Document:

exv10w7

Exhibit 10.7

THE CHUBB CORPORATION

LONG-TERM INCENTIVE PLAN (2009)

RESTRICTED STOCK UNIT AGREEMENT

     This RESTRICTED STOCK UNIT AGREEMENT, dated as of February 24, 2010, is by and between The
Chubb Corporation (the “Corporation”) and                                          (the
“Participant”), pursuant to The Chubb Corporation Long-Term Incentive Plan (2009) (the
“Plan”). Capitalized terms that are not defined herein shall have the same meanings given
to such terms in the Plan. If any provision of this Agreement conflicts with any provision of the
Plan (as either may be interpreted from time to time by the Committee), the Plan shall control.

     WHEREAS, pursuant to the provisions of the Plan, the Committee has authorized the grant to the
Participant of Restricted Stock Units in accordance with the terms and conditions of this
Agreement, subject to the acceptance of its terms by the Participant; and

     WHEREAS, the Participant and the Corporation desire to enter into this Agreement to evidence
and confirm the grant of such Restricted Stock Units on the terms and conditions set forth herein.

     NOW, THEREFORE, the Participant and the Corporation agree as follows:

     1. Grant of Restricted Stock Units. Pursuant to the provisions of the Plan, the Corporation on the date set forth above (the
“Grant Date”) has granted and hereby evidences the grant to the Participant, subject to the
terms and conditions set forth herein and in the Plan, of an award of ___Restricted Stock Units
(the “Award”).

     2. Vesting and Rights as a Shareholder. It is understood and agreed that the grant of the Award evidenced hereby is subject to the
following conditions:

          (a) Restrictions on Transfer. Until settlement of the Restricted Stock Units in accordance with Section 6, the Restricted
Stock Units may not be sold, assigned, hypothecated, pledged or otherwise transferred or encumbered
in any manner except (i) by will or the laws of descent and distribution or (ii) to a “Permitted
Transferee” (as defined in Section 11(c) of the Plan) with the permission of, and subject to such
conditions as may be imposed by, the Committee.

          (b) Restriction Period. The Restriction Period applicable to the Restricted Stock Units covered by the Award shall
begin on the date hereof and, except as otherwise provided in Section 3 or 4, shall, subject to the
Participant’s continued employment from the Grant Date, lapse on the third anniversary of the Grant
Date (such date to be hereafter referred to as the “Vesting Date”).

 

 

          (c) No Rights as a Shareholder. Until shares of Stock are issued, if at all, in satisfaction of the Corporation’s
obligations under this Award, in the time and manner provided in Section 6, the Participant shall
have no rights as a shareholder.

          (d) Dividend Equivalents. Without limiting the generality of the foregoing, until settlement of the Restricted Stock
Units in accordance with Section 6, as soon as practicable after cash dividends are paid on the
Stock, the Participant shall be paid an amount in cash equal to the amount of dividends paid on
that number of shares of the Stock as is equal to the number of the Participant’s Restricted Stock
Units. In any event, such payments shall be made by the March 15th following the year in which the
actual dividends are paid on shares of Stock.

     3. Termination of Employment.

          (a) Qualifying Termination. If the Participant’s employment terminates by reason of a Qualifying Termination during the
Restriction Period, the Restriction Period shall lapse as to (and there shall become vested and
non-forfeitable) that number of Restricted Stock Units equal to the product of (i) the number of
Restricted Stock Units covered by the Award and (ii) a fraction, the numerator of which is the
number of full calendar months during the Restriction Period that the Participant was employed and
the denominator of which is 36. The remainder of the Restricted Stock Units covered by the Award
shall be forfeited and canceled without further action by the Corporation or the Participant as of
the date of such termination.

          (b) Termination for any Other Reason. If the Participant’s employment terminates for any reason other than a Qualifying
Termination during the Restriction Period, all of the unvested Restricted Stock Units covered by
the Award shall be forfeited and canceled without further action by the Corporation or the
Participant as of the date of such termination. For purposes of the Award, the term “Retirement”
shall mean a termination of the Participant’s employment other than for Cause at or after the
Participant’s normal retirement age or earliest retirement date, in each case as specified in the
Pension Plan of The Chubb Corporation or its successor (the “Pension Plan”). Accordingly,
all of the unvested Restricted Stock Units covered by the Award shall be forfeited and canceled
without further action by the Corporation or the Participant as of the date a Participant is
terminated for Cause, whether prior to, on, or after the Participant’s normal retirement age or
earliest retirement date, in each case as specified in the Pension Plan.

          (c) Transfers between the Corporation and Subsidiaries; Leaves, Other Absences and
Suspension. Transfer from the Corporation to a Subsidiary, from a Subsidiary to the Corporation, or
from one Subsidiary to another shall not be considered a termination of employment. Any question
regarding whether a Participant’s employment has terminated in connection with a leave of absence
or other absence from active employment shall be determined by the Committee, in its sole
discretion, taking into account the provisions of applicable law and the Corporation’s generally
applicable employment policies and practices. The Committee also may suspend the operation of the
termination of employment provisions of this Agreement for such period and upon such terms and
conditions as it may deem necessary or appropriate to further the interests of the Corporation.

