Document:

ex10-9.htm

    Exhibit
10.9

    

    CIGNA
LONG-TERM INCENTIVE PLAN

    (Amended
and Restated Effective as of January 1, 2008)

    

    

    ARTICLE
1

    Statement
of Purpose; Effect on Prior Plans

    

    The CIGNA
Long-Term Incentive Plan is intended to:

    

    
      	
              (a)

            	
              Provide
      key employees of the Company with an opportunity to acquire an equity
      interest in CIGNA Corporation, thereby increasing their personal interest
      in its continued success and
progress;

            

    

    

    
      	
              (b)

            	
              Aid
      the Company in attracting and retaining employees of exceptional
      ability;

            

    

    

    
      	
              (c)

            	
              Supplement
      and balance the Company's salary and incentive bonus programs in support
      of CIGNA Corporation's long-term strategic plans and financial
      results;

            

    

    

    
      	
              (d)

            	
              Encourage
      decisions and actions by Company executives that are consistent with the
      long-range interests of CIGNA Corporation's
  shareholders.

            

    

    

    This Plan
is an amendment and restatement, effective January 1, 2008, of the Plan as the
Plan was amended and restated effective January 1, 2005.  The purpose
of this amendment and restatement is to comply with Code Section
409A.  This amended and restated Plan applies to all authorized awards
made after December 31, 2007, as well as to Strategic Performance Units awarded
between January 1, 2005 and December 31, 2007, and to dividends payable after
2007 on outstanding Restricted Stock grants made before 2008.

    

    On April
27, 2005, CIGNA Corporation shareholders adopted the Plan, as it was amended and
restated effective January 1, 2005.  As of April 27, 2005, the number
of shares of Common Stock authorized for issuance under the CIGNA Corporation
Stock Plan (approved by CIGNA Corporation shareholders at the CIGNA Corporation
Annual Meeting on April 24, 1991) in excess of the number of shares reserved for
awards that had been made under that plan were transferred into this Plan and
became available for grant under this Plan.  From and after April 27,
2005, no further awards may be made under the CIGNA Corporation Stock
Plan.

    

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
 

    ARTICLE
2

    Definitions

    

    Except as
otherwise provided in the Plan or unless the context otherwise requires, the
terms defined below shall have the following meanings under the
Plan:

    

    
      	
              2.1

            	
              "Affiliate" -- the
      meaning set forth in Rule 12b-2 promulgated under the Exchange
      Act.

            

    

    

    
      	
              2.2

            	
              "Beneficial Owner" and
      "Beneficially
      Owned" -- the meaning set forth in Rule 13d-3 promulgated under the
      Exchange Act.

            

    

    

    
      	
              2.3

            	
              "Board" -- the board of
      directors of CIGNA Corporation or any duly authorized committee of that
      board.

            

    

    

    
      	
              2.4

            	
              "CEO" -- the Chief
      Executive Officer of CIGNA
Corporation.

            

    

    

    2.5           "Change of Control" -- any of
the following:

    

    
      	
               
      

            	
              (a)

            	
              A
      corporation, person or group acting in concert, as described in Exchange
      Act Section 14(d)(2), holds or acquires beneficial ownership within the
      meaning of Rule 13d-3 promulgated under the Exchange Act of a number of
      preferred or common shares of CIGNA Corporation having 25% or more of the
      combined voting power of CIGNA Corporation's then outstanding securities;
      or

            

    

    

    
      	
               
      

            	
              (b)

            	
              There
      is consummated a merger or consolidation of CIGNA Corporation or any direct or
      indirect subsidiary of CIGNA Corporation with any other
      corporation, other than

            

    

    

    
      	
              (i)  

            	
              a
      merger or consolidation immediately following which the individuals who
      constituted the Board of Directors immediately prior thereto constitute at
      least a majority of the board of directors of the entity surviving such
      merger or consolidation or the ultimate parent thereof,
  or

            

    

    

    
      	
              (ii)  

            	
              a
      merger or consolidation effected to implement a recapitalization of CIGNA
      Corporation (or
      similar transaction) in which no Person is or becomes the Beneficial
      Owner, directly or indirectly, of securities of CIGNA Corporation (not including in
      the securities Beneficially Owned by such Person any securities acquired
      directly from CIGNA Corporation or its Affiliates)
      representing 25% or more of the combined voting power of CIGNA
      Corporation’s then outstanding
      securities; or

            

    

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              (c)

            	
              A
      change occurs in the composition of the Board at any time during any
      consecutive 24-month period such that the Continuity Directors cease for
      any reason to constitute a majority of the Board.  For purposes
      of the preceding sentence "Continuity Directors" shall mean those members
      of the Board who either: (1) were directors at the beginning of such
      consecutive 24-month period; or (2) were elected by, or on nomination or
      recommendation of, at least a majority of the Board (other than a director
      whose initial assumption of office is in connection with an actual or
      threatened election contest, including but not limited to a consent
      solicitation, relating to the election of directors of CIGNA Corporation);
      or

            

    

    

    
      	
               
      

            	
              (d)

            	
              The
      shareholders of CIGNA Corporation approve a plan of
      complete liquidation or dissolution of CIGNA Corporation or there is
      consummated an agreement for the sale or disposition by CIGNA
      Corporation of
      all or substantially all of CIGNA Corporation’s assets, other than a
      sale or disposition by CIGNA Corporation of all or
      substantially all of CIGNA Corporation's assets immediately following
      which the individuals who constituted the Board immediately prior thereto
      constitute at least a majority of the board of directors of the entity to
      which such assets are sold or disposed or any parent
    thereof.

            

    

    

    Notwithstanding
the foregoing, a "Change of Control" shall not be deemed to have occurred by
virtue of the consummation of any transaction or series of integrated
transactions immediately following which the record holders of the common stock
of CIGNA Corporation immediately prior to such
transaction or series of transactions continue to have substantially the same
proportionate ownership in an entity which owns all or substantially all of the
assets of CIGNA Corporation immediately following such transaction or series of
transactions.

    

    
      	
              2.6

            	
              "Code" -- the Internal
      Revenue Code of 1986, as amended.

            

    

    

    
      	
              2.7

            	
              "Committee" -- the
      Board's People Resources Committee or any successor committee with
      responsibility for compensation.

            

    

    

    
      	
              2.8

            	
              "Common Stock" -- the
      common stock, par value $0.25 per share, of CIGNA
    Corporation.

            

    

    

    
      	
              2.9

            	
              "Company" -- CIGNA
      Corporation, a Delaware corporation, and/or its
    Subsidiaries.

            

    

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
 

    
      	
              2.10

            	
              "Deferred Compensation
      Plan" -- a Company deferred compensation plan, or another
      arrangement of the Company which has been designated by the Committee as a
      "Deferred Compensation Plan" for purposes of this
  Plan.

            

    

    

    
      	
              2.11

            	
              "Disability" --
      permanent and total disability as defined in Code Section
      22(e)(3).

            

    

    

    
      	
              2.12

            	
              "Early Retirement" -- a
      Termination of Employment, after appropriate notice to the Company, (a) on
      or after a Participant has reached age 55 (but not age 65) and attained at
      least five years of service (as determined under the rules for counting
      vesting service under the CIGNA Pension Plan), or (b) upon such terms and
      conditions approved by the Committee or officers of the Company designated
      by the Board or the Committee.

            

    

    

    
      	
              2.13

            	
              "Eligible Employee" -- a
      salaried officer or other key employee of the
  Company.

            

    

    

    
      	
              2.14

            	
              "Exchange Act" -- the
      Securities Exchange Act of 1934, as
amended.

            

    

    

    
      	
              2.15

            	
              "Expiration Date" -- the
      last date, specified in an Option or SAR grant, on which an Option or SAR
      may be exercised.

            

    

    

    
      	
              2.16

            	
              "Fair Market Value" --
      the average of the highest and lowest quoted selling prices as reported on
      the Composite Tape (or any successor method of publishing stock prices) as
      of 4:00 p.m. Eastern time (or such other time as trading on the New York
      Stock Exchange may close) on the date as of which any determination of
      stock value is made.  If the Composite Tape (or any successor
      publication) is not published on that date, the determination will be made
      on the next preceding date of publication.  In the absence of
      reported Common Stock sales, the Committee will determine Fair Market
      Value by taking into account all facts and circumstances the Committee
      deems relevant, subject to the requirements of Code Section
      409A.

            

    

    

    
      	
              2.17

            	
              "Incentive Stock Option"
      -- an Option described by Code Section
422(b).

            

    

    

    
      	
              2.18

            	
              "Nonqualified Option" --
      an Option that is not an Incentive Stock
Option.

            

    

    

    
      	
              2.19

            	
              "Option" -- a right
      granted under Article 5 to purchase one or more shares of Common
      Stock.

            

    

    

    
      	
              2.20

            	
              "Participant" -- an
      Eligible Employee who has received an award under the
  Plan.

            

    

    

    
      	
              2.21

            	
              "Payment" -- the
      compensation due a Participant, or Participant's estate, under Article 10
      of the Plan on account of a grant of Performance Shares or
      Units.

            

    

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
 

    
      	
              2.22

            	
              "Payment Date" -- the
      date that a Qualifying Plan payment is made (or would have been made if
      not deferred under Section 9.3).

            

    

    

    
      	
              2.23

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

            

    

    

    
      	
              2.24

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

            

    

    

    
      	
              2.25

            	
              "Performance Objectives"
      -- the written objective performance goals applicable to performance
      conditions for Restricted Stock granted under Section 7.3 or Strategic
      Performance Shares or Strategic Performance Units granted under Section
      10.1.  To the extent required by Code Section 162(m), the
      Performance Objectives shall be stated in terms of one or more Performance
      Measures.  Performance Objectives may be for the Company as a
      whole, for one or more of its subsidiaries, business units, lines of
      business or for any combination of the foregoing and may be absolute or
      may require comparing the Company's financial performance to that of a
      Peer Group or of a specified index or indices, or be based on a
      combination of the foregoing.

            

    

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
 

    
      	
              2.26

            	
              "Performance Period" --
      the period, specified by the Committee, during which Performance
      Objectives applicable to Strategic Performance Shares or Strategic
      Performance Units are
      measured.

            

    

    

    
      	
              2.27

            	
              "Person" -- the meaning
      given in Section 3(a)(9) of the Exchange Act, as modified and used in
      Sections 13(d) and 14(d) thereof, except that such term shall not include
      (a) CIGNA Corporation or any of its Subsidiaries, (b) a trustee or other
      fiduciary holding securities under an employee benefit plan of CIGNA
      Corporation or any of its Affiliates, (c) an underwriter temporarily
      holding securities pursuant to an offering of such securities, or (d) a
      corporation owned, directly or indirectly, by the stockholders of CIGNA
      Corporation in substantially the same proportions as their ownership of
      stock of CIGNA Corporation.

