Document:

FORM OF EMPLOYMENT AGREEMENT

 

Exhibit 10.06

EMPLOYMENT AGREEMENT

     EMPLOYMENT AGREEMENT, dated as of November 5, 2001, by and between The
Hartford Financial Services Group, Inc., a Delaware corporation (the
“Company”), and David M. Znamierowski (“Executive”).

W I T N E S S E T H:

          WHEREAS, the Company wishes to recognize the substantial services that
Executive has provided to the Company; and

          WHEREAS, the Company desires that Executive continue to perform such
services and to enter into an agreement embodying the terms of such employment
(the “Agreement”); and

          WHEREAS, Executive desires to continue such employment and enter into such
Agreement;

          NOW, THEREFORE, in consideration of the mutual covenants herein contained,
the Company and Executive hereby agree as follows:

	1.	 	Employment.

(a) Agreement to Employ. Upon the terms and subject to the conditions of
this Agreement, the Company hereby agrees to continue to employ Executive
and Executive hereby agrees to continue his employment by the Company.

(b) Term of Employment. Except as otherwise provided below, the
Company shall employ Executive for the period commencing on the date
first written above (the “Commencement Date”) and ending on the third
anniversary of the Commencement Date. At the expiration of the original
term or any extended term (each a “Renewal Date”), Executive’s employment
hereunder shall be extended automatically, upon the same terms and
conditions, for successive one-year periods, unless either party shall
give written notice to the other of its intention not to renew such
employment at least twelve months prior to such Renewal Date. In the
event that this Agreement expires at the end of its then current term by
reason of either party having delivered a written notice of non-renewal
to the other in accordance with this Section 1(b), then, except as
otherwise provided in Section 9, neither the Company nor Executive shall
have any further duties or obligations to, or rights against, the other
party under or pursuant to this Agreement; provided that notwithstanding
the foregoing, the Company shall continue to have any and all rights
against Executive in the event that Executive was involved during the
Employment Period in acts that would have permitted a Termination For
Cause as defined in Section 5(d) hereof. Without limiting the generality
of the foregoing, upon the occurrence of a Change of Control (as defined
below), the term of this Agreement shall be extended automatically
without any action by either party until the third anniversary of such
Change of Control. Notwithstanding the foregoing, if not previously
terminated pursuant to Sections 1(b), 5(a) or 6(a), the term of this
Agreement shall terminate on the last day of the month in which Executive
attains age

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65, and such a termination upon Executive reaching age 65 shall be deemed
to be a Termination Due to Retirement for purposes of this Agreement.
The period during with Executive is employed pursuant to this Agreement,
including any extension thereof in accordance with this Section 1(b),
shall be referred to as the “Employment Period.”

	2.	 	Position and Duties.

During the Employment Period, Executive shall serve as Group Senior Vice
President and Chief Investment Officer of the Company, President of HIMCO,
and a member of the Office of the Chairman of the Company, and/or in such
other position or positions with the Company or its affiliates commensurate
with his position and experience as the Board of Directors of the Company
(the “Board”) shall from time to time specify. During the Employment
Period, Executive shall have the duties, responsibilities and obligations
customarily assigned to individuals serving in the position or positions in
which Executive serves hereunder and such other duties, responsibilities and
obligations as the Board shall from time to time specify. Executive shall
devote his full time to the services required of him hereunder, except for
vacation time and reasonable periods of absence due to sickness, personal
injury or other disability, and shall use his best efforts, judgment, skill
and energy to perform such services in a manner consonant with the duties of
his position and to improve and advance the business and interests of the
Company and its affiliates. During the Employment Period, Executive shall
comply with the Code of Corporate Conduct of the Company. Unless and to the
extent inconsistent with the terms of any published Company policy or code
of conduct as in effect on the date hereof and as hereafter amended, nothing
contained herein shall preclude Executive from (a) serving on the board of
directors of any business corporation with the consent of the Board, (b)
serving on the board of, or working for, any charitable or community
organization, or (c) pursuing his personal financial and legal affairs, so
long as the foregoing activities, individually or collectively, do not
interfere with the performance of Executive’s duties hereunder or violate
any of the provisions of Section 9 hereof.

	3.	 	Compensation.

(a) Base Salary. During the Employment Period, the Company shall
pay Executive a base salary at the annual rate as in effect on the date
hereof. The annual base salary payable under this paragraph shall be
reduced, however, to the extent that Executive elects to defer such
salary under the terms of any deferred compensation or savings plan or
arrangement maintained or established by the Company or its affiliates.
The Board or the appropriate committee of the Board may in its discretion
periodically review Executive’s base salary in light of competitive
practices, the base salaries paid to other executive officers of the
Company and the performance of Executive and the Company and its
applicable affiliates, and may, in its discretion, increase such base
salary by an amount it determines to be appropriate. Any such increase
shall not reduce or limit any other obligation of the Company hereunder.
Executive’s base salary (as set forth above or as may be increased from
time to time) shall not be reduced following any Change of Control, but
may be reduced prior to a Change of Control solely pursuant to a
cost-saving plan or structural realignment of total compensation elements
that includes all senior executives and only to the extent that such
reduction is proportionate to the reductions applicable to other senior
executives. Executive’s annual base salary payable hereunder, as it may
be increased or reduced from time to time as provided herein and without
reduction for any

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amounts deferred as described above, shall be referred to herein as “Base
Salary.” The Company shall pay Executive the portion of his Base Salary
not deferred not less frequently than in equal monthly installments.

(b) Annual Bonus. For each calendar year ending during the
Employment
Period, Executive shall have the opportunity to earn and receive an
annual bonus, based on the achievement of target levels of performance,
equal to the percentage of his Base Salary used to calculate such annual
bonus as of the date hereof. Executive’s annual bonus opportunity may be
increased above such percentage from time to time by the Board or the
appropriate committee thereof. Executive’s annual bonus opportunity
shall not be reduced following a Change of Control, but may be reduced
prior to a Change of Control solely pursuant to a cost-saving plan or
structural realignment of total compensation elements that includes all
senior executives and only to the extent that such reduction is
proportionate to the reductions applicable to other senior executives.
Executive’s annual bonus opportunity, as it may be increased or reduced
from time to time as provided herein, shall be referred to herein as
“Target Bonus.” The actual bonus, if any, payable for any such year
shall be determined in accordance with the terms of the Company’s Annual
Executive Bonus Program or any successor annual incentive plan (the
“Annual Plan”) based upon the performance of the Company and/or its
applicable affiliates and/or Executive against target objectives
established under such Annual Plan. Subject to Executive’s election to
defer all or a portion of any annual bonus payable hereunder pursuant to
the terms of any deferred compensation or savings plan or arrangement
maintained or established by the Company or its affiliates, any annual
bonus payable under this Section 3(b) shall be paid to Executive in
accordance with the terms of the Annual Plan.

(c) Long-term Incentive Compensation. During the Employment
Period, Executive shall participate in all of the Company’s existing and future
long-term incentive compensation programs for key executives at a level
commensurate with his position with the Company and consistent with the
Company’s then current policies and practices, as determined in good
faith by the Board or the appropriate committee of the Board.

	4.	 	Benefits, Perquisites and Expenses.

(a) Benefits. During the Employment Period, Executive (and, to
the extent applicable, his dependents) shall be eligible to participate in or be
covered under (i) each welfare benefit plan or program maintained or as
hereafter amended or established by the Company or its applicable
affiliates, including, without limitation, each group life,
hospitalization, medical, dental, health, accident or disability
insurance or similar plan or program of thereof, and (ii) each pension,
retirement, savings, deferred compensation, stock purchase or other
similar plan or program maintained or as hereafter amended or established
by the Company or its applicable affiliates, in each case to the extent
that Executive is eligible to participate in any such plan or program
under the generally applicable provisions thereof. Nothing in this
Section 4(a) shall limit the Company’s right to amend or terminate any
such plan or program in accordance with the procedures set forth therein
or as permitted by applicable law.

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(b) Perquisites. For each calendar year during the Employment
Period, Executive shall be entitled to at least the number of paid vacation days
per year that Executive is entitled to as of the date hereof, and shall
also be entitled to receive such other perquisites as are generally
provided to him as of the date hereof or are hereafter provided to other
similarly situated senior executives of the Company in accordance with
the then current policies and practices of the Company.

(c) Business Expenses. During the Employment Period, the Company
shall pay or reimburse Executive for all reasonable business expenses incurred
or paid by Executive in the performance of Executive’s duties hereunder,
upon presentation of expense statements or vouchers and such other
information as the Company may require in accordance with the generally
applicable policies and procedures of the Company.

(d) Office and Support Staff. During the Employment Period,
Executives shall be entitled to an office with furnishings and other material
appointments, and to secretarial and other assistance, at a level that is
at least commensurate with the foregoing provided to him as of the date
hereof or is hereafter provided to other similarly situated senior
executives of the Company.

(e) Indemnification. The Company shall indemnify Executive and
hold Executive harmless from and against any claim, loss or cause of action,
regardless of whether asserted during or after the Employment Period,
arising from or out of Executive’s performance as an officer, director or
employee of the Company or any of its affiliates or in any other
capacity, including any fiduciary capacity in which Executive serves at
the request of the Company, to the maximum extent permitted by applicable
law and under the Certificate of Incorporation and By-Laws of the
Company, as my be amended from time to time (the “Governing Documents”),
provided that in no event shall the protection afforded to Executive be
less than that afforded under the Governing Documents as in effect on the
Commencement Date.

	5.	 	Termination of Employment
	 
	 	 	The provisions of this Section 5 shall apply prior to the occurrence of a
Change of Control and, if Executive is still in the Company’s employ, shall
again become applicable upon the third anniversary of such Change of
Control.

(a) Early Termination of the Employment Period.
Notwithstanding
Section 1(b) hereof, the Employment Period shall end upon the earliest
to occur of (i) a Termination For Cause, (ii) a Termination Without
Cause, (iii) a Voluntary Termination, (iv) a Termination Due to
Retirement, (v) a Termination Due to Disability, or (vi) a Termination
Due to Death.

(b) Notice of Termination. Communication of termination
under this
Section 5 shall be made to the other party by Notice of Termination in
the case of (i) a Termination For Cause, (ii) a Termination Without
Cause, or (iii) a Voluntary Termination.

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(c) Benefits Payable Upon Termination; Rules for
Determining Reason for Termination.

(i) Benefits Payable Upon Termination. Following the end of
the Employment Period pursuant to Section 5(a), Executive
(or, in the event of his death, his surviving spouse, if
any, or if none, his estate) shall be paid the type or types
of compensation determined to be payable in accordance with
the following table, such payment to be made in the form
specified in such table and at the time established pursuant
to Section 7 hereof. Capitalized terms used in such table
shall have the meanings set forth in Section 5(d) hereof.

(ii) Rules for Determining Reason for Termination.

(A) If a Voluntary Termination occurs on a date that
Executive is eligible for Retirement as defined in The
Hartford Investment and Savings Plan, as may be
amended from time to time, or any successor plan
thereof (the “Savings Plan”), such Voluntary
Termination shall instead be treated as a Termination
Due to Retirement solely for purposes of this Section
5.

(B) No Termination Without Cause shall be treated as a
Termination Due to Retirement or a Termination Due to Disability for purposes
of any Pro Rata Target Bonus, Severance Payment, Equity Awards or Vested
Benefits Enhancement under this Section 5, notwithstanding the fact that,
either on, before or after the date of termination of the Employment Period
with respect thereto, (I) Executive was eligible for Retirement as defined in
the Savings Plan, (II) Executive requested to be treated as a retiree for
purposes of the Savings Plan or any other plan or program of the Company or its
affiliates, or (III) Executive or the Company could have terminated Executive’s
employment in a Termination Due to Disability hereunder.

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BENEFITS PAYABLE : NON-CHANGE OF CONTROL

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Vested	 	 
	 	 	Accrued	 	Pro Rata Target	 	Severance	 	 	 	 	 	Benefits	 	Welfare Benefits
	BENEFIT:
	 	Salary
	 	Bonus
	 	Payment
	 	Equity Awards
	 	Vested Benefits
	 	Enhancement
	 	Continuation

	FORM
OF

 PAYMENT:

	 	Lump 

Sum

	 	Lump 

Sum

	 	Lump

 Sum

	 	Determined Under the 

Applicable

Plan

	 	Determined

 Under the

Applicable Plan

	 	Lump

 Sum

	 	Determined 

Under the

Applicable Plan

	Termination For Cause

	 	Payable
	 	Not Payable
	 	Not Payable
	 	Not Payable
	 	Determined Under the

Applicable Plan
	 	Not Payable
	 	Not Available
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Termination Without

Cause

	 	Payable
	 	Payable
	 	Payable
	 	Options / Restricted Stock:

Payable

Other Equity Awards:
	 	Determined Under the

Applicable Plan
	 	Payable
	 	Available
	

	 	 	 	 	 	 	 	Determined Under the Applicable Plan	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Voluntary Termination

	 	Payable
	 	Determined Under the

Applicable Plan
	 	Not Payable
	 	Determined Under the Applicable
Plan
	 	Determined Under the

Applicable Plan
	 	Not Payable
	 	Not Available
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Termination Due to
Retirement

	 	Payable
	 	Determined Under the

Applicable Plan
	 	Not Payable
	 	Determined Under the Applicable
Plan
	 	Determined Under the

Applicable Plan
	 	Not Payable
	 	Available
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Termination Due to
Disability

	 	Payable
	 	Payable
	 	Not Payable
	 	Determined Under the Applicable
Plan
	 	Determined Under the

Applicable Plan
	 	Not Payable
	 	Available
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Termination Due to
Death

	 	Payable
	 	Payable
	 	Not Payable
	 	Determined Under the Applicable
Plan
	 	Determined Under the

Applicable Plan
	 	Not Payable
	 	Not Available

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(d) Definitions.

