GREENLIGHT CAPITAL RE, LTD. (Form: 10-Q, Received: 11/02/2010 16:26:26)

REINSURANCE DEPOSIT AGREEMENT

REINSURANCE DEPOSIT AGREEMENT (CHARGE FORM - CITIBANK, N.A. AS CUSTODIAN)

EXECUTION COPY

(Option for non-matching Deposits) Form 12/CEP

Name of Chargor and address of its registered or principal office:

Greenlight Reinsurance, Ltd

65 Market Street

Suite 1207, Jasmine Court

Camana Bay, PO Box 31110 Grand Cayman, KY1-1205

CAYMAN ISLANDS

facsimile no: 345 745 4576 Company Number: CR-137831 (the "Chargor")

Name of Custodian and address of its registered or principal office :

CITIBANK, N.A., FAO: INSURANCE LETTER OF CREDIT PRODUCT MANAGER, CITIGROUP CENTRE, CANADA SQUARE, CANARY WHARF, LONDON E14 5LB

(the "Custodian")

Date: 20 TH August 2010

To: CITIBANK EUROPE PLC (the "Bank")

Insurance Letter of Credit Department

2 nd Floor

1 North Wall Quay

Dublin 1

Republic of Ireland

The terms used in this Deposit Agreement are defined in Clause 22

1.	PAYMENT AND DISCHARGE

The Chargor shall pay and discharge in full all of the Obligations at the times and in the manner provided for in each Agreement.

2.	FIXED CHARGE AND ENFORCEMENT

(a)

The Chargor hereby charges with full title guarantee and by way of first fixed charge, in the Bank’s favour all of the Chargor’s rights, title and interest in the Assets as security for the payment to you and the discharge of all of the Obligations.

(b)

If:

(i)

an Event of Default (as defined in the Committed Facility Letter) has occurred and is

continuing;

(ii)

the Chargor defaults in paying or discharging any of the Obligations on demand within 5

Business Days of its due date; or

(iii)

the Chargor defaults under or fails to comply with any provisions of this Deposit Agreement, any other Agreement or any agreements or contract giving rise to the Obligations and such default continues for a period of ten (10) Business Days following the Bank’s notice of such non-compliance; or

(iv) the Custodian defaults under or fails to comply with any material provision of the Custodian's Undertaking and such default continues for a period of fifteen (15) days following the Bank’s notice of such non-compliance to the Custodian and the Chargor;

then:

(A)

the security created by or pursuant to this Deposit Agreement shall become immediately enforceable and the Bank may, subject to the requirements of applicable law, without notice to the Chargor or prior authorisation from any court, in the Bank’s absolute discretion enforce all or any part of that security (at the times, in the manner and on the terms the Bank thinks fit) and take possession of and hold or dispose of all or any part of the Assets; and

(B)

without prejudice to the generality of (A) above, the Bank shall be entitled, without notice or further demand but subject to the requirements of applicable law, immediately to exercise all the rights, powers and remedies possessed by it according to law as chargee of the Assets and to:

(I)

demand and receive all and any monies due under or arising out of each of the Assets;

(II)

exercise in relation to each of the Assets all such rights as the Chargor was then entitled to exercise in relation to each such Asset or might, but for the terms of this Deposit Agreement, exercise; and

(III)

apply, set-off or transfer any or all of the Assets in or towards the payment or other satisfaction of the Obligations or any part of them.

(C)

Subject to the requirements of applicable law, the Bank shall not be liable to account as a mortgagee in possession in respect of all or any part of the Assets or be liable for any loss upon realisation or for any neglect, default or omission in connection with the Assets to which a mortgagee in possession might otherwise be liable.

3.	REQUIRED DEPOSITS

(a)

It is agreed between the Chargor and the Bank in relation to each of the Credits that:-

(i)

it is a prior condition to the establishment of any Credit pursuant to an Agreement that there should first have been deposited with Citibank, N.A. (the "Custodian") at their branch at Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB (or such other branch as may be advised to the Chargor by the Bank for such purpose) in an account in the Chargor’s name designated as a "Reinsurance Deposit Account" and/or such other designation(s) as may be agreed between the Chargor and the Bank and notified by the Bank to the Custodian (referred to herein as an "Account") a deposit:-

(1)

in an amount in the same currency as such Credit and at least equal to 100% of the face value of such Credit (or such other percentage as may be agreed between the Chargor and the Bank in writing for this purpose); and/or

(2)

in an amount in the currency(ies) and of the percentage all as required by the alternative arrangements set out in Schedule Two hereto but subject to the limitation(s) (if any) therein referred to (or as the same may from time to time hereafter be amended or substituted),

and, in either case, the balance from time to time standing to the credit of any such Account (the "Reinsurance Deposit") to be subject to the security hereby constituted and to be applied on the terms and conditions herein set forth;

(ii)

so long as the Chargor is under any actual or contingent liability pursuant to any Agreement, the Chargor shall be entitled, upon request, to require the Bank to release from the security hereby constituted only that part of a Reinsurance Deposit which is in excess of the amounts required by Clause 3(a)(i)(1) and (2); provided, however, that the Chargor shall not be entitled to request any such release if an Event of Default has occurred and is continuing. Bank hereby agrees that, promptly (and in any event within 2 Business Days) following receipt of the Chargor’s request therefor, it shall notify the Custodian of its consent to any such release;

(iii)

the Chargor shall be entitled to receive any interest which may accrue on each Reinsurance Deposit, provided, however, that if an Event of Default has occurred and is continuing, then such interest shall be paid only to the credit of the relevant Account and such interest shall form part of the Reinsurance Deposit in question;

(iv)

if at any time, acting reasonably, the Bank determines that the amount of any Reinsurance Deposit is less than the amount required by Clause 3(a)(i)(1) and/or (2) the Chargor shall immediately (and in any event within three (3) Business Days) following the Bank’s demand deposit in the relevant Account any further sum or sums which the Bank may certify to be required to cover the shortfall; and

(v)

until payment in full of the Obligations and termination of this agreement, the Chargor shall not, without the Bank’s prior written consent, be entitled to permit or agree to any variation of the rights attaching to the Assets or any Account or to receive, withdraw or otherwise deal with or transfer the Assets or any Account except as otherwise expressly provided herein.

(b)

In the event that the Bank elects not to allocate or otherwise attribute a specific Reinsurance Deposit in an Account to a specific Credit, it may treat all of the balance(s) from time to time standing to the credit of each Account as constituting security in respect of the Obligations.

(c)

Following the occurrence and during the continuance of any of the events described in Clauses 2 (b) (i) to 2 (b) (iv) above and subject to any applicable grace and/or notice), the Bank is hereby irrevocably authorised (without reference to the Chargor and on its behalf) to instruct the Custodian to convert, so far as is then possible, all or part of a Reinsurance Deposit established pursuant to the provisions of Clause 3(a)(i)(2) from its then existing currency of denomination into the other currency(ies) which would have been required if the provisions of Clause 3(a)(i)(1) had originally been complied with by the Chargor (the "Requisite Currency(ies)"). The Requisite Currency(ies) shall be held in one or more accounts established by the Custodian for such purposes but otherwise subject to the security hereby constituted and the terms and conditions hereof. In order to effect the foregoing the Chargor irrevocably authorises the Bank (without reference to the Chargor) to debit (on the Chargor’s behalf) any account with such sums as may be required by the Bank or the Custodian in or towards payment of the cost of obtaining the requisite currency(ies) (whether or not such cost includes a premium over any official or other rate of exchange) and all other costs, charges and expenses incurred by the Bank or the Custodian (in connection with obtaining the requisite currency(ies).

(d)

For the purpose of any calculations required by this Clause 3, the Bank may convert any figure expressed in its existing currency of denomination into such other currency of denomination as the Bank may require for the purposes hereof, and any such conversion shall be effected at the Bank’s then prevailing spot rate of exchange for obtaining such requisite currency(ies) with the existing currency(ies).

CUSTODIAN'S UNDERTAKING

(a)

the Chargor undertakes to deliver (or procure the delivery of) the Custodian's Undertaking to the Bank forthwith upon the execution of this Security Agreement.

(b)

following the occurrence and continuance of an Event of Default, the Bank may at any time and without prior notice to the Chargor exercise any or all of the Bank’s rights under or pursuant to the Custodian's Undertaking.

5.	FURTHER ASSURANCE

The Chargor undertakes forthwith upon the Bank’s notice to that effect to execute and sign all documents which the Bank may reasonably require for the purposes hereof including any notices of charge in such form as the Bank may reasonably require (which shall promptly be handed to the Bank) and do all such acts and things as the Bank may determine to be necessary or expedient in connection herewith.

6.	NOTICES OF CHARGE

Without prejudice to the generality of the power of attorney contained in Clause 9 the Chargor and the Bank hereby irrevocably authorises the Bank (without reference to the Chargor) from time to time to deliver to the Custodian (on the Chargor’s behalf) a notice of charge (substantially in the form set out in Schedule One or in any other form as the Bank may require) in respect of each Account and each account which may be created pursuant to the terms of Clause 3(c).

7.	REPRESENTATIONS AND WARRANTIES

(a)	The Chargor hereby represents and warrants to the Bank and undertakes that:-

(i)	It is and will, at all times during the subsistence of the security hereby constituted, be the sole, lawful and beneficial owner of all of the Assets free from mortgages or charges (other than this first fixed charge) or other encumbrances;

(ii)

(save as may have been disclosed by the Chargor to the Bank in writing prior to the date of this Deposit Agreement) it has not sold or agreed to sell or otherwise disposed of or agreed to dispose of, and (save with the Bank’s prior consent) will not at any time during the subsistence of the security hereby constituted sell or agree to sell or otherwise dispose of or agree to dispose of, the benefit of all or any of its rights, titles and interests in and to the Assets or any part thereof (except for any withdrawals and releases expressly permitted by the terms hereof);

(iii)

it has and will at all times have the necessary power to enable the Chargor to enter into and perform the obligations expressed to be assumed by it under this Deposit Agreement;

(iv)

this Deposit Agreement constitutes its legal, valid, binding and enforceable obligation and is a security over the Assets and every part thereof effective in accordance with its terms, subject to (x) the effect of any applicable bankruptcy, insolvency, reorganisation, moratorium or similar law affecting creditors' rights generally and (y) the effect of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or law); and

(v)

all necessary authorisations to enable or entitle it to enter into this Deposit Agreement have been obtained and are in full force and effect and will remain in such force and effect at all times during the subsistence of the security hereby constituted.

(b)

The Chargor hereby represents and warrants to the Bank that:-

(i)	it is not unable to pay its debts as they fall due;

(ii)	it has not been deemed or declared to be unable to pay its debts under applicable law;

(iii)

it has not suspended making payments on any of its debts;

(iv)	it has not by reason of actual or anticipated financial difficulties commenced negotiations with any of its creditors with a view to rescheduling any of its indebtedness;

(v)	the value of its assets is not less than its liabilities (taking into account contingent and prospective liabilities);

(vi)	no moratorium has been declared in respect of any of its indebtedness; and

(vii)

no analogous or similar event or concept to those set out in Clauses 7(b)(i) to 7(b)(vi) above has occurred or is the case under the laws of any jurisdiction.

8.	NEGATIVE PLEDGE

The Chargor hereby undertakes with the Bank that at no time during the subsistence of the security hereby constituted will it, otherwise than:

(a) in the Bank’s favour or in favour of Citibank, N.A. (if applicable); or

(b)

with the Bank’s prior written consent and in accordance with and subject to any conditions which the Bank may attach to such consent,

create, grant, extend or permit to subsist any mortgage or other fixed security or any floating charge on or over the Assets or any part thereof. The foregoing prohibition shall apply not only to mortgages, other fixed securities and floating charges which rank or purport to rank in point of security in priority to the security hereby constituted but also to any mortgages, securities or floating charges which rank or purport to rank pari passu therewith or thereafter.

9.	POWER OF ATTORNEY

The Chargor hereby irrevocably appoints the Bank to be its attorney and in its name and on its behalf and as its act and deed to sign, seal, execute, deliver, perfect and do all documents and things as may be, or as the Bank may reasonably consider to be requisite for carrying out any obligations imposed on the Chargor under Clause 5. The Chargor hereby undertakes to ratify and confirm all things done and documents executed by the Bank in the exercise of the power of attorney conferred by this Clause.

10.	CONSOLIDATION OF SECURITIES

Subsection (1) of Section 93 of the Law of Property Act 1925 shall not apply to this Deposit Agreement.

11.	EFFECTIVENESS OF SECURITY

(a)	This Deposit Agreement shall be in addition to and shall be independent of every other security which the bank may at any time hold for any of the Obligations. No prior security held by the bank over the whole or any part of the Assets shall merge in the security hereby constituted.

(b)

This Deposit Agreement shall remain in full force and effect as a continuing security until the Obligations have been unconditionally and irrevocably paid and performed in full and this Deposit Agreement and the other Facility Documents shall have been terminated (other than for any contingent indemnification with respect to then unasserted claims which, pursuant to the express terms of this Deposit Agreement or the other Facility Documents, survive the termination of this Deposit Agreement or the other Facility Documents), and the Bank (at the reasonable request and sole expense of the Chargor), will take all reasonable action in order to execute and deliver to the Chargor the proper instruments acknowledging the termination of this Deposit Agreement and the security over the Assets, and will duly assign, transfer and deliver to the Chargor such of the Assets as may be in possession of the Bank and have not thereto been disposed of, applied or released.

(c)

Nothing in this Deposit Agreement is intended to, or shall operate so as to, prejudice or affect any bill, note, guarantee, mortgage, pledge, charge or other security of any kind whatsoever which the Bank may have for the Obligations or any of them or any right, remedy or privilege of the Bank’s thereunder.

12.	REMEDIES, TIME OR INDULGENCE

(a)

The rights, powers and remedies provided by this Deposit Agreement are cumulative and are not, nor are they to be construed as, exclusive of any right of set-off or other rights, powers and remedies provided by law.

(b)

No failure on the Bank’s part to exercise, or delay on the Bank’s part in exercising, any of the rights, powers and remedies provided by this Deposit Agreement or by law (each a "Bank's Right") shall operate as a waiver thereof, nor shall any single or partial waiver of any Bank's Right preclude any further or other exercise of such Bank's Right or the exercise of any other Bank's Right.

(c)

The Bank may in its discretion grant time or other indulgence or make any other arrangement, variation or release with any person(s) not party/ies hereto (irrespective of whether such person(s) is/are jointly liable with the Chargor) in respect of the Obligations or in any way affecting or concerning them or any of them or in respect of any security for the Obligations or any of them, without in any such case prejudicing, affecting or impairing the security hereby constituted, or any Bank's Right or the exercise of the same, or any indebtedness or other liability owed by the Chargor to the Bank.

13.

ACCOUNTS

(a)

If the Bank shall at any time receive notice of any subsequent mortgage, assignment, charge or other interest affecting the whole or any part of the Assets the Bank may open a new account or accounts for the Chargor in its books. If the Bank does not do so, then (unless the Bank gives express written notice to the contrary to the Chargor) as from the time of receipt of such notice by the Bank, all payments made by the Chargor to the Bank shall in the absence of any express appropriation by the Bank to the contrary be treated as having been credited to a new account of the Chargor’s and not as having been applied in reduction of the Obligations at the time when the Bank received the notice.

(b)

Following the occurrence and during the continuance of any of the Events described in Clauses 2(b)(i) to 2(b)(iv) above (and subject to any applicable grace and/or notice periods), all monies received, recovered or realised by the Bank under this Deposit Agreement (including the proceeds of any conversion of currency) may in the Bank’s discretion be credited to any suspense or impersonal account and may be held in such account for so long as the Bank shall think fit (with interest accruing thereon at such rate, if any, as the Bank may deem fit) pending their application from time to time (as the Bank shall be entitled to do in the Bank’s discretion) in or towards the discharge of any of the Obligations.

(c)

In case the Bank shall have more than one account for the Chargor in its books the Bank may at any time after making any demand for payment or other discharge of any of the Obligations or after the Bank shall have received notice of any subsequent charge or other interest affecting all or any part of the Assets, and without prior notice in that behalf, forthwith transfer all or any part of any balance standing to the credit of any such account to any other such account which may be in debit.

14.

CURRENCY

(a)

For the purpose of or pending the discharge of any of the Obligations the Bank may convert any monies received, recovered or realised or subject to application by the Bank under this Deposit Agreement (including the proceeds of any previous conversion under this Clause) from their existing currency of denomination into such other currency of denomination as the Bank may think fit (acting reasonably), and any such conversion shall be effected at the Bank’s then prevailing spot rate of exchange for obtaining such other currency with the existing currency.

(b)

References herein to any currency extend to any funds of that currency and for the avoidance of doubt funds of one currency may be converted into different funds of the same currency.

15.	COSTS, CHARGES AND EXPENSES

15.1 The Company undertakes to indemnify the Bank, within 5 Business Days following demand, for and against all actions, proceedings, liabilities, losses and damages in connection with this Deposit Agreement (except to the extent arising from the gross negligence or wilful misconduct of the Bank).

15.2 The Company undertakes within 5 Business Days to pay or reimburse the Bank for all:

(i) reasonable invoiced out-of-pocket charges, costs and expenses which the Bank actually incurs (including non-exclusively the cost of all required registrations and any other legal fees that the Bank actually incurs in relation to this Deposit Agreement) in connection with the preparation and administration of this Deposit Agreement; and

(ii) out-of-pocket, charges, costs and expenses which the Bank incurs in connection with the enforcement of this Deposit Agreement.

16.	LAW AND JURISDICTION

This Deposit Agreement and all non-contractual obligations arising out of or in connection with it shall be governed by English law and for the Bank’s benefit the Chargor hereby irrevocably submits to the jurisdiction of the English courts in respect of any disputes which may arise from or in connection with this Deposit Agreement.

17.	PROVISIONS SEVERABLE

Each of the provisions contained in this Deposit Agreement shall be severable and distinct from one another and if at any time any one or more of such provisions is or becomes invalid, illegal or unenforceable, the validity, legality and enforceability of each of the remaining provisions of this Deposit Agreement shall not in any way be affected prejudiced or impaired thereby.

18.

NOTICES

(a)

Any notice or demand to be served on the Chargor by the Bank hereunder may be served:-

(i) on any of the Chargor’s officers personally;

(ii)

by letter addressed to the Chargor or to any of the Chargor’s officers and left at the Chargor’s registered office or at any one of the Chargor’s principal places of business;

(iii)

by posting the same by letter addressed in any such manner as aforesaid to such registered office or any such principal place of business; or

(iv)

by facsimile addressed in any such manner as aforesaid to any then published facsimile number of the Chargor’s.

