Document:

Exhibit 10.9

 

 

LEASE

 

This Lease (the "Lease")
is entered into as of the 30th day of April, 2012 (the "Execution Date"), but is effective as of the 1st
day of February, 2012 (the “Effective Date”), between EuroBank (the "Landlord"), and Solitron Devices, Inc.
(the "Tenant").

 

Whereas, by virtue
of an Order Granting Plaintiff’s Emergency Motion to Collect Rents entered on December 22, 2011 by the Circuit Court of the
15th Judicial Circuit in and for Palm Beach County, Florida under Case No. 502011 CA019116XXXXMB (the "Order")
Landlord was granted the authority to exercise the rights of the landlord, National Land Company, and to take possession of, manage
and operate the property located at 3301 Electronics Way, West Palm Beach, Florida 33407 (the "Property"), which is part
of the Technology Place project (the "Project"); and

 

Whereas, Tenant presently
occupies approximately 46,963 square feet within the building (the "Building") located on the Property (the "Premises")
under a lease that expired on January 31, 2012 (the "Original Lease").

 

Now Therefore, for
good and valuable consideration, the receipt of which is hereby acknowledged and for the mutual promises set forth herein, Landlord
does hereby lease to Tenant the Premises, including the right, at no additional expense, to use the common areas, the exclusive
right to 60 parking spaces and the non-exclusive right to 40 parking spaces adjacent to the Premises (excluding those 150 parking
spaces assigned exclusively to MV Transportation prior to the date hereof), and means of access thereto adjacent to the Premises,
to be used and occupied by Tenant for office, research, sales, manufacturing, and distributing uses, and any uses incidental thereto,
for an initial term of four (4) years and eleven months (the "Initial Term"), beginning February 1, 2012 (the "Commencement
Date") and ending December 31, 2016 (the "Expiration Date").

 

Landlord hereby grants
Tenant the option to extend the Initial Term of this Lease for an additional period of five (5) years which shall begin on January
1, 2017 and end on December 31, 2021 (the "Extension Term"). For purposes of this Lease, "Term" shall mean
the Initial Term of this Lease and the Extension Term, if so exercised. This option shall be effective immediately upon the Effective
Date and shall expire unless exercised by the Tenant pursuant to the terms of this Lease. The option to extend the Initial Term
of this Lease must be exercised by the Tenant giving written notice to Landlord at least one hundred eighty (180) days before December
31, 2016 or it will be waived. Provided this Lease is not then in default by Tenant, after all applicable grace and cure periods,
Tenant may exercise the option to extend the Initial Term only by delivering a written notice to Landlord signed by the Tenant
on or before the date provided for herein for such exercise. The notice must be sent by Federal Express or other similar courier,
hand delivery, or United States mail. If sent by United States mail it shall be sent by certified mail in which case it shall be
considered delivered when deposited in the United States Mail with sufficient postage affixed.

 

    	 

    	 	

    
  

A base rent of $29,743.23
a month, plus sales tax, based on 46,963 square feet at $7.60 a square foot) (the "Base Rent") shall be paid to the Landlord
on the first day of each and every month in advance without demand at 1901 Ponce de Leon Boulevard, Coral Gables, Florida 33134.
Landlord acknowledges and agrees that it has already received the Base Rent from Tenant for the months of January 2012, February
2012, March 2012 and April 2012.

 

Commencing on January
1, 2013 and on the 1st day of January of every subsequent year of the Term of this Lease, including the Extension Term
if exercised, the Base Rent shall be increased to compensate for changes in the cost of living based upon the following:

 

a. The “Index” shall be
the Consumer Price Index for All Urban Consumers (CPI-U), U.S. City Average, (1982-84 = 100) published by the Bureau of
Labor Statistics of the Unites States Department of Labor. If said Bureau shall not publish the same, then with the use of
such conversion factor, formula or table for converting the Index as may be published by the Bureau of Labor Statistics or,
if said Bureau shall not publish the same, then with the use of such conversion factor, formula or table as may be published
by Prentice Hall, Inc., or, in the absence of such publication, by any other nationally recognized publisher or
similar statistical information. In the event the Index shall cease to be published, then, for the purposes of this
Lease, there shall be substituted for the Index such other index as Landlord and Tenant shall reasonably agree upon.

 

b."Base
Index" shall mean the Index in effect on December of 2011.

 

c."Comparison Month"
shall mean the month of December of 2012 and the month of December of every subsequent year of the Initial Term of this Lease,
including the Extension Term if exercised.

 

d."Date of Rental Adjustment"
shall mean the 1st day of January of 2013 and the 1st day of January of every subsequent year of the Initial
Term of this Lease, including the Extension Term if exercised.

 

e."Percentage
Increase" shall mean the percentage equal to the fraction, the numerator of which shall be Index in the Comparison Month less
the Base Index, and the denominator of which shall be the Base Index. If the Index in a Comparison Month shall exceed the Base
Index, then the base rent payable for the ensuing lease year until the next Date of Rental Adjustment shall be increased by
the Percentage Increase. Provided, however, that in no event shall the Base Rent payable hereunder be increased by less than three
percent (3%) nor by more than five percent (5%) per annum on any Date of Rental Adjustment.

 

The following express
stipulations and conditions are made a part this of this Lease:

 

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FIRST: Landlord
will make the Landlord Improvements described in Exhibit A attached hereto. Throughout the Term of this Lease, Landlord covenants
and agrees, at Landlord's sole cost, to maintain and repair the roof, the common areas (including, without limitation, those portions
of the land and Building not included within the leasable area of the Premises, the parking areas, private drives, entrances, sidewalks,
and landscaping and groundskeeping) plumbing in the common areas and lines thereto, exterior walls, foundations, structure, the
building fire alarm system, electrical service to the building, heating ventilating and air conditioning ("HVAC"), sprinkler
systems and plumbing to the Building and other exterior portions of the Premises and to provide service contracts for HVAC and
pest control, which such service contracts shall provide for monthly service at a minimum. Subject to the forgoing, Tenant hereby
otherwise accepts the Premises in the condition they are in at the beginning of this Lease and with no warranties by the Landlord
as to their fitness for any particular purpose. Other than the improvements and maintenance to be performed by Landlord, Tenant
agrees that it will, at its own cost and expense, make all necessary repairs to the interior of the Premises and maintain said
Premises in the same condition, order and repair as they are at the Commencement Date, excepting only reasonable wear and tear
and casualty arising from the use thereof under this Lease, and to make good to said Landlord immediately upon demand, any damage
of the Building, caused by any act or neglect of Tenant, or of any person or persons in the employ or under the control of the
Tenant. Tenant shall upon the expiration or sooner termination of this Lease hereof, surrender the Premises to the Landlord in
good condition, broom clean, ordinary wear and tear and damage from the causes beyond the reasonable control of Tenant excepted.
Subject to the Sixth Section below, Tenant shall contract directly for its electrical service to the Premises and Tenant shall
be responsible for its telephone service and all costs to install and maintain same.

