Document:

EX-10.3

Exhibit 10.3

13 May 2008

Mr R Houghton

[Address]

Dear Richard,

Amendment to Term and Conditions of Employment

Further to your conversation with Chris O’Kane and in line with the recent change in your
responsibilities, this letter confirms the action taken by the Compensation Committee on April
29th 2008 to increase your salary to £350,000 per annum. This change is effective from
1st May 2008.

All other terms and conditions remain the same.

You will appreciate that salary information is confidential to yourself and the Company.

Yours sincerely

	 	 	 	 	 
	 	 	 
	/s/ Chris Woodman
 	 	 
	Chris Woodman 	 	 
	Group Head of Human ResourcesEX-10.4

Exhibit 10.4

Execution Version

ASPEN INSURANCE HOLDINGS LIMITED

PERFORMANCE SHARE AWARD AGREEMENT

          THIS AGREEMENT (the “Agreement”), is made effective as of the 2nd day of May, 2008
(hereinafter called the “Date of Grant”), between Aspen Insurance Holdings Limited, a Bermuda
corporation (hereinafter called the “Company”), and                      (hereinafter called the
“Participant”):

RECITALS:

          WHEREAS, the Company has adopted the Aspen Insurance Holdings 2003 Share Incentive Plan, as
amended from time to time (the “Plan”), which Plan is incorporated herein by reference and made a
part of this Agreement. Capitalized terms not otherwise defined herein shall have the same
meanings as in the Plan; and

          WHEREAS, the Committee has determined that it would be in the best interests of the Company
and its shareholders to grant the performance shares provided for herein to the Participant
pursuant to the Plan and the terms set forth herein.

          NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties
agree as follows:

	1.	 	Grant of Performance Shares. The Company hereby awards to the Participant                
Shares, payment of which is dependent upon the performance of the Company as described in
Section 2 of this Agreement (the “Performance Shares”).
	 
	2.	 	Vesting. The Performance Shares shall vest and become payable only to the extent
that the Return on Equity (calculated as described in Section 2(a) below, the “ROE”) and the
service requirements described below are achieved.

	 	(a)	 	For purposes of this Agreement, “ROE” shall be equal to net income determined
under United States Generally Accepted Accounting Principles (“US GAAP”) after
deduction of the cost of all Awards granted under the Plan as a percentage of weighted
average shareholders’ equity, which shall be determined by the Board based on the
Company’s audited financials under US GAAP.
	 
	 	(b)	 	For purposes of this Agreement, “2008 ROE” shall be equal to the Company’s
actual ROE for the fiscal year ended December 31, 2008 (the “2008 Fiscal Year”).
	 
	 	(c)	 	For purposes of this Agreement, “2009 ROE” shall be equal to the Company’s
actual ROE for the fiscal year ended December 31, 2009 (the “2009 Fiscal Year”).
	 
	 	(d)	 	For purposes of this Agreement, “2010 ROE” shall be equal to the Company’s
actual ROE for the fiscal year ended December 31, 2010 (the “2010 Fiscal Year”).

 

 

	 	(e)	 	Subject to the Participant’s continued Employment with the Company (which
Employment shall not include the performance of services under a notice of termination
or resignation), a maximum of one-third (1/3) of the Performance Shares awarded
hereunder (the “2008 ROE Award”) shall be eligible for vesting (“Eligible Shares”) upon
the later of (i) the date the Company’s outside auditors complete the audit of the
Company’s financial statements containing the information necessary to compute the
Company’s ROE for the 2008 Fiscal Year or (ii) the date such ROE is approved by the
Board of Directors or an authorized committee thereof, but only to the extent provided
below:

	 	 	 
	2008 ROE	 	Percentage of Eligible Shares
	< 10%
	 	0%
	10%
	 	10%
	15%
	 	100%
	3 25%
	 	200%

Interim percentages to be pro-rated.

Notwithstanding the foregoing, if the Company’s actual ROE for the 2008 Fiscal Year
is (i) less than 10%, then none of the Performance Shares subject to the 2008 ROE
Award shall be Eligible Shares, (ii) greater than 15% and the average ROE over the
2008 Fiscal Year and the immediately preceding fiscal year is less than 10%, then
the Percentage of Eligible Shares shall be 100%; or (iii) greater than 15% and the
average ROE over the 2008 Fiscal Year and the immediately preceding fiscal year is
10% or greater, then the Percentage of Eligible Shares shall be in accordance with
the table above.

