Document:

AMENDED AND RESTATED KATY INDUSTRIES, INC. 1997 LONG-TERM INCENTIVE PLAN

    Exhibit
      10.20

    

    AMENDED
      AND RESTATED

    KATY
      INDUSTRIES, INC.

    1997
      LONG-TERM INCENTIVE PLAN

     

    Article
      1. Establishment, Objectives, and Duration

    

    1.1 Establishment
      of the Plan. Katy Industries, Inc., a Delaware corporation (hereinafter referred
      to as the "Company"), hereby establishes an incentive compensation plan to
      be
      known as the "Katy Industries, Inc. 1997 Long-Term Incentive Plan" (hereinafter
      referred to as the "Plan"), as set forth in this document. The Plan permits
      the
      grant of Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation
      Rights, Restricted Stock, Performance Shares and Performance Units, Cash Bonus
      Awards, and Other Incentive Awards.

    

    Subject
      to approval by the Company's stockholders, the Plan shall be effective as of
      December 9, 1997 (the "Effective Date") and shall remain in effect as provided
      in Section 1.3 hereof.

    

    1.2 Objectives
      of the Plan. The objectives of the Plan are to optimize the profitability and
      growth of the Company through incentives which are consistent with the Company's
      goals and which link the personal interests of Participants to those of the
      Company's stockholders; to provide Participants with an incentive for excellence
      in individual performance; and to promote teamwork among
      Participants.

    

    The
      Plan
      is further intended to provide flexibility to the Company in its ability to
      motivate, attract, and retain the services of Participants who make significant
      contributions to the Company's success and to allow Participants to share in
      the
      success of the Company.

    

    1.3 Duration
      of the Plan. The Plan shall commence on the Effective Date, as described in
      Section 1.1 hereof, and shall remain in effect, subject to the right of the
      Board of Directors to amend or terminate the Plan at any time pursuant to
      Article 17 hereof, until all Shares subject to it shall have been purchased
      or
      acquired according to the Plan' provisions. However, in no event may an Award
      be
      granted under the Plan on or after December 9, 2007.

     

    Article
      2. Definitions

    

    Whenever
      used in the Plan, the following terms shall have the meanings set forth below,
      and when the meaning is intended, the initial letter of the word shall be
      capitalized:

    

    2.1 "Award"
      means, individually or collectively, a grant under this Plan of Nonqualified
      Stock Options, Incentive Stock Options, Stock Appreciation Rights, Restricted
      Stock, Performance Shares or Performance Units, Cash Bonus Awards, or Other
      Incentive Awards.

    

    2.2 "Award
      Agreement" means an agreement entered into by the Company and each Participant
      setting forth the terms and provisions applicable to Awards granted under this
      Plan.

    

    2.3 "Beneficial
      Owner" or "Beneficial Ownership" shall have the meaning ascribed to such term
      in
      Rule 13d-3 of the General Rules and Regulations under the Exchange
      Act.

    

    2.4 "Board"
      or "Board of Directors" means the Board of Directors of the
      Company.

    

    2.5 "Cash
      Bonus Awards" means cash bonuses granted pursuant to Article 10
      herein.

    

    2.6 "Change
      in Control" of the Company means, and shall be deemed to have occurred upon,
      any
      of the following events:

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (a) Any
      Person (other than those Persons in control of the Company as of the Effective
      Date, or other than a trustee or other fiduciary holding securities under an
      employee benefit plan of the Company, or a corporation owned directly or
      indirectly by the stockholders of the Company in substantially the same
      proportions as their ownership of stock of the Company) becomes the Beneficial
      Owner, directly or indirectly, of securities of the Company representing thirty
      percent (30%) or more of the combined voting power of the Company's then
      outstanding securities; or

    

    (b) During
      any period of two (2) consecutive years (not including any period prior to
      the
      Effective Date), individuals who at the beginning of such period constitute
      the
      Board (and any new Director, whose election by the Company's stockholders was
      approved by a vote of at least two-thirds (2/3) of the Directors then still
      in
      office who either were Directors at the beginning of the period or whose
      election or nomination for election was so approved), cease for any reason
      to
      constitute a majority thereof; or

    

    (c) The
      stockholders of the Company approve: (i) a plan of complete liquidation of
      the
      Company; or (ii) an agreement for the sale or disposition of all or
      substantially all the Company's assets; or (iii) a merger, consolidation, or
      reorganization of the Company with or involving any other corporation, other
      than a merger, consolidation, or reorganization that would result in the voting
      securities of the Company outstanding immediately prior thereto continuing
      to
      represent (either by remaining outstanding or by being converted into voting
      securities of the surviving entity) at least fifty percent (50%) of the combined
      voting power of the voting securities of the Company (or such surviving entity)
      outstanding immediately after such merger, consolidation, or
      reorganization.

    

    However,
      in no event shall a "Change in Control" be deemed to have occurred, with respect
      to a Participant, if the Participant is part of a purchasing group which
      consummates the Change in Control transaction. A Participant shall be deemed
      "part of a purchasing group" for purposes of the preceding sentence if the
      Participant is an equity participant in the purchasing company or group (except
      for: (i) passive ownership of less than one percent (1%) of the stock of the
      purchasing company; or (ii) ownership of equity participation in the purchasing
      company or group which is otherwise not significant, as determined prior to
      the
      Change in Control by a majority of the nonemployee continuing
      Directors).

    

    (d) For
      any
      awards issued under this Plan on or after June 28, 2001, “Change in Control” of
      the Company means, and shall be deemed to have occurred upon, any of the
      following events: 

    

    (i) a
      sale of
      100% of the Company’s outstanding capital stock, as may be outstanding from time
      to time;

    

    (ii) a
      sale of
      all or substantially all of the Company’s operating Subsidiaries or assets; or

    

    (iii) a
      transaction or series of transactions in which any third party acquires an
      equity ownership in the Company greater than that held by KKTY Holding Company,
      L.L.C. and in which Kohlberg & Co., L.L.C. relinquishes its right to
      nominate a majority of the candidates for election to the board of
      directors.

    

    For
      purposes of this Section 2.6(d), “Operating Subsidiary” shall mean any
      Subsidiary owning assets with an aggregate fair market value in excess of
      $50,000.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.7 "Code"
      means the Internal Revenue Code of 1986, as amended from time to
      time.

    

    2.8 "Committee"
      means the Compensation Committee of the Board, as specified in Article 3
      herein.

    

    2.9 "Company"
      means Katy Industries, Inc., a Delaware corporation, and, subject to the
      Committee's discretion, where the context so indicates, the Company's
      Subsidiaries, as well as any successor to any of such entities as provided
      in
      Article 21 herein.

    

    2.10 "Director"
      means any individual who is a member of the Board of Directors of the
      Company.

    

    2.11 "Disability"
      shall have the meaning ascribed to such term in the Participant's governing
      long-term disability plan.

    

    2.12 "Effective
      Date" shall have the meaning ascribed to such term in Section 1.1
      hereof.

    

    2.13 "Employee"
      means any nonunion employee of the Company. Nonemployee Directors shall not
      be
      considered Employees under this Plan unless specifically designated
      otherwise.

    

    2.14 "Exchange
      Act" means the Securities Exchange Act of 1934, as amended from time to time,
      or
      any successor act thereto.

    

    2.15 "Fair
      Market Value" shall be determined on the basis of the closing sale price on
      the
      principal securities exchange on which the Shares are publicly traded or, if
      there is no such sale on the relevant date, then on the last previous day on
      which a sale was reported.

    

    2.16 "Freestanding
      SAR" means an SAR that is granted independently of any Options, as described
      in
      Article 7 herein.

    

    2.17 "Incentive
      Stock Option" or "ISO" means an option to purchase Shares granted under Article
      6 herein and which is designated as an Incentive Stock Option and which is
      intended to meet the requirements of Code Section 422.

    

    2.18 "Insider"
      shall mean an individual who is, on the relevant date, an officer, director
      or
      ten percent (10%) beneficial owner of any class of the Company's equity
      securities that is registered pursuant to Section 12 of the Exchange Act, all
      as
      defined under Section 16 of the Exchange Act.

    

    2.19 "Named
      Executive Officer" means a Participant who, as of the date of vesting and/or
      payout of an Award, as applicable, is one of the group of "covered employees",
      as defined in the regulations promulgated under Code Section 162(m), or any
      successor statute.

    

    2.20 "Nonemployee
      Director" means an individual who is a member of the Board of Directors of
      the
      Company but who is not an Employee of the Company.

    

    2.21 "Nonqualified
      Stock Option" or "NQSO" means an option to purchase Shares granted under Article
      6 herein and which is not intended to meet the requirements of Code Section
      422.

    

    2.22 "Option"
      means an Incentive Stock Option or a Nonqualified Stock Option, as described
      in
      Article 6 herein.

    

    2.23 "Option
      Price" means the price at which a Share may be purchased by a Participant
      pursuant to an Option.

    

    2.24 "Other
      Incentive Award" means an award granted pursuant to Article 11
      hereof.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.25 "Participant"
      means any individual designated as a participant in the Plan by the Committee
      in
      accordance with Section 5.1 and who has an outstanding Award granted under
      the
      Plan.

    

    2.26 "Performance-Based
      Exception" means the performance-based exception from the tax deductibility
      limitations of Code Section 162(m).

    

    2.27 "Performance
      Period" means the time period during which performance goals must be achieved
      with respect to an Award, as determined by the Committee.

    

    2.28 "Performance
      Share" means an Award granted to a Participant, as described in Article 9
      herein.

    

    2.29 "Performance
      Unit" means an Award granted to a Participant, as described in Article 9
      herein.

    

    2.30 "Period
      of Restriction" means the period during which the transfer of Shares of
      Restricted Stock is limited in some way (based on the passage of time, the
      achievement of performance goals, or upon the occurrence of other events as
      determined by the Committee, at its discretion), and the Shares are subject
      to a
      substantial risk of forfeiture, as provided in Article 8 herein.

    

    2.31 "Person"
      shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange
      Act and used in Sections 13(d) and 14(d) thereof, including a "group" as defined
      in Section 13(d) thereof.

    

    2.32 "Restricted
      Stock" means an Award granted to a Participant pursuant to Article 8
      herein.

    

    2.33 "Retirement"
      means a voluntary termination of employment after age fifty-five.

    

    2.34 "Shares"
      means the shares of Common Stock, par value $1.00 per share, of the
      Company.

    

    2.35 "Stock
      Appreciation Right" or "SAR" means an Award, granted alone or in connection
      with
      a related Option, designated as an SAR, pursuant to the terms of Article 7
      herein.

    

    2.36 "Subsidiary"
      means any corporation, partnership, joint venture, affiliate, or other entity
      in
      which the Company has a majority voting interest, and which the Committee
      designates as a participating entity in the Plan.

    

    2.37 "Tandem
      SAR" means an SAR that is granted in connection with a related Option pursuant
      to Article 7 herein, the exercise of which shall require forfeiture of the
      right
      to purchase a Share under the related Option (and when a Share is purchased
      under the Option, the Tandem SAR shall similarly be canceled).