“Accrued Salary” means any Base Salary earned, but unpaid, for
services rendered to the Company on or prior to the date on which
the Employment Period ends pursuant to Section 5(a) (other than
Base Salary deferred pursuant to Executive’s election, as
contemplated by Section 3(a) hereof), plus any vacation pay accrued
by Executive as of such date.

“Available” means that the particular benefit shall be made
available to Executive to the extent specifically provided herein
or required by applicable law.

“Determined Under the Applicable Plan” means that the determination
of whether a particular benefit shall or shall not be paid to
Executive, and, where specifically required by this Agreement, the
timing or form of any benefit payment, shall be made solely by
application of the terms of the plan or program providing such
benefit, except to the extent that the terms of such plan or
program are expressly superseded or modified by this Agreement.

“Equity Awards” means the outstanding stock option, restricted
stock, performance share and other equity or long-term incentive
compensation awards, if any, held by Executive as of the date of
his termination.

“ERPs” means any excess retirement plans maintained or as hereafter
amended or established by the Company or its applicable affiliates.

“ESPs” means any excess investment and savings plans maintained or
as hereafter amended or established by the Company or its
applicable affiliates.

“Lump Sum” means a single lump sum cash payment.

“Not Available” means that the particular benefit shall not be made
available to Executive, except to the extent required by applicable
law.

“Not Payable” means (i) with respect to benefits other than Equity
Awards, such benefits shall not be paid or otherwise provided to
Executive, and (ii) with respect to Equity Awards, such Equity
Awards, to the extent unvested, unexercisable, or subject to
restrictions that have not yet lapsed, shall be forfeited and/or
canceled as of the date of termination of the Employment Period,
unless otherwise determined by the Board or the appropriate
committee of the Board in its discretion.

“Notice of Termination” means (i) in the case of Termination For
Cause, a written notice given by the Company to Executive within 30
calendar days of

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the Company’s having actual knowledge of the events giving rise to
such Termination For Cause, (ii) in the case of a Termination
Without Cause, a written notice given by the Company to Executive
at least 30 calendar days before the effective date of such
Termination Without Cause, and (iii) in the case of a Voluntary
Termination, a written notice given by Executive to the Company
indicating the effective date of Executive’s termination of
Employment Period in such Voluntary Termination, such effective
date to be no earlier than 30 days following the date such notice
is received by the Company from Executive.

“Payable” means (i) with respect to benefits other than those
described in clause (ii) of this paragraph, such benefits shall be
paid to Executive in the amount, at the time, and in the form
specified herein, and (ii) with respect to benefits described in
this clause (ii), the following shall apply solely in the event of
a Termination Without Cause, notwithstanding anything in the
applicable plan or program to the contrary: (A) with respect to any
outstanding stock options not yet expired as of the date of
termination of the Employment Period, Executive shall be treated as
though he remained in the employ of the Company for the two year
period following such date, and except to the extent that any such
options first expire during such period under the applicable plan
or program, (I) any such options that would have become vested over
such two year period solely by reason of Executive remaining in the
employ of the Company during such period shall become immediately
vested and nonforfeitable, (II) with respect to any options that by
their terms would vest if the stock of the Company or any affiliate
were to reach a specified market price, such options shall become
vested and nonforfeitable if and when such stock reaches such price
during such two year period, and (III) Executive shall have an
additional two years to exercise any vested options (beyond the
time to exercise such options permitted under the applicable plan
or program), and (B) with respect to any restricted stock subject
to restrictions that have not yet lapsed as of the date of
termination of the Employment Period, such restrictions shall be
deemed to have lapsed and such restricted stock shall become
immediately vested and nonforfeitable as of such date.

“Pro-Rata Target Bonus” means an amount equal to the product of:
(i) an amount equal to the Target Bonus Executive would have been
entitled to receive under Section 3(b) for the calendar year in
which the Employment Period terminates, and (ii) a fraction (the
“Service Fraction”), the numerator of which is equal to the number
of rounded months (rounded to the nearest number of whole months)
in such calendar year which have elapsed as of the date of such
termination, and the denominator of which is 12; provided that, if
the Employment Period terminates in the last quarter of any
calendar year, the Pro-Rata Target Bonus shall be the amount
determined under the above formula or, if greater, the product of:
(A) the bonus that would have been paid to Executive based on
actual performance for such calendar year, and (B) the Service
Fraction.

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“Severance Payment” means an amount equal to two times the sum of:
(i) Executive’s Base Salary at the rate in effect as of the date of
termination of the Employment Period, and (ii) Executive’s Target
Bonus amount under Section 3(b) hereof for the calendar year in
which the Employment Period terminates.

“Termination Due to Death” means a termination of Executive’s
employment due to death of Executive.

“Termination Due to Disability” means (i) termination of
Executive’s employment by the Company as a result of a
determination by the Board or the appropriate committee thereof
that Executive has been incapable of substantially fulfilling the
positions, duties, responsibilities and obligations set forth in
this Agreement on account of physical, mental or emotional
incapacity resulting from injury, sickness or disease for a period
of (A) at least four consecutive months, or (B) more than six
months in any twelve month period, or (ii) Executive’s termination
of employment on account of Disability as defined in The Hartford
Investment and Savings Plan, as may be amended from time to time.

“Termination Due to Retirement” means Executive’s termination of
employment on account of Executive’s Retirement as defined in The
Hartford Investment and Savings Plan, as may be amended from time
to time.

“Termination For Cause” means a termination of Executive’s
employment by the Company for any of the following reasons: (i)
Executive is convicted of or enters a plea of guilty or nolo
contendere to a felony, a crime of moral turpitude, dishonesty,
breach of trust or unethical business conduct, or any crime
involving the business of the Company or its affiliates; (ii) in
the performance of his duties hereunder or otherwise to the
detriment of the Company or its affiliates, Executive engages in
(A) willful misconduct, (B) willful or gross negligence, (C) fraud,
(D) misappropriation, (E) embezzlement, or (F) theft; (iii)
Executive willfully fails to adhere to the policies and practices
of the Company or devote substantially all of his business time and
effort to the affairs thereof, or disobeys the directions of the
Board to do either of the foregoing; (iv) Executive breaches this
Agreement in any material respect; (v) Executive is adjudicated in
any civil suit to have committed, or acknowledges in writing or in
any agreement or stipulation his commission, of any theft,
embezzlement, fraud or other intentional act of dishonesty
involving any other person; or (vi) Executive violates the Code of
Corporate Conduct of the Company. Executive shall be permitted to
respond and defend himself before the Board within 30 days after
delivery to Executive of written notification of any proposed
Termination For Cause that specifies in detail the reasons for such
termination. If the majority of the members of the Board
(excluding Executive) do not confirm that the Company had grounds
for a Termination For Cause within 30 days after Executive has had
his hearing before the Board, Executive shall have the option

9

 

of treating his employment as not having terminated or as having
been terminated in a Termination Without Cause.

“Termination Without Cause” means any involuntary termination of
Executive’s employment by the Company other than a Termination For
Cause, a Termination Due to Disability or a Termination Due to
Death.

“Vested Benefits” means amounts that are vested or that Executive
is otherwise entitled to receive, without the performance by
Executive of further services or the resolution of a contingency,
under the terms of or in accordance with any investment and savings
plan or retirement plan (including any plan providing retiree
medical benefits) of the Company of its affiliates, and any ERPs or
ESPs related thereto, and any deferred compensation or employee
stock purchase plan or similar plan or program of the Company of
its affiliates.

“Vested Benefit Enhancements” means (i) a cash amount equal to the
present value, calculated using a discount rate equal to the then
prevailing applicable Federal rate as determined under Section
1274(d) of the Internal Revenue Code of 1986, as amended (the
“Code”), of the additional retirement benefits that would have been
payable or available to Executive under any ERPs, based on (A) the
age and service Executive would have attained or completed had
Executive continued in the Company’s employ until the second
anniversary of the date of termination of the Employment Period,
and (B) where compensation is a relevant factor, his pensionable
compensation as of such date, such compensation to include, on the
same terms as apply to other executives, any Severance Payment made
to Executive and (ii) solely for purposes vesting in any benefits
under any ESPs, Executive shall be treated as having continued in
the Company’s employ until the second anniversary of the date of
termination of the Employment Period.

“Voluntary Termination” means any voluntary termination of
Executive’s Employment by Executive pursuant to this Section 5,
other than a Termination Due to Retirement or a Termination Due to
Disability by Executive.

“Welfare Benefits Continuation” means that until the second
anniversary of the date of termination of the Employment Period,
Executive and, if applicable, his dependents shall be entitled to
continue participation in the life and health insurance benefit
plans of the Company or its affiliates in which Executive and/or
such dependents were participating as of the date of termination of
the Employment Period, and such other welfare benefit plans thereof
in which the Company is required by law to permit the participation
of Executive and/or his dependents, (collectively, the “Welfare
Benefit Plans”). Such participation shall be on the same terms and
conditions (including the requirement that Executive pay any
premiums generally paid by an employee) as would apply if Executive
were still in the employ of the Company; provided that the
continued participation of Executive and/or his dependents in such
Welfare Benefit Plans

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shall cease on such earlier date as Executive may become eligible
for comparable welfare benefits provided by a subsequent employer.
To the extent that Welfare Benefits Continuation cannot be provided
under terms of the applicable plan, policy or program, the Company
shall provide a comparable benefit under another plan or from the
Company’s general assets.

	6.	 	Termination Following a Change of Control or Potential Change of Control.
	 
	 	 	This Section 6 shall apply (instead of Section 5) during the period
commencing upon a Change of Control and continuing until the third
anniversary thereof; provided that, in the event that Executive’s employment
is terminated by the Company in a Termination Without Cause after the
occurrence of a Potential Change of Control and a Change of Control occurs
within one year following the date of such termination, then solely for
purposes of this Agreement, Executive shall be deemed to have remained in
the Company’s employ until the occurrence of the Change of Control and
thereafter to have then been terminated by the Company in a Termination
Without Cause. As a result, Executive shall be entitled to receive the
excess of (i) the benefits payable in the event of a Termination Without
Cause under this Section 6, over (ii) the amount of any benefits payable to
Executive under Section 5.

	 	(a)	 	Early Termination of the Employment Period. Notwithstanding
Section 1(b) hereof, the Employment Period shall end upon the earliest
to occur of (i) a Termination For Cause, (ii) a Termination Without
Cause, (iii) a Voluntary Termination Within 180 Days, (iv) a Voluntary
Termination After 180 Days, (v) a Termination For Good Reason, (vi) a
Termination Due to Retirement, (vii) a Termination Due to Disability,
or (viii) a Termination Due to Death.
	 
	 	(b)	 	Notice of Termination. Communication of termination under
this
Section 6 shall be made to the other party by Notice of Termination in
the case of (i) a Termination For Cause, (ii) a Termination Without
Cause, (iii) a Voluntary Termination Within 180 Days, (iv) a Voluntary
Termination After 180 Days, or (v) a Termination For Good Reason.
	 
	 	(c)	 	Benefits Payable Upon Termination; Rules for Determining Reason for
Termination.

	 	(i)	 	Benefits Payable Upon Termination.

(A) Following the end of the Employment Period, Executive (or, in the
event of his death, his surviving spouse, if any, or if none, his
estate) shall be paid the type or types of compensation determined to
be payable in accordance with the following table, such payment to be
made in the form specified in such table and at the time established
pursuant to Section 7 hereof. Capitalized terms used in such table
(and otherwise in this Section 6) that are defined in Section 5, and
not specifically defined in Section 6(d) hereof, shall have the
meanings ascribed thereto under Section 5. Where such a capitalized
term is defined solely in

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Section 6(d), or in both Section 5 and Section 6(d), such term shall
have the meaning ascribed to it in Section 6(d).

(B)The Company’s obligation to make the
payments provided for in this Section 6 and otherwise to perform
its obligations under this Section 6 shall not be affected by any
set-off, counterclaim, recoupment, defense or other claim, right or
action which the Company may have against Executive or others. In
no event shall Executive be obligated to seek other employment or
take any other action by way of mitigation of the amounts payable
to Executive under any of the provisions of this Section 6 and such
amounts shall not be reduced whether or not Executive obtains other
employment.

	 	(ii)	 	Rules for Determining Reason for Termination.

(A) No Termination Without Cause, Voluntary Termination
Within 180 Days or Termination For Good Reason shall be treated as
a Termination Due to Retirement or a Termination Due to Disability
for purposes of any Pro Rata Target Bonus, Severance Payment,
Equity Awards or Vested Benefits Enhancement under this Section 6,
notwithstanding the fact that, either on, before or after the Date
of Termination with respect thereto, (I) Executive was eligible for
Retirement as defined in the Savings Plan, (II) Executive requested
to be treated as a retiree for purposes of the Savings Plan or any
other plan or program of the Company or its affiliates, or (III)
Executive or the Company could have terminated Executive’s
employment in a Termination Due to Disability hereunder.

