Document:

exv10w6w4

 

Exhibit 10.6.4

FOURTH AMENDMENT TO THE

CNA SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

          The CNA SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN, as restated by CNA Financial Corporation
effective January 1, 2003, and as previously amended by the First, Second and Third Amendments
thereto, is hereby further amended as follows:

          1.       Section 2.4 is amended to read as follows:

                    2.4      Time and Form of Payment.

                    (a)      Except as otherwise provided in a SERP Agreement, the Post-2004 portion of a
Participant’s benefit under this Plan shall be paid in a single lump sum equal to the actuarial
equivalent of such portion as soon as practicable after the Participant terminates employment,
subject to Section 2.4(c) below.

                    (b)      The Pre-2005 portion of a Participant’s benefit shall be paid in the same manner
as his Retirement Plan benefit, provided that the Benefits Committee may elect to pay the Pre-2005
portion of the benefit of a Choice 1 Participant (as hereinafter defined) in a single lump sum
equal to the actuarial equivalent of the Pre-2005 portion, and may also decide to pay the Pre-2005
portion of a Choice 2 Participant in any of the forms of annuity available under the Retirement
Plan that are actuarially equivalent. As of December 31, 2004, the Benefits Committee has elected
to pay all Pre-2005 portions that do not exceed $15,000.00 per month in the form of a lump sum, but
the Benefits Committee may pay Pre-2005 portions that would otherwise be payable in a lump sum in
the form of a monthly annuity, and may establish a different standard for payment of Pre-2005
portions in a lump sum, which may be either more or less than $15,000.00 per month. All
determinations by the Benefits Committee as to the form of payment shall be made by the Benefits
Committee in its sole and absolute discretion, which may be exercised in an arbitrary and
capricious manner, and in no event shall any Participant be considered to have a vested interest in
the payment of the Pre-2005 Portion of his benefit in any particular form. Actuarial equivalence
shall be determined in accordance with the applicable actuarial assumptions provided under the
Retirement Plan. Payment of a Participant’s benefit in the form of a lump sum shall fully
discharge all amounts owed to the Participant and to his heirs or beneficiaries under the Plan.

	 	(c)	 	Anything else in this Plan, or a SERP Agreement, to the contrary notwithstanding:

	 	(i)	 	Except as otherwise provided below, no part of the Post-2004
Portion of a Participant’s benefit shall be payable to any Participant until
he has incurred a separation from service as defined in Code §409A.

	 	(ii)	 	No Post-2004 portion of a benefit shall be payable to a
Participant who is a key employee, as defined in Code §409A, until six months
after he has incurred a separation from service, unless the Participant is
disabled. For this purpose, a Participant shall be considered disabled only
if he is receiving benefits under a CNA disability plan for a period of at
least three months, by reason of a medically determinable physical or mental
impairment which can be expected to either result in death or last for a
continuous period of not less than 12 months. Any payments that would
otherwise be payable to a key employee during the six months following his
separation from service shall be accumulated and paid in a lump sum, without
interest, at the end of the six month period.

	 	(iii)	 	In no event shall the distribution of any Post-2004 benefit
be accelerated to a time earlier than which it would otherwise have been paid,
whether by amendment of the Plan, exercise of the Operations Committee’s
discretion, or otherwise, except in accordance with an election made, if
permitted by the Administrator, not later than

 

 

	 	 	 	December 31, 2005, as provided by IRS Notice 2005-1, or as otherwise
permitted by regulations issued pursuant to Code §409A.

	 	(iv)	 	In the event that the Administrator, in its sole discretion,
determines that any time or form of distribution provided for in the Plan, or
the existence of a right to elect a different time or form of distribution,
would cause the Plan to fail to meet the requirements of Code §409A, or
otherwise cause Participants to be subject to any adverse federal income tax
consequences, the Administrator shall adopt procedures modifying or removing
the form of distribution or election right, which shall be deemed an amendment
to the Plan.

	 	(v)	 	Any SERP Agreement that provides for a different form or time
of payment shall specify the time and manner of payment, without Employer or
Participant discretion, at the time the SERP Agreement is entered into, and
shall otherwise comply with the requirements of this paragraph (c); provided
that, in addition to a severance from service, a SERP Agreement may provide
for benefits to be paid at a specified time or pursuant to a fixed schedule
set forth in the SERP Agreement, upon the occurrence of a change in ownership
or control of the Participant’s Employer, or in a substantial portion of its
assets, as defined in Code §409A, or upon the occurrence of an unforeseeable
emergency, as defined in Code §409A; and provided further that a SERP
Agreement may permit a Participant to elect to further defer the payment of
his benefit if the election does not take effect for at least twelve months
and the payment is deferred by at least five years.

