EX-10.3



 EXHIBIT 10.3 

THE HANOVER INSURANCE GROUP 

AMENDED AND RESTATED 

2014 EMPLOYEE STOCK PURCHASE PLAN 
  

	Section 1.	Defined Terms 

 Exhibit A, which is incorporated by reference, defines the terms
used in the Plan and sets forth certain operational rules related to those terms. 
  

	Section 2.	Purpose of Plan 

 The Plan is intended to enable Eligible Employees of the Company and
its Designated Subsidiaries to use payroll deductions to purchase shares of Stock, and thereby acquire an interest in the future of the Company. The Plan is intended to qualify as an “employee stock purchase plan” under Section 423
and to be exempt from the application and requirements of Section 409A of the Code, and is to be construed accordingly. 
  

	Section 3.	Options to Purchase Stock 

 Subject to adjustment pursuant to Section 17 of this
Plan, the maximum aggregate number of shares of Stock available for purchase pursuant to the exercise of Options granted under the Plan to Eligible Employees will be 2,500,000 shares. The shares of Stock to be delivered upon exercise of Options
under the Plan may be either shares of authorized but unissued Stock, treasury Stock, or Stock acquired in an open-market transaction, all as the Board may determine. If any Option granted under the Plan expires or terminates for any reason without
having been exercised in full or ceases for any reason to be exercisable in whole or in part, the unpurchased shares of Stock subject to such Option will again be available for purchase pursuant to the exercise of Options under the Plan. If, on an
Exercise Date, the total number of shares of Stock that would otherwise be subject to Options granted under the Plan exceeds the number of shares then available under the Plan (after deduction of all shares for which Options have been exercised or
are then outstanding), the Administrator shall make a pro rata allocation of the shares remaining available for the Option grants in as uniform a manner as shall be practicable and as it shall determine to be equitable. In such event, the
Administrator shall give written notice to each Participant of such reduction of the number of Options affected thereby and shall similarly reduce the rate of payroll deductions, if necessary. 

 

	Section 4.	Eligibility 

 Subject to Section 14, and any exceptions and limitations set forth in
Section 6 or as permitted under Section 423, or as may be provided elsewhere in the Plan, each Employee who (a) customarily works twenty (20) hours or more per week and for more than five (5) months per calendar year,
(b) is employed by the Company or a Designated Subsidiary, and (c) satisfies the requirements set forth in the Plan will be an “Eligible Employee”. Notwithstanding the above, an Employee who is a citizen or resident of a
foreign jurisdiction (without regard to whether such Employee is also a citizen of the United States or resident alien in the United States) shall not be an Eligible Employee with respect to the Plan if the grant of an Option to such Employee is
prohibited under the laws of the Employee’s foreign jurisdiction or compliance with the laws of the foreign jurisdiction would cause the Plan or an Option to violate the requirements of Section 423. In no event, however, may an Employee be
granted an Option under the Plan if, immediately after the Option is granted, the Employee would own (or pursuant to Section 424(d) of the Code would be deemed to own) stock possessing five percent (5%) or more of the total combined voting
power or value of all classes of stock of the Company or of its Parent or Subsidiaries, if any. The Administrator may, for Option Periods that have not yet commenced, establish additional eligibility requirements not inconsistent with
Section 423. 








	Section 5.	Option Periods 

 The Plan will generally be implemented by a series of “Option
Periods,” which may be sequential and/or overlapping. Unless otherwise determined by the Administrator, the Option Periods will be the six-month periods commencing January 1 and ending June 30 and commencing July 1 and ending
December 31 of each year (each, a “Six-Month Option Period”). The Administrator may also designate other Option Periods. Each June 30 and December 31 and each other end of an Option Period designated by the
Administrator will be an “Exercise Date”. The Administrator may change the Exercise Date and the commencement date, ending date and duration of the Option Periods to the extent permitted by Section 423. 

 

	Section 6.	Option Grant 

 Subject to the limitations set forth in Section 4, Section 8 and
Section 10 and the Maximum Share Limit, on the first day of an Option Period, each Participant automatically will be granted an Option to purchase shares of Stock on the Exercise Date; provided, however, that no Participant will
be granted an Option under the Plan that permits the Participant’s right to purchase shares of Stock under the Plan and under all other employee stock purchase plans of the Company and its Parent and Subsidiaries, if any, to accrue at a rate
that exceeds $25,000 in Fair Market Value (or such other maximum as may be prescribed from time to time by the Code) for each calendar year during which any Option granted to such Participant is outstanding at any time, as determined in accordance
with Section 423(b)(8) of the Code. 
  