(B) No Termination Due to Retirement shall be treated as a
Voluntary Termination After 180 Days for purposes of this Section
6, notwithstanding the fact that the Date of Termination for such
Termination Due to Retirement may occur within 180 days following a
Change of Control.

(C) Notwithstanding any provision in this Agreement to the
contrary, in the event of a Change of Control as described in
clause (iii) or clause (iv) of the definition of the term Change of
Control in Section 6(d) of this Agreement, if the employment of
Executive involuntarily terminates on or after the date of a
shareholder approval described in either of such clauses but before
the date of a consummation described in either of such clauses, the
date of termination of Executive’s employment shall be deemed for
purposes of this Agreement to be the day following the date of the
applicable consummation.

12

 

BENFITS PAYABLE – CHANGE OF CONTROL

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Accrued	 	Pro Rata	 	Severance	 	 	 	 	 	Vested Benefits	 	Welfare Benefits
	BENEFIT
	 	Salary
	 	Target Bonus
	 	Payment
	 	Equity Awards
	 	Vested Benefits
	 	Enhancement
	 	Continuation

	FORM
OF

 PAYMENT

	 	Lump

 Sum
	 	Lump

 Sum
	 	Lump

 Sum
	 	Determined

 Under

the Applicable 

Plan
	 	Determined

 Under

the Applicable

 Plan
	 	Lump

 Sum
	 	Determined

 Under

the Applicable 

Plan

	Termination For Cause

	 	Payable
	 	Not Payable
	 	Not Payable
	 	Determined Under

the Applicable Plan
	 	Determined Under

the Applicable Plan
	 	Not Payable
	 	Not Available
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Termination Without

Cause

	 	Payable
	 	Payable
	 	Payable
	 	Determined Under

the Applicable Plan
	 	Determined Under

the Applicable Plan
	 	Payable
	 	Available
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Voluntary

Termination Within

180 Days

	 	Payable
	 	Payable
	 	Payable
	 	Determined Under

the Applicable Plan
	 	Determined Under

the Applicable Plan
	 	Payable
	 	Available
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Voluntary

Termination After

180 Days

	 	Payable
	 	Not Payable
	 	Not Payable
	 	Determined Under

the Applicable Plan
	 	Determined Under

the Applicable Plan
	 	Not Payable
	 	Not Available
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Termination For Good

Reason

	 	Payable
	 	Payable
	 	Payable
	 	Determined Under

the Applicable Plan
	 	Determined Under

the Applicable Plan
	 	Payable
	 	Available
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Termination Due to
Retirement

	 	Payable
	 	Determined Under

the Applicable Plan
	 	Not Payable
	 	Determined Under

the Applicable Plan
	 	Determined Under

the Applicable Plan
	 	Not Payable
	 	Available
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Termination Due to
Disability

	 	Payable
	 	Payable
	 	Not Payable
	 	Determined Under

the Applicable Plan
	 	Determined Under

the Applicable Plan
	 	Not Payable
	 	Available
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Termination Due to
Death

	 	Payable
	 	Payable
	 	Not Payable
	 	Determined Under

the Applicable Plan
	 	Determined Under

the Applicable Plan
	 	Not Payable
	 	Not Available

13

 

	(d)	 	Definitions.
	 
	 	 	“Beneficial Owner” means any Person who, directly or indirectly, has the
right to vote or dispose of or has “beneficial ownership” (within the
meaning of Rule 13d-3 under the Securities and Exchange Act of 1934, as
amended (the “Act”)) of any securities of a company, including any such
right pursuant to any agreement, arrangement or understanding (whether or
not in writing), provided that: (i) a Person shall not be deemed the
Beneficial Owner of any security as a result of an agreement, arrangement or
understanding to vote such security (A) arising solely from a revocable
proxy or consent given in response to a public proxy or consent solicitation
made pursuant to, and in accordance with, the Act and the applicable rules
and regulations thereunder, or (B) made in connection with, or to otherwise
participate in, a proxy or consent solicitation made, or to be made,
pursuant to, and in accordance with, the applicable provisions of the Act
and the applicable rules and regulations thereunder, in either case
described in clause (A) or (B) above, whether or not such agreement,
arrangement or understanding is also then reportable to such Person on
Schedule 13D under the Act (or any comparable or successor report); and (ii)
a Person engaged in business as an underwriter of securities shall not be
deemed to be the Beneficial Owner of any security acquired through such
Person’s participation in good faith in a firm commitment underwriting until
the expiration of forty days after the date of such acquisition.
	 
	 	 	“Change of Control” means:

(i) a report on Schedule 13D shall be filed with the Securities and
Exchange Commission pursuant to Section 13(d) of the Act disclosing
that any Person, other than the Company or a subsidiary of the Company
or any employee benefit plan sponsored by the Company or a subsidiary
of the Company is the Beneficial Owner of twenty percent or more of
the outstanding stock of the Company entitled to vote in the election
of directors of the Company;

(ii) any Person, other than the Company or a subsidiary of the
Company or any employee benefit plan sponsored by the Company or a
subsidiary of the Company shall purchase shares pursuant to a tender
offer or exchange offer to acquire any stock of the Company (or
securities convertible into stock) entitled to vote in the election
of directors of the Company for cash, securities or any other
consideration, provided that after consummation of the offer, the
Person in question is the Beneficial Owner of fifteen percent or more
of the outstanding stock of the Company entitled to vote in the
election of directors of the Company (calculated as provided in
paragraph (d) of Rule 13d-3 under the Act in the case of rights to
acquire stock);

(iii) any merger, consolidation, recapitalization or reorganization of the
Company approved by the stockholders of the Company shall be consummated, other
than any such transaction immediately following which the persons who were the
Beneficial Owners of

14

 

the outstanding securities of the Company entitled to vote in the election of
directors of the Company immediately prior to such transaction are the
Beneficial Owners of at least 55% of the total voting power represented by the
securities of the entity surviving such transaction entitled to vote in the
election of directors of such entity (or the ultimate parent of such entity) in
substantially the same relative proportions as their ownership of the
securities of the Company entitled to vote in the election of directors of the
Company immediately prior to such transaction; provided that, such continuity
of ownership (and preservation of relative voting power) shall be deemed to be
satisfied if the failure to meet such threshold (or to preserve such relative
voting power) is due soley to the acquisition of voting securities by an
employee benefit plan of the Company, such surviving entity or any subsidiary
of such surviving entity;

(iv) any sale, lease, exchange or other transfer (in one transaction
or a series of related transactions) of all or substantially all the
assets of the Company approved by the stockholders of the Company
shall be consummated; or

(v) within any 24 month period, the persons who were directors of the
Company immediately before the beginning of such period (the
“Incumbent Directors”) shall cease (for any reason other than death)
to constitute at least a majority of the Board or the board of
directors of any successor to the Company, provided that any director
who was not a director at the beginning of such a period shall be
deemed to be an Incumbent Director if such director (A) was elected
to the Board by, or on the recommendation of or with the approval of,
at least two-thirds of the directors who then qualified as Incumbent
Directors either actually or by prior operation of this clause (v),
and (B) was not designated by a person who has entered into an
agreement with the Company to effect a transaction described in
clause (iii) or (iv) of this definition of the term Change of Control
in Section 6(d) of this Agreement.

"Date of Termination” means (i) in the case of a termination of the
Employment Period for which a Notice of Termination is required, the date of
receipt of such Notice of Termination or, if later, the date specified
therein, as the case may be, or (ii) in all other cases, the actual date on
which Executive’s employment terminates during the Employment Period.

“Not Payable” means that a particular benefit shall not be paid or otherwise
provided to Executive.

“Not of Termination” means (i) in the case of a Termination For Cause, a
written notice given by the Company to Executive, within 30 calendar days of
the Company’s having actual knowledge of the events giving rise to such
termination, (ii) in the case of a Termination Without Cause, a written
notice given by the Company to Executive at least 30 calendar days before
the effective date of such Termination Without Cause, (iii) in the case of a
Voluntary Termination Within 180 Days or a Voluntary Termination After 180
Days, a written notice given by Executive to the Company at least 30
calendar days before the effective date of such termination, and (iv) in the

15

 

case of a Termination For Good Reason, a written notice given by Executive
to the Company within 180 days of Executive’s having actual knowledge of the
events giving rise to such Termination For Good Reason, and which (A)
indicates the specific termination provision in this Agreement relied upon,
(B) sets forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of the Executive’s employment under the
provision so indicated, and (C) if the termination date is other than the
date of receipt of such notice, specifies the termination date of this
Agreement (which date shall not be more than 15 days after the giving of
such notice). The failure by Executive to set forth in such Notice of
Termination any fact or circumstance that contributes to a showing of Good
Reason shall not waive any right of Executive hereunder or preclude
Executive from asserting such fact or circumstance in enforcing his rights
hereunder.

“Payable” means that a particular benefit shall be paid to Executive in the
amount, at the time, and in the form specified herein.

“Person” has the meaning ascribed to such term in Section 3(a)(9) of the
Act, as supplemented by Section 13(d)(3) of the Act; provided, however, that
Person shall not include (i) the Company, any subsidiary of the Company or
any other Person controlled by the Company, (ii) any trustee or other
fiduciary holding securities under any employee benefit of the Company or of
any subsidiary of the Company, or (iii) a corporation owned, directly or
indirectly, by the stockholders of the Company in substantially the same
proportions as their ownership of securities of the Company.

“Potential Change of Control” means:

(i) a Person shall commence a tender offer, which if successfully
consummated, would result in such Person being the Beneficial Owner of at
least 15% of the stock of the Company entitled to vote in the election of
directors of the Company;

(ii) the Company shall enter into an agreement the consummation of
which shall constitute a Change of Control of the
Company;

(iii) solicitation of proxies for the election of directors of the
Company by anyone other than the Company, which, if such directors were
elected, would result in the occurrence of a Change of Control described
in Section 6(d) of this Agreement; or

(iv) any other events shall occur which is deemed to be a Potential
Change of Control by the Board or the appropriate Committee thereof.

“Severance Payment” means a cash amount equal to three times the sum of (i)
Executive’s Base Salary at the rate in effect as of the date on which the
Employment Period terminates, and (ii) Executive’s Target Bonus for such
year.

16

 

“Termination For Cause” means the Company’s termination of Executive’s
employment due to (i) Executive’s conviction of a felony; (ii) an act or
acts of extreme dishonesty or gross misconduct on Executive’s part which
result or are intended to result in material damage to the Company’s
business or reputation; or (iii) repeated material violations by Executive
of his obligations under Section 2 of this Agreement, which violations are
demonstrably willful and deliberate on Executive’s part and which result in
material damage to the Company’s business or reputation. Executive shall be
permitted to respond and defend himself before the Board within 30 days
after delivery to Executive of written notification of any proposed
Termination for Cause which specifies in detail the reasons for such
termination. If the majority of the members of the Board (excluding
Executive) do not confirm that the Company had grounds for a Termination For
Cause within 30 days after Executive has had his hearing before the Board,
Executive shall have the option of treating his employment as not having
terminated or as having been terminated pursuant to a Termination Without
Cause.

“Termination For Good Reason” means the occurrence of any of the following
after the occurrence of a Potential Change of Control or a Change of
Control:

(i) (A) the assignment to Executive of any duties inconsistent in any
material adverse respect with Executive’s position, duties, authority or
responsibilities as contemplated by Section 2 of this Agreement, or (B)
any other material adverse change in such position, including titles,
authority or responsibilities;

(ii) any failure by the Company to comply with any of the provisions
of Sections 3 and 4 of this Agreement at a level of least equal to that
in effect immediately preceding the Change of Control or a Potential
Change of Control, other than an insubstantial or inadvertent failure
remedied by the Company promptly after receipt of notice thereof given
by Executive;

(iii) the Company’s requiring Executive to be based at any office or
location more than 25 miles from the location at which he performed his
services specified under Section 2 hereof immediately prior to the Change
of Control or a Potential Change of Control, except for travel reasonably
required in the performance of Executive’s responsibilities;

(iv) any failure by the Company to obtain the assumption and agreement to
perform this Agreement by a successor as contemplated by Section 10(d)
hereof; or

(v) any attempt by the Company to terminate the Executive’s employment in
a Termination For Cause that is determined by the Board pursuant to
Section 5 hereof, or in a proceeding pursuant to Section 9 or Section 10
hereof, not to constitute a Termination For Cause.

17

 

Notwithstanding the foregoing, a termination of Executive’s employment shall
not be treated as a Termination For Good Reason (I) if Executive shall have
consented in writing to the occurrence of the event giving rise to the claim
of Termination For Good Reason, or (II) if Executive shall have delivered a
Notice of Termination to the Company, and the facts and circumstances
specified therein as provided a basis for such Termination For Good Reason
are cured by the Company within 10 days of its receipt of such Notice of
Termination.

