefit of such Affiliate as security for the payment
      of
      the Reinsurer's proportionate share of the Obligations to such Affiliate. The
      Reinsurer Trust Assets shall be maintained in the Trust Account as long as
      the
      Reinsurer continues to remain liable for its proportionate share of such
      Obligations; provided however, that all Reinsurer Trust Assets shall be
      maintained in a sub-account of the Trust Account separate and apart from any
      other assets deposited therein by the Company. For each Trust Account in which
      Reinsurer Trust Asset shall be deposited, the Company shall authorize and direct
      the Trustee to timely provide to the Reinsurer all account statements and other
      notices to be delivered to the Company under the related Trust
      Agreement.

     

    2. The
      Reinsurer agrees that the Reinsurer Trust Assets shall be valued according
      to
      their current fair market value and shall consist only of currency of the United
      States of America, certificates of deposit issued by a United States bank and
      payable in United States legal tender, and investments of the types permitted
      by
      the insurance regulatory authorities with jurisdiction over the applicable
      Affiliate in regards to security provided with respect to the obligations of
      an
      unauthorized or unqualified reinsurer (“Authorized Investments”). The Company
      agrees that the Reinsurer Trust Assets will be managed for the Company 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 Reinsurer
      and
      AIM (the “Asset Management Agreement”) and, by executing this Agreement (solely
      for purposes of this Section C(2)), AIM acknowledges and agrees to the
      provisions of this Section C(2).

     

    3. The
      Reinsurer, prior to transferring the Reinsurer Trust Assets to the Company,
      shall execute all assignments and endorsements in blank, and shall transfer
      legal title to the Company of all shares, obligations or any other assets
      requiring assignments, in order to permit the Reinsurer to transfer to the
      Trustee such Reinsurer Trust Assets for deposit into the Trust
      Account.

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    4. All
      settlements of account between the Company and an Affiliate with respect to
      Reinsurer Trust Assets shall be made in cash or its equivalent.

     

    5. The
      Reinsurer acknowledges that the Reinsurer Trust Assets may be withdrawn by
      such
      Affiliate at any time, notwithstanding any provisions in the Underlying
      Reinsurance Agreement to which such Affiliate is a party, provided that such
      Affiliate has agreed in such Underlying Reinsurance Agreement that such
      withdrawn assets shall be applied and utilized by such Affiliate or any
      successor of such Affiliate by operation of law, including, without limitation,
      any liquidator, rehabilitator, receiver or conservator of such Affiliate,
      without diminution because of the insolvency of such Affiliate or the Company,
      only for the following purposes:

     

    
      	
            	(a)	
              to
                reimburse such Affiliate for the Company’s share of any Ultimate Net Loss
                paid by such Affiliate but not received from the Company or for unearned
                premiums due to such Affiliate but not otherwise paid by the Company
                with
                respect to the business reinsured hereunder;
                or

            

    

     

    
      	
            	(b)	
              to
                make payment to the Company of any amounts held in the Trust Accounts
                established for the benefit of such Affiliate that exceed 102% of
                the
                Company’s Obligations to such Affiliate (less the undrawn balance
                available under any Letter(s) of Credit for the benefit of such Affiliate
                and less the fair market value of the Withheld Funds of such Affiliate);
                or

            

    

     

    
      	
            	(c)	
              to
                pay any other amounts the Affiliate claims are due under the Underlying
                Reinsurance Agreement or

            

    

     

    
      	
            	(d)	
              where
                such Affiliate has received notification of termination of a Trust
                Account
                in which Reinsurer Trust Assets are held, and where the Obligations
                under
                the related Underlying Reinsurance Agreement remain unliquidated
                and
                undischarged ten (10) days prior to such termination, to withdraw
                amounts
                equal to such Obligations (less the undrawn balance available under
                any
                Letter(s) of Credit for the benefit of such Affiliate and less the
                fair
                market value of the Withheld Funds of such Affiliate) and deposit
                such
                amounts in a separate account, in the name of such Affiliate, in
                any
                United States bank or trust company, apart from its general assets,
                in
                trust for such uses and purposes specified in subparagraphs (a) and
                (b)
                above as may remain executory after such withdrawal and for any period
                after such termination.