 

In the event that Landlord
does not complete the Landlord Improvements within a reasonable time frame, which aside from Item 5 in Exhibit A regarding the
heating and the separating of the electrical and air conditioning systems pursuant to the Sixth Section below, shall occur within
ninety (90) days from the Execution Date, or does not otherwise perform its ongoing maintenance obligations under the Lease, then
the Tenant shall have the right to give the Landlord written notice of such failure to make the applicable Landlord Improvement,
repair or maintenance obligation, and if Landlord has not commenced such Landlord Improvement, repair or maintenance obligation
within thirty (30) days after such notice and does not diligently pursue completion of same, Tenant shall have the right to make
such repairs on the Landlord's behalf and Landlord shall reimburse Tenant the cost of such repairs within fifteen (15) days after
request therefor, together with copies of the applicable invoices. The cost of the repairs contracted by Tenant shall be reasonable
and customary and shall be reasonably approved by Landlord in advance in writing. .

 

SECOND: All
personal property placed or moved in the Premises above described shall be at the risk of the Tenant or owner thereof, and except
for the failure to fulfill Landlord's obligations hereunder or the negligence or intentional misconduct of Landlord, Landlord shall
not be liable for any damage to said personal property, or to the Tenant arising from the bursting or leaking of water pipes, or
from any act of negligence of any co-tenant or occupants of the Building or of any other person whomsoever. Notwithstanding the
foregoing, Landlord agrees to take such actions as reasonably necessary, including sending notices of non-compliance to other tenants
at the Property for the correction, prevention and abatement of nuisances or non-compliance with all statutes, ordinances, rules,
orders, regulations and requirements of the federal, state, county and city government and any and all departments and bureaus
applicable to the Property or the adjacent premises, including, but not limited, to requiring adjacent tenants to the Premises
to dispose of rubbish and garbage in applicable disposal areas. Further, nothing in the foregoing shall mean that Tenant shall
not have the right to pursue all of its rights and remedies against co-tenants or other parties under all rights and remedies at
law and in equity. The Premises contain equipment, appliances, and fixtures which are and shall remain the property of the Tenant.

 

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THIRD: Tenant
shall promptly execute and comply with all statutes, ordinances, rules, orders, regulations and requirements of the federal, state,
county and city government and of any and all departments and bureaus applicable to said Premises ("Laws"), for the correction,
prevention, and abatement of nuisances or other grievances in, upon, or connected with said Premises during said Term; and shall
promptly comply with and execute all rules, orders and regulations of the Southeastern Underwriters Association for the prevention
of fires, at Tenant's cost and expense. Landlord makes no warranties about the existence or non-existence of any violation at the
commencement of this Lease. Notwithstanding the foregoing, Tenant shall have no obligation with respect the structure of the Property
or any of the common areas or the Premises, and shall have no obligation to make any improvements or alterations to the Property,
the common areas or the Premises to meet any applicable Laws.

 

FOURTH: In
the event the Premises or the Building, or such portion thereof, shall be destroyed or so damaged or injured by fire or other casualty
during the Term of this Lease, whereby the same shall be rendered untenantable then the Landlord shall have the right to render
such portion of the Property and the Premises tenantable by repairs within ninety (90) days therefrom. If said Premises or the
Building are not rendered tenantable within said time, or are not reasonably expected to be repaired within ninety (90) days, or
if any part of the Building which includes a substantial portion of the Premises is taken by an exercise of the right of eminent
domain, it shall be optional with either party hereto to cancel this Lease by giving notice to the other party within thirty (30)
days of the occurrence of such casualty or the effective date of such taking, and in the event of such cancellation the rent shall
be paid only to the date of such fire casualty or taking. The cancellation herein mentioned shall be evidenced in writing. If the
Lease is not cancelled, rent shall be abated from the date of casualty until the Premises are rendered tenantable and Landlord
shall use its best efforts and due diligence to restore the Premises to the proper condition for Tenant's use and occupancy, provided
that Landlord shall not be required to rebuild or restore any improvements or alterations made by Tenant to the Premises. If for
any reason, restoration shall not be substantially completed within such ninety (90) days period, Tenant shall have the further
right to terminate this Lease by giving notice to Landlord thereof within thirty (30) days after the expiration of such ninety
(90) day period.

 

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FIFTH: If
the Tenant shall abandon or vacate said premises before the end of the Term of this Lease (and such abandonment or vacation is
not a result of renovations, casualty, condemnation or such other rights Tenant may have under the Lease), the Landlord may, after
written notice to Tenant and Tenant's failure to cure same within sixty (60) days thereof, at Landlord's option, forthwith cancel
this Lease or the Landlord may enter said Premises as the agent of the Tenant, by force or otherwise, without being liable in any
way therefor, and relet the Premises with or without any furniture that may be therein, as the agent of Tenant, at such price and
upon such terms and for such duration of time as the Landlord may determine, and receive the rent therefor, applying the same to
the payment of the rent due by these presents, and if the full rental herein provided shall not be realized by Landlord over and
above the reasonable and actual expenses to Landlord in such re-letting, the said Tenant shall pay any deficiency, and if more
than the full rental is realized Landlord may retain the excess, but shall not have the right to also collet the underlying rental
from Tenant. All actions taken by Landlord shall be in accordance with Florida law.

 

SIXTH: Tenant shall pay
for the cost of electrical and air conditioning service to the Premises used by Tenant, subject to the provisions herein. Until
electrical and air conditioning service to the Premises is separately metered, Tenant shall pay Landlord $5,760 a month, inclusive
of any sales tax, it being agreed and understood that Tenant is exempt from sales tax for electrical and air conditioning service,
as additional rent as the estimated cost of electrical service to the Premises currently being paid by Landlord (the "Estimated
Electrical Costs"). Landlord acknowledges that it has already received payment of the Estimated Electrical Costs from Tenant
for the months of February 2012, March 2012 and April 2012 and no amount is due for January 2012. Landlord agrees that until the
air conditioning and electricity are separately metered, and to the extent in Landlord's control thereafter, to provide 24 hour
air conditioning for 365 days a year, less reasonable repair time, to the Premises. Landlord will cooperate with Tenant to provide
the reasonable and necessary temperature and humidity ranges required by Tenant in the Premises in order to assist Landlord in
its efforts to minimize costs for air conditioning usage. Once electrical and air conditioning service to the Premises is separately
metered, (i) if the actual cost of electrical and air conditioning service to the Premises (as determined over a three month average
of actual costs) is greater than the Estimated Electrical Costs paid by Tenant, Tenant shall reimburse Landlord for such difference
within ten (10) days after evidence thereof or (ii) if the actual cost of electrical and air conditioning service to the Premises
(as determined over a three month average of actual costs) is less than the Estimated Electrical Costs paid by Tenant, Tenant shall
receive a credit against the next payments of Base Rent due for such difference. Once electrical and air conditioning service to
the Premises is separately metered, Tenant agrees that it will contract and pay for electric and air conditioning service to the
Premises including electric service associated with the heating, ventilating, and air conditioning of the Premises. Landlord shall
cause the separate metering of the electrical and air conditioning service to the Premises to occur within ninety (90) days of
the Execution Date. Such separate metering of the electricity and air conditioning service shall be at the sole cost and expense
of the Landlord, except that Tenant agrees to reimburse Landlord for a portion of the cost and expense thereof up to the sum of
$3,500.00 after such separate metering is completed and upon presentation of an invoice, and applicable back-up documentation,
evidencing the complete cost of separating the meters for the Premises.