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     4. Change in Control. Notwithstanding anything in Section 6 to the contrary, Section 9 of the Plan shall apply in
the event of a Change in Control.

     5. Adjustment in Capitalization. In the event that the Committee shall determine that any stock dividend, stock split, share
combination, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation,
split-up, spin-off, combination, exchange of shares, warrants or rights offering to purchase Stock
at a price substantially below fair market value, or other similar corporate event affects the
Stock such that an adjustment is required in order to preserve, or to prevent the enlargement of,
the benefits or potential benefits intended to be made available under this Award, then the
Committee shall, in such manner as the Committee may deem equitable (in its sole discretion),
adjust any or all of the number and kind of units subject to this Award and/or, if deemed
appropriate, make provision for a cash payment to the person holding this Award; provided,
however, that, unless the Committee determines otherwise, the number of Restricted Stock
Units subject to this Award always shall be a whole number.

     6. Settlement of Restricted Stock Units. Subject to the provisions of Section 4 and this Section 6, the Corporation shall deliver to the
Participant (or, if applicable, the Participant’s Designated Beneficiary or legal representative)
that number of shares of Stock as is equal to the number of Restricted Stock Units covered by the
Award that have become vested and nonforfeitable within 90 days after the earlier of (i) death,
(ii) Disability, (iii) Separation from Service, or (iv) the Vesting Date.

     Notwithstanding the foregoing, if the Participant is (or is reasonably expected to be) a
“covered employee” within the meaning of Section 162(m) of the Code for the calendar year in which
delivery of Stock would ordinarily be made to the Participant, the Corporation shall delay delivery
to the Participant of that portion of the shares of Stock for which the Corporation reasonably
believes that Section 162(m) of the Code will preclude the Corporation from taking a compensation
expense deduction until the Participant’s Separation from Service.

     Delivery of shares upon a Separation from Service under this Section shall be subject to the
six month delay rule in Section 6(d) of the Plan, if applicable.

     In accordance with terms and conditions established by the Committee, the Participant may be
eligible to defer delivery of shares under the terms of the Corporation’s Key Employee Deferred
Compensation Plan (2005) or its successor.

     7. Notice. Any notice given hereunder to the Corporation shall be addressed to The Chubb Corporation,
Attention: Secretary, 15 Mountain View Road, P.O. Box 1615, Warren, New Jersey 07061-1615, and any
notice given hereunder to the Participant shall be addressed to the Participant at the
Participant’s address as shown on the records of the Corporation.

     8. Restrictive Covenants. As a condition to the receipt of the Award made hereby, the Participant agrees to be bound
by the terms and conditions hereof and of the Plan, including the following restrictive covenants:

          (a) Non-Disclosure. The Participant shall not, without prior written authorization from the Committee, disclose
to anyone outside the Corporation, or use (other than in the Corporation’s or any of the
Subsidiaries’ business), any confidential information or

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material relating to the business of the Corporation or any of the Subsidiaries that is
acquired by the Participant either during or after employment with the Corporation or any of the
Subsidiaries.

          (b) Non-Solicitation. Unless the Participant has received prior written authorization from the Committee, the
Participant shall not during his or her employment or service with the Corporation or any of the
Subsidiaries and for a period of one (1) year following any termination of such employment or
service relationship (the “Restricted Period”):

               (i) Directly or indirectly, employ, solicit, persuade, encourage, or induce any
individual employed by the Corporation or any of the Subsidiaries to become employed by or
associated with any person or entity other than the Corporation or any of the Subsidiaries;
or

               (ii) Directly or indirectly, solicit business on behalf of a Competitive Business from
any Customer with whom the Participant has had, or employees reporting to the Participant
have had, personal contact or dealings with on behalf of the Corporation or any of the
Subsidiaries during the one (1) year period preceding the Restricted Period.

          (c) Non-Competition. Unless the Participant has received prior written authorization
from the Committee, the Participant shall not, whether during his or her employment or service with
the Corporation or any of the Subsidiaries or during the Restricted Period, directly or indirectly
compete with the business of the Corporation or any of the Subsidiaries by becoming an officer,
agent, employee, consultant, partner or director of a Competitive Business, or otherwise render
services to or assist or hold an interest (except as a less than one (1) percent shareholder of a
public company) in any Competitive Business. Notwithstanding the foregoing, it shall not be a
violation of this Section 8(c) for the Participant to serve as a director for any entity which
would otherwise be a Competitive Business if the Participant was serving as a director for such
entity at the time of his or her termination of employment in compliance with the Corporation’s
Policy Statement on Conflict of Interest.

          “Customer” shall mean a person or entity to which the Corporation or any of the
Subsidiaries is at the time providing services (which includes the provision of insurance or any
other contractual obligation under any products of the Corporation or any of the Subsidiaries); for
avoidance of doubt, it is understood and agreed that the term “Customer” includes any broker,
agent, or other third party acting for or on behalf of such broker or agent.

