X0303 4 2009-04-13 0 0001347815 Flagstone Reinsurance Holdings Ltd FSR 0001411821 WATSON PETER F FLAGSTONE REINSURANCE HOLDINGS LIMITED 23 CHURCH STREET HAMILTON D0 HM 11 BERMUDA 1 0 0 0 Restricted Share Units 0 2009-04-13 4 A 0 4145 0 A 2009-04-13 Common Shares 4145 7350 D The Restricted Share Units ("RSUs") vest 100% on the date of the grant. Each RSU represents the right to receive without payment to the Company, one newly-issued, fully paid and non-assessable common share of the Company, subject to the terms and conditions of the RSU Plan and the grant certificate evidencing each grant. In the discretion of the Compensation Committee, upon vesting the value of the RSU grant alternatively may be paid in cash, or partly in common shares. The RSUs have no expiration date. /s/ William F. Fawcett (pursuant to power of attorney) 2009-04-15