(b)

Any notice or demand to be served on the Bank by the Chargor hereunder must be served on the Bank either at the Bank’s address stated at the beginning of this Deposit Agreement (or such other address as the Bank may notify the Chargor of from time to time) or by facsimile to such number as the Bank may notify the Chargor of from time to time.

(i)

sent by post in accordance with Clause 18(a) to an address in the Republic of Ireland or the United Kingdom shall be deemed to have been served on the Chargor at 10.00 a.m. (London time) on the first Business Day after the date of posting (in the case of an address in the Republic of Ireland) and on the Second Business Day after posting (in the case of an address in the United Kingdom) or, in the case of an address outside the Republic of Ireland or the United Kingdom (or a notice or demand to you), shall be deemed to have been served on the relevant party at 10.00 a.m. (London time) on the third Business Day after and exclusive of the date of posting; or

(ii)

sent by facsimile in accordance with Clause 18(a) shall be deemed to have been served on the relevant party when dispatched.

In proving such service by post it shall be sufficient to show that the letter containing the notice or demand was properly addressed and posted and such proof of service shall be effective notwithstanding that the letter was in fact not delivered or was returned undelivered.

19. THE BANK'S DISCRETIONS

Any liberty or power, subject to any express restriction contained herein which may be exercised or any determination which may be made hereunder by the Bank may be exercised or made in the Bank’s absolute and unfettered discretion and the Bank shall not be under any obligation to give reasons therefor.

20.	ASSIGNMENT

The Bank shall have a full and unfettered right to assign the whole or any part of the benefit of this Deposit Agreement to a Permitted Transferee and the expression the "Bank" wherever used herein shall be deemed to include the Bank’s assignees and other successors, whether immediate or derivative who shall be entitled to enforce and proceed upon this Deposit Agreement in the same manner as if named herein. The Bank shall be entitled to impart any information concerning the Chargor to any Permitted Transferee or other successor or any participant or proposed assignee, successor or participant; provided, however, that any such assignment or novation, CEP may disclose to the assignee or transferee or proposed assignee or proposed transferee any information relating to the Company furnished to CEP by or on behalf of the Company, provided that, prior to any such disclosure, the assignee or transferee or proposed assignee or proposed transferee shall agree to be subject to the same confidentiality obligations applicable to CEP with respect to any confidential information related to the Company and shall enter into a confidentiality agreement to such effect with CEP under which the Company is designated a third party beneficiary with the right to enforce the terms of such confidentiality agreement.

(b) The term “Permitted Transferee” shall have the meaning given to it in the Master Reimbursement Agreement.

21.	FIXED TIME DEPOSITS

The Chargor hereby agrees with the Bank that if, apart from the terms of this Deposit Agreement, the whole or any part of the monies from time to time deposited by the Chargor with the Custodian pursuant to the terms of the Deposit Agreement are held in a fixed time deposit account (each such account being referred to in this Clause as a "Fixed Time Deposit Account" and the monies therein being referred to in this Clause as a "Fixed Time Deposit") then:-

(a)

insofar as the context may require, the references in this Deposit Agreement to an Account, an account and a Reinsurance Deposit shall be construed mutatis mutandis as though they were, respectively, references to a fixed time deposit account and a fixed time deposit;

(b)

unless and until the Chargor is entitled to have the whole of a Fixed Time Deposit released from the security hereby constituted the Chargor shall renew each Fixed Time Deposit, upon each of its maturity dates, for such period of time and on such terms as may be agreed between the Chargor and the Bank (or, in the absence of agreement between the Chargor and the Bank, as may be determined by the Bank in its sole discretion) (such terms which the Bank shall be entitled to communicate to the Custodian) (each such period of time being referred to in this Clause in respect of the Fixed Time Deposit to which it relates as a "Deposit Period"); and

(c)

the existence of any Fixed Time Deposit shall not prejudice any of the Bank’s rights under or pursuant to the Agreement(s) and/or this Deposit Agreement and, without prejudice to the generality of the foregoing, the Bank shall not be precluded or in any way obliged to delay the exercise of the Bank’s rights pursuant to this Deposit Agreement until the maturity of any Deposit Period relating to any Fixed Time Deposit and the Bank may (by instructing the Custodian accordingly) unilaterally terminate such deposit period at any time for any reason, quantify the cost to be incurred by the Chargor as a result thereof and instruct the Custodian (who the Chargor irrevocably authorises the Bank (without reference to the Chargor) to so instruct) to adjust any interest payable by the Custodian accordingly. If, pursuant to the terms of this Deposit Agreement, the Chargor is entitled to withdraw any surplus funds from a Time Deposit Account such right may only be exercised by the Chargor at the end of a Deposit Period relating thereto.

22.	INTERPRETATION

(a)	In this Deposit Agreement:

"Account" shall be construed in accordance with Clause 3(a)(i) or otherwise as may be from time to time agreed in writing between the Bank and the Chargor (and, for the avoidance of doubt, includes both those already existing or at any time hereafter established) in accordance with the terms of this Deposit Agreement;

"Acknowledgement of Notice" means an acknowledgement duly executed by the Custodian in the form of acknowledgement of notice of charge of the assets contained in Schedule One or in any other form as may be agreed by the Bank.

"Agreement" means , as to the context requires, the relevant Facility Document and each agreement (as amended, varied, assigned or novated or supplemented and whether made on or before the date hereof, or at any time hereafter) between the Chargor (or by any person for and on behalf of the Chargor) and the Bank pursuant to which the Bank has established, maintained, amended or renewed or arranged for the establishment, maintenance, amendment or renewal of a Credit;

"Assets" means all monies now or at any time hereafter during the subsistence of the security constituted by this Deposit Agreement standing to the credit of (a) each Account and (b) any account opened by the Custodian pursuant to Clause 3(c) and, in each case, all the entitlements to interest and other rights and benefits accruing to or arising in connection with such monies;

"Bank" means Citibank Europe plc and includes any permitted assignee, novatee or successor to the rights and, as the case may be, obligations of Citibank Europe plc under and pursuant to the terms of the Agreement;

“Committed Facility Letter” shall have the meaning given to it in the Master Agreement;

"Credit" means a letter of credit or similar or equivalent instrument from time to time established, maintained, amended or renewed pursuant to an Agreement and shall include any portion of any single letter of credit or similar or equivalent instrument which is attributable by the Bank to the Chargor and which was established, maintained, amended or renewed pursuant to an Agreement and/or any agreement between the Bank and another person incorporating similar instructions;

"Custodian" means the above mentioned custodian or any such other person as the Chargor and the Bank may agree to in writing from time to time;

"Custodian's Undertaking" means an undertaking in the form set out in Schedule Three duly executed by the Custodian as the same may be amended or substituted with the prior written consent of the Bank from time to time;

“Facility Document” means the following documents: Master Reimbursement Agreement Form 3/CEP (“Master Agreement”), dated on or about the date of this agreement, this Agreement (Form 12/CEP), Corporate Mandate entered into on August 9 th 2010, the General Communication Indemnity entered into on or about the date of this agreement and the Committed Facility Letter (as defined in the Master Agreement), and any other documents which the Bank reasonably determines to be necessary or expedient in connection herewith or the issuance, establishment, maintenance etc of any credit and any other document pursuant to which a security interest, guarantee or other form of credit support is created or exists in favour of the Bank in respect of the obligations of the Company under this Agreement .

"Obligations" means any and all of the present or future, actual or contingent obligations of the Chargor to the Bank hereunder, under any Agreement (whether incurred alone or jointly and whether as principal or severally or in some other capacity); and

"Reinsurance Deposit" shall be construed in accordance with Clause 3(a)(i), or otherwise as may be from time to time be agreed in writing between the Bank and the Chargor.

(b) Any reference in this Deposit Agreement to:-

a "Business Day" shall be construed as a reference to a day (other than a Saturday or Sunday) on which banks are generally open for business in London;

a "Clause" is, unless otherwise stated, a reference to a Clause hereof;

a "person" shall be construed as a reference to any person, firm, company, corporation, government, state or agency of a state or any association or partnership (whether or not having separate legal personality) of two or more of the foregoing; and

a "Schedule" is, unless otherwise stated, a reference to a schedule hereto.

23.	THIRD PARTY RIGHTS

(a)

Subject to this Clause and to Clause 24 a person who is not a party to this Deposit Agreement has no rights under the Contracts (Rights of Third Parties) Act 1999 (the "Third Parties Act") to enforce any term of this Deposit Agreement.

(b)

The Custodian may enforce the terms of Clause 24 subject to and in accordance with this Clause and Clause 16 and the provisions of the Third Parties Act.

(c)

The parties to this Deposit Agreement do not require the consent of the Custodian to rescind or vary this Deposit Agreement at any time.

(d)

If the Custodian brings proceedings to enforce the terms of Clause 24 the Chargor shall only have available to it by way of defence, set-off or counterclaim a matter that would have been available by way of defence, set-off or counterclaim if the Custodian had been a party to this Deposit Agreement.

(e)

The Custodian may not take proceedings to enforce a term of this Deposit Agreement unless and until it gives notice in writing to the Chargor, in any manner as is permitted by Clause 18, agreeing irrevocably to the provisions of Clause 16.

24.

BANK'S INSTRUCTIONS TO THE CUSTODIAN

The Chargor hereby agrees that the Custodian shall be entitled to rely on and action any instructions which it receives from the Bank which the Bank is entitled to give to it pursuant to the terms of this Deposit Agreement.

IN WITNESS whereof this Deposit Agreement has been signed by the Bank, and the Chargor has executed and unconditionally delivered this Deposit Agreement as a DEED on the date first above stated.

SCHEDULE ONE

NOTICE OF CHARGE OF THE ASSETS 1

To:	Citibank, N.A.

Citigroup Centre

Canada Square

Canary Wharf

London E14 5LB

We refer to the Reinsurance Deposit Agreement (Charge Form - Citibank, N.A. as Custodian) (Form 12/CIFS) (the "Deposit Agreement") dated 20 th August 2010 entered into by Greenlight Reinsurance, Ltd (the "Chargor") in favour of Citibank Europe plc (the "Bank"), a copy of which is annexed hereto. Terms defined in the Deposit Agreement shall have the same meanings herein.

Pursuant to Clause 6 of the Deposit Agreement we give this notice to you on behalf of the Chargor. [This notice is in addition to, and does not replace, any previous notices given to you in connection with the Deposit Agreement.] 2

Notice is hereby given by us to you that, by and pursuant to the Deposit Agreement the Chargor has charged in favour of the Bank all of its right, title and interest in the Assets.

This notice is given in respect of the Accounts and the accounts opened pursuant to Clause 3(c) of the Deposit Agreement in existence as at the date of this Notice.

Please note that, pursuant to the terms of the Deposit Agreement, the Chargor is not entitled to permit or agree to any variation of the rights attaching to the Assets or any Account or to receive, withdraw or otherwise deal with or transfer the Assets or any Account except to the extent otherwise expressly provided in the Deposit Agreement.

Please accept this notice by signing the enclosed acknowledgement and returning it to the Bank at Citibank Europe plc, Insurance Letter of Credit Department, 2 nd Floor, 1 North Wall Quay, Dublin 1, Republic of Ireland.

Yours faithfully,

Niall Tuckey

for and on behalf of

Citibank Europe plc

/s/ Niall Tuckey

Signature(s)

Dated: 20 August 2010

1 This notice is to be given to the Custodian following the establishment of each Account and of each account opened pursuant to clause 3(c) of the Deposit Agreement.

2 To be included where a previous notice has been given.

ACKNOWLEDGEMENT OF NOTICE OF CHARGE OF THE ASSETS 3

To: Citibank Europe plc

Insurance Letter of Credit Department

2 nd Floor

1 North Wall Quay

Dublin 1

Republic of Ireland

At your request we acknowledge receipt of the Notice of Charge August 20th 2010 on the terms attached and in respect of the Assets (as defined in such notice).

We acknowledge that the Chargor is not entitled to permit or agree to any variation of the rights attaching to the Assets or any Account or to receive, withdraw or otherwise deal with or transfer the Assets or any Account except to the extent otherwise expressly provided in the Deposit Agreement.

We shall not permit any amount to be withdrawn from any of the Accounts or any of the accounts opened pursuant to clause 3(c) of the Deposit Agreement without your prior written consent.

Yours faithfully,

Peadar MacCanna, Director

for and on behalf of

Citibank, N.A.

3 To be executed and returned in respect of each Notice of Charge.

SCHEDULE TWO

For the purposes of Clause 3(a)(i):

A Reinsurance Deposit may, at the election of the Chargor, be in any currency which is acceptable to the Bank and which is freely transferable and convertible into U.S. dollars. Where, after a Reinsurance Deposit has been established, the currency of all or a portion thereof ceases to be acceptable to the Bank, the Bank may require that such Reinsurance Deposit or such portion thereof be converted into or re-established in another currency acceptable to the Bank and may instruct the Custodian to so convert or re-establish such deposit. The Bank is irrevocably authorised (without reference to us) to so instruct the Custodian.

Where a Reinsurance Deposit or a portion thereof is denominated in the same currency as a Credit (the "Credit Currency" ), the Reinsurance Deposit or such portion thereof shall have a value of 100% of its value in the relative Credit Currency; and for this purpose the Bank (and the Custodian) shall notionally match each Credit with a Reinsurance Deposit or a portion thereof denominated in the relative Credit Currency.

Where a Reinsurance Deposit or a portion thereof is denominated in a currency other than the relative Credit Currency, both the proportion specified above of the face value of the Credit (the "Required Value" ) (or, where only a portion of the Reinsurance Deposit is in the relative Credit Currency, the balance of the Required Value remaining unmatched) and the Reinsurance Deposit or such portion thereof shall be notionally converted into a common base currency (as the Bank may in its reasonable discretion determine); and following such notional conversion the Reinsurance Deposit or such portion thereof shall suffer a deduction of the Relevant Percentage, to cover exchange movements that may from time to time affect the value of the underlying unmatched Reinsurance Deposit or a portion thereof and the contingent obligations to which it relates.

4.	The "Relevant Percentage" means:

(a)

where a Reinsurance Deposit or a portion thereof is denominated in U.S. dollars, Canadian dollars or Sterling, 10%;

(b)

where a Reinsurance Deposit or a portion thereof is denominated in Euro, Swiss francs or Japanese yen, 15%; and

(c)

where a Reinsurance Deposit or a portion thereof is denominated in any other currency, 25%.

5.	For the purposes of each notional conversion to be effected hereunder the provisions of Clause 14(a) shall apply mutatis mutandis.

SCHEDULE THREE

Custodian’s Undertaking

Name of Custodian and address of its registered or principal office :

CITIBANK, N.A., FAO: INSURANCE LETTER OF CREDIT PRODUCT MANAGER, CITIGROUP CENTRE, CANADA SQUARE, CANARY WHARF, LONDON E14 5LB

( the "Custodian" )

Name of Chargor and address of its registered or principal office :

Greenlight Reinsurance, Ltd

65 Market Street

Suite 1207, Jasmine Court

Camana Bay, PO Box 31110 Grand Cayman, KY1-1205

CAYMAN ISLANDS

facsimile no: 345 943 4573 Company Number: CR - 137831 ( the "Chargor" )

Date of Reinsurance Deposit Agreement (Charge Form - Citibank, N.A. as Custodian)

(Form 12/CIFS): 20 th August 2010

To:

CITIBANK EUROPE PLC (the "Bank")

Insurance Letter of Credit Department

2 nd Floor

1 North Wall Quay

Dublin 1

Republic of Ireland

We, the Custodian, refer to the above-mentioned Deposit Agreement (the "Deposit Agreement") between the Chargor and the Bank. Save where the context otherwise requires, terms defined in the Deposit Agreement shall have the same meanings herein.

In consideration of the Bank establishing, maintaining, amending, renewing or substituting or arranging the establishment, maintenance, amendment, renewal or substitution of a Credit pursuant to any Agreement or otherwise granting financial accommodation to the Chargor, and pursuant to instructions received by the Custodian from the Chargor, the Custodian hereby represents and irrevocably undertakes and agrees to and with the Bank as follows:

The Custodian will hold the Assets to the Bank's Order and for such purposes will act as pledgeholder for and on behalf of the Bank in accordance with the terms of the Deposit Agreement and will comply with all undertakings it gives in each Acknowledgement of Notice.

We have not received notice of any previous assignments of, charges over or trusts in respect of, the Assets or the Account(s) and we will not, without the Bank's prior written consent (a) exercise any right of combination, consolidation or set-off which we may have in respect of the Assets or the Account(s) or (b) amend or vary any rights attaching to the Assets or the Account(s).

The Custodian will ensure that the Bank has, at all times, such access (electronic or otherwise) to the collateral platform computer systems and records currently named "Flexecube" and "Cosmos" which are maintained by the Custodian (and any successor or replacement computer systems and/or records) (collectively the "Computer Systems") as the Bank may require from time to time.

The Custodian will ensure that:

(a)

the Computer Systems display, at all times, all the information that the Bank may require from time to time; and

(b)	that such information is correct, complete and up-to-date at all times.

The Custodian will, without prejudice to the remainder of this Undertaking, comply with any instructions received from persons authorised by the Bank pursuant to the Bank's rights under:

(a)

Clause 3(c) of the Deposit Agreement (and will establish such accounts as may be necessary pursuant to such Clause);

(b)	Clause 21 of the Deposit Agreement; and

(c)	the Second Schedule to the Deposit Agreement.

All rights and interests of the Custodian in or towards the Assets or any Account or any part thereof are and shall be subordinated and postponed to the Bank’s rights and interests therein under and pursuant to the Deposit Agreement, save that the Custodian shall be entitled to debit any account of the Chargor with the Custodian with any reasonable fees or commissions due and owing by the Chargor to the Custodian in respect of the Assets or part thereof.

(a)

Any notice, demand or other communication to be served on us by you (or vice versa) hereunder must be served on the relevant party:

(i)

at such party's address stated at the beginning of this Undertaking (or such other address as either party may notify the other of from time to time); or;

(ii)

by facsimile to such number as either party may notify the other of from time to time;

(b)	Any notice, demand or other communication:-

(i)

sent by post to either party, shall be deemed to have been served on the relevant party at 10.00 a.m. (London time) on the third Business Day after and exclusive of the date of posting; or

(ii)

sent by facsimile shall be deemed to have been served on the relevant party when dispatched. In proving such service by post it shall be sufficient to show that the letter containing the notice, demand or other communications was properly addressed and posted and such proof of service shall be effective notwithstanding that the letter was in fact not delivered or was returned undelivered .