            

    

     

    
      	
              D.

            	
              The
                Reinsurer acknowledges that any Letter(s) of Credit provided by it
                pursuant hereto for the benefit of an Affiliate may be drawn upon
                by such
                Affiliate at any time, notwithstanding any provisions in the Underlying
                Reinsurance Agreement to which such Affiliate is a party, provided
                that
                such Affiliate has agreed in such Underlying Reinsurance Agreement
                that
                any amounts drawn shall be applied and utilized by such Affiliate
                or any
                successor of such Affiliate by operation of law, including, without
                limitation, any liquidator, rehabilitator, receiver or conservator
                of such
                Affiliate, without diminution because of the insolvency of such Affiliate
                or the Company, only for the following
                purposes:

            

    

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    1. to
      pay or
      reimburse the Affiliate for the Company's share of any premiums returned to
      the
      owners of Policies on account of cancellations of such Policies;

     

    2. to
      pay or
      reimburse the Affiliate for the Company's share of Ultimate Net Loss paid or
      payable by the Affiliate under the terms and provisions of the
      Policies;

     

    3. to
      pay
      any other amounts the Affiliate claims are due under the Underlying Reinsurance
      Agreement; and

     

    4. to
      fund
      an account with the Affiliate in an amount at least equal to the deduction,
      for
      reinsurance ceded as to such Affiliate's Policies, for the uses and purposes
      described in clauses 1, 2 and 3 above. Such amount shall include, but not be
      limited to, amounts for policy reserves, reserves for claims and losses incurred
      (including losses incurred but not reported), loss adjustment expenses, and
      unearned premiums.

     

    
      	
              E.

            	
              With
                respect to assets to be returned to the Reinsurer, the following
                shall
                apply:

            

    

     

    1. The
      Company, at the written request of the Reinsurer, shall use commercially
      reasonable efforts to seek the applicable Affiliate’s approval to withdraw all
      or any part of the Reinsurer Trust Assets from the Trust Account established
      for
      the benefit of such Affiliate and shall transfer such assets to the Reinsurer,
      provided that the withdrawal conforms to the following
      requirements:

     

    
      	
            	(a)	
              the
                Reinsurer shall, at the time of any such withdrawal, deliver to the
                Company, for deposit by the Company into such Trust Account, other
                Authorized Investments having a market value equal to the market
                value of
                the assets withdrawn from such Trust Account,
                and

            

    

     

    
      	
            	(b)	
              after
                such withdrawal, transfer, and deposit into such Trust Account, the
                market
                value of assets in the Trust Accounts established for the benefit
                of such
                Affiliate is no less than 102% of the Obligations to such Affiliate
                (less
                the undrawn balance available under any Letter(s) of Credit for the
                benefit of such Affiliate and less the fair market value of the Withheld
                Funds of such Affiliate).

            

    

     

    2. The
      Company, at the request of the Reinsurer, shall use its best efforts to seek
      each Affiliate's approval to permit an amendment to, or to surrender and
      replace, a Letter of Credit, provided that, after such amendment or surrender
      and replacement, the remaining undrawn balance, if any, of such Letter of
      Credit, plus the fair market value of assets in Trust Accounts established
      for
      the benefit of such Affiliate, plus the fair market value of the Withheld Funds
      of such Affiliate, plus the undrawn balance of any other Letters of Credit
      for
      the benefit of such Affiliate, is not less 102% of the Obligations to such
      Affiliate.

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

     

    3. If
      an
      Affiliate returns to the Company excess assets withdrawn from the Trust Account
      established for such Affiliate, excess amounts drawn on a Letter of Credit,
      or
      an excess portion of the Withheld Funds, the Company shall immediately return
      to
      the Reinsurer its proportionate share of such excess assets.

