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                                                                   Exhibit 10.46

                             CONSULTING AGREEMENT

     CONSULTING AGREEMENT dated as of 1/st/ January 2000 (the "Agreement) by and
among ACE Limited, a Cayman company limited by shares ("ACE"), and Kramer
Capital Corp., a Delaware corporation with its principal place of business in
Connecticut ("Kramer Capital").

     WHEREAS ACE desires to retain Kramer Capital and its employees for
technical support, advice and consulting services;

     WHEREAS Kramer Capital is willing to provide such support and consulting
services on the terms and conditions hereinafter set forth in this Agreement;

     NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein and for other good and valuable consideration, the parties
agree as follows:

     1.   Term. Kramer Capital shall be retained to provide services to ACE for
a term commencing on the date hereof and ending on the fifth anniversary of the
date hereof unless earlier terminated pursuant to Section 5 (the"Term").

     2.   Position and Responsibility. During the Term, Kramer Capital agrees to
act as a non-exclusive insurance and financial advisor to ACE. In particular,
Kramer Capital will undertake on behalf of ACE some or all of the following
services as agreed from time to time with ACE:

     (a)  Search for strategic opportunities in the insurance and financial
          services industry.

     (b)  Engage in research on publicly held and privately owned companies in
          both the insurance and financial services sector.

     (c)  Analyze trends in the insurance industry, monitor competition and
          evaluate new products, to advise ACE of any new developments that may
          affect the industry or ACE or its affiliates specifically.

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     (d)  Maintain contact with investment bankers, business brokers and any
          other sources of new business opportunities.

     (e)  Coordinate merger and acquisition activity between ACE, investment
          bankers, lawyers, accountants, actuaries and other due diligence
          specialists and with target companies.

     (f)  Provide analysis of prospective transactions.

     (g)  Find, develop, implement and monitor strategic investments and joint
          ventures in markets throughout the world.

     (h)  Keep ACE's executive staff continually informed of late breaking and
          relevant events in the insurance and financial services industry.

     (i)  Such other special projects as shall be mutually agreed upon by Kramer
          Capital and the Chairman of ACE.

Kramer Capital will be expected to make available the services of Don Kramer and
others, as may be agreed in performing its obligations hereunder.

     3.   Retainer. Upon signing this Agreement ACE agrees to pay Kramer Capital
an up front retainer fee of $100,000. Additional fees for Kramer Capital's
services shall be agreed in writing between the parties from time to time.

     4.   Reimbursement of Out-of-Pocket Expenses.  Reasonable Out-of-pocket
expenses incurred by Kramer Capital and its employees during the Term in the
provision of its services hereunder shall be reimbursed by ACE, upon
presentation of an itemized billing statement.

     5.   Termination. This Agreement and Kramer Capital's retention hereunder
may be terminated at any time by either ACE or Kramer Capital upon 30 days'
prior written notice to the other.

     6.   Status as Consultant. Neither Kramer Capital nor any of its
shareholders, directors, officers, employees, agents or representatives shall
have the authority to act as an agent of ACE, except an authority specifically
delegated in writing by ACE, and shall not represent to

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the contrary to any person. Kramer Capital and its employees shall only consult,
render advice and perform such tasks as Kramer Capital determines are necessary
to achieve the results specified by ACE and shall not direct the work of any
employee of ACE, or make any management decisions, or undertake to commit ACE to
any course of action in relation to third persons. Although ACE may specify the
results to be achieved by Kramer Capital and may control Kramer Capital in that
regard, ACE shall not control or direct Kramer Capital as to the details or
means by which such results are accomplished. It is intended that the amounts
payable hereunder during or after the Term shall constitute revenues to Kramer
Capital. To the extent consistent with applicable law, ACE will not withhold
any amounts therefrom as federal income tax withholding from wages or as
employee contributions under the Federal Insurance Contributions Ace or any
other state or federal laws. Kramer Capital shall be solely responsible for the
withholding and/or payment of any federal, state or local income or payroll
taxes.

     7.   Restrictive Covenants

     (a)  Confidentiality. Kramer Capital shall not, and shall not permit its
shareholders, directors, officers, employees, agents and representatives to,
during the Term and thereafter, except in the performance of its obligations to
ACE hereunder or as may otherwise be approved in advance by the Chairman of ACE,
directly or indirectly, disclose or use (except for the direct benefit of ACE)
any confidential information that it or they may learn or has learned by reason
of its or their association with ACE, any client or any of their respective
affiliate

     (b)  Exclusive Property. Kramer Capital confirms that all confidential
information with respect to ACE (or any of its affiliates) or any client, as the
case may be, is and shall remain the exclusive property of ACE (or any such
affiliate) or such client, as appropriate. All business records, papers and
documents kept or made by Kramer Capital or any of its shareholders, directions,
officers, employees, agents or representatives relating to the business of ACE
(or any of its affiliates) or any client shall be and remain the property of ACE
(or any such affiliate) or such client, as appropriate, except for such papers
customarily deemed to be the personal copies of Kramer Capital.