            

    

    

    
      	
              2.28

            	
              "Plan" -- the CIGNA
      Long-Term Incentive Plan.

            

    

    

    
      	
              2.29

            	
              "Prior Plan" -- the
      CIGNA Long-Term Incentive Plan as restated effective January 1, 2000 and
      as amended through July 2004.

            

    

    

    
      	
              2.30

            	
              "Qualifying Plan" -- any
      Company bonus plan, short-term or long-term incentive compensation plan,
      any other incentive compensation arrangement or any supplemental
      retirement benefit plan that is not tax qualified under the
      Code.

            

    

    

    
      	
              2.31

            	
              "Restricted Period" --
      the period during which Common Stock is subject to restrictions under
      Section 7.2.

            

    

    

    
      	
              2.32

            	
              "Restricted Stock" --
      Common Stock granted under Article 7 that remains subject to a Restricted
      Period.

            

    

    

    
      	
              2.33

            	
              "Retirement" -- a
      Participant’s Termination of Employment, after appropriate notice to the
      Company, on or after a Participant has reached age 65 and attained at
      least five years of service (as determined under the rules for counting
      vesting service under the CIGNA Pension Plan) or upon such other terms and
      conditions approved by the Committee, or officers of the Company
      designated by the Board or the
Committee.

            

    

    

    
      	
              2.34

            	
              "SAR" -- a stock
      appreciation right granted under Article
6.

            

    

    

    
      	
              2.35

            	
              "SEC" -- the Securities
      and Exchange Commission.

            

    

    

    
      	
              2.36

            	
              "Strategic Performance
      Share" or "Performance Share" --
      an amount of incentive opportunity available for award to a Participant
      for a specified Performance Period, with a value equal to the Fair Market
      Value of one share of Common Stock.

            

    

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
 

    
      	
              2.37

            	
              "Strategic Performance
      Unit" or "Unit"
      -- the smallest amount of incentive opportunity available for award
      to a Participant for a specified Performance Period, with a target value
      of $75.00 per Unit unless a different target value is established by the
      Committee at the time a Unit award is
made.

            

    

    

    
      	
              2.38

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

            

    

    

    
      	
              2.39

            	
              "Termination for Cause"
      -- a Termination of Employment initiated by the Company on account of the
      conviction of an employee of a felony involving fraud or dishonesty
      directed against the Company.

            

    

    

    
      	
              2.40

            	
              "Termination of
      Employment" -- the termination of the Participant's employment
      relationship with the Company (unless otherwise expressly provided by the
      Committee) or a transaction by which the Participant's employing Company
      ceases to be a Subsidiary.

            

    

    

    
      	
              2.41

            	
              "Termination Upon a Change of
      Control" -- a Termination of Employment upon or within two years
      after a Change of Control (a) initiated by the Company or a successor
      other than a Termination for Cause or (b) initiated by a Participant after
      determining in the Participant’s reasonable judgment that there has been a
      material reduction in the Participant’s authority, duties or
      responsibilities, any reduction in the Participant’s compensation, or any
      change caused by the Company in the Participant’s office location of more
      than 35 miles from its location on the date of the Change of
      Control.

            

    

    

    
      	
              2.42

            	
              "Vesting Percentage" --
      the ratio, determined by the Committee, of Performance Shares payable
      under Section 10.3 to Performance Shares granted under Section
      10.1.

            

    

    

    

    ARTICLE
3

    Participation

    

    3.1           Participation.  An
Eligible Employee who receives an authorized award under the Plan shall become a
Participant upon receipt of the award.

    

    3.2   Directors.  Members
of the Board who are not employed by the Company are not eligible to participate
in the Plan.

    

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
 

    ARTICLE
4

    Authorized
Incentive Awards

    

    4.1 Authorized
Awards.  The Plan’s authorized awards are: (a) Options
(including Incentive Stock Options); (b) SARs; (c) Restricted Stock; (d)
dividend equivalent rights; (e) Common Stock in lieu of cash or other awards
payable under a Qualifying Plan; (f) Strategic Performance Shares; and (g)
Strategic Performance Units.

    

    4.2 General Powers of the
Committee.  Subject to the requirements of the Plan and
Delaware law, the Committee may in its sole discretion select Participants,
grant them any authorized awards in amounts and combinations, and upon terms and
conditions, as it shall determine, and exercise any other authority granted to
the Committee under the Plan.   The Committee may delegate to the
CEO or the CEO’s designee any such authority; however, no power or authority
delegated by the Committee under the Plan may be exercised (a) to affect the
terms and conditions of an award made to anyone subject to the requirements of
Section 16(a) of the Exchange Act or (b) as to matters reserved to the Board
under the Delaware General Corporation Law.

    

    4.3           General Powers of the
CEO.  Subject to the requirements of Delaware law, the CEO
shall have the authority and discretion to select Participants and grant them
any authorized awards in amounts and combinations and upon terms and conditions
as the CEO shall determine, subject to the same limitations and provisions that
apply under the Plan to the Committee, and also subject to the
following:

    

    
      	
              (a)

            	
              The
      CEO may not grant any awards to or for the benefit of (1) members of the
      Board or (2) anyone subject to the requirements of Exchange Act Section
      16(a);

            

    

    

    
      	
              (b)

            	
              The
      CEO must be a member of the Board when the CEO grants any award under the
      Plan and must be properly empowered by the Board to grant such award;
      and

            

    

    

    
      	
              (c)

            	
              The
      total number of shares of Common Stock which may be issued pursuant to
      awards granted under this Section 4.3 is limited to a maximum of 10% of
      the number of shares of Common Stock authorized to be issued under the
      Plan.

            

    

    

    4.4           Term Limit.  No
awards may be made under this Plan after December 31, 2014.

    

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
 

    ARTICLE
5

    Stock
Options

    

    5.1           General.  Subject to
any Plan limitations and provisions, the Committee may grant Options to Eligible
Employees upon terms and conditions that it may establish, including
restrictions on the right to exercise Options.  However, no Option
shall be exercisable by a Participant within one year after the Option grant
date, except as provided under the Plan or the terms of the Option grant upon a
Participant’s Termination of Employment due to death, Disability, Early
Retirement or Retirement or a Participant’s Termination Upon a Change of
Control.

    

    5.2   Option Price.  The
exercise price per share of any Option shall not be less than the Fair Market
Value on the grant date.  The Option price may be paid in cash or, if
the Committee so provides, in Common Stock.  Common Stock used to pay
the Option price shall be valued using the Fair Market Value on the Option
exercise date.

    

    5.3           Maximum Term.  No
Expiration Date shall be more than 10 years after the Option grant
date.  Under Section 5.5, an Option may expire earlier than the
Expiration Date specified in the Option grant.

    

    5.4           Leave of
Absence.  Unless otherwise expressly provided by the Committee,
no Option may be exercised during a leave of absence except to the extent
exercisable immediately before the start of the leave.  Termination of
Employment during a leave of absence shall be treated under Section 5.5 the same
as Termination of Employment during a period of active employment.

    

    
      	
              5.5

            	
              Expiration of
      Options.

            

    

    

    
      	
              (a)  

            	
              Except
      as provided elsewhere in Section 5.5, any outstanding Option held by a
      Participant at Termination of Employment shall expire on the date of
      Termination of Employment.

            

    

    

    
      	
              (b)  

            	
              Any
      outstanding Option held by a Participant at Termination Upon a Change of
      Control shall:

            

    

    

    
      	
              (1)  

            	
              Become
      exercisable no later than the date of the Participant’s Termination of
      Employment to the extent not already exercisable;
  and

            

    

    

    
      	
              (2)  

            	
              Expire
      on the earlier of 3 months from the date of Termination of Employment or
      the Expiration Date.

            

    

    

    
      	
              (c)  
      

            	
              Any
      outstanding Option held by a Participant at Termination of Employment due
      to death, Disability, Early Retirement or Retirement shall become or
      remain exercisable in accordance with the terms and conditions established
      by the Committee at the time of
grant.

            

    

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
 

    5.6    No Repricing; No Automatic Option
Grants (Reloads).  Without prior approval of CIGNA Corporation
shareholders, the Committee may not:

    

    
      	
              (a)

            	
              Cancel
      a previously granted Option and grant a replacement Option if the new
      Option exercise price is lower than that of the canceled
      Option;

            

    

    

    
      	
              (b)

            	
              Provide
      for any automatic grant of a new Option upon a Participant’s exercise of
      any Option granted under the Plan;
or

            

    

    

    
      	
              (c)

            	
              Amend
      an Option to lower the Option exercise price, except for adjustments
      required or otherwise made under Article 12, or take any other action that
      could constitute a repricing.

            

    

    

    5.7           Incentive Stock
Options.  The following terms and conditions shall apply to any
Options granted under the Plan that are identified as Incentive Stock
Options.

    

    
      	
              (a)  

            	
              Incentive
      Stock Options may be granted only to Eligible Employees who are employed
      by CIGNA Corporation or a corporation that is either a direct Subsidiary
      or an indirect Subsidiary through an unbroken chain of
      corporations.

            

    

    

    
      	
              (b)  

            	
              No
      Incentive Stock Option may be granted after December 31,
    2014.

            

    

    

    
      	
              (c)  

            	
              No
      Incentive Stock Option may be granted to any person who, at the time of
      grant, owns (or is deemed to own under Code Section 424(d)) shares of
      outstanding Common Stock possessing more than 10% of the total combined
      voting power of all classes of stock of CIGNA Corporation or a Subsidiary,
      unless the Option exercise price is at least 110% of the Fair Market Value
      on the grant date of the stock subject to the Option and the Option by its
      terms is not exercisable after the expiration of five years after the
      Option grant date.

            

    

    

    
      	
              (d)  
      

            	
              To
      the extent that the aggregate Fair Market Value of stock with respect to
      which the Incentive Stock Options first become exercisable by a
      Participant in any calendar year exceeds $100,000 (taking into account
      both Common Stock subject to the Incentive Stock Options under this Plan
      and stock subject to Incentive Stock Options under all other Company
      plans, if any), such Options shall be treated as Nonqualified
      Options.  For this purpose the Fair Market Value of the stock
      subject to Options shall be determined as of the date the Options were
      awarded.  In reducing the number of options treated as Incentive
      Stock Options to meet the $100,000 limit, the most recently granted
      Options shall be reduced first.  To the extent a reduction of
      simultaneously granted Options is necessary to meet the $100,000 limit,
      the Committee may, in the manner and to the extent permitted by law,
      designate which shares of Common Stock are to be treated as shares
      acquired pursuant to the exercise of an Incentive Stock
      Option.