This Undertaking shall be governed by and construed in accordance with, English law and, for the benefit of the Bank, the Custodian hereby irrevocably submits to the jurisdiction of the English courts in respect of any dispute which may arise from or in connection with this Undertaking.

A person who is not a party to this Undertaking has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Undertaking.

Peadar MacCanna, Director

(Authorised Signatory)

for and on behalf of the Custodian

20th August, 2010

* The COMMON or CORPORATE SEAL of
the CHARGOR was hereto affixed
to this DEED in the presence of:
/s/Tim Courtis________________________
Tim Courtis
Chief Financial Officer


* * EXECUTED as a DEED
by the CHARGOR

/s/ Tim Courtis
Tim Courtis
Chief Financial Officer

/s/ Faramarz Romer
Faramarz Romer
Reporting & Compliance Officer

Accepted and agreed for and on behalf of	)
CITIBANK EUROPE PLC	)
/s/ Niall Tuckey
By: Niall Tuckey

* For a company whose internal constitution requires it to execute documents by seal. The seal must be applied in accordance with the company's internal constitution

** For a company whose internal constitution does not require it to execute documents by seal (there is no longer a legal requirement for a company incorporated in England and Wales to execute deeds by seal unless its internal constitution (as decided voluntarily by the company in question) requires it to do so).

*** For a company, firm or corporation which is not incorporated in England and Wales, please execute this Form 12/CEP in accordance with local practice for documents of a similar nature.

AMENDED AND RESTATED AGREEMENT

by and among

GREENLIGHT REINSURANCE, LTD.,

GREENLIGHT REINSURANCE IRELAND, LTD.,

GREENLIGHT CAPITAL RE, LTD. (for limited purposes)

and

DME ADVISORS, LP

AMENDED AND RESTATED AS OF AUGUST 31, 2010

TABLE OF CONTENTS

Page

Article I Definitions

Article II Organization

2.1. Purpose of Agreement

2.2. Assets

2.3. Term of Agreement

2.4. Objectives

2.5. Actions by DME

2.6. Reliance by Third Parties

2.7. Liability of Participants

Article III Capital

3.1. Contributions to Capital

3.2. Rights of Participants in Capital

3.3. Capital Accounts

3.4. Allocation of Net Profits and Net Losses

3.5. Allocations Relating to New Issues and Designated Securities

3.6. Allocation of DME Share Payment, Withholding Taxes and Certain Other Expenditures

3.7. Reserves; Adjustments for Certain Future Events

3.8. Performance Allocation

3.9. Allocations for Income Tax Purposes

3.10. Qualified Income Offset

3.11. Gross Income Allocation

3.12. Individual Participants’ Tax Treatment

3.13. Distributions

Article IV Management

4.1. Duties and Powers of the Participants

4.2. Expenses

4.3. Other Activities of Participants

4.4. Duty of Care; Indemnification

4.5. Fiduciary Duties; Discretion

Article V Admissions and Withdrawals

5.1. Admission of Participants

5.2. Withdrawal of Interests of Participants

5.3. Transfer of Interests in Participants

Article VI Termination and Liquidation

6.1. Termination of this Agreement

6.2. Liquidation of the Venture

Article VII Accounting and Valuations; Books and Records; Board Meetings

7.1. Accounting and Reports

7.2. Valuation of Assets and Interests

7.3. Determinations by DME

7.4. Books and Records

7.5. Greenlight Re or GRIL Board Meeting

Article VIII General Provisions

8.1. Amendment of Agreement

8.2. Notices

8.3. Agreement Binding Upon Successors and Assigns

8.4. Governing Law

8.5. Not for Benefit of Third Parties

8.6. Consents

8.7. Miscellaneous

8.8. Entire Agreement

THIS AMENDED AND RESTATED AGREEMENT (the “Agreement” ) is made as of this 31st day of August, 2010 by and among Greenlight Reinsurance, Ltd., incorporated under the laws of the Cayman Islands as an exempted company with limited liability and a holder of a Class B Insurer’s license issued in accordance with the terms of the Insurance Law (as revised) of the Cayman Islands (“Greenlight Re” ), Greenlight Reinsurance Ireland, Ltd., Incorporated under the laws of Ireland as a non-life reinsurer in accordance with the provisions of the European Communities (Reinsurance) Regulation 2006 ( “GRIL” ) and DME Advisors, LP, a Delaware limited partnership (“DME” ), and, solely for the purposes set forth in Section 4.1 (d) and (e), Greenlight Capital Re, Ltd. incorporated under the laws of the Cayman Islands as an exempted company with limited liability (“Greenlight Capital Re” );

WHEREAS, on January 1, 2008, Greenlight Re, DME and Greenlight Capital Re entered into an agreement, as amended by Amendment No. 1 dated as of February 20, 2009 (the “Original Agreement” ) for the purpose of creating a joint venture solely with respect to the management of certain investable assets and to share in the profits and losses therefrom as described in this Agreement;

WHEREAS, the parties to the Original Agreement desire to amend and restate the Original Agreement to have GRIL join as a Participant (as defined below);

WHEREAS, GRIL is willing to become a party to the Agreement, subject to the terms and conditions stated herein;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the undersigned parties agree as follows:

_____________

Article I

Definitions

_____________

For purposes of this Agreement:

“Affiliate” means with respect to any Person, a Person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such Person. For these purposes, the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting Securities, by contract or otherwise.

“Agreement” means this Agreement, as amended from time to time.

“Assets” has the meaning set forth in Section 2.2 .

“Business Day” means any day on which banks are open for business in New York, New York, Ireland and the Cayman Islands.

“Board” means with respect to each of GRIL or Greenlight Re such party’s full board of directors, or, if required by law, regulation or securities exchange upon which such party’s common shares are listed, an independent committee of the Board; provided , however , that any such independent committee shall consist of all members of such party’s board of directors that are not expressly prohibited by applicable law, regulation or securities exchange from participating in an action to be taken by the Board pursuant to this Agreement.

“Capital Account” means with respect to each Participant a memorandum account established and maintained on behalf of such Participant as described in Section 3.3 .

“Carryforward Account” means a memorandum account to be recorded by DME in the books and records of the venture with respect to each Participant that has an initial balance of zero and that is adjusted as follows:

As of the first day after the close of each Performance Period for such Participant (prior to giving effect to the Performance Allocation, if any), the balance of the Carryforward Account (a) is increased by the amount, if any, equal to two and one half times such Participant’s Negative Performance Change for such Performance Period and (b) is reduced (but not below zero) by the amount, if any, of such Participant’s Positive Performance Change for such Performance Period.

“Code” means the U.S. Internal Revenue Code of 1986, as amended and as hereafter amended, or any successor law.

“Commencement Date” means the first date on or as of which a Participant makes a Capital Contribution to the venture pursuant to this Agreement. The Commencement Date with respect to each of Greenlight Re and DME is January 1, 2008 and with respect to GRIL is August 31, 2010.

“Company Act” means the U.S. Investment Company Act of 1940, as amended.

“Covered Person” means DME, the general partner of DME, and their respective members, partners, managers, directors, officers, employees and agents, and any Person who controls DME or its general partner.

“Designated Securities” means an Asset, designated as such by DME, either at the time of acquisition or at a later date, in which a Participant has an ownership interest different than its Percentage, which (a) may include no interest at all for a Participant and (b) interest may not be on a pro rata basis. An Asset may be designated as a Designated Security due to Guideline restrictions or for such other reason as deemed appropriate by DME in its sole discretion.

“DME Share Payment” means with respect to each Participant other than DME, an amount per month equal to 0.125% (an annual rate of 1.5%) of the Capital Account balance of each such Participant.

“ Effective Date ” means August 31, 2010.

“ERISA” means the Employee Retirement Income Security Act of 1974, as the same may be amended from time to time.

“Entity” has the meaning set forth in Section 4.1(b) .

“Final Determination” means (1) with respect to U.S. federal income taxes, a “determination” (as defined in Section 1313(a) of the Code) or the execution of a settlement agreement with the Internal Revenue Service (pursuant to Form 870-AD or otherwise) and (2) with respect to taxes other than U.S. federal income taxes, any judicial or administrative determination or settlement that is substantially similar to a Final Determination described in clause (1).

“FINRA” means the Financial Industry Regulatory Authority (formerly known as the National Association of Securities Dealers, Inc.)

“ FINRA Rule 5130 ” means Rule 5130 promulgated by FINRA.

“Fiscal Period” means each period that starts on the Commencement Date (in the case of the initial Fiscal Period) and thereafter on the first day immediately following the last day of the preceding Fiscal Period, and that ends on the earliest of the following dates:

(1)

the last day of any calendar month; or

(2)

any date as of which any withdrawal or distribution of capital is made by or to any Participant or as of which this Agreement provides for any amount to be credited to or debited against the Capital Account of any Participant, other than a withdrawal or distribution by or to, or an allocation to the Capital Accounts of, all Participants that does not result in any change of any Participant’s Percentage; or

(3)

the date that immediately precedes any day as of which a contribution to capital is made pursuant to this Agreement, other than a capital contribution that does not result in any change of any Participant’s Percentage; or

(4)

any other date that DME, in its reasonable discretion, selects.

“Fiscal Year” means the period commencing on January 1 of each year and ending on December 31 of such year.

“Force Majeure” shall mean fires, floods, acts of God or the public enemy, interference by civil or military authorities, terrorist acts, governmental actions, orders, requests.

“Greenlight Re Cause” means (i) a material violation of applicable law relating to DME’s advisory business, (ii) DME’s gross negligence, willful misconduct or reckless disregard of any of DME’s obligations under this Agreement, (iii) a material breach by DME of the Greenlight Re Guidelines, if such breach is not cured within fifteen (15) days following the earlier of (a) the date that DME becomes aware of such breach and (b) the date on which DME receives written notification of such breach from Greenlight Re, or (iv) a material breach by DME of Section 5.2 . For the avoidance of doubt, any termination hereof by Greenlight Re for “Greenlight Re Cause” shall require the approval of the Greenlight Re Board. Upon any termination of this Agreement for “Greenlight Re Cause”, DME will use all commercially reasonable efforts to follow the direction of the Greenlight Re Board with respect to the disposition of the applicable Assets necessary to satisfy Greenlight Re’s withdrawal; provided , however , that DME makes no guarantee that it can comply with such directions.

“Greenlight Re Guidelines” has the meaning set forth in Section 4.1(h) .

“GRIL Cause” means (i) a material violation of applicable law relating to DME’s advisory business, (ii) DME’s gross negligence, willful misconduct or reckless disregard of any of DME’s obligations under this Agreement, (iii) a material breach by DME of the GRIL Guidelines, if such breach is not cured within fifteen (15) days following the earlier of (a) the date that DME becomes aware of such breach and (b) the date on which DME receives written notification of such breach from GRIL, (iv) a material breach by DME of Section 5.2, or (v) unsatisfactory long term performance of DME, as determined by the sole discretion of the Board of GRIL on each anniversary date of this Agreement . For the avoidance of doubt, any termination hereof by GRIL for “GRIL Cause” shall require the approval of the GRIL Board. Upon any termination of this Agreement for “GRIL Cause”, DME will use all commercially reasonable efforts to follow the direction of the GRIL Board with respect to the disposition of the applicable Assets necessary to satisfy GRIL’s withdrawal; provided , however , that DME makes no guarantee that it can comply with such directions.

“GRIL Guidelines” has the meaning set forth in Section 4.1(h) .

“Guidelines” has the meaning set forth in Section 4.1(h) .

“Interest” means all of the rights, obligations and interest(s) (in their entirety) of a Participant in the venture at the relevant time, including the right of such Participant to any and all benefits to which a Participant may be entitled as provided in this Agreement and the obligations of such Participant to comply with all the terms and provisions of this Agreement.

“Losses” has the meaning set forth in Section 4.4(a) .

“Managed Account” means assets managed by DME or any of its Affiliates, whether for its own account or for the account of any third party, that are invested or available for investment in investment or trading activities.

“Negative Performance Change” has the meaning set forth in the definition of Performance Change.

“Net Assets” means the total value, as determined by DME in accordance with Section 7.2 , of the Assets (including net unrealized appreciation or depreciation of the assets and accrued interest and dividends receivable net of any withholding taxes), less an amount equal to all accrued debts, liabilities and obligations chargeable against such Assets in accordance with this Agreement (including any reserves for contingencies accrued pursuant to Section 3.7 ). Except as otherwise expressly provided herein, Net Assets as of the first day of any Fiscal Period shall be determined on the basis of the valuation of Assets conducted as of the close of the immediately preceding Fiscal Period but after giving effect to any capital contributions made by any Participant subsequent to the last day of such immediately preceding Fiscal Period and Net Assets as of the last day of any Fiscal Period shall be determined before giving effect to any of the following amounts payable generally or in respect of any Securities which payments or allocations are effective as of the date on which such determination is made:

(1)

any withdrawals or distributions payable to any Participant that are effective as of the date on which such determination is made;

(2)

any DME Share Payment or Performance Allocation as of the date on which such determination is made; and

(3)

withholding taxes, expenses of processing withdrawals and other items payable, any increases or decreases in any reserves or other amounts recorded pursuant to Section 3.7 , and any increases or decreases in the value of any New Issues pursuant to Section 3.5 or in the value of any Designated Securities during the Fiscal Period ending as of the date on which such determination is made, to the extent DME reasonably determines that, pursuant to any provisions of this Agreement, such items should be charged to one or more individual Participants and not charged ratably to the Capital Accounts of all Participants on the basis of their respective Percentages as of the commencement of the Fiscal Period.

“Net Loss” means any amount by which the Net Assets as of the first day of a Fiscal Period exceed the Net Assets as of the last day of the same Fiscal Period.

“Net Profit” means any amount by which the Net Assets as of the last day of a Fiscal Period exceed the Net Assets as of the first day of the same Fiscal Period.

“New Issue” has the meaning assigned to such term in Section 3.5(a) hereof.

“Participant” means any Person (other than Greenlight Capital Re) that is or becomes a party to this Agreement, until the entire Interest of such Person has been withdrawn pursuant to Section 5.2 or a substitute Participant or Participants are admitted with respect to such Person’s entire Interest, or this Agreement is terminated pursuant to Section 6.1 and the Assets distributed or liquidated pursuant to Section 6.2 .

“Percentage” means a percentage established for each Participant as of the first day of each Fiscal Period representing such Participant’s share of allocations attributable to transactions involving the Capital Account for such Fiscal Period. The Percentage of a Participant for a Fiscal Period is determined by dividing the amount of the Participant’s Capital Account as of the beginning of the Fiscal Period (excluding the value of Designated Securities and after adjustment for all net contributions or withdrawals, DME Share Payment and Performance Allocations that are effective as of such date) by the aggregate Capital Accounts of all Participants as of the beginning of the Fiscal Period (excluding the value of Designated Securities after adjustment for all net contributions or withdrawals and DME Share Payment that are effective as of such date). The sum of the Percentages of all Participants for each Fiscal Period must equal 100%.

“Performance Allocation” means with respect to each Participant other than DME:

(1)

10% of the portion of the Positive Performance Change for such Participant’s Capital Account, if any, determined as of the close of each Performance Period, that is less than or equal to the positive balance in such Participant’s Carryforward Account as of the most recent prior date as of which adjustment has been made thereto; plus

(2)

20% of the portion of the Positive Performance Change for such Participant’s Capital Account, if any, determined as of the close of each Performance Period that exceeds the positive balance in such Participant’s Carryforward Account as of the most recent prior date as of which adjustment has been made thereto.

“Performance Change” means, with respect to each Participant for each Performance Period, the difference between:

(1)

the sum of (a) the balance of each such Participant’s Capital Account as of the close of the Performance Period (after giving effect to all allocations to be made to each such Participant’s Capital Account as of such date other than any Performance Allocation to be debited against each such Participant’s Capital Account), plus (b) any debits to each such Participant’s Capital Account during the Performance Period to reflect any actual or deemed distributions or withdrawals with respect to each such Participant’s Interest, plus (c) any debits to each such Participant’s Capital Account during the Performance Period to reflect any items allocable to each such Participant’s Capital Account pursuant to Section 3.6(b) or Section 3.6(c) hereof; and

(2)

the sum of (a) the balance of each such Participant’s Capital Account as of the commencement of the Performance Period, plus (b) any credits to such Participant’s Capital Account during the Performance Period to reflect any contributions by such Participant pursuant to this Agreement.

If the amount specified in clause (1) exceeds the amount specified in clause (2) such difference is a “Positive Performance Change,” and if the amount specified in clause (2) exceeds the amount specified in clause (1), the absolute value of such difference is a “Negative Performance Change.”

“Performance Period” means, with respect to a Participant, the period commencing as of the date that such Participant becomes a party to this Agreement (in the case of such Participant’s initial Performance Period) and thereafter each period commencing as of the day following the last day of the preceding Performance Period with respect to such Participant, and ending as of the close of business on the first to occur of the following after the relevant commencement date:

(1)

the last day of a Fiscal Year;

(2)

the withdrawal or Transfer by a Participant of its entire Interest; or

(3)

termination of this Agreement pursuant to Section 6.1(a) .

“Person” means any individual, partnership, corporation, limited liability company, trust, or other entity.

“Positive Performance Change” has the meaning set forth in the definition of Performance Change.

“Proceeding” has the meaning set forth in Section 3.12 .

“Regulations” means the regulations issued under the Code or any successor law.

“Regulation 114 Trust” means a three way investment trust that (i) involves an agreement among a cedent, a financial institution and a non-admitted reinsurer governed by Regulation 114 of the Official Compilation of Codes, Rules and Regulations (11 NYCRR4) of the New York State Insurance Department, (ii) is maintained in the United States in an approved financial institution and (iii) is collateralized only by cash and cash equivalents, U.S. Treasury securities and/or fixed income securities rated “A” or higher.

“Restricted Capital Accounts” has the meaning assigned to such term in Section 3.5(a) hereof.

“Securities” has the meaning set forth in Section 4.1(b) .

“ Tax Proceeding ” has the meaning set forth in Section 3.12 .

“Tax Treatment” has the meaning set forth in Section 3.12 .

“Transfer” means any sale, exchange, transfer, assignment or other disposition by a Participant of his Interest to another party, whether voluntary or involuntary, including a transfer by operation of law. Notwithstanding the foregoing, a pledge or lien by a Participant of any or all of its Interest made in accordance with, and permitted by, this Agreement shall not be deemed to be a Transfer.

