Exhibit 10.16
AMERICAN RE CORPORATION
November 25, 1996
Xx. Xxxxxx X. Xxxx
00 Xxxxxxxx Xxxxx
Xxxxxxxxx, Xxx Xxxxxx 00000
Dear Ed:
This letter will confirm the terms on which you have agreed to continue to
provide consulting services to American Re Corporation or successor
organization.
For the period from January 1, 1997 through December 31, 1997 you agree to
provide various consulting services, from time to time, under my direction and
as I may request. We have agreed that these services may involve up to 50% of
your work-time over the course of the year.
As consideration for these services, American Re will pay you an annual fee of
$250,000 payable in equal monthly installations of $20,833.33 on the last day of
each month. Other reasonable expenses related to your performance of services
for American Re, if approved in advance, will also be reimbursed.
American Re agrees to indemnify and hold you harmless against any and all
claims, damages, costs, expenses and suits related to your performance of
services for American Re, except those arising out of your intentional
misconduct or gross negligence.
You may terminate this agreement at any time upon 90 days written notice to
American Re. American Re may terminate this agreement only in the event of
fraud, intentional misconduct, gross negligence, or your inability to perform
due to death or disability.
If these terms are acceptable, please sign the agreement in the space provided
below and return it to my attention.
As you know, I am pleased that I can continue my association with you both
personally and professionally.
Sincerely,
/s/ Xxxx X. Xxxxxxxxxxx
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Xxxx X. Xxxxxxxxxxx
Accepted and Agreed: /s/ Xxxxxx X. Xxxx, Dated November 25, 1996
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Xxxxxx X. Xxxx
cc: Xxxxxx Xxxxxxx
Xxxxxxx Xxxxxxx
Xxxxxx Xxxxx