            

    

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
 

    
      	
              (e)

            	
              Any
      grant of Incentive Stock Options shall include whatever terms and
      conditions are required to meet the requirements of Code Section
      422.

            

    

    

    

    ARTICLE
6

    Stock
Appreciation Rights

    

    6.1           General.  Subject to
any Plan limitations and provisions, after January 1, 2005 the Committee may
grant SARs to Eligible Employees upon terms and conditions it may establish,
including restrictions on the right to exercise SARs.  However, no SAR
shall be exercisable by a Participant within one year after the SAR grant date,
except as provided under the Plan or the terms of the SAR grant upon a
Participant’s Termination of Employment due to death, Disability, Early
Retirement or Retirement or a Participant’s Termination Upon a Change of
Control.

    

    6.2           Maximum Term.  No
SAR shall be exercisable more than 10 years after the SAR grant
date.  Under Section 6.5, an SAR may expire earlier than the
expiration date specified in the SAR grant.

    

    6.3           SAR Exercise.  The
SAR shall entitle the Participant to receive upon exercise of the SAR, without
payment to the Company, a whole number of shares of Common Stock determined by
multiplying (a) and (b) and dividing the result by (c):

    

    
      	
              (a)

            	
              Total
      number of shares subject to the SAR that the Participant designates for
      SAR exercise, up to the maximum number available for exercise as of the
      SAR exercise date;

            

    

    

    
      	
              (b)

            	
              Excess
      of (1) the Fair Market Value of a share of Common Stock on the SAR
      exercise date over (2) the Fair Market Value of a share of Common Stock on
      the grant date of the SAR; and

            

    

    

    
      	
              (c)

            	
              Fair
      Market Value of a share of Common Stock on the SAR exercise
      date.

            

    

    

    Any
fractional share of Common Stock resulting from this calculation shall be
ignored.

    

    Upon
exercise of an SAR, the number of shares that the Participant designates for
exercise will be subtracted from the number of shares available under the SAR
immediately before the SAR exercise to determine the remaining number of shares,
if any, that the Participant may designate for any future exercise of the
SAR.

    

    6.4           Leave of
Absence.  Unless otherwise expressly provided by the Committee,
no SAR may be exercised during a leave of absence except to the extent
exercisable immediately before the start of the leave.  Termination of
Employment during a leave of absence shall be treated under Section 6.5 the same
as Termination of Employment during a period of active employment.

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
 

    
      	
              6.5

            	
              Expiration of
      SARs.

            

    

    

    
      	
              (a)

            	
              Except
      as provided elsewhere in Section 6.5, any outstanding SAR held by a
      Participant at Termination of Employment shall expire on the date of
      Termination of Employment.

            

    

    

    
      	
              (b)

            	
              Any
      outstanding SAR held by a Participant at Termination Upon a Change of
      Control shall:

            

    

    

    
      	
               
      

            	
              (1)

            	
              Become
      exercisable no later than the date of the Participant’s Termination of
      Employment to the extent not already exercisable;
  and

            

    

    

    
      	
               
      

            	
              (2)

            	
              Expire
      on the earlier of 3 months from the date of Termination of Employment or
      the SAR Expiration Date.

            

    

    

    
      	
              (c)

            	
              Any
      outstanding SAR held by a Participant at Termination of Employment due to
      death, Disability, Early Retirement or Retirement shall become or remain
      exercisable in accordance with the terms and conditions established by the
      Committee at the time of grant.

            

    

    

    6.6           No Repricing; No Automatic SAR Grants
(Reloads).  Without prior approval of CIGNA Corporation
shareholders, the Committee may not:

    

    
      	
              (a)

            	
              Cancel
      a previously granted SAR and grant a replacement SAR if the Fair Market
      Value on date of grant of the new SAR is lower than the Fair Market Value
      on date of grant of the canceled
SAR;

            

    

    

    
      	
              (b)  

            	
              Provide
      for any automatic grant of a new SAR upon a Participant’s exercise of any
      SAR granted under the Plan; or

            

    

    

    
      	
              (c)

            	
              Amend
      a SAR to lower the SAR exercise price, except for adjustments required or
      otherwise made under Article 12, or take any other action that could
      constitute a repricing.

            

    

    

    

    ARTICLE
7

    Restricted
Stock Grants

    

    7.1           General.  Subject to
any limitations and provisions in the Plan, the Committee may grant Restricted
Stock to Eligible Employees upon terms and conditions it may
establish.  The consideration for a Restricted Stock grant may be
solely in the form of the recipient's services rendered to the Company, or it
may be any other lawful form of consideration the Committee may
determine.

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    
 

    7.2           Restricted
Period.  Except as provided below, Restricted Stock shall not
be sold, transferred, assigned, pledged or otherwise disposed of by the
Participant during the Restricted Period established by the
Committee.  The Committee may establish different Restricted Periods
and different restriction terms for shares contained in a single Restricted
Stock grant.  No more than 5% of the Restricted Stock granted under
the Plan shall have a Restricted Period less than three years.

    

    7.3           Performance
Conditions.  The Committee may grant Restricted Stock that is
subject to performance conditions, as follows:

    

    
      	
              (a)

            	
              Restricted
      Stock may automatically be forfeited to the Company at the end of the
      Restricted Period unless, and to the extent that, the Company meets
      specified Performance Objectives;
or

            

    

    

    
      	
              (b)

            	
              The
      Restricted Period applicable to Restricted Stock may end earlier if, and
      to the extent that, the Company meets specified Performance
      Objectives.

            

    

    

    If the
Committee grants Restricted Stock subject to performance conditions, at the time
of grant the Committee shall establish the applicable Performance Measures,
Performance Objectives, vesting schedule and, if the Performance Objectives
require comparing the Company's financial results to those of a Peer Group, the
composition of the Peer Group.  To the extent required by Code Section
162(m), before the vesting of any Restricted Stock subject to performance
conditions, the Committee shall certify in writing that the Performance
Objectives established at time of grant have been met.  The Committee
may establish different performance conditions for shares contained in a single
Restricted Stock grant.  No Eligible Employee may receive more than
450,000 shares (after adjustment for the 3-for-1 stock split effective June 4,
2007) of Restricted Stock with performance conditions during any calendar
year.

    

    7.4           Issuance; Voting Rights;
Dividends.  Restricted Stock granted to a Participant shall be
issued by the Company as of the date of the grant.  During the
Restricted Period, the Participant shall be entitled to vote the
shares.  The Committee may provide for the current or deferred
payment, as described below, of dividends on shares of Restricted Stock to the
holders of such shares.  Unless the Committee (or CEO) provides in the
applicable Restricted Stock grant document at the time of grant that dividend
payments are to be deferred, such payments will be made at least annually in
each year that the Restricted Stock is outstanding in an amount equal to the
number of shares of outstanding Restricted Stock multiplied by the amount of any
dividend declared and paid on one share of Common Stock in that year, to the
extent the Restricted Stock is outstanding on each such dividend record
date.  Restricted Stock shall be considered outstanding for this
purpose until the earlier of the lapse of the applicable Restricted Period or
the date the Restricted Stock is forfeited under the terms of the
Plan.  If the Committee (or CEO) provides that dividend payments are
to be deferred, the Committee (or CEO) shall specify in the grant document the
time and form of payment of the deferred dividends in a manner that complies
with the requirements of Code Section 409A and the regulations
thereunder.  Shares issued as a result of stock dividends, splits or
reclassifications, to the extent the issued shares relate to Restricted Stock,
shall be subject to the same limitations, restrictions and provisions that are
applicable to the related Restricted Stock.

     

     

    
 

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    7.5           Termination
of Employment.

    

    
      	
              (a)

            	
              Except
      as provided below, Restricted Stock (and all related rights) held by a
      Participant at Termination of Employment during a Restricted Period shall
      be forfeited to the Company immediately upon Termination of Employment
      (unless otherwise expressly provided by the
  Committee).

            

    

    

    
      	
              (b)

            	
              If
      a Participant's Termination of Employment during a Restricted Period is
      due to Early Retirement or Retirement, the Committee or its designee (in
      the sole discretion of either) may provide before the Participant's
      Termination of Employment that the Restricted Period applicable to any
      Restricted Stock held by the Participant shall lapse immediately upon the
      Participant's Termination of
Employment.

            

    

    

    
      	
              (c)

            	
              If
      a Participant’s Termination of Employment during a Restricted Period is a
      Termination Upon a Change of Control or is due to death or Disability, the
      Restricted Period applicable to any Restricted Stock held by the
      Participant shall lapse immediately on date of Termination of
      Employment.

            

    

    

    7.6           Leave of
Absence.  The Committee shall determine the effect of approved
leaves of absence on applicable Restricted Periods.  No Restricted
Period, however, may lapse during an approved leave of absence unless expressly
provided by the Committee.

    

    ARTICLE
8

    Dividend
Equivalent Rights

    

    8.1           General.  Subject to
the limitations and provisions of the Plan, the Committee may grant dividend
equivalent rights to Eligible Employees upon terms and conditions it may
establish.  The consideration for stock issued pursuant to dividend
equivalent rights may be solely in the form of the recipient's services rendered
to the Company, or it may be any other lawful form of consideration as the
Committee may determine.

    

     8.2           Rights and Options or
SARs.  Each right may relate to a specific Option or SAR
granted under the Plan and may be granted to the Option or SAR holder at the
same time as the Option or SAR grant or later, or each right may be independent
of any Option or SAR.  No payment pursuant to a right that relates to
a specific Option or SAR granted under this Plan shall be contingent upon the
exercise of such related Option or SAR.

    

    8.3           Nature of
Rights.  The right shall entitle a holder to receive, for a
period of time determined by the Committee and specified in the applicable grant
document at the time of grant of such right, a payment or payments, as described
in Section 8.4.  If the right relates to a specific Option or SAR, the
period shall not extend beyond the earlier of the date the Option or SAR is
exercised or the Option or SAR Expiration Date.

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    
 

    8.4           Payments.  The
Committee shall determine at time of grant whether payment pursuant to a right
shall be made in cash or Common Stock, or a combination of
both.  Unless the Committee (or CEO) provides in the applicable grant
document that payments are to be deferred, payments will be made at least
annually in each year that the right is outstanding in an amount equal to the
number of outstanding rights multiplied by the amount of any dividend declared
and paid on one share of Common Stock in that year, to the extent the right is
outstanding on each such dividend record date.  A dividend equivalent
right shall cease to be outstanding on the earlier of the end of the time period
specified by the Committee in the applicable grant document or the date such
right is forfeited under the terms of the Plan.  If the Committee (or
CEO) provides that the payments are to be deferred, the Committee (or CEO) shall
specify in the grant document the time and form of payment in a manner that
complies with the requirements of Code Section 409A and the regulations
thereunder.