     

    4. If,
      as of
      any date of determination, and with respect to any Affiliate, the sum of (w)
      the
      fair market value of the Reinsurer Trust Assets for the benefit of such
      Affiliate, (x) the undrawn balance of any Letters of Credit for the benefit
      of
      such Affiliate provided by the Reinsurer pursuant to Section A of this Article
      XXIII, (y) the fair market value of any separate account established by such
      Affiliate as described in Section C(5)(d) or D(4) of this Article XXIII, and
      (z)
      the Subject Withheld Funds of such Affiliate (the “Aggregate Collateral Value”),
      exceeds the Reinsurer’s share of the Obligations to such Affiliate (the excess
      Aggregate Collateral Value, the "Excess Collateral Value"), the Company shall,
      with respect to such excess collateral, at its option, undertake one or more
      of
      the following: 

     

    (a) a
      withdrawal of such Reinsurer Trust Assets and the payment of withdrawn Reinsurer
      Trust Assets to the Reinsurer pursuant to Section E(1) of this Article XXIII,
      

     

    (b) payment
      to the Reinsurer of an amount in cash;

     

    (c) payment
      to the Company by such Affiliate of Withheld Funds, and the payment to the
      Reinsurer of its proportionate share thereof; 

     

    (d) a
      payment
      to the Company by such Affiliate from any separate account or accounts
      established by such Affiliate as described in Sections C(5)(d) and D(4) of
      this
      Article XXIII, and the payment to the Reinsurer of its proportionate share
      thereof; and/or

     

    (e) the
      amendment or replacement of any of such Letters of Credit, with the consent
      of
      the Reinsurer, not to be unreasonably withheld, to reduce the undrawn balance
      of
      such Letters of Credit after giving effect to such amendment or
      replacement;

     

    provided
      that the
      aggregate amount of such payments to the Reinsurer pursuant to (a) through
      (d)
      above plus such reduction in the undrawn balance of the Letters of Credit
      pursuant to (e) above shall at least equal the Excess Collateral Value. The
      Aggregate Collateral Value and the Reinsurer’s share of the Obligations shall be
      calculated (separately as to each Affiliate) as of the last day of each calendar
      quarter during the term of this Agreement, and the Excess Collateral Value,
      if
      any, resulting from such calculations shall be remitted to the Reinsurer not
      later than the forty-fifth (45th)
      calendar day following the end of such calendar quarter.

     

    5. In
      the
      event that any Affiliate withdraws Reinsurer Trust Assets from a Trust Account,
      draws on a Letter of Credit and/or utilizes Subject Withheld Funds in excess
      of
      the Reinsurer’s proportionate share of the Obligations, in excess of the amount
      payable by the Reinsurer to the Company with respect to such Obligations, or
      other than for the purposes described in Sections C(5) and D of this Article
      XXIII, the Company shall reimburse Reinsurer immediately for the amount of
      the
      excess or the misapplied amount (as the case may be), taking into account any
      payments made by the Company to the Reinsurer pursuant to Section E(4) of this
      Article XXIII.

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

     

    6. If
      an
      Affiliate withdraws Reinsurer Trust Assets from a Trust Account, or draws on
      a
      Letter of Credit, and deposits such assets in a separate account as described
      in
      Sections C(5)(d) and D(4) of this Article XXIII, the Company shall pay to the
      Reinsurer, not later than 15 calendar days following the end of each calendar
      month during the term of this Agreement, an amount equal to all dividends,
      interest and other income earned on the assets held in such account during
      such
      month, except to the extent that such dividends, interest or other income relate
      to assets of the Reinsurer for which the Company has made payment to the
      Reinsurer pursuant to Paragraph 3 or 4 of this Article XXIII(E) and except
      to
      the extent that the Aggregate Collateral Value at such time is less than the
      Reinsurer’s share of the Obligations to such Affiliate; provided that any such
      payment shall be net of the Reinsurer’s proportionate share of fees of the
      Trustee with respect to Reinsurer Trust Assets and shall be reduced by the
      amount of any unpaid fees or expenses then due and payable under the Asset
      Management Agreement . 

     

    
      	
              F.

            	
              The
                Company, upon receipt and not less frequently than quarterly, will
                provide
                to the Reinsurer statements prepared by the Affiliates for the purpose
                of
                showing the Company’s Obligations in respect of each Affiliate and a
                statement prepared by Company showing the Reinsurer’s proportionate share
                thereof. If the Reinsurer’s share thereof exceeds the market value of the
                security provided by the Reinsurer to the Company for such Affiliate
                as
                required by in Section A of this Article XXIII, the Reinsurer will,
                within
                fifteen (15) days of receipt of the statements, provide additional
                security of such types with respect to the Reinsurer’s proportionate share
                of the Obligations to such
                Affiliate(s).

