ACE Ltd. Contracts
Sample Business Contracts
Employment Agreement - ACE Ltd. and Philip Bancroft
Employment Forms
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[LETTERHEAD OF ACE LIMITED]
FAX: 646 471 5933
Mr. Philip Bancroft
c/o PriceWaterhouseCoopers
New York, NY
U.S.A.
November 2, 2001
Dear Phil,
This letter confirms our recent telephone conversations and our offer of
employment to you for the position of Chief Financial Officer, ACE Limited,
subject to the formality of obtaining a Bermuda work permit.
The main terms of compensation related to the position are attached but you will
participate in all the benefit plans enjoyed by our senior executive group,
which includes an executive medical program as well as financial and tax
planning.
For the sake of clarity, I should also point out that ACE is required to deduct
Government Payroll Tax on compensation, which, in your case will amount to
approximately $10,000. All other local taxes are absorbed by the Company. As you
would expect, ACE withholds income tax from US citizens and complies with all US
reporting obligations.
Phil, I shall look forward to having you join our dynamic team and feel certain
you will contribute significantly to ACE's future success.
Please let me have your formal acceptance of our offer when you have finished
your discussions with your partners.
Yours sincerely,
Brian Duperreault
Chairman and Chief Executive Officer
<PAGE>
Chief Financial Officer
ACE Limited
SALARY $600,000 per annum
ANNUAL CASH INCENTIVE: At the discretion of the Board of Directors
based on individual contribution and the
Company's results. It is anticipated that
the range will between 0 - 100% of annual
cash salary.
CASH INCENTIVE: $600,000 payable after joining in fiscal
(Sign-On) year 2002
ANNUAL LONG TERM INCENTIVE: At the discretion of the Board of Directors
based on individual contribution and the
Company's results. It is anticipated that
you will be eligible for consideration for
award at the end of Financial Year 2002.
LONG TERM INCENTIVE: 15,000 Restricted Ordinary ACE Limited
(Sign On) Shares to be awarded at the New York Stock
Exchange closing price for ACE Limited
Ordinary Shares on the 1/st/ business
trading day of the month immediately
following your start date. Vest 25% per
annum over 4 years provided you are
employed by the Company on each vesting
date, with the first 25% to vest on the
first anniversary date of the grant.
45,000 Options to purchase ordinary ACE
Limited Shares to be awarded at the New
York Stock Exchange closing price for ACE
Limited Ordinary Shares on the 1/st/
business trading day of the month
immediately following your start date.
Vesting 33 1/3% per annum over 3 years
provided you are employed on each vesting
date with the first 33 1/3% vesting on
first anniversary date of grant.
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<PAGE>
DEFINED CONTRIBUTION PLAN: Participation in Company's retirement plan.
Based on cash salary and annual cash
incentive - 6% Company contribution plus up
to 6% Company contribution to match
individual contribution with potential for
up to an additional 3% profit share
contribution by the Company.
LIFE ASSURANCE: Coverage in accordance with ACE Limited's
current plan
4 x annual salary - subject to medical.
DISABILITY INSURANCE: Coverage in accordance with ACE Limited's
current plan
60% of salary after six months total
disability - subject to medical.
HEALTH (including DENTAL) Coverage in accordance with ACE Limited's
& MAJOR MEDICAL INSURANCE: current plan, subject to six month's
exclusion for any known pre-existing
conditions.
HOUSING ALLOWANCE Reimbursement for cost of renting suitable
accommodation in Bermuda
CAR LOAN: Interest free loan for an automobile up to
a maximum amount of $32,000 depreciated
over a six-year period.
CAR ALLOWANCE: Reimbursement for expenses of $350 per
month towards the cost of running an
automobile e.g. gas, repairs, license and
insurance etc. (subject to owning a car)
CLUB MEMBERSHIP: Club membership of your choice in Bermuda -
initiation and annual dues.
VACATION: 20 days per calendar year exclusive of
public holidays.
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