Document:

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                                                                   Exhibit 10.4

                              THE CHUBB CORPORATION
                      LONG-TERM STOCK INCENTIVE PLAN (2004)

                         RESTRICTED STOCK UNIT AGREEMENT

          This RESTRICTED STOCK UNIT AGREEMENT, dated as of _________, 2006, is
by and between The Chubb Corporation (the "Corporation") and [___________] (the
"Participant"), pursuant to The Chubb Corporation Long-Term Stock Incentive Plan
(2004) (the "Plan"). Capitalized terms that are not defined herein shall have
the same meanings given to such terms in the Plan. If any provision of this
Agreement conflicts with any provision of the Plan (as either may be interpreted
from time to time by the Committee), the Plan shall control.

          WHEREAS, pursuant to the provisions of the Plan, the Committee has
authorized the grant to the Participant of Restricted Stock Units in accordance
with the terms and conditions of this Agreement; and

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

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

          1. Grant of Restricted Stock Units. Pursuant to the provisions of the
Plan, the Corporation on the date set forth above (the "Grant Date") has granted
and hereby evidences the grant to the Participant, subject to the terms and
conditions set forth herein and in the Plan, of an award of [___________]
Restricted Stock Units (the "Award").

          2. Vesting and Rights as a Shareholder. It is understood and agreed
that the grant of the Award evidenced hereby is subject to the following
conditions:

               (a) Restrictions on Transfer. Until settlement of the Restricted
Stock Units in accordance with Section 6, the Restricted Stock Units may not be
sold, assigned, hypothecated, pledged or otherwise transferred or encumbered in
any manner except (i) by will or the laws of descent and distribution or (ii) to
a "Permitted Transferee" (as defined in Section 11(b) of the Plan) with the
permission of, and subject to such conditions as may be imposed by, the
Committee.

               (b) Restriction Period. The Restriction Period applicable to the
Restricted Stock Units covered by the Award shall begin on the date hereof and,
except as otherwise provided in Section 3 or 4, shall, subject to the
Participant's continued employment from the Grant Date, lapse on the third
anniversary of the Grant Date (such date to be hereafter referred to as the
"Vesting Date").

               (c) No Rights as a Shareholder. Until shares of Stock are issued,
if at all, in satisfaction of the Corporation's obligations under this Award, in
the

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time and manner provided in Section 6, the Participant shall have no rights as a
shareholder.

               (d) Dividend Equivalents. Without limiting the generality of the
foregoing, until settlement of the Restricted Stock Units in accordance with
Section 6, as soon as practicable after cash dividends are paid on the Stock,
the Participant shall be paid an amount in cash equal to the amount of dividends
paid on that number of shares of the Stock as is equal to the number of the
Participant's Restricted Stock Units.

          3. Termination of Employment.

               (a) Qualifying Termination of Employment. If the Participant's
employment terminates by reason of a Qualifying Termination of Employment during
the Restriction Period (i.e., before the Vesting Date), the Restriction Period
shall lapse as to (and there shall become vested and non-forfeitable) that
number of Restricted Stock Units equal to the product of ( i ) the number of
Restricted Stock Units covered by the Award and ( ii ) a fraction, the numerator
of which is the number of full calendar months during the Restriction Period
that the Participant was employed and the denominator of which is 36. The
remainder of the Restricted Stock Units covered by the Award shall be forfeited
and cancelled without further action by the Corporation or the Participant as of
the date of such termination of employment.

               (b) Termination for any Other Reason. If the Participant's
employment terminates for any reason other than a Qualifying Termination of
Employment during the Restriction Period (i.e., before the Vesting Date), all of
the Restricted Stock Units covered by the Award shall be forfeited and cancelled
without further action by the Corporation or the Participant as of the date of
such termination of employment. For purposes of the Award, the term "Retirement"
shall mean a termination of the Participant's employment other than for Cause at
or after the Participant's normal retirement age or earliest retirement date, in
each case as specified in the Corporation's Pension Plan. Accordingly, all of
the Restricted Stock Units covered by the Award shall be forfeited and cancelled
without further action by the Corporation or the Participant as of the date a
Participant is terminated for Cause, whether prior to, on, or after the
Participant's normal retirement age or earliest retirement date, in each case as
specified in the Corporation's Pension Plan.

               (c) Transfers between the Corporation and Subsidiaries; Leaves,
Other Absences and Suspension. Transfer from the Corporation to a Subsidiary,
from a Subsidiary to the Corporation, or from one Subsidiary to another shall
not be considered a termination of employment. Any question regarding whether a
Participant's employment has terminated in connection with a leave of absence or
other absence from active employment shall be determined by the Committee, in
its sole discretion, taking into account the provisions of applicable law and
the Corporation's generally applicable employment policies and practices. The
Committee may also suspend the operation of the termination of employment
provisions of this Agreement for such period and upon such terms and conditions
as it may deem necessary or appropriate to further the interests of the
Corporation.