“Treasury Bill Rate” means, with respect to any calendar month, a rate of interest, determined and adjusted monthly by DME as of the fifth Business Day of each month, equal to the annual coupon equivalent yield on 13-week U.S. Treasury bills resulting from the most recent auction of such instruments prior to the monthly determination date.

“venture” has the meaning set forth in Section 2.1(c) .

_____________

Article II

Organization

_____________

2.1. Purpose of Agreement

(a) The parties hereto hereby agree to form a joint venture to jointly own and manage certain assets and to share in net profits and net losses generated by these assets as more particularly described herein.

(b) Each of the Participants hereby agrees, subject to the remainder of this Agreement, to reasonably cooperate to carry out the intent of this Agreement and to effectuate, implement and continue the valid and subsisting existence of the relationship created hereby.

(c) The parties hereto acknowledge that they intend that the joint venture created by this Agreement be taxed as a partnership and not as an association taxable as a corporation for United States federal income tax purposes and references herein to the “venture” are references to such joint venture and tax partnership. No election may be made by a Participant to treat the relationship created by this Agreement as other than a partnership for United States federal income tax purposes.

2.2. Assets

From and after the Effective Date, the Participants acknowledge and agree that (i) the assets of the venture (the “ Assets ”) will be jointly owned but held in segregated accounts each in the name of Greenlight Re separate from Greenlight Re’s other assets, and (ii) all of the Assets shall be held in trust for the benefit of all Participants in accordance with the terms of this Agreement. DME will select one or more custodians for the Assets and will promptly notify each Participant in writing following the selection or change of custodians hereunder.

2.3. Term of Agreement

The term of this Agreement commences on the Commencement Date and continues, unless earlier terminated pursuant to Section 6.1 hereof, until December 31, 2013; provided, however , that this Agreement shall automatically continue for additional successive three-year periods unless DME notifies the other Participants that it wishes to terminate this Agreement at least 90 days prior to the end of the then current term. In the event that any Participant (other than DME) notifies the other Participants that it wishes to withdraw as a Participant and terminate its participation in the venture at least 90 days prior to the end of the then current term, the electing party shall withdraw from the venture, and shall be deemed to have elected a withdrawal of its entire Capital Account as of the end of such term as provided for in Section 5.2 and the provisions of this Agreement shall no longer apply to such Participant (except those provisions which by their terms apply to Participants following their withdrawal).

2.4. Objectives

The object and purpose of and the nature of the business to be conducted pursuant to this Agreement is investing, acquiring, holding, voting, disposing and otherwise dealing with the Securities consistent with the terms of this Agreement (including, without limitation, the applicable Guidelines) and engaging in any and all activities necessary or incidental to the foregoing.

2.5. Actions by DME

Subject to the limitations contained elsewhere in this Agreement, DME, on behalf of the Participants, may execute, deliver and perform all contracts, agreements and other undertakings and engage in all activities and transactions as may, in the reasonable discretion of DME, be necessary or advisable to carry out the objectives of this Agreement (including without limitation all federal securities filings relating to any of the investment activities set forth in Section 4.1(b) ), provided , however , that if a contract, agreement or other undertaking is or is to be made by DME on behalf of Greenlight Re and/or GRIL that could reasonably be expected to require disclosure on a Form 8-K pursuant to Section 13 or 15(d) of the United States Securities Exchange Act of 1934, as amended, or other applicable law, DME shall promptly notify Greenlight Re and/or GRIL and cooperate with Greenlight Re and/or GRIL to allow a timely and proper disclosure to be made.

2.6. Reliance by Third Parties

Persons dealing with any Participant, individually or in the aggregate as it relates to the Assets or the relationship created by this Agreement, are entitled to rely conclusively upon the power and authority of each such Participant as herein set forth.

2.7. Liability of Participants

In no event will any Participant (or former Participant) be obligated to make any capital contribution in addition to its agreed capital contributions (or other payments provided for herein) or have any liability for the repayment or discharge of debts and obligations of the venture except to the extent provided herein or as required by law.

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Article III

Capital

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3.1. Contributions to Capital

(a) As of the Effective Date of this Agreement, GRIL simultaneously will make or will have made an initial contribution to the venture. Following such contribution, each Participant as of the Effective Date shall have a Capital Account balance equal to the amounts set forth on Exhibit B .

(b) Each Participant, as applicable, shall make additional capital contributions in accordance with Section 3.6(b) , Section 4.1(d) and 4.1(e) hereof. In the event that DME’s Percentage falls below 1%, it shall promptly (and in any event within five (5) Business Days of such occurrence) make a capital contribution necessary to increase its Percentage to at least 1%. DME shall not be required to make any other additional capital contributions except as otherwise specifically contemplated by this Agreement.

3.2. Rights of Participants in Capital

(a) No Participant is entitled to interest on any contributions made pursuant to this Agreement.

(b) No Participant has the right to the return of any contribution made pursuant to this Agreement except (i) upon a withdrawal by a Participant pursuant to Section 5.2 or (ii) upon the termination of this Agreement pursuant to Section 6.1 . The entitlement to any such return at such time is limited to the value of the Capital Account of the Participant.

3.3. Capital Accounts

(a) Each Participant shall have a separate Capital Account relating to its Interest.

(b) Each Participant’s Capital Account shall have an initial balance equal to the amount of any cash and the net value, as determined in accordance with Section 7.2 hereof, of any assets constituting such Participant’s initial contribution, as listed on Exhibit B .

(c) Each Participant’s Capital Account shall be increased by the amount of cash and the net value, as determined in accordance with Section 7.2 hereof, of any assets constituting additional contributions by such Participant and decreased by the amount of cash and the net value of any assets withdrawn by and distributed to such Participant and such Participant’s pro rata portion of the expenses allocable pursuant to Section 4.2(a) .

(d) Each Participant’s Capital Account shall be adjusted in the manner specified in the remaining provisions of Article III.

3.4. Allocation of Net Profits and Net Losses

(a) Except as otherwise expressly provided herein, all capital contributions by a Participant shall be credited to such Participant’s Capital Account, and all withdrawals by or distributions to such Participant shall be debited from such Participant’s Capital Account to the extent thereof. Subject to the remaining provisions of this Section 3.4 , Section 3.5 , and Section 3.8 as of the last day of each Fiscal Period, any Net Profit or Net Loss for such Fiscal Period shall be allocated among and credited to or debited against the Capital Accounts of the Participants in proportion to their respective Percentages for such Fiscal Period.

(b) Notwithstanding Section 3.4(a) , items of income, gains, losses, deduction, credit and expenses that relate to investments in New Issues and Designated Securities shall be allocated pursuant to Section 3.5 below. DME acknowledges that Greenlight Re holds a Class B Insurer’s license issued in accordance with the terms of the Insurance Law (as revised) of the Cayman Islands and that GRIL is a non-life reinsurer in accordance with the provisions of the European Communities (Reinsurance) Regulations 2006.

3.5. Allocations Relating to New Issues and Designated Securities

(a) Pursuant to FINRA Rule 5130, the venture may only acquire certain publicly-offered securities (“ New Issues ”) if the Capital Accounts of Participants connected with the securities industry ( “Restricted Capital Accounts” ) are restricted from sharing a beneficial interest in such New Issues in accordance with the provisions of FINRA Rule 5130. Notwithstanding the provisions of Section 3.4 above, to enable investment in New Issues, DME shall not allocate any items of income, gain, loss, deduction and credit that relate to investments in New Issues to Restricted Capital Accounts except to the extent permitted by FINRA Rule 5130 and shall instead allocate such items among the other Capital Accounts on a pro rata basis. To the extent that FINRA Rule 5130 permits certain persons with Restricted Capital Accounts to participate in New Issues, DME will allocate such New Issue among such Restricted Capital Accounts on a pro rata basis. DME may specially allocate a carrying charge to compensate Participants with Restricted Capital Accounts to the extent such Restricted Capital Accounts do not participate in investments in New Issues for the use of capital to purchase or carry such positions. To the extent consistent with FINRA Rule 5130, as amended from time to time, DME shall determine when all Capital Accounts may participate in the Net Profit and Net Loss from any New Issue. DME shall value any New Issue at such time at the then-current price of the security in the secondary market.

(b) DME may, in its discretion, elect to designate an Asset as a Designated Security. Notwithstanding the provisions of Section 3.4 above, items of income, gains, losses, deduction, credit and expense that relate to a Designated Security shall be allocated to Capital Accounts in such percentages as DME shall reasonably determine (taking into account each Participant’s Guidelines, regulatory restrictions and other items deemed relevant by DME). Whenever DME makes an investment that is in a Designated Security or whenever an existing investment is first designated as a Designated Security by DME, DME shall establish a sub-account with respect to each Participant that participates in such Designated Security to reflect such Participant’s Capital Account’s pro rata share of all allocations and distributions attributable to transactions involving such Designated Security. If DME determines that an investment no longer warrants treatment as a Designated Security or that a Participant may or must participate at a different percentage, DME will either deem such investment no longer to be a Designated Security or reallocate interest in the Designated Security to reflect the change in ownership percentage. In the event of a withdrawal request by a Participant pursuant to Section 5.2 , DME shall have the discretion to effect such withdrawal request first out of the Participant’s Capital Account (excluding the Designated Securities sub-account) and then out of the Designated Security sub-account.

3.6. Allocation of DME Share Payment, Withholding Taxes and Certain Other Expenditures

(a) As of the first day of each month, the DME Share Payment for such month shall be debited against the Capital Account of each Participant (other than DME) and paid in cash to DME. All applicable DME Share Payment accrues from the Commencement Date with respect to each Participant and is payable monthly in advance on the first day of the month, based on the Capital Account balance of each such Participant as of the beginning of such month (or on the Commencement Date with respect to such Participant in the case of the first month of this Agreement). If this Agreement is terminated in accordance with its terms as of a date other than the last day of a month, the DME Share Payment for the final month shall be prorated to the date of termination. All payments of the DME Share Payment to DME under this Agreement shall be made without any reduction, deduction or withholding for or on account of any tax (including without limitation, any value added tax), unless required by law. If reduction, deduction or withholding of any tax (including without limitation, any value added tax) is required by law from any such payment, the sum payable shall be increased as necessary so that after making all required deductions and withholdings, DME receives an amount equal to the amount that it would have received had no such deductions or withholdings been made.

(b) If the venture or a Participant incurs a withholding tax or other tax obligation with respect to the share of income allocable to any Participant, then DME, on behalf of the venture or of such Participant, shall (unless otherwise agreed by such Participant) withhold the appropriate portion of such Participant’s share of income, timely remit such amount to the applicable taxing authority and cause the amount of such obligation to be debited against the Capital Account of such Participant as of the close of the Fiscal Period during which such obligation was paid. If the amount of such taxes is greater than such Capital Account balance, then such Participant and any successor to such Participant’s Interest must, in connection with this Agreement, make a capital contribution in the amount of such excess. No one other than the Participant is obligated to apply for or obtain a reduction of or exemption from withholding tax on behalf of any Participant that may be eligible for such reduction or exemption but DME will provide any assistance reasonably requested by a Participant, at such Participant’s cost, in connection with establishing any such reduction or exemption. Notwithstanding the foregoing, DME shall bear the financial obligation of any withholding or other tax obligation if the venture, Greenlight Re or GRIL incurs such withholding or other tax obligation with respect to the share of income allocable to Greenlight Re or GRIL, as the case may be, that (i) Greenlight Re or GRIL, as the case may be, would not have been subject to but for the establishment of, and the investment by, the venture, and (ii) increases Greenlight Re’s or GRIL’s aggregate tax liability compared to Greenlight Re’s or GRIL’s aggregate tax liability had the investment been made by Greenlight Re or GRIL, directly or otherwise, outside of the venture.

(c) Except as otherwise provided for in this Agreement, any expenditures payable by or on behalf of the venture, to the extent determined by DME to have been paid or withheld on behalf of, or by reason of particular circumstances applicable to, one or more but fewer than all of the Participants, are to be charged to only those Participants on whose behalf such payments are made or whose particular circumstances gave rise to such payments. Such charges are debited from the Capital Accounts of such Participants as of the close of the Fiscal Period during which any such items were accrued or paid.

3.7. Reserves; Adjustments for Certain Future Events

(a) Appropriate reserves may be created, accrued and charged against the Net Assets and proportionately against the Capital Accounts of the Participants for contingent liabilities associated with the venture, including, without limitation, for accrued Performance Allocation amounts, such reserves to be in the amounts that DME, in its reasonable discretion, deems necessary or appropriate. DME may increase or reduce any such reserve from time to time by such amounts as DME in its reasonable discretion deems necessary or appropriate. At the reasonable discretion of DME, the amount of any such reserve, or any increase or decrease therein, may be charged or credited, as appropriate, to the Capital Accounts of those parties who are Participants at the time when such reserve is created, increased, or decreased, as the case may be, or alternatively may be charged or credited to those parties who were Participants at the time of the act or omission giving rise to the contingent liability for which the reserve was established.

(b) If DME in its reasonable discretion determines that it is equitable to treat an amount to be paid or received as being applicable to one or more prior periods, then such amount may be proportionately charged or credited, as appropriate, to those parties who were Participants during such prior period or periods. If any amount is to be charged or credited to a party who is no longer a Participant, such amount must be paid by (in the case of a charge) or to (in the case of a credit) such party, as the case may be, in cash with interest at the Treasury Bill Rate in effect at that time from the date on which DME determines that such charge or credit is required. In the case of a charge, the former Participant is obligated to pay the amount of the charge, or if another Participant has already paid the charge, to reimburse such other Participant promptly on demand; provided that (i) in no event is a former Participant obligated to make a payment exceeding the amount of its Capital Account at the time to which the charge relates, and (ii) no such demand may be made if the applicable limitation period under applicable law, if any, has expired. To the extent DME or the Participants fail to collect, in full, any amount required to be charged to such former Participant pursuant to paragraph (a) or (b) of this Section 3.7 , whether due to the expiration of the applicable limitation period, if any, or for any other reason whatsoever, the deficiency may be charged proportionately to the Capital Accounts of the current Participants.

(c) In the event any reserves in excess of $100,000 are created, accrued or charged against the Net Assets of Greenlight Re’s Capital Account, or any such reserves in excess of $100,000 are increased or decreased, DME will promptly, within five (5) Business Days following month end, provide written notice and a description of such event to Greenlight Re. In the event any reserves in excess of $100,000 are created, accrued or charged against the Net Assets of GRIL’s Capital Account, or any such reserves in excess of $100,000 are increased or decreased, DME will promptly, within five (5) Business Days following month end, provide written notice and a description of such event to GRIL.

3.8. Performance Allocation

(a) The Performance Allocation shall be debited against the Capital Account of each Participant (other than DME) as of the last day of each Performance Period with respect to such Participant, and the amount so debited shall be simultaneously credited to the Capital Account of DME.

(b) DME, in its sole discretion, may waive or reduce the Performance Allocation.

3.9. Allocations for Income Tax Purposes

(a) Except as otherwise required by Code Section 704(c), items of income, gain, deduction, loss, or credit that are recognized for income tax purposes in each Fiscal Year shall be allocated among the Participants, in such manner as to reflect equitably amounts credited to or debited against each Participant’s Capital Account, whether in such Fiscal Year or in prior Fiscal Years. To this end, DME shall establish and maintain records that show the extent to which the Capital Account of each Participant, as of the last day of each Fiscal Year, consists of amounts that have not been reflected in the taxable income of such Participant. To the extent deemed by DME, in its reasonable discretion, to be feasible and equitable, taxable income and gains in each Fiscal Year shall be allocated among the Participants who have enjoyed the related credits to their Capital Accounts, and items of deduction, loss and credit in each Fiscal Year shall be allocated among the Participants who have borne the burden of the related debits to their Capital Accounts.

(b) To the extent an adjustment to the adjusted tax basis of any Asset or any Capital Account pursuant to Code Section 734(b) is required under Regulations Sections 1.704-1(b)(2)(iv)(m)(4) and (5) to be taken into account in determining Capital Accounts, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) and such gain or loss shall be specially allocated to the Participants in the same manner that the gain or loss displaced by such basis adjustment would have been allocated had the assets in question been sold.

3.10. Qualified Income Offset

In the event any Participant receives any adjustments, allocations, or distributions described in Section 1.704-1(b)(2)(ii)( d )( 4 ), 1.704-1(b)(2)(ii)( d )( 5 ), or 1.704 1(b)(2)(ii)( d )( 6 ) of the Regulations, items of income and gain will be specially allocated to each such Participant in an amount and manner sufficient to eliminate, to the extent required by the Regulations, the deficit balance in the Capital Account of such Participant as quickly as possible, provided that an allocation pursuant to this Section 3.10 may be made only if and to the extent that such Participant would have a deficit balance in its Capital Account after all other allocations provided for in this Article III have been tentatively made as if this Section 3.10 were not in the Agreement. This Section 3.10 is intended to constitute a “qualified income offset” within the meaning of Regulations Section 1.704-1(b)(2)(ii), and must be interpreted consistently therewith.

3.11. Gross Income Allocation

In the event any Participant has a deficit Capital Account at the end of any Fiscal Year that is in excess of the sum of (i) the amount such Participant is obligated to restore pursuant to any provision of this Agreement and (ii) the amount such Participant is deemed to be obligated to restore pursuant to the penultimate sentences of Regulations Section 1.704-2(g)(1) and 1.704-2(i)(5), each such Participant will be specially allocated items of income and gain in the amount of such excess as quickly as possible, provided that an allocation pursuant to this Section 3.11 may be made only if and to the extent that such Participant would have a deficit Capital Account in excess of such sum after all other allocations provided for in this Article III have been made as if Section 3.10 hereof and this Section 3.11 were not in the Agreement.

3.12. Individual Participants’ Tax Treatment

(a) Except with regard to the treatment of the venture as a partnership for U.S. tax purposes and the treatment of the Performance Allocation as contemplated by this Agreement ( “Tax Treatment” ), each Participant agrees not to treat, on any income tax return or in any claim for a refund, any item of income, gain, loss, deduction or credit in a manner inconsistent with the treatment of such item pursuant to the terms of this Agreement unless otherwise required by a Final Determination after such Participant uses its commercially reasonable efforts to uphold the treatment of the item in a manner consistent with the terms of this Agreement.