     

    Article
      3. Administration

    

    3.1 The
      Committee. The Plan shall be administered by the Board, or by any committee
      appointed by the Board. The Board may delegate to the Committee any or all
      of
      the administration of the Plan. To the extent that the Board has delegated
      to
      the Committee any authority and responsibility under the Plan, all applicable
      references to the Board in the Plan shall be to the Committee. To the extent
      that the Board has not delegated to the Committee any authority and
      responsibility under the Plan, all applicable references to the Committee in
      the
      Plan shall be to the Board. The Committee shall have the authority to delegate
      administrative duties to officers or Directors of the Company.

    

    3.2 Authority
      of the Committee. Except as limited by law or by the Certificate of
      Incorporation or Bylaws of the Company, and subject to the provisions herein,
      the Committee shall have full power to select Employees and other key
      individuals performing services for the Company who shall participate in the
      Plan; determine the sizes and types of Awards; determine the terms and
      conditions of Awards in a manner consistent with the Plan; construe and
      interpret the Plan and any agreement or instrument entered into under the Plan;
      establish, amend, or waive rules and regulations for the Plan's administration;
      and (subject to the provisions of Article 17 herein) amend the terms and
      conditions of any outstanding Award to the extent such terms and conditions
      are
      within the discretion of the Committee as provided in the Plan. Further, the
      Committee shall make all other determinations which may be necessary or
      advisable for the administration of the Plan. As permitted by law, the Committee
      may delegate its authority as identified herein.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      Committee may act only by a majority of its members in office, except that
      the
      members thereof may authorize any one or more of their members or any officer
      of
      the Company to execute and deliver documents or to take any other ministerial
      action on behalf of the Committee with respect to Awards made or to be made
      to
      Plan Participants.

    

    3.3 Decisions
      Binding. All determinations and decisions made by the Committee pursuant to
      the
      provisions of the Plan and all related orders and resolutions of the Board
      shall
      be final, conclusive and binding on all persons, including the Company, its
      stockholders, Employees, Participants, and their estates and
      beneficiaries.

     

    Article
      4. Shares Subject to the Plan and Maximum Awards

    

    4.1 Number
      of
      Shares Available for Grants. Subject to adjustment as provided in
      Section 4.3 herein, the number of Shares hereby reserved for issuance under
      the Plan shall be eight hundred and seventy-five thousand (875,000); provided,
      however, that a minimum number of three hundred and seventy-five thousand
      (375,000) Shares must be granted in the form of Stock Appreciation Rights
      granted pursuant to Article 7 herein. In addition, the aggregate maximum number
      of Shares of Restricted Stock which may be granted pursuant to Article 8 shall
      be two hundred and fifty thousand (250,000). Shares issued pursuant to the
      Plan
      may be either authorized unissued shares, treasury shares, reacquired shares,
      or
      any combination thereof.

    

    Unless
      and until the Committee determines that an Award to a Named Executive Officer
      shall not be designed to comply with the Performance-Based Exception, the
      following rules shall apply to grants of such Awards under the
      Plan:

    

    (a) Stock
      Options. The maximum aggregate number of Shares that may be granted in the
      form
      of Stock Options, pursuant to any Award granted in any one fiscal year to any
      one single Participant shall be two hundred and fifty thousand
      (250,000).

    

    (b) SARs.
      The
      maximum aggregate number of Shares that may be granted in the form of Stock
      Appreciation Rights, pursuant to any Award granted in any one fiscal year to
      any
      one single Participant shall be two hundred and fifty thousand
      (250,000).

    

    (c) Restricted
      Stock. The maximum aggregate grant with respect to Awards of Restricted Stock
      granted in any one fiscal year to any one Participant shall be one hundred
      thousand (100,000) Shares.  

    

    (d) Performance
      Shares/Performance Units/Cash Bonus Awards/Other Incentive Awards. The maximum
      aggregate payout (determined as of the end of the applicable performance period)
      with respect to Awards of Performance Shares, Performance Units, Other Incentive
      Awards, or Cash Bonus Awards granted in any one fiscal year to anyone
      Participant shall not exceed the value of one hundred thousand (100,000)
      Shares.

    

    4.2 Lapsed
      Awards. If any Award granted under this Plan is canceled, terminates, expires,
      or lapses for any reason (with the exception of the termination of a Tandem
      SAR
      upon exercise of the related Option, or the termination of a related Option
      upon
      exercise of the corresponding Tandem SAR), any Shares subject to such Award
      again shall be available for the grant of an Award under the Plan.

    

    4.3 Adjustments
      in Authorized Shares. In the event of any change in corporate capitalization,
      such as a stock split, or a corporate transaction, such as any merger,
      consolidation, separation, including a spin-off, or other distribution of stock
      or property of the Company, any reorganization (whether or not such
      reorganization comes within the definition of such term in Code Section 368)
      or
      any partial or complete liquidation of the Company, such adjustment shall be
      made in the number and class of Shares which may be delivered under Section
      4.1
      herein and in the number and class of and/or price of Shares subject to
      outstanding Awards granted under the Plan, as may be determined to be
      appropriate and equitable by the Committee, in its sole discretion, to prevent
      dilution or enlargement of rights; provided, however, that the number of Shares
      subject to any Award shall always be a whole number.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Article
      5. Eligibility and Participation

    

    5.1 Eligibility.
      Persons eligible to participate in this Plan include all officers, key employees
      of the Company and other key individuals performing services for the Company,
      as
      determined by the Committee, including Employees and other key individuals
      who
      are members of the Board and Employees who reside in countries other than the
      United States of America. Notwithstanding the foregoing, no person who is a
      Director and is also a participant in any stock option plan of the Company
      exclusively for Nonemployee Directors shall be eligible to participate in the
      Plan.

    

    5.2 Actual
      Participation. Subject to the provisions of the Plan, the Committee may, from
      time to time, select from all eligible Employees and other key individuals
      performing services for the Company, those to whom Awards shall be granted
      and
      shall determine the nature and amount of each Award.

     

    Article
      6. Stock Options

    

    6.1 Grant
      of
      Options. Subject to the terms and provisions of the Plan, Options may be granted
      to Participants in such number, and upon such terms, and at any time and from
      time to time as shall be determined by the Committee.

    

    6.2 Award
      Agreement. Each Option grant shall be evidenced by an Award Agreement that
      shall
      specify the Option Price, the duration of the Option, the number of Shares
      to
      which the Option pertains, and such other provisions as the Committee shall
      determine. The Option Agreement also shall specify whether the Option is
      intended to be an ISO within the meaning of Code Section 422, or an NQSO whose
      grant is intended not to fall under the provisions of Code Section
      422.

    

    6.3 Option
      Price. The Option Price for each grant of an Option under this Plan shall be
      at
      least equal to one hundred percent (100%) of the Fair Market Value of a Share
      on
      the date the Option is granted.

    

    6.4 Duration
      of Options. Each Option granted to a Participant shall expire at such time
      as
      the Committee shall determine at the time of grant; provided, however, that
      no
      Option shall be exercisable later than the tenth anniversary date of its
      grant.

    

    6.5 Exercise
      of Options. Options granted under this Article 6 shall be exercisable at such
      times and be subject to such restrictions and conditions as the Committee shall
      in each instance approve, which need not be the same for each grant or for
      each
      Participant.

    

    6.6 Payment.
      Options granted under this Article 6 shall be exercised by the delivery of
      a
      written notice of exercise to the Company, setting forth the number of Shares
      with respect to which the Option is to be exercised, accompanied by full payment
      for the Shares.

    

    The
      Option Price upon exercise of any Option shall be payable to the Company in
      full
      either: (a) in cash or its equivalent, or (b) by tendering previously acquired
      Shares having an aggregate Fair Market Value at the time of exercise equal
      to
      the total Option Price (provided that the Shares which are tendered must have
      been held by the Participant for at least six (6) months prior to their tender
      to satisfy the Option Price), or (c) by a combination of (a) and
      (b).

    

    The
      Committee also may allow cashless exercise as permitted under Federal Reserve
      Board's Regulation T, subject to applicable securities law restrictions, or
      by
      any other means which the Committee determines to be consistent with the Plan's
      purpose and applicable law.

    

    As
      soon
      as practicable after receipt of a written notification of exercise and full
      payment, the Company shall deliver to the Participant, in the Participant's
      name, Share certificates in an appropriate amount based upon the number of
      Shares purchased under the Option(s).

    

    6.7 Restrictions
      on Share Transferability. The Committee may impose such restrictions on any
      Shares acquired pursuant to the exercise of an Option granted under this Article
      6 as it may deem advisable, including, without limitation, restrictions under
      applicable Federal securities laws, under the requirements of any stock exchange
      or market upon which such Shares are then listed and/or traded, and under any
      blue sky or state securities laws applicable to such Shares.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.8 Termination
      of Employment. Each Participant's Option Award Agreement shall set forth the
      extent to which the Participant shall have the right to exercise the Option
      following termination of the Participant's employment with the Company and/or
      its Subsidiaries. Such provisions shall be determined in the sole discretion
      of
      the Committee, shall be included in the Award Agreement entered into with each
      Participant, need not be uniform among all Options issued pursuant to this
      Article 6, and may reflect distinctions based on the reasons for termination
      of
      employment.

    

    6.9 Nontransferability
      of Options.

    

    (a) Incentive
      Stock Options. No ISO granted under the Plan may be sold, transferred, pledged,
      assigned, or otherwise alienated or hypothecated, other than by will or by
      the
      laws of descent and distribution. Further, all ISOs granted to a Participant
      under the Plan shall be exercisable during his or her lifetime only by such
      Participant.

    

    (b) Nonqualified
      Stock Options. Except as otherwise provided in a Participant's Award Agreement,
      no NQSO granted under this Article 6 may be sold, transferred, pledged,
      assigned, or otherwise alienated or hypothecated, other than by will or by
      the
      laws of descent and distribution. Further, except as otherwise provided in
      a
      Participant's Award Agreement, all NQSOs granted to a Participant under this
      Article 6 shall be exercisable during his or her lifetime only by such
      Participant.

     

    Article
      7. Stock Appreciation Rights

    

    7.1 Grant
      of
      SARs. Subject to the terms and conditions of the Plan, SARs may be granted
      to
      Participants at any time and from time to time as shall be determined by the
      Committee. The Committee may grant Freestanding SARs, Tandem SARs, or any
      combination of these forms of SAR.

    

    The
      Committee shall have complete discretion in determining the number of SARs
      granted to each Participant (subject to Article 4 herein) and, consistent with
      the provisions of the Plan, in determining the terms and conditions pertaining
      to such SARs.

    

    The
      grant
      price of a Freestanding SAR shall be at least equal to one hundred percent
      (100%) of the Fair Market Value of a Share on the date of grant of the SAR.
      The
      grant price of Tandem SARs shall equal the Option Price of the related
      Option.

    

    7.2 Exercise
      of Tandem SARs. Tandem SARs may be exercised for all or part of the Shares
      subject to the related Option upon the surrender of the right to exercise the
      equivalent portion of the related Option. A Tandem SAR may be exercised only
      with respect to the Shares for which its related Option is then
      exercisable.