          “Competitive Business” shall mean any person or entity (including any joint venture,
partnership, firm, corporation or limited liability company) that engages, directly or indirectly,
in the property and casualty insurance business, including, but not limited to, commercial
insurance, personal insurance, specialty insurance, surety, excess and surplus lines, and/or
reinsurance, and/or any other business that is a significant business of, the Corporation and the
Subsidiaries as of the date of the Participant’s termination of employment or service with the
Corporation or any of the Subsidiaries; provided however, that a business set forth above shall not
be considered a “Competitive Business” in the event that, as of the date of the Participant’s
termination of employment or service with the Corporation or any of the Subsidiaries, such business
is no longer a business of the Corporation or any of the Subsidiaries.

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          (d) Inventions. A Participant shall disclose promptly and assign to the Corporation
all right, title, and interest in any invention or idea, patentable or not, made or conceived by
the Participant during employment by the Corporation or any of the Subsidiaries, relating in any
manner to the actual or anticipated business, research or development work of the Corporation or
any of the Subsidiaries and shall do anything reasonably necessary to enable the Corporation or any
of the Subsidiaries to secure a patent, copyright or any other intellectual property rights where
appropriate in the United States and in foreign countries.

          (e) Relief with Respect to Violations of Covenants. Failure to comply with the
provisions of this Section 8 at any point before the Restricted Stock Units covered by the Award
are settled in accordance with Section 6 of this Agreement shall cause such Restricted Stock Units
to be canceled and rescinded without any payment therefor. For the avoidance of doubt, following
a failure to comply with this Section 8, all shares of Stock in respect of any portion of the
Restricted Stock Units covered by the Award for which delivery has been deferred under the Deferred
Compensation Plan in accordance with Section 2 hereof shall be forfeited, and accordingly the
Participant shall have no further right to delivery or payment in respect of any such shares. In
the event that all or any portion of the Restricted Stock Units covered by this Award shall have
been settled in accordance with the terms of this Agreement within twelve (12) months of the date
on which any breach by the Participant of any of the provisions of this Section 8 shall have first
occurred, the Committee may require that the Participant repay (with appreciation (if any),
determined up to the date repayment is made), and the Participant shall promptly repay, to the
Corporation the Fair Market Value of any Stock conveyed to the Participant within such period in
respect of such Restricted Stock Units. Additionally, the Participant agrees that the Corporation
shall be entitled to an injunction, restraining order or such other equitable relief restraining
the Participant from committing any violation of the covenants or obligations contained in this
Section 8. These rescission rights and injunctive remedies are cumulative and are in addition to
any other rights and remedies the Corporation may have at law or in equity. The Participant
acknowledges and agrees that the covenants and obligations in this Section 8 relate to special,
unique and extraordinary matters and that a violation or threatened violation of any of the terms
of such covenants or obligations will cause the Corporation and the Subsidiaries irreparable injury
for which adequate remedies are not available at law.

          (f) Reformation. The Participant agrees that the provisions of this Section 8 are
necessary and reasonable to protect the Corporation in the conduct of its business. If any
restriction contained in this Section 8 shall be deemed to be invalid, illegal or unenforceable by
reason of the extent, duration, or geographical scope hereof, or otherwise, then the court making
such determination shall have the right to reduce such extent, duration, geographical scope, or
other provisions hereof, and in its reduced form such restriction shall then be enforceable in the
manner contemplated hereby.

     9. Withholding. At the Committee’s discretion, the Participant shall be required to either pay to the
Corporation the amount of any taxes required by law to be withheld as may be necessary in the
opinion of the Corporation to satisfy tax withholding required under the laws of any country,
state, province, city, or other jurisdiction with respect to Stock deliverable hereunder or, in
lieu thereof, the Corporation shall have the right to retain (or the Participant may be offered the
opportunity to elect to tender) the number of shares of Stock whose Fair Market Value equals such
amount required to be withheld.

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     10. Committee Discretion; Delegation. Notwithstanding anything contained in this Agreement to the contrary, the Committee, in its
sole discretion and in accordance with the terms of the Plan, may take any action that is
authorized under the terms of the Plan that is not contrary to the express terms hereof, including
accelerating the lapse of the Restriction Period with respect to all or any portion of the
Restricted Stock Units covered by the Award, at such times (including, without limitation, upon or
in connection with the Participant’s termination of employment) and upon such terms and conditions
as the Committee shall determine. Nothing in this Agreement shall limit or in any way restrict the
power of the Committee, consistent with the terms of the Plan, to delegate any of the powers
reserved to it hereunder to such person or persons as it shall designate from time to time.

     11. No Right to Continued Employment. Neither the execution and delivery hereof nor the granting of the Award shall constitute or
be evidence of any agreement or understanding, express or implied, on the part of the Corporation
or any of the Subsidiaries to employ or continue the employment of the Participant for any period.

     12. Governing Law. The Award and the legal relations between the parties shall be governed by and construed in
accordance with the laws of the State of New Jersey (without reference to the principles of
conflicts of law).

     13. Signature in Counterpart. This Agreement may be signed in counterparts, each of which shall be an original, with the
same effect as if the signature thereto and hereto were upon the same instrument. This Agreement
may be accepted by the Participant by means of an electronic acceptance.