(b) Notwithstanding the foregoing, the parties shall not take any position inconsistent with the Tax Treatment. If a claim, action or proceeding (a “Tax Proceeding” ) is brought by the Internal Revenue Service or other taxing authority against a Participant or the venture challenging the Tax Treatment, such Participant shall provide prompt written notice to DME of such Tax Proceeding and DME shall be entitled to assume the defense of, and control all matters with regard to, such Tax Proceeding as it relates to the Tax Treatment in accordance with the procedures set forth in Section 4.4(e) . DME shall indemnify such Participant for any losses, damages, costs and expenses associated with any such Tax Proceeding in accordance with Section 4.4 of this Agreement whether or not it assumes the defense. DME shall use reasonable efforts to keep such Participant apprised of the status of such Tax Proceeding. No Participant may settle a Tax Proceeding inconsistent with the Tax Treatment contemplated by this Agreement unless DME fails to assume or maintain the defense of the Tax Proceeding as contemplated by this Section 3.12(b) and Section 4.4(e) , or DME provides express prior written consent.

3.13. Distributions

(a) Subject to Section 5.2 , the amount, form and timing of any distributions pursuant to this Agreement are determined by DME.

(b) Notwithstanding any provision to the contrary contained in this Agreement, DME may not make a distribution to any Participant on account of such Participant’s Interest if such distribution would violate any applicable law.

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Article IV

Management

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4.1. Duties and Powers of the Participants

(a) Subject to Section 4.1(h) below, DME shall be empowered (a) to formulate the overall trading and investment strategy of the venture (and the limited related borrowing activities associated therewith in order to implement such strategy) and (b) to exercise full discretion in the management of the trading and investment transactions and related activities contemplated by this Agreement in order to implement such strategy, including the authority to allocate a portion of the Assets to other trading advisors through managed accounts or collective investment vehicles. DME shall consider the interests of all Participants when exercising its discretion and shall not make investment decisions based on tax treatment that are or could be reasonably expected to be beneficial to DME to the detriment of other Participants.

(b) Subject to Section 4.1(c ) and Section 4.1(h) , in furtherance of the foregoing, the Participants hereby designate and appoint DME as agent and attorney-in-fact for purposes of this Agreement, with full power and authority and without the need for further approval of any Participant (except as may be required by applicable law) to have the exclusive power on behalf of the Participants to (i) effect any and all transactions in equity and debt securities (including derivatives thereon), currencies and commodities (and options, futures, derivatives, swaps, and forward contracts thereon), trade and other claims, arbitrages, loans, break-ups, consolidations, reorganizations and similar securities of non-United States issuers, and everything connected therewith in the broadest sense (“ Securities ”); (ii) determine all matters relating to the manner, method and timing of investment transactions and to engage consultants and analysts in connection therewith; (iii) select brokers (including prime brokers), custodians, dealers, banks and other intermediaries by or through whom such investment transactions will be executed or carried out; (iv) make short sales; (v) purchase or write options (including uncovered options); (vi) trade on margin; (vii) draw funds and direct banks, brokers or other custodians to effect deliveries of funds or assets, but only in the course of effecting investment transactions for the account of the venture and its Participants; (viii) exercise all voting and other powers and privileges attributable to any Securities or other property held for the account of the venture and its Participants hereunder; and (ix) make and execute all such documents and to take all such other actions as DME considers necessary or appropriate to carry out its investment advisory duties hereunder, including opening brokerage (including prime brokerage) accounts and any other required documentation including, without limitation, swaps, securities, lending arrangements and similar agreements on behalf of the venture and its Participants. DME may, with the prior consent of Greenlight Re or GRIL, as applicable (which consent may not be unreasonably withheld), effectuate the foregoing through one or more corporations, partnerships, limited liability companies or other entities formed on behalf of the venture (an " Entity "). For purposes of providing such consent, Greenlight Re or GRIL, as applicable, shall designate an authorized representative (and a substitute authorized representative in the event that the first authorized representative is unavailable) each of whom have the authority to provide such consent. A failure of an authorized representative to consent or reject the formation and use of an Entity in connection with a proposed transaction within twenty-four (24) hours of receipt of a written request (via electronic mail or otherwise) for approval from DME shall be deemed consent. For purposes of documenting the foregoing for third parties, each of the Participants shall execute a Power of Attorney in the form attached hereto as Exhibit C . Such Power of Attorney shall be subject to any limitations contained in this Agreement, including, without limitation, those limitations listed in Section 4.1(c) below.

(c) Notwithstanding anything to the contrary in this Agreement, DME shall use commercially reasonable efforts to avoid engaging in any activity or taking any action that would cause Greenlight Re or GRIL to be treated as engaged in a U.S. trade or business for U.S. federal income tax purposes, including investing in any asset that (i) does not qualify for the trading safe harbor provided in Section 864(b)(2) of the Code and the Treasury Regulations promulgated thereunder, or (ii) would be considered a United States real property interest for purposes of Section 897 of the Code.

(d) During the term of this Agreement none of Greenlight Capital Re, Greenlight Re or GRIL shall engage a person or entity, other than DME or, with the prior written consent of DME, a DME Affiliate, to act as its investment advisor or in a similar capacity. In furtherance of the foregoing, during the term of this Agreement, each of Greenlight Re and GRIL shall use its respective commercially reasonable efforts to cause substantially all of its investable assets to be contributed to the venture as soon as reasonably practicable; provided , however , that the term “investable assets” shall not be deemed to include (i) any assets of Greenlight Re which are, in the good faith determination of the Board of Greenlight Re, necessary for the operation of Greenlight Re’s business; (ii) up to 10% (20% if approved by the Board of Greenlight Re, and communicated in writing to DME) of Greenlight Re’s assets that are available for investment that are used to collateralize Regulation 114 Trusts; (iii) any assets of GRIL which are, in the good faith determination of the Board of GRIL, necessary for the operation of GRIL’s business; and (iv) up to 10% (20% if approved by the Board of GRIL, and communicated in writing to DME) of GRIL’s assets that are available for investment that are used to collateralize Regulation 114 Trusts.

(e) During the term hereof (including, for the avoidance of doubt, during any renewal term), Greenlight Re, GRIL and Greenlight Capital Re shall, and shall use their respective commercially reasonable efforts to cause any of their respective subsidiaries that are formed before or after the date hereof to (i) become a Participant or (ii) enter into an agreement similar to this Agreement, in each case relating to the investment of substantially all of their investable assets.

(f) In connection with the transactions contemplated by this Agreement, the Participants acknowledge and agree that in the course of selecting brokers, dealers, banks and financial intermediaries to effect such transactions, DME may agree to such commissions, fees and other charges as it shall deem reasonable under the circumstances, taking into consideration all such factors as DME deems relevant, including the following: the ability to effect prompt and reliable executions at favorable prices; the operational efficiency with which transactions are effected; the financial strength, integrity and stability of the broker; the quality, comprehensiveness and frequency of available research and other services considered to be of value (even if such research and other services are not for the exclusive benefit of the accounts of the venture and its Participants); and the competitiveness of commission rates in comparison with other brokers satisfying DME’s other selection criteria. It is understood that the costs of such services will not necessarily represent the lowest costs available and that DME is under no obligation to combine or arrange orders so as to obtain reduced charges.

(g) DME shall be the tax matters partner for purposes of this Agreement and Section 6231(a)(7) of the Code. The tax matters partner has the exclusive authority and discretion to make any elections required or permitted to be made by the venture under any provisions of the Code or any other applicable laws.

(h) Notwithstanding any provision of this Agreement to the contrary, DME hereby agrees to follow (i) the investment guidelines of Greenlight Re attached hereto as Exhibit A-1 (the “ Greenlight Re Guidelines ”), solely with respect to Assets in which Greenlight Re has an interest, and only to the extent of Greenlight Re’s interest in each such Asset, as the Greenlight Re Guidelines may be amended from time to time by the Board of Greenlight Re, and provided in writing to DME , and (ii) the investment guidelines of GRIL attached hereto as Exhibit A-2 (the “ GRIL Guidelines ”, and together with the Greenlight Re Guidelines, the “ Guidelines ”), solely with respect to Assets in which GRIL has an interest, and only to the extent of GRIL’s interest in each such Asset, as the GRIL Guidelines may be amended from time to time by the Board of GRIL and provided in writing to DME. For the avoidance of doubt, the Parties hereby acknowledge and agree that (x) the Greenlight Re Guidelines do not apply to any Assets in which Greenlight Re does not have an interest, and (y) the GRIL Guidelines do not apply to any Assets in which GRIL does not have an interest. DME shall not, except as otherwise approved by Greenlight Re or GRIL in writing, effect any investment transactions for the accounts of such Participant that are inconsistent with the Guidelines applicable to such Participant or other investment restrictions from time to time imposed by applicable regulation (as determined in good faith by the applicable Board) or adopted by the applicable Board; provided that such Guidelines and investment restrictions are communicated in writing to DME. DME may designate certain investments as Designated Securities in order to comply with the applicable Guidelines and investment restrictions.

4.2. Expenses

(a) All expenses incurred directly in connection with transactions effected or positions held for the account of the venture and its Participants (including, without limitation, custodial fees, brokerage commissions, research costs, market data fees, legal, consulting and auditing fees, interest on debit balances, withholding or transfer taxes) shall be paid or reimbursed by the venture. In addition, DME shall be entitled to be paid or reimbursed for other out-of pocket expenses (other than its own salary, office rent and other customary general administrative, overhead costs and the costs of maintaining books and records pursuant to Section 7.4 ) incurred in the performance of its duties pursuant to this Agreement. Expenses generally will be borne pro rata by the Participants in accordance with the balances in their respective Capital Accounts, except as provided elsewhere in this Agreement, including Sections 3.4 , 3.5 , 3.6 , and 3.9 .

(b) DME shall be entitled to use “soft dollars” generated by investments to pay for certain of its own operating and overhead costs, including payment of all or a portion of its costs and expenses of operation to the extent that DME, in its reasonable discretion, determines that any such costs and expenses are reasonably related to the investment decision-making process. Use of “soft dollars” by DME as described herein shall not constitute a breach by it of any fiduciary or other duty which DME may be deemed to owe to any other Participant or any Affiliate thereof.

(c) If DME shall incur any of the expenses for the account or benefit of, or in connection with its activities or those of its Affiliates on behalf of, both the venture and any Managed Account, DME, as appropriate, will allocate such expense among the venture and each such Managed Account in proportion to the size of the investment made by each of the venture and each Managed Account in the activity or entity to which the expense relates, or in such other manner as DME in good faith considers fair and reasonable.

(d) The venture does not have its own separate employees or office, and no Participant is entitled to reimbursement for salaries, office rent and other general overhead costs of such Participant in connection with this Agreement.

4.3. Other Activities of Participants

(a) DME is not required to devote its full time to its duties under this Agreement, but must devote such of its time to such duties as it, in its discretion exercised in good faith, determines to be necessary to conduct the affairs contemplated by this Agreement.

(b) This Agreement shall not restrict in any way the ability of DME or its Affiliates to engage in any other business or investment activities. It is expressly understood that DME and its Affiliates may effect investment transactions for their own account and for Managed Accounts which may or may not be affiliated with any Participant, and the Participants further understand and agree that nothing herein shall restrict the ability of DME or its Affiliates to engage in any such transactions notwithstanding the fact that the Participants may have, by virtue of this Agreement or otherwise, or may take a position of any kind; provided , however , that DME shall not, without the prior written consent of the applicable Board, purchase pursuant to this Agreement any Asset from, or sell pursuant to this Agreement, any Asset to, DME or any Managed Account which DME or an Affiliate is the investment advisor to or is otherwise a beneficial owner of; provided further , however , that failure to obtain such prior written consent shall not be deemed a breach of this Agreement if the applicable Board ratifies such purchase or sale after the fact. Notwithstanding the foregoing, DME may cause the venture and Managed Accounts that invest in parallel therewith to enter into book account trades in the ordinary course of business transferring portions of investments among the venture and all such Managed Accounts in order to reflect changes in the size of the venture relative to the size of such Managed Accounts without the need for consent or ratification by the Board of any such trades.

(c) It is understood that when DME determines that it would be appropriate for the venture and one or more of DME’s (or its Affiliates’) other Managed Accounts to participate in an investment opportunity, DME will seek to execute orders for, or otherwise allocate such opportunities to, the venture and such Managed Accounts on an equitable basis. In such situations, DME may place orders for the venture and each Managed Account simultaneously and if all such orders are not filled at the same price, DME may cause the venture and each Managed Account to pay or receive the average of the prices at which such orders were filled for the venture and all other Managed Accounts. If all such orders cannot be fully executed under prevailing market conditions, DME may allocate among the venture and the Managed Accounts the securities traded in a manner which DME considers in its reasonable discretion equitable, taking into account the size of the order placed for the venture and each such Managed Account as well as any other factors which DME deems relevant. However, DME is not obligated to devote any specific amount of time to its duties under this Agreement and is not required to accord exclusivity or priority to the venture or the Participants in the event of limited investment opportunities arising from the application of speculative position limits or other factors.

4.4. Duty of Care; Indemnification

(a) Each Participant agrees that no Covered Person shall be liable to the venture or to any of the Participants or their shareholders for any liabilities, obligations, losses, costs, damages, expenses, claims, judgments and reasonable attorneys fees and expenses (collectively, “ Losses ” ) occasioned by any act or omission of any Covered Person in connection with the performance of such Covered Person’s services hereunder, except that DME shall be liable to the Participants: (i) for any misstatement or omission of material fact contained in a filing made by or on behalf of a Participant under the United States Securities and Exchange Act of 1934 or other federal law or other public disclosure in so far as such losses, damages, expenses or claims arise out of or are based upon any written information provided by such Covered Person regarding the Participants or the venture expressly for use in such filing or other public disclosure, to the extent (and only to the extent) that such misstatement or omission of a material fact contained in such filing occurs in reliance upon and in conformity with the written information furnished by the Covered Person; (ii) for acts or omissions by it which constitute gross negligence, willful misconduct or reckless disregard of DME’s obligations under this Agreement, (iii) for breaches of the applicable Guidelines by DME which are not cured within 15 days of the earlier of (x) the date on which DME becomes aware of such breach, and (y) the date on which DME receives a written notice of such breach from a Participant or an authorized representative of a Participant; or (iv) for breaches of Section 5.2 hereof, in each case as finally determined by a court having proper jurisdiction and after all appeals are resolved or exhausted.

(b) Each Participant, to the extent of its interest in the Assets only, shall indemnify and hold harmless each Covered Person from and against any Losses arising out of any claim asserted or threatened to be asserted in connection with any matter arising out of or in connection with this Agreement or the venture’s business or affairs; provided , however , that no Covered Person shall be entitled to any such indemnification with respect to any expense, loss, liability or damage which was caused by (i) any misstatement or omission of material fact contained in a filing made by or on behalf of a Participant under the United States Securities and Exchange Act of 1934 or other federal law or other public disclosure in so far as such losses, damages, expenses or claims arise out of or are based upon any written information provided by such Covered Person regarding the Participants or the venture expressly for use in such filing or other public disclosure, to the extent (and only to the extent) that such misstatement or omission of a material fact contained in such filing occurs in reliance upon and in conformity with the written information furnished by the Covered Person, (ii) any Covered Person’s gross negligence, willful misconduct or reckless disregard of any of the its obligations under this Agreement, (iii) for breaches of the applicable Guidelines by DME in connection with its actions under this Agreement which breaches are not cured within 15 days of the earlier of (x) the date on which DME becomes aware of such breach, and (y) the date on which DME receives a written notice of such breach from a Participant; or (iv) for breaches of Section 5.2 hereof. The venture shall advance to any Covered Person the reasonable costs and expenses of investigating and/or defending such claim subject to receiving a written undertaking from the Covered Person to repay such amounts if and to the extent of any subsequent determination by a court or other tribunal of competent jurisdiction that the Covered Person was not entitled to indemnification hereunder. Notwithstanding the foregoing, no Participant shall be liable hereunder for any settlement of any action or claim effected without its consent thereto, which will not be unreasonably withheld.

(c) All transactions effected pursuant to this Agreement by DME shall be for the Participants’ accounts and risk. DME has not made and makes no guarantee whatsoever as to the success or profitability of DME’s trading methods and strategies, and the Participants each acknowledge that it has received no such guarantee from DME or any Covered Person, and has not entered into this Agreement in consideration of or in reliance upon any such guarantee or similar representation from DME or any Covered Person.

(d) DME shall indemnify and hold harmless each of the Participants against any Losses which were caused by: (i) any misstatement or omission of material fact contained in a filing made by or on behalf of a Participant under the United States Securities and Exchange Act of 1934 or other federal law or other public disclosure in so far as such losses, damages, expenses or claims arise out of or are based upon any written information provided by DME regarding the Participants or the venture expressly for use in such filing or other public disclosure, to the extent (and only to the extent) that such misstatement or omission of a material fact contained in such filing occurs in reliance upon and in conformity with the written information furnished by DME; (ii) DME’s fraud, gross negligence, willful misconduct or reckless disregard of any of DME’s obligations under this Agreement; (iii) for breaches of the applicable Guidelines by DME in connection with its duties under this Agreement which breaches are not cured within 15 days of the earlier of (x) the date on which DME becomes aware of such breach, and (y) the date on which DME receives a notice of such breach from a Participant; or (iv) for breaches of Section 5.2 hereof; or (v) any Tax Proceeding.

(e) If a Participant shall receive notice of or has actual knowledge of any Tax Proceeding, such Participant shall give DME written notice of such Tax Proceeding; provided , however , that failure to notify DME shall not relieve DME from any liability which it may have on account of the Tax Proceeding except to the extent that DME shall have been materially prejudiced by such failure. DME shall be entitled to assume control of the defense or settlement of such matter. If DME elects to assume such control, the Participant being indemnified and its counsel shall be entitled to consult with DME and its counsel and participate in the defense or settlement of such matter at its own cost; provided , however , that DME shall bear the costs and expenses of such Participant’s counsel (from one law firm) if, in the reasonable opinion of counsel mutually acceptable to the parties hereto, use of such Participant’s counsel is necessary as a result of a conflict of interest between the Participant, on the one hand, and DME, on the other hand. In any event, DME shall indicate in writing to the Participant being indemnified within 10 calendar days after such Participant has given DME written notice whether DME intends to pay the claim or assume control of the defense or settlement of such matter.

In the event DME exercises its right to assume control of the defense, the Participant being indemnified shall reasonably cooperate with DME in such defense and make available to DME witnesses, pertinent records, materials and information in its possession or under its control relating thereto as are reasonably requested by DME. No claim may be settled by DME without the written consent of such Participant, which consent shall not be unreasonably withheld or delayed; provided, however, that DME may settle such claim without the consent of such Participant so long as the settlement (x) includes an unconditional release of such Participant, in form and substance reasonably satisfactory to such Participant, from the claimant, (y) does not impose any liabilities or obligations on such Participant, and (z) with respect to any non-monetary provision of any settlement of a claim, does not impose and conditions upon such Participant.

