Document:

EX 10.7

    EXHIBIT
      10.7

    

    EMPLOYMENT
      AGREEMENT

    

    THIS
      EMPLOYMENT AGREEMENT (the “Agreement”), made and entered into as of January 1,
      2005, by and between AmTrust Financial Services, Inc. a Delaware corporation,
      with its principal office located at 59 Maiden Lane, 6th
      Floor,
      New York, New York 10038 (“AmTrust” or “Company”) and Barry D. Zyskind
      (“Executive”).

    

    WHEREAS,
      AmTrust has determined that it is in the best interests of the Company and
      its
      stockholders to employ Executive and to set forth in this Agreement the
      obligations and duties of both Company and Executive; and

    

    WHEREAS,
      AmTrust wishes to assure itself of the services of Executive for the period
      hereinafter provided, and Executive is willing to be employed by Company for
      said period, upon the terms and conditions provided in this
      Agreement;

    

    NOW,
      THEREFORE, in consideration of the premises and mutual covenants contained
      herein and for other good and valuable consideration, the receipt of which
      is
      mutually acknowledged, Company and Executive (individually a “Party” and
      together the “Parties”) agree as follows:

    

    
      	1.	
              Definitions

            

    

    

    
      	
            	(a)	
              “Beneficiary”
                means the person or persons named by Executive pursuant to Section
                15
                below or, in the event that no such person is named who survives
                Executive, his estate.

            

    

    

    
      	
            	(b)	
              “Board”
                means the Board of Directors of
                AmTrust.

            

    

    

    
      	
            	(c)	
              “Cause”
                means:

            

    

    

    
      	
            	(i)	
              Executive’s
                conviction of a felony involving an act or acts of dishonesty on
                his part
                and resulting in gain or personal enrichment at the expense of
                Company;

            

    

    

    
      	
            	(ii)	
              willful
                and continued failure of Executive to perform his obligations under
                this
                Agreement, resulting in demonstrable material economic harm to
                Company;

            

    

    

    
      	
            	(iii)	
              a
                willful and material breach by Executive of the provisions of Sections
                12
                or 13 below to the demonstrable and material detriment of
                Company.

            

    

    

    Notwithstanding
      the foregoing, in no event shall Executive’s failure to perform the duties
      associated with his position caused by his mental or physical disability
      constitute Cause for his termination.

    

    For
      the
      purposes of this Section 1(c), no act or failure to act on the part of Executive
      shall be considered “willful” unless it is done, or omitted to be done, by him
      in bad faith or without reasonable belief that his action or omission was in
      the
      best interests of Company. Any act or failure to act based upon authority given
      pursuant to a resolution adopted by the Board or based upon the advice of
      counsel for Company shall be conclusively presumed to be done, or omitted to
      be
      done, by Executive in good faith and in the best interests of
      Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
            	(d)	
              “Code”
                means the Internal Revenue Code of 1986, as amended from time to
                time.

            

    

    

    
      	
            	(e)	
              “Disability”
                means the illness or other mental or physical disability of Executive,
                as
                determined by a physician acceptable to Company and Executive, resulting
                in his failure during the Employment Term (i) to perform substantially
                his
                applicable material duties under this Agreement for a period of six
                consecutive months and (ii) to return to the performance of his duties
                within thirty (30) days after receiving written notice of
                termination.

            

    

    

    
      	
            	(f)	
              “Employment
                Term” means the period specified in Section 2(b)
                below.

            

    

    

    
      	
            	(g)	
              “Fiscal
                Year” means the fiscal year of the
                Company.

            

    

    

    
      	
            	(h)	
              “Good
                Reason” means, at any time during the Employment Term, in each case
                without Executive’s prior written consent or his
                acquiescence:

            

    

    

    
      	
            	(i)	
              reduction
                in his then current Salary;

            

    

    

    
      	
            	(ii)	
              diminution,
                reduction or other adverse change in the bonus or incentive compensation
                opportunities available to Executive (with respect to the level of
                bonus
                or incentive compensation opportunities, the applicable performance
                criteria and otherwise the manner in which the bonuses and incentive
                compensation are determined) in the aggregate from those available
                as the
                date hereof in accordance with Section 4(a)
                below;

            

    

    

    
      	
            	(iii)	
              Company’s
                failure to pay Executive any amounts otherwise vested and due him
                hereunder or under any plan or policy of
                Company;

            

    

    

    
      	
            	(iv)	
              diminution
                of Executive’s titles, position, authorities or responsibilities,
                including not serving on the Board;

            

    

    

    
      	
            	(v)	
              assignment
                to Executive of duties incompatible with his position of
                President;

            

    

    

    
      	
            	(vi)	
              imposition
                of a requirement that Executive report other than to the full
                Board;

            

    

    

    
      	
            	(vii)	
              a
                material breach of the Agreement by Company that is not cured within
                10
                business days after written notification by Executive of such breach;
                or

            

    

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    

    
      	
            	(i)	
              “Salary”
                means the annual salary provided for in Section 3 below, as adjusted
                from
                time to time.

            

    

    

    
      	
            	(j)	
              “Spouse”
                means, during the Term of Employment, the woman who as of any relevant
                date is legally married to
                Executive.

            

    

    

    
      	
            	(k)	
              “Subsidiary”
                means any corporation of which Company owns, directly or indirectly,
                more
                than fifty percent (50%) of its voting
                stock.

            

    

    

    
      	2.	
              EMPLOYMENT
                TERM, POSITIONS AND DUTIES

            

    

    

    
      	
            	(a)	
              Employment
                of Executive. Company hereby employs Executive, and Executive hereby
                accepts employment with Company, in the positions and with the duties
                and
                responsibilities set forth below and upon such other terms and conditions
                as are hereinafter stated. Executive shall render services to Company
                principally at Company’s corporate headquarters, but he shall do such
                traveling on behalf of Company as shall be reasonably required in
                the
                course of the performance of his duties
                hereunder.

            

    

    

    
      	
            	(b)	
              Employment
                Term. The initial Employment Term shall commence as of January 1,
                2005 and
                shall terminate on December 31, 2009 (the “Initial Employment Term”). Upon
                expiration of the initial Employment Term, this Agreement shall renew
                automatically for successive three year terms (“Successive Employment
                Terms”), unless either party has provided one hundred eighty (180) days
                written notice of its of his intention not to renew prior to the
                expiration of the Initial Employment Term or any Successive Employment
                Term. The Initial Employment Term and each Successive Employment
                Term,
                collectively, shall constitute the Employment
                Term.