                    (d)      For purposes of this Plan, the “Pre-2005 portion” of a Participant’s benefit shall be
equal to the vested benefit to which the Participant would be entitled if his employment were
terminated on December 31, 2004, adjusted in accordance with IRS Notice 2005-1, or other
regulations issued pursuant to §409A, to reflect the time and form of payment, and the “Post-2004
portion” of a Participant’s benefit shall be the Participant’s entire benefit reduced by the
Pre-2005 portion, as further provided below:

	 	(i)	 	The Pre-2005 portion of a Choice 1 Participant’s benefit
shall be the deferred vested pension to which the Participant would be
entitled if he terminated on December 31, 2004, and shall not include the
value of any early retirement subsidy unless the Participant was eligible for
early retirement on December 31, 2004.

	 	(ii)	 	The Pre-2005 portion of a Choice 2 Participant’s benefit
shall be his Accrued Pension Annuity (as defined in the Retirement Plan).

	 	(iii)	 	The Pre-2005 portion of a benefit provided in a SERP
Agreement shall be vested benefit the Participant would be entitled to if he
terminated on December 31, 2004, as determined under the terms of the SERP
Agreement.

     2.      This amendment shall be effective for all benefits that first become payable on or after
January 1, 2008. Except as otherwise provided herein, the Plan shall remain in full force and
effect.

     IN WITNESS WHEREOF, this Amendment has been executed on behalf of CNA Financial Corporation
pursuant to the authority reserved under Section 5.1 of the Plan, this 31st day of
December, 2007.

	 	 	 	 	 
	 	CNA FINANCIAL CORPORATION

 	 
	 	By:  	/s/      Thomas Pontarelli
 	 
	 	 	       Thomas Pontarelli, Executive 	 
	 	 	       Vice President & Chief Administration

       Officer, Continental Casualty Company 	 
	 

2exv10w9

 

EXHIBIT 10.9

2008 INCENTIVE COMPENSATION AWARDS TO EXECUTIVE OFFICERS

On February 6, 2008, the Compensation Committee of Registrant’s Board of Directors approved grants
of stock appreciation rights to the executive officers of Registrant, namely Stephen W. Lilienthal,
Michael Fusco, Jonathan D. Kantor, James R. Lewis and D. Craig Mense (collectively, the “Executive
Officers”). The forms of the award letter and the award terms relating to such grants are
respectively reproduced below as Appendix A and Appendix B.

Also on February 6, 2008, the Compensation Committee of Registrant’s Board of Directors approved
the items described below with respect to the incentive compensation of the Executive Officers:

	 	(a)	 	The Annual Incentive Bonus (“AIB”) amounts for 2007 that are payable in 2008. The AIB
is determined through a performance goal of Registrant’s net operating income or payout
formula that is a percentage of Registrant’s net operating income achieved in a particular
year, in this instance 2007.

	 
	 	(b)	 	The 2007 performance year results for the Long-Term Incentive Cash Plan (“LTI Cash
Plan”) and the cash awards for the 2005-2007 LTI Cash Plan cycle pursuant to such results.
The 2007 performance year results that were approved apply to the 2005-2007, 2006-2008 and
2007-2009 cycles under the LTI Cash Plan. The form of the letter relating to such awards
has not yet been finalized.

	 
	 	(c)	 	The LTI Cash Plan awards for the 2008-2010 LTI Cash Plan cycle. The form of the award
letter and the form of the award terms relating to such awards have not yet been
finalized.

	 
	 	(d)	 	The AIB opportunities for the 2008 performance year, determined through a performance
goal of Registrant’s net operating income or payout formula that is a percentage of
Registrant’s net operating income achieved in 2008, payable in 2009.

	 
	 	(e)	 	The net operating income goals for 2008 under the LTI Cash Plan, applicable to the
2006-2008, 2007-2009 and 2008-2010 LTI Cash Plan cycles. The LTI Cash Plan potential bonus
amounts are based upon Registrant’s net operating income over three year cycles, with
goals set for each calendar year within the three year cycle. Performance is determined at
the end of each calendar year and payouts are made at the end of the three year cycle.

	 
	 	(f)	 	The definition of net operating income for purposes of determining performance and
bonus payouts applicable to AIB opportunities for 2008 and the 2008 LTI Cash Plan targets
for the 2006-2008, 2007-2009 and 2008-2010 LTI Cash Plan cycles.