     14. Binding Effect; Benefits. This Agreement shall be binding upon and inure to the benefit of the Corporation and the
Participant and their respective successors and permitted assigns. Nothing in this Agreement,
express or implied, is intended or shall be construed to give any person other than the Corporation
or the Participant or their respective successors or assigns any legal or equitable right, remedy
or claim under or in respect of any agreement or any provision contained herein.

     15. Amendment. The Committee may affirmatively act to amend, modify, or terminate this Agreement at any
time prior to payment in any manner not inconsistent with the terms of the Plan. Any such action
by the Committee shall be subject to the Participant’s consent if the Committee determines that
such action would have a materially adverse effect on the Participant’s rights under such Award,
whether in whole or in part. Notwithstanding the foregoing, the Committee, in its sole discretion,
may amend an Award if it determines such amendment is necessary or advisable for the Corporation to
comply with applicable law (including Section 409A of the Code), regulation, rule, or accounting
standard. As soon as is administratively practicable following the date of any such amendment to
this Agreement, the Corporation shall notify the Participant of the amendment; provided, however,
that failure to provide such notice shall not invalidate or otherwise impair the enforceability of
such amendment.

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     16. Sections and Other Headings. The section and other headings contained in this Agreement are for reference purposes only
and shall not affect the meaning or interpretation of this Agreement.

     IN WITNESS WHEREOF, the Corporation, by its duly authorized officer, and the Participant have
executed this Agreement in duplicate as of the day and year first above written.

	 	 	 	 	 
	 	THE CHUBB CORPORATION

 	 
	 	By:  	 	 
	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Participant 	 
	 	 	 	 
	 

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Exhibit 10.8

THE CHUBB CORPORATION

LONG-TERM INCENTIVE PLAN (2009)

Non-statutory Stock Option Award Agreement [for Participants in Canada]

     This NON-STATUTORY STOCK OPTION AWARD AGREEMENT, dated as of February 25, 2010, is by and
between The Chubb Corporation (the “Corporation”) and [                    ] (the
“Participant”), pursuant to The Chubb Corporation Long-Term Incentive Plan (2009) (the
“Plan”). Capitalized terms that are not defined herein shall have the same meanings given
to such terms in the Plan. If any provision of this Agreement conflicts with any provision of the
Plan (as either may be interpreted from time to time by the Committee), the Plan shall control.

     WHEREAS, pursuant to the provisions of the Plan, the Committee has authorized the grant to the
Participant of Non-statutory Stock Options in accordance with the terms and conditions of this
Agreement, subject to the acceptance of its terms by the Participant; and

     WHEREAS, the Participant and the Corporation desire to enter into this Agreement to evidence
and confirm the grant of such Non-statutory Stock Options on the terms and conditions set forth
herein.

     NOW THEREFORE, the Participant and the Corporation agree as follows:

     1. Grant of Options; Exercise Price. Pursuant to the provisions of the Plan, on the
date set forth above (the “Grant Date”), the Corporation has granted and hereby evidences
the grant to the Participant, subject to the terms and conditions set forth herein and in the Plan,
of options to purchase from the Corporation [                    ] shares of Stock (the “Option”). The
exercise price for each share of Stock covered by the Option shall be equal to $[US ___.___], which
was the Fair Market Value of the Stock on the Grant Date. Upon any exercise of the Options, the
Corporation shall cause a book entry account maintained for the Participant to be credited for the
number of shares of Stock to be issued to the Participant (or shall evidence the issuance of Stock
by such other reasonable method as the Committee may determine in its sole discretion).

     2. Exercisability. Except as provided in Sections 5 and 6, and subject to the
Participant’s continued employment with the Corporation or a Subsidiary through the applicable
vesting date, the Options shall become vested and exercisable in accordance with the following
schedule:

	 	 	 
	Date	 	Options Vested & Exercisable
	1st anniversary of Grant Date

	 	1/3 of the Options
	 
	 	 
	2nd anniversary of Grant Date

	 	1/3 of the Options
	 
	 	 
	3rd anniversary of Grant Date

	 	1/3 of the Options

1

 

     Once vested in accordance with the provisions of this Agreement, Options may be exercised at
any time, and from time to time, prior to the date such Options terminate as determined under
Section 3(a) or 5. Options may only be exercised with respect to full shares of Stock and no
fractional shares of Stock shall be issued. Any exercise of the Option shall be made by giving the
Corporation or its designee written notice of exercise specifying the number of shares of Stock to
be purchased. The notice of exercise shall be accompanied by tender to the Corporation of the full
purchase price of said shares and any Tax-Related Items (as defined in Section 11 below). Payment
of the purchase price of the shares of Stock shall be made in cash, check, in a combination of the
foregoing, or by any other method or procedure as shall be permitted by the Plan or the Committee;
provided, however, that the Committee may, in its sole discretion, prohibit or
limit the use of shares of Stock as part or full payment of the purchase price and any Tax-Related
Items.

     3. Conditions Applicable to Options. It is understood and agreed that the Option is
subject to the following conditions:

     (a) Normal Termination of Options. The Options shall not in any event be
exercisable on or after and shall be forfeited as of the tenth anniversary of the Grant
Date.

     (b) Restrictions on Transfer. The Options may not be sold, assigned,
hypothecated, pledged or otherwise transferred or encumbered in any manner except by will or
the laws of descent and distribution.