            

    

    

    
      	
            	(c)	
              Titles
                and Duties

            

    

    

    
      	
            	(i)	
              Until
                the date of termination of his employment hereunder, Executive shall
                be
                employed as President and Chief Executive Officer reporting to the
                full
                Board. In his capacity as President and Chief Executive Officer,
                Executive
                shall have the customary powers, responsibilities and authorities
                of
                presidents of corporations of the size, type and nature of Company
                including, without limitation, authority, in conjuction with the
                Board as
                appropriate, to hire and terminate other employees of
                Company.

            

    

    

    
      	
            	(ii)	
              During
                the Employment Term, Company shall use its best efforts to secure
                the
                election of Executive to the Board. During the Employment Term, if
                the
                Board forms an executive or similar committee, Executive shall serve
                thereon.

            

    

     

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    
      	
            	(d)	
              Time
                and Effort

            

    

    

    
      	
            	(i)	
              Executive
                recognizes that, during the Employment Term, he owes an undivided
                duty of
                loyalty to Company and agrees to devote substantially all of his
                business
                time and attention as is reasonably necessary to the performance
                of his
                duties and responsibilities and to use his best efforts to promote
                and
                develop the business of Company and its affiliates;
                and

            

    

    

    
      	
            	(ii)	
              Nothwithstanding
                the foregoing, nothing shall preclude Executive from (a) serving
                on the
                boards of a reasonable number of trade associations, charitable
                organizations and/or businesses not in competition with Company,
                (b)
                engaging in charitable activities and community affairs and (c) managing
                his personal investments and affairs; provided, however, that, such
                activities do not materially interfere with the proper performance
                of his
                duties and responsibilities specified in Section 2 (c)
                above.

            

    

    

    
      	3.	
              SALARY

            

    

    

    
      	
            	(a)	
              Initial
                Salary. Executive shall receive from Company a Salary, payable in
                accordance with the regular payroll practices of Company, in a minimum
                amount of $600,000.

            

    

    

    
      	
            	(b)	
              Salary
                Increases. Executive shall be entitled to a salary review annually
                commencing on the first anniversary of the Effective Date of this
                Agreement. Such salary review shall be based entirely on merit and
                any
                salary adjustments shall be determined by the Board or compensation
                committee thereof. Any amount to which Executive’s Salary is increased, as
                provided in this Section 3(b) or otherwise, shall not thereafter
                be
                reduced without his consent, and the term “Salary” as used in this
                Agreement shall refer to his Salary as thus
                increased.

            

    

    

    
      	
              4.

            	
              BONUSES

            

    

    

    
      	
            	(a)	
              Annual
                Profit Bonus. Provided that the pre-tax profit of Company equals
                or
                exceeds the target profit for the subject Fiscal Year set forth herein,
                Company shall pay Executive an amount equal to two percent (2%) of
                the
                Company’s pre-tax profit for each Fiscal Year or portion thereof during
                the Employment Term, subject to a maximum amount equal to two and
                one half
                times Executive’s Salary as of the end of the Fiscal Year. For purposes of
                computing the Profit Bonus, profit means Company’s revenues less expenses
                determined in accordance with generally accepted accounting principles
                on
                a consistent basis. The Annual Profit Bonus for each Fiscal Year
                shall be
                paid no later than one hundred twenty (120) days as of the end of
                the
                Fiscal Year. The target profit for each Fiscal Year of the Employment
                Term
                is as follows:

            

    

    

    Fiscal
      Year 2005: $20
      million

    Fiscal
      Year 2006: $22
      million

    Fiscal
      Year 2007 $24.2
      million

    Fiscal
      Year 2008: $26.6
      million

    Fiscal
      Year 2009: $29.3
      million

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    

    The
      target profit for Successive Employment Terms shall be determined by the Board
      or the compensation committee thereof, provided that the target profit for
      any
      Fiscal Year may not be increased by more than 10% from the target profit for
      the
      prior Fiscal Year without the express written consent of Executive.

    

    
      	
            	(b)	
              Special
                Bonus. Executive shall be eligible to receive additional bonuses
                during
                the Employment Term. The Board or the compensation committee thereof
                shall
                determine, in its discretion, the occasion for payment, and the amount,
                of
                any such bonus.

            

    

    

    
      	5.	
              LONG-TERM
                INCENTIVE

            

    

    

    During
      the Employment Term, Executive shall be eligible to participate in any long-term
      incentive compensation plan established by Company for the benefit of Executive
      or, in the absence thereof, under any such plan established for the benefit
      of
      members of the senior management of Company.

    

    
      	6.	
              EQUITY
                OPPORTUNITY

            

    

    

    During
      the Employment Term, Executive shall be eligible to receive grants of options
      to
      purchase shares of Company’s stock and awards of shares of Company’s stock,
      either or both as determined by the Board or Options Committee thereof, under
      and in accordance with the terms of applicable plans of Company and related
      option and award agreements. It is the intention of Company to grant stock
      options to Executive during the Employment Term. 

    

    
      	
              7.

            	
              EXPENSE
                REIMBURSEMENT; CERTAIN OTHER COSTS

            

    

    

    During
      the Employment Term, Executive shall be entitled to prompt reimbursement by
      Company for all reasonable out-of-pocket expenses incurred by him in performing
      services under this Agreement, upon his submission of such accounts and records
      as may be reasonably required by Company.

    

    
      	
              8.

            	
              PERQUISITES

            

    

    

    During
      the Employment Term, Company shall provide Executive with the following
      perquisites:

    

    
      	
            	(a)	
              an
                office of a size and with furnishings and other appointments, and
                personal
                secretarial and other assistance, at least equal to that provided
                to
                Executive by Company as of the date hereof;
                and

            

    

    

    
      	
            	(b)	
              payment
                of and the use of an automobile and payment of related expenses on
                the
                same terms as in effect on the date hereof or, if more favorable
                to
                Executive, as made available generally to other executive officers
                of
                Company and its affiliates at any time thereafter, but in no event
                to
                exceed, in total, One Thousand Dollars ($1,000) per
                month.

            

    

     

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    
      	
              9.

            	
              EMPLOYEE
                BENEFIT PLANS

            

    

    

    
      	
            	(a)	
              General.
                During the Employment Term, Executive shall be entitled to participate
                in
                all employee benefit plans and programs made available to Company’s senior
                executives or to its employees generally, as such plans or programs
                may be
                in effect from time to time, including, without limitation, pension
                and
                other retirement plans, profit-sharing plans, savings and similar
                plans,
                group life insurance, hospitalization insurance, surgical insurance,
                major
                and excess major medical insurance, dental insurance, short-term
                and
                long-term disability insurance, sick leave (including salary continuation
                arrangements), holidays, vacation (not less than four weeks in any
                calendar year) and any other employee benefit plans or programs that
                may
                be sponsored by Company from time to time, including plans that supplement
                the above-listed types of plans, whether funded or
                unfunded.

