Document:

ex10-4.htm

    Exhibit 10.4

    

    CIGNA
Corporation Non-Employee Director Compensation Program

    Amended
and Restated Effective January 1, 2008

    

    

    I.
Board and
Committee Retainers

    

    Board retainer. Each Director
receives $225,000 annually for Board membership. One third ($75,000) of the
retainer is payable in cash and two-thirds ($150,000) of the retainer is payable
in deferred stock units.

     

    Committee member retainer.
Each Director receives $10,000 annually for each committee
membership.  The Committee member retainer is payable in cash.
Committee chairs and members of the Executive Committee do not receive this
retainer.

     

    Committee chair retainer.
Each committee chair other than the chair of the Executive Committee receives
$15,000 annually payable in cash.

    

    

    II. Payment of
Retainers

    

    All
retainer payments are made quarterly.

    

    Cash retainers (Board, committee
member and committee chair). Cash retainers are paid during a quarter to
Directors who are in active service at any time during that calendar
quarter.

    

    Unit portion of Board
retainer.  Deferred stock units are awarded in the third month
of a calendar quarter to Directors who are in active service at any time during
that quarter. The number of units awarded is determined by dividing $37,500 by
the closing price of CIGNA stock, as reported on the Composite Tape or successor
means of publishing stock price (“Closing Price”) on the last business day of
the second month of the quarter.  Fractional units are not awarded;
the cash value of any fractional unit is accumulated together with dividend
equivalents and treated as reinvested.

    

    Dividend
equivalents (an amount equal to the dividends declared and paid on a share of
CIGNA stock) are credited on deferred stock units (to the extent the record date
for any such actual dividend occurs while a deferred stock unit is outstanding),
treated as reinvested in additional whole deferred stock units as described
below, and tracked separately for each quarterly award.

    

    For each
quarterly unit award, effective as of each dividend payment date while a
deferred stock unit is outstanding, the dividend equivalents and the cash value
of the fractional units (residual value) are added together and treated as
reinvested in additional deferred stock units.  The number of
resulting additional units is determined by dividing the amount to be reinvested
by the dividend reinvestment price.  The 

     

    
      
        
        

      

      
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    dividend
reinvestment price is provided by CIGNA’s Transfer Agent and is the price used
under the CIGNA Dividend Reinvestment Plan for reinvestment of actual dividends
for CIGNA shareholders who participate in that plan.  The cash value
of any resulting fractional unit is treated as residual value and is applied to
the next reinvestment of dividend equivalents.

    

    The cash
value of an award of deferred stock units (including deferred stock units
resulting from the reinvestment of related dividend equivalents) plus any
remaining residual cash is payable upon the earlier of: (a) the Director’s
separation from service (within the meaning of Treas. Reg. §1.409A-1(h) or any
successor provision), or (b) the third anniversary of the award
date.  Payments to be made upon separation from service shall be made
in a lump sum in the third month of the calendar quarter following the quarter
in which separation from service occurs.   Payments to be made
upon the third anniversary of the award date shall be made in a lump sum in the
third month of the calendar quarter in which the third anniversary of the award
date occurs.

    

    The value
of each deferred stock unit at payout is equal to the Closing Price on the last
business day of the second month of the calendar quarter in which payment is
made.  Deferred stock units cease to be outstanding and a director
will cease to have any rights under them as of the date they are
paid.

     

    In the event of a combination or
exchange of shares, merger, consolidation, rights offering, separation,
reorganization or liquidation, or any other change in CIGNA’s corporate
structure, the Board may make such equitable adjustments, to prevent dilution or
enlargement of rights, as it may deem appropriate, in the number of deferred
stock units outstanding.  Outstanding deferred stock units shall be
adjusted proportionally to reflect any recapitalization, stock split or stock
dividend.  Deferred stock units issued as a consequence of any such
changes in CIGNA's corporate structure or shares shall be subject to the same
restrictions and provisions applicable to the deferred stock units with respect
to which they are issued.

