Document:

Exhibit

                                                            

                                                        
Exhibit 10.3
    
ASPEN
ASPEN  INSURANCE

KATE VACHER 
AND 
ASPEN INSURANCE UK SERVICES LIMITED 
    
SERVICE AGREEMENT

Aspen Insurance UK Services Limited
30 Fenchurch Street London EC3M 3BD
T +44 (0)20 7184 8000 F +44 (0)20 7184 8500 W aspeninsurance.co.uk

Aspen Insurance is a trading name of Aspen Insurance UK Limited
Registered in England No. 1184193 Authorised and regulated by the Financial Services Authority

TABLE OF CONTENTS

Clause    Page

1.    INTERPRETATION                                      l
		
	2.
	POSITION    2

		
	3.
	TERM    2

		
	4.
	DUTIES    2

		
	5.
	REMUNERATION AND COMMISSION    3

		
	6.
	PENSION AND INSURANCE BENEFITS    4

		
	7.
	EXPENSES    5

		
	8.
	HOLIDAYS AND HOLIDAY PAY    5

		
	9.
	DISABILITY OR DEATH    5

		
	10.
	CONFIDENTIAL INFORMATION    6

		
	11.
	COPYRIGHT AND DESIGNS    7

		
	12.
	GRATUITIES AND CODES OF CONDUCT    7

		
	13.
	RESTRICTIVE COVENANTS    8

		
	14.
	TERMINATION BY RECONSTRUCTION OR AMALGAMATION; CHANGE IN CONTROL    10

		
	15.
	TERMINATION OF EMPLOYMENT BY THE COMPANY FOR CAUSE    10

		
	16.
	TERMINATION OF EMPLOYMENT BY THE COMPANY WITHOUT CAUSE    11

		
	17.
	TERMINATION OF EMPLOYMENT BY THE EXECUTIVE    11

		
	18.
	OBLIGATIONS UPON TERMINATION OF EMPLOYMENT; CERTAIN OTHER TERMINATIONS    12

		
	19.
	EFFECT OF TERMINATION OF THIS AGREEMENT    14

		
	20.
	GENERAL RELEASE    15

		
	21.
	OTHER TERMS AND CONDITIONS    15

		
	22.
	NOTICES    15

		
	23.
	PREVIOUS AND OTHER AGREEMENTS    16

		
	24.
	ENTIRE AGREEMENT/AMENDMENT    16

		
	25.
	ASSIGNMENT    16

		
	26.
	SEVERABILITY    17

		
	27.
	SUCCESSORS/BINDING AGREEMENT    17

		
	28.
	CO-OPERATION    17

		
	29.
	GOVERNING LAW    17

		
	30.
	COUNTERPARTS    17

IT IS AGREED as follows:    19

SERVICE AGREEMENT

		
	DATE:
	1st November 2010, to supersede a former employment agreement dated 21st June 2002

PARTIES:

		
	(1)
	Kate Vacher of [address intentionally omitted] (the "Executive"); and

		
	(2)
	ASPEN INSURANCE UK SERVICES LIMITED (Registered in England

No.  1184193), 30 Fenchurch St, London, EC3M 3BD, England (the "Company").

OPERATIVE TERMS:

		
	1.
	INTERPRETATION

1.1    In this Agreement:

		
	"Affiliate"
	means any entity directly or indirectly controlling, controlled by, or under common control with Holdings; or any other entity designated by the Board of Directors of Holdings in which Holdings or an Affiliate has an interest;

		
	"Board"
	means the Board of Directors of the Company from time to time;

"Chief Executive Officer"    means the Chief Executive Officer of Holdings
from time to time;

"Former Agreement "    means an employment agreement between the
Executive and the Company dated 21st June, 2002, which this Agreement supersedes replaces;

		
	"Group"
	means Holdings and its Affiliates (and "Group Company" means Holdings or any one of its Affiliates);

		
	"Holdings"
	means Aspen Insurance Holdings Limited, a Bermuda limited company; and

		
	"Manager"
	means Chief Executive Officer or such other person as the Company may nominate from time to time as the person to whom the Executive shall report.

1.2    In this Agreement references to any statutory provision shall include such provision as from time to time amended, whether before on or (in the case of re­ enactment or consolidation only) after the date hereof, and shall be deemed to include provision of earlier legislation (as from time to time amended) which have been re­ enacted (with or without modification) or replaced (directly or indirectly) by such provision and shall further include all statutory instruments or orders from time to time made pursuant thereto.

2.    POSITION

The Company shall employ the Executive as Director of Underwriting.

		
	3.
	TERM

3.1    The Company shall employ the Executive, and the Executive shall serve the Company, on the terms and conditions set forth in this Agreement, beginning on the date hereof (the "Effective Date") and continuing unless and until terminated in accordance with the provisions contained in this Agreement.

3.2    With effect from the Effective Date, this Agreement shall supersede and replace in full the Executives employment under the Former Agreement, provided that the Executives employment under this Agreement and the Former Agreement shall be deemed to constitute a continuous period of employment by the Executive with the Company.

3.3    Notwithstanding the provisions of Clause 3.2, the Executive's employment shall terminate automatically when the Executive reaches the age of 65 years.

		
	4.
	DUTIES

		
	4.1
	During her employment hereunder the Executive shall:

(a)    report to the Manager and perform the duties and exercise the powers and functions which from time to time may reasonably be assigned to or vested in him by the Board or the Chief Executive Officer in relation to the Company and any other Group Company to the extent consistent with her job title set out in Clause 2 (without being entitled to any additional remuneration in respect of such duties for any Group Company);

(b)    devote the whole of her working time, attention and ability to her duties in relation to the Company and any other Group Company at such place or places as the Board shall determine.  The Executive shall work at the Company's premises at 30 Fenchurch St, London EC3M 3BD, or such other place as the Company and the Executive shall mutually agree, provided that the Executive shall not be required to reside outside the United Kingdom;

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(c)    comply with all reasonable requests, instructions and regulations given or made by the Board (or by any one authorised by it) and promptly provide such explanations , information and assistance as to the performance of her duties assigned to him under this Agreement as the Board or the Chief Executive Officer may reasonably require;

(d)    faithfully and loyally serve the Company and each other Group Company to the best of her ability and use her utmost endeavours to promote its interests in all respects;

(e)    not engage in any activities which would detract from the proper performance of her duties hereunder, nor without the prior written consent of the Board in any capacity including as director, shareholder, principal , consultant, agent, partner or employee of any other company, firm or person (save as the holder for investment of securities which do not exceed three percent (3%) in nominal value of the share capital or stock of any class of any company quoted on a recognised stock exchange) engage or be concerned or interested directly or indirectly in any other trade, business or occupation whatsoever ; and

(f)    comply (and shall use every reasonable endeavour to procure that her spouse and minor children will comply) with all applicable rules of law, stock exchange regulations, individual registration requirements (at a cost to be borne by the Company) and codes of conduct of the Company and any other Group Company in effect with respect to dealing in shares, debentures or other securities of the Company or other Group Company.

4.2    Nothing herein shall preclude the Executive from (a) serving on the boards of directors of a reasonable number of other corporations subject to the approval of the Chief Executive Officer in each case, which approval shall not be unreasonably withheld,
(b) serving on the boards of a reasonable number of trade associations subject to the approval of the Chief Executive Officer, which approval shall not unreasonably be withheld, and/or charitable organizations , (c) engaging in any charitable activities and community affairs, and (d) managing her personal investments and affairs, provided that such activities set forth in this Clause 4.2 do not significantly interfere with the performance of her duties and responsibilities to any Group Company.

		
	5.
	REMUNERATION  AND COMMISSION

5.1 The Executive shall be paid by way of remuneration for her services during her employment hereunder a salary at the rate (the "Salary Rate") of £224,500 per annum, subject to increase pursuant to Clause 5.3.

5.2    The Executive shall be eligible for a cash bonus ("the annual incentive award ") based on a bonus potential of 100% of her annual salary (this percentage is not a cap or a limit and can be exceeded) during her employment hereunder of such amounts (if any) at such times and subject to such conditions as the Compensation Committee of the Board of Directors of Holdings (the "Compensation Committee") may in its absolute discretion

decide; provided, however, that notwithstanding the preceding language of this Clause 5.2, the Executive shall participate in all management incentive plans made available to the Company's senior executives at a level commensurate with Executive's status and position at the Company.

5.3    The Company shall review the Salary Rate for increase at least once each year, and any change in the Salary Rate resulting from such review will take effect from 1 April.  The Company’s review shall take into consideration, among other factors, the base salary paid to individuals performing similar services at comparable companies based in Bermuda, the United Kingdom and the United States, as well as other relevant local or global talent pool comparables, it being expressly understood that while it is intended that the Company shall consider these factors, it shall have no obligation to take any specific action based on such factors.

5.4    The Executive's salary will be payable by equal monthly instalments; each monthly instalments will be in respect of a calendar month and will be paid on or before the last day of such calendar month.  Where the employment has begun or ended in a calendar month, salary in respect of that month will be the proportion of a normal month's instalments which the days of employment in that month bear to the total days in the month.

5.5    The Company may withhold from amounts payable under this Agreement all applicable taxes that are required to be withheld by applicable laws or regulations.

		
	6.
	PENSION AND INSURANCE BENEFITS

6.1    During her employment hereunder, the Executive shall continue to be a member of the pension scheme established by the Board (the "Scheme").  The Executive's membership in the Scheme shall be subject to the provisions thereof as may be amended from time to time.

6.2    During her employment hereunder, the Executive shall be entitled to participate in all employee benefit and perquisite plans and programs made available to the Company's senior level executives or to its employees generally, as such plans or programs may be in effect from time to time.

6.3    During her employment hereunder, the Company shall provide the Executive with medical insurance, permanent health insurance, personal accident insurance and life insurance (subject to the relevant insurers' terms and conditions).  The Board shall have the right to change the arrangements for the provision of such benefits as it sees fit or, if in the reasonable opinion of the Board, the Company is unable to secure any such insurance under the rules of any applicable scheme or otherwise at reasonable rates due to market conditions to cease to provide any or all of the insurances unless in either case the Executive or a member of her family is at that time suffering from a medical condition which would entitle them to benefits under the policy in question in which case the existing policy is to be maintained in force by the Company or an alternative policy provided which would provide the same benefit in relation to the medical condition in question.

