Document:

Exhibit 10.1

EXHIBIT 10.1  Amendment No. 2 to the CIGNA Long-Term Incentive Plan (Amended and Restated Effective as of April 28, 2010) 

Under Article 14 of the CIGNA Long-Term Incentive Plan (Amended and Restated Effective as of April 28, 2010) (the “LTIP”), the LTIP is amended, effective on April 27, 2011, as follows: 

1.	Section 11.1(b) of Article 11 of the Plan is amended to read: 

11.1	Maximum Number Authorized. 

*** 

(b)

	Effective as of April 27, 2011, the number of shares of Common Stock authorized to be issued pursuant to Options, SARs, rights, grants or other awards made under this Plan from and after that date shall be 12.0 million shares plus the number of: 

(1)

	shares reserved for issuance upon exercise of Options granted under Prior Plans, to the extent the Options are outstanding on March 4, 2011, and subsequently expire or are canceled or surrendered; 

(2)

	shares reserved for issuance under Article 9 upon vesting of restricted stock units granted under Qualifying Plans and upon payment of Strategic Performance Shares under Section 10.1, to the extent the restricted stock units or Strategic Performance Shares are outstanding on March 4, 2011, and subsequently expire or are canceled or surrendered; and 

(3)

	shares of Restricted Stock granted under Prior Plans, to the extent the applicable Restricted Period has not expired as of March 4, 2011, and the Restricted Stock is subsequently forfeited under Section 7.5 or is otherwise surrendered to the Company before the Restricted Period expires. 

However, shares granted, or reserved prior to April 27, 2005 for issuance, under the CIGNA Corporation Stock Plan shall not be included among the shares authorized under paragraphs (1), (2) and (3) above to be issued from and after the Restatement Date. 

*** 

2.	Section 11.3(a) of Article 11 of the Plan is amended to read: 

11.3	Share Counting. 

(a)

	Effective as of April 27, 2011, and subject to the other provisions of Section 11.3, the following rules shall apply in determining whether shares of Common Stock remain available for issuance under Section 11.1(a) of the Plan. 

(1)

	Each share reserved for issuance upon exercise of any Option or SAR granted under the Plan shall reduce the number of remaining authorized shares by one, provided that an SAR that may be settled only in cash shall not reduce the number of authorized shares. 

(2)

	Each share of Common Stock awarded under Article 7 or reserved for awards under Articles 8, 9 or 10 of the Plan, up to the Applicable Limit (described below in Section 11.3(a) (4)), shall reduce the number of authorized shares by one. 

(3)

	Each share of Common Stock awarded under Article 7 or reserved for awards under Articles 8, 9 or 10 of the Plan in excess of the Applicable Limit shall reduce the number of authorized shares by two and one-tenth (2.1). 

(4)

	The “Applicable Limit” is 8.8 million shares plus any shares described in Section 11.1(b)(2) and (3). 

3.	Section 11.3(b)(3) of Article 11 of the Plan is amended to read: 

(b)

	The following shall not reduce the number of authorized shares of Common Stock available for issuance under this Plan: 

*** 

(3)

	Common Stock reserved, upon the grant of restricted stock units under any Qualifying Plans and upon grant of Strategic Performance Shares under Section 10.1, for issuance under Article 9 when such restricted stock units vest or such Strategic Performance Shares are paid, to the extent the restricted stock units or Strategic Performance Shares are forfeited, canceled or surrendered; and 

*** 

CIGNA Corporation causes this Amendment No. 2 to be executed on April 27, 2011 by its duly authorized officer. 

	
Attest:

	
CIGNA CORPORATION

	
/s/ Lindsay Blackwood

		
/s/ John M. Murabito

	
	

Lindsay Blackwood

		

John M. Murabito

	
	

Assistant Corporate Secretary

		

Executive Vice PresidentExhibit 10.2

EXHIBIT 10.2    

David M. Cordani 

President & Chief Executive Officer 

900 Cottage Grove Rd 

Hartford, CT  06152 

Telephone:  860.226.7482 

May 19, 2010 

Bertram L. Scott 

[Address] 

Dear Bert: 

On behalf of CIGNA, I am delighted to confirm our offer of employment for the position of President US Commercial, reporting to me. I am confident that you will have significant impact on our overall business direction within CIGNA. 

The rewards package we are offering to you includes: 

•

Base Salary – paid bi-weekly at a pre-tax annualized rate of $600,000. 

•

Annual Incentive – In 2010, you will be eligible to participate in the Management Incentive Plan (MIP) with a bonus target of $650,000. Your 2010 bonus target will not be prorated based on your start date in 2010 and your award is guaranteed to be no less than target for the 2010 performance period. Awards range from 0 to 200% of target based on organization and individual performance. You must be an employee on the date of payment to receive your award, including the 2010 award. Bonuses are typically paid in the first quarter of the year following the performance period and are not considered earned until the date paid. 