“Vested Benefits Enhancement” means (i) a cash amount equal to the
present value, calculated using a discount rate equal to the then
prevailing applicable Federal rate as determined under Section 1274(d) of
the Internal Revenue Code of 1986, as amended (the “Code”), of the
additional retirement benefits that would have been payable or available
to Executive under any ERPs, based on (A) the age and service Executive
would have attained or completed had Executive continued in the Company’s
employ until the third anniversary of the occurrence of the Change of
Control, and (B) where compensation is a relevant factor, his pensionable
compensation as of the Date of Termination, such compensation to include,
on the same terms as apply to the other executives, any Severance Payment
made to Executive, (ii) solely for purposes of vesting in any benefits
under any ESPs, Executive shall be treated as having continued in the
Company’s employ until the third anniversary of the occurrence of such
Change of Control, and (iii) solely for purposes of determining
eligibility for retiree medical benefits under any retirement plan or any
retiree welfare benefit plan, policy or program of the Company or its
affiliates, and any ERPs related thereto, Executive shall be treated as
having continued in the Company’s employ until the third anniversary of
the occurrence of such Change of Control and to have retired on the last
day of such period.

“Voluntary Termination Within 180 Days” means a termination of employment
by Executive for any reason within the first 180 days following a Change
of Control, and “Voluntary Termination After 180 Days” means a
termination of employment by Executive other than a Termination For Good
Reason, a Termination Due to Disability by Executive, or a Termination
Due to Death within the remaining 2 years and 6 months following a Change
of Control.

“Welfare Benefits Continuation” shall have the same meaning as that
described in Section 5 hereof, except that the entitlement of Executive
and/or his dependents to participation in the Welfare Benefit Plans shall
continue until the third anniversary of the Date of Termination.

(e) Out-Placement Services. If the Employment Period terminated because of a
Termination Without Cause or a Termination For Good Reason, Executive shall be
entitled to out-placement services, provided by the Company or its designee at
the Company’s expense, for twelve months following the Date of Termination, or
such lesser period as the Executive may require such services.

18

 

(f) Certain Further Payments by Company.

(i) Tax Reimbursement Payment. In the event that any amount or
benefit paid or distributed to Executive pursuant to this Agreement,
taken together with any amounts or benefits otherwise paid or distributed
to Executive by the Company or any affiliate (collectively, the “Covered
Payments”), are or become subject to the tax (the “Excise Tax”) imposed
under Section 4999 of the Code, or any similar tax that may hereafter be
imposed, the Company shall pay to the Executive at the time specified in
this Section an additional amount (the “Tax Reimbursement Payment”) such
that the net amount retained by the Executive with respect to such
Covered Payments, after deduction of any Excise Tax on the Covered
Payments and any Federal, state and local income tax and other tax on the
Tax Reimbursement Payment provided for by this Section, but before
deduction for any Federal, state or local income or employment tax
withholding on such Covered Payments, shall be equal to the amount of the
Covered Payments.

(ii) Applicable Rules. For purposes of determining whether any of the
Covered Payments will be subject to the Excise Tax and the amount of such
Excise Tax,

(A) such Covered Payments will be treated as “parachute payments”
within the meaning of Section 280G of the Code, and all “parachute
payments” in excess of the “base amount” (as defined under Section
280G(b)(3) of the Code) shall be treated as subject to the Excise
Tax, unless, and except to the extent that, in the good faith
judgment of the Company’s independent certified public accountants
appointed prior to the earlier of: (I) the date on which a
Potential Change of Control occurs, or (II) the date on which a
Change of Control occurs, or tax counsel selected by such
accountants (the “Accountants”), the Company has a reasonable basis
to conclude that such Covered Payments (in whole or in part) either
do not constitute “parachute payments” or represent reasonable
compensation for personal services actually rendered (within the
meaning of Section 280G(b)(4)(B) of the Code) in excess of the “base
amount,” or such “parachute payments” are otherwise not subject to
such Excise Tax, and

(B) the value of any non-cash benefits or any deferred payment or
benefit shall be determined by the Accountants in accordance with
the principles of Section 280G of the Code.

(iii) Additional Rules. For purposes of determining the amount of the
Tax Reimbursement Payment, the Executive shall be deemed to pay: (A)
Federal income taxes at the highest applicable marginal rate of Federal
income taxation for the calendar year in which the Tax Reimbursement
Payment is to be made, and (B) any applicable state and local income and
other taxes at the highest applicable marginal rate of taxation for the
calendar year in which the Tax Reimbursement Payment is to be made, net
of the maximum reduction in Federal

19

 

incomes taxes which could be obtained from the deduction of such state
and local taxes if paid in such year.

(iv) Repayment or Additional Payment in Certain Circumstances.

(A) Repayment. In the event that the Excise Tax is subsequently
determined by the Accountants or pursuant to any proceeding or
negotiations with the Internal Revenue Service to be less than the
amount taken into account hereunder in calculating the Tax
Reimbursement Payment made, Executive shall repay to the Company,
at the time that the amount of such reduction in the Excise Tax is
finally determined, the portion of such prior Tax Reimbursement
Payment that would not have been paid if such lesser Excise Tax
had been applied in initially calculating such Tax Reimbursement
Payment. Notwithstanding the foregoing, in the event any portion
of the Tax Reimbursement Payment to be repaid to the Company has
been paid to any Federal, state or local tax authority, repayment
thereof shall not be required until actual refund of credit of
such portion has been made to Executive by the applicable tax
authority. Executive and the Company shall mutually agree upon
the course of action to be pursued (and the method of allocating
the expenses thereof) if Executive’s good faith claim for refund
or credit is denied.

(B) Additional Tax Reimbursement Payment. In the event that the
Excise Tax is later determined by the Accountants or pursuant to
any proceeding or negotiations with the Internal Revenue Service
to exceed the amount taken into account hereunder at the time the
Tax Reimbursement Payment is made (including, but not limited to,
by reason of any payment the existence or amount of which cannot
be determined at the time of the Tax Reimbursement Payment), the
Company shall make an additional Tax Reimbursement Payment in
respect of such excess (plus any interest or penalty payable with
respect to such excess) at the time that the amount of such excess
is finally determined.

(v) Timing for Tax Reimbursement Payment. The Tax Reimbursement Payment
(or portion thereof) provided for in this Section 6 shall be paid to
Executive not later than 10 business days following the payment of the
Covered Payments; provided, however, that if the amount of such Tax
Reimbursement Payment (or portion thereof) cannot be finally determined
on or before the date on which payment is due, the Company shall pay to
Executive by such date an amount estimated in good faith by the
Accountants to be the minimum amount of such Tax Reimbursement Payment
and shall pay the remainder of such Tax Reimbursement Payment (together
with interest at the rate provided in Section 1274(b)(2)(B) of the Code)
as soon as the amount thereof can be determined, but in no event later
than 45 calendar days after payment of the related Covered Payment. To
the extent that the amount of the estimated Tax Reimbursement Payment
exceeds the amount subsequently determined to have been due,

20

 

Executive shall repay such excess to the Company on the fifth business
day after written demand by the Company for payment.

7. Timing of Payments.

Accrued Salary, Severance Payments and Vested Benefits Enhancements shall be
paid no later than 10 days following the termination of the Employment Period.
Pro-Rata Target Bonus shall be paid as follows: (a) if the Employment Period
terminates in the first, second or third calendar quarter of any particular
calendar year, then the Pro-Rata Target Bonus shall be paid no later than 10
days following the termination of the Employment Period, or (b) if the
Employment Period terminates in the fourth calendar quarter of any particular
calendar year, then the Pro-Rata Target Bonus shall be paid no later than the
same time as similar awards are paid to other executives participating in the
plans or programs under which the awards are paid, but in no event later than
March 31 of the calendar year following the end of such fourth calendar
quarter. Vested Benefits and Equity Awards shall be paid no later than the
time for payment Determined Under the Applicable Plan except as otherwise
expressly superseded or modified by this Agreement. Tax Reimbursement Payments
shall be paid at the time specified in Section 6 hereof. Notwithstanding the
foregoing, solely for purposes of amounts payable pursuant to Section 5 hereof,
if any amount payable to Executive pursuant to Section 5 would be nondeductible
by the Company under Section 162(m) of the Code if paid in the year of
Executive’s termination, the Company shall have the option of paying such
nondeductible amount, with interest at the one-year treasury bill rate as in
effect on the date of such termination as reported in the Wall Street Journal,
on the first day of the second calendar quarter in the year following such
termination.

8. Full Discharge of Company Obligations.

Except in the case of amounts payable to Executive in the event of a
termination of employment following a Potential Change of Control as described
in the first paragraph of Section 6, and except as expressly provided in the
last sentence of this Section 8, the amounts payable to Executive pursuant to
Section 5 following termination of his employment (including amounts payable
with respect to Vested Benefits) shall be in full and complete satisfaction of
Executive’s rights under Section 5 of this Agreement and any other claims he
may have in respect of his employment by the Company or any of its affiliates.
Such amounts shall constitute liquidated damages with respect to any and all
such rights and claims and, upon Executive’s receipt of such amounts, the
Company shall be released and discharged from any and all liability to
Executive in connection with Section 5 of this Agreement or otherwise in
connection with Executive’s employment with the Company and its affiliates. In
no event shall Executive be obligated to seek other employment or take any
action by way of mitigation of the amounts payable to Executive under any of
the provisions of this Agreement and such amounts shall not be reduced whether
or not Executive obtains other employment. Nothing in this Section 8 shall be
construed to release the Company from its obligation to indemnify Executive as
provided in Section 4(e) hereof.

21

 

9. Noncompetition, Confidentiality and Other Covenants.

By and in consideration of the compensation and benefits to be provided by the
Company hereunder, including the severance arrangements set forth herein,
Executive agrees to the following:

(a) Noncompetition. During the Employment Period and until the
earlier
of: (i) the last day of the one year period following any Voluntary
Termination of the Employment Period by Executive pursuant to Section 5
hereof, or (ii) the date a Change of Control occurs (the
“Restriction
Period”), Executive shall not become associated with any entity, whether
as a principal, partner, employee, agent, consultant, shareholder (other
than as a holder, or a member of a group which is a holder, of not in
excess of 1% of the outstanding voting shares of any publicly traded
company) or in any other relationship or capacity, paid or unpaid, that
is actively engaged in any geographic area in any business which is in
competition with the business of the Company. Notwithstanding anything
herein to the contrary, the terms of this Section 9(a) shall not apply in
the event of any termination of employment following a Change of Control
as provided for in Section 6 of this Agreement, including any termination
following a potential Change of Control as described in the first
paragraph of Section 6.

(b) Confidentiality. Without the prior written consent of the
Company, except to the extent required by an order of a court having competent
jurisdiction or under subpoena from an appropriate government agency,
Executive shall not disclose to any third person, or permit the use of
for the benefit of any person or any entity other than The Company or its
affiliates, any trade secrets, customer lists, information regarding
product development, marketing plans, sales plans, management
organization information (including data and other information relating
to members of the Board and management), operating policies or manuals,
business plans, financial records, or other financial, organizational,
commercial, business, sales, marketing, technical, product or employee
information relating to the Company or its affiliates or information
designated as confidential, proprietary, and/or a trade secret, or any
other information relating to the Company or its affiliates that
Executive knows from the circumstances, in good faith and good
conscience, should be treated as confidential, or any information that
the Company or its affiliates may receive belonging to customers, agents
or others who do business with the Company or its affiliates, except to
the extent that any such information previously has been disclosed to the
public by the Company or is in the public domain (other than by reason of
Executive’s violation of this Section 9(b)).

(c) Non-Solicitation of Employees. During the Employment Period
and

22

 

until the earlier of: (i) the last day of the one year period following
any Voluntary Termination of the Employment Period by Executive pursuant
to Section 5 hereof, (ii) the first anniversary of the date this
Agreement expires by reason of either party delivering to the other a
notice of non-renewal pursuant to Section 1(b) hereof, or (iii) the date
a Change of Control occurs, Executive shall not directly or indirectly
solicit, encourage or induce any employee of the Company or its
affiliates to terminate employment with such entity, and shall not
directly or indirectly, either individually or as owner, agent, employee,
consultant or otherwise, employ or offer employment to any person who is
or was employed by the Company or an affiliate thereof unless such person
shall have ceased to be employed by such entity for a period of at least
six months. Notwithstanding anything herein to the contrary, the terms
of this Section 9(c) shall not apply in the event of any termination of
employment following a Change of Control as provided for in Section 6 of
this Agreement, including any termination following a potential Change of
Control as described in the first paragraph of Section 6.

(d) Non-Solicitation of Clients and Customers. During the
Employment
Period and until the earlier of (i) the last day of the one year period
following any Voluntary Termination of the Employment Period by Executive
pursuant to Section 5 hereof, (ii) the first anniversary of the date this
Agreement expires by reason of either party delivering to the other a
notice of non-renewal pursuant to Section 1(b) hereof, or (iii) the date
a Change of Control occurs, Executive shall not directly or indirectly
solicit, encourage or induce any person or entity which is (or, at the
date of Executive’s termination of employment, or at the date of the
expiration of this Agreement, or at the date a Change of Control occurs,
as applicable, was) a client or customer of the Company or any of its
affiliates to terminate or reduce in any material way its relationship
with the Company or any such affiliate, or otherwise attempt to divert
the business of any such client or customer from the Company or any of
its affiliates. Notwithstanding anything herein to the contrary, the
terms of this Section 9(d) shall not apply in the event of any
termination of employment following a Change of Control as provided for
in Section 6 of this Agreement, including any termination following a
potential Change of Control as described in the first paragraph of
Section 6.