		
	7.
	EXPENSES

The Company shall reimburse to the Executive all travelling, hotel, entertainment and other expenses properly and reasonably incurred by him in the performance of her duties hereunder and properly claimed and vouched for in accordance with the Company's expense reporting procedure in force from time to time.

		
	8.
	HOLIDAYS AND HOLIDAY PAY

8.1    In addition to public holidays in England, during her employment hereunder, the Executive shall be entitled to 26 working days' paid holiday per holiday year and, if applicable, such additional days as are set out in the Company's standard terms and conditions of employment from time to time, during each holiday year to be taken at such time or times as may be agreed with the Manager.  Except as otherwise provided in the Company's holiday policy, the Executive may not carry forward any unused part of her holiday entitlement to a subsequent holiday year and the Executive shall not be entitled to any salary in lieu of untaken holiday.

8.2    For the holiday year during which the Executive's employment hereunder commences or terminates he shall be entitled to such proportion of her annual holiday entitlement as the period of her employment in each such holiday year bears to one holiday year as set out in the Company's holiday policy.  Upon termination of her employment for whatever reason, he shall, if appropriate, be entitled to salary in lieu of any outstanding holiday entitlement.

		
	9.
	DISABILITY  OR DEATH

9.1    The Company reserves the right at any time to require the Executive (at the expense of the Company) to be examined by a medical adviser nominated by the Company and the Executive consents to the medical adviser disclosing the results of the examination to the Company and shall provide the Company with such formal consents as may be necessary for this purpose.

9.2    If the Executive shall be prevented by illness, accident or other incapacity from properly performing her duties hereunder he shall report this fact forthwith to the Company Secretary's office and if he is so prevented for seven or more consecutive days he shall if required by the Company provide an appropriate doctor's certificate.

9.3    If the Executive shall be absent from her duties hereunder owing to illness, accident or other incapacity duly certified in accordance with the provisions of clause 9.2 he shall be paid her full remuneration for any period of absence of up to a maximum of 26 weeks in aggregate in any period of 52 consecutive weeks and thereafter, subject to the provisions of clause 16, to such remuneration (if any) as the Board shall in its absolute discretion allow.

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9.4    If the Executive shall be, on the basis of a medical report supplied to the Company following her having undergone a medical examination pursuant to clause 9.1, in the opinion of the Board unfit ever to return to her duties (but in such circumstances and prior to any action being taken under this clause, the Executive shall have the right to have a second medical report from a duly qualified doctor or medical adviser selected by the Executive and approved by the Board, which approval shall not be unreasonably withheld) the Company shall be entitled to place the Executive on permanent sick leave without pay or benefits (other than permanent health insurance benefits) with effect from any time on or after the commencement of payments under the permanent health insurance arrangements referred to in clause 6.3.

9.5    In the event that the Executive's employment is terminated due to her death, her estate or her beneficiaries,  as the case may be, shall be entitled to:  (a) salary at her Salary Rate up to and including the end of the month in which her death occurs, (b) the annual incentive award, if any, to which the Executive would have been entitled to pursuant to Clause 5.2 for the year in which the Executive's death occurs, multiplied by a fraction, the numerator of which is the number of days that the Executive was employed during the applicable year and the denominator of which is 365, and (c) the unpaid balance of all previously earned cash bonus and other incentive awards with respect to performance periods which have been completed, all of which amounts shall be payable in a lump sum in cash within 30 days after her death, except that the pro-rated annual incentive award shall be payable when such award would have otherwise been payable had the Executive not died.

		
	10.
	CONFIDENTIAL   INFORMATION

10.1    Except as otherwise provided in this Section, the Executive shall not during her employment hereunder or at any time after its termination for any reason whatsoever disclose to any person whatsoever  or otherwise make use of any Confidential Information.

10.2    As used in this Section, the term "Confidential Information" shall mean any confidential or secret information which he has or may have acquired in the course of her employment relating to the Company or any other Group Company or any customers or clients of the Company or any other Group Company, including without limiting the generality of the foregoing:

		
	(a)
	confidential or secret information relating to the past, current or future business, finances, activities and operations of the Company or any other Group Company;

		
	(b)
	confidential or secret information relating to the past, current or future business, finances, activities and operations of any third party to the extent that such information was obtained by the Company or any other Group Company pursuant to a confidentiality  agreement;

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but shall not include inforn1ation that is generally known to, or recognised as standard practice in, the industry in which the Company is engaged unless such information  is known or recognised  as a result of the Executive's breach of this covenant.

10.3    The Executive will only use Confidential Information for the benefit of the Company or any other Group Company in the course of her employment and shall at all times exercise all due care and diligence to prevent the unauthorised disclosure or use of Confidential Information.

10.4    In the event that the Executive becomes compelled by a court or administrative order to disclose any of the Confidential Information other than as permitted pursuant to this Section, he will provide prompt notice to the Company so that the Company may seek a protective order or other appropriate remedy. In the event the Company fails to seek, or seeks and fails to obtain, such a protective order or other protective remedy, the Executive will furnish only that portion of the Confidential Information that, in the opinion of her counsel, he is legally required to furnish.

		
	11.
	COPYRIGHT AND DESIGNS

11.1    The Executive hereby assigns to the Company all present and future copyright, design rights and other proprietary rights if any for the full term thereof throughout the world in respect of all works originated by him at any time during the period of her employment by the Company or any other Group Company whether during the course of her normal duties or other duties specifically assigned to him (whether or not during normal working hours) either alone or in conjunction with any other person and in which copyright or design rights may subsist except only those designs or other works written, originated , conceived or made by him wholly unconnected  with her service hereunder.

11.2    The Executive agrees and undertakes that he will execute such deeds or documents and do all such acts and things as may be necessary or desirable to substantiate the rights of the Company in respect of the matters referred to in this Clause. To secure her obligation under this Agreement the Executive irrevocably appoints the Company to be her attorney in her name and on her behalf to execute such deeds or documents and do all such acts and things as may be necessary or desirable to substantiate the rights of the Company in respect of the matters referred to in this Clause.

11.3    The Executive hereby irrevocably waives all moral rights that he had or may have in any of the works referred to in Clause 11.1, subject to the exception therein.

		
	12.
	GRATUITIES AND CODES OF CONDUCT

12.1    The Executive shall comply with all codes of conduct from time to time adopted by the Board or the Board of Directors of Holdings.

12.2    The Executive shall not, except in accordance with the Holdings Gift and Hospitality Policy and any other code of conduct adopted by the Board of Holdings or with the prior written consent of the Board, directly or indirectly accept any commission, rebate, discount, gratuity or gift, in cash or in kind from any person who has or is likely to have a business relationship with the Company or any other Group Company and shall notify the Company upon acceptance by the Executive of any commission, rebate, discount, gratuity or gift in accordance with the Holdings Gift and Hospitality Policy or any such code of conduct from time to time.

		
	13.
	RESTRICTIVE COVENANTS

13.1    For the purpose of this Clause:

"the Business" means the business of the Group or any Group Company at the date of termination of the Executive's employment with which the Executive has been concerned to a material extent at any time in the Relevant Period ;

references to the ''Group" and "Group Companies" shall only be reference to the Group and Group Companies in respect of which the Executive has carried out material duties in the Relevant Period;

"Relevant Period" shall mean the period of 24 months immediately preceding the date on which the Restricted Period defined in clause 13.3 commences or the date on which the Company seeks to enforce the restriction in question;

"Restricted Person" shall mean any person who or which has at any time during the Relevant Period done business with the Company or any other Group Company as customer or client or consultant and whom or which the Executive shall have had personal dealings with, contact with or responsibility for (each, in a business or commercial capacity) during the Relevant Period;

"Key Employee" shall mean any person who at the date of termination of the Executive's employment is employed or engaged by the Company or any other Group
Company with whom the Executive has had material contact during the Relevant Period and (a) is employed or engaged in the capacity of Manager, Underwriter or otherwise in a senior capacity or in any other capacity as may be agreed in writing between the Executive Committee and the Executive from time to time and/or (b) is in the possession of Confidential Information and/or (c) is directly managed by or reports to the Executive.

13.2    The Executive covenants with the Company that he will not in connection with the carrying on of any business in competition with the Business during her employment any Restricted Period applicable upon the termination of the Executive 's employment (as defined in clause 13.3) without the prior written consent of the Board either alone or jointly with or on behalf of any person directly or indirectly:

13.2.1    canvass, solicit or approach or cause to be canvassed or solicited or approached for orders in respect of any services provided and/or any products sold by the Company or any other Group Company any Restricted Person;

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13.2.2    solicit or entice away or endeavour to solicit or entice away from the Company or any other Group Company any Key Employee;

13.2.3    be employed, engaged, interested in or concerned with any business or undertaking which is engaged in or carries on business in the United Kingdom, Bermuda or the USA which is or is about to be in competition with the Business;

13.3    The length of the Restricted Period depends upon the circumstances in which the Executive's employment terminates as follows:-

13.3.1    if the Executive serves 12 months' notice to terminate her employment without Good Reason under clause 17.2 the Restricted Period shall be a period of 6 months (or 18 months in respect of clause 13.2.2 only) from the date on which notice is served which period shall run concurrently with the 12 month notice period irrespective of whether the Executive is working her notice, on garden leave or her employment has terminated prior to the expiry of the notice period as a result of the Company making a payment pursuant to clause 18.2 within the time period specified in that clause;

13.3.2    if the Company serves notice to terminate the Executive's employment without Cause under clause 16 the Restricted Period shall be a period of 6 months from the date on which notice is served by the Company which period shall run concurrently with the 12 month notice period irrespective of whether the Executive is working her notice, on garden leave or her employment has terminated prior to the expiry of the notice period as a result of the Company making a payment pursuant to clause 18.2 within the time period specified in that clause;

13.3.3    if the Executive serves immediate notice to terminate her employment with Good Reason under clause 17.1 the Restricted Period shall be 6 months from the date of termination provided the Executive is paid the payment due under clause 18.2 within the time period specified in that clause;

13.3.4    if the Company serves immediate notice to terminate the Executive's employment with Cause under clause 15.1 the Restricted Period shall be 6 months from the date of termination provided the Company complies with clause 15.1;

13.4    The covenants contained in Clauses 13.2.1, 13.2.2 and 13.2.3 are intended to be separate and severable and enforceable as such.  It is expressly understood and agreed that although the Executive and the Company consider the restrictions contained in this Clause 13 to be reasonable, if a final judicial determination is made by a court of competent jurisdiction that the time or territory or any other restriction contained in this Agreement is an unenforceable restriction against the Executive, the provisions of this Agreement shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent as such court may judicially determine to be enforceable. Alternatively, if any court of competent jurisdiction finds that any restriction contained in this Agreement is unenforceable, and such restriction cannot be amended so as to make it enforceable, such finding shall not affect the enforceability of any of the other restrictions contained herein.
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13.5    The Executive acknowledges and agrees that the Company's remedies at law for a breach of any of the provisions of Clauses 10, 11 or 13 would be inadequate and the Company would suffer irreparable damages as a result of such breach. In recognition of this fact, the Executive agrees that, in the event of such a breach, in addition to any remedies at law, the Company, without posting any bond, shall be entitled to obtain equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction or any other equitable remedy which may then be available.

