Document:

Exhibit 10.10

 

THE
CHUBB CORPORATION

LONG-TERM STOCK INCENTIVE PLAN

FOR NON-EMPLOYEE DIRECTORS (2004)

 

PERFORMANCE
SHARE AWARD AGREEMENT

 

This PERFORMANCE SHARE AWARD AGREEMENT dated as of April 27,
2005, is by and between The Chubb Corporation (the “Corporation”) and [            ]
(the “Participant”), pursuant to The Chubb Corporation Long-Term Stock
Incentive Plan for Non-Employee Directors (2004) (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 Participant has been granted Performance Shares;
and

 

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

 

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

 

1.                                       Grant
of Performance Shares.  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 [            ]  Performance Shares (the “Award”).  (1)

 

2.                                       Payment
of Earned Performance Shares.

 

(a)                                  Settlement
of Performance Shares.  Subject to
the provisions of this Section 2 and Section 3(e), the Payment Value
of each Performance Share covered by the Award which the Committee determines,
in writing, to be earned pursuant to Section 3 below shall be paid by the
Corporation as soon as administratively practicable after (but no later than 21⁄2
months after the calendar

 

(1)  The number
of Performance Shares shall be equal to the quotient of (i) $67,500 divided by
(ii) the average of the high and low trading prices of the Stock on the Grant
Date, rounded up to the nearest whole number.

 

 

year end coincident with)
the end of the Performance Cycle described in Section 3(a).  Payments hereunder shall be made in cash,
shares of Stock, or a combination thereof, as determined by the Committee in
its sole discretion.

 

(b)                                 Voluntary
Deferral.  Notwithstanding the
provisions of Section 2(a), the Participant may elect, by election filed
with the Corporation (and on a form acceptable to the Committee) not later than
June 30, 2007 and subject to such terms and conditions as the Committee
may specify, to have any payment that may become due in respect of Performance
Shares covered by the Award deferred until such later time as shall be
specified in such election (or, if applicable, the date determined pursuant to Section 2(c)).

 

(c)                                  Mandatory Deferral of Payment of Earned Performance
Shares.  Notwithstanding anything contained in Section 2(a)
or 2(b) to the contrary (unless the payment date elected pursuant to Section 2(b)
is later than the payment date specified herein, in which case Section 2(b)
shall control), if the Corporation’s Ending Average Value is less than the
Corporation’s Beginning Average Value (as such terms are defined in Section 3(c)),
no settlement shall be made in respect of any Performance Shares earned in
accordance with Section 3  until the first date the
Participant has ceased to be a member of the Board of Directors and has
separated from service from the Corporation and all other members of the
Corporation’s controlled group of entities. 
Once the condition described in the immediately preceding sentence has
been satisfied, settlement shall occur as soon as practicable thereafter, in
cash, shares of Stock, or a combination thereof, as determined by the Committee
in its sole discretion.

 

3.                                       Vesting
Criteria Applicable to Performance Shares.

 

(a)                                  Performance
Cycle.  The Performance Cycle for
this Award shall commence on May 1, 2005, and shall end on December 31,
2007.

 

(b)                                 Performance
Goal.  The Performance Goal for the
Performance Cycle is the total return per share of Stock to the Corporation’s
shareholders, inclusive of dividends paid (regardless of whether paid in cash
or property, which dividends shall be deemed reinvested in Stock), during the
Performance Cycle in comparison to the total return per share of stock,
inclusive of dividends paid (regardless of whether paid in cash or property,
which dividends shall be deemed reinvested in stock) achieved by the companies
(i) which are in the Standard & Poors 500 Index (the “S&P 500”)
on the date the Performance Cycle begins and (ii) which continue to file
public reports pursuant to the Act for the entirety of the Performance Cycle
(such companies, the “Comparison Companies”).  For the avoidance of doubt, a company
included in the S&P 500 on the date the Performance Cycle commences that is
not included in the S&P 500 at the

 

 

conclusion of the
Performance Cycle will be a Comparison Company as long as it files public
reports pursuant to the Act for the entire Performance Cycle (and any company
first included in the S&P 500 after the start of the Performance Cycle will
not be a Comparison Company).