	 	(f)	 	Subject to the Participant’s continued Employment with the Company (which
Employment shall not include the performance of services under a notice of termination
or resignation), a maximum of one-third (1/3) of the Performance Shares awarded
hereunder (the “2009 ROE Award”) shall become Eligible Shares upon the later of (i) the
date the Company’s outside auditors complete the audit of the Company’s financial
statements containing the information necessary to compute the Company’s ROE for the
2009 Fiscal Year or (ii) the date such ROE is approved by the Board of Directors or an
authorized committee thereof, but only to the extent provided below:

	 	 	 
	2009 ROE	 	Percentage of Eligible Shares
	< 10%
	 	0%
	10%
	 	10%
	15%
	 	100%
	3 25%
	 	200%

Interim percentages to be pro-rated.

 

 

Notwithstanding the foregoing, if the Company’s actual ROE for the 2009 Fiscal Year
is (i) less than 10%, then none of the Performance Shares subject to the 2009 ROE
Award shall be Eligible Shares, (ii) greater than 15% and the average ROE over the
2009 Fiscal Year and the 2008 Fiscal Year is less than 10%, then the Percentage of
Eligible Shares shall be 100%; or (iii) greater than 15% and the average ROE over
the 2009 Fiscal Year and the 2008 Fiscal Year is 10% or greater, then the Percentage
of Eligible Shares shall be in accordance with the table above.

	 	(g)	 	Subject to the Participant’s continued Employment with the Company (which
Employment shall not include the performance of services under a notice of termination
or resignation), a maximum of one-third (1/3) of the Performance Shares awarded
hereunder (the “2010 ROE Award”) shall become Eligible Shares upon the later of (i) the
date the Company’s outside auditors complete the audit of the Company’s financial
statements containing the information necessary to compute the Company’s ROE for the
2010 Fiscal Year or (ii) the date such ROE is approved by the Board of Directors or an
authorized committee thereof, but only to the extent provided below:

	 	 	 
	2010 ROE	 	Percentage of Eligible Shares
	< 10%
	 	0%
	10%
	 	10%
	15%
	 	100%
	3 25%
	 	200%

Interim percentages to be pro-rated.

Notwithstanding the foregoing, if the Company’s actual ROE for the 2010 Fiscal Year
is (i) less than 10%, then none of the Performance Shares subject to the 2010 ROE
Award shall be Eligible Shares, (ii) greater than 15% and the average ROE over the
2010 Fiscal Year and the 2009 Fiscal Year is less than 10%, then the Percentage of
Eligible Shares shall be 100%; or (iii) greater than 15% and the average ROE over
the 2010 Fiscal Year and the 2009 Fiscal Year is 10% or greater, then the Percentage
of Eligible Shares shall be in accordance with the table above.

	 	(h)	 	Subject to the Participant’s continued Employment with the Company (which
Employment shall not include the performance of services under a notice of termination
or resignation), all Eligible Shares shall become vested upon the later of (i) the date
the Company’s outside auditors complete the audit of the Company’s financial statements
containing the information necessary to compute the Company’s ROE for the 2010 Fiscal
Year or (ii) the date such ROE is approved by the Board of Directors or an authorized
committee thereof.
	 
	 	(i)	 	In connection with any event described in Section 10(a) of the Plan or in the
event of a change in applicable accounting rules, the Committee shall make such
adjustments in the terms of the Performance Shares as it shall determine shall be

 

 

	 	 	 	necessary to equitably reflect such event in order to prevent dilution or
enlargement of the potential benefits of the Performance Shares. The Committee’s
determination as to any such adjustment shall be final.

	 	(j)	 	If the Participant’s Employment with the Company is terminated for any reason,
the Performance Shares shall, to the extent not then vested, be canceled by the Company
without consideration.
	 
	 	(k)	 	Any Performance Shares that do not become Eligible Shares by reason of the
Company’s failure to achieve an ROE as set forth above shall immediately be forfeited
without consideration.

	3.	 	Payment.

	 	(a)	 	The Company shall deliver to the Participant one Share for each vested
Performance Share. Any fractional share will be rounded down to the nearest whole
Share and the remainder forfeited.
	 
