Exhibit 10.6

Board of Directors
Compensation Program

As Approved
10 May 2005

 

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PartnerRe Ltd. Board of Directors Compensation Policy

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PartnerRe has developed a Board of Directors Compensation Policy to address
specific objectives:
 * Establish competitive pay levels on a total compensation basis
 * Align the interests of Directors and shareholders by using equity as a major
   component of the total compensation package
 * Establish one approach to Director compensation in recognition of PartnerRe’s
   strategy to rotate Directors’ committee assignments periodically
 * Demonstrate good governance and corporate responsibility

As part of the new compensation policy for the members of the Board of Directors
and as approved by the Nominating and Governance Committee, PartnerRe offers a
competitive mix of cash and equity compensation for each Director and for the
Chairman.

The total compensation package for Director service consists of three components
 * Cash compensation
 * Stock Options
 * Restricted Stock Units (RSU’s)

Cash Compensation

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Members of the Board of Directors are entitled to receive cash compensation on a
quarterly basis for their services.

Annually Quarterly Chairman $180,000 $45,000 Director $50,000 $12,500

Elective Equity Incentive

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Deferred Cash Compensation

Members of the Board may elect to defer part or all of their cash compensation
into RSU’s. Election options include deferral of 0%, 50% or 100% of cash
compensation.

Deferred cash compensation is converted into immediately vested RSU’s with a
minimum delivery date restriction of 5 years. The Director may elect to extend
the delivery date restriction to 10 years or 15 years from grant.

Company Match

Should a Board member elect to defer cash into RSU’s, deferred amounts would
receive an additional matching award of 25% of the deferred dollar amount. The
matching award would be granted in immediately vested RSU’s with a minimum
deliver date restriction of 5 years, extendable to 10 years or 15 years from
grant.

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Stock Options

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Members of the Board of Directors are entitled to receive a number of stock
options annually on the date of the shareholders Annual General Meeting with a
grant-date Fair Value equal to $100,000. The Fair Value of stock options granted
to the Chairman will be $120,000

  Annually Chairman $120,000 Director $100,000

Director (including Chairman) stock option awards are immediately vested and the
grant price of the stock option awards is equal to the average of highest and
lowest sale price on trading day immediately preceding the grant date, as per
the shareholder approved 2003 Non-Employee Directors’ Stock Plan.

RSU’s

Members of the Board of Directors are entitled to receive RSU’s on a quarterly
basis for their services. The number of RSU’s awarded is determined by the
dollar value award divided by the fair market value of PartnerRe Ltd. Common
Shares on the grant date.

  Annually Quarterly Chairman $100,000 $25,000 Director $80,000 $20,000

RSU awards are immediately vested with a minimum delivery date restriction of 5
years. The Director may elect to extend the delivery date restriction to 10
years or 15 years from grant.

Dividend Equivalents

All RSU awards will receive quarterly dividend equivalent payments, payable in
cash. These will be paid at the same time as the Company pays its Common Share
dividends.

Delivery Date Restrictions

All RSU awards will have a minimum delivery date restriction of 5 years,
extendable at the election of the Director to 10 years or 15 years from grant
date. If a Director terminates his/her directorship for any reason other than
death, delivery date restrictions still apply. In the case of death, shares are
immediately delivered.

Ownership Target

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Directors are expected to hold shares plus RSUs equal to at least four times the
annual cash retainer.

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Travel

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The Company agrees to reimburse all business expenses related to services
rendered as a Director of PartnerRe Ltd.

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