 

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Aside from the Estimated Electrical Costs
and, the direct actual electrical and air conditioning costs following the separate metering, which will be paid directly to the
service provider following such separate metering, Tenant shall not have any obligation to pay to Landlord any operating expenses
or common area maintenance, including without limitation, any portion of real estate taxes, insurance, building fire alarm systems,
water, sewer, trash collection, property security and monitoring, landscaping, groundskeeping, maintenance and repair with respect
to the common area of the Premises and the Building, land and Project or any association or management fees or charges, it being
agreed and understood that such costs are incorporated and included in the Base Rent paid by Tenant hereunder.

 

SEVENTH:Reserved.

 

EIGHTH: The
Landlord, or any of his agents, shall have the right to enter said Premises during business hours after reasonable advance notice,
which such notice shall not be less than 24 hours, to Tenant to (i) examine the same or (ii) to exhibit said Premises for sale
or (iii) to exhibit the Premises for rent at any time within ninety (90) days before the expiration of the Initial Term (or if
Tenant has exercised its renewal option, then only within ninety (90) days before the expiration of the Renewal Term).

 

NINTH:Reserved.

 

TENTH:Reserved.

 

ELEVENTH:If
the Tenant shall be declared insolvent or if bankruptcy proceedings shall be begun (and shall not be discharged within ninety (90)
days of such filing) by or if Tenant is adjudged bankrupt before the end of said Term, the Landlord is hereby irrevocably authorized
at its option, to forthwith cancel this Lease, as for a default. Landlord may elect to accept rent from such receiver, trustee,
or other judicial officer during the term of their occupancy in their fiduciary capacity without affecting Landlord's rights as
contained in this Lease, but no receiver, trustee or other judicial officer shall ever have any right, title or interest in or
to the above described property by virtue of this Lease.

 

TWELFTH: It
is understood and agreed between the parties hereto that written notice mailed or delivered to the Premises leased hereunder,
shall constitute sufficient notice to the Tenant and written notice mailed or delivered to the office of the Landlord shall constitute
sufficient notice to the Landlord, to comply with terms of this Lease and with the requirements of chapter 83, Florida Statutes.

 

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FOURTEENTH:It
is further understood and agreed between the parties hereto that any sum to be paid by Tenant under this Lease, whether directly
to Landlord or not, or otherwise accruing under this Lease shall be considered as rent due and shall be included in any lien for
rent due and unpaid or in any action for possession of the premises due to failure to pay rent.

 

FIFTEENTH:Tenant
shall not cause or permit anything to be done in or about the Premises nor bring or keep anything therein which is not within the
permitted use of the Premises or which will in any way increase the existing rate of or effect any fire or other insurance upon
the Building or any of its contents, or cause a cancellation of any insurance policy covering said Building or any part thereof
or any of its contents. Tenant shall not allow the Premises to be used for any improper, immoral, unlawful or objectionable purpose;
nor shall tenant cause, maintain or permit any nuisance in, on or about the Premises. Tenant shall not commit or allow to be committed
any waste in or upon the Premises. Notwithstanding the foregoing, Landlord agrees and acknowledges that Tenant's existing operations
as a manufacturer and distributor of power components and circuitry products does not violate any of the terms of this Lease.

 

SIXTEENTH:Tenant
shall not make or allow to be made any alterations, additions or improvements to the interior of the Premises or any part thereof
without first preparing all necessary plans and obtaining all necessary permits to conduct such work as may be required under applicable
Laws. No alterations or additions to the structure or to the exterior of the Premises shall be made without the written consent
of Landlord. Said consent shall not be unreasonably withheld nor shall payment be required therefor. All such alterations, additional
or improvements conducted by Tenant shall be done at Tenant's sole cost and expense. Any alterations, additions or improvements
to or of said Premises, including, but not limited to, wall covering (but excluding any trade fixtures) shall at once become a
part of the realty and belong to the Landlord and shall be surrendered with the Premises. Notwithstanding the foregoing, Tenant
shall have the right to continue to display any signage that exists on the or about the Premises as of the Effective Date (the
"Existing Signs"). Other than the Existing Signs, subject to the approval of Landlord of the type, the design, the method
of installation, the number and the location of the signs, which approval shall not be unreasonably withheld or delayed, Tenant
shall be entitled to display its business signs on or about the Premises and the Building. Tenant acknowledges that it must comply
with the conditions, covenants and restrictions of the Project as to any exterior improvement and signage.

 

EIGHTEENTH:Tenant
shall keep the Premises and the Property in which the premises are situated free from any liens arising out of any work performed,
materials furnished or obligations incurred by or on behalf of Tenant. In the event that any mechanics' and materialmen's liens
are filed against the Property and not Tenant's leasehold estate in the Premises, Tenant shall be required to remove same within
thirty (30) days' notice of Landlord or to execute the appropriate bonds as required to remove same.

 

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NINETEENTH:Tenant
shall not, either voluntarily or by operation of law, sublease, assign, transfer, mortgage, pledge, hypothecate or encumber this
Lease or any interest therein without Landlord's consent which shall not be unreasonably withheld. Any consented assignment or
subletting shall in no way relieve Tenant of any liability under this Lease, unless agreed to by Landlord in writing. Any assignment
or subletting not consented to by Landlord shall be void, and shall at the option of the Landlord, constitute a default under the
terms of this Lease.

 

TWENTIETH:Tenant
shall indemnify and hold harmless Landlord against and from Tenant's use of the Premises or from the conduct of its business or
from any activity work, or other things done, permitted or suffered by the Tenant in or about the Premises, and shall further indemnify
and hold harmless Landlord against and from any and all claims arising from any breach or default in the performance of any obligation
on Tenant's part to be performed under the terms of this Lease, arising from any act or negligence of the Tenant, or any officer,
agent, employee, guest, or invitee of the Tenant, and from all reasonable costs, attorney's fees, and liability incurred in or
about the defense of any such claim or any action or proceeding brought thereon. If any action or proceeding be brought against
Landlord by reason of such claim, Tenant upon notice from Landlord, shall defend the same at Tenant's expense by counsel reasonably
satisfactory to Landlord. Except as otherwise set forth herein, Tenant, as a material part of the consideration to Landlord, hereby
assumes all risk of damage to property or injury to persons in, upon or about the Premises, from any cause other than Landlord's
failure to fulfill its obligations hereunder and the intentional or negligent acts of Landlord or its employees, contractors, officers,
directors and agents; and Tenant hereby waives all claims in respect thereof against Landlord. Tenant shall give prompt notice
to Landlord in case of casualty or accidents in the Premises.