    

    8.5    Termination of
Employment.  Any dividend equivalent right held by a
Participant at Termination of Employment for any reason shall be forfeited to
the Company immediately upon Termination of Employment, unless otherwise
expressly provided by the Committee.

    

    

    ARTICLE
9

    Common
Stock in Place of Other Awards

    

    9.1           General.  The
Committee may grant an Eligible Employee Common Stock instead of all or a
portion (determined by the Committee) of an award otherwise payable under a
Qualifying Plan.  The grant shall be for a number of shares of Common
Stock that have an aggregate Fair Market Value, determined as of the Payment
Date, that most closely approximates, but does not exceed, the dollar amount of
the award being replaced by the Common Stock if made in cash.

    

    9.2           Death; Termination of
Employment.   Unless the Committee, in its sole
discretion, provides otherwise, a Common Stock grant approved under Section 9.1
for a Participant whose Termination of Employment occurs before the Payment Date
shall still be granted.  If the reason for Termination of Employment
is the Participant's death, however,
the Common Stock grant shall automatically be canceled, and the award payment
shall be made in accordance with the terms of the Qualifying Plan.

    

    9.3           Deferral of
Payments.  A Common Stock grant approved under Section 9.1
shall be deferred if the Participant had made a timely election to defer the
underlying award under a Deferred Compensation Plan, subject to the provisions
of the Deferred Compensation Plan and Code Section 409A, if
applicable.  Common Stock that would have been issued but for deferral
under this provision shall be issued under this Plan at the end of the deferral
period.

     

    
 

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

    ARTICLE
10

    Strategic
Performance Units; Strategic Performance Shares

    

    10.1           Award
of Units and Shares.

    

    
      	
              (a)

            	
              The
      Committee may in its sole discretion grant Strategic Performance Shares,
      Strategic Performance Units or both to Eligible Employees selected for
      participation for a Performance
Period.

            

    

    

    
      	
              (b)

            	
              The
      Committee, the CEO or the CEO’s designee may grant Strategic Performance
      Shares (subject to the requirements of Delaware law), Strategic
      Performance Units, or both to a person who becomes an Eligible Employee
      during a Performance Period as long as any such grant
      made by the CEO or the CEO’s designee is (1) in accordance with guidelines
      approved by the Committee or (2) subject to ratification by the Committee
      before any resulting Payment is
made.

            

    

    

    
      	
              (c)

            	
              During
      any calendar year an Eligible Employee may receive no more than 100,000
      Performance Shares (before adjustment for the 3-for-1 stock split
      effective June 4, 2007) or 100,000 Units, or a combination of 100,000
      Performance Shares (before adjustment the 3-for-1 stock split effective
      June 4, 2007) and Units.  After adjustment for the 3-for-1 stock
      split effective June 4, 2007, (1) the maximum number of Performance Shares
      that an Eligible Employee may receive during any calendar year is 300,000,
      and (2) when an Eligible Employee receives a combination of Performance
      Shares and Units, each Unit awarded shall reduce the maximum number of
      awardable Performance Shares by three and every three Performance Shares
      awarded shall reduce the maximum number of awardable Units by
      one.  For example, if an Eligible Employee is awarded 50,000
      Units in a calendar year, the maximum number of awardable Performance
      Shares the Eligible Employee could receive for that year is
      150,000.

            

    

    

    10.2           Performance Goals; Financial
Measures.  When the Committee grants Performance
Shares or Units for a particular Performance Period, it shall:

    

    
      	
              (a)

            	
              Establish
      in writing the Performance Objectives and the Performance Measures
      applicable to the Performance
Period;

            

    

    

    
      	
              (b)

            	
              Determine
      the length of the Performance Period and, if the Performance Objectives
      require comparing the Company's financial results to those of a Peer
      Group, the composition of the Peer Group;
and

            

    

     

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    
 

    
      	
              (c)

            	
              Determine
      the formula or method for determining the Vesting Percentage for
      Performance Shares and the value of
Units.

            

    

    

    10.3           Vesting Percentage; Value of
Units.  After the close of the Performance Period, the
Committee will determine the preliminary Vesting Percentage and/or Unit value
based on the applicable formula or method under Section 10.2(c).  The
preliminary Vesting Percentage and/or Unit value may be adjusted downward by the
Committee based upon the Committee's evaluation of CIGNA Corporation's strategic
accomplishments over the Performance Period.  The final Vesting
Percentage shall not exceed 200%, and the final Unit value shall not exceed
$200.00.  To the extent required by Code Section 162(m), before
Payment of any Performance Share or Unit, the Committee shall certify in writing
that the Vesting Percentage or Unit value for the Performance Period is based on
the attainment of the pre-established Performance Objectives for the Performance
Period.

    

    

    10.4           Performance Share or Unit
Payment.

    

    
      	
              (a)

            	
              After
      the Committee has determined the Vesting Percentage or Unit value for a
      Performance Period and subject to Sections 10.5 and 10.6, the Company
      shall make Payments to Participants to whom Performance Shares or Units
      were granted for the Performance
Period.

            

    

    

    
      	
              (b)

            	
              Payment
      to a Participant for a grant of Performance Shares shall equal (1) the
      number of Performance Shares granted to the Participant multiplied by (2)
      the Vesting Percentage determined under Section 10.3.  This
      product shall be multiplied by the Fair Market Value of Common Stock on
      the date the Committee determines the Vesting Percentage, to the extent
      the Committee provides for payment of Performance Shares in
      cash.

            

    

    

    
      	
              (c)

            	
              Payment
      to a Participant for a grant of Units shall equal the number of Units
      granted to the Participant multiplied by the Unit value determined under
      Section 10.3.

            

    

    

    
      	
              (d)  

            	
              Notwithstanding
      the above, the Committee in its sole discretion may reduce the amount of
      any Payment to any Participant or eliminate entirely the Payment to any
      Participant.  The Committee's authority under this Section
      10.4(d) shall expire immediately upon a Change of
  Control.

            

    

    

    10.5           Eligibility
for Payments.

    

    
      	
              (a)

            	
              Except
      as described in Section 10.5(b), (c) and (d), a Participant shall be
      eligible to receive a Payment for a Performance Period under Section 10.4
      only if the Participant has been employed by the Company continuously from
      the date of Participant's grant of Performance Shares and/or Units through
      the date of Payment.

            

    

     

     

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    
 

    
      	
              (b)

            	
              For
      the purposes of this Section 10.5, a leave of absence of less than three
      months' duration with the approval of the Company is not considered to be
      a break in continuous employment.  In the case of a leave of
      absence of three months or longer, the Committee shall determine whether
      or not the leave of absence constitutes a break in continuous employment
      for purposes of a Payment.

            

    

    

    
      	
              (c)

            	
              If
      the employment of a Participant is terminated by reason of Early
      Retirement, Retirement, death or Disability after receipt of a Performance
      Share or Unit grant, but before the related Payment is made, the Committee
      or its designee shall determine whether a Payment under Section 10.4 shall
      be made to or on behalf of such Participant, and whether the Payment, if
      made, shall be in full or prorated based on factors determined in the sole
      discretion of the Committee or its designee.  Any such Payment
      shall be made to the Participant or the Participant's estate in accordance
      with Section 10.6.

            

    

    

    
      	
              (d)

            	
              In
      the event of a Participant’s Termination Upon a Change of Control, all of
      the Participant’s outstanding Performance Share and Units as of the date
      of the Participant’s Termination Upon a Change of Control shall be paid in
      accordance with Section 10.6.

            

    

    

    
      	
              (e)

            	
              In
      the case of Units described in Section 10.5(d), the value of each Unit
      shall be the greatest of:

            

    

    

    
      	
               
      

            	
              (1)

            	
              The
      Unit target value;

            

    

    

    
      	
               
      

            	
              (2)

            	
              The
      highest value established by the Committee for any Unit Payments made to
      any Participants during the twelve-month period immediately preceding the
      date of Participant's Termination Upon a Change of Control;
    or

            

    

    

    
      	
               
      

            	
              (3)

            	
              The
      average of the highest values established by the Committee for the last
      two Unit Payments made to any Participants before the Participant's
      Termination Upon a Change of
Control.

            

    

    

    
      	
              (f)

            	
              In
      the case of Performance Shares described in Section 10.5(d), the
      applicable Vesting Percentage shall be the greatest
  of:

            

    

    

    
      	
               
      

            	
              (1)

            	
              100%;

            

    

     

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              (2)

            	
              The
      Vesting Percentage for the Performance Period that ended immediately
      before the Participant’s Termination Upon a Change of Control;
      or

            

    

    

    
      	
               
      

            	
              (3)

            	
              The
      average of the Vesting Percentages established by the Committee for the
      last two Performance Periods that ended before the Participant's
      Termination Upon a Change of
Control.

            

    

    

    10.6           Time and Form of
Payment.

    

    
      	
              (a)

            	
              Unless
      otherwise provided at the time of award, Payments shall be made in the
      year following the close of the Performance Period.  Payments
      shall be made in a single lump sum in the form of cash, shares of Common
      Stock, or a combination of these forms of Payment, as determined by the
      Committee in its sole discretion.

            

    

    

    
      	
              (b)

            	
              If
      a Payment is made wholly or partially in shares of Common Stock, the
      Payment shall be made in a number of whole shares.  That number
      of shares shall have an aggregate Fair Market Value that most closely
      approximates, but does not exceed, the dollar amount of the Payment if
      made in cash.

            

    

    

    

    ARTICLE
11

    Shares
Authorized under the Plan

    

    11.1           Maximum Number
Authorized.

    

    
      	
              (a)

            	
              The
      number of shares of Common Stock authorized to be issued pursuant to
      Options, SARs, rights, grants or other awards under this Plan shall be (a)
      the 75 million shares (after adjustment for the 3-for-1 stock split
      effective June 4, 2007) previously authorized for issuance under the Prior
      Plan as described in Section 11.1(c), plus (b) any shares remaining as of
      the date the Plan is approved by shareholders of the 30 million shares
      (after adjustment for the 3-for-1 stock split effective June 4, 2007)
      authorized for issuance under the CIGNA Corporation Stock Plan as
      described in Article I and Section
11.1(c).

            

    

     

     

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    
 

    
      	
              (b)

            	
              The
      maximum aggregate number of shares that may be issued as Incentive Stock
      Options is 30 million (after adjustment for the 3-for-1 stock split
      effective June 4, 2007).  No more than nine million (after
      adjustment for the 3-for-1 stock split effective June 4, 2007) of the
      shares authorized for issuance under the Plan may be awarded or granted,
      from and after the date CIGNA Corporation shareholders approve this
      amended and restated Plan, under Articles 7, 8, 9 and 10 in the form of
      Common Stock.