		
	14.
	TERMINATION BY RECONSTRUCTION OR AMALGAMATION; CHANGE IN CONTROL

14.1    If the employment of the Executive hereunder shall be terminated solely by reason of the liquidation of any Group Company for the purposes of amalgamation or reconstruction or as part of any arrangement for the amalgamation of the undertaking of such Group Company not involving liquidation (in each case, other than a "Change in Control", as defined below) and the Executive shall be offered employment with the amalgamated or reconstructed company on the same terms as the terms of this Agreement , the Executive shall have no claim against the Company or any Group Company in respect of the termination of her employment by the Company.

14.2    If the employment of the Executive hereunder shall be terminated by the Company without Cause or by the Executive with Good Reason within the six-month period prior to a Change in Control or within the two-year  period after a Change in Control, in addition to the benefits provided in Clause 18.2, the  Executive shall be entitled to the following benefits: all share options and other equity-based awards held by the Executive in the Company (or any replacement share options and other equity­ based awards held by the Executive in an acquiring company following the Change in Control) shall immediately vest and (i) in the case of any remaining share options in the Company, shall be subject to the same treatment as any other share options of the Company on a Change of Control, provided that any performance conditions relating to those options shall be deemed to have been satisfied in full, (ii) in the case of share options in the Company which are rolled over in to options of an acquiring company on a Change in Control, any performance conditions relating to those options shall be deemed to have been satisfied in full and they shall remain exercisable for the remainder of their term, and  (iii) in the case of RSU's, performance shares or other equity awards any performance conditions relating to those awards shall be deemed to have been satisfied in full and they shall be immediately distributed to the Executive;

For purposes of this Agreement, "Change in Control" shall have the same meaning as under the Aspen Insurance Holdings 2003 Share Incentive Plan as in effect as of the date hereof.

		
	15.
	TERMINATION OF EMPLOYMENT BY THE COMPANY FOR CAUSE

15.1    The Company, without prejudice to any remedy which it may have against the Executive for the breach or non-performance of any of the provisions of this Agreement,
10

may by notice in writing to the Executive forthwith terminate her employment for "Cause".  In the event the Company terminates the Executive's employment for Cause, the Executive shall be entitled to salary at her Salary Rate and the benefits of her employment up to the date of termination.

For the purposes of this Agreement, "Cause" shall mean circumstances where the Executive:

(a)    becomes bankrupt or becomes the subject of an interim order under the Insolvency Act 1986 or makes any arrangement or composition with her creditors; or

(b)    is convicted of any criminal offence (other than an offence under road traffic legislation in the United Kingdom or elsewhere for which a penalty other than imprisonment is imposed); or

(c)    is guilty of any serious misconduct, any material breach or non- observance of any of the provisions of this Agreement , or conducts himself in a way which is materially prejudicial or calculated to be materially prejudicial to the business of the Group; or

(d)    is guilty of any repeated breach or non-observance of any code of conduct or fails or ceases to be registered (where such registration is, in the reasonable opinion of the Board, required for the performance of her duties) by any regulatory body in the United Kingdom or elsewhere.

		
	16.
	TERMINATION OF EMPLOYMENT BY THE COMPANY WITHOUT CAUSE

The Company may terminate the employment of the Executive at any time during the employment hereunder without Cause by either (i) giving to the Executive 12 months' prior notice in writing; or (ii) terminating the employment of the Executive immediately and paying the Executive in lieu of the notice to which he would have otherwise been entitled under (i) above (which payment in lieu shall be deemed to be included within the Severance Payment referred to in Clause 18.2) provided that the Company may not terminate the employment of the Executive under this clause without her consent at a time when he is unable to perform her duties through illness if the consequence of such termination would be to deprive him of any benefits that would otherwise be payable to him under the provisions of any permanent health insurance policy taken out by the Company.

		
	17.
	TERMINATION OF EMPLOYMENT BY THE EXECUTIVE

17.1    The Executive shall have the right to terminate her employment at any time for Good Reason by immediate notice if, following submission of the written notice by the Executive to the Company detailing the events alleged to constitute Good Reason in accordance with this Clause, the Company shall have failed to cure such events within

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the 30 day period following submission of such notice. For purposes of this Agreement, "Good Reason" shall mean (i) a reduction in the Executive's annual base salary or annual bonus opportunity, or the failure to pay or provide the same when due, (ii) a material diminution in the Executive's duties, authority, responsibilities or title, or the assignment to the Executive of duties or responsibilities which are materially inconsistent with her positions, (iii) the removal of the Executive from the position described in Clause 2, (iv) a material change in reporting line (the appointment of a senior executive between the Executive and the CEO would not be considered a material change), (v) the Company's requiring the Executive to be based at any office or location more than fifty (50) miles from the Executive's office as of the date hereof or (vi) any other fundamental breach of this Agreement; provided , however, that no such event(s) shall constitute "Good Reason" unless the Company shall have failed to cure such event(s) within 30 days after receipt by the Company from the Executive of written notice describing in detail such event(s).

17.2    The Executive shall have the right to terminate her employment at any time without Good Reason upon giving 12 months' prior written notice to the Company.

17.3    If the Executive gives notice to terminate her employment without Good Reason under Clause 17.2 or if the Executive seeks to terminate her employment without Good Reason and without the notice required by Clause 17.2 or the Company gives notice to terminate the Executive's employment under Clause 16(i), then provided the Company continues to provide the Executive with the salary and contractual benefits and allows all previously earned incentive awards such as share awards and share options and any awards under any Long Term Incentive plans to continue to vest and pays any annual incentive award due under clause 17.4 the Company has, at its discretion, the right for the period (the "Garden Leave Period") then outstanding until the date of the termination of the Executive's employment:

(a)    to exclude the Executive from any premises of the Company or any Group Company and require the Executive not to attend at any premises of the Company or any Group Company; and/or

		
	(b)
	to require the Executive to carry out no duties; and/or

(c)    to require the Executive not to communicate or deal with any employees, agents, consultants, clients or other representatives of the Company or any other Group Company; and/or

(d)    to require the Executive to resign with immediate effect from any offices he holds with the Company or any other Group Company (and any related trusteeships); and/or

(e)    to require the Executive to take any holiday which has accrued under clause 9 during the Garden Leave Period.

The Executive shall continue to be bound by the duties set out in Clause 4 (insofar as they are compatible with being placed on garden leave), the restrictions set out in Clause
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13.2 and all duties of good faith and fidelity during the Garden Leave Period. For the avoidance of doubt, the Company confirms that the Executive will not be bound by the restrictions as set out in clause 13.2 following the completion of any Garden Leave Period.

17.4    If the Executive is required to take garden leave under clause 17.3 he will during this time (where the Company has served notice to terminate her employment without cause under clause 16(i) but not otherwise) pay to the Executive an annual incentive award equal to the lesser of (x) the target annual incentive award for the year in which notice was served and (y) the average of the annual incentive awards received by the Executive in the prior there years (or if less the number of prior years in which the Executive was employed by the Company) multiplied by a fraction, the numerator of which is the number of days that the Executive was on garden leave and the denominator of which is 365 such award to be paid on the completion of garden leave.

		
	18.
	OBLIGATIONS UPON TERMINATION OF EMPLOYMENT; CERTAIN OTHER TERMINATIONS

18.1    Upon the termination of her employment hereunder for whatever reason the Executive shall:

(a)    deliver up to the Company all keys, credit cards, correspondence, documents, specifications, reports, papers and records (including any computer materials such as discs or tapes) and all copies thereof and any other property (whether or not similar to the foregoing or any of them) belonging to the Company or any other Group Company which may be in her possession or under her control, and (unless prevented by the owner thereof) any such property belonging to others which may be in her possession or under her control and which relates in any way to the business or affairs of the Company or any other Group Company or any supplier, agent, distributor or customer of the Company or any other Group Company, and he shall not without written consent of the Board retain any copies thereof;

(b)    if so requested send to the Company Secretary a signed statement confirming that he has complied with Clause 18.1(a); and

(c)    not at any time make any untrue or misleading oral or written statement concerning the business and affairs of the Company or any other Group Company or represent himself or permit himself to be held out as being in any way connected with or interested in the business of the Company or any other Group Company (except as a former employee for the purpose of communicating with prospective employers or complying with any applicable statutory requirements).

18.2    In the event of a termination of Executive's employment hereunder by the Executive with Good Reason or by the Company without Cause (other than by reason of death), the Executive shall be entitled to (a) salary at her Salary Rate through the date in which his termination occurs; (b) the lesser of (x) the target annual incentive award for

the year in which the Executive's termination occurs or notice is served, and (y) the average of the annual incentive awards received by the Executive in the prior three years whether employed under this Agreement or the Former Agreement (or, if less the number of prior years in which the Executive was employed by the Company), multiplied by a fraction, the numerator of which is the number of days that the Executive was employed from the end of the last financial year in which he received a bonus to the end of her employment and the denominator of which is 365; (c) subject to Clause 18.3 below, the sum of (x) the Executive's highest Salary Rate during the term of this Agreement or the Former Agreement and (y) the lesser of the target annual award incentive/for the year in which Executives termination occurs and the average bonus under the Company's annual incentive plan actually earned by the Executive during the three years (or number of complete years employed by the Company, if fewer) immediately prior to the year of termination, whether employed under this Agreement or the Former Agreement (the sum of (x) and (y) hereafter referred to as the "Severance Payment"), and (d) the unpaid balance of all previously earned cash bonus and other incentive awards with respect to performance periods which have been completed, but which have not yet been paid, whether employed under this Agreement or the Former Agreement, all of which amounts shall be payable in a lump sum in cash within 30 days after her termination.  In the event that the Company terminates the Executive's employment without Cause under the provisions of Clause 16(ii) the parties acknowledge that the Severance Payment will be inclusive of the Executive's rights to be paid in lieu of the 12 months' notice period to which he is entitled under that Clause.