  

TWENTY-FIRST:Tenant
shall, at tenant's expense, obtain and keep in force during the Term of this Lease a policy of comprehensive public liability insurance
insuring Landlord and Tenant against any liability arising out of the ownership, use, occupancy, or maintenance of the Premises.
The coverages provided by such policy shall include general liability, excess liability, and business equipment. Such insurance
shall be in the amount of not less than $500,000.00 for general liability and in the amount of not less than $1,000,000.00 for
excess liability. Such insurance shall further insure Landlord and Tenant against liability or property damage of at least $1,000,000.00.
If Tenant shall fail to procure and maintain said insurance, Landlord may, but shall not be required to, after five (5) business
days' written notice to Tenant, procure and maintain said insurance, but at the expense of Tenant which shall become due as additional
rent to be paid by tenant under this Lease. Insurance required hereunder shall be in companies rated A:XII or better in "Best's
Key Rating Guide". Tenant shall deliver to Landlord prior to right and entry, copies and policies of liability insurance required
herein or certificates evidencing the existence and amount of such insurance with loss payable clauses satisfactory to landlord.
No policy shall be cancelled or subject to reduction of coverage without thirty (30) days' prior notice to Landlord. Landlord shall
procure and maintain in force during the Term of this Lease, at no additional expense of Tenant, insurance upon the Building and
all of the common areas with a responsible insurance company or companies providing such protections as Landlord deems appropriate.
Notwithstanding anything in the foregoing to the contrary, in addition to the foregoing insurance requirements, any successor or
assign of Eurobank, as lessor, will be required to maintain such insurance in accordance with customary standards for buildings
similar to the Building located in the West Palm Beach, Florida area, including, without limitation, insurance providing protection
to the extent of not less than the full replacement cost of the Building against all casualties included under standard insurance
industry practices within the classification "Fire and Extended Coverage Vandalism and Malicious Mischief and Public Liability."

 

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TWENTY-SECOND:(i)
Riders: Riders and addendums, if any, affixed to this Lease are a part hereof. Except for Exhibit A, no riders or addenda are
affixed to this Lease as of the Effective Date.

 

(ii)Waiver: The
waiver by Landlord or Tenant of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term,
covenant or condition or any subsequent breach of the same or any other term, covenant or condition contained. The subsequent acceptance
of rent hereunder by Landlord shall not be deemed to be a waiver of any preceding default by Tenant of any term, covenant or condition
of this Lease, other than failure of the Tenant to pay the particular rental so accepted, regardless of Landlord's knowledge of
such preceding default at the time of the acceptance of such rent.

 

(iii)Joint Obligation:
If there be more than one tenant the obligations hereunder imposed shall be joint and several.

 

(iv)Marginal headings
to the articles of this Lease are not a part of the Lease and shall have no effect upon the construction or interpretation of any
part hereof.

 

(v)Time: Time is
of the essence of this Lease and each and all of its provisions in which performance is a factor.

 

(vi) Successors and
Assigns: The covenants and conditions herein contained, subject to the provisions as to assignment, apply to and bind the
heirs, successors, executors, administrators and assigns of the parties hereto.

 

(vii)Recordation:Neither Landlord nor Tenant shall
record this Lease.

 

(viii) Quiet Possession:
Upon Tenant paying the rent reserved hereunder and observing and performing all the covenants conditions and provisions on Tenant's
part to be observed and performed hereunder, Tenant shall have quiet possession of the Premises for the entire Term hereof, subject
to all the provisions of this Lease.

 

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(ix)Late Charge:
Tenant hereby acknowledges that late payments by Tenant to Landlord of rent or other sums due hereunder will cause Landlord to
incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include
but are not limited to, processing and accounting charges, and late charges which may be imposed upon Landlord by terms of any
mortgage or trust deed covering the Premises. Accordingly, if any installment of rent or any sum due from Tenant shall not be received
by Landlord within ten (10) days after due, then Tenant shall pay to Landlord a late charge equal to five (5%) percent of such
overdue amount. The parties hereby agree that such late charges represent a fair and reasonable estimate of the cost that Landlord
will incur by reason of the late payment by Tenant. Any late charges shall be considered additional rent due.

 

(x)Prior Agreements:
This Lease contains all of the agreements of the parties hereto with respect to any matter covered or mentioned in this Lease,
and no prior agreements or understanding pertaining to any such matters shall be effective for any purpose. No provision of this
Lease may be amended or added to except by agreement in writing signed by the parties hereto or their respective successors in
interest. This Lease shall not be effective or binding on any party until fully executed by both parties hereto.

 

(xi)Partial Invalidity:
Any provision of this Lease which shall prove to be invalid, void, or illegal shall in no way affect, impair or invalidate any
other provision of hereof and such other provision shall remain in full force effect.

 

(xii)Cumulative
Remedies: No remedy or election hereunder shall be deemed exclusive but shall, whenever possible, be cumulative with all other
remedies at law or in equity.

 

(xiii)Choice of Law: This Lease shall be governed by
the laws of the State of Florida.

 

(xiv)Attorneys'
Fees:In the event of any action or proceeding brought by either party against the other under this Lease the prevailing party
shall be entitled to recover the reasonable fees and costs of its attorneys in such action or proceeding, including costs of appeal,
if any, in such amount as the court may adjudge reasonable as attorneys' fees.

 

(xv)Notices: All
notices and demands which may or are to be required to be given by either party on the other hereunder shall be in writing. All
notices and demands by the parties to each other shall be hand delivered or sent by certified United States mail, postage prepaid,
addressed to landlord at: 1901 Ponce de Leon Boulevard, Coral Gables, Florida 33134 and to tenant at: 3301 Electronics Way, West
Palm Beach, Florida 33407,, or to such other place as either party may from time to time designate in a notice to the other.

 

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(xvi)Counterparts:This
Lease may be executed in multiple counterparts, and by facsimile or PDF, each of which when taken together shall constitute the
entire instrument.

 

TWENTY-THIRD: Landlord
agrees to allow Tenant to continue to use, at no additional expense, the silos and servicing equipment currently in existence on
the outside of the Premises (including, the tanks for liquid hydrogen, liquid nitrogen, DI water tank, chilled water tank, DI tanks,
the well and RO system, the RO water tank the air compressors and forming gas system) so long as said silos and servicing equipment
are in compliance with all applicable codes. Any new or additional equipment (excluding repairs to and replacement of existing
equipment) may not be placed outside the Premises without the express written consent of Landlord, which consent shall not be unreasonably
withheld.