•

Long-Term Incentive – currently consist of two components. During the annual grant process, subject to Board approval, you will be considered for: 

–

Stock Options – grants are typically awarded in the first quarter of each year and may vary from 0 to 200% of target based on individual performance. Options typically vest over a 3 year period and expire no later than 10 years after grant. The current options target for your role is $875,000. 

–

Strategic Performance Shares (SPS) – grants are typically awarded in the first quarter of each year and may vary from 0 to 200% of target based on individual performance. SPS awards are typically paid or vested three years after the beginning of the performance period. Awards are not considered earned until the date paid. The current SPS target for your role is $875,000. 

•

Sign On Long-Term Incentive Award – the following long-term incentive grants, which have been approved by the People Resources Committee of the Board of Directors, have an estimated present value of $3,074,900 and will be awarded to you as follows: 

–

2,269 Strategic Performance Units* paid in 2011 with a guaranteed value of $200 per unit. Payment will be made at the time and in the form specified in the Long-Term Incentive Plan. You must be an employee on the date of payment to receive the guaranteed Strategic Performance Unit payout. 

–

4,926 Strategic Performance Units* paid in 2012 with a guaranteed value of no less than $100 per unit. Payment will be made at the time and in the form specified in the Long-Term Incentive Plan. You must be an employee on the date of payment to receive the guaranteed Strategic Performance Unit payout. 

–

a Strategic Performance Share (SPS) award with a grant date** value $753,500; shares awarded in 2013 per the plan’s formula. 

–

a Restricted Stock Grant with a grant date** value of $625,000. The Restricted Stock Grant will be subject to the terms and conditions contained in the CIGNA Long-Term Incentive Plan and the grant materials; the Restricted Stock granted will vest on the third anniversary of the grant. 

–

an option to purchase CIGNA Corporation common stock. The stock option will have a grant date** value of $750,000. The grant will be subject to the terms and conditions contained in the CIGNA Long-Term Incentive Plan and the grant materials. The Options will become exercisable (vest) over three years at the rate of one-third per year. 

*

	The Board Committee typically approves payment of SPU awards half in cash and half in unrestricted shares for executives who do not meet CIGNA’s stock ownership guidelines. The stock ownership guideline for this position is 300% of your base salary. 

**

	Pursuant to Company and Committee policy, your strategic performance share, stock option and restricted stock grant awards would be issued on the earlier of: (1) your employment start date, if such date is within an open window period; or (2) the first open window day following your employment start date. The current open period ends June 15, 2010. The next open period begins on August 9, 2010 and closes on September 15, 2010. 

•

Sign On Bonus - You will receive payable within thirty (30) days of your employment start date, a one-time sign-on bonus of $470,000, less applicable withholdings. In consideration of this payment, you agree that should your employment be terminated on account of willful misconduct or should you leave CIGNA for any reason other than Job Elimination or change of control of the Company within one year of receipt of payment, you will reimburse CIGNA in an amount equal to one-hundred (100%) percent of the bonus payment. 

•

Relocation - In lieu of relocation benefits you will receive payable within thirty (30) days of your employment start date, lump sum payment of $200,000, less applicable withholdings. In consideration of this payment, you agree that should your employment be terminated on account of willful misconduct or should you leave CIGNA for any reason other than Job Elimination or change of control of the Company within one year of receipt of payment, you will reimburse CIGNA in an amount equal to one-hundred (100%) percent of the bonus payment. If you decide to relocate prior to June 30, 2012, a full relocation package will be provided per the relocation policy in effect at that time. 

You will also be eligible for benefits under the executive financial counseling program, executive travel, deferred compensation and CIGNA’s comprehensive employee benefits program, including the 401k plans effective following your employment start date. If you wish to participate in the deferred compensation program during 2010, you will need to make that election within 30 days of your start date. Like all employees at CIGNA, your employment is at-will. This means that you may terminate your employment at any time and for any reason and that the Company may do the same. 

The compensation program elements described here – annual incentive and strategic performance shares - are those of our current program and may be changed or modified by the Board of Directors. As an executive of the company, your compensation will be subject to any future program changes. 

This offer of employment is subject to full and satisfactory references and background checks and upon your passing a standard drug test. It is also subject to your being able to perform the services contemplated by this agreement, unrestricted by the enforcement of any non-competition agreement to which you are a party to with your current or any previous employer. 

Bert, I am excited to have you join the CIGNA organization and be a key member of our team. Please feel free to call me if you would like to discuss any of these items. 

Sincerely, 

David M. Cordani 

Please indicate your acceptance of our offer by signing below and returning a copy to Charlene Parsons via fax at 215.761.5089. 

	
Acceptance:

	
/s/ Bertram L. Scott

	
	
Date:

	
May 18, 2010

	
Start Date:

	
June 28, 2010

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