Exhibit 10.23

 

CONFORMED COPY

 

AMENDMENT NO. 2

to

STOCK PURCHASE AND ASSET TRANSFER AGREEMENT

 

AMENDMENT NO. 2, dated as of February 20, 2004 (the “Amendment”), to the STOCK
PURCHASE AND ASSET TRANSFER AGREEMENT, dated as of November 17, 2003, as amended
by Amendment No. 1, dated as of February 2, 2004 (together with the Schedules
thereto, the “Agreement”), by and among CIGNA Holdings, Inc., a Delaware
corporation (“CIGNA Holdings”), Connecticut General Corporation, a Connecticut
corporation and a wholly owned subsidiary of CIGNA Holdings (“Connecticut
General”), Connecticut General Life Insurance Company, a specially-chartered
Connecticut corporation and a wholly owned subsidiary of Connecticut General
(“CGLIC”) and CIGNA Corporation, a Delaware corporation (“CIGNA” and, together
with Connecticut General, CIGNA Holdings and CGLIC, “Sellers”) and Prudential
Financial, Inc., a New Jersey corporation (“Buyer”).

 

WHEREAS, the parties desire to amend the Agreement to reflect certain additional
or modified terms.

 

NOW, THEREFORE, in consideration of the foregoing premises and the mutual
promises and covenants set forth herein and in the Agreement, and in reliance
upon the representations, warranties, conditions and covenants contained herein
and in the Agreement, and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereto, intending
to be legally bound, do hereby agree as follows:

 

1. All capitalized terms used and not otherwise defined in this Amendment are
used herein as defined in the Agreement, unless otherwise specified.

 

2. Schedule 1.1(d) to the Agreement is hereby amended by inserting as the
fourteenth bullet point in the list of operations included in the Business the
following words:

 

  • “Guaranteed Cost Business” means the portion of the Business consisting of
deferred and immediate guaranteed cost annuities identified below, written
directly by CGLIC or assumed under reinsurance contracts executed before the
Effective Date (as defined in the Guaranteed Cost Coinsurance Agreement):

 

  • Single Premium Annuities

 

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  • Deferred Annuities

 

  • Guaranteed Contract conversions

 

  • Life Insurance Company of North America Guaranteed Contracts

 

  • INA Guaranteed Contracts

 

  • CIGNA Life Insurance Company of New York Guaranteed Contracts

 

  • Maturity Funding Contracts”

 

3. The Index of Exhibits is hereby amended by inserting the following words at
the end of such index:

 

“Exhibit GG Payment and Indemnification Agreement

Exhibit HH CGLIC Undertaking with respect to Canadian Business”.

 

4. Section 1.1 of the Agreement is hereby amended as follows:

 

  • The definition of Ancillary Agreement is amended by inserting the following
words immediately after the words the “Participation Agreement,”: “the Payment
and Indemnification Agreement,”.

 

  • The following words are inserted in Section 1.1 in their appropriate
alphabetical location:

 

“Payment and Indemnification Agreement” means the Payment and Indemnification
Agreement by and among CIGNA Holdings, Connecticut General, CIGNA and CIGNA Life
substantially in the form attached hereto as Exhibit GG.”

 

“Sellers Plans” shall have the meaning set forth in Section 5.5(o).”

 

5. Section 5.31 of the Agreement is hereby amended by deleting the words
following the phrase “between the date of this Agreement and Closing;” in their
entirety and inserting the following words immediately following such phrase:

 

“; Sellers agree to cause CGLIC to execute an undertaking with respect to the
Canadian portion of the Business, substantially in the form attached hereto as
Exhibit HH, provided that in connection with the Canadian portion of the
Business no condition is imposed by a regulator which in the reasonable
determination of CGLIC is unacceptable; and provided, further, that no transfers
shall be effected in any manner

 

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that require CIGNA Life or Buyer or any Affiliate of Buyer to effect or maintain
any licensure or registration in Canada or any jurisdiction within Canada or to
comply with any other condition by a regulator which in the reasonable
determination of CIGNA Life is unacceptable.”

 

6. Section 5.5 of the Agreement shall be amended by the addition of a new
Section 5.5(o), which shall read in its entirety as follows:

 

“(o) Effective as of the Closing Date, Seller or an Affiliate of Seller shall
amend or take such other appropriate action with respect to the CIGNA 401(k)
Plan, the CIGNA Pension Plan, Part B, and the CIGNA Supplemental Pension Plan,
Part B (collectively, “Sellers Plans”) to provide that any Affected Employee’s
accrued but unvested benefits as of the day before the Closing Date under any of
Sellers Plans shall become fully vested and nonforfeitable as of the Closing
Date.”

 

7. This Amendment may be executed in counterparts of like form, each of which,
when executed, shall be deemed together an original and all of which taken
together shall constitute one and the same instrument.

 

8. Except as hereby amended, the terms and provisions of the Agreement shall
remain in full force and effect.

 

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IN WITNESS WHEREOF, this Amendment has been duly executed and delivered by the
duly authorized officers of Sellers and of Buyer as of the date first above
written.

 

 

CIGNA CORPORATION By:   /s/    MICHAEL W. BELL            

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    Name:  Michael W. Bell     Title:    Executive Vice President and Chief
Financial Officer

 

CONNECTICUT GENERAL LIFE INSURANCE COMPANY

By:   /s/    MARK A. PARSONS            

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    Name:  Mark A. Parsons     Title:     Vice President

 

CONNECTICUT GENERAL CORPORATION

By:   /s/    JAMES YABLECKI            

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    Name:  James Yablecki     Title:    President

 

CIGNA HOLDINGS, INC.

By:   /s/    JOANNE L. DORAK            

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    Name:  Joanne L. Dorak     Title:    President

 

PRUDENTIAL FINANCIAL, INC.

By:   /s/    KENNETH TANJI            

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    Name:  Kenneth Tanji     Title:    Vice President

 

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