Document:

Exhibit
10.1

THE
ST. PAUL TRAVELERS COMPANIES, INC.

385 Washington Street

St. Paul, Minnesota  55102

As
of November 5, 2004

Jay S. Fishman

1200 Mount Curve Avenue

Minneapolis, Minnesota 55403

Dear Jay:

I am writing this letter on behalf of the Board of
Directors (the “Board”) of The St. Paul Travelers
Companies, Inc. (the “Company”) to
confirm an amendment to the terms and conditions of your employment with the
Company as set out in the letter agreement dated April 1, 2004 (the “Employment Agreement”).

1.             Amendment. 
You and the Company agree that the first sentence of Section 7(d) of the
Employment Agreement is hereby amended and restated in its entirety as follows:

(d)      Transportation.  You will be required for security purposes to
use the Company aircraft for all business travel and personal travel; provided, however, that (i) if you use the aircraft for
international personal travel you will compensate the Company for such use at
the maximum amount legally payable for any such flight under Section 91.501(d)(l)-(10)
of the Federal Aviation Regulations, not to exceed the then applicable first
class rate and (ii) your use of the aircraft for international personal travel
will be on the terms set forth in Exhibit C.

2.             Exhibit.  You and the Company agree that the Employment
Agreement is hereby amended to add the exhibit attached to this amendment as
Exhibit C to the Employment Agreement immediately following Exhibit B thereto.

3.             Miscellaneous Provisions.

(a)           This amendment may be executed in any number of counterparts
which together will constitute but one agreement.

(b)           This amendment will be governed by and construed and
entered into in accordance with the laws of the State of Minnesota without
reference to rules relating to conflict of laws.

(c)           Except as amended hereby, the Employment Agreement shall
continue in full force and effect in accordance with its terms.

 

 

This amendment is intended to be a binding
obligation upon both the Company and yourself. 
If this amendment correctly reflects your understanding, please sign and
return one copy to Ken Spence for the Company’s records.

 

	
   

  	
  THE ST. PAUL TRAVELERS
  COMPANIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Leslie B. Disharoon

  
	
   

  	
   

  	
  Name:

  	
  Leslie B. Disharoon

  
	
   

  	
   

  	
  Title:

  	
  Director

  

 

 

The above amendment correctly reflects our understanding,
and I hereby confirm my agreement to the same.

 

	
  Dated as of November 5,
  2004

  	
  /s/ Jay S. Fishman

  
	
   

  	
  Jay S. Fishman

  

 

 

Exhibit C

 

TERMS
OF TIME SHARING AGREEMENT

                For
the purposes of these Time Sharing Terms (these “Terms”), “Lessor” refers to
The St. Paul Travelers Companies, Inc., “Lessee” refers to Jay S. Fishman and
the “parties” refers to Lessor and Lessee.

 

1.                Lease of Aircraft.  Lessor or one of its affiliates has exclusive
use, possession, command and control of the
aircraft identified on Schedule 1 hereto (the “Aircraft”).  Lessee and the General Counsel of Lessor may
from time to attend amend Schedule 1 hereto. 
Lessor agrees to lease the Aircraft to Lessee, with a flight crew on a “time
sharing” basis as defined in Section 91.501(c)(1) of the Federal Aviation
Regulations (“FAR”) and pursuant to the terms and conditions of these Terms and
the provisions of FAR Section 91.501(b)(6) and Section 91.501(c)(1), and to
provide a fully-qualified and credentialed flight crew for all flights to be
conducted hereunder.  The parties
acknowledge and agree that this arrangement did not result in any way from any
direct or indirect advertising, holding out or soliciting on the part of Lessor
or any person purportedly acting on behalf of Lessor.  Lessor and Lessee intend that the lease of
the Aircraft effected by these Terms shall be treated as a “wet lease” pursuant
to which Lessor provides transportation services to Lessee in accordance with
FAR Section 91.501(b)(6) and Section 91.501(c)(1).  Lessor shall cause its affiliates to comply
with the terms hereof to the extent applicable.

 

2.                Payment for Use of Aircraft.  Lessee shall pay Lessor for each flight
conducted under these Terms the maximum amount legally payable for such flight
under Section 91.501(d)(l)-(10) of the Federal Aviation Regulations, not to
exceed the then applicable first class rate.

 

3.                Operational Control of
Aircraft.  Lessor and Lessee intend
and agree that at all times Lessor shall have complete and exclusive
operational control over the Aircraft, its flight crews and maintenance, and
complete and exclusive possession, command and control of the Aircraft.  Lessor shall have complete and exclusive
responsibility for scheduling, dispatching and flight following of the Aircraft
on all flights conducted under these Terms, which responsibility includes the
sole and exclusive right over initiating, conducting and terminating such
flights.