(e) Company Property. Except as expressly provided herein,
promptly
following any termination of the Employment Period, Executive shall
return to the Company all property of the Company, and all copies thereof
in Executive’s possession or under his control.

(f) Injunctive Relief and Other Remedies with Respect to
Covenants.
Executive acknowledges and agrees that the covenants and obligations of
Executive with respect to noncompetition, confidentiality,
nonsolicitation of employees, nonsolicitation of clients and customers,
and Company property relate to special, unique and extraordinary matters
and that a violation of any of the terms of such covenants and
obligations will cause the Company irreparable injury for which adequate
remedies are not available at law. Therefore, Executive

23

 

agrees that the Company (i) shall be entitled to an injunction,
restraining order or such other equitable relief (without the requirement
to post bond) restraining Executive from committing any violation of the
covenants and obligations contained in this Section 9, and (ii) shall
have no further obligation to make any payments to Executive hereunder
following any material violation of the covenants and obligations
contained in this Section 9. These remedies are cumulative and are in
addition to any other rights and remedies the Company may have at law or
in equity. In connection with the foregoing provisions of this Section
9, Executive represents that his economic means and circumstances are
such that such provisions will not prevent him from providing for himself
and his family on a basis satisfactory to him. Notwithstanding the
foregoing, in no event shall an asserted violation of the provisions of
this Section constitute a basis for deferring or withholding any amounts
otherwise payable to the Executive under this Agreement following a
Change of Control.

10. Miscellaneous.

(a) Survival. All of the provisions of Section 5 (relating to
termination of the Employment Period prior to a Change of Control), 6 (relating to
termination of the Employment Period following a Change of Control or a
Potential Change of Control), 9 (relating to noncompetition,
confidentiality, nonsolicitation of employees, nonsolicitation of clients
and customers, and Company property), 10(b) (relating to arbitration),
10(c) (relating to legal fees and expenses) and 10(n) (relating to
governing law) of this Agreement shall survive the termination of this
Agreement.

(b) Arbitration. Except as provided in Section 9, any dispute or
controversy arising under or in connection with this Agreement shall be
resolved by binding arbitration. Such arbitration shall be held in the
city of Hartford, Connecticut and except to the extent inconsistent with
this Agreement, shall be conducted in accordance with the Commercial
Arbitration Rules of the American Arbitration Association in effect at
the time of the arbitration, and otherwise in accordance with the
principles that would be applied by a court of law or equity. The
arbitrator shall be acceptable to both the Company and Executive. If the
parties cannot agree on an acceptable arbitrator, the dispute or
controversy shall be heard by a panel of three arbitrators; one appointed
by each of the parties and the third appointed by the other two
arbitrators. The Company and Executive further agree that they will
abide by and perform any award or awards rendered by the arbitrators and
that a judgment may be entered on any award or awards rendered by any
state or federal court having jurisdiction over the Company or Executive
or any of their respective property.

(c) Legal Fees and Expenses. In any contest (whether initiated
by
Executive or by the Company) as to the validity, enforceability or
interpretation of any provision of this Agreement, the Company shall pay
Executive’s legal expenses (or cause such expenses to be paid) including,
without limitation, his

24

 

reasonable attorney’s fees, on a quarterly basis, upon presentation of
proof of such expenses in a form acceptable to the Company, provided that
Executive shall reimburse the Company for such amounts, plus simple
interest thereon at a 90-day United States Treasury Bill rate as in
effect from time to time, compounded annually, if Executive shall not
prevail, in whole or in part, as to any material issue as to the
validity, enforceability or interpretation of any provision of this
Agreement.

(d) Successors; Binding Effect. This Agreement shall inure to
the benefit of and be binding upon the Company and its successors. The
Company shall require any successor to all or substantially all of the
business and/or assets of the Company, whether direct or indirect, by
purchase, merger, consolidation, acquisition of stock, or otherwise, by
an agreement in form and substance satisfactory to Executive, expressly
to assume and agree to perform this Agreement in the same manner and to
the same extent as the Company would be required to perform the Agreement
if no such succession had taken place. This Agreement is personal to the
Executive and, without the prior written consent of the Company, shall
not be assignable by Executive otherwise than by will or the law of
descent and distribution. This Agreement shall inure to the benefit of
and be enforceable by Executive’s legal representatives.

(e) Assignment. Except as provided in Section 10(d), neither
this Agreement nor any of the rights or obligations hereunder shall be
assigned or delegated by any party hereto without the prior written
consent of the other party.

(f) Entire Agreement. This Agreement constitutes the entire
agreement between the parties hereto with respect to the matters referred to
herein. This Agreement supersedes and replaces any prior employment or
severance agreement or arrangement between the Company and Executive. No
other agreement relating to the terms of Executive’s employment by the
Company, oral or otherwise, shall be binding between the parties unless
it is in writing and signed by the party against whom enforcement is
sought. There are no promises, representations, inducements or
statements between the parties other than those that are expressly
contained herein. Executive acknowledges that he is entering into this
Agreement of his own free will and accord, and with no duress, and that
he has read this Agreement and that he understands it and its legal
consequences.

(g) Severability; Reformation. In the event that one or more of
the provisions of this Agreement shall become invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability
of the remaining provisions contained herein shall not be affected
thereby. In the event of a determination that any of the provisions of
Section 9(a), Section 9(b), Section 9(c), or Section 9(d) are not
enforceable in accordance with their terms, Executive and the Company
agree that such Section shall be reformed to make such Section
enforceable in a manner that provides the Company the maximum rights
permitted at law.

25

 

(h) Waiver. Waiver by any party hereto of any breach or default
by the other party of any of the terms of this Agreement shall not operate as a
waiver of any other breach or default, whether similar to or different
from the breach or default waived. No waiver of any provision of this
Agreement shall be implied from any course of dealing between the parties
hereto or from any failure by either party to assert its or his rights
hereunder on any occasion or series of occasions.

(i) Notices. Any notice required or desired to be delivered
under this Agreement shall be in writing and shall be delivered
personally, by courier service, by registered mail, return receipt
requested, or by telecopy and shall be effective upon actual receipt
by the party to which such notice shall be directed, and shall be
addressed as follows (or to such other address as the party entitled
to notice shall hereafter designate in accordance with the terms
hereof):

	 	 	 	 	 
	

	 	If to Company:
	 	The Hartford Financial Services Group, Inc.
	

	 	 	 	Law Department, HO-1-09
	

	 	 	 	Hartford Plaza
	

	 	 	 	Hartford, CT 06115
	

	 	 	 	Attention: Corporate Secretary
	 
	 	 	 	 
	

	 	with a copy to:
	 	Debevoise & Plimpton
	

	 	 	 	875 Third Avenue
	

	 	 	 	New York, NY 10022
	

	 	 	 	Attn: Lawrence K. Cagney, Esq.
	 
	 	 	 	 
	

	 	If to Executive:
	 	The home address of Executive
	

	 	 	 	shown on the records of the Company

(j) Amendments. This Agreement may not be altered, modified or
amended except by a written instrument signed by each of the parties
hereto.

(k) Headings. Headings to provisions of this Agreement are for
the
convenience of the parties only and are not intended to be part of or to
affect the meaning or interpretation hereof.

(l) Counterparts. This Agreement may be executed in
counterparts,
each of which shall be deemed an original but all of which together shall
constitute one and the same instrument.

(m) Withholding. Any payments provided for herein shall be
reduced by
any amounts required to be withheld by the Company from time to time
under applicable Federal, State or local income or employment tax laws or
similar statutes or other provisions of law then in effect.

26

 

(n) Governing Law. This Agreement shall be governed by the laws
of the State of Connecticut, without reference to principles of conflicts or
choice of law under which the law of any other jurisdiction would apply.

27FORM OF KEY EXECUTIVE EMPLOYMENT AGREEMENT

 

Exhibit 10.07

KEY EXECUTIVE EMPLOYMENT PROTECTION AGREEMENT

     THIS AGREEMENT, dated as of [date], by and between The Hartford Financial
Services Group, Inc., a Delaware corporation (the “Company”), and [name]
(“Executive”).

W I T N E S S E T H :

     WHEREAS, the Company and/or one or more subsidiaries thereof (the
“Subsidiaries”) have employed Executive in an officer position and have
determined that Executive holds an important position with the Company;

     WHEREAS, the Company believes that, in the event it is confronted with a
situation that could result in a change in ownership or control of the Company,
continuity of management will be essential to its ability to evaluate and
respond to such situation in the best interests of shareholders;

     WHEREAS, the Company understands that any such situation will present
significant concerns for Executive with respect to Executive’s financial and
job security;

     WHEREAS, the Company desires to assure itself of Executive’s services
during the period in which it is confronting such a situation, and to provide
Executive with certain financial assurances to enable Executive to perform the
responsibilities of Executive’s position without undue distraction and to
exercise judgment without bias due to Executive’s personal circumstances; and

     WHEREAS, to achieve these objectives, the Company and Executive desire to
enter into an agreement providing the Company and Executive with certain rights
and obligations upon the occurrence of a Change of Control or Potential Change
of Control (as defined in Section 2 hereof).

          NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, it is hereby agreed by and between the Company and Executive
as follows:

1

 

1. Operation of Agreement.

(a) Effective Date. The effective date of this Agreement (the
“Effective Date”) shall be the earlier of: (i) the date on which a
Potential Change of Control occurs, or (ii) the date on which a Change of
Control occurs; provided that if Executive is not actively employed by
the Company on the Effective Date, this Agreement shall be void and
without effect.

(b) Termination Following a Potential Change of Control. Consonant with
Section 1(a), in the event that Executive’s employment is terminated by
the Company or the Subsidiaries in a Termination Without Cause or is
terminated by Executive in a Termination For Good Reason (as defined
herein) after the occurrence of a Potential Change of Control, and a
Change of Control occurs within one year following the date of such
Termination Without Cause or Termination For Good Reason, then solely for
purposes of this Agreement, Executive shall be deemed to have remained in
the employ of the Company and/or the Subsidiaries until the occurrence of
such Change of Control and to have then been terminated by the Company
and/or the Subsidiaries in a Termination Without Cause, and Executive
shall be entitled to receive the benefits payable under Section 7 of this
Agreement, but reduced by any amounts paid to Executive by the Company
and/or the Subsidiaries on account of the termination of Executive’s
employment prior to the occurrence of such Change of Control.

2. Certain Applicable Definitions.

	(a)	 	Beneficial Owner. For purposes of this Agreement,
“Beneficial Owner” means any Person who, directly or indirectly, has
the right to vote or dispose of or has “beneficial ownership”
(within the meaning of Rule 13d-3 under the Securities and Exchange
Act of 1934, as amended (the “Act”)) of any securities of a company,
including any such right pursuant to any agreement, arrangement or
understanding (whether or not in writing), provided that: (i) a
Person shall not be deemed the Beneficial Owner of any security as a
result of an agreement, arrangement or understanding to vote such
security (A) arising solely from a revocable proxy or consent given
in response to a public proxy or consent solicitation made pursuant
to, and in accordance with, the Act and the applicable rules and
regulations thereunder, or (B) made in connection with, or to
otherwise participate in, a proxy or consent solicitation made, or
to be made, pursuant to, and in accordance with, the applicable
provisions of the Act and the applicable rules and regulations
thereunder, in either case described in clause (A) or (B) above,
whether or not such agreement, arrangement or understanding is also
then reportable by such Person on Schedule 13D under the Act (or any
comparable or successor report); and (ii) a Person engaged in
business as an underwriter of securities shall not be

2

 

	 	 	deemed to be the Beneficial Owner of any security acquired through
such Person’s participation in good faith in a firm commitment
underwriting until the expiration of forty days after the date of
such acquisition.

(b) Change of Control. For purposes of this Agreement, “Change of
Control” means:

(i) a report on Schedule 13D shall be filed with the Securities
and Exchange Commission pursuant to Section 13(d) of the Act
disclosing that any Person, other than the Company or a subsidiary
of the Company or any employee benefit plan sponsored by the
Company or a subsidiary of the Company is the Beneficial Owner of
twenty percent or more of the outstanding stock of the Company
entitled to vote in the election of directors of the Company;

(ii) any Person, other than the Company or a subsidiary of the
Company or any employee benefit plan sponsored by the Company or a
subsidiary of the Company shall purchase shares pursuant to a
tender offer or exchange offer to acquire any stock of the Company
(or securities convertible into stock) for cash, securities or any
other consideration, provided that after consummation of the
offer, the Person in question is the Beneficial Owner of fifteen
percent or more of the outstanding stock of the Company entitled
to vote in the election of directors of the Company (calculated as
provided in paragraph (d) of Rule 13d-3 under the Act in the case
of rights to acquire stock);

(iii) any merger, consolidation, recapitalization or
reorganization of the Company approved by the stockholders of the
Company shall be consummated, other than any such transaction
immediately following which the persons who were the Beneficial
Owners of the outstanding securities of the Company entitled to
vote in the election of directors of the Company immediately prior
to such transaction are the Beneficial Owners of at least 55% of
the total voting power represented by the securities of the entity
surviving such transaction entitled to vote in the election of
directors of such entity (or the ultimate parent of such entity)
in substantially the same relative proportions as their ownership
of the securities of the Company entitled to vote in the election
of directors of the Company immediately prior to such transaction;
provided that, such continuity of ownership (and preservation of
relative voting power) shall be deemed to be satisfied if the
failure to meet such threshold (or to preserve such relative
voting power) is due solely to the acquisition of voting
securities by an employee benefit plan of the Company, such
surviving entity or any subsidiary of such surviving entity;

3

 

(iv) any sale, lease, exchange or other transfer (in one
transaction or a series of related transactions) of all or
substantially all the assets of the Company approved by the
stockholders of the Company shall be consummated; or

(v) within any 24 month period, the persons who were directors of
the Company immediately before the beginning of such period (the
“Incumbent Directors”) shall cease (for any reason other than
death) to constitute at least a majority of the board of directors
of the Company (the “Board”) or the board of directors of any
successor to the Company, provided that any director who was not a
director at the beginning of such period shall be deemed to be an
Incumbent Director if such director (A) was elected to the Board
by, or on the recommendation of or with the approval of, at least
two-thirds of the directors who then qualified as Incumbent
Directors
either actually or by prior operation of this clause (v), and (B)
was not designated by a person who has entered into an agreement
with the Company to effect a transaction described in clause (iii)
or clause (iv) of Section 2(b)of this Agreement.