     

    Deferred compensation
elections. Directors may elect to defer some or all of their compensation
described above under the Deferred Compensation Plan for Directors of CIGNA
Corporation.

    

    

    III. Other
Benefits

    

    A. Benefits for Active
Directors

     

    
      	
              ·  

            	
              Basic Group-Term Life
      Insurance coverage.  Each Director is provided coverage
      in the amount of the annual Board
retainer.

            

    

    

    
      	
              ·  

            	
              Travel Accident Insurance
      coverage. Each Director is provided coverage in the amount of three
      times the annual Board retainer.

            

    

     

    
      	
              ·  

            	
              Financial Planning.
      Directors may use the financial planning services available to CIGNA
      executive officers.   Any reimbursements paid to Directors
      under this 

            

    

     

    
      
        
        

      

      
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      	 	program
      shall be paid on or before March 15 of the year after the year the expense
      is incurred.

    

    

    
      	
              ·  

            	
              Insurance. Directors
      may purchase or participate, on an after-tax basis, in life insurance,
      medical/dental care programs, long-term care, property/casualty personal
      lines and various other insurance programs available to CIGNA
      employees.

            

    

    

    
      	
              ·  

            	
              Matching Gifts.
      Directors may participate in the matching charitable gift program
      available to CIGNA employees, under which up to $5,000 annually may be
      matched.

            

    

    

    B.
Post-Separation Benefits 

    

    
      	
              ·  

            	
              Directors
      serving on January 1, 2006 are eligible, upon separation from service
      after nine years of service, to participate on an after-tax basis in
      medical/dental care programs available to retired employees for two years
      and to use the financial planning services available to active Directors
      (up to $5,000) for one year following separation from
      service.  These Directors are also provided $10,000 basic group
      term life insurance coverage for
life.

            

    

    

    
      	
              ·  

            	
              Directors
      who retired from service in 2005 are eligible to use the financial
      planning services available to active Directors for five years following
      separation from service, to participate for life in retiree medical/dental
      care programs on an after-tax basis and are provided $10,000 basic group
      term life insurance coverage for
life.

            

    

    

    
      	
              ·  

            	
              All
      Directors may, at their own expense and if otherwise eligible, also
      continue life insurance, long-term care insurance and property/casualty
      personal lines insurance pursuant to the terms of the applicable
      policies.

            

    

    

    For all
taxable post-separation benefits or reimbursements, the amount provided or
eligible for reimbursement during a particular year may not affect the expenses
eligible for reimbursement or benefits provided in any other
year.  The reimbursement of an eligible expense is made on or before
the last day of the year after the year in which the expense was incurred. The
right to reimbursement or in-kind benefits is not subject to liquidation or
exchange for another benefit.

    

    

    IV.
General

    

    It is
intended that this program comply with the requirements of Internal Revenue Code
Section 409A, and the program shall be so administered and
interpreted.

     

    Notwithstanding
any other provision of this program, if a Director is a specified employee
(within the meaning of Treas. Reg. §1.409A-1(i) or any successor provision) as
of the date of separation from service (within the meaning of Treas. Reg.
§1.409A-1(h) or any successor provision), payments and taxable benefits due upon
separation from 

     

    
      
        
        

      

      
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    service
shall be delayed until the seventh month following the date of separation from
service.

     

    A
Director’s right to receive program benefits represents an unsecured claim
against CIGNA's general assets.   Except as otherwise permitted
by applicable law, no right to receive
program payments shall be transferable or assignable by a Director or subject in
any manner to anticipation, sale, alienation, pledge, encumbrance, attachment or
garnishment by a Director’s creditors, and any such attempt shall be void and of
no force or effect.

     

    This
program was originally effective January 1, 2006.

     

     

    V.  Share
Ownership Guidelines

     

    Each
Director is required to hold at least $250,000 worth of CIGNA stock, deferred
stock units, Restricted Share Equivalents or a combination.  Each
Director has three years from the time he or she joins the Board to meet these
ownership guidelines.

