Document:

Exhibit 10.25

 

FINANCIAL ADVISORY SERVICES AGREEMENT

 

THIS FINANCIAL ADVISORY SERVICES AGREEMENT is made as of the 19th
day of November, 2004 by and between OMP, INC., a Delaware corporation
(the “Company”) and STONINGTON PARTNERS, INC., a Delaware Corporation
limited partnership (“Stonington”).

 

RECITALS

 

WHEREAS, Stonington has expertise in the areas of finance, strategy,
investment, acquisitions and other matters relating to the Company and its
business and Stonington Capital Appreciation 1994 Fund, L.P. (the “1994 Fund”)
an Affiliate of Stonington has made an investment in the Company.

 

WHEREAS, the Company is currently contemplating a recapitalization
involving, inter alia, the incurrence of indebtedness, the payment of a
dividend and the repurchase of some or all of its outstanding preferred stock
(the “Recapitalization”) and in connection therewith desires to obtain the
benefits of the knowledge, experience and expertise of Stonington.

 

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

 

AGREEMENT

 

1.                                       Definitions. The following terms used in this Agreement shall have the following meanings:

 

(a)                                  “Affiliate” means, in reference to the
Company, a Person that directly or indirectly, through one or more
intermediaries, controls or is controlled by, or is under common control with,
the Company.

 

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

 

(c)                                  “Person” shall mean any individual,
partnership, joint venture, limited liability company, corporation,
unincorporated organization or association, trust or other entity.

 

2.                                       Consulting and Advisory Services. Stonington
will during the term of this agreement make available to the Company, by and
through itself and its Affiliates and such officers, employees, representatives
and third parties as Stonington in its sole discretion may designate from
time to time, (a) advisory and consulting services in relation to the
affairs of the Company, regarding the structure, terms, conditions and other
provisions, distribution and timing of the Recapitalization and advice
regarding relationships with the Company’s and its subsidiaries’ lenders and
bankers relating to the Recapitalization, (b) advice regarding the
strategy of the Recapitalization, and (c) such other advice directly
related or ancillary to the Recapitalization as may be reasonably
requested by the Company. It is expressly agreed that the services to be performed
hereunder will not include investment banking or other financial advisory
services which may be provided by Stonington or any of its Affiliates to
the Company in connection with

 

 

any
specific acquisition, divestiture, refinancing or recapitalization by the
Company or any of its subsidiaries other than the Recapitalization. Stonington may be
entitled to receive additional compensation for providing services of the type
specified in the preceding sentence by mutual agreement of the Company or such
subsidiary and Stonington. Stonington shall devote such time and personnel, on
a non-exclusive basis, as it deems in its sole discretion to be reasonably
necessary for Stonington to perform its services hereunder. Stonington may represent,
perform services for, and be retained by such additional Persons as
Stonington, in it sole discretion, deems advisable and the Company specifically
acknowledges that Stonington provides similar services to other portfolio
companies of Stonington Capital Appreciation 1994 Fund, L.P.

 

3.                                       Fees and Payments. As compensation in full for all services
under this Agreement, the Company shall pay Stonington an advisory fee equal to
$1,000,000.00, which shall be paid upon mutually agreeable terms. Upon the
execution of the Agreement, the Company shall provide Stonington with a good
faith deposit of $500,000.00 to be applied toward the total advisory fee payable.
If the Recapitalization fails to close prior to January 31, 2005, the good
faith deposit shall be applied to reduce the advisorys fee payable to
Stonington under the Management Services Agreement that the Company and
Stonington have entered into. The application of the good faith deposit to
reduce the annual advisory fee payable for 2005 shall not reduce the Company’s
obligations under this agreement should the transaction close after January 31,
2005.