	Section 7.	Method of Participation 

 To participate in an Option Period, an Eligible Employee must
execute and deliver to the Administrator a participation election form in accordance with the procedures prescribed by and in a form acceptable to the Administrator and, in so doing, the Eligible Employee will thereby become a Participant as of the
first day of such Option Period. With respect to Six-Month Option Periods, such Eligible Employee will remain a Participant with respect to subsequent Six-Month Option Periods until his or her participation in the Plan is terminated as provided
herein. Such participation election must be delivered no later than 10 business days prior to the first day of an Option Period, or such other time as specified by the Administrator. 

A Participant’s election, with respect to a Six-Month Option Period, will remain in effect for subsequent Six-Month Option Periods unless
the Participant files a new election not less than 10 business days prior to the first day of a Six-Month Option Period (or such other time as specified by the Administrator) or the Participant’s Option is cancelled pursuant to Section 14
or Section 15. During an Option Period, elections and rates of contribution to the Plan may not be increased or decreased, except that a Participant may terminate his or her election by canceling his or her Option in accordance with
Section 14. 
  

	Section 8.	Method of Payment 

 The Administrator will prescribe the method or methods of payment
available for a Participant to pay for shares of Stock purchased upon the exercise of an Option, including by cash, check or with accumulated payroll deductions credited to the Participant’s Account. To use payroll deductions, if permitted, a
Participant must execute and deliver to the Administrator a payroll deduction authorization form in accordance with the procedures prescribed by and in a form acceptable to the Administrator 

  
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subject to complying with any minimum and maximum amounts that may be deducted per pay period in accordance with the terms of the Plan. With respect to Six-Month Option Periods, a
Participant’s payroll deduction authorization, if any, will remain in effect for subsequent Six-Month Option Periods unless the Participant files a new payroll deduction authorization not less than 10 business days prior to the first day of a
Six-Month Option Period (or such other time as specified by the Administrator) or the Participant’s Option is cancelled pursuant to Section 14 or Section 15. During an Option Period, payroll deductions may not be increased or
decreased, except that a Participant may terminate his or her payroll deduction by canceling his or her Option in accordance with Section 14. 

Each payroll deduction authorization will request payroll deductions in an amount equal to a percentage (expressed as a whole percentage) of
the Participant’s total base compensation per payroll period, including base pay or base salary, overtime and shift differentials, or a fixed dollar amount, as determined by the Administrator. If the Administrator determines that another limit
shall be imposed hereunder or that eligible compensation shall be defined in a different manner, determinations shall be made in a manner that satisfies the requirements of Treasury Regulation Section 1.423-2(f)(2). 

All payroll deductions made pursuant to this 8 will be credited to the Participant’s Account. Amounts credited to a Participant’s
Account will not be required to be set aside in trust or otherwise segregated from the Company’s general assets. 
  

	Section 9.	Purchase Price 

 The Purchase Price of shares of Stock issued pursuant to the exercise of
an Option on each Exercise Date will be eighty-five percent (85%) (or such greater percentage specified by the Administrator to the extent permitted under Section 423) of a one of the following, as selected by the Administrator prior to
the commencement of the relevant Option Period: 
 (a) the Fair Market Value of a share of Stock on the date on which the
Option was granted pursuant to Section 6 (i.e., the first day of the Option Period); 
 (b) the Fair Market Value
of a share of Stock on the date on which the Option is deemed exercised pursuant to Section 10 (i.e., the Exercise Date); or 

(c) the lesser of (a) and (b). 
  

	Section 10.	Exercise of Options 

 Subject to the limitations set forth in Section 6,
Section 8 and this Section 10, with respect to each Option Period, on the applicable Exercise Date, each Participant will be deemed to have exercised his or her Option and (a) if the Participant has an Account, the accumulated payroll
deductions in the Participant’s Account will be applied to purchase the greatest number of whole shares of Stock (rounded down to the nearest whole share) that can be purchased with such Account balance at the applicable Purchase Price or
(b) if the Purchase Price is paid by check or other means acceptable to the Administrator, the amount remitted by the Participant will be applied to purchase the greatest number of whole shares of Stock (rounded down to the nearest whole share)
that can be purchased with such amount at the applicable Purchase Price; provided, however, in either case that no more than 1,000 shares of Stock may be purchased by a Participant on any Exercise Date, or such lesser number as the
Administrator may prescribe in accordance with Section 423 (the “Maximum Share Limit”). As soon as practicable thereafter, shares of Stock so purchased will be placed, in book-entry form, into a record keeping account in the
name of the Participant. No fractional shares will be purchased. Prior to the commencement of an Option Period, the Administrator shall determine whether any payroll deductions 

  
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accumulated in a Participant’s Account or amounts paid by check or otherwise that are not sufficient to purchase a full share will be retained or deposited, as applicable, in the
Participant’s Account for the subsequent Option Period, subject to earlier withdrawal by the Participant as provided in Section 14 hereof, or returned to the Participant or his or her designated beneficiary or legal representative, as
applicable, without interest, as soon as administratively practicable after the Exercise Date or earlier withdrawal, as applicable. 