    

    Notwithstanding
      any other provision of this Plan to the contrary, with respect to a Tandem
      SAR
      granted in connection with an ISO: (i) the Tandem SAR will expire no later
      than
      the expiration of the underlying ISO; (ii) the value of the payout with respect
      to the Tandem SAR may be for no more than one hundred percent (100%) of the
      difference between the Option Price of the underlying ISO and the Fair Market
      Value of the Shares subject to the underlying ISO at the time the Tandem SAR
      is
      exercised; and (iii) the Tandem SAR may be exercised only when the Fair Market
      Value of the Shares subject to the ISO exceeds the Option Price of the
      ISO.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    7.3 Exercise
      of Freestanding SARs. Freestanding SARs may be exercised upon whatever terms
      and
      conditions the Committee, in its sole discretion, imposes upon
      them.

    

    7.4 SAR
      Agreement. Each SAR grant shall be evidenced by an Award Agreement that shall
      specify the grant price, the term of the SAR, and such other provisions as
      the
      Committee shall determine.

    

    7.5 Term
      of
      SARs. The term of an SAR granted under the Plan shall be determined by the
      Committee, in its sole discretion; provided, however, that such term shall
      not
      exceed ten (10) years.

    

    7.6 Payment
      of SAR Amount. Upon exercise of an SAR, a Participant shall be entitled to
      receive payment from the Company in an amount determined by
      multiplying:

    

    (a) The
      difference between the Fair Market Value of a Share on the date of exercise
      less
      the grant price; by

    

    (b) The
      number of Shares with respect to which the SAR is exercised.

     

    At
      the
      discretion of the Committee, the payment upon SAR exercise may be in cash,
      in
      Shares of equivalent value, or in some combination thereof.

    

    7.7 Termination
      of Employment. Each SAR Award Agreement shall set forth the extent to which
      the
      Participant shall have the right to exercise the SAR following termination
      of
      the Participant's employment with the Company and/or its Subsidiaries. Such
      provisions shall be determined in the sole discretion of the Committee, shall
      be
      included in the Award Agreement entered into with Participants, need not be
      uniform among all SARs issued pursuant to the Plan, and may reflect distinctions
      based on the reasons for termination of employment.

    

    7.8 Nontransferability
      of SARs. Except as otherwise provided in a Participant's Award Agreement, no
      SAR
      granted under the Plan may be sold, transferred, pledged, assigned, or otherwise
      alienated or hypothecated, other than by will or by the laws of descent and
      distribution. Further, except as otherwise provided in a Participant's Award
      Agreement, all SARs granted to a Participant under the Plan shall be exercisable
      during his or her lifetime only by such Participant.

     

    Article
      8. Restricted Stock

    

    8.1 Grant
      of
      Restricted Stock. Subject to the terms and provisions of the Plan, the
      Committee, at any time and from time to time, may grant Shares of Restricted
      Stock to Participants in such amounts as the Committee shall
      determine.

    

    8.2 Restricted
      Stock Agreement. Each Restricted Stock grant shall be evidenced by an Award
      Agreement that shall specify the Period(s) of Restriction, the number of Shares
      of Restricted Stock granted, and such other provisions as the Committee shall
      determine.

    

    8.3 Transferability.
      Except as provided in this Article 8, the Shares of Restricted Stock granted
      herein may not be sold, transferred, pledged, assigned, or otherwise alienated
      or hypothecated until the end of the applicable Period of Restriction
      established by the Committee and specified in the Restricted Stock Award
      Agreement, or upon earlier satisfaction of any other conditions, as specified
      by
      the Committee in its sole discretion and set forth in the Restricted Stock
      Agreement. All rights with respect to the Restricted Stock granted to a
      Participant under the Plan shall be available during his or her lifetime only
      to
      such Participant.

    

    8.4 Other
      Restrictions. Subject to Article 12 herein, the Committee may impose such other
      conditions and/or restrictions on any Shares of Restricted Stock granted
      pursuant to the Plan as it may deem advisable including, without limitation,
      a
      requirement that Participants pay a stipulated purchase price for each Share
      of
      Restricted Stock, restrictions based upon the achievement of specific
      performance goals (Company-wide, divisional, and/or individual), time-based
      restrictions on vesting following the attainment of the performance goals,
      and/or restrictions under applicable Federal or state securities
      laws.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      Company may retain the certificates representing Shares of Restricted Stock
      in
      the Company's possession until such time as all conditions and/or restrictions
      applicable to such Shares have been satisfied.

    

    Except
      as
      otherwise provided in this Article 8, Shares of Restricted Stock covered by
      each
      Restricted Stock grant made under the Plan shall become freely transferable
      by
      the Participant after the last day of the applicable Period of
      Restriction.

    

    8.5 Voting
      Rights. During the Period of Restriction, Participants holding Shares of
      Restricted Stock granted hereunder may exercise full voting rights with respect
      to those Shares.

    

    8.6 Dividends
      and Other Distributions. During the Period of Restriction, Participants holding
      Shares of Restricted Stock granted hereunder may be credited with regular cash
      dividends paid with respect to the underlying Shares while they are so held.
      The
      Committee may apply any restrictions to the dividends that the Committee deems
      appropriate. 

    

    8.7 Termination
      of Employment. Each Restricted Stock Award Agreement shall set forth the extent
      to which the Participant shall have the right to receive unvested Restricted
      Shares following termination of the Participant's employment with the Company
      and/or its Subsidiaries. Such provisions shall be determined in the sole
      discretion of the Committee, shall be included in the Award Agreement entered
      into with each Participant, need not be uniform among all Shares of Restricted
      Stock issued pursuant to the Plan, and may reflect distinctions based on the
      reasons for termination of employment; provided, however that, except in the
      cases of terminations connected with a Change in Control and terminations by
      reason of death or Disability, the vesting of Shares of Restricted Stock which
      qualify for the Performance-Based Exception and which are held by Named
      Executive Officers shall occur at the time they otherwise would have, but for
      the employment termination.

     

    Article
      9. Performance Units and Performance Shares

    

    9.1 Grant
      of
      Performance Units/Shares. Subject to the terms of the Plan, Performance Units
      and/or Performance Shares may be granted to Participants in such amounts and
      upon such terms, and at any time and from time to time, as shall be determined
      by the Committee.

    

    9.2 Value
      of
      Performance Units/Shares. Each Performance Unit shall have an initial value
      that
      is established by the Committee at the time of grant. Each Performance Share
      shall have an initial value equal to the Fair Market Value of a Share on the
      date of grant. The Committee shall set performance goals in its discretion
      which, depending on the extent to which they are met, will determine the number
      and/or value of Performance Units/Shares that will be paid out to the
      Participant.

    

    9.3 Earning
      of Performance Units/Shares. Subject to the terms of this Plan, after the
      applicable Performance Period has ended, the holder of Performance Units/Shares
      shall be entitled to receive payout on the number and value of Performance
      Units/Shares earned by the Participant over the Performance Period, to be
      determined as a function of the extent to which the corresponding performance
      goals have been achieved.

    

    9.4 Form
      and
      Timing of Payment of Performance Units/ Shares. Payment of earned Performance
      Units/Shares shall be made in a single lump sum within seventy-five (75)
      calendar days following the close of the applicable Performance Period. Subject
      to the terms of this Plan, the Committee, in its sole discretion, may pay earned
      Performance Units/Shares in the form of cash or in Shares (or in a combination
      thereof) which have an aggregate Fair Market Value equal to the value of the
      earned Performance Units/Shares at the close of the applicable Performance
      Period. Such Shares may be granted subject to any restrictions deemed
      appropriate by the Committee.

    

    Prior
      to
      the beginning of each Performance Period, Participants may elect to defer the
      receipt of Performance Unit/Share payout upon such terms as the Committee deems
      appropriate.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    At
      the
      discretion of the Committee, Participants may be entitled to receive any
      dividends declared with respect to Shares which have been earned in connection
      with grants of Performance Units and/or Performance Shares which have been
      earned, but not yet distributed to Participants. In addition, Participants
      may,
      at the discretion of the Committee, be entitled to exercise their voting rights
      with respect to such Shares.

    

    9.5 Termination
      of Employment Due to Death, Disability, or Retirement. In the event the
      employment of a Participant is terminated by reason of death, Disability, or
      Retirement during a Performance Period, the Participant shall receive a prorated
      payout of the Performance Units/Shares. The prorated payout shall be determined
      by the Committee, in its sole discretion, shall be based upon the length of
      time
      that the Participant held the Performance Units/Shares during the Performance
      Period, and shall further be adjusted based on the achievement of the
      preestablished performance goals.

    

    Payment
      of earned Performance Units/Shares shall be made at the time specified by the
      Committee in its sole discretion as set forth in the Participant's Award
      Agreement. Notwithstanding the foregoing, with respect to Covered Employees
      who
      retire during the Performance Period, payments shall be made at the same time
      as
      payments are made to Participants who did not terminate employment during the
      applicable Performance Period.

    

    9.6 Termination
      of Employment for Other Reasons. In the event that a Participant's employment
      terminates for any reason other than those reasons set forth in Section 9.5
      herein, all Performance Units/Shares shall be forfeited by the Participant
      to
      the Company unless determined otherwise by the Committee in its sole discretion
      as set forth in the Participant's Award Agreement. 

    

    9.7 Nontransferability.
      Except as otherwise provided in a Participant's Award Agreement, Performance
      Units/Shares may not be sold, transferred, pledged, assigned, or otherwise
      alienated or hypothecated, other than by will or by the laws of descent and
      distribution. Further, except as otherwise provided in a Participant's Award
      Agreement, a Participant's rights under the Plan shall be exercisable during
      the
      Participant's lifetime only by the Participant or the Participant's legal
      representative.

    

    Article
      10. Cash Bonus Awards

    

    10.1 Grant
      of
      Cash Bonus Awards. Subject to the terms and provisions of the Plan, Cash Bonus
      Awards may be granted to Participants in such amount upon such terms, and at
      any
      time and from time to time as shall be determined by the Committee. The Cash
      Bonus Award pool established pursuant to this Plan shall be two million four
      hundred thousand dollars
      ($2,400,000).

    

    10.2 Form
      and
      Timing of Payment of Cash Bonus Awards. Payment of Cash Bonus Awards shall
      be
      made in cash at such times as established by the Committee subject to the terms
      of the Plan.

     

    Article
      11. Other Incentive Awards

    

    11.1 Grant
      of
      Other Incentive Awards. Subject to the terms and provisions of the Plan, Other
      Incentive Awards may be granted to Participants in such amount, upon such terms,
      and at any time and from time to time as shall be determined by the
      Committee.

    

    11.2 Other
      Incentive Award Agreement. Each Other Incentive Award grant shall be evidenced
      by an Award Agreement that shall specify the amount of the Other Incentive
      Award
      granted, the terms and conditions applicable to such grant, the applicable
      Performance Period and performance goals, and such other provisions as the
      Committee shall determine, subject to the terms and provisions of the
      Plan.