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               (d) Termination Pursuant to a Change in Control. Notwithstanding
the provisions of Section 3(b), if the Participant's employment is involuntarily
terminated other than for Cause or if the Participant terminates employment due
to death or Disability, in all such cases on or after the date the Corporation's
shareholders approve a Change in Control pursuant to subsections (iii) or (iv)
of such definition but prior to the consummation of such Change in Control, the
Participant shall be treated as having continued employment through, and
terminated employment immediately after, such Change in Control.

          4. Change in Control. Notwithstanding anything in Section 6 to the
contrary, in the event a Change in Control occurs, Restricted Stock Units
covered by the Award not previously forfeited pursuant to Section 3 shall be
treated as provided for in Section 9 of the Plan, in which case the Restricted
Stock Units covered by the Award shall become payable as provided in Sections
9(a)(i) and 9(a)(iii) of the Plan or, if applicable, be honored, assumed or
substituted for in accordance with Section 9(b) of the Plan. Notwithstanding the
foregoing, if the Restricted Stock Units shall become earned and payable as
provided in Sections 9(a)(i) and 9(a)(iii) of the Plan, but the accelerated
payment of the Restricted Stock Units would subject the Participant to taxation
under Section 409A of the Code, then the payment due to the Participant shall
not be made until the earliest permissible payment date (including, but not
limited to, the Vesting Date) that would not subject the Participant to taxation
under Section 409A of the Code.

          5. Adjustment in Capitalization. In the event that the Committee shall
determine that any stock dividend, stock split, share combination, extraordinary
cash dividend, recapitalization, reorganization, merger, consolidation,
split-up, spin-off, combination, exchange of shares, warrants or rights offering
to purchase Stock at a price substantially below fair market value, or other
similar corporate event affects the Stock such that an adjustment is required in
order to preserve, or to prevent the enlargement of, the benefits or potential
benefits intended to be made available under this Award, then the Committee
shall, in its sole discretion, and in such manner as the Committee may deem
equitable, adjust any or all of the number and kind of units (or other property)
subject to this Award and/or, if deemed appropriate, make provision for a cash
payment to the person holding this Award, provided, however, that the number of
Restricted Stock Units subject to this Award shall always be a whole number.

          6. Settlement of Restricted Stock Units. Subject to the provisions of
Section 4 and this Section 6, the Corporation shall deliver to the Participant
(or, if applicable, the Participant's Designated Beneficiary or legal
representative) that number of shares of Stock as is equal to the number of
Restricted Stock Units covered by the Award that have become vested and
nonforfeitable as soon as administratively practicable after the earlier of (i)
the Vesting Date or (ii) a Qualifying Termination of Employment, but in no event
later than 2 1/2 months after the end of the calendar year in which the event
described in clause (i) or (ii) occurred; provided, however, that if the
Participant terminates employment by reason of Retirement, the distribution of
shares of Stock in respect of the Participant's Restricted Stock Units shall be
delayed for six months from the date of the Participant's Retirement if the
Participant is a "specified

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employee" (as that term is defined in Section 409A(a)(2)(B)(i) of the Code) if
necessary to avoid the imposition of taxes to the Participant under Section 409A
of the Code. If the Participant is (or is reasonably expected to be) a "covered
employee" within the meaning of Section 162(m) of the Code for the calendar year
in which delivery of Stock would ordinarily be made to the Participant, the
Corporation shall delay delivery of all of such shares of Stock to such
Participant until the Participant's termination of employment with the
Corporation and all members of the controlled group of entities of which the
Corporation is a member. Such Stock shall be delivered to such Participant or
(if the Participant has elected payment in a form other than a lump sum)
commence to be delivered to such Participant as soon as administratively
practicable after the date which is six months after the date of such
termination of employment. Subject to the immediately preceding two sentences,
the Participant may by election filed with the Corporation under its Key
Employee Deferred Compensation Plan (2005) (or any successor plan or program)
(the "Deferred Compensation Plan"), and on a form acceptable to the Committee,
not later than December 31 of the calendar year before the calendar year of the
Grant Date and subject to such terms and conditions as the Committee may
specify, elect to have shares of Stock deliverable in respect of vested and
nonforfeitable Restricted Stock Units deferred until such later date(s) as shall
be specified in such election. Any deferral election made for such Restricted
Stock Units after such December 31 shall be deemed void and without force and
effect.

          7. Notice. Any notice given hereunder to the Corporation shall be
addressed to The Chubb Corporation, Attention: Secretary, 15 Mountain View Road,
P.O. Box 1615, Warren, New Jersey 07061-1615, and any notice given hereunder to
the Participant shall be addressed to the Participant at the Participant's
address as shown on the records of the Corporation.