	 
	 	(g)	 	The modification to the LTI Cash Plan to limit participation in the plan for a given
year to those eligible officers whose hire date occurred on or before September 30 of such
year. This modification is effective for the performance years from and after 2008.

 

 

Appendix A — Form of Award Letter

February 8, 2008

Private and Confidential

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	To:

	 	{Name}
	 	 	Number of Stock
SARs Granted
	 	 	{No. of Shares}	 
	 	 	 	 	 	 	 	 	 	 
	Re:

	 	Grant of Stock Appreciation Rights paid in Stock
	 	 	Exercise Price
	 	 	{$Price}	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	Grant Date
	 	 	February 6, 2008	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	Expiration Date
	 	 	February 6, 2018	 
	 	 	 	 	 	 	 	 	 	 

The Compensation Committee (the “Committee”) of the Board of Directors of CNA Financial Corporation
(“Company”), which administers the CNA Financial Corporation 2000 Incentive Compensation Plan (the
“Plan”), has determined that you are eligible for a grant of {No. of Shares} Stock Appreciation
Rights (the “Stock SARs”) paid in CNA Financial Corporation
common stock at $ [Price] per share (the
“Exercise Price”). Each Stock SAR entitles the eligible person to receive, at the time of exercise,
an amount equal to the difference between the fair market value of a single share of the Company’s
common stock on the date of exercise and the Exercise Price, which may not be less than the fair
market value of a single share of the Company’s common stock on the date the right was granted,
paid in shares of the Company’s common stock. This stock appreciation rights award was granted by
the Committee under the Plan on February 6, 2008.

As described more fully in the attached Award Terms, the Stock SARs will become exercisable in four
equal annual installments on February 6th of 2009, 2010, 2011 and 2012 so long as you
are employed by Continental Casualty Company (“CCC”) or an affiliate of CCC on each such date. For
example, one quarter of the Stock SARs granted will be exercisable on February 6, 2009 if you are
an employee on that date. In most instances, after the Stock SARs become exercisable generally you
may exercise them any time prior to the expiration date shown above provided that you are employed
by Continental Casualty Company or an affiliate of CCC at the time of exercise. After exercising
the Stock SARs, you can decide whether to hold or sell the shares of Company common stock you have
obtained, subject to CNA’s Securities Compliance Policy and applicable insider trading
restrictions.

Under the present tax laws, as a result of exercising the Stock SARs you will potentially recognize
taxable income at the time of exercise. When and if you sell the shares of Company common stock
acquired through the Stock SARs exercise, any additional gain may be subject to further tax at
capital gain rates. The Company recommends that you consult with your own tax advisor to determine
the applicability of the tax rules to the awards granted to you in your individual circumstances.

This Award Letter provides a summary of your Stock SARs, and the Award is subject to the Award
Terms enclosed with this Award Letter. (In the attached Award Terms, you are referred to as the
“Participant.”) This Award Letter shall be subject to the Award Terms, and the Award Terms shall be
subject to the provisions of the Plan. If discrepancies arise between this Award Letter and the
Award Terms, the Award Terms will govern, and if discrepancies arise between the Award Terms and
the Plan document, the terms of the Plan document will govern.

Sincerely,

#####

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Appendix B — Form of Award Terms

Stock Appreciation Rights Paid in Company Common Stock Terms for Grant Under the

CNA Financial Corporation 2000 Incentive Compensation Plan

          On February 6, 2008 (the “Grant Date”), CNA Financial Corporation (the “Company”) granted to
the Participant certain Stock Appreciation Rights (the “Stock SARs”) paid in Company common stock.
Each Stock SAR entitles the eligible person to receive, at the time of exercise, an amount equal to
the difference between the fair market value of a single share of the Company’s common stock on the
date of exercise and the Exercise Price, which may not be less than the fair market value of a
single share of the Company’s common stock on the date the right was granted, paid in shares of CNA
Financial Corporation common stock. All Stock SAR grants shall be subject to the following Terms
(sometimes referred to as the “Award Terms”):

          1.    Stock SARs Award. For purposes of the Award Terms, the “Participant” shall be the
eligible person identified in the award letter included with these Award Terms (the “Award Letter”)
and reflecting the date of grant of the Stock SARs that is the same as the Grant Date specified in
these Award Terms. For purposes of the Award Terms, the “Exercise Price” is the price per share for
such Stock SARs as specified in the Award Letter. The Stock SARs have been granted under the CNA
Financial Corporation 2000 Incentive Compensation Plan (the “Plan”), which is incorporated into and
forms a part of the Award Terms. Certain words, terms and phrases used in the Award Terms are
defined in the Plan (rather than in the Award Terms or Award Letter), and except where the context
clearly implies or indicates the contrary, and except as otherwise provided in the Award Terms, a
word, term, or phrase used or defined in the Plan is similarly used or defined in the Award Terms
and the Award Letter. Other words, terms or phrases used in the Award Terms or Award Letter are
defined in paragraph 11 of these Award Terms or elsewhere in these Award Terms or Award Letter.