     

     

    4ex10-8.htm

    

                                                                                                                Exhibit
10.8

     

    CIGNA
EXECUTIVE INCENTIVE PLAN

    (Amended
and Restated as of January 1, 2008)

    

    ARTICLE
1

    Statement
of Purpose

    

    The CIGNA
Executive Incentive Plan is intended to provide annual incentive bonuses to
executive officers of the Company if annual performance goals are achieved. The
Plan is also intended to qualify as a performance-based compensation plan under
Sections 162(m) and 409A of the Internal Revenue Code.

    

    ARTICLE
2

    Definitions

    

    The terms
used in this Plan include the feminine as well as the masculine gender and the
plural as well as the singular, as the context in which they are used
requires.  The following terms, unless the context requires otherwise,
are defined as follows:

    

    
      	
              2.1

            	
              “Award” means the
      incentive compensation determined by the Committee under Section 4.3 of
      the Plan.

            

    

    

    
      	
              2.2

            	
              “Board” means the CIGNA
      board of directors.

            

    

    

    
      	
              2.3

            	
              “CIGNA” means CIGNA
      Corporation, a Delaware corporation, or any
  successor.

            

    

    

    
      	
              2.4

            	
              “CIGNA LTIP” means the
      CIGNA Long-Term Incentive Plan, or any successor plan under which grants
      of Common Stock are authorized.

            

    

    

    
      	
              2.5

            	
              “Code” means the
      Internal Revenue Code of 1986, as
amended.

            

    

    

    
      	
              2.6

            	
              “Committee” means the
      People Resources Committee of the Board or any successor committee with
      responsibility for employee compensation, or any subcommittee, as long as
      the number of Committee members and their qualifications shall at all
      times be sufficient to meet the requirements for “outside directors” under
      Section 162(m), as in effect from time to
time.

            

    

    

    
      	
              2.7

            	
              “Common Stock” means
      CIGNA common stock other than Restricted
Stock.

            

    

    

    
      	
              2.8

            	
              “Company” means CIGNA
      and/or its Subsidiaries.

            

    

    

    
      
        
        

      

      
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              2.9

            	
              “Deferred Compensation
      Plan” means the CIGNA Deferred Compensation Plan of 2005, a similar
      or successor plan, or other arrangement for the deferral of compensation
      specified by the Committee that satisfies the requirements of Section
      409A.

            

    

    

    
      	
              2.10

            	
              “Disability” means
      permanent and total disability as defined in Code Section
      22(e)(3).

            

    

    

    
      	
              2.11

            	
              “Employer” means the
      Company that employs a Participant during a Performance
      Period.

            

    

    

    
      	
              2.12

            	
              “Executive Officer”
      means any Company employee who is an “executive officer” as defined in
      Rule 3b-7 promulgated under the Securities Exchange Act of
      1934.

            

    

    

    
      	
              2.13

            	
              “Participant” means an
      employee described in Article 3 of the
Plan.

            

    

    

    
      	
              2.14

            	
              "Peer Group" means a
      group of companies, selected by the Committee, whose financial performance
      is compared to CIGNA Corporation’s.

            

    

    

    
      	
              2.15

            	
              "Performance Measures"
      means the measures to be used to assess the Company’s performance
      with respect to Awards under the Plan.  The measures shall be
      one or more of the following: earnings (total or per share); net income
      (total or per share); growth in net income (total or per share); income
      from selected businesses (total or per share); growth in net income or
      income from selected businesses (total or per share); pre-tax income or
      growth in pre-tax income; profit margins; revenues; revenue growth;
      premiums and fees; growth in premiums and fees; membership; membership
      growth; market share; change in market share; book value; total
      shareholder return; stock price; change in stock price; market
      capitalization; change in market capitalization; return on market value;
      shareholder equity (total or per share); return on equity; assets; return
      on assets; capital; return on capital; economic value added; market value
      added; cash flow; change in cash flow; expense ratios or other expense
      management measures; medical loss ratio; ratio of claims or loss costs to
      revenues; satisfaction – customer, provider, or employee; service quality;
      productivity ratios or other measures of operating efficiency; and
      accuracy of claim processing or other measures of operational
      effectiveness.  The Committee may specify any reasonable
      definition of the measures it uses.  Such definitions may
      provide for reasonable adjustments to the measures and may include or
      exclude items, including but not limited to:  realized
      investment gains and losses; special items identified in the company’s
      reporting; extraordinary, unusual or non-recurring items; effects of
      accounting changes, currency fluctuations, acquisitions, divestitures,
      reserve strengthening, or financing activities; expenses for restructuring
      or productivity initiatives; and other non-operating
  items.