            

    

    

    
      	
              (c)

            	
              The
      total number of shares previously authorized by CIGNA Corporation
      shareholders under the Prior Plan were: 15 million shares (after
      adjustment for a 3-for-1 stock split in May 1998) authorized at the annual
      shareholders meeting on April 26, 1995 and 10 million shares authorized at
      the annual shareholders meeting on April 26, 2000.   CIGNA
      Corporation shareholders had also previously authorized 10 million shares
      for issuance under the CIGNA Corporation Stock Plan at the CIGNA
      Corporation annual meeting on April 24,
1991.

            

    

    

    11.2           Maximum Number Per
Participant.  The aggregate number of shares of Common Stock
subject to Options and SARs that may be granted during any calendar year to any
individual shall be limited to 7,500,000 (after adjustment for the 3-for-1 stock
split effective June 4, 2007).

    

    11.3           Share Counting.

    

    
      	
              (a)

            	
              From
      and after January 1, 2005, the following shall not reduce the number of
      authorized shares of Common Stock available for issuance under this
      Plan:

            

    

    

    
      	
               
      

            	
              (1)

            	
              Common
      Stock reserved for issuance upon exercise or settlement, as applicable, of
      awards granted under the Plan, to the extent the awards expire or
      are canceled or surrendered;

            

    

    

    
      	
               
      

            	
              (2)

            	
              Restricted
      Stock granted under the Plan, to the extent such Restricted Stock is
      forfeited under Section 7.5 or is otherwise surrendered to the Company
      before the Restricted Period expires;
and

            

    

    

    
      	
               
      

            	
              (3)

            	
              Awards,
      to the extent the payment is actually made in
  cash.

            

    

    

    
      	
              (b)

            	
              From
      and after January 1, 2005, the following shares shall not become available
      for issuance under the Plan:

            

    

    

    
      	
               
      

            	
              (1)

            	
              Shares
      tendered by Participants as full or partial payment to the Company upon
      exercise of Options granted under this
Plan;

            

    

     

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              (2)

            	
              Shares
      reserved for issuance upon grant of SARs, to the extent the number of
      reserved shares exceeds the number of shares actually issued upon exercise
      of the SARs; and

            

    

    

    
      	
               
      

            	
              (3)

            	
              Shares
      withheld by, or otherwise remitted to, the Company to satisfy a
      Participant's tax withholding obligations upon the lapse of restrictions
      on Restricted Stock or the exercise of Options or SARs granted under the
      Plan or upon any other payment or issuance of shares under the
      Plan.

            

    

    

    11.4           No Fractional
Shares.  No fractional shares of Common Stock shall be issued,
accepted as payment of an Option exercise price or remitted to meet
tax-withholding obligations under the Plan.

    

    11.5           Source of
Shares.  Common Stock may be issued from authorized but
unissued shares or out of shares held in CIGNA Corporation's treasury, or
both.

    

    

    ARTICLE
12

    Antidilution
Provisions

    

    Except as
expressly provided under the Plan, the following provisions shall apply to all
shares of Common Stock (including Restricted Stock) authorized for issuance and
all Options and SARs granted under the Plan:

    

    12.1           Stock Dividends, Splits,
Etc.  In the event of a stock dividend, stock split, or other
subdivision or combination of the Common Stock:

    

    
      	
              (a)  

            	
              The
      number of authorized shares of Common Stock, and any numerical share
      limits, under the Plan will be adjusted proportionately;
    and

            

    

    

    
      	
              (b)

            	
              There
      will be a proportionate adjustment in: the number of shares of Common
      Stock subject to unexercised stock Options and SARs; the per share Option
      and SAR exercise price (but without adjustment to the aggregate Option or
      SAR exercise price); the number of shares of Restricted Stock outstanding;
      and the number of Strategic Performance Shares
  outstanding.

            

    

    

    12.2           Merger, Exchange or
Reorganization.  If the outstanding shares of Common Stock are
changed or converted into, exchanged or exchangeable for, a different number or
kind of shares or other securities of CIGNA Corporation or of another
corporation, by reason of a reorganization, merger, consolidation,
reclassification or combination (an “Event”), appropriate adjustment shall be
made by the Committee in the number of shares and kind of Restricted Stock and
Common Stock for which Options, SARs and other rights may be or may have been
awarded under this Plan, so that the proportionate interests of Participants
shall be maintained as before the Event.  However, in case of any
contemplated Event which may constitute a Change of Control, the Committee, with
the approval of a majority of the members of the Board who are not then
Participants, may modify any and all outstanding Restricted Stock, Options, SARs
and other rights (except those deferred under Section 9.3), so as to accelerate,
as a consequence of or in connection with the Event, the vesting of a
Participant's right to exercise any such Options or SARs or the lapsing of the
Restricted Periods for shares of Restricted Stock.

     

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    
 

    12.3           No New Grant.  No
adjustment to an Option or SAR shall be made under this Article 12 in a manner
that will be treated under Code Section 409A as the grant of a new Option or
SAR.

    

    

    ARTICLE
13

    Administration
of Plan

    

    13.1           General
Administration.  The Plan shall be administered by the
Committee, subject to any requirements for review and approval by the Board that
the Board may establish.

    

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

    

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

    

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

    

    

    ARTICLE
14

    Amendments

    

    14.1           General
Provisions.  All amendments to this Plan shall be in writing
and shall be effective when approved by the Board, except that a Plan amendment
shall not be effective without the prior approval of CIGNA Corporation
shareholders if necessary under Internal Revenue Service or SEC regulations, or
the rules of the New York Stock Exchange or any applicable
law.  Unless otherwise expressly provided by an amendment or the
Board, no amendment to this Plan shall apply to any Plan awards made before the
effective date of the amendment.  A Participant's rights under any
Plan grants or awards, including any rights under paragraph 10.5(d), and a
transferee's rights relating to any transferred derivative securities, may not
be abridged by any amendment, modification or termination of the Plan without
the Participant’s individual consent.

     

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    
 

    14.2           Compliance with Code Section
409A.  It is intended that the Plan comply with the
requirements of Code section 409A, and the Plan shall be so administered and
interpreted.  The Board or Committee may make any changes required to
conform the Plan and any Option agreements or other grants with applicable Code
provisions and regulations relating to Incentive Stock Options or to deferral of
compensation under Code Section 409A.

    

    

    ARTICLE
15

    Other
Provisions

    

    15.1           Effective Date.  The
Plan as amended and restated is effective as of January 1, 2008.

    

    15.2           Duration of the
Plan.  The Plan shall remain in effect until all Options and
rights granted under the Plan have been satisfied by the issuance of Common
Stock or terminated under the terms of this Plan, all Restricted Periods
applicable to Restricted Stock granted under the Plan have lapsed, and all
Performance Periods related to Performance Shares and Units granted under the
Plan have expired, and all related Performance Share or Unit Payments have been
made.

    

    15.3           Early
Termination.  Notwithstanding Section 15.2, the Board may
terminate this Plan at any time; but no such action by the Board shall adversely
affect the rights of Participants which exist under this Plan immediately before
its termination.

    

    15.4           General
Restriction.  No Common Stock issued pursuant to this Plan
shall be sold or distributed by a Participant until all appropriate listing,
registration and qualification requirements and consents and approvals have been
obtained, free of any condition unacceptable to the Board.  In no
event shall the value, amount or form of consideration for any award under the
Plan be less than the value or amount, or in other than the form, required by
applicable Delaware law.

    

    15.5           Awards
Not Assignable.

    

    
      	
              (a)

            	
              No
      derivative security (as defined in rules promulgated under Exchange Act
      Section 16), including any right to receive Common Stock (such as Options,
      SARs or similar rights), or any Strategic Performance Shares or Strategic
      Performance Units, or any right to payment under the Plan, shall be
      assignable or transferable by a Participant except by will or by the laws
      of descent and distribution.  Any other attempted assignment or
      alienation shall be void and of no force or effect.  Any right
      to receive Common Stock or any other derivative security (including
      Options, SARs or similar rights) shall be exercisable during a
      Participant's lifetime only by the Participant or by the Participant's
      guardian or legal representative.

            

    

     

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    
 

    
      	
              (b)

            	
              Notwithstanding
      Section 15.5(a), the Committee shall have the authority, in its
      discretion, to grant (or to sanction by way of amendment of an existing
      grant) derivative securities (other than Incentive Stock Options) that may
      be transferred without consideration by the Participant during the
      Participant’s lifetime to any member of the Participant’s immediate
      family, to a trust established for the exclusive benefit of one or more
      members of the Participant’s immediate family, to a partnership of which
      the only partners are members of the Participant’s immediate family, or to
      such other person as the Committee shall permit.   In the
      case of a grant, the written documentation containing the terms and
      conditions of such derivative security shall state that it is
      transferable, and in the case of an amendment to an existing grant, such
      amendment shall be in writing.  A derivative security
      transferred as contemplated in this Section 15.5(b) may not be
      subsequently transferred by the transferee except by will or the laws of
      descent and distribution and shall continue to be governed by and subject
      to the terms and limitations of the Plan and the relevant
      grant.  The Committee, in its sole discretion at the time the
      transfer is approved, may alter the terms and limitations of the relevant
      grant and establish such additional terms and conditions as it shall deem
      appropriate.  As used in this subparagraph, "immediate family"
      shall mean, as to any person, a current or former spouse or domestic
      partner (as defined under the CIGNA Pension Plan), any child, stepchild or
      grandchild, and shall include relationships arising from legal
      adoption.

            

    

    

    15.6           Withholding
Taxes.  Upon the exercise of any Option or SAR, the vesting of
any Restricted Stock, or payment of any award described in Section 4.1(d), (e),
(f) or (g), or upon the exercise of an Incentive Stock Option prior to the
satisfaction of the holding period requirements of Code Section 422, the Company
shall have the right at its option to:

    

    
      	
              (a)

            	
              require
      the Participant (or personal representative or beneficiary) to remit an
      amount sufficient to satisfy applicable federal, state and local
      withholding taxes; or

            

    

    

    
      	
              (b)

            	
              deduct
      from any amount payable the amount of any taxes the Company may be
      required to withhold because of the
transaction.

            

    

    

    The
Committee may require or permit the Participant to remit all or part of the
required withholding amount in Common Stock (other than Restricted
Stock).  The remitted Common Stock may be shares deliverable to the
Participant because of the transaction giving rise to the withholding obligation
(in which case the number of shares of Common Stock delivered to a Participant
shall be reduced by the number of shares so remitted) or shares the Participant
has owned without restriction for at least six months as of the date the
withholding obligation arises.  If the Committee permits a Participant
to elect to remit Common Stock, the election shall be made on or before the date
the withholding obligation arises and be subject to the disapproval of the
Committee.  The Committee may establish any additional conditions it
deems appropriate.  The value of any remitted Common Stock shall be
its Fair Market Value as of the date the withholding obligation
arises.