 

(c)                                  Comparison
of Total Shareholder Return.  Except
as provided in Section 4, the Performance Shares covered by the Award
shall be deemed earned based on where the Corporation’s total shareholder
return during the Performance Cycle ranks in relation to the total shareholder
returns of the Comparison Companies during such period.  For purposes of calculating the total
shareholder return of the Corporation and the Comparison Companies during the
Performance Cycle, the value of each such company’s stock at the beginning and
end of the Performance Cycle shall be established based on the average of the
averages of the high and low trading prices of the applicable stock on the
principal exchange on which the stock trades for the 15 trading days occurring
immediately prior to the beginning or end of the Performance Cycle, as the case
may be.  Such averages for each such
company (including the Corporation) shall be referred to herein as the “Beginning
Average Value” and the “Ending Average Value.”  As soon as practicable after the completion
of the Performance Cycle, the total shareholder returns of the Comparison
Companies will be calculated and ranked from highest to lowest.  The Corporation’s total shareholder return
will then be ranked in terms of which percentile it would have placed in among
the Comparison Companies.  In calculating
the total shareholder return with respect to either the Corporation or any of
the Comparison Companies, the Committee shall make or shall cause to be made
such appropriate adjustments to the calculation of total shareholder return for
such entity (including, without limitation, adjusting the Beginning Average
Value) as shall be necessary or appropriate to avoid an artificial increase or
decrease in such return as a result of a stock split (including a reverse stock
split), recapitalization or other similar event affecting the capital structure
of such entity that does not involve the issuance of the entity’s securities in
exchange for money, property or other consideration.

 

(d)                                 Percentage
of Performance Shares Earned.  The
extent to which Performance Shares shall become earned shall be determined
according to the following schedule:

 

 

	
  Relative

  Performance

  Level Percentile

  	
   

  	
  Percent of

  Performance

  Shares Earned

  	
   

  
	
  85th or higher

  	
   

  	
  200

  	
  %

  
	
  50th

  	
   

  	
  100

  	
  %

  
	
  25th

  	
   

  	
  50

  	
  %

  
	
  Under 25th

  	
   

  	
  0

  	
  %

  

 

To the extent that the
Corporation’s total shareholder return ranks in a percentile between the 25th
and the 50th percentile, or between the 50th and the 85th
percentile, of comparative performance, then the number of Performance
Shares earned shall be determined by multiplying the relative percentile of
comparative performance achieved by the Corporation by two (e.g., if the
Corporation’s total shareholder return would have placed in the 40th
percentile, then 80% of the Performance Shares covered by the Award become
earned; if the Corporation’s total shareholder return would have placed in the
75th percentile, then 150% of the Performance Shares covered by the
Award become earned).

 

(e)                                  Termination
of Service on the Board of Directors. 
The Participant’s cessation of services as a member of the Board of
Directors for any reason shall have no effect on the rights and entitlements of
the Participant to receive payment in respect of the Performance Shares; provided,
however, that if the Participant’s service on the Board of Directors is
terminated for cause, as determined by the Committee (or if the Committee
determines that the Participant resigned from the Board of Directors in
anticipation of being removed for cause), then the Participant shall forfeit
any and all rights in respect of the Performance Shares covered by the Award
and such Performance Shares shall be immediately forfeited and cancelled without
further action by the Corporation or the Participant as of the date of such
termination of service.

 

4.                                       Change
in Control.  Notwithstanding anything
in Section 2 or 3 to the contrary, in the event a Change in Control
occurs, Performance Shares covered by the Award not previously forfeited
pursuant to Section 3 shall be treated in accordance with Section 9
of the Plan.