Except as provided above with respect to fractional shares, any amount of payroll deductions in a Participant’s Account or amounts paid
by check or otherwise that are not used for the purchase of shares of Stock, whether because of the Participant’s withdrawal from participation in an Option Period or for any other reason, will be returned to the Participant or his or her
designated beneficiary or legal representative, as applicable, without interest, as soon as administratively practicable after such withdrawal or other event, as applicable. 

If the Participant’s accumulated payroll deductions or amounts paid by check or otherwise on the Exercise Date would otherwise enable the
Participant to purchase shares of Stock in excess of the Maximum Share Limit, the excess of such amount over the aggregate Purchase Price of the shares of Stock actually purchased will be returned to the Participant, without interest, as soon as
administratively practicable after such Exercise Date. 
 Notwithstanding any provision of the Plan to the contrary, no Option may be
exercised after 27 months from its grant date. 
  

	Section 11.	Restrictions on Transfer; Plan Accounts; Disqualifying Dispositions 

 By electing to
participate in the Plan, each Participant agrees to be subject to the restrictions and covenants set forth in this Section 11. 

Shares of Stock purchased under the Plan will be subject to a restriction prohibiting the transfer, sale, pledge or alienation of such shares
of Stock by a Participant, other than by will or by the laws of descent and distribution, for a period of six (6) months (or such other period as may be determined by the Administrator) from the date on which such shares of Stock are purchased
by the Participant hereunder. 
 In addition, and without limiting the foregoing, for such period determined by the Administrator, all
shares of Stock purchased under the Plan by a Participant will be subject to a restriction prohibiting the transfer of such shares of Stock by the Participant from the account where such shares of Stock are initially held until such shares are sold
through the Plan’s custodian and record keeper. 
 By electing to participate in the Plan, each Participant agrees to provide such
information about any transfer of Stock acquired under the Plan that occurs within two years after the first day of the Option Period in which such Stock was acquired and within one year after the acquisition of such Stock as may be requested by the
Company or any Designated Subsidiary in order to assist such entity in complying with applicable tax laws. 
  

	Section 12.	Interest 

 No interest will be payable on any amount held in the Account of any
Participant. 

  
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	Section 13.	Taxes 

 Payroll deductions will be made on an after-tax basis. The Administrator will
have the right, as a condition to exercising an Option, to make such provision as it deems necessary to satisfy its obligations to withhold federal, state, local income or other taxes incurred by reason of the purchase or disposition of shares of
Stock under the Plan. In the Administrator’s discretion and subject to applicable law, such tax obligations may be paid in whole or in part by delivery of shares of Stock to the Company, including shares of Stock purchased under the Plan,
valued at Fair Market Value, but not in excess of the minimum statutory amounts required to be withheld. 
  

	Section 14.	Cancellation and Withdrawal 

 A Participant who holds an Option under the Plan may cancel
all (but not less than all) of his or her Option and terminate his or her participation and/or payroll deduction authorization by revoking such authorization by written notice delivered to the Administrator, which, to be effective with respect to an
upcoming Exercise Date, must be delivered not later than 10 business days prior to such Exercise Date (or such other time as specified by the Administrator). Upon such termination and cancellation, the balance in the Participant’s Account or
any amounts paid by other means will be returned to the Participant, without interest, as soon as administratively practicable thereafter. If a Participant cancels or otherwise terminates an Option, in order to participate in future Option Periods,
the Participant must affirmatively execute and deliver a new election to participate in accordance with Section 7. 
 A Participant who
makes a hardship withdrawal from a 401(k) Plan will be deemed to have terminated his or her election and/or payroll deduction authorization for subsequent payroll dates relating to the then current Option Period as of the date of such hardship
withdrawal and amounts accumulated in the Participant’s Account or amounts paid by other means as of such date will be returned to the Participant, without interest, as soon as administratively practicable thereafter. An Employee who has made a
hardship withdrawal from a 401(k) Plan will not be permitted to participate in Option Periods commencing after the date of his or her hardship withdrawal until the first Option Period that begins at least six months after the date of his or her
hardship withdrawal. 
  