     

     

    
 

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    15.7           Book Entry;
Certificates.  A book entry shall be made in the electronic
share ownership records maintained by the Company or the Company’s transfer
agent as evidence of the issuance of Common Stock to a Participant (or
beneficiary) upon a Restricted Stock grant, the exercise of an Option or any
other grant or payment of Common Stock under the Plan.  The Company or
its transfer agent shall deliver to any Participant (or beneficiary), upon the
Participant’s (or beneficiary’s) request and subject to the Participant’s (or
beneficiary’s) compliance with applicable administrative procedures the Company
or its transfer agent may establish, a certificate for any of the shares
evidenced by book entry.  A certificate for Restricted Stock, however,
will not be delivered until the applicable Restricted Period has
expired.

    

    15.8           Participant's Rights
Unsecured.  The right of any Participant to receive future
payments under the provisions of the Plan shall be an unsecured claim against
the general assets of the Company.

    

    15.9           Future Award Not
Guaranteed.  Any award to a Participant described in Section
4.1 is not intended to be, or to be construed as, a right to receive another
award at any later time.

    

    15.10         Termination of
Employment.  The Company retains the right to terminate the
employment of any employee at any time for any reason or no reason, and an award
or grant under the Plan to an Eligible Employee is not, and shall not be
construed in any manner to be, a waiver of that right.

    

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

    

    15.12         Construction.  The
terms used in this Plan shall include the feminine as well as the masculine
gender and the plural as well as the singular, as the context in which they are
used requires.

    

    15.13         Interpretation.  All
statutory or regulatory references in this Plan shall include successor
provisions.

    

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

     

     

     

    25ex10-12.htm

    

    Exhibit 10.12

    

    CIGNA
DEFERRED COMPENSATION PLAN OF 2005

    (Effective as of January 1,
2005)

    

    Due to
requirements imposed by Internal Revenue Code Section 409A, CIGNA is freezing
the CIGNA Deferred Compensation Plan (Amended and Restated as of October 24,
2001) as of December 31, 2004 and adopting this new plan – the CIGNA Deferred
Compensation Plan of 2005, effective as of January 1, 2005.  The
frozen CIGNA Deferred Compensation Plan will continue to apply to amounts that
were deferred on or before December 31, 2004 and earnings
thereon.  This new plan will apply to amounts that are deferred after
December 31, 2004 and earnings thereon.

    

    ARTICLE
1

    Definitions

    

    These
terms have the following meanings under the Plan.

    

    
      	
              1.1

            	
              "Account" – the separate
      bookkeeping account established for a Participant that represents the
      Company’s unfunded, unsecured obligation to make future payments to the
      Participant.

            

    

    

    
      	
              1.2

            	
              "Administrator" – the
      person or committee charged with responsibility for administration of the
      Plan.

            

    

    

    
      	
              1.3

            	
              "Affiliate" – the
      meaning set forth in Rule 12b-2 promulgated under the Exchange
      Act.

            

    

    

    
      	
              1.4

            	
              "Beneficial Owner" and
      "Beneficially
      Owned" – the meaning set forth in Rule 13d-3 promulgated under the
      Exchange Act.

            

    

    

    
      	
              1.5

            	
              "Beneficiary" – the
      person or trust designated in writing under the Plan by the Participant to
      receive payment of his/her remaining Account balance after Participant’s
      death.

            

    

    

    
      	
              1.6

            	
              "Board Committee" – the
      People Resources Committee of the Board of Directors, or any successor
      committee.

            

    

    

    
      	
              1.7

            	
              "Board of Directors" –
      the board of directors of CIGNA
Corporation.

            

    

    

    
      	
              1.8

            	
              "Change of Control" – any
      of these events:

            

    

    

    
      	
            	
              (a)  

            	
              a
      corporation, person or group acting in concert, as described in Exchange
      Act Section 14(d)(2), holds or acquires beneficial ownership within the
      meaning of Rule 13d-3 promulgated under the Exchange Act of a number of
      preferred or 

            

    

    
      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

    

    
      	 	common
      shares of CIGNA Corporation having 25% or more of the combined voting
      power of CIGNA Corporation's then outstanding securities;
  or

    

     

    
      	
            	
              (b)  

            	
              there
      is consummated a merger or consolidation of CIGNA Corporation or any
      direct or indirect subsidiary of CIGNA Corporation with any other
      corporation, other than:

            

    

    

    (1)           a
merger or consolidation immediately following which the individuals who
constituted the Board of Directors immediately prior thereto constitute at least
a majority of the board of directors of the entity surviving such merger or
consolidation or the ultimate parent thereof, or

    

    (2)           a
merger or consolidation effected to implement a recapitalization of CIGNA
Corporation (or similar transaction) in which no Person is or becomes the
Beneficial Owner, directly or indirectly, of securities of CIGNA Corporation
(not including in the securities Beneficially Owned by such Person any
securities acquired directly from CIGNA Corporation or its Affiliates)
representing 25% or more of the combined voting power of the CIGNA Corporation's
then outstanding securities; or

    

    
      	
            	
              (c)  

            	
              a
      change occurs in the composition of the Board of Directors at any time
      during any consecutive 24-month period such that the Continuity Directors
      cease for any reason to constitute a majority of the Board of
      Directors.  For purposes of the preceding sentence "Continuity
      Directors" shall mean those members of the Board of Directors who either:
      (1) were directors at the beginning of such consecutive 24-month period;
      or (2) were elected by, or on nomination or recommendation of, at least a
      majority of the Board of Directors (other than a director whose initial
      assumption of office is in connection with an actual or threatened
      election contest, including but not limited to a consent solicitation,
      relating to the election of directors of CIGNA Corporation);
      or

            

    

    

    
      	
            	
              (d)  

            	
              the
      shareholders of CIGNA Corporation approve a plan of complete liquidation
      or dissolution of CIGNA Corporation or there is consummated an agreement
      for the sale or disposition by CIGNA Corporation of all or substantially
      all of CIGNA Corporation's assets, other than a sale or disposition by
      CIGNA Corporation of all or substantially all of CIGNA Corporation's
      assets immediately following which the individuals who constituted the
      Board of Directors immediately prior thereto constitute at least a
      majority of the board of directors of the entity to which such assets are
      sold or disposed or any parent
thereof.

            

    

    

    Notwithstanding
the foregoing, a "Change of Control" shall not be deemed to have occurred by
virtue of the consummation of any transaction or series of integrated
transactions immediately following which the record holders of the common stock
of CIGNA Corporation immediately prior to such transaction or series of
transactions 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    continue
to have substantially the same
proportionate ownership in an entity which owns all or substantially all of the
assets of CIGNA Corporation immediately following such transaction or series of
transactions.

    

    
      	
              1.9

            	
              "CIGNA Stock" – the
      common stock of CIGNA Corporation.

            

    

    

    
      	
              1.10

            	
              "Code" – the Internal
      Revenue Code of 1986, as amended.

            

    

    

    
      	
              1.11

            	
              "Company" – CIGNA
      Corporation and each Subsidiary that has been authorized by the Chief
      Executive Officer of CIGNA Corporation to participate in the
      Plan.

            

    

    

    
      	
              1.12

            	
              "Corporate Committee" –
      the CIGNA Corporation Corporate Benefit Plan Committee, or any successor
      committee.

            

    

    

    
      	
              1.13

            	
              "Deferral Election" – the
      form described in Section 2.3 by which a Participant specifies amounts and
      items of compensation to be
deferred.

            

    

    

    
      	
              1.14

            	
              "Deferred Cash" –
      compensation deferred under the Plan that would otherwise have been paid
      to a Participant in cash.

            

    

    

    
      	
              1.15

            	
              "Deferred CIGNA
      Stock" – compensation
      deferred under the Plan that would otherwise have been paid to a
      Participant in shares of CIGNA
Stock.

            

    

    

    1.16         "ERISA" – the Employee
Retirement Income Security Act of 1974, as amended.

    

    1.17         "Exchange Act" – the Securities
Exchange Act of 1934, as amended.

    

    
      	
              1.18

            	
              "Participant" – an
      employee of a Company who elects to participate in the Plan in accordance
      with the terms and conditions of the
Plan.

            

    

    

    
      	
              1.19

            	
              "Payment Election" – the
      form described in Section 4.3 by which a Participant specifies the method
      and time of payment of compensation deferred under the
    Plan.

            

    

    

    
      	
              1.20

            	
              "Performance-based
      Compensation" – compensation as
      defined under Treasury Regulation Section
  1.409A-1(e).

            

    

    

    
      	
              1.21

            	
              "Person" – the meaning
      given in Section 3(a)(9) of the Exchange Act, as modified and used in
      Sections 13(d) and 14(d) thereof, except that such term shall not include
      (a) CIGNA Corporation or any of its Subsidiaries, (b) a trustee or other
      fiduciary holding securities under an employee benefit plan of CIGNA
      Corporation or any of its Affiliates, (c) an underwriter temporarily
      holding securities pursuant to an offering of such securities, or (d) a
      corporation owned, directly or indirectly, by the stockholders of CIGNA
      

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	 	Corporation
      in substantially the same proportions as their ownership of stock of CIGNA
      Corporation.

    

    

    
      	
              1.22

            	
              "Plan" – the CIGNA
      Deferred Compensation Plan of 2005 (Effective as of January 1, 2005), as
      it may be amended or restated.

            

    

    

    
      	
              1.23

            	
              "Separation from Service"
      – a Participant’s death,
      retirement or other termination of employment, from the Participant’s
      employer or service recipient within the meaning of Treasury Regulation
      Section 1.409A-1(h).  For this purpose, the level of reasonably
      anticipated, permanently reduced, bona fide services that will be treated
      as a Separation from Service is 30%.  Generally, a Participant’s
      Separation from Service occurs when the Participant’s level of services to
      CIGNA Corporation and its affiliates is reduced by 70% or
      more.

            

    

    

    
      	
              1.24

            	
              "Stock Plan" – a plan or
      program that provides for payment of compensation in the form of shares of
      CIGNA Stock.

            

    

    

    
      	
              1.25

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

            

    

    

    
      	
              1.26

            	
              "Valuation Date" – the
      last day of each month.

            

    

    

    

    ARTICLE
2

    Participation;
Deferral Elections

    

    2.1           Eligibility.  The
Plan is intended primarily to provide deferred compensation for a select group
of management and highly compensated employees.  The Corporate
Committee shall determine which Company employees are eligible to participate in
the Plan.