            

    

    

    
      	
              2.16

            	
              "Performance Objectives"
      means the written objective performance goals applicable to
      performance conditions for Awards under the Plan.  To the extent
      required by Code Section 162(m), the Performance Objectives shall be
      stated in terms of one or more 

            

    

     

    
      
        
        

      

      
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      	 	Performance
      Measures.  Performance Objectives may be for the Company as a
      whole, for one or more of its subsidiaries, business units, lines of
      business or for any combination of the foregoing and may be absolute or
      may require comparing the Company's financial performance to that of a
      Peer Group or of a specified index or indices, or be based on a
      combination of the foregoing.

    

    

    
      	
              2.17

            	
              “Performance Period”
      means the period for which an Award may be made.  Unless
      otherwise specified by the Committee, the Performance Period shall be a
      calendar year.

            

    

    

    
      	
              2.18

            	
              “Plan” means the CIGNA
      Executive Incentive Plan (Amended and Restated as of January 1, 2008), as
      it may be amended from time to time.  This Plan is deemed to be
      a Qualifying Plan under Section 9.1 of the CIGNA
  LTIP.

            

    

    

    
      	
              2.19

            	
              “Restricted Stock” means
      CIGNA common stock that is subject to restrictions on sale, transfer, or
      other alienation for a period specified by the
  Committee.

            

    

    

    
      	
              2.20

            	
              “Retirement” means a
      Termination of Employment, after appropriate notice to the Company, (a) on
      or after age 65 with eligibility for immediate annuity benefits under a
      qualified pension or retirement plan of the Company, or (b) upon such
      terms and conditions approved by the Committee, or officers of the Company
      designated by the Board or the
Committee.

            

    

    

    
      	
              2.21

            	
              “SEC” means the
      Securities and Exchange Commission.

            

    

    

    
      	
              2.22

            	
              “Section 162(m)” means
      Code Section 162(m).

            

    

    

    
      	
              2.23

            	
              “Section 409A” means
      Code Section 409A.

            

    

    

    
      	
              2.24

            	
              “Subsidiary” means any
      corporation of which more than 50% of the total combined voting power of
      all classes of stock entitled to vote, or other equity interest, is
      directly or indirectly owned by CIGNA; or a partnership, joint venture or
      other unincorporated entity of which more than a 50% interest in the
      capital, equity or profits is directly or indirectly owned by CIGNA;
      provided that such corporation, partnership, joint venture or other
      unincorporated entity is included in the Company’s consolidated financial
      statements under generally accepted accounting
  principles.

            

    

    

    
      	
              2.25

            	
              “Termination of
      Employment” means (a) the termination of the Participant's active
      employment relationship with the Company, unless otherwise expressly
      provided by the Committee, or (b) the occurrence of a transaction by which
      the Participant's employing Company ceases to be a
    Subsidiary.

            

    

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    ARTICLE
3

    Participation

    

    Any Executive Officer designated by the
Committee shall be a Participant in the Plan and shall continue to be a
Participant until any Award he may receive has been paid or forfeited under the
terms of the Plan.

    

    ARTICLE
4

    Incentive
Awards

    

    4.1           Objective Performance
Goals.  The Committee shall establish Performance Objectives
for a Performance Period not later than 90 days after the beginning of the
Performance Period or by some other date required or permitted under Section
162(m).  The Performance Objectives need not be the same for different
Performance Periods and for any Performance Period may be stated separately for
one or more of the Participants, collectively for the entire group of
Participants, or in any combination of the two.