            

    

    

    
      	
            	(b)	
              Medical
                Insurance. During the Employment Term, Company shall reimburse Executive
                for one hundred percent (100%) of the cost of health insurance through
                Company’s group health plan for himself, his Spouse and his dependent
                children.

            

    

    

    
      	
            	(c)	
              Life
                Insurance Benefit. In addition to the group life insurance available
                to
                employees generally, Company shall provide Executive with an individual
                permanent life insurance benefit in an initial amount of not less
                than the
                Salary, the terms and conditions of such benefit to be more fully
                described in an insurance ownership agreement between Executive and
                Company.

            

    

    

    
      	
              10.

            	
              TERMINATION
                OF EMPLOYMENT

            

    

    

    
      	
            	(a)	
              Termination
                by Mutual Agreement. The Parties may terminate this Agreement by
                mutual
                agreement at any time. If they do so, Executive’s entitlements shall be as
                the Parties mutually agree.

            

    

    

    
      	
            	(b)	
              General.
                Notwithstanding anything to the contrary herein, in the event of
                termination of Executive’s employment under this Agreement, he or his
                Beneficiary, as the case may be, shall be entitled to receive (in
                addition
                to payments and benefits under, and except as specifically provided
                in,
                subsections (c) through (f) below as
                applicable):

            

    

    

    
      	
            	(i)	
              his
                Salary through the date of
                termination;

            

    

    

    
      	
            	(ii)	
              any
                annual or special bonus awarded or earned, including the Annual Profit
                Bonus earned through the date of termination, but not yet paid to
                him;

            

    

     

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    
      	
            	(iii)	
              any
                deferred compensation under any incentive compensation plan or other
                deferred compensation plan of
                company;

            

    

    

    
      	
            	(iv)	
              any
                other compensation or benefits, including without limitation long-term
                incentive compensation described in Section 5 above, benefits under
                equity
                grants and awards described in Section 6 above and employee benefits
                under
                plans described in Section 9 above, that have vested through the
                date of
                termination or to which he may then be entitled in accordance with
                the
                applicable terms and conditions of each grant, award or plan;
                and

            

    

    

    
      	
            	(v)	
              reimbursement
                in accordance with Sections 9(a) above of any business expenses incurred
                by Executive, as applicable, through the date of termination but
                not yet
                paid to him.

            

    

    

    
      	
            	(c)	
              Termination
                due to Death. In the event that Executive’s employment is terminated due
                to his death, his Beneficiary shall be entitled, in addition to the
                compensation and benefits specified in Section 10(b), to his Salary
                payable for the remainder of the Employment Term or for one year,
                whichever is greater, at the rate in effect immediately before such
                termination. 

            

    

    

    
      	
            	(d)	
              Termination
                due to Disability. In the event of Disability, Company or Executive
                may
                terminate Executive’s employment. If Executive’s employment is terminated
                due to Disability, he shall be entitled, in addition to the compensation
                and benefits specified in Section 10(b), to his Salary payable for
                the
                remainder of the Employment Term or one year, whichever is greater,
                at the
                rate in effect immediately before such termination, offset by any
                long-term disability insurance benefit that Company may have elected
                to
                provide for him.

            

    

    

    
      	
            	(e)	
              Termination
                by Company for Cause. Company may terminate Executive’s employment
                hereunder for Cause only upon written notice to Executive not less
                than 30
                days prior to an intended termination, which notice shall specify
                the
                grounds for such termination in reasonable detail. Cause shall in
                no event
                be deemed to exist except upon a finding reflected in a resolution
                approved by a majority (excluding Executive) of the members of the
                Board
                (whose findings shall not be binding upon or entitled to any deference
                by
                any court, arbitrator or other decision-maker ruling on this Agreement)
                at
                a meeting of which Company shall have been given proper notice and
                at
                which Executive (and his counsel) shall have a reasonable opportunity
                to
                present his case. In the event that Executive’s employment is terminated
                for Cause, he shall be entitled only to the compensation and benefits
                specified in Section 10(b).

            

    

     

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    
      	
            	(f)	
              Termination
                Without Cause or by Executive for Good
                Reason.

            

    

     

    
      	
            	(i)	
              Termination
                without Cause shall mean termination of Executive’s employment by Company
                and shall exclude termination (a) due to death, Disability or Cause
                or (b)
                by mutual written agreement of Executive and Company. Company shall
                provide Executive fifteen (15) days’ prior written notice of termination
                by it without Cause, and Executive shall provide Company fifteen
                (15)
                days’ prior written notice of his termination for Good
                Reason.

            

    

    

    
      	
            	(ii)	
              In
                the event of termination by Company of Executive’s employment without
                Cause or of termination by Executive of his employment for Good Reason,
                he
                shall be entitled, in addition to the compensation and benefits specified
                in Section 10(b), to:

            

    

    

    
      	
            	(A)	
              A
                lump-sum payment equal to the Salary payable to him for the remainder
                of
                the Employment Term at the rate in effect immediately before such
                termination;

            

    

    

    
      	
            	(B)	
              A
                lump-sum payment equal to the annual profit bonuses for the remainder
                of
                the Employment Term (including a prorated bonus for any partial Fiscal
                Year) equal to the greater of the average of the bonuses awarded
                to him
                during the three Fiscal Year preceding the Fiscal Year of termination
                or
                the bonus awarded to him for the Fiscal Year immediately preceding
                termination;

            

    

    

    
      	
            	(C)	
              Continued
                participation in all employee benefit plans or programs available
                to
                Company employees generally in which Executive was participating
                on the
                date of termination of this employment until the end of the Employment
                Term; provided; however, that (x) if Executive is precluded from
                continuing his participation in any employee benefit plan or program
                as
                provided in this clause (C), he shall be entitled to the after-tax
                economic equivalent of the benefits under the plan or program in
                which he
                is unable to participate until the end of the Employment Term, and
                (y) the
                economic equivalent of any benefit foregone shall be deemed to be
                the
                lowest cost that Executive would incur in obtaining such benefit
                on an
                individual basis; and

            

    

    

    
      	
            	(D)	
              Other
                benefits in accordance with applicable plans and programs of the
                Company.

            

    

    

    
      	
            	(E)	
              Continued
                payment of one hundred percent (100%) of the cost of health insurance
                through Company’s group health plan for himself, his Spouse and his
                dependent children.

            

    

    

    
      	
            	(iii)	
              Prior
                written consent by Executive to any of the events described in Section
                1(h) above shall be deemed a waiver by him of his right to terminate
                for
                Good Reason under this Section 10(f) solely by reason of the events
                set
                forth by waiver. 

            

    

     

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    
      	
              11.