 

4.                                       Term. The term of this Agreement shall commence on November 18, 2004
and end on December 31, 2005 unless sooner terminated by either party at
any time upon thirty (30) days written notice. Expenses. Stonington shall pay
all personnel and operating expenses required to perform the financial
advisory services it has agreed to provide the Company under this Agreement.
The Company agrees to reimburse Stonington from time to time, upon written
request, for all reasonable expenses incurred by Stonington in connection with
the performance of its services hereunder (i.e., airfare, reasonable
accommodations, document procurement and delivery expenses, and other general
or administrative expenses reasonably utilized to perform services under
this Agreement and related matters, including reasonable fees and expenses of
attorneys engaged by Stonington). Such expenses are to be paid on a current
basis within thirty (30) days of receipt of a statement therefore. The Company
shall be obligated to pay any and all expenses related to the operation of its
business, including, but not limited to, legal, accounting and other
professional fees.

 

5.                                       Independent Contractor Status.

 

(a)                                  Each party shall retain full control,
authority and discretion at all times, with regard to the hiring, firing and
working conditions of the parties’ respective employees or other personnel,
subject only to the provisions of this Agreement.

 

(b)                                 Each party shall remain solely responsible
and liable for compliance with all local, state and federal laws and
regulations, and any contractual obligations related to the employment of such
parties’ respective employees or other personnel.

 

2

 

(c)                                  Each party shall remain solely responsible
and liable for the payment of all wages, fringe benefits, payroll related taxes
and premiums, and expense reimbursement related to the employment of such
parties, respective employees or other personnel.

 

(d)                                 The parties hereto acknowledge that their
relationship shall be that of an independent contractor rather than that of
employee, agent, partnership, or a joint venture. As an independent contractor,
Stonington shall have no authority, express or implied, to commit or obligate
the Company in any manner whatsoever, except as specifically authorized from
time to time in writing by an authorized representative of the Company, which
authorization may be general or specific.

 

6.                                       Limited Liability. With regard to the financial advisory and
other services to be performed by Stonington pursuant to this Agreement,
Stonington shall not be liable to the Company, or to anyone who may claim
any right due to its relationship with the Company, for any acts or omissions
in the performance of services on the part of Stonington or on the part of
the officers, employees or agents of Stonington, unless the acts or omissions
of Stonington or its officers, employees or agents have been determined to have
been due to their willful misconduct or gross negligence. The Company shall
defend, indemnify and hold Stonington, its officers, employees and agents free
and harmless from any obligations, costs, claims, judgments, attorneys’ fees,
attachments and all other liabilities whatsoever arising from, growing out of
or incurred in connection with the services rendered to the Company pursuant to
the terms of this Agreement, unless the same shall have been determined to have
arisen due to the willful misconduct or gross negligence of Stonington or its
officers, employees or agents.

 

7.                                       Remedies. If any action at law or equity is necessary to enforce or interpret
the terms of this Agreement, the prevailing party shall be entitled to reasonable
attorneys’ fees, costs, and necessary disbursements in addition to any other
relief to which that party may be entitled.

 

8.                                       Notices. Any and all notices, consents, documents or communications provided
for in this Agreement shall be given in writing and shall be personally
delivered, mailed by registered or certified mail (return receipt requested) or
sent by courier, confirmed by receipt, and addressed as follows (or to such
other address as the addressed party may have substituted by notice
pursuant to this Section 10):

 

(a)                                  If to the Company:

 

OMP, Inc.

310 Golden Shore

Long Beach, California 90802

Attn: Curtis A. Cluff

 

(b)                                 If to Stonington:

 

Stonington Partners, Inc.

767 5th Avenue, 48th Floor

New York, NY 10153

Attn: Frank Bartoletti

 

3

 

Such
notice, consent, document or communication shall be deemed given upon personal
delivery or receipt at the address of the party stated above or at any other
address specified by such party to the other party in writing, except that if
delivery is refused or cannot be made for any reason, then such notice shall be
deemed given on the third day after it is sent.

 

9.                                       Governing Law. This Agreement shall be construed under and
in accordance with the laws of the State of Delaware.