          8. Restrictive Covenants. As a condition to the receipt of the Award
made hereby, the Participant agrees to be bound by the terms and conditions
hereof and of the Plan, including the following restrictive covenants:

               (a) Non-Disclosure. The Participant shall not, without prior
written authorization from the Corporation, disclose to anyone outside the
Corporation, or use (other than in the Corporation's or any of the Subsidiaries'
business), any confidential information or material relating to the business of
the Corporation or any of the Subsidiaries that is acquired by the Participant
either during or after employment with the Corporation or any of the
Subsidiaries.

               (b) Non-Solicitation. Unless the Participant has received prior
written authorization from the Committee, the Participant shall not during his
or her employment or service with the Corporation or any of the Subsidiaries and
for a period of one (1) year following any termination of such employment or
service relationship (the "Restricted Period"):

                    (i) Directly or indirectly, employ, solicit, persuade,
     encourage or induce any individual employed by the Corporation or any of
     the

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     Subsidiaries to become employed by or associated with any person or entity
     other than the Corporation or any of the Subsidiaries; or

                    (ii) Directly or indirectly, solicit business on behalf of a
     Competitive Business from any Customer with whom the Participant has had,
     or employees reporting to the Participant have had, personal contact or
     dealings with on behalf of the Corporation or any of the Subsidiaries
     during the one (1) year period preceding the Restricted Period.

               (c) Non-Competition. Unless the Participant has received prior
written authorization from the Committee, the Participant shall not, whether
during his or her employment or service with the Corporation or any of the
Subsidiaries or during the Restricted Period, directly or indirectly compete
with the business of the Corporation or any of the Subsidiaries by becoming an
officer, agent, employee, consultant, partner or director of a Competitive
Business, or otherwise render services to or assist or hold an interest (except
as a less than one (1) percent shareholder of a public company) in any
Competitive Business. Notwithstanding the foregoing, it shall not be a violation
of this Section 8(c) for the Participant to serve as a director for any entity
which would otherwise be a Competitive Business if the Participant was serving
as a director for such entity at the time of his or her termination of
employment in compliance with the Corporation's Policy Statement on Conflict of
Interest.

"Customer" shall mean a person or entity to which the Corporation or any of the
Subsidiaries is at the time providing services.

"Competitive Business" shall mean any person or entity (including any joint
venture, partnership, firm, corporation or limited liability company) that
engages, directly or indirectly, in the property and casualty insurance
business, including, but not limited to, commercial insurance, personal
insurance, specialty insurance, surety, excess and surplus lines and/or
reinsurance, and/or any other business which is a significant business of, the
Corporation and the Subsidiaries as of the date of the Participant's termination
of employment or service with the Corporation or any of the Subsidiaries;
provided however, that a business set forth above shall not be considered a
"Competitive Business" in the event that, as of the date of the Participant's
termination of employment or service with the Corporation or any of the
Subsidiaries, such business is no longer a business of the Corporation or any of
the Subsidiaries.

               (d) Inventions. A Participant shall disclose promptly and assign
to the Corporation all right, title, and interest in any invention or idea,
patentable or not, made or conceived by the Participant during employment by the
Corporation or any of the Subsidiaries, relating in any manner to the actual or
anticipated business, research or development work of the Corporation or any of
the Subsidiaries and shall do anything reasonably necessary to enable the
Corporation or any of the Subsidiaries to secure a patent, copyright or any
other intellectual property rights where appropriate in the United States and in
foreign countries.

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<PAGE>

               (e) Relief with Respect to Violations of Covenants. Failure to
comply with the provisions of this Section 8 at any point before the Restricted
Stock Units covered by the Award are settled in accordance with Section 6 of
this Agreement shall cause such Restricted Stock Units to be cancelled and
rescinded without any payment therefor. For the avoidance of doubt, following a
failure to comply with this Section 8, all shares of Stock in respect of any
portion of the Restricted Stock Units covered by the Award for which delivery
has been deferred under the Deferred Compensation Plan in accordance with
Section 2 hereof shall be forfeited, and accordingly the Participant shall have
no further right to delivery or payment in respect of any such shares. In the
event that all or any portion of the Restricted Stock Units covered by this
Award shall have been settled in accordance with the terms of this Agreement
within twelve (12) months of the date on which any breach by the Participant of
any of the provisions of this Section 8 shall have first occurred, the Committee
may require that the Participant repay (with appreciation (if any), determined
up to the date repayment is made), and the Participant shall promptly repay, to
the Corporation the Fair Market Value of any Stock conveyed to the Participant
within such period in respect of such Restricted Stock Units. Additionally, the
Participant agrees that the Corporation shall be entitled to an injunction,
restraining order or such other equitable relief restraining the Participant
from committing any violation of the covenants or obligations contained in this
Section 8. These rescission rights and injunctive remedies are cumulative and
are in addition to any other rights and remedies the Corporation may have at law
or in equity. The Participant acknowledges and agrees that the covenants and
obligations in this Section 8 relate to special, unique and extraordinary
matters and that a violation or threatened violation of any of the terms of such
covenants or obligations will cause the Corporation and the Subsidiaries
irreparable injury for which adequate remedies are not available at law.