(f) The amount which any indemnifying party is required to pay to, or for the benefit of, an indemnified person under this Section 4.4 will be reduced (including, without limitation, retroactively) by any insurance proceeds which are actually paid by, or on behalf of, the indemnified party in reduction of the related Losses.

(g) If the indemnity provided for in Section 4.4 and to which an Covered Person is otherwise entitled is unavailable to such Covered Person in respect of any Losses referred to therein, then each Participant, to the extent of its interest in the Assets only, in lieu of indemnifying such Covered Person, shall contribute to the amount paid or payable by such Covered Person as a result of such Losses in the proportion the total capital of the Participants in the venture (exclusive of the balance in the Covered Person’s Capital Account (or the Capital Account of DME if the Covered Person is not DME)) bears to the total capital of the venture (including the balance in Covered Person’s Capital Account (or the Capital Account of DME if the Covered Person is not DME), which contribution shall be treated as an expense of the venture calculated as if the DME’s Capital Account balance was equal to zero.

4.5. Fiduciary Duties; Discretion

(a) To the extent that, at law or in equity, a Covered Person has duties (including fiduciary duties) and liabilities relating thereto to the venture or to any Participant, such Covered Person acting under this Agreement is not liable to the venture or to any Participant for its good faith reliance on the provisions of this Agreement. The provisions of this Agreement, to the extent that they restrict the duties and liabilities of a Covered Person otherwise existing at law or in equity, are agreed by the parties hereto to replace such other duties and liabilities of such Covered Person.

(b) To the fullest extent permitted by law, unless otherwise expressly provided for herein, (i) whenever a conflict of interest exists or arises between a Participant or any of its Affiliates, on the one hand, and the venture or any of the other Participants on the other hand, or (ii) whenever this Agreement or any other agreement contemplated herein or therein provides that a Participant must act in a manner which is, or provide terms which are, fair and reasonable, the Participant must resolve such conflict of interest, take such action or provide such terms, considering in each case the relative interest of each party, including its own interest, to such conflict, agreement, transaction or situation and the benefits and burdens relating to such interests, any customary or accepted industry practices, and any applicable generally accepted accounting practices or principles. In the absence of bad faith by the Participant, the resolution, action or terms so made, taken or provided by the Participant do not constitute a breach of this Agreement or any other agreement contemplated herein or of any duty or obligation of the Participant at law or in equity or otherwise.

(c) To the fullest extent permitted by law, except as provided elsewhere in this Agreement, whenever in this Agreement a Person is permitted or required to make a decision (i) in its “sole discretion” or under a grant of similar authority or latitude, such Person is entitled to consider only such interests and factors as it desires, including its own interests, and has no duty or obligation to give any consideration to any interest of or factors affecting the venture or the Participants, or (ii) in its “good faith” or under another express standard, then such Person acts under such express standard and is not subject to any other or different standards imposed by this Agreement or any other agreement contemplated herein or by relevant provisions of law or in equity or otherwise.

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Article V

Admissions and Withdrawals

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5.1. Admission of Participants

The Participants may by unanimous written consent, on the first day of any calendar month, or at such other times as the Participants may determine, admit any Person who executes this Agreement or any other writing evidencing the intent of such Person to become a Participant, unless the participation by such Participant would have any of the effects described in clauses (i) through (vi) of Section 5.3(c) .

5.2. Withdrawal of Interests of Participants

(a) The Interest of a Participant may not be withdrawn prior to termination of this Agreement except as provided in this Section 5.2 .

(b) Subject, in the case of DME, to its requirement to maintain at least a 1% interest pursuant to Section 3.1 hereof and subject to the obligations of the other Participants set forth in Section 4.1(d) , a Participant may voluntarily withdraw all or part of its Capital Account as of the close of business on any Business Day. If a Participant wishes to withdraw funds, it must give written notice to DME at least 3 Business Days prior to the proposed withdrawal date indicating the amount to be withdrawn from such Participant’s Capital Account in such notice. DME may with respect to such request, in its reasonable discretion, waive the foregoing notice requirement. DME shall not be liable for failure to perform or delay in performing under this Section 5.2 when such failure or delay is due to Force Majeure, so long as DME uses its commercially reasonable efforts to cure such event or occurrence as soon as practicably as possible. Upon receipt by DME of a Participant’s notice of intention to withdraw assets from the venture, DME shall have the discretion to manage the Assets in a manner that would provide for cash being available to satisfy such Participant’s request for withdrawal. DME may effect withdrawal payments (i) in cash, (ii) in kind, or (iii) in any combination of the foregoing; provided that the DME will use its commercially reasonable efforts to make any such settlement in cash unless otherwise requested by the Participant. Notwithstanding the foregoing, each of the Participants acknowledges that a substantial amount of withdrawals by one or more Participants could require DME to liquidate positions in order to raise cash necessary to fund the withdrawals at a time when market conditions are adverse or when such liquidations are otherwise not in the best interests of non-withdrawing Participants.

(c) The right of any Participant to withdraw or of any Participant to have distributed an amount from his Capital Account pursuant to the provisions of this Section 5.2 is subject to the provision by DME, on behalf of the Participants, for all of the venture’s liabilities and for reserves for contingencies provided for in Section 3.7 and Section 4.4 herein.

(d) With respect to any amounts withdrawn, a withdrawing Participant does not share in the income, gains and losses resulting from the venture or have any other rights or obligations as a Participant after the effective date of its withdrawal except as provided in Section 3.7 and Section 4.4 .

(e) Notwithstanding any provision of this Agreement to the contrary (i) Greenlight Re may withdraw as a Participant and fully withdraw all of its Capital Account from the venture (x) on 3 Business Days notice if Greenlight Re Cause exists or (y) at the end of the then current term of the Agreement if Greenlight Re elects not to renew the term of the Agreement pursuant to Section 2.3, and (ii) GRIL may withdraw as a Participant and fully withdraw all of the GRIL Assets from the venture (x) on 3 Business Days notice if GRIL Cause exists or (y) at the end of the then current term of the Agreement if GRIL elects not to renew the term of the Agreement pursuant to Section 2.3.

(f) In the event that a Participant shall have withdrawn from the venture pursuant to Section 5.2(e) , (i) such Participant shall no longer be considered a Participant from and after the date of such complete withdrawal, and (ii) the provisions of this Agreement shall no longer apply to such Participant (except those provisions which by their terms apply to Participants following their withdrawal).

5.3. Transfer of Interests in Participants

(a) Each Participant agrees that it will not make or attempt to make any Transfer of its Interest that would violate this Section 5.3 . In the event of any attempted Transfer of any Participant’s Interest in violation of the provisions of this Section 5.3 , without limiting any other rights of DME under this Agreement or otherwise, such attempted transfer shall be void ab initio and DME (or, in the case of a transfer by DME, the other Participants) shall have the right to require the withdrawal of such Participant’s Interest.

(b) No Transfer of any Participant’s Interest, whether voluntary or involuntary, is valid or effective, and no transferee becomes a substituted Participant, unless the prior written consent of DME (or, in the case of a transfer by DME, a majority in interest) of the other Participants has been obtained, which consent may be withheld for any reason or for no reason in the sole discretion of DME or such Participants; provided , however , that in the case of DME, DME may make an assignment in a transaction that does not result in a change of its actual control or management. In the event of any Transfer, all of the conditions of the remainder of this Section 5.3 must also be satisfied.

(c) No Transfer of any Participant’s Interest, whether voluntary or involuntary, is valid or effective unless DME (or, in the case of a transfer by DME, a majority in interest of the other Participants) in its or their sole discretion determines, after consultation with legal counsel, that such Transfer will not:

(i)	require registration of any Interest under any securities laws of the United States of America, any state thereof or any other jurisdiction;

(ii)	subject the venture or the Participants to a requirement to register under any securities or commodities laws of the United States of America, any state thereof or any other jurisdiction;

(iii)

cause the venture to be treated as a “publicly traded partnership” for U.S. federal income tax purposes under Section 7704(b) of the Code;

(iv)	result in the venture being considered an investment company under the Company Act;

(v)	violate or be inconsistent with any representation or warranty made by the transferring Participant at the time the Participant purchased an Interest; or

(vi)	result in Assets being considered “plan assets” for purposes of ERISA.

(d) The transferring Participant must give the other Participants written notice before making any voluntary Transfer and after any involuntary Transfer and must provide sufficient information to allow DME to make the determination that the proposed Transfer will not result in any of the consequences referred to in clauses (i) through (vi) above.

(e) Any other provision of this Agreement to the contrary notwithstanding, any successor to any Participant’s Interest is bound by the provisions hereof. Prior to recognizing any Transfer in accordance with this Section 5.3 , the other Participants in their sole discretion may require the transferring Participant to execute and acknowledge an instrument of transfer in form and substance satisfactory to the Participants, and may require the transferee to make certain representations and warranties to the Participants and to accept, adopt and approve in writing all of the terms and provisions of this Agreement. A transferee becomes a substituted Participant and succeeds to the portion of the transferor’s Capital Account relating to the Interest transferred effective upon the satisfaction of all of the conditions for such Transfer contained in this Section 5.3 .

(f) Notwithstanding the foregoing, the Participants acknowledge that Greenlight Re or GRIL has or may in the future enter into financing arrangements pursuant to which it may grant to lenders a security interest in its rights to its portion of the Assets. DME agrees to reasonably cooperate with Greenlight Re or GRIL to effect the granting of such security interests, including without limitation, executing a pledge agreement or similar agreement on reasonably acceptable terms including if possible the right to foreclose on a portion of those Assets equal to the Participant’s percentage interest in the Assets (taking into account that a Participant may not participate fully in certain Designated Securities or New Issues), after accounting for liabilities and reserves. Each of Greenlight Re and GRIL agrees not to pledge more than its percentage interest in any Assets.

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Article VI

Termination and Liquidation

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6.1. Termination of this Agreement

(a) Subject to applicable law, this Agreement will terminate and its affairs must be wound up upon the earliest of:

(i)	the end of the term of this Agreement, as determined pursuant to Section 2.3(a) hereof; and

(ii)	the date on which only one Participant remains.

(b) Except as provided in Section 6.1(a) or applicable law, the death, mental illness, dissolution, termination, liquidation, bankruptcy, reorganization, merger, sale of substantially all of the stock or assets of or other change in the ownership or nature of a Participant, the execution of a joinder agreement to this Agreement by a new Participant, the withdrawal of a Participant, or the transfer by a Participant of its Interests to a third party does not cause this Agreement to terminate.

6.2. Liquidation of the Venture

(a) Upon termination of this Agreement pursuant to Section 6.1(a) , DME shall promptly liquidate the Assets, except that if DME is unable to perform this function, a liquidator elected by Participants whose Percentages represent more than fifty percent (50%) of the aggregate Percentages of all Participants shall liquidate the Assets.

(b) Net profit and net loss attributable to a Capital Account during the Fiscal Periods that include the period of liquidation shall be allocated pursuant to Article III. The proceeds from liquidation shall be divided in the following manner, subject to applicable law:

(i)

the debts, liabilities and obligations of the venture, other than debts to the Participants as Participants, and the expenses of liquidation (including legal and accounting expenses incurred in connection therewith), up to and including the date that distribution of the Assets to the Participants has been completed, shall be first satisfied (whether by payment or the making of reasonable provision for payment thereof);

(ii)	such debts as are owing to the Participants as Participants shall be next paid; and

(iii)

the Participants shall be next paid liquidating distributions (in cash, securities, or other assets, whether or not readily marketable) pro rata in accordance with, and up to the positive balances of their respective Capital Accounts, as adjusted pursuant to Article III to reflect allocations for the Fiscal Period ending on the date of the distributions under this Section 6.2(b)(iii) .

(c) Notwithstanding anything in this Section 6.2 to the contrary and subject to the priorities set forth in applicable law, DME, the liquidator or the trustee, as the case may be, may distribute ratably in-kind rather than in cash, upon termination, any Assets, provided , however , that if any in-kind distribution is to be made, (i) the assets distributed in kind must be valued pursuant to Section 7.2 as of the actual date of their distribution, and charged as so valued and distributed against amounts to be paid under Section 6.2(b) above and (ii) any gain or loss (as computed for book purposes) attributable to property distributed in-kind must be included in the net profit or net loss attributable to the Capital Account for the Fiscal Period ending on the date of such distribution.

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Article VII

Accounting and Valuations;

Books and Records;

Board Meetings

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7.1. Accounting and Reports

(a) DME may adopt, on behalf of the venture, for tax accounting purposes any accounting method that DME decides in its reasonable discretion is in the best interests of the venture and that is permissible for U.S. federal income tax purposes and that does not prejudice any other Participant. DME will promptly notify each Participant in writing of any change.

(b) At the request of a Participant received at least 30 days prior to the end of the Fiscal Year, as soon as practicable after the end of such Fiscal Year, DME shall cause an audit of the financial statements of the venture in accordance with U.S. generally accepted accounting principles as of the end of each such Fiscal Year to be made by a firm of certified public accountants selected by DME, which is reasonably acceptable to Greenlight Re and GRIL; and as soon as is practicable thereafter but subject to Section 7.5 , a copy of a set of financial statements prepared on a basis that uses United States generally accepted accounting principles as a guideline (with such adjustments thereto as the Participants determine appropriate), including the report of such certified public accountants, is furnished to each Participant. For purposes of this Section 7.1(b) the accounting firm of BDO Seidman, LLP shall be deemed acceptable to Greenlight Re and GRIL.

(c) Promptly after each calendar month end, DME shall arrange for the preparation and delivery to each Participant of an interim statement of its respective Capital Account valued as set forth in Section 7.2 , including, but not limited to, balance sheet, income statement, trial balance and detailed holdings report of a Participant’s Capital Account, and other information that the Participant may reasonably request.

(d) As soon as practicable after the end of each taxable year, DME shall furnish each Participant such information as may be required to enable each Participant properly to report for United States federal, state and local income tax purposes, as applicable, its distributive share of each Participant’s item of income, gain, loss, deduction or credit for such year.

(e) DME shall arrange for the preparation and delivery to each Participant a statement setting forth the computation of (i) the DME Share Payment within 10 Business Days following the beginning of each month and (ii) Performance Allocation within 30 days after the close of each Performance Period.

(f) DME shall provide a draft of any tax return required to be filed by the venture (together with schedules, statement or attachments thereto) to Greenlight Re and GRIL no later than ten (10) Business Days prior to the due date (including extensions) of such tax return for their review and comment. DME shall consult with Greenlight Re and GRIL and in good faith consider any comments provided by Greenlight Re and GRIL within five (5) Business Days of their receipt of such tax returns.

(g) DME shall timely prepare and file on behalf of Greenlight Re, GRIL or the venture any filings under Section 13 or 16 of the Exchange Act with the U.S. Securities and Exchange Commission resulting from any investment made by the venture.

(h) DME will use commercially reasonable efforts to assist Greenlight Re and GRIL in any required internal control or compliance matters applicable to Greenlight Re and GRIL and related to this Agreement, including preparing any internal control reviews that are reasonably deemed necessary by Greenlight Re and GRIL. DME acknowledges that (i) Greenlight Re is subject to the reporting requirements of, among others, the Securities Exchange Act of 1934, as amended, the listing requirements of the Nasdaq Stock Market and the regulatory and information requirements of the Cayman Islands Monetary Authority and A.M Best & Co., and (ii) GRIL is subject to the regulatory and information requirements of the Insurance Supervision Department of the Irish Financial Regulator and A.M. Best & Co. Furthermore, DME will use commercially reasonable efforts to give access to the venture’s books and records related to GRIL in case requested by the Insurance Supervision Department of the Irish Financial Regulator.

(i) Notwithstanding anything herein to the contrary, all expenses incurred directly in connection with the creation and maintenance of the accounting records for the venture shall be paid for or reimbursed by DME.

7.2. Valuation of Assets and Interests

(a) DME shall value or have valued the Securities and other Assets as of the close of business on the last day of each month, at the end of each Performance Period and on any other date selected by DME or reasonably selected by Greenlight Re or GRIL, as the case may be. In addition, in good faith, DME shall value Securities that are being distributed in kind as of their date of distribution in accordance with Section 6.2(c). In determining the value of the Assets, no value is placed on the goodwill, if any, created by this Agreement, or the office records, files, statistical data or any similar intangible assets relating to the Assets not normally reflected in the venture’s accounting records, but there must be taken into consideration any related items of income earned but not received, expenses incurred but not yet paid, liabilities fixed or contingent, prepaid expenses to the extent not otherwise reflected in the books of account, and the value of options or commitments to purchase or sell Securities pursuant to agreements entered into on or prior to such valuation date. Valuation of Securities made pursuant to this Section 7.2 must be based on all relevant factors and is expected to comply generally with the following guidelines:

(i)

The market value of each Security listed or traded on any recognized national securities exchange shall be the last reported sale price at the relevant valuation date on the composite tape or on the principal exchange on which such Security is traded. If no such sale of such Security was reported on that date, the market value is the last reported bid price (in the case of Securities held long), or last reported ask price (in the case of Securities sold short).

(ii)

Dividends declared but not yet received, and rights in respect of Securities that are quoted ex-dividend or ex-rights, shall be recorded at the fair value thereof, as determined by DME, which may (but need not) be the value so determined on the day such Securities are first quoted ex-dividend or ex-rights.

(iii)

Listed options, or over-the-counter options for which representative brokers’ quotations shall be available, are valued in the same manner as listed or over-the-counter Securities as hereinabove provided.

(b) The fair value of any assets not referred to in paragraph (a) (or the valuation of any assets referred to therein in the event that DME determines in its reasonable discretion that market prices or quotations do not fairly represent the value of particular assets) shall be determined by or at the direction of DME; but may be audited by Greenlight Re, GRIL or any of their representatives or agents, at Greenlight Re’s or GRIL’s cost and expense, as applicable, at any time upon reasonable notice. In these circumstances, DME will attempt to use consistent and fair valuation criteria and may (but is not required to) obtain independent appraisals, which shall be considered an expense under Section 4.3 .

(c) Except as otherwise reasonably determined by DME, investment and trading transactions shall be accounted for on the trade date. Accounts shall be maintained in U.S. dollars and except as otherwise determined by or at the direction DME: (i) assets and liabilities denominated in currencies other than U.S. dollars shall be translated at the rates of exchange in effect at the close of the relevant valuation period (and exchange adjustments shall be recorded in the results of operations); and (ii) investment and trading transactions and income and expenses shall be translated at the rates of exchange in effect at the time of each transaction.