            

    

     

    
      	
              G.

            	
              If
                the Company is unauthorized or otherwise unqualified in any jurisdiction
                outside of the United States, and if, without security, a financial
                penalty to an Affiliate domiciled outside of the United States would
                result on any statutory statement or report it is required to make
                or file
                with the insurance regulatory authority having jurisdiction over
                such
                Affiliate or a court of law in the event of insolvency, the Reinsurer
                will
                timely secure the Reinsurer’s share of the Obligations in form and
                substance satisfying the requirements of the insurance regulatory
                authority having jurisdiction over such
                Affiliate.

            

    

     

    ARTICLE
      XXIV -
      SERVICE
      OF SUIT

     

    Subject
      to Article XVI, it is agreed that the Company and Reinsurer have the right
      to
      commence an action in any court of competent jurisdiction in the United States,
      to remove an action to a United States District Court, or to seek a transfer
      or
      remand of a case to another court as permitted by the laws of the United States
      or of any state in the United States.

     

    It
      is
      further agreed that the Company may serve process upon the Reinsurer by
      serving:

     

    A
      Person
      indicated by the Company in a written notice to the Reinsurer within five (5)
      days of the date hereof.

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

     

    The
      right
      of the Company to bring suit as provided herein shall be limited to a suit
      brought in its own name and for its own account.

     

    ARTICLE
      XXV -
      MISCELLANEOUS

     

    
      	
              A.

            	
              Entire
                Agreement.
                This Agreement contains the entire agreement between the parties
                hereto
                relating to the subject matter hereof and supersedes and replaces
                all oral
                statements and prior writings with respect
                thereto.

            

    

     

    
      	
              B.

            	
              Assignment.
                Neither party may assign any of its rights or obligations hereunder
                without the prior written consent of the other
                party.

            

    

     

    
      	
              C.

            	
              Counterparts.
                This Agreement may be executed in any number of counterparts, and
                by the
                parties on separate counterparts, but will not be effective until
                each
                party has executed at least one counterpart. Each counterpart will
                constitute an original of this Agreement, but all the counterparts
                will
                together constitute but one and the same instrument. All signatures
                of the
                parties to this Agreement may be transmitted by facsimile, and such
                facsimile will, for all purposes, be deemed to be the original signature
                of such Party whose signature it reproduces and will be binding upon
                such
                Party.

            

    

     

    
      	
              D.

            	
              Waiver.
                Except as otherwise expressly set forth in this Agreement, there
                shall be
                no waiver of any breach of the terms of this Agreement, nor waiver
                of any
                right, remedy, power or privilege conferred by this Agreement, except
                as
                notified in writing by the party waiving to the other party, or as
                otherwise expressly provided for in this Agreement. Notwithstanding
                this,
                and for the avoidance of doubt:

            

    

     

    1. any
      waiver of a breach of any term of this Agreement or of any default hereunder
      shall not be deemed a waiver of any subsequent breach or default and shall
      in no
      way affect the other terms of this Agreement; and

     

    2. no
      failure to exercise and no delay on the part of any party in exercising any
      right, remedy, power or privilege of that party under this Agreement and no
      course of dealing between the parties shall be construed or operate as a waiver
      thereof, nor shall any single or partial exercise of any right, remedy, power
      or
      privilege preclude any other or further exercise thereof or the exercise of
      any
      right, remedy, power or privilege. The rights and remedies provided by this
      Agreement are cumulative and are not exclusive of any rights or remedies
      provided by law.

     

    
      	
              E.

            	
              Headings.
                The headings of the Articles of this Agreement are inserted for
                convenience only, and shall not affect the meaning or construction
                of any
                provision of this Agreement.

            

    

     

    
      	
              F.