18.3    In the event that the Executive's employment is terminated by the Company without Cause under the provisions of Clause 16(i) and the Company exercises all or any of its rights under Clause 17.3 during the 12 months' notice period, the Severance Payment shall be reduced by a sum equal to the total salary and bonus payments received by the Executive during the Garden Leave Period.

18.4    Benefits.  In the event of a termination of Executive's employment hereunder by the Executive with Good Reason or by the Company without Cause (other than by reason of death) for which (in each case) the Company pays the Executive in lieu of her notice period, the Executive shall be entitled to the value of pension contributions for her notice period, the continuation of membership of the medical plan for up to one year following termination or, if earlier, until he is able to join the medical plan of a future employer and a contribution of £5,000 towards the Executive purchasing insurance for Permanent Health Insurance and Life Insurance to cover the lack of cover between employments.
For the avoidance of doubt, in circumstances where the Executive is on 'Garden Leave' the benefits will continue to apply until her employment is terminated.

18.5    Upon any termination of employment, the Executive shall be entitled to (a) any expense reimbursement due to him and (b) other benefits (if any) in accordance with the applicable plans and programs of the Company, whether the Executive was employed under this Agreement or the Former Agreement at the time on which those expenses or reimbursements became due.

18.6    In the event of any termination of employment under this Agreement, the Executive shall be under no obligation to seek other employment and there shall be no offset against amounts due the Executive under this Agreement on account of any remuneration attributable to any subsequent employment that he may obtain.

		
	19.
	EFFECT OF TERMINATION OF THIS AGREEMENT

19.1    The expiry or termination of this Agreement however arising shall not operate to affect any of the provisions hereof which are expressed to operate or have effect thereafter and shall not prejudice the exercise of any right or remedy of either party accrued  beforehand.

		
	20.
	GENERAL RELEASE

Notwithstanding any provision herein to the contrary, prior to payment of any amount pursuant to Clauses 14.2 and 18.2, the Executive shall execute a valid general release, in the form attached hereto (except to the extent that the Company considers that a change in law or any current practice existing at the date of termination requires a modification  to such release), pursuant to which the Executive shall release the Group and its shareholders, directors, officers, employees and agents, to the maximum extent permitted by law, from any and all claims the Executive may have against the Group that relate to or arise out of the Executive 's employment or termination of employment, except such claims arising under this Agreement.

		
	21.
	OTHER TERMS AND CONDITIONS

21.1    1    Pursuant to the Original Agreement, the following particulars are given in compliance with the requirements of section 1 of the Employment Rights Act 1996:

(a)    The Executive's period of continuous employment which began on the date set out in the Former Agreement, shall be recognised by the Company.

(b)    The Executive 's hours of work shall be the normal hours of work of the Company which are from 9.00 am to 5.00 pm together with such additional hours as may be necessary without additional remuneration for the proper discharge of her duties hereunder to the satisfaction of the Board.

(c)    If the Executive  is dissatisfied with any disciplinary decision or if he has any grievance relating to her employment hereunder he should refer such disciplinary decision or grievance to the Board and the reference will be dealt with by discussion at and decision of a duly convened meeting of the Board.

(d)    A contracting-out certificate is not currently in force in respect of the Executive's employment hereunder.
(e)    Save as otherwise herein provided there are no terms or conditions of employment relating to hours of work or to normal working hours or to

entitlement to holiday (including public holidays) or holiday pay or to incapacity for work due to sickness or injury or to pensions or pension schemes or to requirements to work abroad and no collective agreement has any effect upon the Executive's employment hereunder.

		
	22.
	NOTICES

Any notice to be given hereunder shall be in writing.  Notice to the Executive shall be sufficiently served by being delivered personally to him or be being sent by first class post addressed to him at her usual or last known place of residence, Notice to the Company shall be sufficiently served by being delivered to the Company Secretary or by being sent by first class post to the registered office of the Company.  Any notice if so posted shall be deemed served upon the third day following that on which it was posted.

		
	23.
	PREVIOUS AND OTHER AGREEMENTS

This Agreement shall take effect in substitution for all previous agreements and arrangements (whether written, oral or implied) between the Company and the Executive (including, without limitation, the Original Agreement) relating to her employment which shall be deemed to have been terminated by mutual consent with effect from the commencement  of this Agreement.

		
	24.
	ENTIRE   AGREEMENT/AMENDMENT

This Agreement contains the entire understanding of the parties with respect to the employment of the Executive by the Company. There are no restrictions, agreements, 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 the parties hereto.

		
	25.
	ASSIGNMENT

This Agreement, and all of the Executive's rights and duties hereunder, shall not be assignable or delegable by the Executive. Any purported assignment or delegation by the Executive in violation of the foregoing shall be null and void ab initio and of no force and effect. This Agreement may be assigned by the Company to a person or entity that is the successor in interest to substantially all of the business operations of the Company.
Upon such assignment, the rights and obligations of the Company hereunder shall become the rights and obligations of such successor person or entity. Failure by such successor of the Company to expressly assume this Agreement shall constitute an event of "Good Reason ", entitling Executive to the Benefits set forth in clauses 17, 18.2 or 14.2, as applicable.

16

		
	26.
	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 provisions of this Agreement shall not be affected thereby.

		
	27.
	SUCCESSORS/BINDING AGREEMENT

This Agreement shall inure to the benefit of and be binding upon personal or legal representatives,  executors, administrators, successors, heirs, distributees, devisees and legatees of the parties hereto.

		
	28.
	CO-OPERATION

During employment by the Company and thereafter, the Executive shall provide her reasonable co-operation in connection with any action or proceeding (or any appeal from any action or proceeding) that relates to events occurring during the Executive's employment; provided, however, that after the Executive's employment by the Company has ended, (i) any request for such co-operation shall accommodate the demands of the Executive's then existing schedule and (ii) if any such request will involve more than a de minimis amount of the Executive's time, the Executive shall be entitled to reasonable compensation  therefore.

		
	29.
	GOVERNING  LAW

English law shall apply to this Agreement.

		
	30.
	COUNTERPARTS

This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

IN WITNESS whereof this Agreement has been duly executed and delivered as a deed the day and year first before written.

SIGNED as a Deed    )    /s/ Kate Vacher
and DELIVERED by    )
Kate Vacher                )
in the presence of:    )

Witness Signature:                    /s/ Alastair McKay

Witness Name:                 Alastair McKay

Witness Address:                    [Address intentionally omitted]  
Witness Occupation:                Solicitor
17

ASPEN INSURANCE UK SERVICES LIMITED        

By:    /s/ Chris O'Kane
Chris O'Kane
Chief Executive Officer

18

DATED                                                            

ASPEN INSURANCE UK SERVICES LIMITED (1)

and

KATE VACHER

                    
            
COMPROMISE AGREEMENT

                    

19

THIS AGREEMENT is made as of the    day of    [20[ ]] BETWEEN:
		
	(1)
	ASPEN   INSURANCE   UK   SERVICES   LIMITED, (Registered   in   England   No.

1184193), 30 Fenchurch Street, London EC3M 3BD, England (formerly known as (the "Company "); and

		
	(2)
	Kate Vacher of [address intentionally omitted] (hereinafter referred to as the "Executive").

IT IS AGREED AS FOLLOWS:

		
	1.
	INTERPRETATION

		
	1.
	In this Agreement:

2.  "Group Company" shall mean any holding company of the Company from time to time and any subsidiary of the Company or of any such holding company from time to time. The terms "holding company" and "subsidiary" shall have the meanings ascribed to them by Section 736 of the Companies Act 1985, as amended ; and

3. ''Service Agreement" shall mean the service agreement entered into between the Executive and the Company dated [      ], as subsequently amended.

		
	2.
	TERMINATION  DATE

The Executive's employment with the Company   [will  end][ended]  on   [date]   (the
"Termination  Date").

		
	3.
	PAYMENT OF SALARY ETC

The Company will continue to provide the Executive with her salary and all other contractual benefits up to the Termination Date in the normal way. Within 14 days of the Termination Date the Company will also pay the Executive in respect of her accrued but untaken holiday (less such deductions for income tax and national insurance as are required by law).

		
	4.
	TERMINATION  SUMS

Subject to the Executive agreeing to all of the conditions set out below, and receipt by the Company of a copy of this Agreement signed by the Executive and the attached certificate signed by the Executive's legal adviser, the Company will pay the Executive the following sums:

		
	(i)
	£[appropriate figure to be inserted] in respect of the Executive's entitlement to an annual incentive award for the year in which the termination of the Executive's employment  with the Company  occurs, as calculated  in accordance with Clause

18.2 (b) of the Service Agreement;

		
	(ii)
	the sum of £[appropriate figure to  be inserted] in respect of the Executive's entitlement to a Severance Payment, as calculated and defined in accordance with Clause 18.2(c) of the Service Agreement; and

		
	(iii)
	the sum of £[appropriate figure to be inserted] in respect of the Executive's entitlement to the unpaid balance of all previously earned cash bonus and other incentive awards with respect to performance periods which have been completed as at the Termination Date but not yet paid , as calculated in accordance with Clause 18.2(d) of the Service Agreement.

The sums set out in (i) to (iii) above will be subject to such deductions for income tax and national insurance as are required by law and will be paid to the Executive within [14] days of the date of signature by him of this Agreement and signature by her legal adviser of the attached certificate. Payment will be made by transfer to the Executive's bank account.