 

4.                Billing.  Lessee shall pay all amounts due to Lessor
under Section 2 not later than 30 days after receipt of the invoice therefor.

 

5.                Scheduling.  Lessee will provide Lessor with requests for
flight time and proposed flight schedules as far in advance of any given flight
as possible.  Requests for flight time
shall be in a form (whether oral or written) mutually convenient to, and agreed
upon by, the parties.  In addition to
proposed schedules and flight times, Lessee shall provide Lessor with the
following information for each proposed flight prior to scheduled departure:
(i) proposed 

 

 

 

departure point; (ii) destination; (iii) date and time of flight; (iv)
the number of anticipated passengers; (v) the nature and extent of luggage to
be carried; (vi) the date and time of a return flight, if any; and (vii) any
other pertinent information concerning the proposed flight that Lessor or the
flight crew may request.

 

6.                Maintenance of Aircraft.  Lessor shall be solely responsible for
securing maintenance, preventive maintenance and required inspections of the
Aircraft, and shall take such requirements into account in scheduling the
Aircraft.  No period of maintenance,
preventive maintenance or inspection shall be delayed or postponed for the
purpose of scheduling the Aircraft hereunder, unless such maintenance or
inspection can be safely conducted at a later time in compliance with all
applicable laws and regulations, and within the sound discretion of the
pilot-in-command.

 

7.                Flight Crew.

 

(a)               Lessor shall employ (as its
common law employees) or engage (as its independent contractors) and pay all
salaries, benefits and and/or compensation for a fully-qualified flight crew
with appropriate credentials to conduct each flight undertaken under these
Terms.  All flight crewmembers shall be
included on any insurance policies required to be maintained by Lessor
hereunder.

 

(b)              The qualified flight crew provided
by Lessor shall exercise all of its duties and responsibilities with regard to
the safety of each flight conducted hereunder in accordance with applicable FAR’s.  The flight crew may, in its sole discretion,
terminate any flight, refuse to commence any flight, or take any other action
that, in the judgment of the pilot-in-command, is necessitated by
considerations of safety.  No such
termination or refusal to commence by the pilot-in-command shall create or
support any liability for loss, injury, damage or delay in favor of Lessee or
any other person.  Lessor shall not be
liable for delay or failure to furnish the Aircraft and flight crew pursuant to
these Terms when such failure is caused by government regulation or authority,
mechanical difficulty, war, civil commotion, strikes or labor disputes, weather
conditions, acts of God, or other causes reasonably beyond the control of
Lessor.

 

8.                lnsurance.  Lessor shall ensure that there is in effect,
at Lessor’s sole cost and expense, aircraft liability insurance for the
Aircraft affording a minimum of $200,000,000 combined single limit for bodily
injury (including passengers) and/or property damage.  Such insurance shall name Lessee as an
additional insured, shall include a waiver of subrogation against Lessee, its
agents, family, guests and employees, and shall provide for 30 days prior
written notice to Lessee of cancellation or material change in coverage (seven
days, or such shorter period then prevailing in the business aviation insurance
market, in the case of war risk and allied perils).  Such insurance shall include contractual
liability coverage covering Lessor’s indemnity obligations hereunder and shall
permit the use of the Aircraft by Lessor for compensation or hire.  Lessor shall use reasonable commercial
efforts to provide such additional insurance coverage for specific flights
under this Agreement, if any, as Lessee may request in writing.  The cost of any such additional
flight-specific insurance shall be borne by Lessee.

 

 

Lessor shall deliver
certificates or binders of insurance to Lessee with respect to the insurance
required or permitted to be provided hereunder promptly upon the renewal date
of each policy.

 

9.                Taxes.  Lessor shall be responsible for collecting
from Lessee and paying over to the appropriate agencies all applicable Federal
transportation taxes and any sales, use or other excise taxes imposed by any
governmental authority in connection with any use of the Aircraft by Lessee
under these Terms.  Lessor shall
indemnify Lessee against any and all claims, liabilities, costs and expenses
(including attorney’s fees as and when incurred) arising out of its breach of
this undertaking.

 

10.              Lessee’s Representations and
Warranties.  Lessee represents and
warrants that:

 

(a)
                               Lessee shall
not use the Aircraft to carry persons or property for hire or in any manner
which would constitute common carriage within the terms of the FAR’s.

