EXHIBIT 10.34
[Letterhead of LaSalle Re Holdings Limited]
9 September 1997
Xxxxxx X. Xxxxxx, Xx.
President,
Aon Specialty Group Inc.,
000 Xxxxx Xxxxxx Xxxxx,
Xxxxxxx,
Xxxxxxxx, 00000.
Dear Xxx,
RE: AON CONTRACT
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In a spirit of goodwill we have agreed to move toward the compromise of the
middle ground. We both are mindful of the need to find a balanced solution which
is fair to all the shareholders of LaSalle and to the Service Provider.
The understanding would be:
1. Aon will fulfill its obligations and commitments through September 30,
including all costs incurred to date but not yet invoiced and reimbursed by
Aon.
2. LaSalle will not authorize any further expenditure of a material nature
(without Aon's approval) between now and September 30.
3. Aon will provide the services of Xxxx Xxxxxxxx exclusively dedicated to
LaSalle until April 1, 1998, if needed at no cost to LaSalle. Aon
anticipates that Phase I and II implementation will be within the $1.5m
budget.
4. Subject to the foregoing, XxXxxxx will pay Aon a total of $1.5m (payable in
quarterly installments) commencing October 1, 1997, to reflect the value of
all real and intellectual assets (including 75% of the book value of the
Senator system) which will then become the absolute property of LaSalle.
Assets purchased after April 1, 1997, will be reimbursed 100% to Aon and is
in addition to the above negotiated amount.
5. The above payment will be in addition to fees paid under the contract of
$2.5m (pro rata of $3.3m) to September 30.
LaSalle Re Holdings Limited
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December 2, 1997
6. Additionally Aon has the opportunity to make a pro rata profit commission
to September 30 contingent upon our maintaining a favorable loss experience
through December 31 as more fully described in the contract.
I sincerely hope that when all aspects of the Aon/LaSalle relationship is
factored in, as well as the four year result of the Service Agreement, that this
offer will be acceptable.
Yours sincerely,
/s/ Xxxxxx
Signed: /s/ Xxxxxx X. Xxxxx Signed: /s/ Xxx Xxxxxx
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X. X. Xxxxx Xxx Xxxxxx
Chairman, President & CEO President
LaSalle Re Aon Speciality Group
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