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AOC > SEC Filings for AOC > Form 8-K on 4-Aug-2009All Recent SEC Filings

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Form 8-K for AON CORP


4-Aug-2009

Change in Directors or Principal Officers, Financial Statements and Exhibits


Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

(e)

On August 3, 2009, Aon Limited, a subsidiary of Aon Corporation (the "Company"), entered into a letter agreement (the "Agreement") with Stephen P. McGill, Chairman and Chief Executive Officer of Aon Risk Services Worldwide, and one of the Company's named executive officers. The Agreement modified the terms of Mr. McGill's employment arrangement in the following respects:

(i) the duration of Mr. McGill's overseas assignment to the U.S. operations of the Company was extended from June 30, 2009 to cover the remainder of his existing employment arrangement that extends through January 1, 2013;

(ii) effective May 1, 2009, Mr. McGill's base salary was fixed at US$ 1,100,000 per annum payable monthly to alleviate the administrative burdens related to significant shifts in the foreign exchange rate between the U.S. and the U.K. Mr. McGill's base salary for 2009 will be approximately the same as his base salary in 2008 when calculated in U.S. dollars;

(iii) effective January 1, 2010, Mr. McGill will no longer be eligible to participate in the Company's tax equalization policy for expatriates;

(iv) effective January 1, 2010, the Company's obligation to provide a tax gross-up on Mr. McGill's annual expatriate allowance will cease;

(v) effective July 1, 2009, the Company's obligation to make contributions to Mr. McGill's personal pension plan in the U.K. in the amount of 25% of his base salary ceased; and

(vi) effective January 1, 2010, the Company will be obligated to make an annual cash lump sum payment in partial replacement of the personal pension benefits referenced above. Such amount will be the US$ equivalent of GB£ 45,000 per annum, as calculated and adjusted pursuant to the terms of the Agreement.

The foregoing summary is qualified in its entirety by reference to the Agreement, a copy of which is attached hereto as Exhibit 10.1 and incorporated herein by reference.



Item 9.01. Financial Statements and Exhibits.

(a)-(c) Not applicable.

(d) Exhibits:

Exhibit
Number                             Description of Exhibit
   10.1    Letter Agreement dated August 3, 2009 between Aon Limited and Stephen
           P. McGill.


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