     (c) No Rights as a Shareholder. Neither the Participant nor any legal
representative, legatee, or distributee shall be deemed to be a holder of or possess any
shareholder rights with respect to any shares of Stock subject to the Option prior to the
issuance of such shares upon exercise of the Option.

     4. Adjustment in Capitalization. In the event that the Committee shall determine that
any stock dividend, stock split, share combination, extraordinary cash dividend, recapitalization,
reorganization, merger, consolidation, split-up, spin-off, combination, exchange of shares,
warrants or rights offering to purchase Stock at a price substantially below Fair Market Value, or
other similar corporate event affects the Stock such that an adjustment is required in order to
preserve, or to prevent the enlargement of, the benefits or potential benefits intended to be made
available under this Award, then the Committee shall, in such manner as the Committee may deem
equitable (in its sole discretion), adjust any or all of the number and kind of shares subject to
this Option, the exercise price with respect to shares of Stock covered by the Option and/or, if
deemed appropriate, make provision for a cash payment to the person holding this Option;
provided, however, that the number of shares subject to this Option always shall be
a whole number.

     5. Termination of Employment.

          (a) Qualifying Termination. If the Participant’s employment terminates by reason of a
Qualifying Termination on or after the first anniversary of the Grant Date, all of the Options
granted hereunder shall become vested and the Participant may exercise the Options until the
normal termination date specified in Section 3(a).

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          (b) Termination for any Other Reason. If the Participant’s employment terminates for
any reason other than a Qualifying Termination on or after the first anniversary of the Grant Date,
any Options not exercised on or prior to the date of termination (including, without limitation,
any portion of the Options that are not then exercisable) shall be forfeited and canceled without
further action by the Corporation or the Participant as of the date of such termination. For
purposes of the Option, the term “Retirement” shall mean a termination of the Participant’s
employment other than for Cause at or after the age at which retirement benefits can commence under
the Employer’s retirement plan, or, in the absence of such a plan, on or after the age for
commencement of pension benefits under local statute. Accordingly, all of the Options covered by
the Award shall be forfeited and canceled without further action by the Corporation or the
Participant as of the date a Participant is terminated for Cause, whether prior to, on, or after
the attainment of such age.

          (c) Transfers between the Corporation and Subsidiaries; Leaves, Other Absences and
Suspension. Transfer from the Corporation to a Subsidiary, from a Subsidiary to the
Corporation, or from one Subsidiary to another shall not be considered a termination of employment.
Any question regarding whether a Participant’s employment has terminated in connection with a
leave of absence or other absence from active employment shall be determined by the Committee, in
its sole discretion, taking into account the provisions of applicable law and the Corporation’s
generally applicable employment policies and practices. The Committee also may suspend the
operation of the termination of employment provisions of this Agreement for such period and upon
such terms and conditions as it may deem necessary or appropriate to further the interests of the
Corporation.

     6. Change in Control. Notwithstanding anything in Section 2 to the contrary, Section
9 of the Plan shall apply in the event of a Change in Control.

     7. Restrictive Covenants. As a condition to the receipt of the Option made hereby,
the Participant agrees to be bound by the terms and conditions hereof and of the Plan, including
the following restrictive covenants:

          (a) Non-Disclosure. The Participant shall not, without prior written authorization
from the Corporation’s Chief Executive Officer, disclose to anyone outside the Corporation, or use
(other than in the Corporation’s or any of the Subsidiaries’ business), any confidential
information or material relating to the business of the Corporation or any of the Subsidiaries that
is acquired by the Participant either during or after employment with the Corporation or any of the
Subsidiaries.

          (b) Non-Solicitation. Unless the Participant has received prior written authorization
from the Corporation’s Chief Executive Officer, the Participant shall not during his or her
employment or service with the Corporation or any of the Subsidiaries and for a period of one (1)
year following any termination of such employment or service relationship (the “Restricted
Period”):

          (i) Directly or indirectly, employ, solicit, persuade, encourage or induce any
individual employed by the Corporation or any of the Subsidiaries to become

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employed by or associated with any person or entity other than the Corporation or any
of the Subsidiaries; or

          (ii) Directly or indirectly, solicit business on behalf of a Competitive Business from
any Customer with whom the Participant has had, or employees reporting to the Participant
have had, personal contact or dealings with on behalf of the Corporation or any of the
Subsidiaries during the one (1) year period preceding the Restricted Period.

          “Customer” shall mean a person or entity to which the Corporation or any of the
Subsidiaries is at the time providing services (which includes the provision of insurance or any
other contractual obligation under any products of the Corporation or any of the Subsidiaries); for
avoidance of doubt, it is understood and agreed that the term “Customer” includes any broker,
agent, or other third party acting for or on behalf of such broker or agent.

          “Competitive Business” shall mean any person or entity (including any joint venture,
partnership, firm, corporation or limited liability company) that engages, directly or indirectly,
in the property and casualty insurance business, including, but not limited to, commercial
insurance, personal insurance, specialty insurance, surety, excess and surplus lines and/or
reinsurance, and/or any other business that is a significant business of, the Corporation and the
Subsidiaries as of the date of the Participant’s termination of employment or service with the
Corporation or any of the Subsidiaries; provided however, that a business set forth above shall not
be considered a “Competitive Business” in the event that, as of the date of the Participant’s
termination of employment or service with the Corporation or any of the Subsidiaries, such business
is no longer a business of the Corporation or any of the Subsidiaries.