    

    2.2           Participation.   An
eligible employee becomes a Participant by making a Deferral Election described
in Section 2.3.

    

    
      	
              2.3

            	
              Deferral
      Election.

            

    

    

    
      	
              (a)  

            	
              A
      Deferral Election specifies the amounts and items of compensation a
      Participant elects to defer under the Plan for a particular calendar
      year.  The Administrator shall determine which items or
      categories of compensation may be deferred under the Plan.  The
      Deferral Election must be timely (as described in Section 2.3(b)) and in a
      form permitted or required 

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	 	by
      the Administrator.  The Administrator may permit or require
      electronic forms.  The Administrator shall determine whether a
      Deferral Election form is sufficiently complete and timely and may reject
      any form that is incomplete and/or
untimely.

    

    

    
      	
              (b)  

            	
              To
      be timely, a Deferral Election must be received by the Administrator no
      later than:

            

    

    

    
      	
            	
              (1)  

            	
              Six
      months before the end of the applicable performance period, for a deferral
      of Performance-based Compensation, provided
  that:

            

    

    

    (A) the
Participant performs services for the Company continuously from the later
of:

     

    (i) the
beginning of the applicable performance period, or

    

    (ii) the
date the applicable performance criteria are established

    

    through
the date the Deferral Election is made, and

    

    (B) the
Deferral Election is made before the amount of the Performance-based
Compensation is both first calculable and substantially certain to be
paid;

    

    
      	
            	
              (2)  

            	
              December
      31 of the year before the year in which the Participant performs services
      in exchange for the compensation to be deferred, for compensation other
      than Performance-based Compensation; or

            
	 	 	 
	 	
              (3)

            	

              The
      30th calendar day after the date a Company employee first becomes eligible
      to participate in the Plan, provided such employee is not already eligible
      to participate in a plan that would be aggregated with the Plan under
      Treasury Regulation Section 1.409A-1(c)(2), and further provided that such
      employee was not eligible to participate in the Plan, or any other plan
      that would be aggregated with the Plan under Treasury Regulation Section
      1.409A-1(c)(2), at any time during the 24-month period ending on the date
      such employee again became eligible to participate in the
      Plan.  A Deferral Election by a newly eligible employee shall
      apply only to compensation for services the employee performs after the
      Administrator receives the Deferral
Election.

            

    

     

    However,
the Administrator may establish different deadlines to the extent permitted by
Code Section 409A and the regulations thereunder.

    

    
      	
              (c)  

            	
              An
      employee who makes a Deferral Election must also make a Payment Election
      (described in Section 4.3) applicable to such Deferral
      Election.  If a Participant makes more than one Deferral
      Election in a year, the Administrator may require that the Payment
      Election applicable to the first Deferral Election shall apply to any
      later Deferral Election in that year.  The Payment Election must
      be received by the Administrator by the Deferral Election deadline stated
      in Section 2.3(b).  The Administrator shall determine when a
      

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	 	Deferral
      Election and Payment Election become irrevocable, but in no event shall a
      Deferral Election or a Payment Election become irrevocable later than the
      applicable deadline set forth in Section 2.3(b)
above.

    

    

    
      	
              (d)  

            	
              The
      Administrator may require Participants to make new Deferral Elections for
      each new calendar year.

            

    

    

    
      	
              (e)  

            	
              Deferral
      Elections under this Plan shall apply only to compensation payable on or
      after January 1, 2005 and only to the extent such compensation
      is:

            

    

    

    
      	
               
      

            	
              (1)

            	
              For
      services performed for the Company on or after January 1, 2005;
      or

            

    

    

    
      	
               
      

            	
              (2)

            	
              Compensation
      for which a Deferral Election may otherwise be made under transition rules
      promulgated pursuant to Code Section
409A.

            

    

    

    2.4         Cancellation of Deferral
Elections.  The Plan Administrator may cancel the Deferral
Election of a Participant who incurs a disability.  Any cancellation
under this section must occur by the later of the end of the calendar year in
which the Participant incurs the disability or the 15th day of
the third month after the date the Participant incurs the
disability.  For purposes of this section, "disability" shall have the
meaning set forth in Treasury Regulation Section
1.409A-3(j)(4)(xii).

    

    ARTICLE
3

    Deferred
Compensation Account

    

    3.1           General.  The
Administrator shall establish and maintain an Account for each
Participant.  The Administrator shall credit to the Account any
compensation deferred by a Participant under the Plan.  The
Administrator shall also credit (or debit) to the Account any hypothetical
income (or losses) on the deferred compensation.  The credit for
deferred compensation shall be effective as of the date the compensation would
have otherwise been paid to the Participant.  The credit (or debit)
for hypothetical income (or losses) shall be as provided in Section 3.3 or 3.4,
as applicable.

    

    3.2           Account
Balance.  The balance of each Participant's Account shall
include compensation deferred by the Participant under this Plan and
hypothetical income (or losses).  The Account balance shall be reduced
by any payments under Article 4.  The Administrator shall determine
each Participant's Account balance as of each Valuation Date.  The
Administrator shall provide each Participant an Account statement at least
annually.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    3.3           Hypothetical Investment of Deferred
Cash.

    

    
      	
              (a)  

            	
              Deferred
      Cash shall be treated as invested in one or more hypothetical investments
      described in Section 3.3(b).  The Administrator shall credit (or
      debit) to the Participant's Account as of each Valuation Date hypothetical
      income (or losses) based on the performance of the applicable hypothetical
      investment.  The credit (or debit) shall be applied against the
      balance of Participant’s Account on the immediately preceding Valuation
      Date. The Administrator shall have authority to adopt, and from time to
      time change, rules and procedures for crediting (or debiting) hypothetical
      income (or losses) as to any amount of Deferred Cash that has been
      credited to a Participant’s Account for less than the entire month ending
      on the Valuation Date.

            

    

    

    
      	
              (b)  

            	
              The
      Corporate Committee shall determine at least one hypothetical investment
      for Deferred Cash and may provide some or all Plan Participants with
      options for more than one hypothetical investment.  The
      Corporate Committee may add or eliminate hypothetical investments at any
      time, but any such action shall apply to the balance of a Participant’s
      Account no earlier than the Valuation Date immediately after the Corporate
      Committee changes hypothetical investments.  The Administrator
      shall have authority to adopt rules and procedures by which a Participant
      with a choice of more than one hypothetical investment may change
      hypothetical investment elections, provided that a Participant shall not
      be able to make changes more than once each calendar
    quarter.

            

    

    

    
      	
              (c)  

            	
              If
      a Change of Control occurs, the annual income earned on at least one
      hypothetical fixed return guaranteed principal investment must be not less
      than 50 basis points over the Ten-year Constant Treasury Maturity Yield as
      reported by the Federal Reserve Board, based upon the November averages
      for the preceding year.

            

    

    

    3.4         Hypothetical Investment of Deferred
CIGNA Stock.  Deferred CIGNA Stock shall be credited to
Participant’s Account as a number of shares of hypothetical CIGNA
Stock.  The number shall initially be the same number of shares that
would have been issued to the Participant but for the deferral.  After
the initial credit, the number shall be adjusted as appropriate to reflect stock
dividends, splits and reclassifications in accordance with the terms of the
applicable Stock Plan.  Deferred CIGNA Stock may not be deemed
invested in any other hypothetical investment.  An amount equal to the
dividends which would otherwise be paid on shares of Deferred CIGNA Stock shall
be credited to the Participant’s Account as Deferred Cash, as of the applicable
dividend payment date, and deemed invested under Section 3.3.  The
Administrator shall take necessary action to avoid deferral or issuance of
fractional shares of CIGNA Stock.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    ARTICLE
4

    Payment
of Deferred Compensation

    

    4.1           General.  The
Company shall pay amounts credited to Participant's Account balance according to
the Participant's Payment Elections or under the other applicable provisions of
Article 4.  Deferred CIGNA Stock shall be paid only in shares of CIGNA
Stock issued under the applicable Stock Plan.  The applicable Stock
Plan is the plan under which the shares would have previously been issued but
for the Participant’s deferral, or a successor plan.

    

    4.2           Payment Methods and
Timing.

     

    
      	(a)	(1) 	

              Subject
      to the conditions in Section 4.2(b) through (f), the Administrator shall
      have the authority to determine the payment methods and timing permitted
      under the Plan; any such payment methods and timing shall comply with the
      requirements of Code Section 409A.

            
	 	 	 
	
               
      

            	
              (2)

            	
              Payment
      events under the Plan may include a Participant’s Separation from Service,
      a specified date before a Participant’s Separation from Service, a
      Participant’s unforeseeable emergency (as described in Section 4.4), the
      Participant’s death (as described in Section 4.5), or other payment
      events specified by the Administrator, to the extent permitted by Code
      Section 409A.  A payment upon a Participant’s unforeseeable
      emergency or death shall supersede any elected specified date or
      Separation from Service payment for the amount distributed by reason of
      unforeseeable emergency or death.

            

    

    

    (3)           Payment
methods under the Plan may include lump sum and periodic payments.

    

    
      	
              (b)

            	
              A
      Participant who makes a specified date Payment Election must also make a
      Separation from Service Payment Election that will apply instead of the
      specified date Payment Election if the Participant has a Separation from
      Service before the elected specified date of
  payment.

            

    

    

    
      	
              (c)

            	
              If
      the payments are to begin as a result of a Participant’s Separation from
      Service then, subject to the other provisions of Article 4, payment shall
      be made (or begin) in July of the year following the year of the
      Participant’s Separation from
Service.

            

    

    

    
      	
              (d)

            	
              If
      a payment method provides for periodic payments, payments shall be made
      annually each July, over the elected period not to exceed 15
      years.  The balance of a Participant's Account shall be paid, in
      all events, no later than July 31st
      of the 15th year after the year of the Participant’s Separation from
      Service.

            

    

    

    
      	
              (e)

            	
              To
      the extent there is not in effect at Participant's Separation from Service
      a valid Payment Election for an amount, that amount shall be paid in a
      single lump sum in July of the year

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
      	 	following
      the year of the Participant’s Separation from
Service.

    

    

    
      	
              (f)

            	
              Periodic
      payments under this Plan shall not be suspended if the Participant is
      rehired by the Company.

            

    

    

    4.3           Payment Election.

    

    
      	
              (a)  

            	
              Subject
      to Section 4.2, a Payment Election must specify the payment method that
      shall apply to Participant’s deferred compensation and either the time of
      payment or the time payments are to
begin.

            

    

    

    
      	
              (b)  

            	
              A
      Payment Election must be in a form permitted or required by the
      Administrator.  The Administrator may permit or require
      electronic forms.  The Administrator shall determine whether a
      Payment Election form is sufficiently complete and timely and may reject
      any form that is incomplete and/or
untimely.