    

    11.3 Nontransferability.
      Except as otherwise provided in a Participant's Award Agreement, Other Incentive
      Awards may not be sold, transferred, pledged, assigned, or otherwise alienated
      or hypothecated, other than by will or by the laws of descent and
      distribution.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    11.4 Form
      and
      Timing of Payment of Other Incentive Awards. Payment of Other Incentive Awards
      shall be made at such times and in such form, either in cash or in Shares (or
      a
      combination thereof) as established by the Committee subject to the terms of
      the
      Plan. Such Shares may be granted subject to any restrictions deemed appropriate
      by the Committee. Without limiting the generality of the foregoing, annual
      incentive awards may be paid in the form of Other Incentive Awards (which may
      or
      may not be subject to restrictions, at the discretion of the
      Committee).

     

    Article
      12. Performance Measures

    

    Unless
      and until the Committee proposes for shareholder vote and shareholders approve
      a
      change in the general performance measures set forth in this Article 12, the
      attainment of which may determine the degree of payout and/or vesting with
      respect to Awards to Named Executive Officers which are designed to qualify
      for
      the Performance-Based Exception, the performance measure(s) to be used for
      purposes of such grants shall be chosen from among the following
      alternatives:

    

    (a) Return
      on
      Assets ("ROA");

    

    (b) Cash
      Flow
      Return on Investment ("CFROI");

    

    (c) Earnings
      Before Interest and Taxes ("EBIT");

    

    (d) Stock
      Price Appreciation;

    

    (e) Total
      Shareholder Return; or

    

    (f) Net
      Earnings.

    

    The
      Committee shall have the discretion to adjust the determinations of the degree
      of attainment of the preestablished performance goals; provided, however, that
      Awards which are designed to qualify for the Performance-Based Exception, and
      which are held by Named Executive Officers, may not be adjusted upward (the
      Committee shall retain the discretion to adjust such Awards
      downward).

    

    In
      the
      event that applicable tax and/or securities laws change to permit Committee
      discretion to alter the governing performance measures without obtaining
      shareholder approval of such changes, the Committee shall have sole discretion
      to make such changes without obtaining shareholder approval. In addition, in
      the
      event that the Committee determines that it is advisable to grant Awards which
      shall not qualify for the Performance-Based Exception, the Committee may make
      such grants without satisfying the requirements of Code Section
      162(m).

     

    Article
      13. Beneficiary Designation

    

    Each
      Participant under the Plan may, from time to time, name any beneficiary or
      beneficiaries (who may be named contingently or successively) to whom any
      benefit under the Plan is to be paid in case of his or her death before he
      or
      she receives any or all of such benefit. Each such designation shall revoke
      all
      prior designations by the same Participant, shall be in a form prescribed by
      the
      Company, and will be effective only when filed by the Participant in writing
      with the Company during the Participant's lifetime. In the absence of any such
      designation, benefits remaining unpaid at the Participant's death shall be
      paid
      to the Participant's estate.

     

    Article
      14. Deferrals

    

    The
      Committee may permit a Participant to defer such Participant's receipt of the
      payment of cash or the delivery of Shares that would otherwise be due to such
      Participant by virtue of the exercise of an Option or SAR, the lapse or waiver
      of restrictions with respect to Restricted Stock, or the satisfaction of any
      requirements or goals with respect to Performance Units/Shares, Cash Bonus
      Awards, or Other Incentive Awards. If any such deferral election is required
      or
      permitted, the Committee shall, in its sole discretion, establish rules and
      procedures for such payment deferrals.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Article
      15. Rights of Employees

    

    15.1 Employment.
      Nothing in the Plan shall interfere with or limit in any way the right of the
      Company to terminate any Participant's employment at any time, nor confer upon
      any Participant any right to continue in the employ of the Company.

    

    For
      purposes of this Plan, a transfer of a Participant's employment between the
      Company and a Subsidiary, or between Subsidiaries, shall not be deemed to be
      a
      termination of employment. Upon such a transfer, the Committee may make such
      adjustments to outstanding Awards as it deems appropriate to reflect the changed
      reporting relationships. 

    

    15.2 Participation.
      No Employee shall have the right to be selected to receive an Award under this
      Plan, or, having been so selected, to be selected to receive a future
      Award.

    

    Article
      16. Change in Control

    

    16.1 Treatment
      of Outstanding Awards. Upon the occurrence of a Change in Control, unless
      otherwise specifically prohibited under applicable laws, or by the rules and
      regulations of any governing governmental agencies or national securities
      exchanges:  

    

    (a) Any
      and
      all Options and SARs granted hereunder shall become immediately exercisable,
      and
      shall remain exercisable throughout their entire term.  

    

    (b) Any
      restriction periods and restrictions imposed on Restricted Shares shall
      lapse.  

    

    (c) The
      target payout opportunities attainable under all outstanding Awards of
      Performance Units and Performance Shares and Other Incentive Awards, but not
      Cash Bonus Awards, shall be deemed to have been fully earned for the entire
      Performance Period(s) as of the effective date of the Change in Control. The
      vesting of all Awards denominated in Shares shall be accelerated as of the
      effective date of the Change in Control, and there shall be paid out to
      Participants within thirty (30) days following the effective date of the Change
      in Control a pro rata number of shares based upon an assumed achievement of
      all
      relevant targeted performance goals and upon the length of time within the
      Performance Period which has elapsed prior to the Change in Control. Awards
      denominated in cash shall be paid pro rata to Participants in cash within thirty
      (30) days following the effective date of the Change in Control, with the
      proration determined as a function of the length of time within the Performance
      Period which has elapsed prior to the Change in Control, and based on an assumed
      achievement of all relevant targeted performance goals. Subject to the approval
      of the Committee, the Cash Bonus Awards may be deemed to have been fully earned
      in the event of a Change in Control.  

     

    (d) Subject
      to Article 17 herein, the Committee shall have the authority to make any
      modifications to the Awards as determined by the Committee to be appropriate
      before the effective date of the Change in Control.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    16.2 Termination,
      Amendment, and Modifications of Change-in-Control Provisions. Notwithstanding
      any other provision of this Plan or any Award Agreement provision, the
      provisions of this Article 16 may not be terminated, amended, or modified to
      affect adversely any Award theretofore granted under the Plan without the prior
      written consent of the Participant with respect to said Participant's
      outstanding Awards; provided, however, that the Board, upon recommendation
      of
      the Committee, may terminate, amend, or modify this Article 16 at any time
      and
      from time to time prior to the date of a Change in Control to affect Awards
      not
      yet granted under the Plan.

     

    Article
      17. Amendment, Modification, and Termination

    

    17.1 Amendment,
      Modification, and Termination. The Board may at any time and from time to time,
      alter, amend, suspend or terminate the Plan in whole or in part; provided,
      however, that unless the Board specifically provides otherwise, any revision
      or
      amendment that would cause the Plan to fail to comply with any requirement
      of
      applicable law, regulation, or rule if such amendment were not approved by
      shareholders, shall not be effective unless and until such approval of
      shareholders of the Company is obtained.

    

    17.2 Awards
      Previously Granted. No termination, amendment, or modification of the Plan
      shall
      adversely affect in any material way any Award previously granted under the
      Plan, without the written consent of the Participant holding such
      Award.

    

    17.3 Compliance
      with Code Section 162(m). At all times when Code Section 162(m) is applicable,
      all Awards granted under this Plan shall comply with the requirements of Code
      Section 162(m); provided, however, that in the event the Committee determines
      that such compliance is not desired with respect to any Award or Awards
      available for grant under the Plan, then compliance with Code Section 162(m)
      will not be required. In addition, in the event that changes are made to Code
      Section 162(m) to permit greater flexibility with respect to any Award or Awards
      available under the Plan, the Committee may, subject to this Article 17, make
      any adjustments it deems appropriate.

     

    Article
      18. Withholding

    

    18.1 Tax
      Withholding. The Company shall have the power and the right to deduct or
      withhold, or require a Participant to remit to the Company, an amount sufficient
      to satisfy Federal, state, and local taxes, domestic or foreign, required by
      law
      or regulation to be withheld with respect to any taxable event arising as a
      result of this Plan. 

    

    18.2 Share
      Withholding. With respect to withholding required upon the exercise of Options
      or SARs, upon the lapse of restrictions on Restricted Stock, or upon any other
      taxable event arising as a result of Awards granted hereunder, Participants
      may
      elect, subject to the approval of the Committee, to satisfy the withholding
      requirement, in whole or in part, by having the Company withhold Shares having
      a
      Fair Market Value on the date the tax is to be determined equal to the minimum
      statutory total tax which could be imposed on the transaction. All such
      elections shall be irrevocable, made in writing, signed by the Participant,
      and
      shall be subject to any restrictions or limitations that the Committee, in
      its
      sole discretion, deems appropriate.

     

    Article
      19. Financial Assistance

    

    If
      the
      Committee determines that such action is advisable, the Company may assist
      any
      person to whom an Award has been granted in obtaining financing from the Company
      (or under any program of the Company approved pursuant to applicable law),
      or
      from a bank or other third party, on such terms as are determined by the
      Committee, and in such amount as is required to accomplish the purposes of
      the
      Plan, including, but not limited to, to permit the exercise of an Award, the
      participation therein, and/or the payment of any taxes in respect thereof.
      Such
      assistance may take any form that the Committee deems appropriate, including,
      but not limited to, a direct loan from the Company, a guarantee of the
      obligation by the Company, or the maintenance by the Company of deposits with
      such bank or third party.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Article
      20. Indemnification

    

    Each
      person who is or shall have been a member of the Committee, or of the Board,
      shall be indemnified and held harmless by the Company against and from any
      loss,
      cost, liability, or expense that may be imposed upon or reasonably incurred
      by
      him or her in connection with or resulting from any claim, action, suit, or
      proceeding to which he or she may be a party or in which he or she may be
      involved by reason of any action taken or failure to act under the Plan and
      against and from any and all amounts paid by him or her in settlement thereof,
      with the Company's approval, or paid by him or her in satisfaction of any
      judgment in any such action, suit, or proceeding against him or her, provided
      he
      or she shall give the Company an opportunity, at its own expense, to handle
      and
      defend the same before he or she undertakes to handle and defend it on his
      or
      her own behalf. The foregoing right of indemnification shall not be exclusive
      of
      any other rights of indemnification to which such persons may be entitled under
      the Company's Articles of Incorporation or Bylaws, as a matter of law, or
      otherwise, or any power that the Company may have to indemnify them or hold
      them
      harmless.

     

    Article
      21. Successors

    

    All
      obligations of the Company under the Plan with respect to Awards granted
      hereunder shall be binding on any successor to the Company, whether the
      existence of such successor is the result of a direct or indirect purchase,
      merger, consolidation, or otherwise, of all or substantially all of the business
      and/or assets of the Company.

     

    Article
      22. Legal Construction

    

    22.1 Gender
      and Number. Except where otherwise indicated by the context, any masculine
      term
      used herein also shall include the feminine; the plural shall include the
      singular and the singular shall include the plural.

    

    22.2 Severability.
      In the event any provision of the Plan shall be held illegal or invalid for
      any
      reason, the illegality or invalidity shall not affect the remaining parts of
      the
      Plan, and the Plan shall be construed and enforced as if the illegal or invalid
      provision had not been included.

    

    22.3 Requirements
      of Law. The granting of Awards and the issuance of Shares under the Plan shall
      be subject to all applicable laws, rules, and regulations, and to such approvals
      by any governmental agencies or national securities exchanges as may be
      required.