          (c) Inventions. A Participant shall disclose promptly and assign to the Corporation
all right, title, and interest in any invention or idea, patentable or not, made or conceived by
the Participant during employment by the Corporation or any of the Subsidiaries, relating in any
manner to the actual or anticipated business, research or development work of the Corporation or
any of the Subsidiaries and shall do anything reasonably necessary to enable the Corporation or any
of the Subsidiaries to secure a patent, copyright or any other intellectual property rights where
appropriate in the United States and in foreign countries.

          (d) Relief with Respect to Violations of Covenants. Failure to comply with the
provisions of this Section 7 at any point before delivery of shares of Stock in respect of the
Option shall cause the Option to be canceled without any payment therefor. In the event that all
or any portion of the Option shall have been exercised within twelve (12) months of the date on
which any breach by the Participant of any of the provisions of this Section 7 shall have first
occurred, the Committee may require that the Participant repay (with interest or appreciation (if
any), as applicable, determined up to the date payment is made), and the Participant shall promptly
repay, to the Corporation the value of any cash or property (including the Fair Market Value of any
Stock) conveyed to the Participant within such period in respect of the Option. Additionally, the
Participant agrees that the Corporation shall be entitled to an injunction, restraining order or
such other equitable relief restraining the Participant from committing any violation of the
covenants or obligations contained in this Section 7. These rescission rights and injunctive
remedies are cumulative and are in addition to any other rights and remedies the

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Corporation may have at law or in equity. The Participant acknowledges and agrees that the
covenants and obligations in this Section 7 relate to special, unique and extraordinary matters and
that a violation or threatened violation of any of the terms of such covenants or obligations will
cause the Corporation and the Subsidiaries irreparable injury for which adequate remedies are not
available at law.

          (e) Reformation. The Participant agrees that the provisions of this Section 7 are
necessary and reasonable to protect the Corporation in the conduct of its business. If any
restriction contained in this Section 7 shall be deemed to be invalid, illegal or unenforceable by
reason of the extent, duration or geographical scope hereof, or otherwise, then the court making
such determination shall have the right to reduce such extent, duration, geographical scope or
other provisions hereof, and in its reduced form such restriction shall then be enforceable in the
manner contemplated hereby.

     8. Notice. Any notice to be given hereunder to the Corporation, other than with
respect to option exercises, shall be addressed to The Chubb Corporation, Attention Secretary, 15
Mountain View Road, P.O. Box 1615, Warren, New Jersey 07061-1615, and any notice given hereunder to
the Participant shall be addressed to the Participant at the Participant’s address as shown on the
records of the Corporation.

     9. No Right to Continued Employment. Neither the execution and delivery hereof nor
the granting of the Award shall constitute or be evidence of any agreement or understanding,
express or implied, on the part of the Corporation or any of the Subsidiaries to employ or continue
the employment of the Participant for any period.

     10. Committee Discretion; Delegation. Notwithstanding anything contained in this
Agreement to the contrary, the Committee, in its sole discretion and in accordance with the terms
of the Plan, may take any action that is authorized under the terms of the Plan that is not
contrary to the express terms hereof, including accelerating the vesting and exercisability of
Options, at such times (including, without limitation, upon or in connection with the Participant’s
termination of employment) and upon such terms and conditions as the Committee shall determine.
Nothing in this Agreement shall limit or in any way restrict the power of the Committee, consistent
with the terms of the Plan, to delegate any of the powers reserved to it hereunder to such person
or persons as it shall designate from time to time.

     11. Withholding. Regardless of any action the Corporation and/or the Subsidiary
employing the Participant (the “Employer”) take with respect to any or all income tax (including
U.S. federal, state, and local tax and/or non-U.S. tax), social insurance, payroll tax, payment on
account or other tax-related withholding (“Tax-Related Items”), the Participant acknowledges that
the ultimate liability for all Tax-Related Items legally due by the Participant is and remains the
Participant’s responsibility and that the Corporation and/or the Employer (i) make no
representations or undertakings regarding the treatment of any Tax-Related Items in connection with
any aspect of the Award, including the grant, vesting or exercise of the Option, the subsequent
sale of any shares of Stock acquired upon exercise and the receipt of any dividends; and (ii) do
not commit to structure the terms of the grant or any aspect of the Award to reduce or eliminate
the Participant’s liability for Tax-Related Items.

