Exhibit 10.2

 

This Agreement is dated September 17, 2003 and is between MONY LIFE INSURANCE
COMPANY, a New York corporation (the “Company”), and Samuel J. Foti (the
“Executive”).

 

1. Limitation of Benefits. The Executive agrees that the aggregate total amount
of any “CIC Payments” (as defined below) that the Executive (or his estate or
beneficiary or other person claiming by or through the Executive) may be
entitled to receive in connection with the proposed acquisition of the Company
by AXA Financial, Inc. (the “Proposed Merger”) shall not exceed the amounts set
forth in: (i) Column A if the Proposed Merger occurs on or prior to December 31,
2003 or (ii) Column B if the date of the Proposed Merger occurs after December
31, 2003 and on or prior to March 31, 2004; provided that the amounts in Column
A and Column B shall be prorated with respect to payments of annual and
long-term incentive compensation, and; further provided that, in either case,
the Executive’s employment is terminated within thirty days following the
Proposed Merger. In the event that the Proposed Merger occurs following March
31, 2004, the CIC Payments shall be limited to the amounts set forth in Column
B; provided that such amounts shall be deemed to be adjusted automatically,
without any further action on the part of the parties hereto, to reflect change
in entitlements under Section 8 of the CIC Agreements relating only to pro rata
payments of annual and long-term incentive compensation and calculation of
retirement benefits, and the Executive’s employment is terminated within thirty
days following the Proposed Merger. For avoidance of doubt, the foregoing shall
not be deemed to limit the amount of any Gross-Up Payment under Section 9 of the
Third Amended and Restated Change in Control Agreement, dated as of July 30,
2003, between the Company and the Executive (the “CIC Agreement”) or the rights
of the Executive with respect thereto.

 

2. CIC Payments. For purposes hereof, “CIC Payments” shall mean any payments and
the value of benefits to which the Executive (or his representative) becomes
entitled (i) under Section 8 of the CIC Agreements, (ii) pursuant to the actions
taken by resolution of the Compensation Committee of the Company’s Board of
Directors on September 9, 2003, (iii) pursuant to any other right as to which a
“Cash Value” is set forth in the attached Annexes A and B (the “E&Y
Calculations”) and (iv) any other payment that would be considered an “excess
parachute payment” under Section 280G of the Internal Revenue Code of 1986, as
amended, and the regulations thereunder.

 

3. Determination of Amounts. For purposes of applying the limitations of
paragraph 1 hereof, the amounts of payments and the value of benefits shall be
determined by Ernst & Young LLP on a basis consistent with the methodology and
assumptions used in the E&Y Calculations.

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4. Termination. This Agreement shall be terminated and be of no further force or
effect if the Agreement and Plan of Merger among AXA Financial, Inc., MONY
Acquisition Co. and The MONY Group Inc. that is being executed and delivered
concurrently herewith (the “Merger Agreement”) is not entered into or is
terminated in accordance with the its terms.

 

5. Acknowledgements. The Executive acknowledges that this Agreement was sought
at the request of AXA Financial, Inc., a Delaware corporation, in connection
with the transactions contemplated by the Merger Agreement, and that AXA
Financial, Inc. relied upon the Company obtaining this Agreement in connection
with AXA Financial, Inc.’s decision to acquire the Company. The Executive
further acknowledges that the consideration that the Executive will receive
under the CIC Payments, taking into account the limitation on the amounts
payable as provided in this Agreement, is sufficient for Executive to agree to
such limitation.

 

6. Governing Law, etc. This Agreement shall be governed in all respects by the
laws of the State of New York. Any dispute or controversy arising from or
relating to this Agreement shall be resolved under the CIC Agreement, including,
without limitation, Section 13.B of the CIC Agreement with respect to the
payment of the Executive’s legal fees. Except as may be modified hereby, the CIC
Agreements and the arrangements providing for CIC Payments shall remain in full
force and effect.

 

7. Confidentiality. The parties and AXA Financial, Inc. will treat the terms of
this Agreement as confidential. Notwithstanding the preceding sentence, both
parties and AXA Financial, Inc. (and each employee, representative, or other
agent thereof) have been and are permitted to disclose to any and all persons,
without limitation of any kind, the United States federal tax treatment and
structure of the transaction contemplated by this Agreement and all materials of
any kind (including opinions or other tax analyses) that are or have been
provided to the parties or AXA Financial, Inc. relating to such tax treatment
and structure. Each party and AXA Financial, Inc. acknowledge that they have no
proprietary or exclusive rights to the tax structure of the transaction. The
preceding two sentences are intended to cause the transaction contemplated
herein to be treated as not having been offered under conditions of
confidentiality for purposes of Section 1.6011-4(b)(3) (or any successor
provision) of the Treasury Regulations promulgated under Section 6011 of the
Internal Revenue Code and shall be construed in a manner consistent with such
purpose.

 

2

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IN WITNESS WHEREOF, the Company and the Executive have duly executed this
Agreement as of the date first above written.

 

EXECUTIVE

/s/ Samuel J. Foti

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Samuel J. Foti

MONY LIFE INSURANCE COMPANY

By:  

/s/ Michael I. Roth

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    Michael I. Roth    

Chairman and CEO

AXA FINANCIAL, INC

 

By:

 

/s/ Christopher M. Condron

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Christopher M. Condron

   

President and Chief Executive Officer

 

3

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MONY BASE CASE

 

CALCULATION DATE: SEPTEMBER 15, 2003

OVERALL SUMMARY OF BENEFITS

PURCHASE PRICE = $31.00

 

Samuel Foti

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   Column A

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   Column B

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Change in Control/Termination Date

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   December 31, 2003

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   March 31, 2004

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Severance

     3,541,250      3,541,250

Pro Rata Bonus

            276,639

Acceleration of Options

     742,500      742,500

Acceleration of Restricted Stock Awards

     2,857,549      2,857,549

SERP Payment

     2,586,241      2,715,330

NQIP Company Match

     135,111      135,111

Split-Dollar Life Insurance

     179,762      179,762

Health & Welfare

     114,481      375,869

Outplacement Services

     11,000      11,000

2001 LTPP Payout

     1,500,000      1,500,000

2002, 2003 LTPP Payouts

     2,166,667      2,500,000

2003 Bonus

     1,125,000      1,125,000     

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Grand Total

   $ 14,959,560    $ 15,960,010

 

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