		
	5.
	SHARE OPTIONS

[The Company confirms that the extent to which share options and other equity-based awards held by the Executive as at the Termination Date shall be exercisable following the Termination Date will be determined solely in accordance with terms of the agreements under which such share options and other equity-based awards were granted.] or [Other than in relation to share options and other equity-based awards granted to the Executive prior to the date of the Service Agreement which shall vest and be exercisable in accordance with the terms of their grant agreements, the Company confirms that all share options  and other equity-based  awards granted to the Executive  have vested  and
will remain exercisable for the remainder of their terms.] 1
6.    WAIVER OF CLAIMS

The Executive accepts the terms set out in this Agreement in full and final settlement of all and any claims that he has or may have against the Company or any other Group Company or any of its or their current or former shareholders, directors, officers, employees or agents, whether contractual (whether known or unknown, existing now or in the future), statutory or otherwise, arising out of or in connection with her employment with the Company or the termination of her employment. The Executive also agrees to waive irrevocably and release the Company and all Group Companies (and all of its or their current or former shareholders, directors, officers, employees  or agents)  from  and

1  Second alternative to be used in the event of qualifying termination  in connection with a Change of Control under Clause  14.2 of the Service Agreement.

against any claims whether contractual (whether known or unknown, existing now or in the future), statutory or otherwise, arising out of or in connection with her employment with the Company or the termination of her employment. This waiver shall not apply in relation to any claim relating to her pension rights that have accrued up to the Termination Date.

		
	7.
	CONFIRMATION OF NO BREACHES

The Executive confirms and warrants to the Company that he has not at any time during her employment committed a fundamental breach of the terms of the Service Agreement.

		
	8.
	LEGAL ADVICE

The Executive confirms that he has received advice from [name of legal advisor] of [name and address of solicitors ], a relevant independent adviser for the purposes of section 203 of the Employment Rights Act 1996, as to the terms and effect of this Agreement and, in particular, its effect on her ability to pursue her rights before an employment tribunal. The Executive will procure that her legal adviser signs the attached legal adviser's certificate, which forms part of this Agreement.

		
	9.
	SATISFACTION OF STATUTORY CONDITIONS

		
	(a)
	This Agreement satisfies the conditions for regulating compromise agreements under Section 203 of the Employment Rights Act 1996, Regulation 35 of the Working Time Regulations 1998, Section 77 of the Sex Discrimination Act 1975, Section 72 of the Race Relations Act 1976, Section 9 of the Disability Discrimination Act 1995, Regulation 9 of the Part-Time Workers (Prevention of  Less Favourable Treatment) Regulations 2000, Regulation 10 of the Fixed Term Employees (Prevention of Less Favourable Treatment) Regulations 2002, Section 49 of the National Minimum Wage Act 1998, Paragraph 2(2) of Schedule 4 to the Employment Equality (Religion or Belief) Regulations 2003 and Paragraph 2(2) of Schedule 4 to the Employment Equality (Sexual  Orientation) Regulations 2003.

		
	(b)
	The Executive is aware of her rights under the Employment Rights Act 1996,  the Working Time Regulations 1998, the Sex Discrimination Act 1975, the Race Relations Act 1976, the Disability Discrimination Act 1995, the Part-Time Workers (Prevention of Less Favourable Treatment) Regulations 2000, the Fixed Term Employees (Prevention of Less Favourable Treatment) Regulations 2002, the National Minimum Wage Act  1998, the Employment Equality (Religion or Belief) Regulations 2003 and the Employment Equality (Sexual Orientation) Regulations 2003 and has informed the Company of any and all claims that he might seek to bring arising from her employment or termination of employment. This agreement relates to her claims for breach of contract, unfair dismissal, sex discrimination, race discrimination, disability discrimination, sexual orientation discrimination, religion or belief discrimination, any claim under the Working Time Regulations  1998, any claim under the National Minimum Wage Act 1998, the

Part-Time Workers (Prevention of Less Favourable Treatment) Regulations 2000, the Fixed Term Employees (Prevention of Less Favourable Treatment) Regulations 2002 or any claim for unlawful deductions from wages under the Employment Rights Act 1996.

		
	10.
	POST-TERMINATION RESTRAINTS

The Executive acknowledges that the provisions of   Clause 10 (Confidentiality) and Clause 13 (Restrictive Covenants) of the Service Agreement will (to the extent that they are applicable in the circumstances of the termination of the Executive's employment with the Company) remain in full force and effect notwithstanding the termination of her employment.

11.    RETURN OF COMPANY PROPERTY

Before any payment under Clause 4 above is made, the Executive will, in accordance with Clause 18.l(a) of the Service Agreement, deliver up to the Company all vehicles, keys, credit cards, correspondence, documents, specifications, reports, papers and records (including any computer materials such as discs or tapes) and all copies thereof and any other property (whether or not similar to the foregoing or any of them) belonging to the Company or any other Group Company which may be in her possession or under her control, and (unless  prevented by the owner thereof) any such property belonging to others which may be in her possession or under her control and which relates in any way to the business or affairs of the Company or any other Group Company or any supplier, agent, distributor or customer of the Company or any other Group Company, and he confirms that he has not retained any copies thereof.

		
	12.
	CONFIDENTIALITY

Save by reason of any legal obligation or to enforce the terms of this letter, the Executive will not:

		
	(a)
	disclose the existence or terms of  this Agreement to anyone (other than to the Executive's professional advisers, the Inland Revenue or any other competent authority or the Executive's spouse);

		
	(b)
	directly or indirectly disseminate, publish or otherwise disclose (or allow to be disseminated, published or otherwise disclosed) by any means (whether oral, written or otherwise) or medium (including without limitation electronic, paper, radio or television) any information directly or indirectly relating to the termination of the Executive's employment; or

		
	(c)
	make any derogatory or disparaging comments about the Company, any Group Company or any of its or their shareholders, directors, officers, employees or agents.

		
	14.
	NO ADMISSION OF LIABILITY

This agreement is made without any admission on the part of the Company or any Group Company that it has or they have in any way breached any law or regulation or that the Executive has any claims against the Company or any Group Company.

		
	15.
	TAX INDEMNITY

The Executive hereby agrees to be responsible for the payment of any tax and employee's national insurance contributions imposed by any competent taxation authority in respect of any of the payments and benefits provided under this Agreement (other than for the avoidance of doubt, any tax and/or employee's national insurance contributions deducted or withheld by the Company in paying the sums to the Executive). The Executive further agrees to indemnify the Company and all Group Companies and keep them indemnified on an ongoing basis against any claim or demand which is made by any competent taxation authority against the Company or any Group Company in respect of any liability of the Company or any Group Company to deduct an amount of tax or an amount in respect of tax or any employee's national insurance contributions from the payments made and benefits provided under this Agreement, including any related interest or penalties imposed by any competent taxation authority save where such interest or penalties arise as a result of the Company's own default or delay.

		
	16.
	ENTIRE AGREEMENT

This letter sets out the entire agreement between the Executive and the Company and, save as set out in Clauses 5 and 10 above, supersedes all prior arrangements, proposals, representations, statements and/or understandings between the Executive, the Company and any Group Company.

		
	17.
	THIRD PARTY RIGHTS

Notwithstanding the Contracts (Rights of Third Parties) Act 1999 this Agreement may be varied by agreement between the Executive and the Company.

		
	18.
	APPLICABLE LAW

This agreement is subject to English law and the exclusive jurisdiction of the English courts.

                        

Kate Vacher

                        

dated

                        

For and on behalf of Aspen Insurance UK Services Limited

                        

dated

LEGAL ADVISER'S CERTIFICATE

I, [name of solicitor] of [address of firm] hereby confirm to Aspen Insurance UK Services Limited that I am an independent adviser for the purposes of section 203 of the Employment Rights Act 1996 and that I have advised (Name) as to the terms and effect of this Agreement and its effect on her ability to pursue her rights before an employment tribunal. There was in force, when such advice was given, a policy of insurance covering the risk of a claim by (Name) in respect of loss arising in consequence of such advice.

                    

[name of adviser]

                    

dateExhibit

Exhibit 10.4    

CHANGE OF CONTROL EMPLOY MENT AGREEMENT

THIS CHANGE OF CONTROL EMPLOYMENT AGREEMENT (this
"Agreement") by and among Aspen Insurance Holdings Limited, a Bermuda corporation ("Holdings"), Aspen Insurance UK Services Limited, an England Corporation (the “Company") and Kate Vacher (the "Executive") is dated as of the 25th day of February 2015.

The Board of Directors of Holdings (the "Board") and the board of directors or the Company (the "Company Board") have determined that it is in the best interests of Holdings and the Company and its stockholders to assure that Holdings and the Company will have the continued dedication of the Executive, notwithstanding the possibility, threat or occurrence of a Change of Control (as defined below) of Holdings. The Board and the Company Board believe it is imperative to diminish the inevitable distraction of the Executive by virtue of the personal uncertainties and risks created by a pending or Threatened Change of Control and to encourage the Executive's full attention and dedication to Holdings and the Company currently and in the event of any threatened or pending Change of Control, and to provide the Executive with compensation and benefits arrangements upon a Change of Control that ensure that the compensation and benefits expectations of the executive will be satisfied and that are competitive with those of other corporations.  Therefore, in order to accomplish these objectives and in consideration of the Executive's covenants in Section 10, the Board and the Company Board have caused Holdings and the Company to enter into this Agreement.

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

1.     Certain Definitions.  (a)  The "Effective Date" shall mean the first date during the Change of Control Period (as defined in Section l(b)) on which a Change of Control (as defined in Section 2) occurs. Notwithstanding anything in this Agreement to the contrary, if (A) the Executive' s employment with the Company is terminated by  the Company, (B) the Date of Termination is prior to the date on which in Change of Control occurs,, and (C) it is reasonably demonstrated by the Executive that such termination of employment (i) was at the request of a third party that has taken steps reasonably calculated to effect a Change of Control or (ii) otherwise arose in connection with or anticipation of a Change of Control, then for all purposes of this Agreement, the "Effective Date" means the date immediately prior to such Date of Termination.

(b)       The   "Change    of    Control     Period” shall   mean the period commencing on the date hereof and ending on the third anniversary of the date hereof; provided. however, that commencing  on  the  date one year after the date hereof, and on each annual anniversary of such date (such date and each annual anniversary thereof shall be hereinafter referred to as the "Renewal Date"), unless previously terminated, the Change of Control Period shall be automatically extended so as to terminate three years from such Renewal Date, unless at least 60 days prior to the Renewal Date the Company shall  give  notice to the  Executive  that  the  Change  of  Control  Period shall not be so extended.