    

    22.4 Securities
      Law and Tax Law Compliance. With respect to Insiders, transactions under this
      Plan are intended to comply with all applicable conditions of Rule 16b-3 or
      its
      successors under the 1934 Act. To the extent any provision of the plan or action
      by the Committee fails to so comply, it shall be deemed null and void, to the
      extent permitted by law and deemed advisable by the Committee.

    

    22.5 Stockholder
      Adoption. This Plan shall be submitted to the stockholders of the Company,
      for
      their approval and adoption in accordance with applicable law and Code
      Section 162(m). All Awards made hereunder prior to stockholder approval
      shall be granted contingent upon such approval. If this Plan is not so approved
      and adopted by stockholders, all Awards granted hereunder shall be null and
      void.

     

                   22.6 Governing
      Law. To the extent not preempted by federal law, the Plan, and all agreements
      hereunder, shall be construed in accordance with and governed by the laws of
      the
      State of Delaware.Unassociated Document

    REGISTRATION
      RIGHTS AGREEMENT

    

    This
      Registration Rights Agreement is entered into as of August 8, 2006, between
      CNA
      Financial Corporation, a Delaware corporation (the “Company”),
      and
      Loews Corporation, a Delaware corporation (the “Purchaser”).

    

    Reference
      is made to the Series H Cumulative Preferred Stock Retirement Agreement, dated
      as of August 1, 2006, among the Company and the Purchaser (as amended,
      supplemented or modified from time to time, the “Retirement
      Agreement”).
      The
      execution of this Agreement is a condition to the closing of the transactions
      contemplated by the Retirement Agreement.

    

    The
      parties hereby agree as follows:

     

    1.    
      Definitions

    

    As
      used
      in this Agreement, the following terms shall have the following
      meanings:

    

    Advice:  As
      defined in the last paragraph of Section 4 hereof.

    

    Affiliate:  of
      any specified person shall mean any other person directly or indirectly
      controlling or controlled by or under direct or indirect common control with
      such specified person. For the purposes of this definition, “control,” when used
      with respect to any person, means the power to direct the management and
      policies of such person, directly or indirectly, whether through the ownership
      of voting securities, by contract or otherwise and the terms “affiliated,”
“controlling” and “controlled” have meanings correlative to the
      foregoing.

    

    Agreement:  This
      Registration Rights Agreement, as the same may be amended, supplemented or
      modified from time to time in accordance with the terms hereof.

    

    Business
      Day:  Each
      Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which
      banking institutions in New York, New York are authorized or obligated by law
      or
      executive order to close.

    

    Common
      Stock.  The
      common stock, $2.50 par value per share, of the Company.

    

    Company:  As
      defined in the Recitals hereto.

    

    Controlling
      person:  As
      defined in Section 6(a) hereof.

    

    Disclosure
      Package:  With
      respect to any offering shall mean any preliminary prospectus relating to such
      offering, any Issuer Free Writing Prospectus (as defined in Rule 433 promulgated
      by the SEC pursuant to the Securities Act) used in connection with such offering
      and any final term sheet used in connection with such offering.

    

    Exchange
      Act:  The
      Securities Exchange Act of 1934, as amended, and the rules and regulations
      promulgated by the SEC pursuant thereto.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Holder:  The
      Purchaser and each transferee (including subsequent transferees) of Shares
      that
      are Transfer Restricted Securities registered in the name of the Purchaser
      or
      such transferee.

    

    Indemnified
      Person:  As
      defined in Section 6(a) hereof.

    

    Person:  An
      individual, partnership, corporation, limited liability company, professional
      corporation, trust, unincorporated organization, or a government or agency
      or
      political subdivision thereof.

    

    Prospectus:  The
      prospectus included in any Registration Statement (including, without
      limitation, a prospectus that discloses information previously omitted from
      a
      prospectus filed as part of an effective registration statement in reliance
      upon
      Rule 430A or Rule 430B promulgated pursuant to the Securities Act), as amended
      or supplemented by any prospectus supplement, with respect to the terms of
      the
      offering of any portion of the Transfer Restricted Securities covered by such
      Registration Statement, and all other amendments and supplements to any such
      prospectus, including post-effective amendments, and all material incorporated
      by reference or deemed to be incorporated by reference, if any, in such
      prospectus.

    

    Purchaser:  As
      defined in the Recitals hereto.

    

    Registration
      Request:  As
      defined in Section 2(a) hereto.

    

    Registration
      Statement:  Any
      registration statement of the Company that covers any of the Transfer Restricted
      Securities pursuant to the provisions of this Agreement, including the
      Prospectus, amendments and supplements to such registration statement or
      Prospectus, including pre- and post-effective amendments, all exhibits thereto,
      and all material incorporated by reference or deemed to be incorporated by
      reference, if any, in such registration statement.

    

    Retirement
      Agreement:  As
      defined in the Recitals hereto.

    

    Rule
      144:  Rule
      144 promulgated by the SEC pursuant to the Securities Act, as such Rule may
      be
      amended from time to time, or any similar rule or regulation hereafter adopted
      by the SEC as a replacement thereto having substantially the same effect as
      such
      Rule.

    

    SEC:  The
      Securities and Exchange Commission.

    

    Securities
      Act:  The
      Securities Act of 1933, as amended, and the rules and regulations promulgated
      by
      the SEC thereunder.

    

    Shares:  A
      total of 7,863,258 shares of Common Stock owned by the Purchaser at the time
      of
      any Registration Request or any request by the Purchaser pursuant to Section
      2(b) of this Agreement; provided,
      that
      the maximum number of shares of Common Stock for which the Purchaser may make
      Registration Requests and requests pursuant to Section 2(b) of this Agreement
      is
      7,863,258.

    

    Transfer
      Restricted Securities:  The
      Shares until the earliest of (i) the date on which such Shares have been
      registered effectively pursuant to the Securities Act and disposed of in
      accordance with the Registration Statement or (ii) the date on which such Shares
      are sold 

    
      
        -2-

      

      
         

        
          

        

      

      
         

      

    

    pursuant
      to Rule 144 (or any similar provisions then in effect) or are salable pursuant
      to paragraph (k) of Rule 144.

     

    2.   
      Demand
      and Piggy-back Registrations

    

    (a) Upon
      the
      written request (a “Registration
      Request”)
      to
      register shares of Transfer Restricted Securities by Holders of not less than
      a
      majority of the then outstanding Transfer Restricted Securities, the Company
      will use its reasonable best efforts to file with the SEC as promptly as
      practicable thereafter (but in no event later than thirty (30) days following
      the date of receipt of a Registration Request), a Registration Statement under
      the Securities Act registering the resale of such Transfer Restricted Securities
      and will use its reasonable best efforts to effect the registration of the
      Transfer Restricted Securities under all applicable state securities and blue
      sky laws on or prior to 150 days following the date of receipt of a Registration
      Request. Such request shall state the intended method of disposition of the
      Transfer Restricted Securities sought to be registered, which may include the
      underwritten public offering of such Transfer Restricted Securities. Whenever
      the Company shall be requested to effect the registration of any Transfer
      Restricted Securities under the Securities Act pursuant to this Section 2(a),
      the Company shall promptly give written notice of such proposed registration
      to
      all Holders stating that such Holders have the right to request that any or
      all
      of the Transfer Restricted Securities owned by them be included in such
      registration. The Company shall include in such registration all Transfer
      Restricted Securities with respect to which the Company receives written
      requests from the Holders thereof for inclusion therein (stating the intended
      method of disposition of such Transfer Restricted Securities) if such requests
      are received within 20 calendar days of the Company’s delivery of written notice
      pursuant to the preceding sentence. The Registration Statement shall be on
      Form
      S-1 or S-3 under the Securities Act or another appropriate registration
      permitting registration of such Transfer Restricted Securities for resale by
      the
      Holders in the manner or manners reasonably designated by them. The holders
      shall be entitled to request not more than three (3) such registrations pursuant
      to this Section 2(a). The Company shall use its reasonable best efforts to
      keep
      the Registration Statement effective for a continuous period until such time
      as
      no Transfer Restriction Securities remain outstanding by supplementing and
      amending the Registration Statement to the extent necessary to ensure that
      it is
      available for sales of Transfer Restricted Securities by the holder thereof
      entitled to the benefits of this Section 2(a), and to ensure that it conforms
      with the requirements of this Agreement, the Securities Act and the rules,
      regulations or instructions applicable to the registration form used for such
      Registration Statement.

    

    (b) Piggy-back
      Registration Rights.  If
      the Company at any time proposes or is required to register any of its
      securities under the Securities Act or any applicable state securities or Blue
      Sky laws on a form which permits inclusion of Transfer Restricted Securities,
      it
      will each such time give written notice to all Holders of then existing Transfer
      Restricted Securities of its intentions to do so. Upon the written request
      of
      any such Holder given within 20 days after receipt of any such notice, the
      Company will use its best efforts to cause all such Transfer Restricted
      Securities which such Holders shall have requested be registered to be
      registered under the Securities Act and any applicable state securities or
      blue
      sky laws all to the extent requisite to permit the sale or other disposition
      by
      such Holders of the Transfer Restricted Securities so registered; provided,
      however, if the offering proposed to be made is to be an underwritten public
      offering, and the managing underwriters of such public offering furnish
      a

    
      
        -3-

      

      
         

        
          

        

      

      
         

      

    

    written
      opinion that the total amount of securities to be included in such offering
      would exceed the maximum amount of Securities (as specified in such opinion)
      which can be marketed without materially and adversely affecting such offering,
      then the relative rights to participate in such offering of the Holders of
      Transfer Restricted Securities, Holders of other securities having the right
      to
      include such securities in such registration, and the Company shall be in the
      following order of priority:

    

    First:
      The Person or Persons (including the Company in the case of an offering
      initiated by the Company) requesting such registration shall be entitled to
      participate in accordance with the relative priorities, if any, as shall exist
      among them; and then

    

    Second:
      The Holders of Transfer Restricted Securities and the holders of securities
      of
      the Company which have a right to include such securities in such registration
      shall be entitled to participate pro rata among themselves in accordance with
      the number of outstanding shares of Transfer Restricted Securities which each
      such Holder shall have requested be registered and the number of outstanding
      securities of the Company which a holder thereof shall have requested be
      registered; and then

    

    Third:
      If
      such registration shall have been requested by a Person or Persons other than
      the Company, the Company shall be entitled to include securities in such
      registration.

    

    No
      registrations of Transfer Restricted Securities under this Section 2(b) shall
      relieve the Company of its obligation to effect registrations under Section
      2(a)
      hereof, or shall constitute a registration request by any Holder of Transfer
      Restricted Securities under Section 2(a).

    

    (c) Suspension
      of Registration Statement.  Notwithstanding
      anything to the contrary in this Section 2, the Company may, by delivering
      written notice to the Holders, defer and suspend the filing of any Registration
      Statement covering Transfer Restricted Securities at any time if (i) the Company
      is in possession of material non-public information, (ii) the Company determines
      (based on advice of counsel) that such prohibition is necessary in order to
      avoid a requirement to disclose such material non-public information and (iii)
      the Company determines in good faith that disclosure of such material non-public
      information would have a material adverse effect on the Company and its
      stockholders; provided,
      however,
      that
      upon the public disclosure by the Company of the material non-public information
      described in clause (i) of this paragraph, the suspension of the filing of
      the
      Registration Statement pursuant to this Section 2(c) shall cease and the Company
      shall promptly comply with Section 3(b) hereof. In no event shall any suspension
      of the filing of a Registration Statement pursuant to Section 2(c) exceed sixty
      (60) days or occur more than three (3) times in any twelve (12) month
      period.