 

10.                                 Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns. Neither this Agreement nor any right, remedy, obligation or liability
arising hereunder or by reason hereof shall be assignable (including by
operation of law) by Stonington without the prior written consent of the
Company.

 

11.                                 Severability; Legal Construction. In the event that any one or more of the
provisions contained in this Agreement shall for any reason be held to be
invalid, illegal, or unenforceable in any respect, such invalidity, illegality,
or unenforceability shall not affect any other provision hereof, and this
Agreement shall be construed as if the invalid, illegal, or unenforceable
provisions had never been contained herein. This Agreement shall be construed
without regard to the party or parties deemed responsible for the drafting
hereof.

 

12.                                 Entire Agreement. This Agreement contains the entire
understanding and the full and complete agreement of the parties and replaces
any prior understandings and agreements among the parties, with respect to the
subject matter hereof.

 

13.                                 Amendment. This Agreement may be altered, amended or modified only in a
writing signed by both of the parties hereto.

 

14.                                 Counterparts. This Agreement may be executed in one
or more counterparts and each so executed shall constitute one agreement,
binding on all of the parties hereto, notwithstanding that all of the parties may not
be signatories to the same counterpart, provided that each party is a signatory
to at least one counterpart.

 

15.                                 Facsimile Signature. Any signature page to this Agreement
transmitted by facsimile machine shall be treated in all manner and respects as
an original agreement and the signature of any party to this Agreement
transmitted by facsimile machine shall for all purposes be considered an
original signature.

 

[signatures on next page]

 

4

 

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

 

	
  OMP, INC.

  	
   

  	
  STONINGTON PARTNERS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Curtis A.
  Cluff

  	
   

  	
   

  	
  By:

  	
  /s/ John
  Bartholdson

  	
   

  
	
  Name:

  	
    Curtis
  A. Cluff

  	
   

  	
   

  	
  Name:

  	
    John
  Bartholdson

  	
   

  
	
  Titile:

  	
    CFO

  	
   

  	
   

  	
  Title:

  	
    Principal

  	
   

  
										

 

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Exhibit 10.8    
    

Flagstone Reinsurance Holdings Limited  

 and  

 Mark Byrne  

	

	

EMPLOYMENT AGREEMENT
	

THIS
AGREEMENT is made as of the 18 day of October, 2006 between Flagstone Reinsurance Holdings Limited, a Bermuda exempted company whose registered office is situated at Crawford House,
23 Church Street, Hamilton HM 11, Bermuda (the "Company"); and Mark Byrne of Roughill, 6 Long Lane, Tuckers Town, HS02,
Bermuda (the "Employee"). 

WHEREBY IT IS AGREED as follows:  

1)    Definitions and Interpretation

Headings
in this document do not affect interpretation and are for convenience only. In addition to the words and expressions hereinbefore defined the following words and expressions shall have the
meanings hereinafter ascribed to them: 

	a)
	"Affiliate" means a company which is a subsidiary of another company or 2 or more companies which are both subsidiaries of the same
company or each of them is controlled by the same Person. For the purposes of this definition, "control", when used with respect to any company, means the power to direct the management and policies
of such company, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms "controlling" and "controlled" have meanings correlative to the
foregoing;

	b)
	"Bonus Payment Date" has the meaning set out in paragraph 6 of Schedule 1;

	c)
	"Business Day" means any day normally treated as a business day in Bermuda;

	d)
	"Cause" means:

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

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

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

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

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

	e)
	"Commencement Date" has the meaning set out in paragraph 3 of Schedule 1;

	f)
	"Company Party" means the Company or its Affiliates.

	g)
	"Employment" means the employment of the Employee pursuant to this Agreement;

	h)
	"Intellectual Property Rights" means rights in inventions, patents, trade marks, service marks, design rights (whether registrable or
otherwise), trade and business names, copyrights (including rights in computer software), database rights and semiconductor topography rights (whether or not any of these is registered and including
applications for registrations) and all rights or terms of protection of a similar nature or having equivalent or similar effect to any of these which may subsist anywhere in the world;

	i)
	"Person" means an individual or entity.