	Section 15.	Termination of Employment; Death of Participant 

 Upon the termination of a
Participant’s employment with the Company (or a Designated Subsidiary, as applicable) for any reason or the death of a Participant during an Option Period prior to an Exercise Date or in the event the Participant ceases to qualify as an
Eligible Employee, the Participant will cease to be a Participant, any Option held by him or her under the Plan will be deemed canceled, the balance in the Participant’s Account or amounts paid by other means will be returned to the Participant
(or his or her estate or designated beneficiary in the event of the Participant’s death), without interest, as soon as administratively practicable thereafter, and the Participant will have no further rights under the Plan. 

 

	Section 16.	Equal Rights; Participant’s Rights Not Transferable 

 All Participants granted
Options under the Plan will have the same rights and privileges consistent with the requirements set forth in Section 423. Any Option granted under the Plan will be exercisable during the Participant’s lifetime only by him or her and may
not be sold, pledged, assigned, or transferred in any manner. In the event any Participant violates or attempts to violate the terms of this Section 16, as determined by the Administrator in its sole discretion, any Options held by him or her
may be terminated by the Company and, upon the return to the Participant of the balance of his or her Account or any amounts paid by other means, without interest, all of the Participant’s rights under the Plan will terminate. 

  
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	Section 17.	Change in Capitalization; Merger 

 In the event of any change in the outstanding Stock by
reason of a stock dividend, split-up, recapitalization, merger, consolidation, reorganization, or other capital change, the aggregate number and type of shares of Stock available under the Plan, the number and type of shares of Stock granted under
any outstanding Options, the maximum number and type of shares of Stock purchasable under any outstanding Option, and the purchase price per share of Stock under any outstanding Option will be appropriately adjusted; provided, that no such
adjustment will be made unless the Administrator is satisfied that it will not constitute a modification of the rights granted under the Plan or otherwise disqualify the Plan as an employee stock purchase plan under the provisions of
Section 423. 
 In the event of a sale of all or substantially all of the Stock or a sale of all or substantially all of the assets of
the Company, or a merger or similar transaction in which the Company is not the surviving corporation or that results in the acquisition of the Company by another person, the Administrator may, in its discretion, (a) if the Company is merged
with or acquired by another corporation, provide that each outstanding Option will be assumed or exchanged for a substitute Option granted by the acquiror or successor corporation or by a parent or subsidiary of the acquiror or successor
corporation, (b) cancel each outstanding Option and return the balances in Participants’ Accounts or any amounts paid by other means to the Participants, and/or (c) pursuant to Section 19, terminate the Option Period on or before
the date of the proposed sale, merger or similar transaction. 
  

	Section 18.	Administration of Plan 

 The Plan will be administered by the Administrator, which will
have the right to determine any questions which may arise regarding the interpretation and application of the provisions of the Plan and to make, administer, and interpret such rules and regulations as it deems necessary or advisable. All
determinations and decisions by the Administrator regarding the interpretation or application of the Plan will be final and binding on all Participants. 

The Administrator may specify the manner in which Employees are to provide notices and payroll deduction authorizations. Notwithstanding any
requirement of “written notice” herein, the Administrator may permit Employees to provide notices and payroll deduction authorizations electronically. 
  

	Section 19.	Amendment and Termination of Plan 

 The Board reserves the right at any time or times to
amend the Plan to any extent and in any manner it may deem advisable, by action of the Board; provided, that any amendment that would be treated as the adoption of a new plan for purposes of Section 423 will have no force or effect
unless approved by the shareholders of the Company within 12 months before or after its adoption. 
 The Plan may be suspended or terminated
at any time by the Company, by action of the Board. In connection therewith, the Board may provide, in its sole discretion, either that outstanding Options will be exercisable either at the Exercise Date for the applicable Option Period or on such
earlier date as the Board may specify (in which case such earlier date will be treated as the Exercise Date for the applicable Option Period), or that the balance of each Participant’s Account or any amounts paid by other means will be returned
to the Participant, without interest. 

  
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	Section 20.	Approvals 

 Notwithstanding anything herein to the contrary, the obligation of the
Company to issue and deliver shares of Stock under the Plan will be subject to the approval required of any governmental authority in connection with the authorization, issuance, sale or transfer of said shares of Stock, to any requirements of any
national securities exchange applicable thereto, and to compliance by the Company with other applicable legal requirements in effect from time to time. 
  