     

    3.   
      Registration
      Procedures

    

    In
      connection with the Company’s registration obligations pursuant to Section 2
      above, the Company shall in compliance with the time frames set forth
      above:

    

    (a) prepare
      and file with the SEC a Registration Statement with respect to such Transfer
      Restricted Securities and use reasonable best efforts to cause such Registration
      Statement to be declared effective (unless it shall have become automatically
      effective upon 

    
      
        -4-

      

      
         

        
          

        

      

      
         

      

    

    filing)
      and to keep such Registration Statement effective until such time as none of
      such Transfer Restricted Securities remain outstanding and provide all requisite
      financial statements required for such Registration Statement to become
      effective and remain effective as provided herein. Upon the occurrence of any
      event that would cause any such Registration Statement or the Prospectus
      contained therein (A) to contain a material misstatement or omission or (B)
      not
      to be effective and usable for resale of Transfer Restricted Securities during
      the period required by this Agreement; the Company shall file promptly an
      appropriate amendment to such Registration Statement, (1) in the case of clause
      (A), correcting any such misstatement or omission, and (2) in the case of
      clauses (A) and (B), use its best efforts to cause such amendment to be declared
      effective (unless it shall have become automatically effective upon filing)
      and
      such Registration Statement and the related Prospectus to become usable for
      their intended purpose(s) as soon as practicable thereafter;

    

    (b) prepare
      and file with the SEC such amendments and post-effective amendments to the
      Registration Statement as may be necessary to keep the Registration Statement
      effective for the applicable period as specified in Section 2 hereof; cause
      the
      related Prospectus to be supplemented by any required Prospectus supplement,
      and
      as so supplemented to be filed pursuant to Rule 424 (or any similar provisions
      then in force) under the Securities Act; and comply with the provisions of
      the
      Securities Act with respect to the disposition of all securities covered by
      such
      Registration Statement during the applicable period in accordance with the
      intended method or methods of distribution by the sellers thereof set forth
      in
      such Registration Statement or supplement to the Prospectus;

    

    (c) advise
      the selling Holders and any underwriters promptly and, if requested by such
      Persons, confirm such advice in writing, (i) when the Registration Statement,
      post-effective amendment thereto, Prospectus or Prospectus supplement has been
      filed and/or become effective, (ii) of any request by the SEC for amendments
      to
      the Registration Statement or amendments or supplements to the Prospectus or
      for
      additional information relating thereto, (iii) of the issuance by the SEC of
      any
      stop order suspending the effectiveness of the Registration Statement under
      the
      Securities Act or of the suspension by any state securities commission of the
      qualification of the Transfer Restricted Securities for offering or sale in
      any
      jurisdiction, or the initiation of any proceeding for any of the preceding
      purposes, and (iv) of the existence of any fact or the happening of any event
      that makes any statement of a material fact made in the Registration Statement,
      the Prospectus, any amendment or supplement thereto or any document incorporated
      or deemed to be incorporated by reference therein untrue, or that requires
      the
      making of any additions to or changes in the Registration Statement in order
      to
      make the statements therein not misleading, or that requires the making of
      any
      additions to or changes in the Prospectus in order to make the statements
      therein, in the light of the circumstances under which they were made, not
      misleading. If at any time the SEC shall issue any stop order suspending the
      effectiveness of the Registration Statement, or any state securities commission
      or other regulatory authority shall issue an order suspending the qualification
      or exemption from qualification of the Transfer Restricted Securities under
      state securities or Blue Sky laws, the Company shall use its reasonable best
      efforts to obtain the withdrawal or lifting of such order at the earliest
      possible time;

    

    (d) furnish
      to any underwriters and each selling Holder named in any Registration Statement
      or Prospectus before filing with the SEC, copies of any Registration Statement
      or any 

    
      
        -5-

      

      
         

        
          

        

      

      
         

      

    

    Prospectus
      included therein or any amendments or supplements to any such Registration
      Statement or Prospectus (including all documents incorporated by reference
      after
      the initial filing of such Registration Statement), which documents will be
      subject to the review and comment of such Persons in connection with such sale,
      if any, for a period of at least five Business Days, and the Company will not
      file any such Registration Statement or any amendment or supplement to any
      such
      Registration Statement (including all such documents incorporated by reference)
      to which any such Person, shall reasonably object within five Business Days
      after the receipt thereof. A selling Holder shall be deemed to have reasonably
      objected to such filing only if such Registration Statement, amendment, or
      supplement, as applicable, as proposed to be filed, contains a material
      misstatement or omission or fails to comply with the applicable requirements
      of
      the Securities Act;

    

    (e) promptly
      following the filing of any document that is to be incorporated by reference
      into a Registration Statement, provide copies of such document to any
      underwriter and the selling Holders, make the Company’s representatives
      available for discussion of such document and other customary due diligence
      matters, and include such information in such document prior to the filing
      thereof as such Persons, reasonably may request.

    

    (f) make
      available at reasonable times for inspection by any underwriters and the selling
      Holders, and any attorney or accountant retained by Persons, all relevant
      financial and other records, pertinent corporate documents and properties of
      the
      Company and cause the Company’s officers, directors and employees to supply all
      relevant information reasonably requested by any Persons, attorney or accountant
      in connection with such Registration Statement or any post-effective amendment
      thereto subsequent to the filing thereof and prior to its
      effectiveness;

    

    (g) if
      requested by any underwriter or selling Holders, promptly include in any
      Registration Statement or Prospectus, pursuant to a supplement or post-effective
      amendment if necessary, such information as such underwriter or selling Holders,
      may reasonably request to have included therein, including, without limitation,
      information relating to the “Plan of Distribution” of the Transfer Restricted
      Securities; and make all required filings of such supplement or post-effective
      amendment as soon as practicable after the Company is notified of the matters
      to
      be included therein;

     

           
      (h) furnish
      to any underwriter and each selling Holder, without charge, at least one copy
      of
      the Registration Statement, as first filed with the SEC, and of each amendment
      thereto, including all documents incorporated by reference therein and all
      exhibits (including exhibits incorporated therein by reference);

    

    (i) deliver
      to any underwriter and each selling Holder, without charge, as many copies
      of
      the Prospectus (including each preliminary prospectus) and any amendment or
      supplement thereto as such Persons reasonably may request; the Company hereby
      consents to the use (in accordance with law) of the Prospectus and any amendment
      or supplement thereto by any underwriter and each of the selling Holders in
      connection with the offering and the sale of the Transfer Restricted Securities
      covered by the Prospectus or any amendment or supplement
      thereto;

    
      
        -6-

      

      
         

        
          

        

      

      
         

      

    

    (j) make
      such
      representations and warranties and take all such other actions in connection
      therewith in order to expedite or facilitate the disposition of the Transfer
      Restricted Securities pursuant to any Registration Statement contemplated by
      this Agreement as may be reasonably requested by any Holder of Transfer
      Restricted Securities in connection with any sale pursuant to any Registration
      Statement contemplated by this Agreement, and, at or prior to each closing
      of
      such sale, the Company shall:

    

    (A) furnish
      (or in the case of subparagraphs (2) and (3) below, use its best efforts to
      furnish) to any underwriter and each selling Holder:

    

    (1) a
      customary certificate signed on behalf of the Company by (x) the President
      or
      any Vice President and (y) a principal financial or accounting officer of the
      Company confirming, as of the date thereof, the matters similar to those covered
      in an officers certificate to underwriters in connection with primary
      underwritten offerings and such other similar matters as the Holders may
      reasonably request;

    

    (2) a
      customary opinion of counsel for the Company covering matters similar to those
      customarily covered in opinion letters of Counsel to underwriters in connection
      with primary underwritten offerings and such other matters as the Holders may
      reasonably request, and in any event including a statement to the effect that
      such counsel has participated in conferences with officers and other
      representatives of the Company, representatives of the independent public
      accountants for the Company and have considered the matters required to be
      stated therein and the statements contained therein, although such counsel
      has
      not independently verified the accuracy, completeness or fairness of such
      statements; and that such counsel advises that, on the basis of the foregoing
      (relying as to materiality to a large extent upon facts provided to such counsel
      by officers and other representatives of the Company and without independent
      check or verification), no facts came to such counsel’s attention that caused
      such counsel to believe that the (i) applicable Registration Statement, as
      of
      its most recent effective date immediately preceding the execution of the
      underwriting agreement, contained an untrue statement of a material fact or
      omitted to state a material fact required to be stated therein or necessary
      to
      make the statements therein not misleading, (ii) the Disclosure Package as
      of
      the date of the first contract of sale following the execution of the
      underwriting agreement contained an untrue statement of a material fact or
      omitted to state a material fact necessary in order to make the statements
      therein, in the light of the circumstances under which they were made, not
      misleading or (iii) Prospectus contained in such Registration Statement as
      of
      its date, contained an untrue statement of a material fact or omitted to state
      a
      material fact necessary in order to make the statements therein, in the light
      of
      the circumstances under which they were made, not misleading. Without limiting
      the foregoing, such counsel may state further that such counsel assumes no
      responsibility for, and has not independently verified, the accuracy,
      completeness or fairness of the financial statements, notes and schedules and
      other financial data included in any Registration Statement contemplated by
      this
      Agreement or the related Prospectus; and

    
      
        -7-

      

      
         

        
          

        

      

      
         

      

    

    (3) customary
      comfort letters from the independent accountants of the Company, in the
      customary form and covering matters of the type customarily covered in comfort
      letters to underwriters in connection with primary Underwritten
      Offerings;

     

                       
      (B) enter
      into an underwriting agreement in customary form with an underwriter or
      underwriters selected by the Holders; 

     

                       
      (C) to
      the
      extent requested by the selling Holders, (1) make available for inspection
      by
      any underwriter participating in any disposition pursuant to a Registration
      Statement, and any attorney, accountant or other agent retained by any such
      underwriter, all financial and other records, pertinent corporate documents
      and
      assets of the Company, and cause the Company’s officers, directors, employees
      and independent accountants to supply all information reasonably requested
      by
      any underwriter, attorney, accountant or agent in connection with the
      registration statement, (2) make available appropriate management personnel
      for
      participation in the preparation and drafting of the registration or comparable
      statement, for due diligence and “road show” meetings, and (3) obtain a cold
      comfort letter from the Company’s independent public accountants addressed to
      the selling Holders in customary form and covering such matters of the type
      customarily covered by cold comfort letters as the Holders of a majority of
      the
      Transfer Restricted Securities being sold reasonably request; and

     

                        (D) deliver
      such other documents and certificates as may be reasonably requested by any
      underwriter or any of the selling Holders to evidence compliance with clause
      (A)
      above.