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     (c)  Intellectual Property. Kramer Capital confirms that all software and
other intellectual property developed on behalf of ACE (or any of its
affiliates) or any client, as the case may be, is and shall remain the exclusive
property of ACE (or any such affiliate) or such client, as appropriate, and the
copyright and/or patent shall belong to ACE (or any such affiliate) or such
client, as appropriate, unless the ownership is transferred in writing by ACE.
Any commercially licensed software used by Kramer Capital shall be identified as
such and ACE shall assume all liability for copyright or patent infringement.

     8.   Arbitration. Any dispute or controversy arising under or in connection
with this Agreement that cannot be mutually resolved by the parties hereto shall
be settled exclusively by arbitration in New York, New York, United States of
America, before one arbitrator of exemplary qualifications and stature, who
shall be selected jointly by ACE and Kramer Capital, or, if ACE and Kramer
Capital cannot agree on the selection of the arbitrator, shall be selected by
the American Arbitration Association; provided that any arbitrator selected by
the American Arbitration Association shall not, without the consent of the
parties hereto, be affiliated with Kramer Capital or ACE or any of ACE's
affiliates. Judgement may be entered on the arbitrator's award in any court
having jurisdiction. The parties hereby agree that the arbitrator shall be
empowered to enter an equitable decree mandating specific enforcement of the
terms of this Agreement. ACE shall bear all expenses of the arbitrator incurred
in any arbitration hereunder and shall reimburse Kramer Capital for any related
reasonable legal fees and out-of-pocket expenses directly attributable to such
arbitration; provided that such legal fees are calculated on an hourly, and not
on a contingency fee, basis; and provided further that Kramer Capital shall bear
all expenses of the arbitration and all his legal fees and out-of-pocket
expenses (and reimburse ACE for its legal fees, out-of-pocket expenses and its
portion of the expenses of the arbitrator) if the arbitrator or relevant trier-
of-fact determines that Kramer Capital's claim or position was without
reasonable foundation.

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     9.   Miscellaneous.

     (a)  Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware.

     (b)  Entire Agreement: Amendments. This Agreement contains the entire
understanding of the parties with respect to the retention of Kramer Capital by
ACE. There are no restrictions, agreement, promises, warranties, covenants or
undertakings between the parties with respect to the subject matter herein other
than those expressly set forth herein. This Agreement may not be altered,
modified or amended except by written instrument signed by each of the parties
hereto.

     (c)  No Waiver. The failure of a party to insist upon strict adherence to
any term of this Agreement on any occasion shall not be considered a waiver of
such party's rights or deprive such party of the right thereafter to insist upon
strict adherence to that term or any other term of this Agreement.

     (d)  Severability. In the event that any one or more of the provisions of
this Agreement shall be or become invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provision of
this Agreement shall not be affected thereby.

     (e)  Assignment: Successors: Binding Agreement. This Agreement shall not be
assignable by any of the parties. This Agreement shall inure to the benefit of
and be binding upon the parties hereto and their respective heirs,
representatives, successors and permitted assigns.

     (f)  Headings. The headings used in this Agreement are for convenience only
and shall not affect the meaning of or be used to interpret any provisions
herein.

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     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as
of the date and year first above written.

                                                  ACE LIMITED

                                                  ______________________________
                                                  Name:
                                                  Title:

                                                  KRAMER CAPITAL

                                                  ______________________________
                                                  Name:
                                                  Title:

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                                                                   EXHIBIT 10.47

                                PROMISSORY NOTE

$250,000.00                                                       March 23, 1999

     FOR VALUE RECEIVED, the undersigned, Dominic J. Frederico, an individual
(the "Employee"), promises to pay to the order of ACE Limited, a Cayman Islands
company (the "Company"), on the date on which the Employee's employment with the
Company terminates (the "Maturity Date"), the principal sum of $250,000.00 and
any accrued interest on this Note, subject to the provisions of this Note
relating to forgiveness of such obligations.

     This Note evidences obligations in connection with a loan made by the
Company to the Employee as part of the inducement to the Employee to assume
additional responsibilities with the Company.

     The unpaid principal amount of this Note from time to time outstanding
shall bear interest at a rate per annum (based upon a 365/366 day year) equal to
the applicable Federal rate as of the March 23, 1999, as determined for purposes
of section 1274(d) of the Internal Revenue Code of 1986, as amended, compounded
annually. After the Maturity Date, any unpaid and unforgiven principal amount
and accrued unforgiven interest on the unpaid principal amount of this Note
shall be payable on demand.