            	
              CONFIDENTIAL
                INFORMATION

            

    

    

    
      	
            	(a)	
              General

            

    

    

    
      	
            	(i)	
              Executive
                understands and hereby acknowledges that as a result of his employment
                with Company he will necessarily become informed of and have access
                to
                certain valuable and confidential information of Company and any
                of is
                Subsidiaries, joint ventures and affiliates, including, without
                limitation, inventions, trade secrets, technical information, computer
                software and programs, know-how and plans (“Confidential Information”),
                and that any such Confidential Information, even though it may be
                developed or otherwise acquired by Executive, is the exclusive property
                of
                Company to be held by him in trust solely for Company’s
                benefit.

            

    

    

    
      	
            	(ii)	
              Accordingly,
                Executive hereby agrees that, during the Employment Term and thereafter,
                he shall not, and shall not cause others to use, reveal, report,
                publish,
                transfer or otherwise disclose to any person, corporation or other
                entity
                any Confidential Information without prior written consent of the
                Board,
                except to (a) responsible officers and employees of Company or (b)
                responsible persons who are in a contractual or fiduciary relationship
                with Company or who need such information for purposes in the interest
                of
                Company. Notwithstanding, the foregoing, the prohibitions of this
                clause
                (ii) shall not apply to any Confidential Information that becomes
                of
                general public knowledge other than from Executive or is required
                to be
                divulged by court order or administrative
                process.

            

    

    

    
      	
            	(b)	
              Return
                of Documents. Upon termination of his employment with Company for
                any
                reason, Executive shall promptly deliver to Company all plans, drawings,
                manuals, letters, notes, notebooks, reports, computer programs and
                copies
                thereof and all other materials, including without limitation those
                of a
                secret or confidential nature, relating to Company’s business that are
                then in his possession or control.

            

    

    

    
      	
            	(c)	
              Remedies
                and Sanctions. In the event that Executive is found to be in violation
                of
                Section 11(a) or (b) above, Company shall be entitled to relief as
                provided in Section 13 below.

            

    

     

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    
      	
              12.

            	
              NONCOMPETITION/NONSOLICITATION

            

    

    

    
      	
            	(a)	
              Prohibitions.
                Executive shall not, without prior written authorization of the Board,
                directly or indirectly, though any other individual or
                entity:

            

    

    

    
      	
            	(i)	
              become
                an officer or employee of, or render any service to, and direct competitor
                of Company during the Employment
                Term;

            

    

    

    
      	
            	(ii)	
              solicit
                or induce any customer of Company to cease purchasing goods or services
                from Company or to become a customer of any competitor of Company
                during
                the Employment Term or for a period of one year thereafter;
                or

            

    

    

    
      	
            	(iii)	
              solicit
                or induce any employee of Company to become employed by any competitor
                of
                Company during the Employment Term or for a period of one year
                thereafter.

            

    

    

    
      	
            	(b)	
              Remedies
                and Sanctions. In the event that Executive is found to be in violation
                of
                Section 12(a) above, Company shall be entitled to relief as provided
                in
                Section 13 below.

            

    

    

    
      	
            	(c)	
              Exceptions.
                Notwithstanding, anything to the contrary in Section 12(a) above,
                its
                provisions shall not:

            

    

    

    
      	
            	(i)	
              apply
                if Company terminates Executive’s employment without Cause or Executive
                terminates his employment for Good Reason, each as provided in Section
                10(f) above; or

            

    

    

    
      	
            	(ii)	
              be
                construed as preventing Executive from investing his assets in any
                business that is not a direct competitor of
                Company.

            

    

    

    
      	
              13.

            	
              REMEDIES/SANCTIONS

            

    

    

    
      	 	
              Executive
                acknowledges that the services he is to render under this Agreement
                are of
                a unique and special nature, the loss of which cannot reasonably
                or
                adequately be compensated for in monetary damages, and that irreparable
                injury and damage may result to Company in the event of any breach
                of this
                Agreement or default by Executive. Because of the unique nature of
                the
                Confidential Information and the importance of the prohibitions against
                competition and solicitation, Executive further acknowledges and
                agrees
                that Company will suffer irreparable harm if he fails to comply with
                his
                obligations under Section 11(a) or (b) above or Section 12(a) above
                and
                that monetary damages would be inadequate to compensate Company for
                any
                such breach. Accordingly, Executive agrees that, in addition to any
                other
                remedies available to either Party at law, in equity or otherwise,
                Company
                will be entitled to seek injunctive relief or specific performance
                to
                enforce the terms, or prevent or remedy the violation, of any provisions
                of this Agreement.

            

    

     

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    
      	
              14.

            	
              BENEFICIARIES/REFERENCES

            

    

    

    
      	 	
              Executive
                shall be entitled to select (and change, to the extent permitted
                under any
                applicable law) a beneficiary or beneficiaries to receive any compensation
                or benefit payable under this Agreement following his death by giving
                Company written notice thereof. In the event of Executive’s death, or of a
                judicial determination of his incompetence, reference in this Agreement
                to
                Executive shall be deemed to refer, as appropriate, to his beneficiary,
                estate or other legal
                representative.

            

    

    

    
      	
              15.

            	
              WITHHOLDING
                TAXES

            

    

    

    
      	 	
              All
                payments to Executive or his Beneficiary under this Agreement shall
                be
                subject to withholding on account of federal, state and local taxes
                as
                required by law.

            

    

    

    
      	
              16.

            	
              INDEMNIFICATION
                AND LIAIBLITY INSURANCE

            

    

    

    
      	 	
              Nothing
                herein is intended to limit Company’s indemnification of Executive, and
                Company shall indemnify him to fullest extent permitted by applicable
                law
                consistent with Company’s Certificate of Incorporation and By-Laws as in
                effect at the beginning of the Employment Term, with respect to any
                action
                or failure to act on his part while he is an officer, director or
                employee
                of Company or any Subsidiary. Company shall cause Executive to be
                covered
                at all times by directors’ and officers’ liability insurance on terms no
                less favorable than the directors’ and officers’ liability insurance
                maintained by Company in effect on the date hereof in terms of coverage
                and amounts. Company shall continue to indemnify Executive as provided
                above and maintain such liability insurance coverage for him after
                the
                Employment Term for any claims that may be made against him with
                respect
                to his service as a director or officer of
                Company.

            

    

    

    
      	
              17.

            	
              EFFECT
                OF AGREEMENT ON OTHER BENEFITS

            

    

    

    
      	 	
              The
                existence of this Agreement shall not prohibit or restrict Executive’s
                entitlement to participate fully in compensation, employee benefit
                and
                other plans of Company in which senior executives are eligible to
                participate.