    

    The
      above
      shall be done at each closing, and if at any time the representations and
      warranties of the Company contemplated in (A)(1) above cease to be true and
      correct, the Company shall so advise any underwriter and the selling Holders
      promptly and if requested by such Persons, shall confirm such advice in
      writing;

     

           
      (k) prior
      to
      any public offering of Transfer Restricted Securities, to register or qualify,
      or cooperate with any underwriter and the selling Holders, and their respective
      counsel in connection with the registration and qualification of the Transfer
      Restricted Securities under the securities or Blue Sky laws of such
      jurisdictions as the selling Holders may reasonably request and as reasonably
      required to permit the resale of such Transfer Restricted Securities in such
      jurisdictions and do any and all other acts or things necessary or advisable
      to
      enable the disposition in such jurisdictions of the Transfer Restricted
      Securities covered by the applicable Registration Statement; provided,
      however,
      that the
      Company shall not be required to register or qualify as a foreign corporation
      where it is not now so qualified or to take any action that would subject it
      to
      the service of process in suits or to taxation, other than as to matters and
      transactions relating to the Registration Statement, in any jurisdiction where
      it is not now so subject;

     

           
      (l) in
      connection with any sale of Transfer Restricted Securities that will result
      in
      such securities no longer being Transfer Restricted Securities, facilitate
      the
      timely preparation and delivery of certificates representing Transfer Restricted
      Securities to be sold and not bearing any restrictive legends; and to register
      such Transfer Restricted Securities in such denominations 

    
      
        -8-

      

      
         

        
          

        

      

      
         

      

    

    and
      such
      names as the Holders may request at least two Business Days prior to such sale
      of Transfer Restricted Securities;

     

           
      (m) use
      its
      reasonable best efforts to cause the disposition of the Transfer Restricted
      Securities covered by the Registration Statement to be registered with or
      approved by such other governmental agencies or authorities as may be necessary
      to enable the seller or sellers thereof to consummate the disposition of such
      Transfer Restricted Securities, subject to the proviso contained in clause
      (k)
      above;

     

           
      (n) subject
      to Section 3(c)(iv), if any fact or event contemplated by Section 3(c)(iv)
      above
      shall exist or have occurred, prepare a supplement or post-effective amendment
      to the Registration Statement or related Prospectus or any document incorporated
      therein by reference or file any other required document so that, as thereafter
      delivered to the purchasers of Transfer Restricted Securities, the Prospectus
      will not contain an untrue statement of a material fact or omit to state any
      material fact necessary to make the statements therein, in the light of the
      circumstances under which they were made, not misleading; 

     

           
      (o) provide
      a
      CUSIP number for all Transfer Restricted Securities not later than the effective
      date of a Registration Statement covering such Transfer Restricted Securities
      and provide a transfer agent and registrar for the Transfer Restricted
      Securities not later than the effective date of the Registration Statement;
      and

     

           
      (p) agree
      with the selling Holders and any underwriters that no party may use a Free
      Writing Prospectus (as defined in Rule 405 promulgated by the SEC pursuant
      to
      the Securities Act) without the consent of the other parties.

    

    4.  
Agreement
      of Holders

    

    Each
      Holder of Transfer Restricted Securities agrees that, upon receipt of any notice
      from the Company pursuant to Section 3(a) hereof or of the happening of any
      event of the kind described in Section 3(c)(iv) hereof, such Holder will
      forthwith discontinue disposition of such Transfer Restricted Securities covered
      by such Registration Statement or Prospectus until such Holder’s receipt of the
      copies of the supplemented or amended Prospectus contemplated by Section 3(d)
      hereof, or until it is advised in writing (the “Advice”)
      by the
      Company that the use of the applicable Prospectus may be resumed, and, in either
      case, has received copies of any additional or supplemental filings that are
      incorporated or deemed to be incorporated by reference in such Prospectus and,
      if so directed by the Company, such Holder will deliver to the Company (at
      the
      Company’s expense) all copies, other than permanent file copies, then in such
      Holder’s possession of the Prospectus covering such Transfer Restricted
      Securities at the time of receipt of such notice. In the event the Company
      shall
      give any such notice, the time period regarding the effectiveness of such
      Registration Statement set forth in Section 2(a) hereof, if applicable, shall
      be
      extended by the number of days during the period from and including the date
      of
      the giving of such notice pursuant to Section 3(c)(iii) or Section 3(c)(iv)
      hereof to and including the date when each selling Holder covered by such
      Registration Statement shall have received the copies of the supplement or
      amended Prospectus contemplated by Section 3(c) hereof or shall have received
      the Advice.

     

    
      
        -9-

      

      
         

        
          

        

      

      
         

      

    

     5.   
      Registration Expenses

    

    (a) Except
      as
      set forth in Section 5(b) below, all fees and expenses incident to the
      performance of or compliance with this Agreement by the Company shall be borne
      by the Company whether or not any Registration Statement is filed or becomes
      effective and whether or not any securities are issued or sold pursuant to
      any
      Registration Statement. The fees and expenses referred to in the foregoing
      sentence shall include, without limitation, (i) all registration and filing
      fees
      (including, without limitation, fees and expenses in compliance with securities
      or Blue Sky laws), (ii) printing expenses (including, without limitation,
      expenses of printing certificates for Transfer Restricted Securities and
      Prospectus), (iii) messenger, telephone and delivery expenses, (iv) fees and
      disbursements of counsel for the Company , (v) fees and disbursements of all
      independent certified special audit and “cold comfort” letters required by or
      incident to such performance, (vi) Securities Act liability insurance, if the
      Company so desires such insurance, and (vii) fees and expenses of all other
      persons retained by the Company. In addition, the Company shall pay its internal
      expenses (including, without limitation, all salaries and expenses of its
      officers and employees performing legal or accounting duties), the expense
      of
      any annual audit, and the fees and expenses incurred in connection with the
      listing of the securities to be registered on any securities
      exchange.

    

    (b) In
      connection with any Registration Request hereunder, the following fees and
      expenses shall be borne by the Holders: (i) underwriters’ discounts, commissions
      and expenses, (ii) SEC registration fees and stock exchange listing fees with
      respect to the shares of Transfer Restricted Securities to be registered, and
      (iii) fees and disbursements of counsel for the Holders.

    

    6.   
      Indemnification

    

    (a) The
      Company agrees to indemnify and hold harmless (i) each Holder and underwriter
      and (ii) each person, if any, who controls (within the meaning of Section 15
      of
      the Act or Section 20 of the Exchange Act) any Holder or underwriter (any of
      the
      persons referred to in this clause (ii) being hereinafter referred to as a
      “controlling
      person”)
      and
      (iii) the respective officers, directors, partners, employees, representatives
      and agents of any Holder, underwriter or any controlling person (any person
      referred to in clause (i), (ii) or (iii) may hereinafter be referred to as
      an
“Indemnified
      Person”),
      to
      the fullest extent lawful, from and against any and all losses, claims, damages,
      liabilities, judgments, actions and expenses (including without limitation
      and
      as incurred, reimbursement of all reasonable costs of investigating, preparing,
      pursuing or defending any claim or action, or any investigation or proceeding
      by
      any governmental agency or body, commenced or threatened, including the
      reasonable fees and expenses of counsel to any Indemnified Person) directly
      or
      indirectly caused by any untrue statement or alleged untrue statement of a
      material fact contained in any Registration Statement, the Disclosure Package
      or
      the Prospectus (or any amendment or supplement thereto), or caused by any
      omission or alleged omission to state therein a material fact required to be
      stated therein or necessary to make the statements therein not misleading,
      except insofar as such losses, claims, damages, liabilities or expenses are
      caused by any such untrue statement or omission or alleged untrue statement
      or
      omission that is made in reliance, upon and in conformity with information
      relating to any of the Holders furnished in writing to the Company by any of
      the
      Holders expressly for use therein.

    
      
        -10-

      

      
         

        
          

        

      

      
         

      

    

    In
      case
      any action or proceeding (including any governmental or regulatory investigation
      or proceeding) shall be brought against any Indemnified Person with respect
      to
      which indemnity may be sought against the Company pursuant to the preceding
      paragraph, such Indemnified Person (or the Indemnified Person controlled by
      such
      controlling person) shall promptly notify the Company in writing and the Company
      upon the request of such Indemnified Person, shall retain counsel reasonably
      satisfactory to the Indemnified Person, and shall pay the fees and disbursements
      of such counsel related to such proceedings (provided, that the failure to
      promptly give such notice shall not relieve the Company of its obligations
      pursuant to this Agreement except to the extent the Company was actually
      prejudiced by such failure). Such Indemnified Person shall have the right to
      employ its own counsel in any such action and the fees and expenses of such
      counsel shall be at the expense of the such Indemnified Person, unless (i)
      the
      employment of such counsel shall have been specifically authorized in writing
      by
      the Company, (ii) the Company shall have failed to assume the defense and employ
      counsel or (iii) the named parties to any such action (including any impleaded
      parties) include both the Indemnified Person and the Company, and such
      Indemnified Person shall have been advised by counsel that there may be one
      or
      more legal defenses available to it which are different from or additional
      to
      those available to the Company (in which case the Company shall not have the
      right to assume the defense) it being understood, however, that the Company
      shall not, in connection with any one such action or proceeding or separate
      but
      substantially similar or related actions or proceedings in the same jurisdiction
      arising out of the same general allegations or circumstances, be liable for
      the
      reasonable fees and expenses of more than one separate firm of attorneys (in
      addition to any local counsel) for such Indemnified Persons, which firm shall
      be
      designated by the Indemnified Persons. The Company shall be liable for any
      settlement of any such action or proceeding effected with the Company’s prior
      written consent, and the Company agrees to indemnify and hold harmless each
      Indemnified Person from and against any loss, claim, damage, liability or
      expense by reason of any settlement of any action effected with the written
      consent of the Company. The Company shall not, without the prior written consent
      of such Indemnified Person, settle or compromise or consent to the entry of
      judgment in or otherwise seek to terminate any pending or threatened action,
      claim, litigation or proceeding in respect of which indemnification or
      contribution may be sought hereunder (whether or not any Indemnified Person
      is a
      party thereto), unless such settlement, compromise, consent or termination
      includes an unconditional release of such Indemnified Person from all liability
      arising out of such action, claim, litigation or proceeding.

    

    (b) Each
      Holder of Transfer Restricted Securities agrees, severally and not jointly,
      to
      indemnify and hold harmless the Company and its directors, officers, and any
      person controlling (within the meaning of Section 15 of the Act or Section
      20 of
      the Exchange Act) the Company, and its officers, directors, partners, employees,
      representatives and agents of each such person, to the same extent as the
      foregoing indemnity from the Company to each of the Indemnified Holders, but
      only with respect to claims and actions based on information relating to such
      Holder furnished in writing by such Holder expressly for use in any Registration
      Statement. In case any action or proceeding shall be brought against the Company
      or its directors or officers or any such controlling person in respect of which
      indemnity may be sought against a Holder, such Holder shall have the rights
      and
      duties given the Company (except that if the Company shall have assumed the
      defense thereof, such Holder shall not be required to do so, but may employ
      separate counsel therein and participate in the defense thereof but the fees
      and
      expenses of such counsel shall be at the expense of such Indemnified Holder,
      its
      directors or officers or such 

    
      
        -11-

      

      
         

        
          

        

      

      
         

      

    

    controlling
      persons) and the Company shall have the rights and duties given to each Holder
      by the preceding paragraph. In no event shall any Holder be liable or
      responsible for any amount in excess of the total proceeds (net of brokerage
      commissions) received by such Holder with respect to its sale of Transfer
      Restricted Securities pursuant to a Registration Statement.