               (f) Reformation. The Participant agrees that the provisions of
this Section 8 are necessary and reasonable to protect the Corporation in the
conduct of its business. If any restriction contained in this Section 8 shall be
deemed to be invalid, illegal or unenforceable by reason of the extent, duration
or geographical scope hereof, or otherwise, then the court making such
determination shall have the right to reduce such extent, duration, geographical
scope or other provisions hereof, and in its reduced form such restriction shall
then be enforceable in the manner contemplated hereby.

          9. Withholding. At the Committee's discretion, the Participant shall
be required to either pay to the Corporation the amount of any taxes required by
law to be withheld as may be necessary in the opinion of the Corporation to
satisfy tax withholding required under the laws of any country, state, province,
city or other jurisdiction with respect to Stock deliverable hereunder or, in
lieu thereof, the Corporation shall have the right to retain (or the Participant
may be offered the opportunity to elect to tender) the number of shares of Stock
whose Fair Market Value equals such amount required to be withheld.

          10. Committee Discretion; Delegation. Notwithstanding anything
contained in this Agreement to the contrary, the Committee, in its sole
discretion and in accordance with the terms of the Plan, may take any action
that is authorized under the terms of the Plan that is not contrary to the
express terms hereof, including accelerating

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the lapse of the Restriction Period with respect to all or any portion of the
Restricted Stock Units covered by the Award, at such times (including, without
limitation, upon or in connection with the Participant's termination of
employment) and upon such terms and conditions as the Committee shall determine.
Nothing in this Agreement shall limit or in any way restrict the power of the
Committee, consistent with the terms of the Plan, to delegate any of the powers
reserved to it hereunder to such person or persons as it shall designate from
time to time.

          11. No Right to Continued Employment. Neither the execution and
delivery hereof nor the granting of the Award shall constitute or be evidence of
any agreement or understanding, express or implied, on the part of the
Corporation or any of the Subsidiaries to employ or continue the employment of
the Participant for any period.

          12. Governing Law. The Award and the legal relations between the
parties shall be governed by and construed in accordance with the laws of the
State of New Jersey (without reference to the principles of conflicts of law).

          13. Signature in Counterpart. This Agreement may be signed in
counterparts, each of which shall be an original, with the same effect as if the
signature thereto and hereto were upon the same instrument. This Agreement may
be accepted by the Participant by means of an electronic acceptance.

          14. Binding Effect; Benefits. This Agreement shall be binding upon and
inure to the benefit of the Corporation and the Participant and their respective
successors and permitted assigns. Nothing in this Agreement, express or implied,
is intended or shall be construed to give any person other than the Corporation
or the Participant or their respective successors or assigns any legal or
equitable right, remedy or claim under or in respect of any agreement or any
provision contained herein.

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

          16. Sections and Other Headings. The section and other headings
contained in this Agreement are for reference purposes only and shall not affect
the meaning or interpretation of this Agreement.

          IN WITNESS WHEREOF, the Corporation, by its duly authorized officer,
and the Participant have executed this Agreement in duplicate as of the day and
year first above written.

                                        THE CHUBB CORPORATION

                                        By:
                                            ------------------------------------
                                            Secretary

                                        By:
                                            ------------------------------------
                                            Participant

                                       7EX-10.1

 

Exhibit 10.1

PARTICIPATION UNITS

This Grant Document sets forth the terms and conditions of your grant of Participation Units
(“Participation Units”) under the Merrill Lynch & Co., Inc. (“ML&Co.”) Long-Term Incentive
Compensation Plan (the “Plan”) granted under the Managing Partners Incentive Program (“MPP”) and
convertible into Restricted Shares under the Plan.

	1.	 	THE PLAN

	 
	 	 	This grant is made under the Plan, the terms of which are incorporated into this Grant
Document. Capitalized terms used in this Grant Document that are not defined, shall have the
meanings as used or defined in the Plan, which is included in the Prospectus sent to you with
this grant. Merrill Lynch, as used in this Grant Document, shall mean ML&Co., its subsidiaries
and affiliates. References in this Grant Document to any specific Plan provision shall not be
construed as limiting that provision or the applicability of any other Plan provision.