 

TWENTY-FOURTH: Tenant
agrees: (a) that except as hereinafter provided, this Lease is, and all of Tenant's rights hereunder are and shall always be, subject
and subordinate to any mortgages or security instruments (a "Mortgage") that now exist, or may hereafter be placed upon
the Premise or the Building, and to all advances made or to be made thereunder and to the interest thereon, and all renewals, replacements,
modifications, consolidations, or extensions thereof, and to any Declaration of Condominium now or at any future time recorded
affecting the Building or any portion thereof, provided that the holder of any such Mortgage, purchaser or condominium association
provides Tenant with a non-disturbance and attornment agreement in form and substance reasonably satisfactory to both Tenant and
the holder of such Mortgage, purchaser or condominium association; and (b) that, if the holder of any such Mortgage or if the purchaser
at any foreclosure sale or at any sale under a power of sale contained in any Mortgage shall at its sole option so request, Tenant
will attorn to and recognize the holder of such Mortgage or purchaser, as the case may be, as landlord under this Lease for the
balance then remaining of the Term, subject to all of the terms of this Lease provided that such Mortgagee or purchaser provides
Tenant with a non-disturbance and attornment agreement in form and substance satisfactory to both Tenant and such Mortgagee or
purchaser. Should Landlord or the holder of any Mortgage or purchaser desire confirmation of such subordination or attornment,
as the case may be, Tenant, upon written request from time to time, will execute and deliver without charge, and in form satisfactory
to Landlord, the holder of the Mortgage or the purchaser, all instruments and/or documents that may be requested to acknowledge
such subordination and/or agreement to attorn, in recordable form. Tenant hereby appoints Landlord or the holder of such Mortgage
(whichever makes such request) as Tenant's attorney-in-fact to execute such instruments upon default of Tenant in complying with
such request.

 

    	11

    	 

    
  

TWENTY-FIFTH: Under
the Original Lease, Tenant represents and warrants that it delivered a security deposit in the amount of Forty Thousand Dollars
($40,000.00) (the "Security Deposit"), which such security deposit was being held by National Land Company, as lessor,
under the Original Lease. Landlord represents and warrants that Landlord is not currently holding the Security Deposit and that
National Land Company has not delivered the Security Deposit to Landlord under the Order or otherwise. Landlord agrees to reasonably
cooperate with Tenant, at Tenant's expense, in seeking the return of the Security Deposit to Tenant.

   

 

In Witness Whereof,
the parties hereto have hereunto executed this instrument for the purpose herein expressed the day and year above written.

 

 

[Signatures on Next
Page]

 

    	12

    	 

    
 

 

	
        Signed, sealed and delivered

        in presence of:
	 	 	Landlord:
	 	 	 	April 30, 2012.
	 	 	 	 
	/s/ Robert Llanes	 	 	EuroBank
	Robert Llanes 	 	 	 
	 	 	 	 
	/s/ Robert Llanes 	 	By:	/s/ Leonard R. Whyte
	Robert Llanes 	 	 	Leonard R. Whyte, Exec. V-Pres. 
	 	 	 	 
	 	 	 	 
	 	 	By:	/s/ David Konfino
	 	 	 	David Konfino, Sr. Vice-Pres 
	 	 	 	 
	
        Signed, sealed and delivered

in
presence of:
	 	 	Tenant:
	 	 	 	April 30, 2012
	 	 	 	 
	/s/ Arthur Laplante	 	 	Solitron Devices, Inc.
	Arthur Laplante 	 	 	 
	 	 	 	 
	/s/ Jane L. Fogel	 	By:	/s/ Shevach Saraf
	Jane L. Fogel 	 	 	Shevach Saraf, President 

 

  

    	13

    	 

    
   

Exhibit A

Landlord Improvements 

 

		1.	Repair of the roof leaks.

		2.	Replacement and/or repair of the water shutoff valve
above the front offices’ restroom.

		3.	Repair of the potholes in the parking lot.

		4.	Separation of the air conditioning units that affect
the executive and comptroller’s offices and separation of the electricity and HVAC unit(s) servicing the leased premises.

		5.	If Eurobank is still in control of the Premises in
September of 2012, Landlord shall install heating service for the office area of the Premises by September 30, 2012.

 

    	14Exhibit 10.2

 

AMTRUST FINANCIAL SERVICES, INC.

2010 OMNIBUS INCENTIVE PLAN (AS AMENDED)

 

 

 

PERFORMANCE SHARE AWARD AGREEMENT

 

 

 

AmTrust Financial Services, Inc. a Delaware
corporation, (the “Company”), hereby grants performance shares (“Performance Shares”)
relating to shares of its common stock, $.01 par value, (the “Stock”) to the individual named below as
the Grantee, subject to the vesting conditions set forth in this Agreement and Exhibit A attached hereto. This grant is subject
to the terms and conditions set forth in (i) this Agreement, and (ii) the 2010 Omnibus Incentive Plan, as amended (the
“Plan”). Unless otherwise defined or specified herein, capitalized terms used in this Agreement are defined
in the Plan, and have the meaning set forth in the Plan.

 

	
        Award of Performance Shares 

         
	 	
        You have been granted 250,000 performance shares, subject to
        ultimate settlement in accordance with the terms and conditions of this Agreement, the Plan and the performance matrix attached
        hereto as Exhibit A (the “Performance Shares”). The actual realized number of shares may vary from 0
        to 375,000, as per the matrix contained in Exhibit A.

         

        Each Performance Share earned in accordance with this Agreement
        shall entitle you to receive a share of Restricted Stock. Performance Shares shall have no voting rights or rights to receive dividends
        or dividend equivalents until settled in Restricted Stock, consistent with the “Shareholder Rights” section
        below. Fractional shares shall be rounded up or down as appropriate and no cash settlements shall be made with respect to fractional
        shares eliminated by rounding.

         

	Grant Date	 	
        The effective date of this grant of Performance Shares is March
        26, 2012 (“Grant Date”), subject to shareholder approval of the amendments to the Plan on May 23, 2012
        with respect to shares that may be granted to eligible individuals during any given fiscal year.

         

	Settlement of Performance Shares	 	Provided you remain in Service (as defined below) on the Settlement Date (as defined below), and except as otherwise specifically set forth in this Agreement, upon the Committee determining and certifying the level of achievement of the performance metrics set forth on Exhibit A with respect to the Company’s two year fiscal operating period commencing on January 1, 2012 and ending on December 31, 2013 (the “Performance Period”), the Committee shall award you a number of shares of Restricted Stock following the Performance Period reflecting the level of attainment of the performance metrics in accordance with Exhibit A attached hereto during the Performance Period (“Earned Shares”). The Committee shall certify the level of achievement of the performance metrics during the Company’s first fiscal quarter in 2014 and, on the date of such certification (the “Settlement Date”), the Committee shall grant you the applicable number of Earned Shares. All Earned Shares shall be subject to additional vesting provisions and restrictions on transferability as defined herein and pursuant to the Plan (“Restricted Stock”). The Performance Shares and, if any, the number of Earned Shares and the number of shares of Restricted Stock are subject to adjustment under the Plan, as appropriate. 

 

    	1

    	 

    

 

	 	 	“Service” means that you are (i) an employee of the Company, (ii) a member of the Company’s Board of Directors, or (iii) otherwise providing services to the Company.
	 	 	 