(c) Person. For purposes of this Agreement, “Person” has the meaning
ascribed to such term in Section 3(a)(9) of the Act, as supplemented by
Section 13(d)(3) of the Act; provided, however, that Person shall not
include: (i) the Company, any subsidiary of the Company or any other
Person controlled by the Company, (ii) any trustee or other fiduciary
holding securities under any employee benefit plan of the Company or of
any subsidiary of the Company, or (iii) a corporation owned, directly or
indirectly, by the stockholders of the Company in substantially the same
proportions as their ownership of securities of the Company.

(d) Potential Change of Control. For purposes of this Agreement,
“Potential Change of Control” means:

(i) a Person shall commence a tender offer, which if successfully
consummated, would result in such Person being the Beneficial
Owner of at least 15% of the stock of the Company entitled to vote
in the election of directors of the Company;

(ii) the Company shall enter into an agreement, the consummation
of which shall constitute a Change of Control;

(iii) solicitation of proxies for the election of directors of
the Company by anyone other than the Company, which, if such
directors were elected, would result in the occurrence of a Change
of Control described in Section 2(b) of this Agreement; or

4

 

(iv) any other event shall occur which is deemed to be a Potential Change of
Control by the Board or the appropriate committee thereof.

3. Employment Period.

Subject to Section 7 of this Agreement, the Company agrees to continue
Executive in the employ of the Company and/or the Subsidiary, and Executive
agrees to remain in the employ thereof of the Company, for the period
commencing on the Effective Date and ending on the third anniversary of the
date on which a Change of Control occurs (the “Employment Period”).
Notwithstanding the foregoing, if, prior to the Effective Date, Executive is
demoted to a position lower than the position held by Executive as of the date
first above written, or is otherwise determined by the chairman of the Company
(the “Chairman”) prior to the Effective Date to hold a position inappropriate
for coverage under this Agreement, this Agreement shall be void and without
effect, unless the Board, any appropriate committee thereof, or the Chairman
declares that this Agreement shall continue in effect by written notice
delivered to Executive within 60 days following such demotion or determination.

4. Position and Duties.

(a) No Reduction in Position. During the Employment Period, Executive’s
position (including titles and tier), authority and responsibilities
shall be at least commensurate with those held, exercised and assigned
immediately prior to the Effective Date. It is understood that, for
purposes of this Agreement, such position, authority and responsibilities
shall not be regarded as not commensurate merely by virtue of the fact
that a successor shall have acquired all or substantially all of the
business and/or assets of the Company as contemplated by Section 10(d) of
this Agreement.

(b) Business Time. On and after the Effective Date, Executive agrees to
devote full attention during normal business hours to the business and
affairs of the Company and to use best efforts to perform faithfully and
efficiently the responsibilities assigned to Executive hereunder, to the
extent necessary to discharge such responsibilities, except for: (i)
time spent (A) serving on the board of directors of any business
corporation with the consent of the Board, any appropriate committee of
the Board, or the Chairman, (B) serving on the board of, or working for,
any charitable or community organization (with the consent of the Board,
any appropriate committee of the Board, or the Chairman if any such
service or work is to be performed during normal business hours), or (C)
pursuing Executive’s personal financial and legal affairs, so long as the
foregoing activities, individually or collectively, do not substantially
interfere with the performance of Executive’s responsibilities hereunder
or violate any of the provisions of Section

5

 

10 hereof, and (ii) periods of vacation, sick leave or other leave to
which Executive is entitled under the programs and policies of the
Company that apply to similarly situated executives. It is expressly
understood and agreed that Executive’s continuing to serve on any boards
and committees on which Executive is serving or with which Executive is
otherwise associated immediately preceding the Effective Date shall not
be deemed to interfere substantially with the performance of Executive’s
responsibilities hereunder.

5. Compensation.

(a) Base Salary. During the Employment Period, the Company and/or the
Subsidiaries shall pay Executive a base salary at an annual rate no less
than the annual rate in effect immediately prior to the Effective Date.
Such base salary shall be reviewed at least once during each calendar
year of the Employment Period, and may be increased at any time and from
time to time by action of the Board or any appropriate committee thereof
or any individual having authority to take such action in accordance with
the Company’s regular practices, but shall not be reduced below the
annual rate in effect immediately prior to the Effective Date.
Executive’s base salary, as it may be increased from time to time, shall
be referred to herein as “Base Salary.” Neither the Base Salary nor any increase in
Base Salary after the Effective Date shall serve to limit or reduce any
obligation of the Company hereunder.

(b) Annual Bonus. For each calendar year ending during the Employment
Period, Executive shall have the opportunity to earn and receive an
annual bonus, based on the achievement of target levels of performance,
equal to no less than the percentage of Executive’s Base Salary used to
calculate such bonus immediately prior to the Effective Date. Executive’s
annual bonus opportunity, as it may be increased from time to time during
the Employment Period, shall be referred to herein as “Target Bonus.”
The actual bonus, if any, payable for any calendar year during the
Employment Period shall be determined in accordance with the terms of the
Company’s Annual Executive Bonus Program or any successor annual
incentive plan (the “Annual Plan”) based upon the performance of the
Company and/or its applicable affiliates and/or Executive against target
objectives established under such Annual Plan. Subject to Executive’s
election to defer all or a portion of any annual bonus payable hereunder
pursuant to the terms of any deferred compensation, deferred restricted
stock or savings plan or other similar arrangement maintained or
established by the Company or its affiliates and made available to
Executive, any annual bonus payable under this Section 5(b) shall be paid
to Executive in accordance with the terms of the Annual Plan.

(c) Long-term Incentive Compensation. During the Employment Period,
Executive shall participate in all of the Company’s existing and future
long-term incentive compensation programs for key executives at a level
commensurate with

6

 

Executive’s participation in such programs immediately prior to the
Effective Date, or, if more favorable to the Executive, at the level made
available to Executive or other similarly situated executives at any time
thereafter.

6. Benefits, Perquisites and Expenses.

(a) Benefits. During the Employment Period, Executive (and, to the
extent applicable, his or her dependents) shall be entitled to
participate in or be covered under: (i) each welfare benefit plan
maintained or as hereafter amended or established by the Company or its
applicable affiliates, including, without limitation, each group life,
hospitalization, medical, dental, health, accident or disability
insurance or similar plan or program thereof, and (ii) each pension,
retirement, savings, deferred compensation, deferred restricted stock,
stock purchase or other similar plan or program maintained or as
hereafter amended or established by the Company or its applicable
affiliates, in each case at a level commensurate with the Executive’s
participation in such plans or programs immediately prior to the
Effective Date, or, if more favorable to the Executive, at the level made
available to Executive or other similarly situated executives at any time
thereafter.

(b) Perquisites. For each calendar year during the Employment Period,
Executive shall be entitled to no less than the number of paid vacation
days per year that Executive was entitled to immediately prior to the
Effective Date, and shall also be entitled to receive such other
perquisites commensurate with those generally provided to Executive
immediately prior to the Effective Date, or, if more favorable to the
Executive, at the level made available from time to time to Executive or
other similarly situated executives at any time thereafter.

(c) Business Expenses. During the Employment Period, the Company shall
pay or reimburse Executive for all reasonable business expenses incurred
or paid by Executive in the performance of Executive’s duties, upon
presentation of expense statements or vouchers and such other information
as the Company may require and in accordance with the generally applicable policies and
procedures of the Company as in effect immediately prior to the Effective
Date, or, if more favorable to the Executive, in accordance with the
policies and procedures in effect at any time thereafter.

(d) Office and Support Staff. During the Employment Period, Executive
shall be entitled to an office with furnishings and other material
appointments, and to secretarial and other assistance, at a level
commensurate with the foregoing provided immediately prior to the
Effective Date, or, if more favorable to the Executive, in accordance
with the policies and procedures in effect at any time thereafter.

7

 

(e) Indemnification. The Company shall indemnify Executive and hold
Executive harmless from and against any claim, loss or cause of action,
regardless whether asserted during or after the Employment Period,
arising from or out of Executive’s performance as an officer, director or
employee of the Company or any of its affiliates or in any other
capacity, including any fiduciary capacity, in which Executive serves at
the request of the Company, to the maximum extent permitted by applicable
law and under the Certificate of Incorporation and By-Laws of the
Company, as may be amended from time to time (the “Governing Documents”),
provided that in no event shall the protection afforded to Executive be
less than that afforded under the Governing Documents as in effect
immediately prior to the Effective Date.

7. Early Termination of the Employment Period.

(a) Termination. Notwithstanding Section 3 hereof, the Employment
Period shall end upon the earliest to occur of: (i) a Termination For
Cause, (ii) a Termination Without Cause, (iii) a Termination For Good
Reason, (iv) a Voluntary Termination, (v) a Termination Due to
Retirement, (vi) a Termination Due to Disability, or (vii) a Termination
Due to Death.

(b) Notice of Termination. Communication of termination of the
Employment Period shall be made to the other party by Notice of
Termination (as defined in this Section 7) in the case of: (i) a
Termination For Cause, (ii) a Termination Without Cause, (iii) a
Termination For Good Reason, or (iv) a Voluntary Termination.

8

 

(c) Benefits Payable Upon Termination; Rules for Determining Reason for
Termination.

	(i)	 	Benefits Payable Upon Termination.

(A) Following the end of the Employment Period, Executive
(or in the event of the Executive’s death, his or her
surviving spouse, if any, or if none, his or her estate)
shall be paid the type or types of
compensation determined to be payable in accordance with
the following table, such payment to be made in the form
specified in such table and at the time established
pursuant to Section 8 hereof. Capitalized terms used in
such table shall have the meanings set forth in Section
7(d) hereof.

(B) The Company’s obligation to make the payments provided
for in this Agreement and otherwise to perform its
obligations under this Agreement shall not be affected by
any set-off, counterclaim, recoupment, defense or other
claim, right or action which the Company may have against
Executive or others. In no event shall Executive be
obligated to seek other employment or take any other action
by way of mitigation of the amounts payable to Executive
under any of the provisions of this Agreement and such
amounts shall not be reduced whether or not Executive
obtains other employment.

	(ii)	 	Rules for Determining Reason for Termination.

(A) No Termination Without Cause or Termination For Good
Reason shall be treated as a Termination Due to Retirement
or a Termination Due to Disability for purposes of any Pro
Rata Target Bonus, Severance Payment, Equity Awards or
Vested Benefits Enhancement, notwithstanding the fact that,
either on, before or after the Date of Termination with
respect thereto, (I) Executive was eligible for Retirement
as defined in The Hartford Investment and Savings Plan, as
may be amended from time to time, or any successor plan
thereof (the “Savings Plan”), (II) Executive requested to
be treated as a retiree for purposes of the Savings Plan or
any other plan or program of the Company or its affiliates,
or (III) Executive or the Company could have terminated Executive’s
employment in a Termination Due to Disability hereunder.

(B) No Termination Due to Retirement shall be treated as a
Voluntary Termination.

(C) Notwithstanding any provision in this Agreement to the
contrary, in the event of a Change of Control as described
in Section 2(b)(iii) or Section 2(b)(iv) hereof, if the
employment of Executive involuntarily terminates on or
after the date of a shareholder approval described in
either of such Sections but before the date of a
consummation described in either of such Sections, the date
of termination of Executive’s employment shall be deemed
for purposes of this Agreement to be the day following the
date of the applicable consummation.