            	
              Notices.
                Any notice and other communication required or permitted hereunder
                shall
                be in writing and shall be delivered personally, sent by facsimile
                transmission (and immediately after transmission confirmed by telephone),
                or sent by certified, registered or express mail, postage prepaid;
                provided, however, that the party delivering a communication by facsimile
                transmission shall retain the electronically generated confirmation
                of
                delivery, showing the telephone number to which the transmission
                was sent
                and the date and time of the transmission. Any such notice shall
                be deemed
                given when so delivered personally or sent by facsimile transmission
                (and
                immediately after transmission confirmed by telephone), or, if mailed,
                on
                the date shown on the receipt therefor, as follows (or to such other
                address or facsimile number as the party shall furnish the other
                party in
                accordance with this paragraph):

            

    

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

     

    If
      to the
      Company, to:

     

    AmTrust
      International Insurance, Ltd.

    Suite
      102
      Washington Mall

    7
      Reid
      Street

    Hamilton
      HM 11

    Bermuda

    Tel:
      441.292.6564

    Fax:
      441.292.5796

    

    With
      a
      copy to:

     

    AmTrust
      Financial Services, Inc.

    59
      Maiden
      Lane, 6th
      Floor

    New
      York,
      NY 10038

    Tel:
      212.220.7120

    Fax:
      212.220.7130

    Attention:
      General Counsel

    

    If
      to the
      Reinsurer, to:

     

    Maiden
      Insurance Company, Ltd.

    7
      Reid
      Street

    Hamilton
      HM 11

    Bermuda

    Attention:
      CFO

    Tel:
      441-295-5225

    Fax:
      

     

    With
      a
      copy to:

     

    Conyers
      Dill and Pearman

    Clarendon
      House

    2
      Church
      Street

    PO
      Box HM
      666

    Hamilton
      HM CX

    Bermuda

    Attention:
      Christopher Garrod, Esq.

    Tel:
      (441) 295 1422

    Fax:
      (441) 292 4720

     

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

     

    [Remainder
      of page intentionally left blank]

    

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF the parties hereto, by their respective duly authorized
      officers, have executed this QUOTA SHARE REINSURANCE AGREEMENT, in duplicate,
      as
      of the dates recorded below:

     

    AMTRUST
      INTERNATIONAL INSURANCE, LTD.

    
      	 	 	 
	 	 	 
	By:	/s/
              Michael F Bott	 
	
              Name:

            	Michael
              F Bott	 
	Title:	Senior
              Vice President	 
	Dated:	September
              17, 2007	 

    

     

    MAIDEN
      INSURANCE COMPANY, LTD.

    
      
        	 	 	 
	 	 	 
	By:	/s/
                Bentzion Turin	 
	
                Name:

              	Bentzion
                Turin	 
	Title:	Chief
                Operating Officer	 
	Dated:	September
                17, 2007	 

      

    

     

    AII
      INSURANCE MANAGEMENT, LTD.

    (solely
      for the purposes of Section C(2) of Article XXIII hereof)

    
      
        	 	 	 
	 	 	 
	By:	/s/
                Michael F Bott	 
	
                Name:

              	Michael
                F Bott	 
	Title:	President	 
	Dated:	September
                17, 2007	 

      

       

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        Schedule
          A

         

        Lines
          of Insurance Covered Under this Agreement

         

        All
          lines
          of business classified by the Company as:

         

        
          	 	
                  1.

                	
                  Workers’
                    Compensation

                

        

        

        
          	 	
                  2.

                	
                  Extended
                    Warranty and Specialty Risk, which includes Mechanical Breakdown,
                    Accidental Damage, Theft, Gap and Creditor and Payment Protection,
                    and
                    coverages which are substantially similar to those listed herein
                    or any
                    current business classified by the Company as Extended Warranty
                    and
                    Specialty Risk.

                

        

        

        
          	
                	3.	
                  Specialty
                    Middle-Market Property and Casualty (as reported by AmTrust in
                    its filings
                    with the U.S. Securities Exchange Commission) placed through
                    program
                    underwriting agents, which includes Workers’ Compensation, General
                    Liability, Commercial Property, Commercial Automobile Liability,
                    and Auto
                    Physical Damage, and other substantially similar commercial property
                    and
                    casualty coverages.

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