	
        Termination of Service Prior to Settlement Date

         

        Death, Disability,

        By the Company without Cause, or by you for Good Reason
	 	
        If your Service terminates for any of the following events (i)
        by reason of death, (ii) Disability (as defined below), (iii) by the Company without Cause, or (iv) by you for Good Reason, prior
        to the Settlement Date, then on the Settlement Date, you shall receive the Restricted Stock that you would have received if you
        had remained in Service on the Settlement Date, based on the actual level of achievement of the performance metric, and 50% of
        such shares of Restricted Stock shall vest, while any remaining unvested Restricted Stock shall be forfeited.

         

        For purposes of this Agreement, “Disability”
        shall mean you are unable to perform the duties of your Service (or other services) (i) for a period of 90 consecutive days, or
        (ii) any 120 days during any consecutive 12 month period.

         

	For Cause, or without Good Reason	 	
        If your Service is terminated without Good Reason (as defined
        in your Employment Agreement dated January 1, 2005, as amended October 6, 2010), or by the Company for Cause (as defined below),
        you shall immediately forfeit all rights to your Performance Shares and/or vested (but undelivered) and unvested Restricted Stock
        and this award shall immediately terminate.

         

        For purposes of this Agreement, “Cause”
        shall include (a) willful misconduct or gross negligence; (b) conviction of a felony or conviction of a crime involving moral turpitude;
        (c) any act constituting fraud or the misappropriation or embezzlement of money or other property of the Company; or (d) any willful
        act or course of conduct by you constituting an abuse of office or authority which has a material adverse impact on the Company’s
        reputation or financial condition.

         

	Change in Control (Prior to Settlement)	 	
        In the event of a Change in Control (as defined below) prior
        to the Settlement Date, the Board of Directors, in its sole discretion, (a) may determine what level of performance would have
        been achieved through the date of the Change in Control and shall grant you the appropriate number of Earned Shares based upon
        (i) the actual level of performance achieved as determined by the Committee consistent with the matrix contained in Exhibit A,
        and (ii) after multiplying by a fraction, the numerator of which is the number of days elapsed in the performance period on the
        date of the Change in Control, and the denominator, which shall be 730, (b) may continue (if possible) the Performance Share award
        until the conclusion of the Performance Period, or (c) may cancel such Performance Share award in its entirety, and make a substitute
        award to you, consistent with the Plan.

         

 

    	2

    	 

    

 

	Change in Control Defined	 	
        For purposes of this Agreement, “Change in Control”
        shall mean:

        (i) any “person” (as such term is used in Section
        13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including any syndicate
        or group deemed to be a “person” under Section 13(d)(3) of the Exchange Act) other than Barry Zyskind, George Karfunkel,
        Michael Karfunkel, their spouses, any lineal descendants, any trust or charitable foundation controlled by any of them, their spouses
        or their lineal descendants, any subsidiary or any employee benefit plan of the Company or a subsidiary or former subsidiary, is
        or becomes a beneficial owner, directly or indirectly, of stock of the Company representing 50% of more of the total voting power
        of the Company’s then outstanding stock;

         

        (ii) a tender offer (for which a filing has been made with the
        Securities and Exchange Commission (the “SEC”) that purports to comply with the requirements of Section 14(d) of the
        Exchange Act, and the corresponding SEC rules) is made for the stock of the Company. In case of a tender offer described in this
        paragraph (ii), the “Change of Control” will be deemed to have occurred any time during the offer when the person (using
        the definition in (i) above) making the offer owns or has accepted for payment stock of the Company with 50% or more of the total
        voting power of the Company's outstanding stock; or

         

        (iii) individuals who were the Board’s nominees for election
        as directors of the Company immediately prior to a meeting of the stockholders of the Company involving a contest for the election
        of directors shall not constitute a majority of the Board following the election.

         

	Restricted Stock and Vesting after Settlement of Performance Shares	 	Provided you remain in Service continuously from the Settlement Date until the applicable vesting date, the Restricted Stock shall vest and cease to be Restricted Stock (but shall remain subject to the other terms of this Agreement and the Plan) as follows:

 

 

	 	Date	 	Vesting	 
	 	December 31, 2014	 	 	50	%
	 	December 31, 2015	 	 	50	%

 

	
        Termination after Settlement Date 

         

        Death, Disability, without Cause or by you for Good
Reason 
	 	
        If your Service terminates for any of the following events (i)
        by reason of death, (ii) Disability, (iii) by the Company without Cause, or (iv) by you for Good Reason, on or after the Settlement
        Date, 50% of the total number of unvested shares of Restricted Stock granted pursuant to this Agreement shall vest, and all remaining
        unvested shares shall be forfeited.

         

 

	For Cause, or without Good Reason	 	
        If your Service is terminated without Good Reason (as defined
        in your Employment Agreement dated January 1, 2005, as amended October 6, 2010), or by the Company for Cause, each on or after
        the Settlement Date, then you shall immediately forfeit all rights to your vested (but undelivered) and unvested Restricted Stock
        and this award shall immediately terminate.

         

 

    	3

    	 

    

 

	
        Termination without Cause within 12 Months of Change in Control;
        after Settlement of Shares

         
	 	
        If your Service with the Company (or any affiliate) is terminated
        by the Company without Cause after the Settlement Date and within 12 months following the effective date of a “Change of
        Control,” the Board of Directors may accelerate the vesting of any Restricted Stock held by you.

         

	Restricted Stock Ownership and Transferability	 	
        Subject to the restrictions set forth in the Plan and this Agreement,
        you shall possess all incidents of ownership of the Restricted Stock received in settlement of Performance Shares granted hereunder
        (if any), including the right to receive dividends with respect to such Restricted Stock and the right to vote such Restricted
        Stock.

         

        Restricted Stock may not be transferred, assigned, pledged or
        hypothecated, whether by operation of law or otherwise (except by the laws of descent and distribution) nor may shares of Restricted
        Stock be made subject to execution, attachment or similar process.

         

	Certificate; Book Entry Form; Legend	 	
        The Company shall issue the shares of Restricted Stock either
        (i) in certificate form or (ii) in book entry form, registered in your name, with legends, or notations, as applicable, referring
        to the terms, conditions, and restrictions applicable to the Restricted Stock. Any certificate issued for Restricted Stock prior
        to vesting will be inscribed with the following legend:

         

        “The transferability of this certificate
        and the shares of stock represented hereby are subject to the terms and conditions (including forfeiture) relating to Restricted
        Stock contained in the AmTrust Financial Services, Inc. 2010 Omnibus Incentive Plan, as amended, and an Agreement entered into
        between the registered owner and AmTrust Financial Services, Inc. Copies of such Plan and Agreement are on file at the principal
        office of AmTrust Financial Services, Inc.”

         

	
        Escrow

         
	 	
        Any Restricted Stock issued in settlement of Performance Shares
        shall be held by the Company in escrow for your benefit. Upon vesting, a certificate for the vested shares shall be issued to you
        free of the restrictive legend.

         

	Vesting: Delivery of Shares	 	Upon vesting, restrictions related to the vested shares of Restricted stock shall lapse and the Company shall, as applicable, either remove the notations on such vested shares issued in book-entry form or deliver to you or your personal representative a stock certificate representing the number of shares of Stock, free of any restrictive legend, equal to the number of vested shares.  If certificates representing such Restricted Stock had previously been delivered to you, you shall return such certificates to the Company, complete with any necessary signatures or instruments of transfer prior to the issuance by the Company of shares of Stock without the restrictive legend.