 

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 its sole discretion, and in such manner as
the Committee may deem equitable, adjust any or all of the number and kind of
Performance Shares 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 Performance Shares subject to this Award shall always
be a whole number.

 

6.                                       Restrictions
on Transfer.  Performance Shares 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(a)
of the Plan) with the permission of, and subject to such conditions as may be
imposed by, the Committee.

 

7.                                       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 specified in Section 2
or 4, the Participant shall have no rights as a shareholder.

 

8.                                       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.

 

9.                                       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).

 

10.                                 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.

 

11.                                 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.

 

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

 

13.                                 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:

  	
   

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  ParticipantExhibit 10.11

 

THE CHUBB
CORPORATION

LONG-TERM STOCK INCENTIVE PLAN 

FOR NON-EMPLOYEE DIRECTORS (2004)

 

STOCK UNIT
AGREEMENT

 

STOCK
UNIT AGREEMENT, dated as of March 3, 2005, by and between The Chubb Corporation
(the “Corporation”) and [              ]
(the “Participant”), pursuant to The Chubb Corporation Long-Term Stock
Incentive Plan for Non-Employee Directors (2004) (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 Participant has been granted Stock
Units; and

 

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

 

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

 

1.             Grant of 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 [            ]
Stock Units (the “Award”).(1)

 

2.             Restrictions on Transfer.  Until settlement of the Stock Units in
accordance with Section 5 or 7, the 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 

 

(1)   The number of Stock Units shall be equal to
the quotient of (i) $22,500 divided by (ii) the average of the high and low
trading prices of the Stock on the Grant Date, rounded up to the nearest whole
number.

 

 

11(a) of the Plan) with the permission of, and subject to such
conditions as may be imposed by, the Committee.

 

3.             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 for in Section 5 or 7, the Participant shall have no rights
as a shareholder.

 

4.             Dividend Equivalents.  Without limiting the generality of the
foregoing, until settlement of the Stock Units in accordance with Section 5 or
7, as soon as practicable after 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 Stock Units.

 

5.             Settlement of Stock Units.  Subject to the provisions of Section 7, the
Corporation shall deliver to the Participant that number of shares of Stock as
is equal to the number of Stock Units covered by the Award as soon as
practicable after the third anniversary of the Grant Date, but no later than
the last day of the taxable year in which such third anniversary falls.  Notwithstanding the immediately preceding
sentence, but subject to such terms and conditions as the Committee may
specify, if the Participant shall have filed an election with the Corporation
(and on a form acceptable to the Committee) not later than the December 31
preceding the Grant Date, the shares of Stock deliverable in respect of Stock
Units shall be issued at such later time as shall be specified in such
election.

 

6.             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 its sole discretion, and in such manner as
the Committee may deem equitable, adjust any or all of the number and kind of
units (or other property) 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
Stock Units subject to this Award shall always be a whole number.

 

 

7.             Termination of Service as a
Member of the Board.  Except as
otherwise expressly provided below, if the Participant’s service as a member of
the Board of Directors terminates for any reason, then 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 Stock Units covered by the Award.  Such delivery shall occur as soon as
practicable after the Participant’s service on the Board of Directors
terminates (but no later than the last day of the taxable year in which the
Participant’s service terminates, or 30 days thereafter, if later), or if
later, on the date specified in a deferral election form filed in accordance
with Section 5.  Notwithstanding anything
in this Agreement to the contrary, if the Participant’s service on the Board of
Directors is terminated for cause, as determined by the Committee (or if the
Committee determines that the Participant resigned from the Board of Directors
in anticipation of being removed for cause), then the Participant shall forfeit
any and all rights in respect of the Stock Units covered by the Award and such
Stock Units shall be immediately forfeited and cancelled without further action
by the Corporation or the Participant as of the date of such termination of
service.

 

8.             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.

 

9.             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).

 

10.           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.

 

11.           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.

 

 

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

 

13.           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:

  	
   

  	
   

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

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