 

(b)                                 Lessee shall
refrain from incurring any mechanic’s or other liens in connection with
inspection, preventive maintenance, maintenance or storage of the Aircraft,
whether permissible or impermissible under this Agreement.

 

(c)
                               Lessee will
abide by and conform to all laws, governmental and airport orders, rules and
regulations, as shall be imposed upon the lessee of an aircraft under a time
sharing arrangement.

 

11.              Lessor’s Representations and
Warranties.  Lessor represents and
warrants that:

 

(a)
                           It shall
conduct all operations under this Agreement in compliance with (i) all
applicable provisions of all governmental authorities having jurisdiction,
including, but not limited to, the Federal Aviation Administration and the
governmental authorities of each foreign jurisdiction in or over which the
Aircraft may be operated hereunder; (ii) the terms, conditions and limitations
of, and in the geographical areas allowed by, the insurance policies required
hereunder; and (iii) the operating instructions of the Aircraft’s flight manual
and the manufacturers’ operating and maintenance instructions.

 

(b)                             The Aircraft
is, and at all times during the term of this Agreement shall continue to be, in
airworthy condition and in full compliance with all applicable rules of the
Federal Aviation Administration.

 

 

 

(c)                              Lessor shall
not do any act or voluntarily suffer or permit any act to be done whereby any
insurance required hereunder shall or may be suspended, impaired or
defeated.  In no event shall Lessor
suffer or permit the Aircraft to be used or operated during the term without
such insurance being fully in effect, including, without limitation, use of the
Aircraft in any geographical area not covered by the policies issued to Lessor
and then in effect.

 

(d)                             Lessor will
carry a copy of these Terms in the Aircraft at all times that the Aircraft is
being operated hereunder.

 

12.              Term of Agreement.  These Terms shall remain in effect during the
term of the letter agreement, dated April 1, 2004, as amended, between Lessor
and Lessee.

 

13.              Indemnity.

 

(a)               Lessor hereby covenants and
agrees that it shall be fully liable to, and shall promptly upon demand defend,
indemnify and hold harmless Lessee and his agents, guests, invitees, licensees
and employees from and against any and all liabilities, claims, demands, suits,
causes of action, losses, penalties, fines, expenses or damages, including
legal fees, arising out of or in connection with (i) Lessor’s use, operation or
maintenance of the Aircraft, (ii) Lessor’s performance of or failure to perform
any service or obligation which is the subject matter of these Terms, or (iii)
any other breach by Lessor of any of the representations, warranties, covenants
or agreements set forth in this Time Sharing Agreement.

 

(b)              Lessee hereby covenants and agrees
that he shall be fully liable to, and shall promptly upon demand defend,
indemnify and hold harmless Lessor and its agents and employees from and
against any and all liabilities, claims, demands, suits, causes of action,
losses, penalties, fines, expenses or damages, including legal fees, arising
out of or in connection with any breach by Lessee of any of the
representations, warranties, covenants or agreements set forth in these Terms.

 

14.              Limitation on Liability.  Notwithstanding anything to the contrary
contained in these Terms, Lessee shall not have any liability arising out of
these Terms to Lessor for any liabilities, claims, demands, suits, causes of
action, losses, penalties, fines, expenses, damages or costs other than amounts
payable by Lessee pursuant to Sections 2, 8, 9 or 13(b) of these Terms.  In no event shall Lessee be liable for any
indirect, special, incidental, punitive or consequential damages.

 

15.              Relationship of Parties.  Lessor is strictly an independent contractor
lessor/provider of transportation services with respect to Lessee.  Nothing in these Terms are intended, nor shall
it be construed so as, to constitute the parties as partners or joint venturers
or principal and agent.  All persons
furnished by Lessor for the performance of the operations and activities
contemplated by these Terms shall at all times and for all purposes be
considered Lessor’s employee or agents, and Lessor shall be solely responsible
for their performance.

 

 

 

16.              Integration.  These Terms sets forth the entire agreement
between the parties with respect to the subject matter hereof and supersedes
any and all other agreements, understandings, representations, warranties or
negotiations by or between the parties with respect thereto, all of which are
hereby cancelled.  There are no other
agreements or representations, either oral or written, express or implied, with
respect to the subject matter of these Terms that are not expressly set forth
herein.  The representations, warranties
and indemnities set forth in these Terms shall survive the termination of these
Terms.