    

    (c) If
      the
      indemnification provided for in this Section 6 is unavailable to an indemnified
      party under Section 6(a) or Section 6(b) hereof (other than by reason of
      exceptions provided in those Sections) in respect of any losses, claims,
      damages, liabilities or expenses referred to therein, then each applicable
      indemnifying party, in lieu of indemnifying such indemnified party, shall
      contribute to the amount paid or payable by such indemnified party as a result
      of such losses, claims, damages, liabilities or expenses in such proportion
      as
      is appropriate to reflect the relative fault of the Company, on the one hand,
      and of the Indemnified Person, on the other hand, in connection with the
      statements or omissions which resulted in such losses, claims, damages,
      liabilities or expenses, as well as any other relevant equitable considerations.
      The relative fault of the Company, on the one hand, and of the Indemnified
      Person, on the other hand, shall be determined by reference to, among other
      things, whether the untrue or alleged untrue statement of a material fact or
      the
      omission or alleged omission to state a material fact relates to information
      supplied by the Company or by the Indemnified Person and the parties’ relative
      intent, knowledge and opportunity to correct or prevent such statement or
      omission. The amount paid or payable by a party as a result of the losses,
      claims, damages, liabilities and expenses referred to above shall be deemed
      to
      include, subject to the limitations set forth in the second paragraph of Section
      6(a), any legal or other fees or expenses reasonably incurred by such party
      in
      connection with investigating or defending any action or claim.

    

    The
      Company and each Holder agree that it would not be just and equitable if
      contribution pursuant to this Section 6(c) were determined by pro rata
      allocation (even if the Holders were treated as one entity for such purpose) or
      by any other method of allocation which does not take account of the equitable
      considerations referred to in the immediately preceding paragraph. The amount
      paid or payable by an indemnified party as a result of the losses, claims,
      damages, liabilities or expenses referred to in the immediately preceding
      paragraph shall be deemed to include, subject to the limitations set forth
      above, any legal or other expenses reasonably incurred by such indemnified
      party
      in connection with investigating or defending any such action or claim.
      Notwithstanding the provisions of this Section 6, no Holder shall be required
      to
      contribute, in the aggregate, any amount in excess of the amount by which the
      total amount received by such Holder with respect to the sale of its Transfer
      Restricted Securities pursuant to a Registration Statement exceeds the amount
      paid by such Holder for such Transfer Restricted Securities. No person guilty
      of
      fraudulent misrepresentation (within the meaning of Section 11(f) of the Act)
      shall be entitled to contribution from any person who was not guilty of such
      fraudulent misrepresentation. The Holders’ obligations to contribute pursuant to
      this Section 6(c) are several in proportion to the respective shares of Transfer
      Restricted Securities held by each of the Holders hereunder and not
      joint.

    

    The
      indemnity, contribution and expense reimbursement obligations of the Company
      hereunder shall be in addition to any liability the Company may otherwise have
      under the Retirement Agreement or hereunder. The provisions of this Section
      6
      shall survive so long as Transfer Restricted Securities remain outstanding,
      notwithstanding any transfer or sale of the 

    
      
        -12-

      

      
         

        
          

        

      

      
         

      

    

    Transfer
      Restricted Securities by any Holder or any termination of this Agreement or
      the
      Retirement Agreement.

    

    7.   
      Information
      Requirements.

    

    The
      Company shall file the reports required to be filed by it under the Securities
      Act and the Exchange Act, and if at any time the Company is not required to
      file
      such reports, it will, upon the request of any Holders of Transfer Restricted
      Securities, make publicly available other information so long as necessary
      to
      permit sales pursuant to Rule 144 under the Securities Act. The Company further
      covenants that it will cooperate with any Holder of Transfer Restricted
      Securities and take such further reasonable action as any Holder of Transfer
      Restricted Securities may reasonably request (including, without limitation,
      making such reasonable representations as any such Holder may reasonably
      request), all to the extent required from time to time to enable such Holder
      to
      sell Transfer Restricted Securities without registration under the Securities
      Act within the limitation of the exemptions provided by Rule 144 under the
      Securities Act. Upon the request of any Holder of Transfer Restricted
      Securities, the Company shall deliver to such Holder a written statement as
      to
      whether it has complied with such filing requirements.

    

    8.   
      Miscellaneous

    

    (a) Remedies.  Each
      holder of Transfer Restricted Securities or the Company, in addition to being
      entitled to exercise all rights provided herein, in the Retirement Agreement
      or
      granted by law, including recovery of damages, will be entitled to specific
      performance of its rights under this Agreement. The Company and each holder
      of
      Transfer Restricted Securities agrees that monetary damages would not be
      adequate compensation for any loss incurred by reason of a breach by the Company
      of the provisions of this Agreement and hereby agrees to waive the defense
      in
      any action for specific performance that a remedy at law would be
      adequate.

    

    (b) No
      Inconsistent Agreements.  The
      Company shall not enter into any agreement with respect to its securities that
      is inconsistent with the rights granted to the holders of Transfer Restricted
      Securities in this Agreement or otherwise conflicts with the provisions hereof.
      The Company represents and warrants that as of the date hereof, the rights
      granted to the Holders of Transfer Restricted Securities hereunder do not in
      any
      way conflict with the rights granted to holders of the Company’s securities
      under other agreements.

    

    (c) Amendments
      and Waivers.  The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, modified or supplemented, and waivers or consents to departures
      from
      the provisions hereof may not be given, without the written consent of the
      Holders of a majority of the then outstanding Transfer Restricted Securities;
      provided,
      however;
      that,
      for the purposes of this Agreement, Transfer Restricted Securities that are
      owned, directly or indirectly, by either the Company or an Affiliate of the
      Company shall not be deemed outstanding.

    

    (d) Notices.  All
      notices and other communications provided for herein shall be made in writing
      by
      hand-delivery, next-day air courier, or certified first-class mail, return
      receipt requested:

    
      
        -13-

      

      
         

        
          

        

      

      
         

      

    

    (i) if
      to the
      Company, as provided in the Retirement Agreement,

    

    (ii) if
      to the
      Purchaser, as provided in the Retirement Agreement, or

    

    (iii) if
      to any
      other person who is then the registered Holder of any Transfer Restricted
      Securities, to the address of such Holder as it appears in the Transfer
      Restricted Securities register of the Company.

    

    Except
      as
      otherwise provided in this Agreement, all such communications shall be deemed
      to
      have been duly given: when delivered by hand, if personally delivered; one
      Business Day after being timely delivered to a next-day air courier; five
      Business Days after being deposited in the mail, postage prepaid, if mailed;
      when answered back, if telexed; and when receipt is acknowledged by the
      recipient’s telecopier machine, if telecopied.

    

    (e) Successors
      and Assigns.  This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      assigns of each of the parties, including subsequent Holders of Transfer
      Restricted Securities provided such subsequent Holders acquire such Transfer
      Restricted Securities directly from such Holder but without the need for an
      express assignment.

    

    (f) Counterparts.  This
      Agreement may be executed in any number of counterparts and by the parties
      hereto in separate counterparts, each of which when so executed shall be deemed
      to be an original and, all of which taken together shall constitute one and
      the
      same Agreement.

    

    (g) Governing
      Law; Venue.  This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York, as applied to contracts made and performed within the State
      of New York without regard to principles of conflicts of law. All suits or
      other
      actions (whether at law or in equity) to enforce rights pursuant to this
      Registration Rights Agreement may be brought only in (i) state courts of the
      state of Illinois in Cook County, (ii) state courts of the state of New York
      in
      New York County, (iii) state courts in the state of Delaware in New Castle
      County, or (iv) the United States District Court for (a) the Northern District
      of Illinois, (b) the Southern District of New York or (c) the District of
      Delaware. The Company and Holders of Transfer Restricted Securities, by their
      acceptance thereof, consent to the jurisdiction of such courts and waive any
      objections to venue or claim of forum non-conveniens with respect to all such
      suits and actions brought in any such court.

    

    (h) Severability.  The
      remedies provided herein are cumulative and not exclusive of any remedies
      provided by law. If any term, provision, covenant or restriction of this
      Agreement is held by a court of competent jurisdiction to be invalid, illegal,
      void or unenforceable, the remainder of the terms, provisions, covenants and
      restrictions set forth herein shall remain in full force and effect and shall
      in
      no way be affected, impaired or invalidated, and the parties hereto shall use
      their reasonable efforts to find and employ an alternative means to achieve
      the
      same or substantially the same result as that contemplated by such term,
      provision, covenant or restriction. It is hereby stipulated and declared to
      be
      the intention of the parties that they would have executed the remaining terms,
      provisions, covenants and restrictions without including any of such that may
      be
      hereafter declared invalid, illegal, void or unenforceable.

    
      
        -14-

      

      
         

        
          

        

      

      
         

      

    

    (i) Headings.
      The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof. All references made in this
      Agreement to “Section” and “paragraph” refer to such Section or paragraph of
      this Agreement, unless expressly stated otherwise.

    

    (j) Owner
      of Transfer Restricted Securities.  The
      Company will maintain, or will cause its registrar and transfer agent to
      maintain, a register with respect to the Transfer Restricted Securities in
      which
      all transfers of Transfer Restricted Securities of which the Company has
      received notice will be recorded. The Company may deem and treat the Person
      in
      whose name Transfer Restricted Securities are registered in such register of
      the
      Company as the owner thereof for all purposes, including, without limitation,
      the giving of notices under this Agreement.

    

    (k) Further
      Assurances.  Each
      of the parties hereto shall use all reasonable efforts to take, or cause to
      be
      taken, all appropriate action, do or cause to be done all things reasonably
      necessary, proper or advisable under applicable law, and execute and deliver
      such documents and other papers, as may be required to carry out the provisions
      of this Agreement and the other documents contemplated hereby and consummate
      and
      make effective the transactions contemplated hereby.

    

    (l) Survival.  The
      provisions of Sections 5, 6 and 8(a) shall survive the termination of this
      Agreement.

    
      
        -15-

      

      
         

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties have caused this Registration Rights Agreement
      to
      be duly executed as of the date first written above.

    

    
      	 	
              CNA
                FINANCIAL CORPORATION

            
	 	 

    

    

    
      	 	
              By:

            	
              /s/
                D. Craig Mense

            
	 	 	
              Name:
                D. Craig Mense

            
	 	 	
              Title:
                Executive Vice President

            
	 	 	
                       
                and Chief Financial Officer

            
	 	 	 
	 	 	 

    

    

    
      	 	
              LOEWS
                CORPORATION

            
	 	 

    

    

    
      	 	
              By:

            	
              /s/
                Peter W. Keegan

            
	 	 	
              Name:
                Peter W. Keegan

            
	 	 	
              Title:
                Senior Vice President

            
	 	 	
                       
                and Chief Financial Officer

            
	 	 	 
	 	 	 
	 	 	 

    

    

    
      
        -16-

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