	 
	2.	 	GRANT CONDITIONS

	 
	 	 	By accepting this grant, you acknowledge that you understand that the grant is subject to all of
the terms and conditions contained in the Plan and in this Grant Document and that you consent
to all grant terms and conditions, including without limitation, the covenants set forth in
paragraph 4 of this Grant Document.

PARTICIPATION UNITS

	 	(a)	 	General. Participation Units represent a conditional right to shares of ML
& Co. Common Stock, dependent upon the attainment of certain goals for the Corporation’s
ROE (defined below), as determined on the Conversion Dates (defined below).

	 
	 	(b)	 	Voting-Dividends. Your Participation Units do not have voting rights. Prior
to the Conversion Dates for the relevant Participation Units, a holder of a Participation
Unit will be paid cash amounts equal to dividends paid on a share of ML&Co. Common Stock,
which shall cease when the Participation Units are no longer outstanding.

	 
	 	(c)	 	Conversion of Participation Units into Restricted Shares. One-third of the
Participation Units shall convert into Restricted Shares (described under “RESTRICTED
SHARES” below) on each of January 31, 2007, January 31, 2008 and January 31 2009 (each a
“Conversion Date”), based on ROE determined for the most recently completed fiscal year.
Participation Units converted on the Conversion Date will cease to be outstanding
immediately following conversion.

	 
	 	(d)	 	Conversion Ratio. The ratio for conversion of Participation Units to
Restricted Shares shall be as set forth in Schedule 1 to this Grant Document as may be

 

 

adjusted from time to time as necessary to reflect any normalization of ROE confirmed by
the Management Development and Compensation Committee of the Board of Directors (“MDCC”)

	 	(e)	 	Determination of ROE. In each of January 2007, January 2008 and January
2009, the MDCC shall review and confirm ROE, as defined below, for the immediately
proceeding fiscal year.

	 
	 	 	 	“ROE” with respect to any fiscal year shall mean the Return on Equity as reported by
the Corporation in its earnings press release in January with respect to the relevant
fiscal year subject to adjustments, if any, deemed appropriate in order to normalize ROE
to emphasize operating results. The MDCC’s review and confirmation of the ROE and the
Conversion Ratio for a particular performance period shall be final and binding on
Participants.

	 
	 	(f)	 	Issuance of Restricted Shares. Upon confirmation by the MDCC, the Company
shall issue the appropriate number of Restricted Shares in accordance with the Conversion
Ratio on January 31 of the relevant year and the corresponding Participation Units shall
cease to be outstanding, immediately following conversion.

	 
	 	(g)	 	Conversion of Participation Units in Connection with a Change-in-Control.
In the event of a Change-in-Control of the Corporation as defined in LTICP, then
immediately prior to the consummation of the Change-in-Control, one third of the
Participation Units (relating to the year in which the transaction occurs) shall be
converted into Restricted Shares (or Restricted Units) at a ratio of 2.5:1 and the
remaining outstanding Participation Units (relating to subsequent years) shall be
converted at a ratio of 1:1. The vesting and payment of the converted Restricted Shares
shall occur in accordance with paragraph 5 hereof.

	 
	 	(h)	 	Termination of Your Rights to Participation Units under Certain
Circumstances. Except as provided in paragraph 3 hereof, if, prior to the Conversion
Date for the relevant Participation Units, (1) your employment terminates for any reason
other than death, Career Retirement (as defined in paragraph 3) or Disability (as defined
in paragraph 3) or as a result of a job elimination (as determined by Merrill Lynch), (2)
you violate any of the covenants outlined in paragraph 4 of this Grant Document (the
“Covenants”), or (3) following termination for Career Retirement, you fail to deliver the
Annual Certification described below, your right to outstanding Participation Units shall
terminate and they will be cancelled.

          RESTRICTED SHARES

	 	(a)	 	General. A Restricted Share is a share of ML&Co. Common Stock that is
beneficially owned by you but held by ML&Co. on your behalf until the end of the Vesting
Period described below. Your Restricted Shares have voting rights and pay quarterly
dividends, when regular dividends are paid on ML & Co. Common Stock.

 

 

	 	(b)	 	Vesting Period. Except as described in paragraph 3, of this Grant Document,
your rights to Restricted Shares shall terminate and the Restricted Shares will be
cancelled if you terminate employment or otherwise violate any of the terms and
conditions of your grant during the Vesting Period ending on January 31, 2010 (“Vesting
Date”). Restricted Shares may not be sold, transferred, assigned, pledged or otherwise
encumbered during the Vesting Period. Following the end of the Vesting Period,
Restricted Shares will be delivered to you, subject to the Company’s right to reduce the
number of shares to be delivered by an amount of shares necessary to satisfy Merrill
Lynch’s applicable tax withholding requirements.