          2.   Date of Exercise. Subject to the limitations of the Plan and these Award Terms,
each Stock SARs installment shall be exercisable on and after the Date of Exercisability for such
Installment as described in the following schedule (but only if the Date of Termination has not
occurred before the Date of Exercisability):

	 	 	 	 	 	 
	 	INSTALLMENT

	 	 	DATE OF EXERCISABILITY APPLICABLE TO

INSTALLMENT	 
	 	First quarter of Stock SARs

	 	 	First anniversary of February 6, 2008	 
	 	Second quarter of Stock SARs

	 	 	Second anniversary of February 6, 2008	 
	 	Third quarter of Stock SARs

	 	 	Third anniversary of February 6, 2008	 
	 	Fourth quarter of Stock SARs

	 	 	Fourth anniversary of February 6, 2008	 
	 

The Stock SARs may be exercised as provided for herein only as to that portion of the Stock SARs
that were exercisable (or became exercisable) immediately prior to the Date of Termination, if any.

          4. Expiration. The Stock SARs shall not be exercisable after the Company’s close of
business on the last business day that occurs prior to the Expiration Date. The “Expiration Date”
shall be earliest to occur of:

	(a)	 	Ten Years. The ten-year anniversary of the Grant Date.

	 
	(b)	 	Death or Disability. The one-year anniversary of such Date of Termination, if the
Participant’s termination of employment by Continental Casualty Company or an Affiliate occurs
by reason of the Participant’s death or the Participant’s Permanent Disability.

	 
	(c)	 	Retirement. The three-year anniversary of such Date of Termination, if the
Participant’s termination of employment by Continental Casualty Company or an Affiliate occurs
by reason of the Participant’s Retirement (and not by reason of death, Permanent Disability,
or for Cause).

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	(d)	 	Cause. The Date of Termination, if the Participant’s termination occurs by reason of
Cause.

	 
	(e)	 	Voluntary Resignation. The Date of Termination, if the Participant’s termination of
employment by Continental Casualty Company or an Affiliate occurs by reason of the
Participant’s voluntary resignation (and the termination is for reasons other than as
described in paragraphs (b), (c), or (d) next above, or paragraph (f) next below); provided,
however, that the Compensation Committee of the Company’s Board of Directors (the
“Committee’), in its sole discretion, may provide for extension of the date specified in this
paragraph (e), except that such extended date may not be later than the earlier to occur of
the 90 day anniversary of the Date of Termination or the date specified in paragraph (a) next
above.

	 
	(f)	 	Termination without Cause. The Date of Termination, if the Participant’s termination
of employment by Continental Casualty Company or an Affiliate occurs by reason of termination
of employment by the Participant’s employer for reasons other than Cause (and the termination
is for reasons other than as described in paragraphs (b), (c), or (d), next above); provided,
however, that the Committee, in its sole discretion, may provide for extension of the date
specified in this paragraph (f), except that such extended date may not be later than the
earlier to occur of the one-year anniversary of the Date of Termination or the date specified
in paragraph (a) next above; and further provided that, notwithstanding the provisions of
paragraph 3, the Committee may, in its sole discretion, permit additional exercisability of
the Stock SARs to be earned, if any, during such extension period.

          5.    Method of Exercise. The Stock SARs may be exercised in whole or in part by
sending a written notice to the Secretary of the Company at its corporate headquarters before the
Company’s close of business on the last business day that occurs prior to the Expiration Date, or,
if offered by the Company at the Company’s discretion, by electing to exercise the Stock SARs
through a Company-arranged broker-dealer. Each exercise of the Stock SARs shall be subject to the
Award Letter, the Award Terms and the Plan, and also to the following provisions:

	(a)	 	Any notice of exercise shall specify the number of Stock SARs which the Participant elects to
exercise and the date(s) on which they were awarded and vested.

	 
	(b)	 	Any gains realized upon exercise of Stock SARs will be paid in shares of CNA Financial
Corporation common stock. Except as otherwise provided by the Committee, before the Stock
SARs are exercised the Participant will be required to remit to the Company a sufficient
portion of the sale proceeds to pay in either cash or shares acquired through the exercise any
tax withholding requirements resulting from such exercise.