1

2.     Change of Control. For the purpose of this Agreement, a "Change of Control" shall mean:

(a)      the sale or disposition, in one or a series of related transactions, of all or substantially all of the assets of Holdings to any Person (as such term is used for purposes of Section 13(d) or 14(d) of the U.S. Securities Exchange Act of 1934, as amended, or any successor thereto (the "Exchange Act") or any successor section thereto) or Group (as such term is used for purposes of Section 13(d)(3) or 14(d)(2) of the Exchange Act or any successor section thereto) (other than (i) any subsidiary of Holdings or (ii) any entity that is a holding company of Holdings (other than any holding company that became a holding company in a transaction that resulted in a Change in Control) or any subsidiary of such holding company);

(b) any Person or Group is or becomes the Beneficial Owner (as such term is defined in Rule 13d-3 under the, Exchange Act or any successor role thereto, provided that the term shall include beneficial ownership of all shares that such Person has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly , or more than 30% of the combined voting power of the voting shares of Holdings (or any entity that is the Beneficial Owner of more than 50% of the combined voting power of the voting shares of Holdings), including by way of merger, consolidation, tender or exchange offer or otherwise; excluding, however, the following: (i) any acquisition directly from Holdings, (ii) any acquisition by Holdings, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by Holdings or any corporation controlled by Holdings, or (iv) any acquisition by any business entity pursuant to a transaction which complies with clauses (i), (ii) and (iii) of subsection (c) of this Section 2;

(c)     the consummation of any transaction or series of transactions resulting in a merger, consolidation or amalgamation (a “Business Combination"), in which Holdings is involved, unless following such transaction or series of transactions (i) the shareholders of Holdings immediately prior thereto continue to own (either by remaining outstanding or by being converted into voting securities or the surviving entity), in the same proportion as immediately prior to the transaction(s), more than 50% of the combined voting power of the voting shares of Holdings or such surviving entity outstanding immediately after such Business Combination, (ii) no Person (excluding any business entity resulting from such Business Combination or any employee benefit plan (or related trust) of Holdings or such business entity resulting from such Business Combination) beneficially owns, directly or indirectly, 30% or more of the combined voting power of the voting shares of the resulting business entity except to the extent that such ownership existed prior to the Business Combination and (iii) at least a majority of the members of the board of directors (or equivalent body) of the business entity resulting from such Business Combination were members  of the Incumbent Board at the time or the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or

(d)     a change in the composition or the Board such that the individuals who, as of the date of this Agreement, constitute the Board (such Board shall be referred to for purposes of this subsection (d) as the "Incumbent Board") cease for any reason to constitute at least a majority of the Board; provided, however, that for purposes of this definition, any individual who becomes a member of the Board subsequent to the date or this Agreement, whose election by the Board, or nomination for election by Holding’s shareholders, was approved by a majority of those individuals who are members of the Board and who were also members or the Incumbent Board (or deemed to be such pursuant to this proviso) shall be considered as though such individual were a member of the Incumbent Board; and, provided, further, however, that any such individual whose initial assumption of office occurs as the result of or in connection with either an actual or threatened election contest or other actual or threatened solicitation of proxies or consents by or on behalf of an entity other than the Board shall not be so considered as a member of the Incumbent Board.

2

3.     Employment Period. The Company hereby agrees to continue the Executive in its employ, and the Executive hereby agrees to remain in the employ of the Company subject to the terms and conditions of this Agreement, for the period commencing on the Effective Date and ending on the second anniversary of such date (the ''Employment Period"). The Employment Period shall terminate upon the Executive's termination of employment for any reason.

4.     Terms of Employment. (a) Position and Duties. (i) During the Employment Period, (A) the Executive’s position (including status, offices, titles and reporting requirements), authority, duties and responsibilities shall be at least commensurate in all respect with the most significant of those held, exercised and assigned to the Executive at any time during the 120-day period immediately preceding the Effective Date and (B) the Executive's services shall be performed at the location where the Executive was employed immediately preceding the Effective Date or any office or location less than 35 miles from such location.

(ii)     During the Employment Period, and excluding any periods of vacation and sick leave to which the Executive is entitled, the Executive agrees to devote reasonable attention and time during normal business hours to the business and affairs of the Company and, to the extent necessary to discharge the responsibilities assigned to the Executive hereunder, to use the Executive’s reasonable best efforts to perform faithfully and efficiently such responsibilities.  During the Employment Period it shall not be a violation of this Agreement for the Executive to (A) serve on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill speaking engagements or teach at educational institutions and (C) manage personal investments, so long as such activities do not significantly interfere with the performance of the Executive’s responsibilities as an employee of the Company in accordance with this Agreement.  It is expressly understood and agreed that to the extent that any such activities have been conducted by the Executive prior to the Effective Date, the continued conduct of such activities (or the conduct of activities similar in nature and scope thereto) subsequent to the Effective Date shall not thereafter be deemed to interfere with the performance of the Executive’s responsibilities to the Company.

(b)     Compensation.  (i)  Base Salary.  During the Employment Period, the Executive shall receive an annual base salary (“Annual Base Salary”), that shall be paid at an annual rate, at least equal to 12 times the highest monthly base salary paid or payable, including, without limitation, any base salary that has been earned but deferred, to the Executive by the Company and its affiliated companies in respect of the 12 month period immediately preceding the month in which the Effective Date occurs.  The Annual Base Salary shall be paid at such intervals as the Company pays executive salaries generally.  During the Employment Period, the Annual Base Salary shall be periodically reviewed and increased in the same manner and proportion as the base salaries of other senior executives of the Company and its affiliated companies, but in no event shall such review and adjustment be more than 12 months after the last salary increase awarded to the Executive prior to the Effective Date and thereafter at least annually.  Any increase in Annual Base Salary shall not serve to limit or reduce any other obligation to the Executive under this Agreement.  Annual Base Salary shall not be reduced after any such increase and the term Annual Base Salary as utilized in this Agreement shall refer to Annual Base Salary as so increased.  As used in this Agreement, the term “affiliated companies” shall include any company controlled by, controlling or under common control with the Company.

(ii)     Annual Bonus.  In addition to Annual Base Salary, the Executive shall be awarded, for each fiscal year ending during the Employment Period, an annual bonus (the “Annual Bonus”) in cash at least equal to the average of the annual bonuses paid or payable to Executive in respect of the last three full fiscal years prior to the Effective Date (or, if the Executive was first employed by the Company after the beginning of the earliest of such three fiscal years, the average of the bonuses paid or payable under such plan(s) in respect of the fiscal years ending before the Effective Date during which the Executive was employed by the Company, with such bonus being annualized with respect to any such fiscal year if the Executive was not employed by the Company 

3

for the whole of such fiscal year) (the “Recent Average Bonus”).  If the Executive has not been eligible to earn such a bonus for any period prior to the Effective Date, the “Recent Average Bonus” shall mean the Executive’s target annual bonus for the year in which the Effective Date occurs.  Each such Annual Bonus shall be paid no later than three months after the end of the fiscal year for which the Annual Bonus is awarded, unless the Executive shall elect to defer the receipt of such Annual Bonus.

(iii)      Incentive, Savings and Retirement Plans.  During   the Employment Period, the Executive shall be entitled to participate in all incentive, savings and retirement plans, practices, policies and programs applicable generally to other peer executives of the Company and its affiliated companies, but in no event shall such plans, practices, policies and programs provide the Executive with incentive  opportunities (measured with respect to both regular and special incentive opportunities,  to the extent, if any, that such distinction is applicable), savings opportunities and  retirement benefit opportunities, in each case, less favorable, in the aggregate, than the most favorable of those provided by the Company and its affiliated companies for the Executive under such plans, practices, policies and programs as in effect at any time during the 120-day period immediately preceding the Effective Date or if more favorable to the Executive, those provided generally at any time after the Effective Date to other peer executives of the Company and its affiliated companies.

      (iv)  Welfare and Insurance Benefit Plans. During the Employment Period, the Executive and/or the Executive’s family, as the case may be, shall be eligible for participation in and shall receive all benefits under welfare and insurance benefit plans,, practices, policies and programs provided by the Company and its affiliated companies (including, without limitation, medical, prescription, dental, disability, salary continuance, employee life, group life, accidental death and travel accident insurance plans and programs) ("Company Welfare Benefit Plans") to the extent applicable generally to other peer executives of the Company and its affiliated companies, but if the Company Welfare Benefit Plans provide the Executive with benefits that are less favorable, in the aggregate, than the most favorable of such plans, practices, policies and programs in effect for the Executive at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to Executive, those provided generally at any time after the Effective Date (the "Former Company Welfare Benefit Plans"), the Company shall provide the Executive with supplemental arrangements (such as individual insurance coverage purchased by the Company for the Executive) such that the Company Welfare Benefit Plans together with such supplemental arrangements provide the Executive with benefits that are at least as favorable, in the aggregate, as those provided by the Former Company Welfare Benefit Plans.

     (v) Expenses.  During the Employment Period, the Executive shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by the Executive in accordance with the most favorable policies, practices and procedures of the Company and its affiliated companies in effect for the Executive at any time during the 120‐day period immediately preceding the Effective Date or, if more favorable to the Executive, as in effect generally at any time thereafter with respect to other peer executives of the Company and its affiliated companies.
 
             (vi) Fringe Benefits.  During the Employment Period, the Executive shall be entitled to fringe benefits, including, without limitation, tax and financial planning services, payment of club dues, and, if applicable, use of an automobile and payment of related expenses, in accordance with the most favorable plans, practices, programs and policies of the Company and its affiliated companies in effect for the Executive at any time during the 120‐day period immediately preceding the Effective Date or, if more favorable to the Executive, as in effect generally at any time thereafter with respect to other executives of the Company and its affiliated companies.  

          (vii) Office and Support Staff.  During the Employment Period, the Executive shall be entitled to an office or offices of a size and with furnishings and other appointments, and to personal secretarial and other assistance, at least equal to the most favorable of the foregoing provided to the Executive by the Company and its affiliated companies at any time during the 120‐day period immediately preceding the Effective Date or, if more favorable to the Executive, as provided generally at any time thereafter with respect to other peer executives of the Company and its affiliated companies.

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             (viii) Vacation.  During the Employment Period, the Executive shall be entitled to paid vacation, in each case in accordance with the most favorable plans, policies, programs and practices of the Company and its affiliated companies as in effect for the Executive at any time during the 365‐day period immediately preceding the Effective Date or, if more favorable to the Executive, as in effect generally at any time thereafter with respect to other peer executives of the Company and its affiliated companies.