-5-

 

     Prior to the relevant taxable event, the Participant shall pay or make arrangements
satisfactory to the Corporation and/or the Employer to satisfy all Tax-Related Items. In this
regard, the Participant authorizes the Corporation and/or the Employer to withhold all applicable
Tax-Related Items legally payable by the Participant from any wages or other cash compensation paid
to the Participant by the Corporation and/or the Employer. Alternatively, or in addition, if
permissible under local law, the Participant authorizes the Corporation and/or the Employer, at
their discretion and pursuant to such procedures as the Corporation may specify from time to time,
to satisfy the obligations with respect to all Tax-Related Items legally payable by the Participant
by one or a combination of the following: (i) withholding otherwise deliverable shares of Stock,
provided that the Corporation only withholds the amount of shares of Stock necessary to satisfy the
minimum withholding amount or such other amount as may be necessary to avoid adverse accounting
treatment; (ii) arranging for the sale of shares of Stock otherwise deliverable to the Participant
(on the Participant’s behalf and at the Participant’s direction pursuant to this authorization); or
(iii) withholding from the proceeds of the sale of shares of Stock acquired upon exercise of the
Option. If the obligation for Tax-Related Items is satisfied by withholding a number of shares of
Stock as described herein, the Participant shall be deemed, for tax purposes only, to have been
issued the full number of shares of Stock subject to the portion of the Option exercised,
notwithstanding that a number of shares are held back solely for purposes of paying the Tax-Related
Items due as a result of any aspect of the Award. The Participant shall pay to the Corporation
and/or the Employer any amount of Tax-Related Items that the Corporation and/or the Employer may be
required to withhold as a result of the Participant’s participation in the Plan that cannot be
satisfied by the means previously described. The Corporation may refuse to deliver to the
Participant any shares of Stock pursuant to the Award if the Participant fails to comply with his
or her obligations in connection with the Tax-Related Items as described in this Section 11.

     12. [Acknowledgement of Nature of Plan and Option. In accepting the Option, the
Participant acknowledges that:

     (a) the Plan is established voluntarily by the Corporation, it is discretionary in
nature, and it may be modified, amended, suspended or terminated by the Corporation at any
time, unless otherwise provided in the Plan and this Agreement;

     (b) the grant of the Option is voluntary and occasional and does not create any
contractual or other right to receive future grants of Options, or benefits in lieu of
Options, even if Options have been granted repeatedly in the past;

     (c) all decisions with respect to future awards, if any, will be at the sole discretion
of the Corporation;

     (d) the Participant’s participation in the Plan is voluntary;

     (e) the Participant’s participation in the Plan shall not interfere with the ability of
the Employer to terminate the Participant’s employment or service relationship (if any) at
any time;

-6-

 

     (f) the Option is an extraordinary item that does not constitute compensation of any
kind for services of any kind rendered to the Corporation or any Subsidiary and which is
outside the scope of the Participant’s employment or service contract, if any;

     (g) the Option is not part of normal or expected compensation or salary for any
purposes, including, but not limited to, calculation of any severance, resignation,
termination, redundancy, end of service payments, bonuses, long-service awards, pension or
retirement or welfare benefits or similar payments and in no event should be considered as
compensation for, or relating in any way to, past services for the Corporation or any
Subsidiary;

     (h) the future value of the underlying shares of Stock is unknown and cannot be
predicted with certainty;

     (i) if the underlying shares of Stock do not increase in value, the Option will have no
value;

     (j) if the Participant exercises his or her Option and obtains shares of Stock, the
value of such shares may increase or decrease in value, even below the exercise price;

     (k) in consideration of the Option, no claim or entitlement to compensation or damages
shall arise from termination of the Option or from any diminution in value of the Option or
shares of Stock acquired upon exercise of the Option resulting from termination of the
Participant’s employment with the Corporation or any Subsidiary (for any reason whatsoever
and whether or not in breach of local labor laws) and the Participant irrevocably releases
the Corporation and any Subsidiary from any such claim that may arise; if, notwithstanding
the foregoing, any such claim is found by a court of competent jurisdiction to have arisen,
then, by signing the Agreement, the Participant shall be deemed to have waived his or her
entitlement to pursue such claim;

     (l) in the event of termination of the Participant’s employment (whether or not in
breach of local labor laws), the Participant’s right to receive an Option and vest in the
Option under the Plan, if any, will terminate effective as of the date that the Participant
is no longer actively employed and will not be extended by any notice period mandated under
local law (e.g., active employment would not include a period of “garden leave” or similar
period pursuant to local law); furthermore, in the event of termination of employment
(whether or not in breach of local labor laws), the Participant’s right to exercise the
Option after termination of employment, if any, will be measured by the date of termination
of the Participant’s active employment and will not be extended by any notice period
mandated under local law; the Committee shall have the exclusive discretion to determine
when the Participant is no longer actively employed for purposes of the Option;

     (m) the Corporation is not providing any tax, legal or financial advice, nor is the
Corporation making any recommendations regarding the Participant’s participation in the Plan
or the acquisition or sale of shares of Stock; and

-7-

 

     (n) the Participant is hereby advised to consult with his or her own personal tax,
legal and financial advisors regarding his or her participation in the Plan before taking
any action related to the Plan.]

     13. [Data Privacy Notice and Consent. The Participant hereby explicitly and
unambiguously consents to the collection, use and transfer, in electronic or other form, of the
Participant’s personal data as described in this Agreement and any other Option grant materials by
and among, as applicable, the Employer, the Corporation and its Subsidiaries for the exclusive
purpose of implementing, administering and managing his or her participation in the Plan.