9

 

BENEFITS PAYABLE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Pro Rata	 	 	 	 	 	 	 	 	 	Welfare
	 	 	 	 	Target	 	Severance	 	 	 	 	 	Vested Benefits	 	Benefits
	BENEFIT
	 	Accrued Salary
	 	Bonus
	 	Payment
	 	Equity Awards
	 	Vested Benefits
	 	Enhancement
	 	Continuation

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Determined
	FORM OF	 	 	 	 	 	Lump	 	Determined Under	 	Determined Under	 	 	 	Under the
	PAYMENT
	 	Lump Sum
	 	Lump Sum
	 	Sum
	 	the Applicable Plan
	 	the Applicable Plan
	 	Lump Sum
	 	Applicable Plan

	Termination For

Cause

	 	Payable
	 	Not Payable
	 	Not Payable
	 	Determined Under

the Applicable Plan
	 	Determined Under

the Applicable Plan
	 	Not Payable
	 	Not Available
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Termination Without

Cause

	 	Payable
	 	Payable
	 	Payable
	 	Determined Under

the Applicable Plan
	 	Determined Under

the Applicable Plan
	 	Payable
	 	Available
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Termination For

Good Reason

	 	Payable
	 	Payable
	 	Payable
	 	Determined Under

the Applicable Plan
	 	Determined Under

the Applicable Plan
	 	Payable
	 	Available
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Voluntary

Termination

	 	Payable
	 	Not Payable
	 	Not Payable
	 	Determined Under

the Applicable Plan
	 	Determined Under

the Applicable Plan
	 	Not Payable
	 	Not Available
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Termination Due to
Retirement

	 	Payable
	 	Determined Under

the Applicable Plan
	 	Not

Payable
	 	Determined Under

the Applicable Plan
	 	Determined Under

the Applicable Plan
	 	Not Payable
	 	Available
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Termination Due to
Disability

	 	Payable
	 	Payable
	 	Not Payable
	 	Determined Under

the Applicable Plan
	 	Determined Under

the Applicable Plan
	 	Not Payable
	 	Available
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Termination Due to
Death

	 	Payable
	 	Payable
	 	Not Payable
	 	Determined Under

the Applicable Plan
	 	Determined Under

the Applicable Plan
	 	Not Payable
	 	Not Available

(d) Definitions. For purposes of this Agreement, the following capitalized
terms used herein shall have the following meanings:

“Accrued Salary” means Base Salary earned, but unpaid, for services
rendered to the Company and/or the Subsidiaries on or prior to the Date of
Termination (other than Base Salary deferred pursuant to Executive’s election
under the terms of any applicable Company plan or program), plus any vacation
pay accrued by Executive as of such date.

“Available” means that a particular benefit shall be made available to
Executive to the extent specifically provided herein or required by applicable
law.

10

 

“Date of Termination” means: (i) in the case of a termination for which a
Notice of Termination is required, the date of receipt of such Notice of
Termination, or, if later, the date specified therein, as the case may
be, or (ii) in all other cases, the actual date on which Executive’s
employment terminates during the Employment Period.

“Determined Under the Applicable Plan” means that the determination of
whether a particular benefit shall or shall not be paid to Executive,
and, where specifically provided by this Agreement, the timing or form of
any benefit payment, shall be made solely by application of the terms of
the plan or program providing such benefit, except to the extent that the
terms of such plan or program are expressly superseded or modified by
this Agreement.

“Equity Awards” means the outstanding stock option, restricted stock,
deferred restricted stock, performance share, performance unit, and other
equity or long-term incentive compensation awards, if any, held by
Executive as of the Date of Termination.

“ERPs” means any excess retirement plans maintained or as hereafter
amended or established by the Company or its applicable affiliates.

“ESPs” means any excess investment and savings plans maintained or as
hereafter amended or established by the Company or its applicable
affiliates.

“Lump Sum” means a single lump sum cash payment.

“Not Available” means that the particular benefit shall not be made
available to Executive, except to the extent required by applicable law.

“Not Payable” means that the particular benefit shall not be paid or
otherwise provided to Executive.

“Notice of Termination” means: (i) in the case of a Termination For
Cause, a written notice given by the Company to Executive, within 30
calendar days of the Company’s having actual knowledge of the events
giving rise to such Termination For Cause, (ii) in the case of a
Termination Without Cause, a written notice given by the Company to
Executive at least 30 calendar days before the effective date of such
Termination Without Cause, (iii) in the case of a Termination For Good
Reason, a written notice given by Executive to the Company within 180
days of Executive’s having actual knowledge of the events giving rise to
such Termination For Good Reason, and which (A) indicates the specific
termination provision in this Agreement relied upon, (B) sets forth in
reasonable detail the facts and circumstances claimed to provide a basis
for termination of the Executive’s employment under the provision so
indicated, and (C) if the applicable Date of Termination is other than
the date of receipt of such notice, specifies such Date of

11

 

Termination (which date shall be not more than 15 days after the giving
of such notice), provided that the failure by Executive to set forth in
such Notice of Termination any fact or circumstance that contributes to a
showing of Good Reason shall not waive any right of Executive hereunder
or preclude Executive from asserting such fact or circumstance in
enforcing his or her rights hereunder, or (iv) in the case of a Voluntary
Termination, a written notice given by Executive to the Company at least
30 calendar days before the Date of Termination specified therein.

“Payable” means that a particular benefit shall be paid to Executive in
the amount, at the time, and in the form specified herein.

“Pro-Rata Target Bonus” means an amount equal to the product of: (i)
Executive’s Target Bonus under Section 5(b) for the calendar year in
which the Date of Termination occurs, multiplied by (ii) a fraction (the
“Service Fraction”), the numerator of which is equal to the number of
rounded months (rounded to the nearest number of whole months) in such
calendar year which have elapsed as of such Date of Termination, and the
denominator of which is 12; provided that, if the Date of Termination
occurs in the last quarter of any calendar year, Pro-Rata Target Bonus
shall mean the amount determined under the foregoing formula or, if
greater, the product of: (A) the bonus that would have been paid to
Executive based on actual performance for such calendar year, multiplied
by (B) the Service Fraction.

“Severance Payment” means a cash amount equal to two times the sum of:
(i) Executive’s Base Salary at the rate in effect as of the Date of
Termination, plus (ii) Executive’s Target Bonus amount under Section 5(b)
hereof for the calendar year in which the Date of Termination occurs.

“Termination Due to Death” means a termination of Executive’s employment
due to the death of Executive.

“Termination Due to Disability” means: (i) a termination of Executive’s
employment by the Company as a result of a determination by the Board,
the appropriate committee thereof or the Chairman that Executive has been
incapable of substantially fulfilling the positions, duties,
responsibilities and obligations set forth in this Agreement on account
of physical, mental or emotional incapacity resulting from injury,
sickness or disease for a period of (A) at least four consecutive months,
or (B) more than six months in any twelve month period, or (ii)
Executive’s termination of employment on account of Disability as defined
in the Savings Plan.

“Termination Due to Retirement” means Executive’s termination of
employment on account of Executive’s Retirement as defined in the Savings
Plan.

12

 

“Termination For Cause” means the Company’s termination of Executive’s
employment due to: (i) Executive’s conviction of a felony, (ii) an act
or acts of extreme dishonesty or gross misconduct on Executive’s part
which result or are intended to result in material damage to the
Company’s business or reputation, or (iii) repeated material violations
by Executive of his or her obligations under Section 4 of this Agreement,
which violations are demonstrably willful and deliberate on the
Executive’s part and which result in material damage to the Company’s
business or reputation.

“Termination For Good Reason” means the occurrence of any of the
following after the occurrence of a Potential Change of Control or a
Change of Control:

(i) (A) the assignment to Executive of any duties inconsistent in
any material adverse respect with Executive’s position, including
titles, duties, authority or responsibilities as contemplated by
Section 4 of this Agreement, or (B) any other material adverse
change in such position, including titles, duties, authority or
responsibilities;

(ii) any failure by the Company and/or the Subsidiaries to comply
with any of the provisions of Sections 5 and 6 of this Agreement
at a level of least equal to that in effect immediately preceding
such Change of Control or Potential Change of Control, other than
an insubstantial or inadvertent failure remedied by the Company
and/or the Subsidiaries promptly after receipt of notice thereof
given by Executive;

(iii) the Company’s requiring Executive to be based at any office
or location more than 25 miles from the location at which
Executive performed the services specified under Section 4 hereof
immediately prior to such Change of Control or Potential Change of
Control, except for travel reasonably required in the performance
of Executive’s responsibilities;

(iv) any failure by the Company to obtain the assumption and
agreement to perform this Agreement by a successor as contemplated
by Section 11(d); or

(v) any attempt by the Company and/or the Subsidiaries to
terminate Executive’s employment in a Termination For Cause that
is determined in a proceeding pursuant to Section 9 or Section 10
hereof not to constitute a Termination For Cause.

Notwithstanding the foregoing, a termination of Executive’s employment
shall not be treated as a Termination For Good Reason (I) if Executive
shall have consented in writing to the occurrence of the event giving
rise to the claim of Termination For Good Reason, or (II) if Executive
shall have delivered a Notice of

13

 

Termination to the Company, and the facts and circumstances specified
therein as providing a basis for such Termination For Good Reason are
cured by the Company within 10 days of its receipt of such Notice of
Termination.

“Termination Without Cause” means any involuntary termination of
Executive’s employment by the Company and/or the Subsidiaries, other than
a Termination For Cause, a Termination Due to Disability by the Company
or a Termination Due to Death.

“Vested Benefits” means amounts that are vested or that Executive is
otherwise entitled to receive, without the performance by Executive of
further services or the resolution of a contingency, under the terms of
or in accordance with any investment and savings plan or retirement plan
(including any plan providing retiree medical benefits) of the Company or
its affiliates, and any ERPs or ESPs related thereto, and any deferred
compensation or employee stock purchase plan or similar plan or program
of the Company or its affiliates.

“Vested Benefits Enhancement” means: (i) a cash amount equal to the
present value, calculated using a discount rate equal to the then
prevailing applicable Federal rate as determined under Section 1274(d) of
the Internal Revenue Code of 1986, as amended (the “Code”), of the
additional retirement benefits that would have been payable or available
to Executive under any ERPs, based on (A) the age and service Executive
would have attained or completed had Executive continued in the employ of
the Company and/or the Subsidiaries until the second anniversary of the
Date of Termination, and (B) where compensation is a relevant factor,
Executive’s pensionable compensation as of such Date of Termination, such
compensation to include, on the same terms as apply to other executives,
any Severance Payment made to Executive, (ii) solely for purposes of
vesting in any benefits under any ESPs, Executive shall be treated as
having continued in the employ of the Company and/or the Subsidiaries
until the second anniversary of such Date of Termination, and (iii)
solely for purposes of determining eligibility for retiree medical
benefits under any retirement plan or any retiree welfare benefit plan,
policy or program of the Company or its affiliates, and any ERPs related
thereto, Executive shall be treated as having continued in the employ of
the Company and/or the Subsidiaries until the second anniversary of the
occurrence of such Change of Control and to have retired on the last day
of such period.

“Voluntary Termination” means any voluntary termination of Executive’s
employment by Executive, other than a Termination For Good Reason, a
Termination Due to Retirement, or a Termination Due to Disability by
Executive.

“Welfare Benefits Continuation” means that until the second anniversary
of the Date of Termination, Executive and, if applicable, his or her
dependents, shall be entitled to continue participation in the life and
health insurance benefit plans of

14

 

the Company or its affiliates in which Executive and/or such dependents
were participating as of the Date of Termination, and such other welfare
benefit plans thereof in which the Company or its affiliates are required
by law to permit the participation of Executive and/or such dependents,
(collectively, the “Welfare Benefit Plans”). Such participation shall be
on the same terms and conditions (including the requirement that
Executive pay any premiums generally paid by an employee) as would apply
if Executive were still in the employ of the Company and/or the
Subsidiaries; provided that the continued participation of Executive
and/or the dependents of Executive in such Welfare Benefit Plans shall
cease on such earlier date as Executive may become eligible for
comparable welfare benefits provided by a subsequent employer. To the
extent that Welfare Benefits Continuation cannot be provided under the
terms of the applicable plan, policy or program, the Company shall
provide a comparable benefit under another plan or from the Company’s
general assets.

(e) Out-Placement Services. If the Employment Period terminates because of a
Termination Without Cause or a Termination For Good Reason, Executive shall be
entitled to out-placement services, provided by the Company or its designee at
the Company’s expense, for 12 months following the Date of Termination, or such
lesser period as Executive may require such services.

(f) Certain Further Payments by Company.

(i) Tax Reimbursement Payment. In the event that any amount or benefit
paid or distributed to Executive pursuant to this Agreement, taken
together with any amounts or benefits otherwise paid or distributed to
Executive by the Company or any affiliate (collectively, the “Covered
Payments”), are or become subject to the tax (the “Excise Tax”) imposed
under Section 4999 of the Code, or any similar tax that may hereafter be
imposed, the Company shall pay to Executive at the time specified in this
Section an additional amount (the “Tax Reimbursement Payment”) such that
the net amount retained by the Executive with respect to such Covered
Payments, after deduction of any Excise Tax on the Covered Payments and
any Federal, state and local income tax and other tax on the Tax
Reimbursement Payment provided for by this Section, but before deduction
for any Federal, state or local income or employment tax withholding on
such Covered Payments, shall be equal to the amount of the Covered
Payments.

(ii) Applicable Rules. For purposes of determining whether any of the
Covered Payments will be subject to the Excise Tax and the amount of such
Excise Tax:

(A) Such Covered Payments shall be treated as “parachute payments”
within the meaning of Section 280G of the Code, and all “parachute
payments” in excess of the “base amount” (as defined under Section
280G(b)(3) of the Code) shall be treated as subject to the Excise
Tax, unless, and except to the extent that, in the good faith
judgment of the

15

 

Company’s independent certified public accountants appointed prior
to the Effective Date or tax counsel selected by such accountants
(the “Accountants”), the Company has a reasonable basis to
conclude that such Covered Payments (in whole or in part) either
do not constitute “parachute payments” or represent reasonable
compensation for personal services actually rendered (within the
meaning of Section 280G(b)(4)(B) of the Code) in excess of the
“base amount,” or such “parachute payments” are otherwise not
subject to such Excise Tax; and

(B) The value of any non-cash benefits or any deferred payment or
benefit shall be determined by the Accountants in accordance with
the principles of Section 280G of the Code.

