Exhibit 10.16


 


 


AXIS
2002 ADDITIONAL BONUS PLAN


 


 


AXIS Capital Holdings
Limited (“Axis”) has established the AXIS 2002 Additional Bonus Plan (the
“Plan”) to enable eligible employees to share in the success of Axis’ first
year in business.  The terms of the Plan
are as set forth herein.


1.             Eligibility. 
Any person who was continuously employed by Axis or one of its
affiliates from his or her date of hire by Axis or one of its affiliates
through December 31, 2002 and who remained continuously employed by Axis or one
of its affiliates thereafter through January 1, 2004 shall be entitled to an
allocation from the Bonus Pool (as defined in Section 2) and shall be a
“Participant” in the Plan from and after January 1, 2004.  Notwithstanding the foregoing, the following
individuals shall not be eligible to be Participants in the Plan:  the Chairman of the Board of Axis, the Chief
Executive Officer of Axis (the “CEO”) and the Chairman of the Executive
Committee of Axis.


2.             Bonus Pool. 
The “Bonus Pool” shall be equal to $2.9 million.


3.             Allocations. 
The Chairman, the CEO and the Chairman of the Executive Committee of
Axis, collectively, shall  have the
sole and exclusive authority to determine each Participant’s interest in the
Bonus Pool.  A Participant’s interest in
the Bonus Pool shall be referred to herein as the Participant’s “Allocation”.


4.             Vesting.  Each
Participant shall have a fully vested right in his or her Allocation as of
October 1, 2005; provided, however, that, except as determined by the CEO or as
otherwise provided in this Section 4, if a Participant’s employment with Axis
and its affiliates terminates prior to October 1, 1995 for any reason, he or
she shall cease to be a Participant as of his or her termination date, his or
her Allocation shall be forfeited as of his or her termination date and the
Participant shall have no rights to payments under the Plan.  Any amount forfeited by a Participant shall
be reallocated among the then remaining Participants in the Plan, pro rata
based on the original Allocation granted to each such remaining
Participant.  Notwithstanding the
foregoing, (a) if a Participant’s employment with Axis and its affiliates
terminates on account of his or her death, Disability or Retirement, he or she
shall be fully vested in his or her Allocation as of the date of his or her
termination of employment, and (b) if a Change in Control occurs prior to
October 1, 2005, all then remaining Participants shall be fully vested in their
Allocations as of the date of the Change in Control.  For purposes of the Plan, “Disability”, “Retirement” and “Change
in Control” shall have the meanings set forth in the AXIS Capital Holdings
Limited 2003 Long-Term Equity Compensation Plan.


5.             Payment. 
Any Participant who becomes vested in his or her Allocation shall
receive a lump sum cash payment of the value of his or her Allocation as soon
as practicable after October 1, 2005. 
In the event a Participant becomes vested in his or her Allocation prior
to October 1, 2005, the Participant shall receive a lump sum payment of the
value of the Allocation as soon as practicable after the date on which the
Allocation becomes vested.  In the event
of the Participant’s death, any payments hereunder shall be made to the
Participant’s estate.  Any payments
hereunder shall be subject to such withholdings as may be required by
applicable law.

















 


6.             Interpretation of Plan.  The Chairman, the CEO and the Chairman of the Executive Committee
shall have the authority to administer the Plan and to conclusively make all
determinations under the Plan and to interpret the Plan.  Any such determinations or interpretations
made by the Chairman, the CEO or the Chairman of the Executive Committee shall
be binding on all persons.


7.             Governing Law. 
The Plan shall be governed by the laws of Bermuda.


8.             No Guarantee of Continued Employment.  Nothing in the Plan shall interfere with or
limit in any way the right of Axis or any of its affiliates to terminate any
employee’s employment at any time, nor shall it confer upon any Participant any
right to continue in the employ of Axis or any of its affiliates.  For purposes of the Plan, temporary absence
from employment because of illness, vacation, approved leaves of absence, and
transfers of employment among Axis and its affiliates shall not be considered
to terminate an employee’s employment.


9.             Successors. 
All obligations of Axis under the Plan shall be binding on any successor
to Axis, whether the existence of such successor is the result of a direct or
indirect merger, consolidation, purchase of all or substantially all of the
business and/or assets of Axis or otherwise.


10.           Amendment and Termination.  This Plan may be amended or terminated at
any time by the Board of Directors of Axis; provided, however, that no
amendment shall be given effect to the extent that it would have the effect of
reducing a Participant’s then current Allocation.


 


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