    

    4.2           Performance
Evaluation.  Within a reasonable time after the close of a
Performance Period, the Committee shall determine whether the Performance
Objectives established for that Performance Period have been met.  If
the Performance Objectives established by the Committee have been met, the
Committee shall so certify in writing to the extent required by Code Section
162(m).

    

    4.3           Award.  If the
Committee has made the written certification under Section 4.2 for a Performance
Period, each Participant to whom the certification applies shall be eligible for
an Award for that Performance Period.  The maximum Award for each such
Participant shall consist of (a) cash in the amount of $3 million and (b) in
lieu of additional cash, 225,000 (after adjustment for the 3-for-1 stock split
effective June 4, 2007) shares of Common Stock to be paid under Article 9 of the
CIGNA LTIP.  For any Performance Period, however, the Committee shall
have the sole and absolute discretion to reduce the amount of, or eliminate
entirely, the Award to one or more of the Participants.  Payment of
all or part of an Award in Common Stock shall be made under and subject to the
terms and conditions of the CIGNA LTIP and the applicable grant.  In
the event of a stock dividend, stock split, or other subdivision or combination
of the Common Stock, the number of shares of Common Stock that a Participant may
receive as an Award under the Plan will be adjusted accordingly.  If
the outstanding shares of Common Stock are changed or converted into, exchanged
or exchangeable for, a different number or kind of shares or other securities of
CIGNA or of another corporation, by reason of a reorganization, merger,
consolidation, reclassification or combination, the Committee shall make an
appropriate adjustment in the number and/or kind of shares that may be awarded
under this Plan.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    4.4           Payment
of the Award.

    

    
      	
              (a)

            	
              Payment
      of an Award in the form of cash or Common Stock shall be made on or before
      March 15, but no earlier than January 1, of the calendar year following
      the close of the Performance Period.  CIGNA Corporation shall
      issue and deposit any Award in the form of Common Stock into the stock
      account maintained for the Participant under the CIGNA
    LTIP.

            

    

    

    
      	
              (c)

            	
              The
      Participant may, in accordance with Section 409A, voluntarily defer
      receipt of an Award in the form of cash or Common Stock under the terms of
      the Deferred Compensation Plan.  Any interest rate or
      hypothetical investment return credited on a voluntarily deferred Award
      shall be one that will produce a rate of return not considered to be an
      impermissible increase in compensation under Section
    162(m).

            

    

    

    
      	
              (d)

            	
              The
      Employer shall have the right to deduct from any cash Award any applicable
      Federal, state and local income and employment taxes and any other amounts
      that the Employer is required to deduct.  Deductions from an
      Award in the form of Common Stock shall be governed by Section 15.6 of the
      CIGNA LTIP and the terms of the
Award.

            

    

    

    4.5           Eligibility
for Payments.

    

    
      	
              (a)

            	
              Except
      as otherwise provided in this Section 4.5, a Participant shall be eligible
      to receive an Award for a Performance Period only if the Participant is
      employed by the Company continuously from the beginning of the Performance
      Period to the date of payment of the
Award.

            

    

    

    
      	
              (b)

            	
              Under
      paragraph 4.5(a), a leave of absence that lasts less than three months and
      that is approved in accordance with applicable Company policies is not a
      break in continuous employment.  In the case of a leave of
      absence of three months or longer, the Committee shall determine whether
      the leave of absence constitutes a break in continuous
      employment.

            

    

    

    
      	
              (c)

            	
              If
      a Participant’s Termination of Employment occurs after the end of a
      Performance Period but before the Committee makes an Award under Section
      4.3, and the Termination of Employment is on account of Retirement, death
      or Disability, the Committee shall determine whether to make such an Award
      to or on behalf of the Participant.