            

    

    

    
      	18.	
              ASSIGNABILITY;
                BINDING NATURE.

            

    

    

    This
      Agreement shall be binding upon and inure to the benefit of the Parties and
      their respective successors, heirs (in the case of Executive) and assigns.
      No
      rights or obligations of Company under this agreement may be assigned or
      transferred by Company except pursuant to (a) a merger or consolidation in
      which
      Company is not the continuing entity or (b) sale or liquidation of all or
      substantially all of the assets of Company, provided that the surviving entity
      or assignee or transferee is the successor to all or substantially all of the
      assets of Company and such surviving entity or assignee or transferee assumes
      the liabilities, obligations and duties of Company under this Agreement, either
      contractually or as a matter of law.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    

    Company
      further agrees that, in the event of a sale of assets or liquidation as
      described in the preceding sentence, it shall use its best efforts to have
      such
      assignee or transferee expressly agree to assume the liabilities, obligations
      and duties of Company hereunder; provided, however, that notwithstanding such
      assumption, Company shall remain liable and responsible for fulfillment of
      the
      terms and conditions of this Agreement. No rights or obligations of Executive
      under this Agreement may be assigned or transferred by him.

    

    
      	29.	
              REPRESENTATIONS.

            

    

     

    The
      Parties respectively represent and warrant that each is fully authorized and
      empowered to enter into this Agreement and that the performance of its or his
      obligations, as the case may be, under this Agreement will not violate any
      agreement between such Party and any other person, firm or organization. Company
      represents and warrants that this agreement has been duly authorized by all
      necessary corporate actions and is valid, binding and enforceable in accordance
      with its terms. 

    

    
      	20.	
              ENTIRE
                AGREEMENT.

            

    

    

    Except
      to
      the extent otherwise provided herein, this Agreement contains the entire
      understanding and agreement between the Parties concerning the subject matter
      hereof and supersedes any prior agreements, whether written or oral, between
      the
      Parties concerning the subject matter hereof, including without limitation
      the
      Prior Agreement. Payments and benefits provided under this Agreement are in
      lieu
      of any payments or other benefits under any severance program or policy of
      Company to which Executive would otherwise be entitled.

    

    
      	21.	
              AMENDMENT
                OR WAIVER.

            

    

    

    No
      provision in this Agreement may be amended unless such amendment is agreed
      to in
      writing and signed by both Executive and an authorized officer of Company.
      No
      waiver by either Party of any breach by the other Party of any condition or
      provision contained in this Agreement to be performed by such other Party shall
      be deemed a waiver of a similar or dissimilar condition or provision at the
      same
      or any prior or subsequent time. Any waiver must be in writing and signed by
      the
      Party to be charged with the waiver. No delay by either party in exercising
      any
      right, power or privilege hereunder shall operate as a waiver
      thereof.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    

    
      	22.	
              SEVERABILITY.

            

    

    

    In
      the
      event that any provision or portion of this agreement shall be determined to
      be
      invalid or unenforceable for any reason, in whole or in part, the remaining
      provisions of this Agreement shall be unaffected thereby and shall remain in
      full force and effect to the fullest extent permitted by law.

    

    
      	23.	
              SURVIVAL.

            

    

     

    The
      respective rights and obligations of the Parties under this Agreement shall
      survive any termination of Executive’s employment with Company.

    

    
      	24.	
              GOVERNING
                LAW/JURISDICTION.

            

    

    

    This
      agreement shall be governed by and construed and interpreted in accordance
      with
      the laws of the State of New York, without reference to the principles of
      conflict of laws.

    

    
      	25.	
              COSTS
                OF DISPUTES.

            

    

     

    Company
      shall pay, at least monthly, all costs and expenses, including attorney’s fees
      and disbursements, of Executive in connection with any proceeding, whether
      or
      not instituted by Company or Executive, relating to any provision of this
      agreement, including but nor limited to the interpretations, enforcement or
      reasonableness thereof; provided, however, that, if Executive instituted the
      proceeding and the judge or other decision-maker presiding over the proceeding
      affirmatively finds that his claims were frivolous or were made in bad faith,
      he
      shall pay his own costs and expenses and, if applicable, return any amounts
      theretofore paid to him or on his behalf under this Section 25. Pending the
      outcome of any proceeding, Company shall pay Executive all amounts due to him
      without regard to the dispute; provided, however, that if Company shall be
      the
      prevailing party in such a proceeding, Executive shall promptly repay all
      amounts that he received during pendency of the proceeding (other than amounts
      received pursuant to this Section 25).

    

    
      	26.	
              NOTICES.

            

    

     

    Any
      notice given to either Party shall be in writing and shall be deemed to have
      been given when delivered either personally, by fax, by overnight delivery
      service (such as Federal Express) or sent by certified or registered mail
      postage prepaid, return receipt requested, duly addressed to the Party concerned
      at the address indicated below or to such changed address as the Party may
      subsequently give notice of.

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    

    If
      to
      Company or the Board:

     

    AmTrust
      Financial Services, Inc.

    59
      Maiden
      Lane

    New
      York,
      NY 10038

    Attention:
      General Counsel

    

    FAX:
      (212) 220-7130

    

    If
      to
      Executive:

    

    Barry
      D.
      Zyskind

    5423
      17th
      Avenue

    Brooklyn,
      NY 11204

    

    
      	27.	
              HEADINGS.

            

    

     

    The
      headings and sections contained in this Agreement are for convenience only
      and
      shall not be deemed to control or affect the meaning or construction of any
      provision of this Agreement.

    

    
      	28.	
              COUNTERPARTS.

            

    

    

    This
      Agreement may be executed in counterparts, each of which when so executed and
      delivered shall be an original, but all such counterparts together shall
      constitute one and the same instrument.

    

    IN
      WITNESS WHEREOF, the undersigned have executed this Agreement as of the dates
      set forth below:

     

    
      	AmTrust
              Financial Services, Inc.	 	 	 
	 	 	
            	 
	By:________________________________________	 	Date:_________	 
	
              Michael
                Karfunkel

            	 	 	 
	
              Chairman
                of the Board of Directors

            	 	 	 
	 	 	 	 
	 	 	 	 
	           
              	 	Date:_________	 
	
              Barry
                D. Zyskind

            	 	 	 

    

     

     

    
      
        
        

      

        -14-EX 10.9

    EXHIBIT
      10.9

    

    EMPLOYMENT
      AGREEMENT

    

    THIS
      EMPLOYMENT AGREEMENT
      dated as
      of June 1, 2005 (the “Effective Date”), by and between AmTrust North America,
      Inc., 59 Maiden Lane, 6th
      Floor,
      New York, New York, a Delaware corporation (the “Company”) and Christopher M.
      Longo, an individual residing at 1269 Gaynelle Avenue, Streetsboro, Ohio 44241
      (“Executive”).