 

17.
             FAR SECTION 91.23.  TRUTH-IN-LEASING STATEMENT UNDER SECTION
91.23 OF THE FEDERAL AVIATION REGULATIONS:

 

(A)              LESSOR HEREBY CERTIFIES THAT THE
AIRCRAFT HAVE BEEN MAINTAINED AND INSPECTED UNDER FAR PART 91 DURING THE
12-MONTH PERIOD PRECEDING THE EFFECTIVE DATE OF THESE TERMS. THE AIRCRAFT WILL
BE MAINTAINED AND INSPECTED IN COMPLIANCE WITH THE MAINTENANCE AND INSPECTION
REQUIREMENTS OF FAR PART 91 FOR ALL OPERATIONS TO BE CONDUCTED UNDER THESE
TERMS.

 

(B)              THE ST. PAUL TRAVELERS COMPANIES,
INC. HEREBY CERTIFIES THAT IT IS RESPONSIBLE FOR OPERATIONAL CONTROL OF THE
AIRCRAFT FOR ALL OPERATIONS HEREUNDER AND THAT IT UNDERSTANDS ITS
RESPONSIBILITIES FOR COMPLIANCE WITH APPLICABLE FEDERAL AVIATION REGULATIONS.

 

(C)              THE PARTIES UNDERSTAND THAT AN EXPLANATION
OF THE FACTORS BEARING ON OPERATIONAL CONTROL AND THE PERTINENT FEDERAL
AVIATION REGULATIONS CAN BE OBTAINED FROM THE NEAREST FAA FLIGHT STANDARDS
DISTRICT OFFICE.

 

 

By signing below, the parties evidence their
agreement with the foregoing terms.

 

The St. Paul Travelers Companies, Inc.

 

 

	
  /s/ Leslie B. Disharoon

  	
   

  
	
  Name: Leslie B. Disharoon

  	
   

  
	
  Title: Director

  	
   

  
	
   

  	
   

  
	
  /s/ Jay S. Fishman

  	
   

  
	
  Jay S. Fishman

  	
   

  

 

 

Schedule 1

1.    N122SC, a 1996 Dassault Aviation Falcon
2000, s/n 25.

 

2.    N404ST, a 2003 Dassault Aviation Mystere
Falcon 900, s/n 200.

 

3.    N822TP, a 1995 Dassault Aviation Falcon
2000, s/n 20.

 

4.    N924WJ, a 1983 Dassault-Breguet Falcon 50,
s/n 141.Exhibit 10.2

 

ST.
PAUL TRAVELERS

 STOCK OPTION GRANT NOTIFICATION AND AGREEMENT

 

	
  Participant:

  	
  First_Name, M,
  Last_Name

  	
  Grant Date:

  
	
  Number of Shares:

  	
   

  	
  Grant Price:     $

  
	
  Expiration Date:

  	
   

  	
   

  

 

1.  Grant of Option.  This
option is granted pursuant to the St. Paul Travelers Corporation, Inc. 2004
Stock Incentive Plan (the “Plan”), by The St. Paul Travelers Companies, Inc.
(the “Company”) to you, an employee (the “Participant”). The Company hereby
grants to the Participant a non-qualified stock option (the “Option”) to
purchase the number of shares set forth above of the Company’s common stock, no
par value (“common stock”), at an option price per share (the “Grant Price”)
set forth above, pursuant to the Plan, as it may be amended from time to time,
and subject to the terms, conditions, and restrictions set forth herein.

 

2. Terms and Conditions.
The terms, conditions, and restrictions applicable to the Option are specified
in this grant notification and agreement, the Plan, the attached prospectus
dated July 28, 2004 (titled “St. Paul Travelers Equity Awards”), and any
applicable prospectus supplement, (together, the “Prospectus”).  The terms, conditions and restrictions in the
Prospectus include, but are not limited to, provisions relating to amendment,
vesting, cancellation, and exercise, all of which are hereby incorporated by
reference into this grant notification and agreement.  The terms, conditions and restrictions in
this grant notification and agreement, the Prospectus, and the Plan constitute
the Option agreement between the Participant and the Company (“Agreement”). By
accepting this Option, the Participant acknowledges receipt of the Prospectus
and that he or she has read and understands the Prospectus.