(iii) Additional Rules. For purposes of determining the amount of the
Tax Reimbursement Payment, the Executive shall be deemed to pay (A)
Federal income taxes at the highest applicable marginal rate of Federal
income taxation for the calendar year in which the Tax Reimbursement
Payment is to be made, and (B) any applicable state and local income and
other taxes at the highest applicable marginal rate of taxation for the
calendar year in which the Tax Reimbursement Payment is to be made, net
of the maximum reduction in Federal income taxes which could be obtained
from the deduction of such state or local taxes if paid in such year.

(iv) Repayment or Additional Payment in Certain Circumstances.

(A) Repayment. In the event that the Excise Tax is subsequently
determined by the Accountants or pursuant to any proceeding or
negotiations with the Internal Revenue Service to be less than the
amount taken into account hereunder in calculating the Tax
Reimbursement Payment made, Executive shall repay to the Company,
at the time that the amount of such reduction in the Excise Tax is
finally determined, the portion of such prior Tax Reimbursement
Payment that would not have been paid if such lesser Excise Tax
had been applied in initially calculating such Tax Reimbursement
Payment. Notwithstanding the foregoing, in the event any portion
of the Tax Reimbursement Payment to be repaid to the Company has
been paid to any Federal, state or local tax authority, repayment
thereof shall not be required until actual refund or credit of
such portion has been made to Executive by the applicable tax
authority.
Executive and the Company shall mutually agree upon the course of
action to be pursued (and the method of allocating the expenses
thereof) if Executive’s good faith claim for refund or credit is
denied.

(B) Additional Tax Reimbursement Payment. In the event that the
Excise Tax is later determined by the Accountants or pursuant to
any

16

 

proceeding or negotiations with the Internal Revenue Service to exceed the
amount taken into account hereunder at the time the Tax
Reimbursement Payment is made (including, but not limited to, by
reason of any payment the existence or amount of which cannot be
determined at the time of the Tax Reimbursement Payment), the
Company shall make an additional Tax Reimbursement Payment in
respect of such excess (plus any interest or penalty payable with
respect to such excess) at the time that the amount of such excess
is finally determined.

(v) Timing for Tax Reimbursement Payment. The Tax Reimbursement Payment
(or portion thereof) provided for in this Section 7 shall be paid to
Executive not later than 10 business days following the payment of the
Covered Payments; provided, however, that if the amount of such Tax
Reimbursement Payment (or portion thereof) cannot be finally determined
on or before the date on which payment is due, the Company shall pay to
Executive by such date an amount estimated in good faith by the
Accountants to be the minimum amount of such Tax Reimbursement Payment
and shall pay the remainder of such Tax Reimbursement Payment (together
with interest at the rate provided in Section 1274(b)(2)(B) of the Code)
as soon as the amount thereof can be determined, but in no event later
than 45 calendar days after payment of the related Covered Payment. To
the extent that the amount of the estimated Tax Reimbursement Payment
exceeds the amount subsequently determined to have been due, Executive
shall pay such excess to the Company on the fifth business day after
written demand by the Company for payment.

8. Timing of Payments.

Accrued Salary, Severance Payments and Vested Benefits Enhancements shall be
paid no later than 10 days following the Date of Termination. Pro-Rata Target
Bonus shall be paid as follows: (a) if the Date of Termination occurs in the
first, second or third calendar quarter of any particular calendar year, then
the Pro-Rata Target Bonus shall be paid no later than 10 days following the
Date of Termination, or (b) if the Date of Termination occurs in the fourth
calendar quarter of any particular calendar year, then the Pro-Rata Target
Bonus shall be paid no later than the same time as similar awards are paid to
other executives participating in the plans or programs under which the awards
are paid, but in no event later than March 31 of the calendar year following
the end of such fourth calendar quarter. Vested Benefits and Equity Awards
shall be paid no later than the time for payment Determined Under the
Applicable Plan except as otherwise expressly superseded or modified by this
Agreement. Tax Reimbursement Payments shall be paid at the time specified in
Section 7 hereof.

9. Confidentiality and Other Covenants. By and in consideration of the
compensation and benefits to be provided by the Company hereunder, including
the severance

17

 

arrangements set forth herein, Executive agrees to the following:

(a) Confidentiality. Without the prior written consent of the Company,
except to the extent required by an order of a court having competent
jurisdiction or under subpoena from an appropriate government agency,
Executive shall not disclose to any third person, or permit the use of
for the benefit of any person or any entity other than the Company or its
affiliates, any trade secrets, customer lists, information regarding
product development, marketing plans, sales plans, management
organization information (including data and other information relating
to members of the Board and management), operating policies or manuals,
business plans, financial records, or other financial, organizational,
commercial, business, sales, marketing, technical, product or employee
information relating to the Company or its affiliates or information
designated as confidential, proprietary, and/or a trade secret, or any
other information relating to the Company or its affiliates that
Executive knows from the circumstances, in good faith and good
conscience, should be treated as confidential, or any information that
the Company or its affiliates may receive belonging to customers, agents
or others who do business with the Company or its affiliates, except to
the extent that any such information previously has been disclosed to the
public by the Company or is in the public domain (other than by reason of
Executive’s violation of this Section 9(a)).

(b) Company Property. Except as expressly provided herein, promptly
following any termination of the Employment Period, Executive shall
return to the Company all property of the Company, and all copies thereof
in Executive’s possession or under his or her control.

(c) Injunctive Relief and Other Remedies with Respect to Covenants.
Executive acknowledges and agrees that the covenants and obligations of
Executive with respect to confidentiality and Company property relate to
special, unique and extraordinary matters and that a violation of any of
the terms of such covenants and obligations will cause the Company
irreparable injury for which adequate remedies are not available at law.
Therefore, Executive agrees that the Company shall be entitled to an
injunction, restraining order or such other equitable relief (without the
requirement to post bond) restraining Executive from committing any
violation of the covenants and obligations contained in this Section 9.
These remedies are cumulative and are in addition to any other rights and
remedies the Company may have at law or in equity. Notwithstanding the
foregoing, in no event shall an asserted violation of the provisions of
this Section constitute a basis for deferring or withholding any amounts
otherwise payable to the Executive under this Agreement following a
Change of Control.

10. Miscellaneous.

18

 

(a) Survival. All of the provisions of Sections 7 (relating to
termination of the Employment Period following a Change of Control or a
Potential Change of Control), 9 (relating to confidentiality and Company
property), 10(b) (relating to arbitration), 10(c) (relating to legal fees
and expenses) and 10(n) (relating to governing law) of this Agreement
shall survive the termination of this Agreement.

(b) Arbitration. Except as provided in Section 10, any dispute or
controversy arising under or in connection with this Agreement (excluding
employment related disputes that do not involve this Agreement) shall be
resolved by binding arbitration. Such arbitration shall be held in the
city of Hartford, Connecticut and except to the extent inconsistent with
this Agreement, shall be conducted in accordance with the Commercial
Arbitration Rules of the American Arbitration Association in effect at
the time of the arbitration, and otherwise in accordance with the
principles that would be applied by a court of law or equity. The
arbitrator shall be acceptable to both the Company and Executive. If the
parties cannot agree on an acceptable arbitrator, the dispute or
controversy shall be heard by a panel of three arbitrators; one appointed
by each of the parties and the third appointed by the other two
arbitrators. The Company and Executive further agree that they will
abide by and perform any award or awards rendered by the arbitrators and
that a judgment may be entered on any award or awards rendered by any
state or federal court having jurisdiction over the Company or Executive
or any of their respective property.

(c) Legal Fees and Expenses. In any contest (whether initiated by
Executive or by the Company) as to the validity, enforceability or
interpretation of any provision of this Agreement, the Company shall pay
Executive’s legal expenses (or cause such expenses to be paid) including,
without limitation, Executive’s reasonable attorney’s fees, on a
quarterly basis, upon presentation of proof of such expenses in a form
acceptable to the Company, provided that Executive shall reimburse the
Company for such amounts, plus simple interest thereon at the 90-day
United States Treasury Bill rate as in effect from time to time,
compounded annually, if Executive shall not prevail, in whole or in part,
as to any material issue as to the validity, enforceability or
interpretation of any provision of this Agreement.

(d) Successors; Binding Effect. This Agreement shall inure to the
benefit of and be binding upon the Company and its successors. The
Company shall require any successor to all or substantially all of the
business and/or assets of the Company, whether direct or indirect, by
purchase, merger, consolidation, acquisition of stock, or otherwise, by
an agreement in form and substance satisfactory to Executive, expressly
to assume and agree to perform this Agreement in the same manner and to
the same extent as the Company would be required to perform the Agreement
if no such succession had taken place. This Agreement is personal to the
Executive and, without the prior written consent of the Company, shall
not be assignable by Executive otherwise than by will or the law of
descent and

19

 

distribution. This Agreement shall inure to the benefit of and be
enforceable by Executive’s legal representatives.

(e) Assignment. Except as provided in Section 10(d), neither this
Agreement nor any of the rights or obligations hereunder shall be
assigned or delegated by any party hereto without the prior written
consent of the other party.

(f) Entire Agreement. This Agreement together with the employment
relationship between the parties constitutes the entire agreement between
the parties hereto with respect to the matters referred to herein. This
Agreement supersedes and replaces any prior or subsequent severance plan
or arrangement that otherwise would apply to Executive following a Change
of Control or a Potential Change of Control. No other agreement relating
to the terms of Executive’s employment by the Company, oral or otherwise,
shall be binding between the parties unless it is in writing and signed
by the party against whom enforcement is sought. There are no promises,
representations, inducements or statements between the parties other than
those that are expressly contained herein. Executive acknowledges that
he or she is entering into this Agreement of his or her own free will and
accord, and with no duress, and that he or she has read this Agreement
and that he or she understands it and its legal consequences.

(g) Severability; Reformation. In the event that one or more of the
provisions of this Agreement shall become invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability
of the remaining provisions contained herein shall not be affected
thereby. In the event of a determination that any of the provisions of
Section 9(a) are not enforceable in accordance with their terms,
Executive and the Company agree that such Section shall be reformed to
make such Section enforceable in a manner that provides the Company the
maximum rights permitted at law.

(h) Waiver. Waiver by any party hereto of any breach or default by the
other party of any of the terms of this Agreement shall not operate as a
waiver of any other breach or default, whether similar to or different
from the breach or default waived. No waiver of any provision of this
Agreement shall be implied from any course of dealing between the parties
hereto or from any failure by either party hereto to assert its or his or
her rights hereunder on any occasion or series of occasions.

(i) Notices. Any notice required or desired to be delivered under this
Agreement shall be in writing and shall be delivered personally, by
courier service, by registered mail, return receipt requested, or by
telecopy and shall be effective upon actual receipt by the party to which
such notice shall be directed, and shall be addressed as follows (or to
such other address as the party entitled to notice shall hereafter
designate in accordance with the terms hereof):

20

 

	 	 	 
	If to the Company:

	 	The Hartford Financial Services Group, Inc.
	

	 	Executive Row, Home Office
	

	 	Hartford Plaza
	

	 	690 Asylum Avenue
	

	 	Hartford, CT 06115
	

	 	Attention: General Counsel
	 
	 	 
	with a copy to:

	 	Debevoise & Plimpton
	

	 	875 Third Avenue
	

	 	New York, NY 10022
	

	 	Attn: Lawrence K. Cagney, Esq.
	 
	 	 
	If to Executive:

	 	The home address of Executive
shown on the records of the Company

(j) Amendments. This Agreement may not be altered, modified or amended
except by a written instrument signed by each of the parties hereto.

(k) Headings. Except as expressly provided herein, headings to
provisions of this Agreement are for the convenience of the parties only
and are not intended to be part of or to affect the meaning or
interpretation hereof.

(l) Counterparts. This Agreement may be executed in counterparts, each
of which shall be deemed an original but all of which together shall
constitute one and the same instrument.

(m) Withholding. Any payments provided for herein shall be reduced by
any amounts required to be withheld by the Company from time to time
under applicable Federal, State or local income or employment tax laws or
similar statutes or other provisions of law then in effect.

21

 

(n) Governing Law. This Agreement shall be governed by the laws of the
State of Connecticut, without reference to principles of conflicts or
choice of law under which the law of any other jurisdiction would apply.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed
by its duly authorized officer, and Executive has hereunto set his or her hand,
as of the day and year first above written.

	 	 	 
	

	 	THE HARTFORD FINANCIAL
SERVICES GROUP, INC.
	 
	 	 
	WITNESSED:
	 	 
	

	 	
 
	

	 	By:  Ann M. de Raismes

Title: Group Senior Vice President,

               Human Resources
	 
	 	 
	
 	 
	 
	

	 	EXECUTIVE
	 
	 	 
	WITNESSED:
	 	 
	 
	 	 
	

	 	
 
	

	 	[Name]
	
 	 
	 

22

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