	Section 21.	Participants’ Rights as Shareholders and Employees 

 A Participant will have no
rights or privileges as a shareholder of the Company and will not receive any dividends in respect of any shares of Stock covered by an Option granted hereunder until such Option has been exercised, full payment has been made for such shares of
Stock, and the shares of Stock have been issued to the Participant. 
 Nothing contained in the provisions of the Plan will be construed as
giving to any Employee the right to be retained in the employ of the Company or any Designated Subsidiary or as interfering with the right of the Company or any Designated Subsidiary to discharge, promote, demote or otherwise re-assign any Employee
from one position to another within the Company any Designated Subsidiary at any time. 
  

	Section 22.	Governing Law 

 Subject to overriding federal law, the Plan will be governed by and
interpreted consistently with the laws of the State of Delaware, except as may be necessary to comply with applicable requirements of federal law. 
  

	Section 23.	Effective Date and Term 

 The Company’s shareholders approved the Plan at the
Company’s 2014 annual meeting on May 20, 2014 (the “Effective Date”) and no rights will be granted hereunder after the earliest to occur of (a) the Plan’s termination by the Company, (b) the issuance of all
shares of Stock available for issuance under the Plan or (c) the day before the 10-year anniversary of the date the Company’s shareholders approve the Plan. The Plan was amended and restated effective May 20, 2014. 

  
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 EXHIBIT A 

Definition of Terms 

The following terms, when used in the Plan, will have the meanings and be subject to the provisions set forth below: 

“401(k) Plan”: A savings plan qualifying under Section 401(k) of the Code that is sponsored by the Company or one of its
Subsidiaries for the benefit of its employees. 
 “Account”: A payroll deduction account maintained in the
Participant’s name on the books of the Company or a Designated Subsidiary. 
 “Administrator”: The Compensation
Committee of the Board and its delegates, except that the Compensation Committee may delegate its authority under the Plan to a sub-committee comprised of one or more of its members, to members of the Board, or to officers or employees of the
Company to the extent permitted by applicable law. In each case references herein to the Administrator refer, as applicable, to such persons or groups so delegated to the extent of such delegation.

“Board”: The Board of Directors of the Company. 

“Code”: The U.S. Internal Revenue Code of 1986 as from time to time amended and in effect, or any successor statute as from
time to time in effect. 
 “Company”: The Hanover Insurance Group, Inc. 

“Designated Subsidiary”: A Subsidiary of the Company that has been designated by the Board or the Compensation Committee of
the Board from time to time as eligible to participate in the Plan. Exhibit B sets forth the Designated Subsidiaries as of the Effective Date. 

“Effective Date”: The date set forth in Section 23 of the Plan. 

“Eligible Employee”: Any Employee who meets the eligibility requirements set forth in Section 4 of the Plan. 

“Employee”: Any person who is employed by the Company or a Designated Subsidiary. For the avoidance of doubt, independent
consultants and independent contractors are not “Employees.” 
 “Exercise Date”: The date set forth in
Section 5 of the Plan or otherwise designated by the Administrator with respect to a particular Option Period on which a Participant will be deemed to have exercised the Option granted to him or her for such Option Period. 

“Fair Market Value”: 

(a) If the Stock is readily traded on an established national exchange or trading system (including the Nasdaq Global Market), the closing
price of the Stock as reported by the principal exchange on which such Stock is traded; provided, however, that if such day is not a trading day, Fair Market Value will mean the reported closing price of the Stock for the immediately
preceding day that is a trading day. 
 (b) If the Stock is not traded on an established national exchange or trading system, the average of
the bid and ask prices for such Stock where the bid and ask prices are quoted. 

  
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 (c) If the Stock cannot be valued pursuant to clauses (a) or (b), the value as determined in
good faith by the Board in its sole discretion. 
 “Maximum Share Limit”: The meaning set forth in Section 10 of the
Plan. 
 “Option”: An option granted pursuant to the Plan entitling the holder to acquire shares of Stock upon payment of
the Purchase Price per share of Stock. 
 “Option Period”: An offering period established in accordance with Section 5
of the Plan. 
 “Parent”: A “parent corporation” as defined in Section 424(e) of the Code. 

“Participant”: An Eligible Employee who elects to enroll in the Plan. 

“Plan”: The Hanover Insurance Group Amended and Restated 2014 Employee Stock Purchase Plan, as from time to time amended and
in effect. 
 “Purchase Price”: The price per share of Stock with respect to an Option Period determined in accordance with
Section 9 of the Plan. 
 “Section 423”: Section 423 of the Code and the regulations thereunder. 

“Stock”: Common stock of the Company, par value $0.01 per share. 

“Subsidiary”: A “subsidiary corporation” as defined in Section 424(f) of the Code. 

  
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 EXHIBIT B 

Designated Subsidiaries 
 The
Hanover Insurance Company 

  
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