            

    

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    ARTICLE
5

    Administration

    

    5.1           General
Administration.  The Plan is to be administered by the
Committee, subject to such requirements for review and approval by the Board as
the Board may establish.  Subject to the terms and conditions of the
Plan, the Committee is authorized and empowered in its sole discretion to select
Participants and to make Awards in such amounts and upon such terms and
conditions as it shall determine.

    

    5.2           Administrative
Rules.  The Committee shall have full power and authority to
adopt, amend and rescind administrative guidelines, rules and regulations
pertaining to this Plan and to interpret the Plan and rule on any questions
respecting any of its provisions, terms and conditions.

    

    5.3           Committee Members Not
Eligible.  No member of the Committee shall be eligible to
participate in this Plan.

    

    5.4           Decisions
Binding.  All decisions of the Committee concerning this Plan
shall be binding on CIGNA and its Subsidiaries and their respective boards of
directors, and on all Participants and other persons claiming rights under the
Plan.

    

    5.5           Section 162(m); Shareholder
Approval.  Awards under this Plan are intended to satisfy the
applicable requirements for the performance-based compensation exception under
Section 162(m).  It is intended that the Plan be administered,
interpreted and construed so that Award payments remain tax deductible to the
Company.  Any Awards under this Plan shall be contingent upon
shareholder approval of the Plan in accordance with Section 162(m) and
applicable Treasury regulations.  Unless and until such shareholder
approval is obtained, no Award shall be made under this Plan.

    

    ARTICLE
6

    Amendments;
Termination

    

    The Plan
may be amended or terminated by the Board or Committee.  All
amendments to this Plan, including an amendment to terminate the Plan, shall be
in writing.  An amendment shall not be effective without the prior
approval of the shareholders of CIGNA Corporation if such approval is necessary
to continue to qualify Awards as performance-based compensation under Section
162(m), or otherwise under Internal Revenue Service or SEC regulations, the
rules of the New York Stock Exchange or any other applicable law or
regulations.  Unless otherwise expressly provided by the Board or
Committee, no amendment to this Plan shall apply to Awards made before the
effective date of the amendment.  A Participant’s rights with respect
to any Awards made to him may not be abridged by any amendment, modification or
termination of the Plan without his individual consent.

    

    
      
        
        

      

      
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    ARTICLE
7

    Other
Provisions

    

    7.1           Duration of the
Plan.  The Plan shall apply to Awards for Performance Periods
beginning after December 31, 2006 and shall remain in effect until all Awards
made under this Plan have been paid or forfeited under the terms of this Plan,
and all Performance Periods related to Awards made under the Plan have
expired.

    

    7.2           Awards Not
Assignable.  No Award, or any right thereto, shall be
assignable or transferable by a Participant except by will or by the laws of
descent and distribution.  Any other attempted assignment or
alienation shall be void and of no force or effect.

    

    7.3           Participant’s
Rights.  The right of any Participant to receive any Award
payments under the provisions of the Plan shall be an unsecured claim against
the general assets of the Employer. The Plan shall not create, nor be construed
in any manner as having created, any right by a Participant to any Award for a
Performance Period because of a Participant’s participation in the Plan for any
prior Performance Period, or because the Committee has made a written
certification under Section 4.2 of the Plan for the Performance
Period.

    

    7.4           Termination of
Employment.  CIGNA and each Subsidiary retain the right to
terminate the employment of any employee at any time for any reason or no
reason, and an Award is not, and shall not be construed in any manner to be, a
waiver of such right.

    

    7.5           Successors.  Any
successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of CIGNA’s business or assets, shall
assume CIGNA’s liabilities under this Plan and perform any duties and
responsibilities in the same manner and to the same extent that CIGNA would be
required to perform if no such succession had taken place.

    

    7.6           References.  All
statutory and regulatory references in this Plan include successor
provisions.

    

    7.7           Controlling
Law.  This Plan shall be construed and enforced according to
the laws of the Commonwealth of Pennsylvania, without regard to Pennsylvania
conflict of law rules, to the extent not preempted by federal law, which shall
otherwise control.

     

     

    7

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