	j)
	"Staff Policy Manual" means such document or documents produced by the Company which set out the policies and procedures of the Company
and which may be amended from time to time; 

 

	k)
	"Termination Date" means the date on which the Employee's Employment with the Company ceases either for reason of the conclusion of the
fixed term of the Employment or for reason of the termination of the Employment in accordance with the provisions of this Agreement. 

2)    Appointment  

	a)
	The
Company hereby appoints the Employee and the Employee hereby accepts the position set out in paragraph 1 of Schedule 1 and shall have such responsibilities as the
Company may from time to time direct.

	b)
	The
Employee may be required to provide services to Affiliates of the Company, and where appropriate the appointment shall be subject to the grant and maintenance of a work permit from
the Government of Bermuda. 

3)    Duration of Appointment  

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

4)    Place of Employment  

        The Employee's place of employment is set out in paragraph 2 of Schedule 1. 

5)    Compensation  

	a)
	Salary, Benefits and Deductions from Salary

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

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

	iii)
	The
Company shall be required by law to deduct from the Employee's salary the amounts set out in paragraph 5 of Schedule 1.

	iv)
	Employee
shall have rights to personal use of Company aircraft to the extent set out in paragraph 9 of Schedule 1, provided that Employee promptly shall reimburse the
marginal cost to the Company of such use. As used in the foregoing sentence, "marginal cost" means the variable operating costs to the Company of such use, including, but not limited to fuel costs,
MSP, mileage, weather-monitoring costs, onboard catering and landing/ramp fees, but shall not include fixed costs which do not change based on usage, such as pilot salaries, the lease costs of the
Company aircraft, and the cost of maintenance not related to trips.

 

	b)
	Bonus

	i)
	The
Company may, but shall not be obliged to, pay an annual bonus in accordance with this Clause 5 hereof and paragraph 6 of Schedule 1.

	ii)
	Bonuses
payable on the first Bonus Payment Date will be assessed on salary earned by the Employee since the Commencement Date and thereafter on salary earned since the last Bonus
Payment Date.

	iii)
	The
Company shall not be liable to pay any bonus to the Employee if the Termination Date occurs between Bonus Payment Dates. 

2

 

	c)
	Severance

	i)
	If
the Company terminates the Employee without Cause by providing a notice of termination as set forth in Clause 12 of this Agreement, the Company will pay the Employee salary
up until and including the Termination Date plus, as severance: 

(i)  the
salary payable to the Employee in the sum set out in paragraph 4 of Schedule 1 from the date the Company provided the Employee notice of termination until the
expiration of the period set forth in paragraph 8 of Schedule 1 (without giving effect to the proviso therein) and (ii) a bonus calculated as follows: adding the sum of the
bonuses paid to the Employee with respect to the three Bonus Payment Dates immediately preceding the notice of termination in accordance with paragraph 6 of Schedule 1 (or, if less than
three Bonus Payment Dates shall have transpired since the Commencement Date, the bonuses paid with respect to such lesser number of Bonus Payment Dates) and dividing by three (or such lesser number of
Bonus Payment Dates, as the case may be). 

	ii)
	The
Company will pay the Employee the severance payment specified in Clause (5)(c)(i) above 730 days after the notice of termination is delivered to the Employee,
provided the Employee shall have complied (in the reasonable judgment of the Company) with the provisions set forth in Clause 16. 

6)    Vacation  

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

7)    Amendments and Waivers  

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

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

	(c)
	Any
failure at any time to insist upon or enforce any such right, remedy or power shall not be construed as a waiver thereof. 