     The Participant understands that the Corporation and the Employer may hold certain personal
information about the Participant, including, but not limited to, the Participant’s name, home
address and telephone number, date of birth, social insurance number or other identification
number, salary, nationality, job title, any shares of Stock or directorships held in the
Corporation, details of all Options or any other entitlement to shares of Stock awarded, canceled,
exercised, vested, unvested or outstanding in the Participant’s favor, for the exclusive purpose of
implementing, administering and managing the Plan (“Data”).

     The Participant understands that Data will be transferred to any third parties assisting the
Corporation with the implementation, administration and management of the Plan. The Participant
understands that the recipients of Data may be located in the Participant’s country, in the United
States or elsewhere, and that the recipients’ country may have different data privacy laws and
protections than the Participant’s country. The Participant understands that he or she may request
a list with the names and addresses of any potential recipients of the Data by contacting his or
her local human resources representative. The Participant authorizes the Corporation and any other
possible recipients which may assist the Corporation (presently or in the future) with
implementing, administering and managing the Plan to receive, possess, use, retain and transfer the
Data, in electronic or other form, for the sole purpose of implementing, administering and managing
the Participant’s participation in the Plan. The Participant understands that Data will be held
only as long as is necessary to implement, administer and manage the Participant’s participation in
the Plan. The Participant understands that he or she may, at any time, view Data, request
additional information about the storage and processing of Data, require any necessary amendments
to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in
writing his or her local human resources representative. The Participant understands, however,
that refusing or withdrawing his or her consent may affect the Participant’s ability to participate
in the Plan. For more information on the consequences of the Participant’s refusal to consent or
withdrawal of consent, the Participant understands that the Participant may contact his or her
local human resources representative.

     In addition to the above, if the Participant is a resident of Quebec, the Participant hereby
authorizes the Corporation and the Corporation’s representatives to discuss with and obtain all
relevant information from all personnel, professional or not, involved in the administration and
operation of the Plan. The Participant further authorizes the Corporation and any of its
Subsidiaries and the administrator of the Plan to disclose and discuss the Plan

-8-

 

with their advisors. The Participant further authorizes the Corporation and any Subsidiary to
record such information and to keep such information in his or her employee file.]

     14. Electronic Delivery. The Corporation may, in its sole discretion, decide to
deliver any documents related to the Option or future awards made under the Plan by electronic
means or request the Participant’s consent to participate in the Plan by electronic means. The
Participant hereby consents to receive such documents by electronic delivery and agrees to
participate in the Plan through an on-line or electronic system established and maintained by the
Corporation or a third party designated by the Corporation.

     15. [Language. If the Participant has received this Agreement or any other document
related to the Plan translated into a language other than English and if the meaning of the
translated version is different than the English version, the English version will control, unless
otherwise prescribed by local law.]

     16. Governing Law. The Option and the legal relations between the parties shall be
governed by and construed in accordance with the laws of the State of New Jersey (without reference
to the principles of conflicts of law).

     17. Venue. For purposes of litigating any dispute that arises directly or indirectly
from the relationship of the parties evidenced by this Option or this Agreement, the parties hereby
submit to and consent to the exclusive jurisdiction of the State of New Jersey and agree that such
litigation shall be conducted only in the courts of Somerset County, New Jersey, or the federal
courts for the United States for the District of New Jersey, where the grant of this Option is made
and/or to be performed.

     18. Signature in Counterpart. This Agreement may be signed in counterparts, each of
which shall be an original, with the same effect as if the signature thereto and hereto were upon
the same instrument. This Agreement may be accepted by the Participant through an electronic
acceptance.

     19. Binding Effect; Benefits. The Participant agrees to be bound by the terms and
conditions hereof and of the Plan. This Agreement shall be binding upon and inure to the benefit
of the Corporation and the Participant and their respective successors and permitted assigns.
Nothing in this Agreement, express or implied, is intended or shall be construed to give any person
other than the Corporation or the Participant or their respective successors or assigns any legal
or equitable right, remedy or claim under or in respect of any agreement or any provision contained
herein.

     20. Amendment. This Agreement may not be altered, modified or amended except by a
written instrument signed by the Corporation and the Participant.

     21. Sections and Other Headings. The section and other headings contained in this
Agreement are for reference purposes only and shall not affect the meaning or interpretation of
this Agreement.

-9-

 

     22. Severability. The provisions of this Agreement are severable and if any one or
more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the
remaining provisions shall nevertheless be binding and enforceable.

     23. [Language Consent for Quebec Participants. The parties acknowledge that it is
their express wish that the Agreement, as well as all documents, notices and legal proceedings
entered into, given or instituted pursuant hereto or relating directly or indirectly hereto, be
drawn up in English.]

[Les parties reconnaissent avoir exigé la rédaction en anglais de cette convention, ainsi que de
tous documents exécutés, avis donnés et procédures judiciaries intentées, directement ou
indirectement, relativement à ou suite à la présente convention.]

     IN WITNESS WHEREOF, the Corporation, by its duly authorized officer, and the Participant have
executed this Agreement in duplicate as of the day and year first above written.

	 	 	 	 	 
	 	THE CHUBB CORPORATION

 	 
	 	By:  	  	 
	 	 	 	 
	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	Participant 	 
	 	 	 	 
	 

-10-

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