            

    

    

    
      	
              (c)  

            	
              A
      Participant may make separate Payment Elections for Deferred Cash and
      Deferred CIGNA Stock.

            

    

    

    4.4           Unforeseeable Emergency
Payment.

    

    
      	
              (a)  

            	
              If
      the Administrator, after considering a Participant's written request,
      determines that the Participant has an unforeseeable emergency, as defined
      under Treasury Regulation Section 1.409A-3(i)(3), that is beyond the
      Participant’s control and of such a substantial nature that immediate
      payment of Deferred Cash or issuance of Deferred CIGNA Stock is warranted,
      the Administrator in its sole and absolute discretion may direct that all
      or a portion of the Participant's Account be paid to the
      Participant.  The amount of the payment shall be limited to the
      amount deemed necessary by the Administrator to satisfy the emergency
      need.  The payment shall be made in a single lump sum within 90
      days following the Administrator’s approval of Participant’s written
      request for an unforeseeable emergency
payment.

            

    

    

    
      	
              (b)  

            	
              The
      Administrator shall cancel the Deferral Election of a Participant who
      receives a payment under Section 4.4(a) or a payment for an unforeseeable
      emergency, as defined under Treasury Regulation Section 1.409A-3(i)(3),
      under a predecessor to this Plan.  The cancellation shall be
      effective as of the date of the payment.  To resume deferrals,
      the Participant must make a new Deferral Election in accordance with the
      requirements of Section 2.3.

            

    

    

    4.5           Payments of a Deceased Participant's
Account.

    

    
      	
              (a)  

            	
              Upon
      the death of a Participant the Administrator shall pay any remaining
      portion of Participant’s Account in a single lump sum payment to
      Participant’s Beneficiary.  The

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
      	 	Administrator
      may establish rules and procedures for designation of beneficiaries and
      shall make determinations regarding the existence and identity of
      beneficiaries and the validity of beneficiary designations.  A
      Participant may designate more than one
beneficiary.

    

    

    
      	
              (b)  

            	
              Notwithstanding
      Section 4.5(a), the Administrator shall pay Participant’s Account in a
      single lump sum payment to the Participant's estate
  if:

            

    

     

    
      	
            	
              (1)

            	The
      Participant dies without having a valid beneficiary designation in
      effect;

    

     

    
      	
            	

              (2)   

            	

              The
      Participant's designated Beneficiary died before the Participant died;
      or

            

    

     

    
      	
            	

              (3)   

            	

              The
      Participant's designated Beneficiary cannot be found after what the
      Administrator determines has been a reasonably diligent
      search.

            

    

    

    
      	
              (c)

            	
              The
      Administrator shall make any payments described in Section 4.5(a) and (b)
      during the 90 day period beginning January 1 of the year following the
      year the Participant dies.

            

    

    

    

    ARTICLE
5

    General
Provisions

    

    5.1           Participant's Rights
Unsecured.  The right of a Participant (or Beneficiary) to
receive payments under the Plan represents an unsecured claim against the
general assets of the Company that employs the Participant at the time that the
compensation deferred otherwise would have been paid, or against the general
assets of any successor company that assumes (or in case Participant transfers
to employment with a different Company, is assigned) the liabilities of that
Company.  No Company guarantees or is liable for payments to any
Participant employed by any other Company.  Participant’s Account
represents a mere promise by a Company to make payments in the
future.  The Plan at all times shall be considered entirely unfunded
for both tax purposes and for purposes of Title I of ERISA.

    

    5.2           Assignability.  Except
as otherwise permitted by applicable law, no right to receive Plan
payments shall be transferable or assignable by a Participant or Beneficiary or
subject in any manner to anticipation, sale, alienation, pledge, encumbrance,
attachment or garnishment by creditors of a Participant or Beneficiary, any such
attempt shall be void and of no force or effect.

    

    5.3           Administration.  CIGNA
Corporation’s Chief Executive Officer shall appoint the
Administrator.  Except as otherwise provided by the Plan, the
Administrator shall administer the Plan and shall have authority to adopt
administrative rules and regulations. The Administrator may, by contract,
designation or other arrangement, provide for others to perform ministerial
duties and record keeping.  If the Administrator is also a
Participant, the Corporate Committee (and not the Administrator) shall take any
action under the Plan related to that Participant.

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    5.4           Administrative
Discretion.   The Administrator and Corporate Committee
shall, as to the responsibilities allocated to them separately under the Plan,
have the sole and absolute discretion to interpret, construe and implement the
provisions of the Plan, including any disputed or ambiguous terms; to make
determinations relating to eligibility and benefits; and to make findings of
fact.  Their determinations shall be final and binding on all
parties.

    

    5.5           Amendment.  The Plan
may be amended, restated, modified, or terminated by the Board of Directors or
the Board Committee.  No amendment, restatement, modification, or
termination shall reduce, impair or adversely affect the balance of a
Participant's Account as of the Valuation Date immediately preceding such
action.

    

    5.6           Tax
Withholding.   To the extent required by the law in effect
at the time a Plan payment is made, the Administrator shall take appropriate
action to withhold taxes from the payment.

    

    5.7           Corporate
Reorganization.  If a company that employs a Participant ceases
to be a Subsidiary and retains liabilities and responsibility for a
Participant’s Account, then the Corporate Committee and Administrator shall have
no further liability or responsibility for that Account or any legal obligation
toward Participant after the company ceases to be a Subsidiary.  That
company shall designate a governing committee and plan administrator, as
appropriate, to assume liability and responsibility for administration of the
Account as of the date the company ceases to be a Subsidiary.

    

    5.8           Section 409A
Compliance.  It is intended that the Plan comply with the
requirements of Code Section 409A, and the Plan shall be so administered and
interpreted.  Notwithstanding anything in this Plan to the contrary,
the Code Section 409A transition relief opportunities adopted by Board Committee
Resolutions dated December 8, 2005 are incorporated by reference into this
Plan.

    

    5.9           Interpretation.  All
statutory or regulatory references in this Plan shall include successor
provisions.

    

    5.10        Claims Procedure.

    

    
      	
              (a)

            	
              Filing a Claim for
      Benefits.  This paragraph 5.10(a) shall apply to any
      claim for a benefit under the Plan.  A Participant or
      Beneficiary or an authorized representative of a Participant or
      Beneficiary (“Claimant”) shall notify the Administrator or its delegate of
      a claim for benefits under the Plan.  Such request may be in any
      form adequate to give reasonable notice to the Administrator or its
      delegate and shall set forth the basis of such claim and shall authorize
      the Administrator or its delegate to conduct such examinations as may be
      necessary to determine the validity of the claim and to take such steps as
      may be necessary to facilitate the payment of any benefits to which the
      Claimant may be entitled under the Plan.  The Administrator
      shall make all determinations as to the right of any person to a benefit
      under the Plan.  

            

    

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    If the
Administrator requires more than 90 days to process a claim because of special
circumstances, an extension may be obtained by notifying the Claimant within 90
days of the date the claim was submitted that a decision on the claim will be
delayed, what circumstances have caused the delay, and when a decision can be
expected.  The extension period shall not exceed an additional 90
days;  provided, however, that in the event the Claimant fails to
submit information necessary to decide a claim, such period shall be tolled from
the date on which the extension notice is sent to the Claimant until the date on
which the Claimant responds to the request for additional
information.

    

    
      	
              (b)

            	
              Denial of
      Claim.  If the Administrator denies in whole or in part
      any claim for benefits under the Plan by any Claimant, the Administrator
      shall, within a reasonable period, furnish the Claimant with written or
      electronic notice of the denial.  The notice of the denial shall
      set forth, in a manner calculated to be understood by the
      Claimant:

            

    

     

    
      	
            	(1)	The
      specific reason or reasons for the
denial;

    

     

    
      	
            	(2) 	

              Specific
      reference to the pertinent Plan provisions on which the denial is
      based;

            

    

     

    
      	
            	(3) 	

              A
      description of any additional material or information necessary for the
      Claimant to perfect the claim and an explanation of why such material or
      information is necessary; and

            

    

     

    
      	
            	

              (4)  

            	

              A
      description of the Plan's review procedures and the time limits applicable
      to such procedures, including a statement of the Claimant's right to bring
      a civil action under ERISA Section 502(a) following an adverse benefit
      determination on review.

            

    

     

    
      	
              (c)

            	
              Appeals
      Procedure.  This paragraph 5.10(c) shall apply to all
      appeals of denied claims under the Plan.  A Claimant may request
      a review of a denied claim.  Such request shall be made in
      writing and shall be presented to the Administrator not more than sixty
      (60) days after receipt by the Claimant of written or electronic notice of
      the denial of the claim.  The Claimant shall be provided, upon
      request and free of charge, reasonable access to, and copies of, all
      documents, records, and other information relevant to the Claimant's claim
      for benefits.  The Claimant shall also have the opportunity to
      submit comments, documents, records, and other information relating to the
      claim for benefits, and the Administrator shall take into account all such
      information submitted without regard to whether such information was
      submitted or considered in the initial benefit determination. The
      Administrator shall make its decision on review not later than sixty (60)
      days after receipt of the Claimant's request for review, unless special
      circumstances require an extension of time, in which case a decision shall
      be rendered as soon as possible, but not later than 120 days after receipt
      of the request for review;  provided, however, in the event the
      Claimant fails to submit information necessary to make a benefit
      determination on review, such period shall be tolled from the date on
      which the extension notice is sent to the Claimant until the date on which
      the Claimant responds to the request for additional
  

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    
      	 	information.  The
      decision on review shall be written or electronic and, in the case of an
      adverse determination, shall include specific reasons for the decision, in
      a manner calculated to be understood by the Claimant, and specific
      references to the pertinent Plan provisions on which the decision is
      based.  The decision on review shall also include (i) a
      statement that the Claimant is entitled to receive, upon request and free
      of charge, reasonable access to, and copies of, all documents, records, or
      other information relevant to the Claimant's claim for benefits; and (ii)
      a statement describing any voluntary appeal procedures offered by the
      Plan, and a statement of the Claimant's right to bring an action under
      ERISA Section 502(a).

    

    

    
      	
              (d)

            	
              The
      Plan’s claims procedure shall be administered in accordance with the
      applicable regulations of the U.S. Department of
  Labor.

            

    

    

    
      	
              (e)

            	
              A
      Claimant shall have no right to bring any action in any court regarding a
      claim for benefits under the Plan prior to the Claimant filing a claim for
      benefits and exhausting the Claimant’s rights to review under this Section
      5.10 in accordance with the time frames set forth
  herein.

            

    

    

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

     

     

    13

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