	 
	 	(c)	 	Termination of Your Rights to Restricted Shares under Certain
Circumstances. Except as provided in paragraph 3 hereof, if (1) your employment
terminates for any reason other than death, Career Retirement (as defined in paragraph 3)
or Disability (as defined in paragraph 3) or as a result of a job elimination, (2) you
violate any of the covenants outlined in paragraph 4 of this Grant Document (the
“Covenants”), (3) following termination for Career Retirement, you fail to deliver the
Annual Certification described in sub-paragraph (b) under “Effect of Termination of
Employment on Restricted Shares” in paragraph 3, your right to unvested Restricted Shares
shall terminate, Restricted Shares will be cancelled and will not be delivered to you.

	 
	 	(d)	 	Delivery — Merrill Lynch Account Designation.

	 
	 	(i)	 	Once your Restricted Shares have vested in accordance with the terms of this Grant
Document, you will be entitled to have those shares delivered, as soon as practicable, to
a Merrill Lynch account.

	 
	 	(ii)	 	As a participant in the Plan, you must designate a Merrill Lynch account into which
shares of ML&Co. Common Stock will be deposited when they are released to you. This
account cannot be a Trust Account, Individual Retirement Account or other tax-deferred
account. You may use a joint account if you are the primary owner of the account.
Account designations can be made on the Payroll Self Service Web Site at
http://hr.worldnet.ml.com/edf2. (From the HR Intranet homepage, click on Payroll
Self Service.) If you do not designate an account, Merrill Lynch will mail certificates
representing shares released to you.

	3.	 	EFFECT OF TERMINATION OF EMPLOYMENT.

	 
	 	 	Prior to Conversion of Participation Units.

	 
	 	 	In general, if, prior to the conversion of your Participation Unit for your grant, your
employment terminates or you fail to comply with the covenants contained in paragraph 4 of this
Grant Document, your rights to your Participation Units will cease and they will be cancelled.
In the case of termination of employment, if your termination occurs in connection with the
limited circumstances outlined below a portion of your grant will convert to Restricted Shares
(as described below) and

 

 

	 	 	continue to vest notwithstanding termination, provided that you continue to satisfy the
conditions described below. If you fail to comply with these conditions, your rights to your
Restricted Shares will cease and they will be cancelled.

	 	(a)	 	Death. One-third of the Participation Units (relating to the year in which
Death occurs) will be converted into Restricted Shares at a 1:1 Conversion Ratio and the
resulting Restricted Shares will vest immediately and shares will be delivered to a
designated beneficiary or estate as soon as possible. Any unconverted Participation
Units will be cancelled.

	 
	 	(b)	 	Disability, Career Retirement; Job Elimination. If (1) employment is
terminated as a result of Disability, (2) upon termination, you qualify for Career
Retirement (as defined below) or (3) you are terminated due to a job elimination then a
portion of the Participation Units representing your annual contribution for the year in
which the termination occurs will be converted at a Conversion Ratio of 1:1, effective
upon termination provided that, (1) following termination that qualifies for Career
Retirement, you do not compete with the business of, or recruit employees from, Merrill
Lynch, (2) you do not violate the covenants contained in paragraph 4; (3) you sign and
return an Agreement and Release in the form prescribed by Merrill Lynch and comply
thereafter with the terms of the Agreement and Release and (4) following termination for
Career Retirement, you to deliver the Annual Certification described in sub-paragraph (b)
under “Effect of Termination of Employment on Restricted Shares”. All unconverted
Participation Units will be cancelled effective upon termination of employment.

	 
	 	(c)	 	Termination of Employment for Other Reasons. In the event employment is
terminated for any other reason, rights to Participation Units that have not converted
shall terminate and they will be cancelled effective upon termination of employment.

Effect of Termination of Employment on Restricted Shares

In general, if, prior to the end of the Vesting Period for your grant, your employment
terminates or you fail to comply with the covenants contained in paragraph 4 of this Grant
Document, your rights to your unvested Restricted Shares will cease and they will be cancelled.
In the case of termination of employment, if your termination occurs in connection with the
limited circumstances outlined below your grant will continue to vest notwithstanding
termination, provided that you continue to satisfy the conditions described below. If you fail
to comply with these conditions, your rights to your Restricted Shares will cease and they will
be cancelled:

	 	(a)	 	Death. If your death occurs prior to the Vesting Date for your Restricted
Shares, any unvested Restricted Shares will vest immediately and shares (net of any
withholding requirements) will be delivered to your designated beneficiary or estate as
soon as possible.