    

    WITNESSETH

    

    WHEREAS,
      The
      Company and Executive desire to enter into this Employment Agreement (the
“Agreement”) in order to set forth the terms and conditions of Executive’s
      employment, intending to supersede any prior employment agreement, written
      or
      oral, whether with the Company or other affiliates.

    

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants and promises contained herein and other
      good and valuable consideration, receipt of which is acknowledged, the parties
      hereto agree as follows:

    

    1.    Duties
      and Responsibilities.
      The
      duties and responsibilities of Executive shall be those of a senior executive
      of
      the Company as the same shall be assigned to him, from time to time, by the
      Board of Directors of the Company. Executive recognizes that, during the period
      of his employment hereunder, he owes an undivided duty of loyalty to the Company
      and agrees to devote all of his business time and attention to the performance
      of his duties and responsibilities and to use his best efforts to promote and
      develop the business of the Company. Subject to the approval of the Board of
      Directors, which shall not be unreasonably withheld, Executive shall be entitled
      to serve on corporate, civic, and/or charitable boards or committees and to
      otherwise reasonably participate as a member in community, civic, or similar
      organizations and the pursuit of personal investments which do not present
      any
      material conflicts of interest with the Company. 

    

    It
      is the
      intention of the Company that Executive shall be appointed as an officer to
      serve in such position at the pleasure of the Board of Directors, reporting
      on a
      day-to-day basis directly to the president of Company and the president of
      the
      Company’s parent corporation, AmTrust Financial Services, Inc. (“AFS”). If
      elected, Executive shall serve as a member of the Board of Directors of the
      Company or such of its affiliates to which he may be elected, in each case,
      without additional compensation.

    

    2.    Employment
      Period.
      For a
      period commencing on the Effective Date hereof and ending on May 31, 2008 (the
      “Employment Period”), the Company hereby employ Executive in

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    the
      capacities herein set forth. Executive agrees, pursuant to the terms hereof,
      to
      serve in such capacities for the Employment Period. This Agreement shall renew
      for successive one year periods unless one of the parties provides written
      notice to the other more than ninety days prior to end of the Employment Period
      or any successive Employment Period that the party will not renew the
      Agreement.

    

    3.    Compensation
      and Benefits.

    

    (a)    Salary.
      The Company, collectively, shall pay Executive a salary at the rate of On
      Hundred Thousand Dollars ($100,000) per annum (“Salary”) through December 31,
      2005, One Hundred Seventy-Five Thousand Dollars ($175,000) per annum effective
      January 1, 2006, Two Hundred Thousand Dollars ($200,000) per annum effective
      January 1, 2007 and Two Hundred Fifty Thousand Dollars ($250,000) per annum
      effective January 1, 2008, payable in accordance with the Company’ normal
      payroll process. In the event of the renewal of this Agreement for a successive
      Employment Period, Executive shall be entitled to a salary review annually
      commencing on the fourth anniversary of the Effective Date during the term
      of
      this Agreement. Such salary review shall be based entirely on merit and any
      salary adjustments shall be determined by the Board of Directors of the Company
      solely at its discretion.

    

    (b)    Profit
      Bonus. Executive shall receive an annual bonus equal to one percent (1%) of
      the
      profit, as defined herein, of AFS during the Employment Period or any successive
      Employment Period (the “Profit Bonus”). Effective as of the Calendar year ending
      December 31, 2006, the Profit Bonus shall not exceed one and one-half times
      Executive’s then current Salary. For
      purposes of computing the Profit Bonus, profits shall mean AFS’ after tax net
      income, excluding extraordinary income and all income of AmTrust Pacific
      Limited, as determined by AFS’s independent public accountants whose
      determination thereof shall be final, binding and conclusive. The Profit Bonus
      for each year shall be paid within sixty (60) days after the completion and
      issuance of AFS’s consolidated financial statements for the prior calendar year.
      The Profit Bonus shall be payable only if Executive is employed by the Company
      on the date that the bonus is payable.

    

    (c)    Special
      Bonus. It is understood and agreed that AFS intends to adopt a 2005 Incentive
      Stock Plan (the “Plan”). Upon such adoption and based upon a proposed
      capitalization of thirty million issued and outstanding shares of common stock,
      Executive shall be granted an incentive stock option to purchase under the
      Plan
      300,000 shares of AFS common stock, subject to the terms and conditions of
      the
      Plan. The number of shares covered by the option shall be adjusted upward or
      downward, as the case may be, to an amount equal to one percent of the issued
      and outstanding shares of common stock if the number of said shares is greater
      or lesser than thirty million. In the event that AFS, during the term of the
      option, does not have a liquidity event, such as an initial public offering,
      a
      sale of in excess of twenty percent (20%) of its outstanding shares to persons
      currently not affiliated with AFS or a merger or sale of AFS to a non-affiliated
      third party, exercise of the option, in whole or in part, shall be deferred
      indefinitely unless
      and until such event occurs.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    

    (d)    Executive
      may also receive other bonus payments determined at the sole discretion of
      the
      Board of Directors (“Discretionary Bonus”).

    

    (e)    Executive
      shall also be entitled to the following benefits:

    

    
      	 	
              (i)

            	
              three
                weeks (3) weeks of paid vacation for each twelve (12) months of the
                Employment, or such greater period as may be approved from time to
                time by
                Board of Directors. Unused vacation time shall not be carried over
                to any
                subsequent calendar year; 

            

    

    

    
      	 	
              (ii)

            	
              paid
                holidays and any and all other work-related leave (whether sick leave
                or
                otherwise) as provided to the Company’ other executive employees;
                and

            

    

    

    
      	 	
              (iii)

            	
              participation
                in such employee benefit plans to which executive employees of the
                Company, their dependents and beneficiaries generally are entitled
                during
                the Employment Period and, including, without limitation, health
                insurance, disability and life insurance, retirement plans and other
                present or successor plans and practices of Company for which executive
                employees, their dependents and beneficiaries are
                eligible.

            

    

    

    4.    Reimbursement
      of Expenses.
      The
      Company recognizes that Executive, in performing Executive’s functions, duties
      and responsibilities under this Agreement, may be required to spend sums of
      money in connection with those functions, duties and responsibilities for the
      benefit of the Company and, accordingly, shall reimburse Executive for travel
      and other out-of-pocket expenses reasonably and necessarily incurred in the
      performance of his functions, duties and responsibilities hereunder upon
      submission of written statements and/or bills in accordance with the regular
      procedures of the Company in effect from time to time.