     As of each of the first five one-year anniversaries of March 23, 1999 if
the Employee (i) is employed by the Company on such anniversary, (ii) has died
or resigned as a result of disability, or (iii) has been terminated by the
Company without Cause, an amount equal to $50,000.00 of the principal amount due
under this Note, together with the amount of interest that has accrued with
respect to the entire unpaid principal and interest amount since the preceding
March 23, shall be forgiven. If the Employee's employment with the Company is
terminated (i) by the Company for Cause or (ii) by reason of the Employee's
voluntary resignation (for reason other than death or disability), then any
remaining principal and interest shall become due and payable on the date of
such termination of employment. For purposes of this Note, the term "Cause"
shall have the same meaning set forth in the Employment Agreement dated as of
January 9, 1995 between the Company and the Employee. Disability shall mean
being adjudged by the Compensation Committee of the Company to be disabled
within the meaning of the Company's long-term disability plan.

     Subject to the other terms and conditions hereof, the Employee may
voluntarily prepay all or any portion of the unpaid and unforgiven principal
amount of this Note from time to time outstanding and any accrued and unforgiven
interest thereon, without premium or penalty.
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     All payments of principal of and interest on this Note shall be payable in
lawful currency of the United States of America at Hamilton, Bermuda or such
other place as the Company shall designate to the Employee in writing, in cash
or by check. If payment hereunder falls due on a day which is either a Saturday,
Sunday or any other day on which banks in Hamilton, Bermuda are not generally
open for business to the public (i.e., not a "Business Day"), then such due date
shall be extended to the immediately succeeding Business Day, and additional
interest shall accrue and be payable for the period of any such extension.

     The Employee agrees that if any of the following events of default (each an
"Event of Default") shall occur and be continuing:

     (i) default in the performance or observance of any other agreements of the
     Employee contained herein, or

     (ii) the institution of any bankruptcy, insolvency, receivership or similar
     proceeding relating to the Employee or his assets, and if such case or
     proceeding is not commenced by the Employee, it is consented to or
     acquiesced in by the Employee or remains for 60 days undismissed;

then the Company may declare this Note and all unpaid and unforgiven principal
of and interest on this Note and all accrued costs, expenses and other amounts
under this Note to be due and payable, whereupon all unpaid and unforgiven
principal of and interest on this Note and all such costs, expenses and other
amounts shall immediately become due and payable following such declaration.

     The Employee hereby represents and warrants to the Company as of the date
hereof (i) that this Note is the legally valid and binding obligation of the
Employee, enforceable against the Employee in accordance with its terms, and
(ii) that the execution, delivery and performance by the Employee of this Note
does not conflict with or contravene (a) any law, rule or regulation binding
upon the Employee or affecting any of the Employee's assets, (b) any provision
of any contract, instrument or agreement binding upon the Employee or affecting
any of the Employee's assets, or (c) any writ, order, judgment, decree or
decision of any court or governmental instrumentality binding upon the Employee
or affecting any of the Employee's assets.

     All notices, certificates and other communications hereunder shall be in
writing and may be either delivered personally, by internationally recognized
express courier for overnight delivery, or by facsimile (with request for
assurance of receipt in a manner appropriate with respect to communications of
that type, provided that a confirmation

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copy is concurrently sent by a internationally recognized express courier for
overnight delivery) or mailed, postage prepaid, by certified or registered mail,
return receipt requested, addressed as follows:

     If to the Company:  ACE Limited
                         The ACE Building
                         30 Woodbourne Avenue
                         Hamilton HM 08, Bermuda
                         Attention: General Counsel
                         Facsimile: (441) 296-0087

     If to the Employee: Dominic J. Frederico
                         ACE Limited
                         The ACE Building
                         30 Woodbourne Avenue
                         Hamilton HM 08, Bermuda
                         Facsimile: (441) 296-0087

     All Notices hereunder shall be in writing (including, without limitation,
facsimile transmission) and shall be sent to the Employee or the Company, as
appropriate, at such party's address shown above, or at such other address as
such party may, by written notice received by the other party hereto, have
designated as its or his address for such purpose. Notices sent by facsimile
transmission shall be deemed to have been given when sent; notices sent by mail
shall be deemed to have been given five days after the date mailed by registered
or certified mail, postage prepaid; and notices sent by hand delivery shall be
deemed to have been given when received.

     This Note has been made and delivered at Hamilton, Bermuda and shall be
construed in accordance with and governed by the internal laws of the State of
New York. Wherever possible, each provision of this Note shall be interpreted in
such manner as to be effective and valid under applicable law, but if any
provision of this Note shall be prohibited by or invalid under applicable law,
such provision shall be ineffective to the least extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Note.

     IN WITNESS WHEREOF, the Employee has caused this Note to be executed as of
the day and year first above written.

                                         --------------------------------
                                               Dominic J. Frederico

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