 

    	4

    	 

    

 

	Income Taxes	 	
        (a) You shall pay to the Company promptly upon request, and
        in any event at the time you recognize taxable income in respect of the Restricted Stock (whether in connection with the grant
        or vesting of the Restricted Stock, the making of an election under Section 83(b) of the Code in connection with the Award as described
        below or otherwise), an amount equal to the taxes the Company determines it is required to withhold under applicable tax laws with
        respect to the Restricted Stock. Such payment may be made by any of, or a combination of, the following methods: (i) cash or check;
        (ii) out of your current compensation; (iii) in the sole discretion of the Company, by surrender of other shares of Common Stock
        of the Company that (a) in the case of shares initially acquired from the Company (upon exercise of a stock option or otherwise),
        have been owned by you for such period, if any, as may be required to avoid a charge to the Company’s earnings and (b) have
        a Fair Market Value on the date of surrender equal to the amount required to be withheld; or (iv) in the sole discretion of the
        Company, by electing to have the Company withhold or otherwise reacquire from you shares of Restricted Stock that vest pursuant
        to the terms hereof having a Fair Market Value equal to the minimum statutory amount required to be withheld in connection with
        the vesting of such shares. For these purposes, the Fair Market Value of the shares to be withheld or repurchased, as applicable,
        shall be determined on the date that the amount of the tax to be withheld is to be determined (the “Tax Date”).

         

        All elections by you to have the shares withheld or repurchased
        to satisfy tax obligations shall be made in writing in a form acceptable to the Company and shall be subject to the following restrictions:

         

        (i)       the
        election must be made on or prior to the applicable Tax Date;

         

        (ii)      once
        made, the election shall be irrevocable as to the particular shares as to which the election is made and you acknowledge that this
        irrevocable written instruction is intended to constitute an instruction pursuant to Rule 10b5-1 of the Exchange Act;

         

        (iii)     all
        elections shall be subject to the consent or disapproval of the Company; and

         

        (iv)      If
        you are subject to Section 16 of the Exchange Act, the election must comply with the applicable provisions of Rule 16(b)-3 promulgated
        under the Exchange Act and shall be subject to such additional conditions or restrictions as may be required thereunder to qualify
        for the maximum exemption from Section 16 of the Exchange Act with respect to Plan transactions.

         

	 	 	
        Section 83(b) Election. You hereby acknowledge
that you may file an election pursuant to Section 83(b) of the Code to be taxed currently on the fair market value of the shares
of Restricted Stock received in settlement of Performance Shares, if any (less any purchase price paid for the shares), provided
that such election must be filed with the Internal Revenue Service no later than thirty (30) days after the date of the Award.
You will seek the advice of your own tax advisors as to the advisability of making such a Section 83(b) election, the potential
consequences of making such an election, and the other tax consequences of the Award under federal, state, and any other laws
that may be applicable. The Company and its affiliates and agents have not and are not providing any tax advice to you. 

 

    	5

    	 

    

 

	
        Recapture Rights

         
	 	
        In the event that you violate any of your obligations pursuant
        to the Confidentiality, Non-Competition, or Non-Solicitation provisions of this Agreement, you agree to return to the Company,
        within five days of receipt of written demand from the Company, any gains you realize from the sale of all or any portion of the
        Restricted Stock during the 12 months immediately preceding such violation, and any remaining unsold portion of your Restricted
        Stock shall be immediately and totally forfeited.

         

	Confidentiality	 	
        During your Service, you will have access to confidential or
        proprietary data or information of the Company (and its affiliates) and its operations. You agree not to at any time divulge or
        communicate the Confidential Information (defined below) to any person, nor shall you direct any employee to divulge or communicate
        to any person (other than to a person bound by confidentiality obligations similar to those contained herein and other than as
        necessary in performing your duties hereunder), or use to the detriment of the Company (or any of its affiliates) or for the benefit
        of any other person, any Confidential Information. This restriction shall survive your Service hereunder, whether by the normal
        expiration thereof or otherwise.

         

        The term “Confidential Information”
        shall mean all information, whether or not reduced to written or recorded form, that is related to the Company and that is not
        generally known or accessible to members of the public and/or competitors of the Company nor intended for general dissemination,
        whether furnished by the Company or compiled by the employee, including, without limitation, relating to the Company’s (or
        any affiliate’s) financial performance, customers, existing or proposed future projects, prospects, or business strategies,
        personnel information, financial information, customer lists, supplier lists, trade secrets, information regarding operations,
        systems, services, know-how, computer and any other processed or collated data, computer programs, pricing, marketing and advertising
        data.

         

        You understand the Company intends to maintain the confidentiality
        of the Confidential Information notwithstanding that employees of the Company may have free access to the information for the purpose
        of performing their duties with the Company, and notwithstanding that employees not expressly bound by agreements similar to this
        agreement may have access to such information for job purposes. You acknowledge that Confidential Information need not be marked
        as such to preserve the confidential nature of the information.

 

    	6

    	 

    

 

	Non-Competition	 	
        You acknowledge that (a) in the course of your Service with
        the Company and its affiliates, you have, and will continue to, become familiar with the Company’s and its affiliates’
        trade secrets, methods of doing business, business plans and other valuable confidential and proprietary information concerning
        the Company, its affiliates, their customers and business partners and that your services have been and will be of special, unique
        and extraordinary value to the Company and its affiliates.  In consideration thereof and of this Award, during your Service
        with the Company or an affiliate and for a period of one (1) year thereafter, you shall not, without the Company’s prior
        written approval, become engaged, directly or indirectly, as a director, officer, employee or 5% or more stockholder or equity
        interest owner in, partner in, or consultant to, any business that is directly competitive with the business of the Company (or
        any affiliate) in any area or region where the Company (or any affiliate) conducts business (“Competition”). 
        Notwithstanding the foregoing, you shall not be deemed to be in Competition with the Company if you provide evidence satisfactory
        to the Company, in its sole and absolute discretion, that you: (i) work in a separate division, department or unit that does not
        compete with the business of the Company (or any affiliate); and (ii) will not have contact with the division, department or unit
        that does compete with the business of the Company (or any affiliate). 