(d) The value of each Security and other Asset and the net worth of the Capital Accounts as a whole determined pursuant to this Section 7.2 shall be, in the absence of bad faith or manifest error and/or subject to any audit verification, conclusive and binding on all of the Participants and all parties claiming through or under them.

7.3. Determinations by DME

(a) All matters concerning the determination and allocation among the Participants of the amounts to be determined and allocated pursuant to Sections 3.4 through 3.9 hereof, including any taxes thereon and accounting procedures applicable thereto, are and will be determined by DME in good faith unless specifically and expressly otherwise provided for by the provisions of this Agreement, and such determinations and allocations are final and binding on all the Participants.

(b) DME may make such adjustments to the computation of any of the memorandum accounts maintained pursuant to this Agreement or any component items comprising any of the foregoing as it considers reasonably appropriate to reflect the financial results of the Assets and the intended allocation thereof among the Participants in a reasonably accurate, fair and efficient manner.

7.4. Books and Records

(a) DME shall maintain (or arrange for the maintenance) and keep (or cause to be kept) books and records of the venture showing all assets and liabilities, receipts and disbursements, gains and losses, Participants’ Capital Accounts and all transactions entered into in connection with the Assets and this Agreement. Such books and records shall be kept at DME’s office.

(b) DME shall retain, or arrange for the retention, for a period of at least five (5) years, copies of any documents it deems pertinent generated or received by DME in the ordinary course of business pertaining to the Assets or to the compensation payable to DME. DME shall afford to Greenlight Re’s or GRIL’s independent auditors reasonable access to such documents during customary business hours and shall permit Greenlight Re’s and/or GRIL’s auditors to make copies thereof or extracts therefrom at the expense of Greenlight Re or GRIL, as the case may be.

7.5. Greenlight Re or GRIL Board Meeting

At the request of Greenlight Re or GRIL, as applicable, and subject to reasonable prior notice, DME shall endeavor to make one of DME’s representatives available to attend the meetings of such party’s Board, or meetings with such party’s management (in either case in person or telephonically) to report on the ventures’ activities and on other matters pertaining to this Agreement.

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Article VIII

General Provisions

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8.1. Amendment of Agreement

This Agreement may be amended, in whole or in part, with the written consent of all of the Participants.

8.2. Notices

Unless otherwise provided, all notices and other communications required or permitted under this Agreement shall be in writing and shall be sent by facsimile, sent by electronic mail, or delivered personally by hand or by an internationally recognized overnight courier addressed to the party to be notified at the address, facsimile number or e-mail address indicated for such party set forth below, or at such other address, facsimile number or e-mail address as such party may designate by ten days advance written notice to the other parties hereto. All such notices shall be effective upon receipt. Unless otherwise provided in writing to the other parties, all notices shall be sent to the following addresses, facsimile numbers or e-mail addresses:

If to DME:

DME Advisors, LP

140 East 45th Street, 24th Floor

New York, NY 10017

Attention: Daniel Roitman

Facsimile No.: 212-973-9219

E-Mail: droitman@greenlightcapital.com

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

DME Advisors, LP

140 East 45th Street, 24th Floor

New York, NY 10017

Attention: Harry Brandler

Facsimile No.: 212-973-9219

E-Mail: HBrandler@greenlightcapital.com

If to Greenlight Re or to Greenlight Capital Re:

Greenlight Reinsurance, Ltd.

65 Market Street, Suite 1207

Camana Bay

P.O. Box 31110

Grand Cayman, KY 1-1205

Cayman Islands

Attention: Len Goldberg

Facsimile No.: 345-745-4576

E-Mail: len@greenlightre.ky

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

Akin Gump Strauss Hauer & Feld LLP

One Bryant Park

New York, New York 10036

Attention: Kerry E. Berchem, Esq.

Facsimile No.: 212-872-1002

E-Mail: kberchem@akingump.com

If to GRIL:

Greenlight Reinsurance Ireland, Ltd.

c/o 65 Market Street, Suite 1207

Camana Bay

P.O. Box 31110

Grand Cayman, KY 1-1205

Cayman Islands

Attention: Len Goldberg

Facsimile: 345-745-4576

Email: len@greenlightre.ky

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

A&L Goodbody

International Financial Services Centre

North Wall Quay

Dublin 1, Ireland

Attention: Margaret Stack, Esq.

Facsimile: +353 1 649 2649

E-mail: mstack@algoodbody.ie

8.3. Agreement Binding Upon Successors and Assigns

This Agreement shall be binding upon and inures to the benefit of the parties hereto and their respective successors and permitted assigns as set forth in Section 5.3 hereof.

8.4. Governing Law

(a) This Agreement and the rights of the Participants hereunder shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflict of laws rules thereof. The parties acknowledge that the venture is formed under the laws of the State of New York.

(b) Each party hereto submits to the jurisdiction of any state or federal court sitting in New York, New York in any action arising out of or relating to this Agreement and agrees that all claims in respect of any such action may be heard and determined in any such court. Each party hereto agrees that a final judgment in any action so brought will be conclusive and may be enforced by action on the judgment or in any other manner provided at law or in equity. Each party hereto waives any defense of inconvenient forum to the maintenance of any action so brought and waives any bond, surety, or other security that might be required of any other party with respect thereto.

8.5. Not for Benefit of Third Parties

The provisions of this Agreement are intended only for the regulation of relations among Participants and between Participants and former or prospective Participants. This Agreement is not intended for the benefit of non-Participants and no rights are granted to non-Participants under this Agreement.

8.6. Consents

Any and all consents, agreements or approvals provided for or permitted by this Agreement must be in writing and a signed copy thereof must be filed and kept with the books of each Participant.

8.7. Miscellaneous

(a) The captions and titles preceding the text of each section hereof shall be disregarded in the construction of this Agreement.

(b) This Agreement may be executed in counterparts, each of which is deemed to be an original hereof.

(c) The Participants have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, the Participants intend that this Agreement be construed as if drafted jointly by the Participants and that no presumption or burden of proof arise favoring or disfavoring any Participant by virtue of the authorship of any of the provisions of this Agreement. Any reference to any federal, state, local, or foreign statute or law is deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. The word “including” means including without limitation. The word “or” is not exclusive. All words used in this Agreement shall be construed to be of such gender or number as the circumstances require.

(d) The Participants intend that each representation, warranty, and covenant contained herein has independent significance. If any Participant has breached any representation, warranty, or covenant contained herein in any respect, the fact that there exists another representation, warranty, or covenant relating to the same subject matter (regardless of the relative levels of specificity) that such Participant has not breached does not detract from or mitigate the fact that such Participant is in breach of the first representation, warranty, or covenant.

(e) If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement shall remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree shall remain in full force and effect to the extent not held invalid or unenforceable.

(f) Each party hereto hereby agrees that the other would be damaged irreparably if any provision of this Agreement were not performed in accordance with the specific terms or were otherwise breached and each party hereto agrees that any party shall be entitled to seek equitable relief, including, without limitation, any injunction or injunctions, to prevent breaches or threatened breaches of this Agreement by the other parties or any of their representatives and to specifically enforce the terms and provisions of this Agreement.

8.8. Entire Agreement

This Agreement contains the entire understanding of the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings between the parties hereto relating to the subject matter hereof, and each of the parties hereto agrees that each and every such prior agreement is terminated and replaced in its entirety by the rights created by this Agreement.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first-above written.

GREENLIGHT REINSURANCE, LTD.

By:	/s/ Bart Hedges	By:	/s/ Leonard Goldberg
Name:	Bart Hedges	Name:	Leonard Goldberg
T itle:	President & CUO	Title:	CEO

GREENLIGHT REINSURANCE IRELAND, LTD.

By:	/s/ Bart Hedges	By:	/s/ Leonard Goldberg
Name:	Bart Hedges	Name:	Leonard Goldberg
T itle:	CUO	Title:	Director

DME ADVISORS, LP

By: DME ADVISORS GP, LLC, its General Partner

By:	/s/ Vinit Sethi	By:	/s/ Harry Brandler
Name:	Vinit Sethi	Name:	Harry Brandler
T itle:	Vice President	Title:	CFO

GREENLIGHT CAPITAL RE, LTD.

solely for the purpose of Section 4.1 (d) and (e)

By:	/s/ Sherry Diaz	By:	/s/ Leonard Goldberg
Name:	Sherry Diaz	Name:	Leonard Goldberg
T itle:	Controller	Title:	CEO

[Signature Page – JV Agreement]

Exhibit A-1

GREENLIGHT RE GUIDELINES

Composition of Investments : At least 80% of the assets in the investment portfolio will be held in debt or equity securities (including swaps) of publicly traded companies (or their subsidiaries) and governments of OECD (the Organization of Economic Co-operation and Development) high income countries, cash, cash equivalents and gold. No more than 10% of the assets in the investment portfolio will be held in private equity securities.

·	Concentration of Investments : Other than cash, cash equivalents and United States government obligations, no single investment in the investment portfolio will constitute more than 20% of the portfolio.

·	Liquidity : Assets will be invested in such fashion that Greenlight Re has a reasonable expectation that it can meet any of its liabilities as they become due. Greenlight Re will review with DME the liquidity of the portfolio on a periodic basis.

·	Monitoring : Greenlight Re will require DME to re-evaluate each position in the investment portfolio and to monitor changes in intrinsic value and trading value and provide monthly reports on the investment portfolio to Greenlight Re as Greenlight Re may reasonably determine.

·	Leverage : The investment portfolio may not employ greater than 5% indebtedness for borrowed money, including net margin balances, for extended time periods. DME may use, in the normal course of business, an aggregate of up to 20% net margin leverage for periods of less than 30 days.

A-

Exhibit A-2

GRIL GUIDELINES

Concentration of Investments : Other than cash or cash equivalents and United States government obligations, (1) no single investment in the investment portfolio will constitute more than 10% of the portfolio, (2) the 10 largest investments shall not constitute greater than 50% of the total investment portfolio, and (3) the investment portfolio shall at all times be comprised of a minimum of 50 debt or equity securities of publicly traded companies (or their subsidiaries).

·	Liquidity : Assets will be invested in such fashion that GRIL has a reasonable expectation that it can meet any of its liabilities as they become due. GRIL will review with DME the liquidity of the portfolio on a periodic basis.

·	Monitoring : GRIL will require DME to re-evaluate each position in the investment portfolio and to monitor changes in intrinsic value and trading value and provide monthly reports on the investment portfolio to GRIL as GRIL may reasonably determine.

·	Leverage : The investment portfolio may not employ greater than 5% indebtedness for borrowed money, including net margin balances, for extended time periods. DME may use, in the normal course of business, an aggregate of up to 20% net margin leverage for periods of less than 30 days.

A-

Exhibit B

INITIAL CAPITAL CONTRIBUTIONS

As of August 31, 2010

Initial Capital Contributions

DME $ 30,017,120.00

Greenlight Re $ 874,454,592.00

GRIL $ 39,000,000.00

B-

Exhibit C

POWER OF ATTORNEY

The undersigned, in connection with and subject to the terms and conditions of that certain Amended and Restated Agreement (the “Agreement” ) by and among Greenlight Reinsurance, Ltd., Greenlight Reinsurance Ireland, Ltd., DME Advisors, LP (collectively, the “Participants” ) and Greenlight Capital Re, Ltd. (for limited purposes), dated as of August [ ], 2010, hereby designates and appoints DME Advisors, LP, a Delaware limited partnership (“DME” ), as agent and attorney-in-fact, with full power and authority and without the need for further approval of the undersigned (except as may be required by applicable law) to have the exclusive power on behalf of the undersigned to:

(i) effect any and all transactions, including short sales, in equity and debt securities (including derivatives thereon), currencies and commodities (and options, futures, derivatives, swaps, and forward contracts thereon), trade and other claims, arbitrages, loans, break-ups, consolidations, reorganizations and everything connected therewith in the broadest sense (collectively, “ Securities ”);

(ii) select brokers (including prime brokers), dealers, banks and other intermediaries by or through whom such investment transactions will be executed or carried out;

(iii) purchase or write options (including uncovered options);

(iv) trade on margin;

(v) draw funds and direct banks, brokers or other custodians to effect deliveries of funds or assets, but only in the course of effecting investment transactions for the account of the undersigned;

(vi) exercise all voting and other powers and privileges attributable to any Securities or other property held for the account of the venture and its Participant, including the undersigned; and

(vii) make and execute all such documents and take all such other actions as DME considers necessary or appropriate to carry out its investment advisory duties under the Agreement, including opening brokerage (including prime brokerage) accounts and any other required documentation including, without limitation, swaps, Securities and similar agreements on behalf of the undersigned.

The power of attorney granted hereby is a special power of attorney coupled with an interest and shall be irrevocable during the term of the Agreement to the fullest extent permitted by law.

Dated: August [ ], 2010

[Participant]

By:

Name:

Title:

C-

CAYMAN ISLANDS	N/A
(State or other jurisdiction of incorporation or organization)	(I.R.S. employer identification no.)
65 MARKET STREET SUITE 1207, CAMANA BAY P.O. BOX 31110 GRAND CAYMAN CAYMAN ISLANDS	KY1-1205
(Address of principal executive offices)	(Zip code)

Class A Ordinary Shares, $0.10 par value	30,200,835
Class B Ordinary Shares, $0.10 par value	6,254,949
(Class)	(Outstanding as of October 29, 2010)

		Page
PART I — FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets as of September 30, 2010 (unaudited) and December 31, 2009		3
	Condensed Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2010 and 2009 (unaudited)		4
	Condensed Consolidated Statements of Shareholders' Equity for the Nine Months Ended September 30, 2010 and 2009 (unaudited)		5
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2010 and 2009 (unaudited)		6
	Notes to the Condensed Consolidated Financial Statements (unaudited)		7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		19
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		29
Item 4.	Controls and Procedures		30
PART II — OTHER INFORMATION
Item 1.	Legal Proceedings		31
Item 1A.	Risk Factors		31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		32
Item 3.	Defaults Upon Senior Securities		32
Item 4.	Removed and Reserved		32
Item 5.	Other Information		32
Item 6.	Exhibits		32
SIGNATURES

		September 30, 2010 (unaudited)	December 31, 2009
Assets
Investments
Debt instruments, trading, at fair value	$	20,060	$	95,838
Equity securities, trading, at fair value		744,292		593,201
Other investments, at fair value		172,936		141,561
Total investments		937,288		830,600
Cash and cash equivalents		9,726		31,717
Restricted cash and cash equivalents		631,758		590,871
Financial contracts receivable, at fair value		16,491		30,117
Reinsurance balances receivable		147,745		82,748
Loss and loss adjustment expense recoverable		9,518		7,270
Deferred acquisition costs, net		85,172		34,401
Unearned premiums ceded		6,325		6,478
Notes receivable		14,491		15,424
Other assets		2,947		4,754
Total assets	$	1,861,461	$	1,634,380
Liabilities and shareholders’ equity
Liabilities
Securities sold, not yet purchased, at fair value	$	578,790	$	570,875
Financial contracts payable, at fair value		25,653		16,200
Due to prime brokers		22,822		—
Loss and loss adjustment expense reserves		161,180		137,360
Unearned premium reserves		233,491		118,899
Reinsurance balances payable		35,239		34,301
Funds withheld		22,482		14,711
Other liabilities		10,859		12,796
Performance compensation payable to related party		4,145		—
Total liabilities		1,094,661		905,142
Shareholders’ equity
Preferred share capital (par value $0.10; authorized, 50,000,000; none issued)		—		—
Ordinary share capital (Class A: par value $0.10; authorized, 100,000,000; issued and outstanding, 30,200,835 (2009: 30,063,893); Class B: par value $0.10; authorized, 25,000,000; issued and outstanding, 6,254,949 (2009: 6,254,949))		3,646		3,632
Additional paid-in capital		484,535		481,449
Non-controlling interest in joint venture		30,784		30,597
Retained earnings		247,835		213,560
Total shareholders’ equity		766,800		729,238
Total liabilities and shareholders’ equity	$	1,861,461	$	1,634,380

		Three months ended September 30,				Nine months ended September 30,
		2010		2009		2010			2009
Revenues
Gross premiums written	$	151,247	$	65,983	$	307,091		$	207,901
Gross premium ceded		(3,639	)	(2,894	)	(8,228	)		(10,725	)
Net premium written		147,608		63,089		298,863			197,176
Change in net unearned premium reserves		(68,207	)	(6,432	)	(114,745	)		(44,979	)
Net premiums earned		79,401		56,657		184,118			152,197
Net investment income		33,881		32,628		39,682			148,667
Other income (expense), net		(474	)	(145	)	(1,002	)		1,909
Total revenues		112,808		89,140		222,798			302,773
Expenses
Loss and loss adjustment expenses incurred, net		50,257		34,643		114,936			88,386
Acquisition costs, net		28,807		17,767		60,183			46,591
General and administrative expenses		3,392		4,081		11,633			13,788
Total expenses		82,456		56,491		186,752			148,765
Net income before non-controlling interest and income tax expense		30,352		32,649		36,046			154,008
Non-controlling interest in income of joint venture		(1,313	)	(380	)	(1,687	)		(1,716	)
Net income before income tax expense		29,039		32,269		34,359			152,292
Income tax expense		(25	)	(11	)	(84	)		(28	)
Net income	$	29,014	$	32,258	$	34,275		$	152,264
Earnings per share
Basic	$	0.80	$	0.89	$	0.94		$	4.21
Diluted	$	0.78	$	0.88	$	0.92		$	4.16
Weighted average number of ordinary shares used in the determination of:
Basic		36,452,224		36,286,514		36,408,859			36,202,860
Diluted		37,218,906		36,828,726		37,174,558			36,627,849

	Nine months ended September 30, 2010			Nine months ended September 30, 2009
Ordinary share capital
Balance – beginning of period	$	3,632		$	3,604
Issue of Class A ordinary share capital, net of forfeitures		14			27
Balance – end of period	$	3,646		$	3,631
Additional paid-in capital
Balance – beginning of period	$	481,449		$	477,571
Issue of Class A ordinary share capital		32			578
Share-based compensation expense, net of forfeitures		3,054			2,528
Options repurchased		—			(124	)
Balance – end of period	$	484,535		$	480,553
Non-controlling interest
Balance – beginning of period	$	30,597		$	6,058
Non-controlling interest (withdrawal) contribution from/to joint venture		(1,500	)		337
Non-controlling interest in income of joint venture		1,687			1,716
Balance – end of period	$	30,784		$	8,111
Retained earnings
Balance – beginning of period	$	213,560		$	4,207
Net income		34,275			152,264
Options repurchased		—			(89	)
Balance – end of period	$	247,835		$	156,382
Total shareholders’ equity	$	766,800		$	648,677