 

 

	 	(b)	 	Disability or Career Retirement. If your employment is terminated as a
result of Disability or if you qualify for Career Retirement (as defined below), your
Restricted Shares will continue to vest notwithstanding your termination provided that,
(1) you do not compete with, or recruit employees from, Merrill Lynch and provide Merrill
Lynch with a certification upon your termination and at least annually thereafter (the
“Annual Certification”) that you are not engaged in or employed by a business which is in
competition with Merrill Lynch and have not solicited or recruited employees from Merrill
Lynch and (2) you do not violate the covenants contained in paragraph 4. If you compete
with the business of or recruit employees from Merrill Lynch, fail to return the Annual
Certification to Merrill Lynch or violate the covenants contained in paragraph 4 during
the Vesting Period for your Restricted Shares, your rights to your unvested Restricted
Shares will terminate and the Restricted Shares will be cancelled.

	 
	 	(c)	 	Termination of Employment Due to
Job Elimination. If your employment is
terminated in connection with a job elimination, your Restricted Shares will continue to
vest notwithstanding your termination; provided that, (i) you sign and return an
Agreement and Release in the form prescribed by Merrill Lynch and (ii) you comply
thereafter with its terms and with the covenants contained in this Grant Document.

	 
	 	(d)	 	Termination of Employment for Other Reasons:  In the event your employment
is terminated for any other reason than those specified in subparagraphs (a), (b) or (c)
under the heading “Effect of Termination on Your Restricted Shares”, your rights to your
unvested Restricted Shares shall terminate and the Restricted Shares will be cancelled.

Definitions:

To be eligible for “Career Retirement” treatment, you must fulfill the following requirements:

•     No determination shall have been made that there was Cause (as defined below) to
disqualify you from Career Retirement treatment; and

•     You must have completed at least 5 years of service with Merrill Lynch; and

•     You (1) must be at least 45 years of age or (2) your age and service combined and
computed as full years and completed months must total at least 60; or

•     Your grant is approved by the Head of Reward and Recognition Planning as eligible for
Career Retirement and at the request of Merrill Lynch, you become an employee (upon
termination with Merrill Lynch) of a non-consolidated joint venture of Merrill Lynch, a
spin-off or a new joint venture company in which Merrill Lynch has made a substantial
investment.

 

 

•     You will not be eligible for Career Retirement if:  (1) following your
termination, you engage in any business that is in competition with the business of Merrill
Lynch, (2) prior to or following your termination you solicit or recruit any Merrill Lynch
employees, (3) you fail to complete and return the Annual Certification, that you are in
compliance with conditions 1 and 2 or (4) prior to or following your termination, you violate
any of the covenants contained in paragraph 4 hereof.

“Disability” shall mean a physical or mental condition that, in the opinion of the Head
of Rewards and Recognition Planning of Merrill Lynch (or his or her functional successor),
renders you incapable of engaging in any employment or occupation for which you are suited by
reason of education or training.

“Cause” shall mean a determination by a committee appointed by the Head of Rewards and
Recognition Planning of Merrill Lynch (or his or her functional successor), that in its sole,
absolute, and un-reviewable discretion: (i) at the time of the termination of your
employment, you had committed: a) any violation of Merrill Lynch’s rules, regulations,
policies, practices and/or procedures; b) any violation of the laws, rules or regulations of
any governmental entity or regulatory or self-regulatory organization, applicable to Merrill
Lynch; or c) criminal, illegal, dishonest, immoral, or unethical conduct reasonably related to
your employment; and (ii) as a result of such conduct, it is appropriate to disqualify you
from Career Retirement treatment with respect to the Participation Units or Restricted Shares
covered by this Grant Document.

	 	4.	 	CONDITIONS.

	 	(a)	 	Notice Period. You agree that for the remainder of your employment, you
shall provide ML&Co. with at least six months advance written notice (the “Notice
Period”) prior to the termination of your employment. During this Notice Period, you
shall remain employed by Merrill Lynch (and receive base salary and certain benefits,
but will not receive any payments or distributions or accrue any rights to a bonus or
any payments or distributions under the Variable Incentive Compensation Program,
pro-rata or otherwise) and shall not commence employment with any other employer. You
further agree that during the Notice Period, you shall not directly or indirectly
induce or solicit any client of Merrill Lynch to terminate or modify its relationship
with Merrill Lynch.

	 
	 	(b)	 	Employment by a Competitor. You agree that, during the period beginning on
the date of the termination of your employment and ending on the Vesting Date for
Restricted Shares issued upon conversion of the Participation Units, you will not,
without prior written consent from ML&Co., engage in any employment, accept or maintain
any directorship or other position, own an interest in, or, as principal, agent,
employee, consultant or otherwise, provide any services to anyone, whether or not for
compensation, in any business that is engaged in competition with the business of the
ML&Co. or its affiliates (a “Competitive Business”).