	 
	(c)	 	No Stock SARs Rights shall be exercisable if and to the extent the Company determines in its
sole discretion that such exercise would be in violation of applicable state or federal
securities laws or the rules or regulations of any securities exchange on which the shares of
stock are traded. If the Company makes such a determination, it shall use reasonable efforts
to obtain compliance with such laws, rules or regulations. In making any determination
hereunder, the Company may rely on the opinion of counsel for the Company.

          6.   Administration. The authority to manage and control the operation and
administration of the Award Terms shall be vested in the Committee, and the Committee shall have
all such powers with respect to the Award Terms as it has with respect to the Plan. Any
interpretation of the Award Terms by the Committee and any decision made by it with respect to the
Award Terms is final and binding on the Company and the Participant. These Terms may be
subsequently modified at the discretion of the Company based on subsequent regulatory, tax, or
legal developments, as interpreted by the Company.

          7.   Fractional Shares. Any gains realized upon exercise of Stock SARs will be paid in
shares of CNA Financial common stock, in whole or fractional shares, as determined by the Company
to be appropriate and as approved by the Committee.

4

 

          8.    No Rights As Shareholder. The Participant shall not have any rights of a
shareholder with respect to the Stock SARs issued ,unless and until a certificate for such shares
has been duly issued by the Company following exercise of the Stock SARs as provided herein.

          9.    Governing Documents. The Award Letter shall be subject to the Award Terms, and
the Award Terms shall be subject to the provisions of the Plan, a copy of which may be obtained by
the Participant from the office of the Secretary of the Company. If discrepancies arise between
these Award Terms and the Plan document, the terms of the Plan document will govern. The Award
Terms are subject to all interpretations, amendments, rules, and regulations promulgated by the
Committee from time to time pursuant to the Plan.

          10.   Amendment. The Award Terms may be amended by written agreement of the
Participant and the Company, without the consent of any other person, except that any such
amendment shall be subject to the approval of the Committee.

          11.   Definitions. For purposes of the Award Terms, the following definitions shall
apply:

	(a)	 	Affiliate. The term “Affiliate” means any business or entity in which at any
relevant time the Company holds directly or indirectly a greater than a 10% equity (voting or
non-voting) interest.

	(b)	 	Cause. The Participant will have engaged in conduct that constitutes “Cause” if the
Participant i) engages in any conduct which the Chief Executive Officer of the Company’s insurance
subsidiaries reasonably determines to be fraudulent, constitute willful malfeasance or
gross negligence, or be inconsistent with the dignity and character of an executive of the
Company or ii) violates in a material manner the then current rules of professional conduct
or human resource policies of the Company. If the Participant has entered into an
employment contract with the Company or any Subsidiary and “Cause” is defined in such
contract, then “Cause” for purposes of these Award Terms shall be as defined in such
contract in lieu of the definition in the immediately prior sentence.

	(c)	 	Date of Exercisability. The Participant’s “Date of Exercisability” is the date on
which the specified amount of Stock SARs are first able to be exercised as provided for in
paragraph 3 of these Award Terms.

	 
	(d)	 	Date of Termination. The Participant’s “Date of Termination” shall be the first day
occurring on or after the Date of Grant on which the Participant is not employed by
Continental Casualty Company or an Affiliate, regardless of the reason for the termination of
employment; provided that a termination of employment shall not be deemed to occur by reason
of a transfer of the Participant’s employment between Continental Casualty Company and an
Affiliate or between two Affiliates; and further provided that the Participant’s employment
shall not be considered terminated while the Participant is on a leave of absence from
Continental Casualty Company or an Affiliate approved by the Participant’s employer. If, as a
result of a sale or other transaction, the Participant’s employer ceases to be an Affiliate
(and the Participant’s employer is or becomes an entity that is not an Affiliate), the
occurrence of such transaction shall be treated as the Participant’s Date of Termination
caused by the Participant being discharged by the employer.

	 
	(e)	 	Permanent Disability. The term “Permanent Disability” means a physical or mental
condition of Participant which, as determined by the Company, in its sole discretion based on
all available medical information, is expected to continue indefinitely and which renders
Participant incapable of substantially performing of the services required of him by his
employer.

	 
	(f)	 	Retirement. Termination because of “Retirement” shall mean the Participant’s Date of
Termination after attainment of age 62 or, if earlier, the Participant’s Date of Termination
which is designated by the Committee as a “Retirement” for purposes of the Award Terms.

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