AMENDMENT NO. 2 to EMPLOYMENT AGREEMENT dated February 19, 2008 by and between Axis Specialty Limited (the Company)

Exhibit 10.1

AMENDMENT NO. 2

to

EMPLOYMENT AGREEMENT

dated February 19, 2008

by and between

Axis Specialty Limited (the “Company”)

and

John R. Charman (the “Executive”)

WHEREAS, the Company and the Executive entered into an amended and restated employment agreement dated as of December 15, 2003 (the “Agreement”);

WHEREAS, the Company and the Executive entered into an Amendment No. 1 to the Agreement as of October 23, 2007 (“Amendment No. 1”);

WHEREAS, the Compensation Committee of the Board has determined that it is in the best interests of the Company and its shareholders to extend the Executive’s service as its President and Chief Executive Officer and as a member of its Board of Directors, and of the Executive Committee of the Board through the period ending December 31, 2013;

WHEREAS, the Executive desires to extend his employment through the period ending December 31, 2013;

WHEREAS, the Company and the Executive desire to amend the Agreement to reflect the extension of the Executive’s employment pursuant to the terms and conditions of the Agreement;

NOW, THEREFORE, the Agreement is hereby amended, effective as of February 19, 2008 as follows:

IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the date first written above.