 

 

	 	(c)	 	Non-Solicitation.  You agree that you will not directly or indirectly
solicit for employment any person who is or was an employee of ML&Co. or any of its
affiliates at any time during the six-month period immediately preceding the date of such
solicitation.

	 
	 	(d)	 	No Hire.  You agree that during a period of six months following your
termination, you will not hire or otherwise engage, directly or indirectly (including,
without limitation, through an entity with which the you are associated), as an employee
or independent contractor, any person who is or was an employee of the ML&Co. or any of
its affiliates and who, as of the date of your termination of employment, had the title
First Vice President or Managing Director or higher and reported directly to the
Executive or to the Chief Executive Officer or President of the Company (“Executive, CEO
or President Direct Reports”) or any person with the title First Vice President or
Managing Director or higher who, at the time of your termination, reported directly to
the Executive, CEO or President Direct Reports, provided, however, that this paragraph
4(iv) shall not apply to you, if at the time of your termination you are not a direct
report to the CEO, or, the President, if any, of ML&Co. and provided further that the
hiring of any person whose employment was involuntarily terminated by ML&Co. or any of
its affiliates shall not be a violation of this covenant.

	 
	 	(e)	 	Non-Disparagement.  You agree that you will not disparage, portray in a
negative light, or make any statement which would be harmful to, or lead to unfavorable
publicity for, ML&Co. or any of its affiliates, or any of its or their current or former
directors, officers or employees, including without limitation, in any and all
interviews, oral statements, written materials, electronically displayed materials and
materials or information displayed on internet- or intranet-related sites; provided
however, that this Grant Document will not apply to the extent you are making truthful
statements required by law or by order of a court or other legal body having jurisdiction
or when responding to any inquiry from any governmental agency or regulatory or
self-regulatory organization.

	 
	 	(f)	 	Confidential Information. You agree that following any termination of
employment, you will not without prior written consent or as otherwise required by law,
disclose or publish (directly or indirectly) any Confidential Information (as defined
below) to any person or copy, transmit or remove or attempt to use, copy, transmit or
remove any Confidential Information for any purpose. “Confidential Information” means any
information concerning ML&Co. or any of its affiliates’ business or affairs which is not
generally known to the public and includes, but is not limited to, any file, document,
book, account, list, process, patent, specification, drawing, design, computer program or
file, computer disk, method of operation, recommendation, report, plan, survey, data,
manual, strategy, financial data, client information or data, or contract which comes to
your knowledge in the course of your employment or which is generated by you in the
course of performing the obligations related to your employment whether alone or with
others.

 

 

	 	(g)	 	Confidentiality.  You also agree that in the event your employment is
terminated you will not disclose the circumstances of your termination to any other
party, except that you may make such disclosure: on a confidential basis to your tax,
financial or legal advisors, your immediate family members, or any prospective employer
or business partner, provided that, in each case, such third party agrees to keep such
circumstances confidential.

	 
	 	(h)	 	Cooperation.  You agree to (i) provide truthful and reasonable cooperation,
including but not limited to your appearance at interviews and depositions, in all legal
matters, including but not limited to regulatory and litigation proceedings relating to
your employment or area of responsibility at Merrill Lynch or its affiliates, whether or
not such matters have already been commenced and through the conclusion of such matters
or proceedings, and (ii) to provide Merrill Lynch’s counsel all documents in yours
possession or control relating to such regulatory or litigation matters.

	 
	 	(i)	 	Injunctive Relief.  Without limiting any remedies available, you
acknowledge and agree that a breach of the covenants contained in
subparagraphs (a) –
(d), (f) and (g) of this paragraph 4 will result in material and irreparable injury to
Merrill Lynch and its affiliates for which there is no adequate remedy at law and that it
will not be possible to measure damages for such injuries precisely. Therefore, you agree
that, in the event of such a breach or threat thereof, Merrill Lynch shall be entitled to
seek a temporary restraining order and a preliminary and permanent injunction, without
bond or other security, restraining him or her from engaging in activities prohibited by
subparagraphs (a) – (d), (f) and (g) of this paragraph 4 or such other relief as may be
required specifically to enforce any of the covenants in
subparagraphs (a) – (d), (f)
and (g) of this paragraph 4, provided however, that Merrill Lynch shall be entitled to
seek injunctive relief for violations of subparagraph (c) of this paragraph 4 only during
the period beginning on the date of your termination of employment and ending on the
first anniversary of that date.

	5.	 	EFFECT OF A CHANGE IN CONTROL OF ML&CO.

If a Change of Control of ML&Co. (as defined in the Plan) occurs following the conversion of
Participation Units and your employment subsequently terminates without Cause (as defined in
the Plan), or for Good Reason (as defined in the Plan), you will be paid the Fair Market Value
of all of your Restricted Shares in cash.

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