	 	(b)	 	Except as otherwise provided in the Plan, vested Performance Shares shall be
paid to the Participant as soon as practicable after the date such Performance Shares
become vested, but in no event later than the fifteenth (15th) day of the
third (3rd) month following the end of the fiscal year in which the
Performance Shares become vested.
	 
	 	(c)	 	When Performance Shares are paid, the Company shall issue certificates in the
Participant’s name for such. However, the Company shall not be liable to the
Participant for damages relating to any delays in issuing the certificates to him, any
loss of the certificates, or any mistakes or errors in the issuance of the certificates
or in the certificates themselves.

	4.	 	No Right to Continued Employment. The granting of the Performance Shares evidenced
hereby and this Agreement shall impose no obligation on the Company or any Affiliate to
continue the Employment of the Participant and shall not lessen or affect the Company’s or its
Affiliate’s right to terminate the Employment of such Participant.
	 
	5.	 	Legend on Certificates. The certificates representing the Shares paid in settlement
of Performance Shares shall be subject to such stop transfer orders and other restrictions as
the Committee may deem advisable under the Plan or the rules, regulations, and other
requirements of the U.S. Securities and Exchange Commission, any stock exchange upon which
such Shares are listed, and any applicable laws, and the Committee may cause a legend or
legends to be put on any such certificates to make appropriate reference to such restrictions.
	 
	6.	 	Transferability. The Performance Shares may not be assigned, alienated, pledged,
attached, sold or otherwise transferred or encumbered by the Participant otherwise than by
will or by the laws of descent and distribution, and any such purported assignment,
alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable
against the Company or any Affiliate; provided that the designation of a beneficiary shall not
constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance. For
avoidance of doubt, Shares issued to the Participant in payment of vested Performance Shares
pursuant to Section 3 hereof shall not be subject

 

 

	 	 	to any of the foregoing transferability restrictions.

	7.	 	Withholding. The Participant may be required to pay to the Company or any Affiliate
and the Company shall have the right and is hereby authorized to withhold, any applicable
withholding taxes in respect of Performance Shares and to take such other action as may be
necessary in the opinion of the Committee to satisfy all obligations for the payment of such
withholding taxes.
	 
	8.	 	Securities Laws. Upon the acquisition of any Shares pursuant to settlement of
Performance Shares, the Participant will make or enter into such written representations,
warranties and agreements as the Committee may reasonably request in order to comply with
applicable securities laws or with this Agreement.
	 
	9.	 	Bermuda Government Regulations. No Shares shall be issued pursuant to this Agreement
unless and until all relevant licenses, permissions and authorizations required to be granted
by the Government of Bermuda, or by any authority or agency thereof, shall have been duly
received.
	 
	10.	 	Notices. Any notice necessary under this Agreement shall be addressed to the Company
in care of its Secretary at the principal executive office of the Company and to the
Participant at the address appearing in the personnel records of the Company for the
Participant or to either party at such other address as either party hereto may hereafter
designate in writing to the other. Any such notice shall be deemed effective upon receipt
thereof by the addressee.
	 
	11.	 	Choice of Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF BERMUDA, without regard to conflicts of laws principles.
	 
	12.	 	Performance Shares Subject to the Plan. By entering into this Agreement the
Participant agrees and acknowledges that the Participant has received and read a copy of the
Plan. The Performance Shares are subject to the Plan (including without limitation the
arbitration provision), and the terms and provisions of the Plan, as it may be amended from
time to time, are hereby incorporated herein by reference. In the event of a conflict between
any term or provision contained herein and a term or provision of the Plan, the applicable
terms and provisions of the Plan will govern and prevail.
	 
	13.	 	Rights as a Shareholder. The Participant shall have no rights as a shareholder, and
shall not receive dividends, with respect to any Performance Shares until the Performance
Shares have been paid out and Share certificates have been issued to the Participant.
	 
	14.	 	Fiscal Year. If the Company’s fiscal year is changed to other than a calendar year,
the references to calendar year in this Agreement shall be adjusted to appropriately reflect
the change.

 

 

	15.	 	Signature in 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, the parties hereto have executed this Agreement.

	 	 	 	 	 
	 	ASPEN INSURANCE HOLDINGS LIMITED

 	 
	 	By:  	
 	 
	 	 	 	 
	 	 	 	 
	 

AGREED AND ACKNOWLEDGED AS

OF THE DATE FIRST ABOVE WRITTEN:

 

Participant

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