 

The Participant
understands that this Option and all other incentive awards are entirely
discretionary and that no right to receive an award exists absent a prior
written agreement with the Company to the contrary. The Participant also
understands that the value that may be realized, if any, from the Option is
contingent, and depends on the future market price of the Company’s common
stock, among other factors.  The
Participant further confirms his or her understanding that the Option is
intended to promote employee retention and stock ownership and to align
employees’ interests with those of shareholders, is subject to vesting
conditions and will be canceled if vesting conditions are not satisfied.  Thus, Participant understands that (a) any
monetary value assigned to the Option in any communication regarding the award
is contingent, hypothetical, or for illustrative purposes only, and does not
express or imply any promise or intent by the Company to deliver, directly or
indirectly, any certain or determinable cash value to the Participant; (b)
receipt of this Option or any incentive award in the past is neither an
indication nor a guarantee that an incentive award of any type or amount will
be made in the future, and that absent a written agreement to the contrary, the
Company is free to change its practices and policies regarding incentive awards
at any time; and (c) vesting may be subject to confirmation and final
determination by the Company’s Board of Directors or a Committee of the Board
that conditions to vesting have been satisfied. 
The Participant shall have no rights as a stockholder of the Company
with respect to any shares covered by this Option unless and until the Option
vests, is properly exercised and shares of Company common stock are issued.

 

3.  Vesting.  The Option
shall vest and become exercisable on the dates set forth below, in installments
equal to the percentage amounts set forth below, multiplied by the number of
shares subject to the Agreement.  The
Option will expire on the tenth (10th) anniversary of the Grant Date
set forth above, provided the Participant remains continuously employed by the
Company or one of its subsidiaries.

 

 

	
  INSTALLMENT PERCENTAGES

  	
   

  	
  VESTING DATES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  50%

  	
   

  	
  XX

  	
   

  
	
  25%

  	
   

  	
  XX

  	
   

  
	
  25%

  	
   

  	
  XX

  	
   

  

 

4.  Exercise of Option. The Option may be exercised in whole or
in part by the Participant upon notice to the Company together with provision
for payment of the Grant Price and applicable withholding taxes. Such notice
shall be given in the manner prescribed by the Company and shall specify the
date and method of exercise and the number of shares being exercised. The
Participant acknowledges that the laws of the country in which the Participant
is working at the time of grant or exercise of the Option (including any rules
or regulations governing securities, foreign exchange, tax, or labor matters)
or Company accounting or other policies dictated by such country’s political or
regulatory climate, may restrict or prohibit any one or more of the stock
option exercise methods described in the Prospectus, that such restrictions may
apply differently if the Participant is a resident or expatriate employee, and
that such restrictions are subject to change at any time.

 

5. Consent to Electronic Delivery.
In lieu of receiving documents in paper format, the Participant agrees, to the
fullest extent permitted by law, to accept electronic delivery of any documents
that the Company may be required to deliver (including, but not limited to,
prospectuses, prospectus supplements, grant or award notifications and
agreements, account statements, annual and quarterly reports, and all other
forms or communications) in connection with this and any other prior or future
incentive award or program made or offered by the Company or its predecessors
or successors. Electronic delivery of a document to the Participant may be via
a Company e-mail system or by reference to a location on a Company intranet
site to which Participant has access.

 

6. Administration. In
administering the Plan, or to comply with applicable legal, regulatory, tax, or
accounting requirements, it may be necessary for the Company or the subsidiary
employing the Participant to transfer certain Participant data to the Company,
its subsidiaries, outside service providers, or governmental agencies.  By accepting the Option, the Participant consents,
to the fullest extent permitted by law, to the use and transfer, electronically
or otherwise, of his or her personal data to such entities for such purposes.

 

7. Entire Agreement; No Right to
Employment. The Agreement constitutes the entire understanding
between the parties hereto regarding the Option and supersedes all previous
written, oral, or implied understandings between the parties hereto about the
subject matter hereof.  Nothing contained
herein, in the Plan, or in the Prospectus shall confer upon the Participant any
rights to continued employment or employment in any particular position, at any
specific rate of compensation, or for any particular period of time.

 

8. Arbitration; Conflict.  Any disputes under this Agreement shall be
resolved by arbitration in accordance with the Company’s arbitration policies.
In the event of a conflict between the Plan and this grant notification and
agreement, or the terms, conditions, and restrictions of the Option as
specified in the Prospectus, the Plan shall control.

 

9. Acceptance and Agreement by Participant.
By signing below, Participant accepts the Option and agrees to be bound by the
terms, conditions, and restrictions set forth in the Prospectus, the Plan, this
Agreement, and the Company’s policies, as in effect from time to time, relating
to the Plan.

 

	
  THE ST. PAUL TRAVELERS
  COMPANIES, INC.

  	
  PARTICIPANT’S
  SIGNATURE:

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: John P. Clifford,
  Jr.

  	
   

  	
   

  
	
  Senior Vice President, Human Resources

  	
  First Name, MI, Last Name

  
	
   

  	
  SSN

  

 

2

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