	Nine months ended September 30,
	2010			2009
Cash provided by (used in) Operating activities
Net income	$	34,275		$	152,264
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Net change in unrealized gains and losses on investments and financial contracts		1,258			(164,936	)
Net realized gains on investments and financial contracts		(52,153	)		(8,073	)
Foreign exchange (gain) loss on restricted cash and cash equivalents		(3,810	)		2,164
Non-controlling interest in income of joint venture		1,687			1,716
Share-based compensation expense		3,068			2,549
Depreciation expense		168			60
Net change in
Reinsurance balances receivable		(64,997	)		(27,519	)
Loss and loss adjustment expense recoverable		(2,248	)		5,011
Deferred acquisition costs, net		(50,771	)		(19,551	)
Unearned premiums ceded		153			(452	)
Other assets		1,639			(1,763	)
Loss and loss adjustment expense reserves		23,820			50,186
Unearned premium reserves		114,592			45,432
Reinsurance balances payable		938			1,251
Funds withheld		7,771			(369	)
Other liabilities		(1,937	)		3,819
Performance compensation payable to related party		4,145			16,255
Net cash provided by operating activities	$	17,598		$	58,044
Investing activities
Purchase of investments and financial contracts		(885,146	)		(890,780	)
Sales of investments and financial contracts		860,347			1,024,623
Change in due to prime brokers		22,822			—
Change in restricted cash and cash equivalents, net		(37,077	)		(247,589	)
Change in notes receivable, net		933			(14,383	)
Non-controlling interest (withdrawal) contribution from/to joint venture		(1,500	)		337
Fixed assets additions		—			(1,453	)
Net cash used in investing activities	$	(39,621	)	$	(129,245	)
Financing activities
Net proceeds from exercising of stock options		32			584
Options repurchased		—			(213	)
Net cash provided by financing activities	$	32		$	371
Net decrease in cash and cash equivalents		(21,991	)		(70,830	)
Cash and cash equivalents at beginning of period		31,717			94,144
Cash and cash equivalents at end of period	$	9,726		$	23,314
Supplementary information
Interest paid in cash	$	7,840		$	3,430
Interest received in cash		3,880			3,500
Income tax paid in cash		17			—

	Fair value measurements as of September 30, 2010
Description	Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)		Total
	($ in thousands)
Assets:
Debt instruments	$	—		$	16,813		$	3,247	$	20,060
Listed equity securities		744,292			—			—		744,292
Commodities		122,195			—			—		122,195
Private and unlisted equity securities		—			1,892			39,630		41,522
Put options		—			5,533			—		5,533
Call options		—			3,686			—		3,686
Financial contracts receivable		—			16,064			427		16,491
	$	866,487		$	43,988		$	43,304	$	953,779
Liabilities:
Debt instruments, sold not yet purchased	$	—		$	(1,871	)	$	—	$	(1,871	)
Listed equity securities, sold not yet purchased		(576,394	)		—			—		(576,394	)
Call options		—			(525	)		—		(525	)
Financial contracts payable		—			(25,653	)		—		(25,653	)
	$	(576,394	)	$	(28,049	)	$	—	$	(604,443	)

	Fair value measurements as of December 31, 2009
Description	Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)		Total
	($ in thousands)
Assets:
Debt instruments	$	—		$	94,301		$	1,537	$	95,838
Listed equity securities		593,201			—			—		593,201
Commodities		102,239			—			—		102,239
Private and unlisted equity securities		—			—			25,228		25,228
Put options		—			8,809			—		8,809
Call options		—			5,285			—		5,285
Financial contracts receivable		—			30,117			—		30,117
	$	695,440		$	138,512		$	26,765	$	860,717
Liabilities:
Listed equity securities, sold not yet purchased	$	(570,875	)	$	—		$	—	$	(570,875	)
Financial contracts payable		—			(16,200	)		—		(16,200	)
	$	(570,875	)	$	(16,200	)	$	—	$	(587,075	)

	Fair value measurements using significant unobservable inputs (Level 3) Three months ended September 30, 2010										Fair value measurements using significant unobservable inputs (Level 3) Nine months ended September 30, 2010
	Debt instruments		Private and unlisted equity securities			Financial contracts receivable		Total			Debt instruments		Private and unlisted equity securities		Financial contracts receivable		Total
	($ in thousands)
Beginning balance	$	1,090	$	36,924	$	641		$	38,655	$	1,537	$	25,228	$	—	$	26,765
Purchases, sales, issuances, and settlements, net		1,575		2,452		—			4,027		1,563		12,567		855		14,985
Total realized and unrealized gains (losses) and amortization included in earnings, net		582		254		(214	)		622		147		1,835		(428	)	1,554
Transfers into (out of) Level 3, net		—		—		—			—		—		—		—		—
Ending balance, September 30, 2010	$	3,247	$	39,630	$	427		$	43,304	$	3,247	$	39,630	$	427	$	43,304

2010	Cost/amortized cost		Unrealized gains		Unrealized losses			Fair value
	($ in thousands)
Corporate debt – U.S.	$	18,492	$	5,944	$	(4,379	)	$	20,057
Corporate debt – Non U.S.		16		—		(13	)		3
Total debt instruments	$	18,508	$	5,944	$	(4,392)		$	20,060

2009		Cost / amortized cost		Unrealized gains		Unrealized losses			Fair value
		($ in thousands)
Corporate debt – U.S.	$	60,121	$	36,040	$	(5,555	)	$	90,606
Corporate debt – Non U.S.		2,961		2,274		(3	)		5,232
Total debt instruments	$	63,082	$	38,314	$	(5,558	)	$	95,838

2010	Cost		Unrealized gains		Unrealized losses			Fair value
	($ in thousands)
Equities – listed	$	652,760	$	105,942	$	(34,075	)	$	724,627
Exchange traded funds		7,002		12,663		—			19,665
	$	659,762	$	118,605	$	(34,075	)	$	744,292

2010		Proceeds		Unrealized gains		Unrealized losses				Fair value
		($ in thousands)
Equities – listed	$	(561,218	)	$	78,343	$	(69,945	)	$	(552,820	)
Warrants and rights on listed equities		—			—		(538	)		(538	)
Exchange traded funds		(21,601	)		—		(1,435	)		(23,036	)
Debt instruments		(1,870	)		3		(4	)		(1,871	)
Call options		(827	)		302		—			(525	)
	$	(585,516	)	$	78,648	$	(71,922	)	$	(578,790	)

Financial contracts	Listing currency	Notional amount of underlying instruments	Fair value of net assets (obligations) on financial contracts
		($ in thousands)
Financial contracts receivable
Interest rate options	USD	1,723,954	$	4,976
Credit default swaps, purchased – sovereign debt	USD	117,353		4,870
Credit default swaps, purchased – corporate debt	USD	180,926		239
Total return swaps – equities	USD	45,390		5,979
Weather derivative swap	USD	10,000		427
Total financial contracts receivable, at fair value			$	16,491

Financial contracts payable
Credit default swaps, purchased – sovereign debt	USD	189,898	$	(3,456	)
Credit default swaps, purchased – corporate debt	USD	81,453		(4,801	)
Credit default swaps, issued – corporate debt	USD	35,890		(15,963	)
Total return swaps – equities	USD	13,410		(1,433	)
Total financial contracts payable, at fair value			$	(25,653	)

	2010			2009
Risk free rate		2.94	%		3.55	%
Estimated volatility		35.00	%		30.00	%
Expected term	10.00		years	10.00		years
Dividend yield		0.00	%		0.00	%

	2010		2011		2012		2013			2014	Thereafter		Total
	($ in thousands)
Operating lease obligations	$	69	$	276	$	276	$	276	$	276	$	967	$	2,140
Specialist service agreement		222		694		400		150		—		—		1,466
Private equity and limited partnerships (1)		10,011		—		—		—		—		—		10,011
	$	10,302	$	970	$	676	$	426	$	276	$	967	$	13,617

Derivatives not designated as hedging instruments	Location of gains and losses on derivatives recognized in income	Gain (loss) on derivatives recognized in income for the three months ended September 30,							Gain (loss) on derivatives recognized in income for the nine months ended September 30,
		2010			2009				2010			2009
		($ in thousands)							($ in thousands)
Interest rate options	Net investment income	$	(2,047	)	$	(3,199	)		(15,350	)	$	2,608
Credit default swaps, purchased – corporate debt	Net investment income		(3,205	)		(7,189	)		(677	)		(13,425	)
Credit default swaps, purchased – sovereign debt	Net investment income		(2,127	)		(3,233	)		5,795			(12,829	)
Total return swaps – equities	Net investment income		3,579			2,090			5,194			3,992
Credit default swaps, issued – corporate debt	Net investment income		2,571			802			3,338			(1,008	)
Options, futures, warrants, and rights	Net investment income		(10,585	)		(3,097	)		(19,075	)		(10,010	)
Weather derivative swap	Other income (expense)		(214	)		—			(428	)		—
Total		$	(12,028	)	$	(13,826	)	$	(21,203	)	$	(30,672	)

Derivatives not designated as hedging instruments	Three months ended September 30, 2010					Nine months ended September 30, 2010
	Entered		Exited			Entered		Exited
	($ in thousands)
Credit default swaps	$	21,981	$	—	$	340,106	$	206,145
Total return swaps		4,372		12,905		34,471		17,323
Weather derivative swap		—		—		10,000		—
Options		188,528		57,999		510,929		199,582
Futures		—		—		44,436		41,762
Total	$	214,881	$	70,904	$	939,942	$	464,812

	Three months ended September 30, 2009					Nine months ended September 30, 2009
Derivatives not designated as hedging instruments	Entered		Exited			Entered		Exited
	($ in thousands)
Credit default swaps	$	—	$	151	$	164,421	$	21,000
Total return swaps		—		8,713		—		20,857
Interest rate options		416,693		—		1,319,863		—
Options		86,268		38,458		214,068		60,486
Rights – equity		—		—		7,870		4,212
Total	$	502,961	$	47,322	$	1,706,222	$	106,555

	Number of non-vested restricted shares			Weighted average grant date fair value
Balance at December 31, 2009		474,782		$	16.51
Granted		135,500			24.62
Vested		(140,285	)		16.02
Forfeited		(898	)		16.17
Balance at September 30, 2010		469,099			19.00

	Number of options			Weighted average exercise price		Weighted average grant date fair value
Balance at December 31, 2009		1,281,340		$	14.24	$	6.33
Granted		80,000			32.42		10.39
Exercised		(2,340	)		13.85		7.13
Forfeited		—			—		—
Expired		—			—		—
Balance at September 30, 2010		1,359,000		$	15.31	$	6.57

	Nine months ended September 30, 2010				Nine months ended September 30, 2009
	Class A		Class B		Class A		Class B
Balance – beginning of period		30,063,893		6,254,949		29,781,736		6,254,949
Issue of ordinary shares, net of forfeitures		136,942		—		272,157		—
Balance – end of period		30,200,835		6,254,949		30,053,893		6,254,949


		Available	Termination Date	Notice period required for termination
		($ in thousands)
Citibank Europe plc	$	400,000	October 11, 2011	120 days prior to termination date
Butterfield Bank (Cayman) Limited		60,000	June 30, 2011	90 days prior to termination date
Bank of America, N.A		100,000	July 20, 2011	90 days prior to termination date
	$	560,000


		September 30, 2010		June 30, 2010			March 31, 2010			December 31, 2009			September 30, 2009
		($ in thousands, except per share and share amounts)
Basic adjusted and fully diluted adjusted book value per share numerator:
Total shareholders' equity (GAAP)	$	766,800		$	735,264		$	716,694		$	729,238		$	648,677
Less: Non-controlling interest in joint venture		(30,784	)		(29,471	)		(29,517	)		(30,597	)		(8,111	)
Basic adjusted book value per share numerator	$	736,016		$	705,793		$	687,177		$	698,641		$	640,566
Add: Proceeds from in-the-money options issued and outstanding		16,590			16,590			16,590			16,623			16,031
Fully diluted adjusted book value per share numerator	$	752,606		$	722,383		$	703,767		$	715,264		$	656,597
Basic adjusted and fully diluted adjusted book value per share denominator:
Ordinary shares issued and outstanding for basic adjusted book value per share denominator		36,455,784			36,451,784			36,415,902			36,318,842			36,308,842
Add: In-the-money stock options issued and outstanding		1,419,000			1,419,000			1,419,000			1,421,340			1,406,340
Fully diluted adjusted book value per share denominator		37,874,784			37,870,784			37,834,902			37,740,182			37,715,182

Basic adjusted book value per share	$	20.19		$	19.36		$	18.87		$	19.24		$	17.64
Fully diluted adjusted book value per share	$	19.87		$	19.07		$	18.60		$	18.95		$	17.41

		Three months ended September 30,							Nine months ended September 30,
		($ in thousands)							($ in thousands)
		2010			2009				2010				2009
Frequency	$	144,889	95.8	%	$	62,238	94.3	%	$	283,950	92.5	%	$	176,084	84.7	%
Severity		6,358	4.2			3,745	5.7			23,141	7.5			31,817	15.3
Total	$	151,247	100.0	%	$	65,983	100.0	%	$	307,091	100.0	%	$	207,901	100.0	%

	Three months ended September 30, 2010									Three months ended September 30, 2009
	Gross			Ceded			Net			Gross		Ceded			Net
	($ in thousands)
Losses paid (recovered)	$	55,189		$	(770	)	$	54,419		$	18,889	$	(185	)	$	18,704
Change in reserves		(3,595	)		(567	)		(4,162	)		16,081		(142	)		15,939
Total	$	51,594		$	(1,337	)	$	50,257		$	34,970	$	(327	)	$	34,643

	Nine months ended September 30, 2010							Nine months ended September 30, 2009
	Gross		Ceded			Net		Gross		Ceded			Net
	($ in thousands)
Losses paid (recovered)	$	95,069	$	(1,720	)	$	93,349	$	36,079	$	(2,868	)	$	33,211
Change in reserves		23,835		(2,248	)		21,587		50,164		5,011			55,175
Total	$	118,904	$	(3,968	)	$	114,936	$	86,243	$	2,143		$	88,386

	September 30, 2010						December 31, 2009
	Case Reserves		IBNR		Total		Case Reserves		IBNR		Total
	($ in thousands)
Frequency	$	47,609	$	67,240	$	114,849	$	19,704	$	69,166	$	88,870
Severity		19,240		27,091		46,331		20,472		28,018		48,490
Total	$	66,849	$	94,331	$	161,180	$	40,176	$	97,184	$	137,360

Zone	Single Event Loss		Aggregate Loss
	($ in thousands)
United States (1)	$	99,906	$	118,843
Europe		57,113		57,113
Japan		69,613		69,613
Rest of the world		49,613		49,613
Maximum Aggregate		99,906		118,843

	Less than 1 year		1-3 years		3-5 years		More than 5 years		Total
	($ in thousands)
Operating lease obligations (1)	$	276	$	552	$	552	$	760	$	2,140
Specialist service agreement		791		675		—		—		1,466
Private equity investments (2)		10,011								10,011
Loss and loss adjustment expense reserves (3)		73,729		56,472		24,643		6,336		161,180
	$	84,807	$	57,699	$	25,195	$	7,096	$	174,797

		10% increase in U.S. dollar					10% decrease in U.S. dollar
Foreign Currency		Change in fair value		Change in fair value as % of investment portfolio			Change in fair value		Change in fair value as % of investment portfolio
		($ in thousands)
Chinese Yuan	$	9,068		1.0	%	$	(408	)	0.0	%
Euro		(4,779	)	(0.5	)		4,915		0.5
Indian Rupee		1,395		0.2			(1,395	)	(0.2	)
Japanese Yen		9,563		1.0			(5,062	)	(0.5	)
Swiss Franc		(1,262	)	(0.1	)		1,262		0.1
Other		(623	)	(0.1	)		623		0.1
Total	$	13,362		1.5	%	$	(65	)	0.0	%

		100 basis point increase in interest rates				100 basis point decrease in interest rates
		Change in fair value		Change in fair value as % of investment portfolio		Change in fair value			Change in fair value as % of investment portfolio
		($ in thousands)
Debt instruments	$	(66	)	(0.0	)%	$	66		0.0	%
Credit default swaps		45		0.0			(45	)	0.0
Interest rate options		7,057		0.8			(2,683	)	(0.3	)
Net exposure to interest rate risk	$	7,036		0.8	%	$	(2,662	)	(0.3	)%

10.1	Letter of Credit Agreement, dated August 20, 2010, between Greenlight Reinsurance, Ltd. and Citibank Europe plc.
10.2	Master Reimbursement Agreement dated August 20, 2010, between Greenlight Reinsurance, Ltd. and Citibank Europe plc.
10.3	Reinsurance Deposit Agreement, dated August 20, 2010, between Greenlight Reinsurance, Ltd. and Citibank Europe plc.
10.4	Amended and Restated Agreement, effective as of August 31, 2010, between Greenlight Capital Re, Ltd., Greenlight Reinsurance, Ltd., Greenlight Reinsurance Ireland, Ltd., and DME Advisors, LP.
12.1	Ratio of Earnings to Fixed Charges and Preferred Share Dividends
31.1	Certification of the Chief Executive Officer filed hereunder pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of the Chief Financial Officer filed hereunder pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of the Chief Executive Officer filed hereunder pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of the Chief Financial Officer filed hereunder pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

	GREENLIGHT CAPITAL RE, LTD.
	(Registrant)
	/s/ Leonard Goldberg
	Name:	Leonard Goldberg
	Title:	Chief Executive Officer
	Date:	November 2, 2010
	/s/ Tim Courtis
	Name:	Tim Courtis
	Title:	Chief Financial Officer
	Date:	November 2, 2010

	Peadar Mac Canna	Citibank Europe plc
	Director	1 North Wall Quay
	Trade Business Management	Dublin 1, Ireland

		Tel +353 (1) 622 4567
		Fax +353 (1) 622 2741
		peadar.maccanna@citigroup.com

Signed:	/s/ Tim Courtis	Signed:	/s/ Faramarz Romer
Name:	Tim Courtis	Name:	Faramarz Romer
T itle:	Chief Financial Officer	Title:	Reporting & Compliance Officer