8)    Warranty  

The
Employee represents and warrants that he is not a party to any agreement, contract (whether of employment or otherwise) or understanding, which would in any way restrict or prohibit him from: 

	a)
	Undertaking
or performing any of the duties of the Employment in accordance with the terms and conditions of this Agreement; or

	b)
	Utilizing
any materials which the Employee proposes to use in the course of his employment with the Company whether in hard copy or stored in an electronic storage device. 

9)    Covenants  

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

3

 

otherwise
and whosesoever discovered, invented, improved or developed will be the exclusive and sole property of the Company and its Affiliates. 

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

10)  Notice  

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

	i)
	by
personal delivery; or

	ii)
	by
facsimile with a telephone call to ensure receipt; or

	iii)
	by
email with a receipt evidencing that the recipient has read the email.

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

	i)
	in
the case of a notice delivered personally, that it was left at the address for notices herein or any substituted address;

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

	iii)
	in
the case of a notice sent by email that the computer of the Person sending the email message has generated a receipt evidencing that the recipient has read the email message.

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

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

11)  Confidentiality  

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

	b)
	The
Employee shall at the time of executing this Agreement execute the undertaking of secrecy attached in Schedule 2. 

12)  Notice of Termination  

Subject
to Clause 13, this Agreement may be terminated in accordance with paragraph 8 of Schedule 1. 

4

 

13)  Summary Dismissal for Cause  

The
Company reserves the right to summarily dismiss the Employee for Cause, in which case no further payments are due to the Employee except salary up until and including the Termination Date. 

14)  Misuse of Company Property  

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

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

15)  Outside Employment  

The
Employee shall not be permitted to hold any outside directorships or employment without the written consent of the Company. The outside directorships and employment, which are permitted as of the
date of this contract are listed in paragraph 10 of Schedule 1. 

16)  Non Solicitation  

	a)
	During
the 730 days after the date a notice of termination is delivered (if terminated without Cause or voluntarily initiated by the Employee) or the 730 days after the
date the Employee is summarily dismissed (if terminated for Cause), the Employee will not directly, or indirectly through another Person:

	i)
	solicit
any employee of the Company or another Company Party to leave the employ of a Company Party, or in any way interfere with the relationship between a Company Party, on the one
hand, and any employee thereof, on the other hand; provided however that the general solicitation of third parties through the use of means generally
available to the public, including the placement of advertisements in the newspaper, will not be deemed to violate this clause (i); or

	ii)
	hire
any individual who was an employee of a Company Party until twelve months after such individual's employment relationship has ended.

	b)
	If
the Employee is employed by or a consultant to another Person, the Employee will procure the compliance of that Person with the provisions of this Clause 16. 

17)  Staff Policy Manual  

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

18)  Miscellaneous  

This
Agreement shall be subject to the additional terms set out in paragraph 9 of Schedule 1. 

19)  Whole Agreement  

This
Agreement constitutes the whole agreement between the parties for service by the Employee as an Employee. 

5

 

The
employment agreement between the Employee and the Company, dated as of November 28, 2005, is deemed to cease on the Commencement Date of this Agreement. 

20)  Severability  

In
the event that any provision of this Agreement is determined to be partially or wholly invalid, illegal or unenforceable in any jurisdiction, then such provision will, as to such jurisdiction, be
modified or restricted to the extent necessary to make such provision valid, binding and enforceable, or if such provision cannot be modified or restricted, then such provision will, as to such
jurisdiction, be deemed to be excised from this Agreement; provided, however, that the binding effect and enforceability of the remaining provisions of this Agreement, to the extent the economic
benefits conferred upon the parties by virtue of this Agreement remain substantially unimpaired, will not be affected or impaired in any manner, and any such invalidity, illegality or unenforceability
with respect to such provisions will not invalidate or render unenforceable such provision in any other jurisdiction. 

21)  Law and Jurisdiction  

	i)
	The
terms of this Agreement shall be governed by and construed in accordance with the laws of the Islands of Bermuda.