5. Termination of Employment.  (a)  Death or Disability.  The Executive’s employment shall terminate automatically upon the Executive’s death during the Employment Period.  If the Company determines in good faith that the Disability of the Executive has occurred during the Employment Period (pursuant to the definition of Disability set forth below), it may give to the Executive written notice in accordance with Section 12(b) of this Agreement of its intention to terminate the Executive’s employment.  In such event, the Executive’s employment with the Company shall terminate effective on the 30th day after receipt of such notice by the Executive (the “Disability Effective Date”), provided that, within the 30 days after such receipt, the Executive shall not have returned to full‐time performance of the Executive’s duties.  For purposes of this Agreement, “Disability” shall mean the absence of the Executive from the Executive’s duties with the Company on a full‐time basis for 180 consecutive business days (or for 180 business days in any consecutive 365 days) as a result of incapacity due to mental or physical illness that is determined to be total and permanent by a physician selected by the Company or its insurers and acceptable to the Executive or the Executive’s legal representative.

(b) Cause. The Company may terminate the Executive’s employment during the Employment Period with or without Cause.  For purposes of this Agreement, “Cause” shall mean:

(i)     the willful and continued failure of the Executive to perform substantially the Executive’s duties with the Company or one of its affiliated companies (other than any such failure resulting from incapacity due to physical or mental illness or following the Executive’s delivery of a Notice of Termination for Good Reason), after a written demand for substantial performance is delivered to the Executive by the Board or the Chief Executive Officer of the Company that specifically identifies the manner in which the Board or Chief Executive Officer of the Company believes that the Executive has not substantially performed the Executive’s duties, or

(ii)     the willful engaging by the Executive in illegal conduct or gross misconduct that is materially and demonstrably injurious to the Company. 

For purposes of this provision, no act or failure to act, on the part of the Executive, shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best interests of the Company and its affiliated companies.  Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board, or if Holdings is not the ultimate parent entity of the Company and is not publicly traded, the board of directors (or, for a non-corporate entity, equivalent governing body) of the ultimate parent of the Company (the “Applicable Board”) or upon the instructions of the Chief Executive Officer of Holdings or the Company or a senior officer of the Company and its affiliated companies or based upon the advice of counsel for the Company and its affiliated companies shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company and its affiliated companies.  The cessation of employment of the Executive shall not be deemed to be for Cause unless and until there shall have been delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters of the entire membership of the Applicable Board (excluding the Executive if the Executive is a member of the Applicable Board) at a meeting of the Applicable Board called and held for such purpose (after reasonable notice is provided to the Executive and the Executive is given an opportunity, together with counsel for the Executive, to be heard before the Applicable Board), finding that, in the good faith opinion of the Applicable Board, the Executive is guilty of the conduct described in subparagraph (i) or (ii) above, and specifying the particulars thereof in detail.

(c)    Good Reason.  The Executive’s employment may be terminated during the Employment Period by the Executive for Good Reason or by the Executive voluntarily without Good Reason.  “Good Reason” means actions taken by the Company resulting in a 

5

negative change in the employment relationship.  For these purposes, a “negative change in the employment relationship” shall include, without limitation:

(i) the assignment to the Executive of duties inconsistent with the Executive’s position (including status, offices, titles and reporting requirements), authority, duties or responsibilities as contemplated by Section 4(a), or a diminution in such position, authority, duties or responsibilities or a diminution in the budget over which the Executive retains authority;  

(ii) a diminution in the authorities, duties or responsibilities of the person to whom the Executive is required to report, including, without limitation and where relevant, a requirement that the Executive report to an officer or employee instead of reporting directly to the Applicable Board;

(iii) a reduction of (A) any element of the compensation and benefits required to be provided to the Executive in accordance with any of the provisions of Section 4(b)(i) through 4(b)(iv); (B) the Executive’s aggregate annual cash compensation, that for this purpose shall include, without limitation, Base Salary and Annual Bonus; or (C) the benefits, in the aggregate, required to be provided to the Executive in accordance with the provisions of this Agreement;  

(iv) the Company’s requiring the Executive (A) to be based at any office or location other than as provided in Section 4(a)(i)(B) resulting in an increase in the Executive commute to and from the Executive’s primary residence or (B) to be based at a location other than the principal executive offices of the Company if the Executive was employed at such location immediately preceding the Effective Date; or

(v) any other action or inaction that constitutes a breach by the Company of this Agreement, including, without limitation, any failure by the Company to comply with and satisfy Section 11(c).

In order to invoke a termination for Good Reason, the Executive shall provide written notice to the Company of the existence of one or more of the conditions described in clauses (i) through (v) within 90 days following the Executive’s knowledge of the initial existence of such condition or conditions, specifying in reasonable detail the conditions constituting Good Reason, and the Company shall have 30 days following receipt of such written notice (the “Cure Period”) during which it may remedy the condition.  In the event that the Company fails to remedy the condition constituting Good Reason during the applicable Cure Period, the Executive may terminate employment for Good Reason at any time thereafter.  The Executive’s mental or physical incapacity following the occurrence of an event described above in clauses (i) through (v) shall not affect the Executive’s ability to terminate employment for Good Reason and the Executive’s death following delivery of a Notice of Termination for Good Reason shall not affect the Executive’s estate’s entitlement to severance payments benefits provided hereunder upon a termination of employment for Good Reason.

(d) Incapacity.  The Executive’s mental or physical incapacity following the occurrence of an event described above in clauses (i) through (v) of Section 5(c) shall not affect the Executive’s ability to terminate employment for Good Reason and the Executive’s death following delivery of a Notice of Termination for Good Reason shall not affect the entitlement of the estate of the Executive to severance payments or benefits provided hereunder upon a termination of employment for Good Reason.

(e) Notice of Termination.  Any termination of employment by the Company for Cause, or by the Executive for Good Reason, shall be communicated by Notice of Termination to the other party hereto given in accordance with Section 12(b) of this Agreement.  For purposes of this Agreement, a “Notice of Termination” means a written notice that (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated and (iii) if the Date of Termination (as defined below) is other than the date of receipt of such notice, specifies the Date of Termination, which date shall be not more than 30 days after the giving of such notice (subject to the Company’s right to cure in the case of a resignation for Good Reason).  The failure by the Executive or the Company to set forth in the Notice of Termination any fact or circumstance that contributes to a showing of Good Reason or Cause shall not waive any right of the Executive or the Company, 

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respectively, hereunder or preclude the Executive or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive’s or the Company’s rights hereunder.

(f) Date of  Termination.  “Date of Termination” means (i) if the Executive’s employment is terminated by the Company for Cause, or by the Executive for Good Reason, the date of receipt of the Notice of Termination or any later date specified therein, as the case may be, (ii) if the Executive’s employment is terminated by the Company other than  for Cause or Disability, the date on which the Company notifies the Executive of such termination, (iii) if the Executive resigns without Good Reason, the date on which the Executive notifies the Company of such termination and (iv) if the Executive’s employment is terminated by reason of death of the Executive or the Disability Effective Date, as the case may be.

                 6. Obligations of the Company upon Termination.  (a)  By the Executive for Good Reason; By the Company Other Than for Cause, Death or Disability. If, during the Employment Period, the Company shall terminate the Executive’s employment other than for Cause, Death or Disability or the Executive shall terminate employment for Good Reason:

(i) the Company shall pay to the Executive in a lump sum in cash within 30 days after the Date of Termination the aggregate of the following amounts:
    
(A) the sum of (1) the Executive’s Annual Base Salary through the Date of Termination to the extent not theretofore paid, (2) the Executive’s business expenses that are reimbursable pursuant to Section 4(b)(v) but have not been reimbursed by the Company as of the Date of Termination; (3) the Executive’s Annual Bonus for the fiscal year immediately preceding the fiscal year in which the Date of Termination occurs, if such bonus has been determined but not paid as of the Date of Termination; (4) any accrued vacation pay to the extent not theretofore paid (the sum of the amounts described in subclauses (1), (2), (3) and (4), the “Accrued Obligations”) and (5) an amount equal to the product of (x) the Recent Average Bonus and (y) a fraction, the numerator of which is the number of days in the current fiscal year through the Date of Termination, and the denominator of which is 365 (the “Pro Rata Bonus”); provided that notwithstanding the foregoing, if the Executive has made an election to defer any portion of the Annual Base Salary or the Annual Bonus described in clauses (1) or (3) above, then for all purposes of this Section 6 (including, without limitation, Sections 6(b) through 6(d)), such deferral election, and the terms of the applicable arrangement shall apply to the same portion of the amount described in such clause (1) or clause (3), and such portion shall not be considered as part of the “Accrued Obligations” but shall instead be an “Other Benefit” (as defined below); and 

(B) the amount equal to the product of (1) one and one half and (2) the sum of (x) the Executive’s Annual Base Salary and (y) the Recent Average Bonus;

(ii) all share options and other equity-based awards held by the Executive immediately shall vest and (in the case of share options) remain exercisable for the remainder of their terms, and any performance conditions relating to those share options or other equity-based awards shall be deemed to have been satisfied at the greater of target performance levels and actual performance (annualized for the full performance period) as of the Date of Termination; 

(iii) the Company shall provide the Executive with the additional contributions that would have been made on the Executive’s behalf in the pension and retirement plans of the Company and its affiliated companies in which the Executive participates, plus the additional amount of any benefit the Executive would have accrued under any excess or  supplemental retirement plan of the Company and its affiliated companies in which the Executive participates, in each case, that the Executive would have received if the Executive’s employment had continued for 12 months after the Date of Termination; provided, however, if any contribution or participation limits would prevent the Executive from receiving the full value of the benefits contemplated hereunder, any portion of the benefits that cannot be provided under the applicable benefit plans shall instead be paid in a lump sum in cash within 30 days after the Date of Termination;

(iv) the Executive shall be permitted to continue participating in the medical plan of the Company and its affiliated companies in which the Executive participated as of the Date of Termination for 12 months after the Date of Termination; provided, however, if any participation limits would prevent the Executive from receiving the benefits contemplated hereunder, the Executive shall instead receive an amount equal to the cost of premiums for 

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continued participation in the medical plan of the Company and its affiliated companies with respect to the maximum level of coverage in effect for the Executive and his or her spouse and dependents on the Date of Termination for 12 months after the Date of Termination, which amount shall be paid in a lump sum in cash within 30 days after the Date of Termination;

(v) the Company shall, at its sole expense as incurred, provide the Executive with outplacement services the scope and provider of which shall be selected by the Executive in the Executive’s sole discretion, but the cost thereof shall not exceed $40,000; provided, further, that such outplacement benefits shall end not later that the last day of the second calendar year that begins after the Date of Termination;
and
(vi) except as otherwise set forth in the last sentence of Section 7, to the extent not theretofore paid or provided, the Company shall timely pay or provide to the Executive any other amounts or benefits required to be paid or provided or that the Executive is eligible to receive under any plan, program, policy or practice or contract or agreement of the Company and its affiliated companies (such other amounts and benefits shall be hereinafter referred to as the “Other Benefits”) in accordance with the terms of the underlying plans or agreements.