         

	Non-Solicitation	 	During Service and for a period of two (2) years thereafter, you shall not, without the prior written consent of the Company, directly or indirectly, on your own behalf or on behalf of any other person, firm, corporation or business entity: (a) induce or attempt to induce any agent, broker, affinity group or policyholder of the Company (or any affiliate), or any prior agent, broker, affinity group or policyholder that was an agent, broker, affinity group or policyholder within twelve (12) months of such contact, to withdraw, decrease or cancel its business with the Company (or any affiliate) or otherwise terminate any written or oral agreement or understanding or other relationship with the Company (or any affiliate); (b) solicit or attempt to solicit, service or attempt to service, or for the purpose of obtaining the business of any customer of the Company (or any affiliate), or any prior agent, broker, affinity group or policyholder that was an agent, broker, affinity group or policyholder within twelve (12) months of such contact, to the extent the business solicited is similar to, or competitive with, the business of the Company (or any affiliate), engage in discussions or other communications with (regardless of who initiates such discussions or communications) any person, firm or entity that was an actual or prospective agent, broker, affinity group or policyholder of the Company during any part of the twelve (12) month period immediately preceding termination of Service if you participated, directly or indirectly, in the solicitation or servicing of that agent, broker, affinity group or policyholder or prospective agent, broker, affinity group or policyholder, or supervised or managed those who did, during your Service with the Company at any time during such twelve (12) month period immediately preceding your termination of Service; (c) solicit or attempt to solicit, hire or attempt to hire, or communicate with, any person who is an employee, individual consultant or independent contractor of the Company (or any affiliate), or any prior employee, individual consultant or independent contractor that was an employee, consultant or independent contractor within twelve (12) months of such contact, with the purpose or intent of attracting such person from the employ of the Company (or any affiliate); or (d) induce or attempt to induce any person who is an employee, individual consultant or independent contractor of the Company (or any affiliate) to terminate or limit his or her Service or other relationship with the Company (or any affiliate), or any prior employee, individual consultant or independent contractor that was an employee, individual consultant or independent contractor within twelve (12) months of such contact.

 

    	7

    	 

    

 

	No Right to Employment	 	
        None of the Performance Shares, Restricted Stock nor this Agreement
        give you the right to be retained by the Company in any capacity and your Service may be terminated at any time and for any reason.

         

	Shareholder Rights	 	
        You have no rights as a shareholder unless and until the Stock
        relating to the Restricted Stock has been issued to you (or an appropriate book entry has been made). Except as described in the
        Plan or herein, no adjustments are made for dividends or other rights if the applicable record date occurs before your Stock is
        issued (or an appropriate book entry has been made). If the Company pays a dividend on its Stock, you will, however, be entitled
        to receive a cash payment equal to the per-share dividend paid on the Stock times the number of shares of Restricted Stock that
        you hold as of the record date for the dividend.

         

	Applicable Law	 	
        This Agreement shall be governed by the laws of the State of
        Delaware, with consent to jurisdiction by you in the State of New York.

         

	Data Privacy	 	
        To administer the Plan, the Company may process personal data
        about you. Such data includes the information provided in this Agreement, other appropriate personal and financial data about you
        such as home address and business addresses and other contact information, payroll information and any other information deemed
        appropriate by the Company to facilitate the administration of the Plan.

         

        By accepting this award, you consent to the Company’s
        processing of such personal data and the transfer of such data outside the country in which you work or are employed, including,
        with respect to non-U.S. residents, to the United States, to transferees who shall include the Company and other persons designated
        by the Company to administer the Plan.

         

	Consent to Electronic Delivery	 	Certain statutory materials relating to the Plan may be delivered to you in electronic form. By accepting this grant, you consent to electronic delivery and acknowledge receipt of these materials, including the Plan and the Plan prospectus.

 

This Agreement is not a not a stock certificate
or a negotiable instrument.

 

    	8

    	 

    

 

By accepting your grant, you agree to the terms and conditions
in this Agreement and in the Plan, and agree that the Plan will control in the event any provision of this Agreement should appear
to be inconsistent with the terms and conditions of the Plan.

 

IN WITNESS WHEREOF, the parties have executed
this Agreement on the date and year below.

 

	AMTRUST FINANCIAL SERVICES, INC.	 
	 	 
	/s/ Stephen Ungar	Effective Date: March 26, 2012
	By:  Stephen Ungar	 
	Its:  General Counsel and Secretary	 
	 	 
	EMPLOYEE	 
	 	 
	/s/ Barry Zyskind	Date: March 26, 2012
	Name: Barry Zyskind	 

  

    	9

    	 

    

 

EXHIBIT A

(Percentage Payout**)

 

	 	 	 	 	 	Adjusted Operating Income - 2012/13 (24 Month) (in
    millions)	 
	 	 	 	 	 	90%	 	 	95%	 	 	100%	 	 	115%	 	 	130%	 
	 	 	 	21.0	 	 	 	100	 	 	 	100	 	 	 	115	 	 	 	125	 	 	 	150	 
	 	 	 	 	 	 	 	318	 	 	 	335	 	 	 	353	 	 	 	406	 	 	 	459	 
	 	 	 	18.0	 	 	 	90	 	 	 	100	 	 	 	110	 	 	 	115	 	 	 	125	 
	 	 	 	 	 	 	 	318	 	 	 	335	 	 	 	353	 	 	 	406	 	 	 	459	 
	ROE*	 	 	15.0	 	 	 	75	 	 	 	90	 	 	 	100	 	 	 	110	 	 	 	115	 
	 	 	 	 	 	 	 	318	 	 	 	335	 	 	 	353	 	 	 	406	 	 	 	459	 
	 	 	 	13.5	 	 	 	60	 	 	 	75	 	 	 	90	 	 	 	100	 	 	 	110	 
	 	 	 	 	 	 	 	318	 	 	 	335	 	 	 	353	 	 	 	406	 	 	 	459	 
	 	 	 	12.0	 	 	 	50	 	 	 	60	 	 	 	75	 	 	 	90	 	 	 	100	 
	 	 	 	 	 	 	 	318	 	 	 	335	 	 	 	353	 	 	 	406	 	 	 	459	 

 

* Return on Equity (“ROE”) to be annualized over
two-year period. ROE is expressed as a percentage and is calculated as: Net Income/average shareholders’ equity.  Average
shareholders’ equity is the average shareholders’ equity for each of the eight quarters in the performance period,
divided by 8, as follows: ((shareholders’ equity as of 1/1/12 + shareholders’ equity as of 3/31/12) / 2) + (shareholders’
equity as of 4/1/12 + shareholders’ equity as of 6/30/12) / 2) + (shareholders’ equity as of 7/1/12 + shareholders’
equity as of 9/30/12) / 2) + (shareholders’ equity as of 10/1/12 + shareholders’ equity as of 12/31/12) / 2) + (shareholders’
equity as of 1/1/13 + shareholders’ equity as of 3/31/13) / 2) + (shareholders’ equity as of 4/1/13 + shareholders’
equity as of 6/30/13 / 2) + (shareholders’ equity as of 7/1/13 + shareholders’ equity as of 9/30/13) / 2) + (shareholders’
equity as of 10/1/13 + shareholders’ equity as of 12/31/13) / 2)) / 8.

 

** Percentage Payout of Target share award shown as top number
in each box of Matrix.

 

Combined ratio must not exceed 95% or entire Award is forfeited.

 

Adjusted Operating Income defined as : Net Income, adjusted
for (i) Realized investment gains (losses), net of tax, (ii) gain (loss) on acquisitions net of tax, (iii) foreign currency gain
(loss), (iv) non-cash amortization of certain intangible assets, and (v) Gain (loss) on life settlement contracts (exclusive of
non-controlling interest, net of tax).

 

    	A-1

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