    

    5.    Disability.
      In the
      event that Executive shall be unable to perform because of illness or
      incapacity, physical or mental, all the functions, duties and responsibilities
      to be performed by him hereunder for a consecutive period of two (2) months
      or
      for a total period of three (3) months during any consecutive twelve (12) month
      period, the Company may terminate this Agreement effective on or after the
      expiration of such period (the “Disability Period”) upon five (5) business days’
written notice to Executive specifying the termination date (the “Disability
      Termination Date”). Executive shall be entitled to receive his Salary and any
      unreimbursed expenses to the Disability Termination Date. Disability under
      this
      paragraph, shall be determined by a physician who shall be selected by the
      Company and approved by Executive. Such approval shall not be unreasonably
      withheld or delayed, and a physician shall be deemed to be approved unless
      he or
      she is disapproved in writing by Executive within ten (10) days after his or
      her
      name is submitted. The Company may obtain disability income insurance for the
      benefit of
      Executive in such amounts as the Company may determine.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    

    6.    Death.
      In the
      event of the death of Executive during the Employment Period, this Agreement
      and
      the employment of Executive hereunder shall terminate on the date of death
      of
      Executive. Executive’s heirs or legal representatives shall be entitled to
      receive his Salary earned to the date of his death and any unreimbursed
      expenses.

    

    
      	 	
              7.

            	
              Termination. 

            

    

    

    The
      Company may discharge Executive for Cause at any time. Cause for discharge
      shall
      include (i) a material breach of this Agreement by Executive, but only if such
      breach is not cured within thirty (30) days following written notice by the
      Company to Executive of such breach, assuming such breach may be cured; (ii)
      Executive is convicted of any act or course of conduct involving moral
      turpitude; or (iii) Executive engages in any willful act or willful course
      of
      conduct constituting an abuse of office or authority which significantly
      adversely affects the business or reputation of the Company. No act, failure
      to
      act or course of conduct on Executive’s part shall be considered “willful”
unless done, or omitted to be done, by him not in good faith and without
      reasonable belief that his action, omission or course of conduct was in the
      best
      interest of the Company. Any written notice by the Company to Executive pursuant
      to this paragraph 7 shall set forth, in reasonable detail, the facts and
      circumstances claimed to constitute the Cause. If Executive is discharged for
      Cause, the Company, without any limitations on any remedies it may have at
      law
      or equity, shall have no liability for salary or any other compensation and
      benefits to Executive after the date of such discharge.

    

    8.    Non-Disclosure
      of Confidential Information.“Confidential
      Information” means all information known by Executive about the
      Company’ business plans, present or prospective customers, vendors, products,
      processes, services or activities, including the costing and pricing of such
      services or activities, employees, agents and representatives. Confidential
      Information does not include information generally known, other than through
      breach of a confidentiality agreement with any of the Company’, in the industry
      in which the Company engages or may engage. Executive will not, while this
      Agreement is in effect or after its termination, directly or indirectly, use
      or
      disclose any Confidential Information, except in the performance of Executive’s
      duties for the Company, or to other persons as directed by the Board of
      Directors. Executive will use reasonable efforts to prevent unauthorized use
      or
      disclosure of Confidential Information. Upon termination of employment with
      the
      Company, Executive will deliver to the Company all writings relating to or
      containing Confidential Information, including, without limitation, notes,
      memoranda, letters, drawings, diagrams, and printouts, including any tapes,
      discs or other forms of recorded information. If Executive violates any
      provision of this Section while this Agreement is in effect or after
      termination, the Company specifically reserve the right, in appropriate
      circumstances, to seek full indemnification from Executive should the Company
      suffer any monetary damages or incur any legal liability to any person as a
      result of the disclosure or use of Confidential Information by Executive in
      violation of this Section.

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    9.    Restrictive
      Covenant.

    

    (a)    Prohibited
      Activities.
      Executive agrees that he shall not (unless he has received the prior written
      consent of the Company), during the period beginning on the date of termination
      of employment and during the term of this Agreement and ending three (3) years
      thereafter (the “Restriction Period”), directly or indirectly, for any reason,
      for his own account or on behalf of or together with any other person or
      firm:

    

    
      	 	
              (i)

            	
              engage
                in any capacity or as an owner or co-owner of or investor in, whether
                as
                an independent contractor, consultant or advisor, or as a representative
                of any kind, in any business selling any products or providing any
                services in competition with the Company based on the lines of business
                being written by the Company as of the termination of this Agreement
                except in the States of North Dakota, South Dakota and Wyoming; provided,
                however, that Executive may own not more than five percent (5%) of
                the
                outstanding securities of any class of any corporation engaged in
                any such
                business, if such securities are listed on a national securities
                exchange
                or regularly traded in the over-the-counter market by a member of
                a
                national securities association;

            

    

    

    
      	 	
              (ii)

            	
              hire
                or solicit for employment or call, directly or indirectly, through
                any
                person or firm, on any person who is at that time (or at any time
                during
                the one year prior thereto) employed by or representing the Company
                with
                the purpose or intent of attracting that person from the employ of
                the
                Company;

            

    

    

    
      	 	
              (iii)

            	
              call
                on, solicit or perform services for, directly or indirectly through
                any
                person or firm, any person or firm that at that time is, or at any
                time
                within one year prior to that time was, a customer of the Company
                or any
                prospective customer that had or, to the knowledge of Executive,
                was about
                to receive a business proposal from the Company, for the purpose
                of
                soliciting or selling any product or service in competition with
                the
                Company; or 

            

    

    

    
      	 	
              (iv)

            	
              call,
                directly or indirectly through any person or firm, on any entity
                which has
                been called on by the Company in connection with a possible acquisition
                by
                the Company with the knowledge of that entity’s status as such an
                acquisition candidate, for the purpose of acquiring that entity or
                arranging the acquisition of that entity by any person or firm other
                than
                the Company.

            

    

    
 

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    

    (b)    Damages.
      Because
      of (i) the difficulty of measuring economic losses to the Company as a result
      of
      any breach by Executive of the covenants in Sections 9(a), and (ii) the
      immediate and irreparable damage which could be caused to the Company for which
      they would have no other adequate remedy, Executive agrees that the Company
      may
      enforce the provisions of Paragraph 9(a) by injunction and restraining order
      against Executive if he breaches any of said provisions, without necessity
      of
      providing a bond or other security.

    

    (c)    Reasonable
      Restraint.
      The
      parties hereto agree that Sections 9(a) and 9(b) impose a reasonable restraint
      on Executive in light of the activities and business of the Company on the
      date
      hereof and the current business plans of the Company.

    

    10.    Ownership
      of Inventions.
      Executive shall promptly disclose in writing to the Board of Directors all
      inventions, discoveries, and improvements conceived, devised, created, or
      developed by Executive in connection with his employment (collectively,
“Invention”), and Executive shall transfer and assign to the Company all right,
      title and interest in and to any such Invention, including any and all domestic
      and foreign patent rights, domestic and foreign copyright rights therein, and
      any renewal thereof. Such disclosure is to be made promptly after the conception
      of each Invention, and each Invention is to become and remain the property
      of
      the Company, whether or not patent or copyright applications are filed thereon
      by the Company. Upon request of the Company, Executive shall execute from time
      to time during or after the termination of employment such further instruments
      including, without limitation, applications for patents and copyrights and
      assignments thereof as may be deemed necessary or desirable by the Company
      to
      effectuate the provisions of this Section.