(b) Death. If the Executive’s employment is terminated by reason of the Executive’s death during the Employment Period, the Company shall provide the Executive’s estate or beneficiaries with the Accrued Obligations and the Pro Rata Bonus and the timely payment or delivery of the Other Benefits, and shall have no other severance obligations under this Agreement.  The Accrued Obligations (subject to the proviso set forth in Section 6(a)(1)(A) to the extent applicable) and the Pro Rata Bonus shall be paid to the Executive’s estate or beneficiary, as applicable, in a lump sum in cash within 30 days of the Date of Termination.  With respect to the provision of the Other Benefits, the term “Other Benefits” as utilized in this Section 6(b) shall include, without limitation, and the Executive’s estate and/or beneficiaries shall be entitled to receive, benefits (either pursuant to a plan, program, practice or policy or an individual arrangement) at least equal to the most favorable benefits provided by the Company and the affiliated companies to the estates and beneficiaries of peer executives of the Company and such affiliated companies under such plans, programs, practices and policies relating to death benefits, if any, as in effect with respect to other peer executives and their beneficiaries at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to the Executive’s estate and/or the Executive’s beneficiaries, as in effect on the date of the Executive’s death with respect to other peer executives of the Company and its affiliated companies and their beneficiaries.

(c) Disability.  If the Executive’s employment is terminated by reason of the Executive’s Disability during the Employment Period, the Company shall provide the Executive with the Accrued Obligations and Pro Rata Bonus and the timely payment or delivery of the Other Benefits in accordance with the terms of the underlying plans or agreements, and shall have no other severance obligations under this Agreement.  The Accrued Obligations (subject to the proviso set forth in Section 6(a)(1)(A) to the extent applicable) and the Pro Rata Bonus shall be paid to the Executive in a lump sum in cash within 30 days of the Date of Termination.  With respect to the provision of the Other Benefits, the term “Other Benefits” as utilized in this Section 6(c) shall include, and the Executive shall be entitled after the Disability Effective Date to receive, without limitation, disability and other benefits (either pursuant to a plan, program, practice or policy or an individual arrangement) at least equal to the most favorable of those generally provided by the Company and the affiliated companies to Disabled executives and/or their families in accordance with such plans, programs, practices and policies relating to disability, if any, as in effect generally with respect to other peer executives and their families at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to the Executive and/or the Executive’s family, as in effect at any time thereafter generally with respect to other peer executives of the company and the affiliated companies and their families. 

(d) Cause; Other than for Good Reason.   If the Executive’s employment is terminated for Cause during the Employment Period, the Company shall provide the Executive with the Executive’s Annual Base Salary (subject to the proviso set forth in Section 6(a)(1)(A) to the extent applicable) through the Date of Termination, and the timely payment or delivery of the Other Benefits, and shall have no other severance obligations under this Agreement.  If the Executive voluntarily terminates employment during the Employment Period, excluding a termination for Good Reason, the Company shall provide to the Executive the Accrued Obligations and the Pro Rata Bonus and the timely payment or delivery of the Other Benefits and shall have no other severance obligations under this Agreement.  In such case, all the Accrued 

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Obligations (subject to the proviso set forth in Section 6(a)(1)(A) to the extent applicable) and the Pro Rata Bonus shall be paid to the Executive in a lump sum in cash within 30 days of the Date of Termination.  
    
7. Non‐exclusivity of Rights.  Nothing in this Agreement shall prevent or limit the Executive’s continuing or future participation in any plan, program, policy or practice provided by the Company or any of its affiliated companies and for which the Executive may qualify, nor, subject to Section 12(f), shall anything herein limit or otherwise affect such rights as the Executive may have under any other contract or agreement with the Company or any of its affiliated companies.  Amounts that are vested benefits or that the Executive is otherwise entitled to receive under any plan, policy, practice or program of or any contract or agreement with the Company or any of its affiliated companies at or subsequent to the Date of Termination shall be payable in accordance with such plan, policy, practice or program or contract or agreement except as explicitly modified by this Agreement.  Without limiting the generality of the foregoing, the Executive’s resignation under this Agreement with or without Good Reason, shall in no way affect the Executive’s ability to terminate employment by reason of the Executive’s “retirement” under any compensation and benefits plans, programs or arrangements of the affiliated companies, including, without limitation, any retirement or pension plans or arrangements or to be eligible to receive benefits under any compensation or benefit plans, programs or arrangements of the Company or any of its affiliated companies, including, without limitation, any retirement or pension plan or arrangement of the Company or any of its affiliated companies  or substitute plans adopted by the Company or its successors, and any  termination that otherwise qualifies as Good Reason shall be treated as such even if it is also a “retirement” for purposes of 
any such plan.  Notwithstanding the foregoing, if the Executive receives payments and benefits pursuant to Section 6(a) of this Agreement, the Executive shall not be entitled to any severance pay or benefits under any severance plan, program or policy of the Company and the affiliated companies, unless otherwise specifically provided therein in a specific reference to this Agreement.

8. Full Settlement; Legal Fees. (a) Full Settlement. The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set‐off, counterclaim, recoupment, defense or other claim, right or action that the Company may have against the Executive or others.  In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement and such amounts shall not be reduced whether or not the Executive obtains other employment.

(b) Legal Fees. The company agrees to pay as incurred (within 10 days following the Company’s receipt of an invoice from the Executive), at any time from the Effective Date through the Executive’s remaining lifetime (or, if longer, through the 20th anniversary of the Effective Date) to the full extent permitted by law, all legal fees and expense that the Executive may reasonably incur as a result of any contest regardless of the outcome thereof) by the Company, the Executive or others of the validity or enforceability of, or liability under, any provision of this 
Agreement or any guarantee of performance thereof whether such contest is between the Company and the Executive or between either of them and any third party, and (including, without limitation, as a result of any contest by the Executive about the amount of any payment pursuant to this Agreement), plus in each case interest on any delayed payment at the applicable U.S. federal rate provided for in Section 7872(f)(2)(A) of the Internal Revenue code of 1986, as amended, determined as of the date such legal fees and expenses were incurred.

9. Confidential Information. The Executive shall hold in a fiduciary capacity for the benefit of the Company all secret or confidential information, knowledge or data relating to the Company or any of its affiliated companies, and their respective businesses, which shall have been obtained by the Executive during the Executive’s employment by the Company or any of its affiliated companies and which shall not be or become public knowledge (other than by acts by the Executive or representatives of the Executive in violation of this Agreement).  After termination of the Executive’s employment with the Company, the Executive shall not, without the prior written consent of the Company or as may otherwise be required by law or legal process, communicate or divulge any such information, knowledge or data to anyone other than the Company and those persons designated by it. In no event shall an asserted violation of the provisions of this Section 10 constitute a basis for deferring or withholding any amounts otherwise payable to the Executive under this Agreement, but the Company otherwise shall be entitled to all other remedies that may be available to it at law or equity.

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10. Successors. (a)  This Agreement is personal to the Executive and without the prior written consent of the Company shall not be assignable by the Executive other than by will or the laws of descent and distribution.  This Agreement shall inure to the benefit of and be enforceable by the Executive’s legal representatives.
    
(b) This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.  Except as provided in Section 11(c), without the prior written consent of the Executive, this Agreement shall not be assignable by the Company.

(c) The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.  As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise.

11. Miscellaneous.  (a)  Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the United Kingdom, without reference to principles of conflict of laws.  The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.  This Agreement may not be amended or modified other than by a written agreement executed by the parties hereto or their respective successors and legal representatives.

(b) Notices.  All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

If to the Executive:

                      To the most recent address for the Executive on file with the Company;

                      If to Holdings or the Company:

                      Aspen Insurance Holdings Ltd
                      30 Fenchurch Street
                      London EC3M 3BD
                      ENGLAND
                      Attention:  General Counsel

or to such other address as either party shall have furnished to the other in writing in accordance herewith.  Notice and communications shall be effective when actually received by the addressee.

(c) Enforceability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

(d) Tax Withholding.  The Company may withhold from any amounts payable under this Agreement such national, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation.

(e) Waiver.  The Executive’s or the Company’s failure to insist upon strict compliance with any provision hereof or any other provision of this Agreement or the failure to assert any right the Executive or the Company may have hereunder, including, without limitation, the right of the Executive to terminate employment for Good Reason pursuant to Section 5(c)(i)‐(v) of this Agreement, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement.

(f) Current agreement.  The Executive and the Company acknowledge that prior to the Effective Date, the Executive’s employment shall continue to be governed by the existing written agreement between the Executive and the Company.  From and after the Effective Date, except as specifically provided herein, this Agreement shall supersede any other employment agreement between the parties.  

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(g) Indemnification. Holdings and the Company shall indemnify the Executive and hold him harmless to the fullest extent permitted by law and under the charter and bye-laws of Holdings and the Company (including the advancement of expenses) against, and with respect to, any and all actions, suits, proceedings, claims, demands, judgments, costs, expenses (including reasonable attorney fees), losses and damages resulting from the Executive’s good faith performance of his duties and obligations with Holdings and the Company and their affiliated companies.

12.  Survivorship. Upon the expiration or other termination of this Agreement or the Executive’s employment, the respective rights and obligations of the parties hereto shall survive to the extent necessary to carry out the intentions of the parties under this Agreement.

[Remainder of page intentionally left blank]

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IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the authorization from the Board and the Company Board, Holdings and the Company have caused this Agreement to be executed in its name on its behalf, all as of the day and year first above written.

ASPEN INSURANCE HODINGS LIMITED

By:    /s/ Patricia Roufca
    
Name:    Patricia Roufca
Title:    Group Head of Legal, Associate Group General Counsel and Company Secretary
            

ASPEN INSURANCE UK SERVICES LIMITED

            
By:    /s/ Chris O'Kane

Name:    Christopher O'Kane
Title:    Director

KATE VACHER

/s/ Kate Vacher

            

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