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

IN WITNESS WHEREOF the parties hereto have set their hands the date first above written. 

FLAGSTONE REINSURANCE HOLDINGS LIMITED  

	By	/s/ DAVID BROWN
	 	/s/ MARK BYRNE

	Name: David Brown

Title: Chief Executive Officer	 	Mark Byrne

6

 
Schedule 1  

	1.	 	Position	 	Executive Chairman
	

2.	
 	

Place of employment:	
 	

The Employee's place of employment shall be at the Company's office in Bermuda, however the Company may require the Employee, in the performance of his duties, to travel from Bermuda to such other places and for such times as is reasonably necessary
for the proper discharge of the Employee's duties. The Employee may normally discharge his duties from a location of his choosing, except that he will not take decisions on behalf of the Company while in the United States.
	

3.	
 	

Commencement Date:	
 	
January 1, 2006
	

4.	
 	

Salary:	
 	
Year ending December 31, 2006: $500,000 per annum.

Year ending December 31, 2007: $600,000 per annum.
	

5.	
 	

Deductions from Salary:	
 	
a)	
 	
Social Insurance: This is a government administered contributory pension scheme and the contributions are split evenly between the Company and the Employee.
	 	 	 	 	b)	 	Payroll Tax: The Company will withhold the maximum permissible under Bermuda law from the Employee's salary, and the balance will be paid by the Company.
	 	 	 	 	c)	 	Medical Insurance: The Company is required to provide you with Medical Insurance under a Bermuda-approved scheme. Half of the cost of this insurance will be withheld from the Employee's
salary.
	 	 	 	 	d)	 	Pension: If required by law, the Company will provide the Employee with a pension scheme in accordance with the National Pension Scheme (Occupational Pensions) Act, 1998.
	

6.	
 	

Bonus and Bonus Payment Date:	
 	

a)	
 	

The Employee may be paid a bonus at the discretion of the Company's Board of Directors or their delegate.
	

 	
 	

 	
 	

b)	
 	

The Bonus Payment date shall be in March of each year commencing March, 2007.
	

7.	
 	

Vacation:	
 	

The Employee will be entitled to 30 days vacation per annum. Vacation for the first year shall be pro rated.
	

8.	
 	

Notice of Termination:	
 	

This Agreement may be terminated for any reason by either party giving 365 days' advanced notice in writing to the other; provided, however, the Company may, in its sole discretion, pay salary in lieu of
providing a notice of termination to the Employee.
	

9.	
 	

Miscellaneous	
 	
a)	
 	
Housing Allowance

The Employee will be entitled to receive a Mortgage Subsidy which will lower the effective cost of financing on his Bermuda residence to 3%. The maximum financing to which this applies is 5 times the annual salary of the Employee from time to
time.
	 	 	 	 	 	 	 

7

 

	 	 	 	 	b)	 	Use of Company Aircraft

The Employee will be entitled to use the Company aircraft for his personal use, subject to availability, provided that the Employee promptly shall reimburse the marginal cost to the Company of such use.
	

10.	
 	

Permitted outside employment and directorships	
 	

The Amos Tuck School of Business at Dartmouth College, two trips per year at Company expense.
	 	 	 	 	Longtail Aviation Limited, Accountable Manager and Chairman.

8

 
Schedule 2  

 Undertaking of Secrecy  

	TO:
	Flagstone Reinsurance Holdings Limited

I
HEREBY UNDERTAKE THE FOLLOWING:— 

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

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

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

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

I
hereby acknowledge that any breach of this undertaking may result in my dismissal from the Company, and that my obligations under this undertaking continue after the termination of my employment
with the Company. 

	Signature	 	/s/ MARK BYRNE
	 	 	

	
Name	
 	
Mark Byrne
	 	 	

	
Witness	
 	

/s/ WITNESS
	 	 	

	
Date	
 	

10/18/06
	 	 	

9

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Exhibit 10.8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]