    

    11.    Construction.
      If the
      provisions of paragraph 9 should be deemed unenforceable, invalid, or overbroad
      in whole or in part for any reason, then any court of competent jurisdiction
      designated in accordance with paragraph 13 is hereby authorized, requested,
      and
      instructed to reform such paragraph to provide for the maximum competitive
      restraint upon Executive’s activities (in time, product, geographic area and
      customer or employee solicitation) which shall then be legal and
      valid.

    

    12.    Damages
      and Jurisdiction.
      Executive agrees that violation of or threatened violation of any of paragraphs
      8, 9 or 10 would cause irreparable injury to the Company for which any remedy
      at
      law would be inadequate, and the Company shall be entitled in any court of
      law
      or equity of competent jurisdiction to preliminary, permanent and other
      injunctive relief against any breach or threatened breach of the provisions
      contained in any of said paragraphs 8, 9 or 10 hereof, and such compensatory
      damages as shall be awarded. Further, in the event of a violation of the
      provisions of paragraph 9, the Restriction Period referred to therein shall
      be
      extended for a period of time equal to the period that any violation
      occurred.

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    

    13.    Jurisdiction
      and Venue.
      This
      Agreement shall be governed by and construed in accordance
      with the laws of the State of New York. The Company and Executive hereby each
      consents to the exclusive jurisdiction of the Supreme Court of the State of
      New
      York or the United States District Court for the Southern District of New York
      with respect to any dispute arising under the terms of this Agreement and
      further consents that any process or notice of motion therewith may be served
      by
      certified or registered mail or personal service, within or without the State
      of
      New York, provided a reasonable time for appearance is allowed. Each party
      acknowledges and agrees that any controversy which may arise under this
      Agreement is likely to involve complicated and difficult issues, and therefore
      each party hereby irrevocably and unconditionally waives any right such party
      may have to a trial by jury in respect or any litigation directly or indirectly
      arising out of or relating to this agreement, or the breach, termination or
      validity of this Agreement, or the transactions contemplated by this
      Agreement.

    

    14.    Indemnification.
      To the
      fullest extent permitted by, and subject to, the Company’ Certificates of
      Incorporation and By-laws, the Company shall indemnify and hold harmless
      Executive against any losses, damages or expenses (including reasonable
      attorney’s fees) incurred by him or on his behalf in connection with any
      threatened or pending action, suit or proceeding in which he is or becomes
      a
      party by virtue of his employment by the Company or any affiliates or by reason
      of his having served as an officer or director of the Company or any other
      corporation at the express request of the Company, or by reason of any action
      alleged to have been taken or omitted in such capacity.

    

    15.    Severability.
      If any
      provision of this Agreement is held to be invalid, illegal, or unenforceable,
      that determination will not affect the enforceability of any other provision
      of
      this Agreement, and the remaining provisions of this Agreement will be valid
      and
      enforceable according to their terms.

    

    16.    Successors
      to Company.
      Except
      as otherwise provided herein, this Agreement shall be binding upon and inure
      to
      the benefit of Executive and the Company and any successor or assign of the
      Company, including, without limitation, any corporation acquiring, directly
      or
      indirectly, all or substantially all of the assets of the Company, whether
      by
      merger, consolidation, sale or otherwise (and such successor shall thereafter
      be
      deemed embraced within the term “Company” for the purposes of this Agreement),
      but shall not otherwise be assignable by the Company. The services to be
      provided by Executive hereunder may not be delegated nor may Executive assign
      any of his rights hereunder.

    

    17.    No
      Restrictions.
      Executive represents and warrants that as of the date of this Agreement
      Executive is not subject to any contractual obligations or other restrictions,
      including, but not limited to, any covenant not to compete, that could interfere
      in any way with his employment hereunder.

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    

    18.    Miscellaneous.

    (a)    This
      Agreement constitutes the entire understanding of the parties with respect
      to
      the subject hereof, may be modified only in writing, is governed by laws of
      New
      York, without giving effect to the principles of conflict of laws thereof,
      and
      will be binding and inure to the benefit of Executive and Executive’s personal
      representatives, and the Company, their successors and assigns.

    

    (b)    If
      Executive should die while any amount would still be payable to him under this
      Agreement if he had continued to live, all such amounts, unless otherwise
      provided herein, shall be paid in accordance with the terms of this Agreement
      to
      Executive’s estate or legal representative.

    

    (c)    The
      failure of any of the parties hereto to enforce any provision hereof on any
      occasion shall not be deemed to be a waiver of any provision or succeeding
      breach of such provision or any other provision.

    

    (d)    All
      notices under this Agreement shall be given by registered or certified mail,
      return receipt requested, directed to parties at the following addresses or
      to
      such other addresses as the parties may designate in writing:

     

    If
      to the
      Company:

    

    AmTrust
      North America, Inc.

    59
      Maiden
      Lane, 6th
      Floor

    New
      York,
      New York 10038

    Attention:
      Barry D. Zyskind

    

    If
      to
      Executive

    

    Christopher
      M. Longo

    1269
      Gaynelle Avenue

    Streetsboro,
      Ohio 44241

    

    (e)    In
      furtherance and not in limitation of the foregoing, this Agreement supersedes
      any employment agreement between the Company and Executive, written or oral,
      and
      any such agreement hereby is terminated and is no longer binding on either
      party.

    

    19.    Key
      Man Insurance Authorization.
      At any
      time during the term of this Agreement, the Company will have the right (but
      not
      the obligation) to insure the life of Executive for the sole benefit of the
      Company and to determine the amount of insurance and type of policy. The Company
      will be required to pay all premiums due on such policies. Executive will
      cooperate with the Company in taking out the insurance by submitting to physical
      examination, by supplying all information required by the insurance company,
      and
      by executing all
      necessary documents. Executive, however, will incur no financial obligation
      by
      executing any required document, and will have no interest in any such
      policy.

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    

    21.    Counterparts.
      This
      Agreement may be executed in one or more counterparts, all of which shall be
      deemed to be duplicate originals.

    

    
      
        	AMTRUST
                NORTH AMERICA, INC.	 	 
	 	 	 
	 	 	 
	By:_______________________________________	
              	        
	
                Barry
                  D. Zyskind

              	 	
                Christopher
                  M. Longo

              

      

    

     

     

    
      
         

      

        -9-

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