Document:

exv10w4

  

Exhibit 10.4

GROUP LONG TERM DISABILITY REINSURANCE AGREEMENT

THIS AGREEMENT is between SAFECO LIFE INSURANCE COMPANY of Seattle, Washington
(hereinafter “Insurer”) and DUNCANSON & HOLT SERVICES,
INC., a Maine corporation, as
Managing Agent (hereinafter “Managing Agent”) for each of the participating reinsurers
collectively referred to in this Agreement as the American Disability Reinsurance
Underwriters Syndicate (ADRUS) and listed in Appendix A (hereinafter “Reinsurer”).

The Managing Agent represents and warrants that the Reinsurer has authorised the Managing
Agent to enter into, execute and deliver agreements of this sort on its behalf and to
exercise all of
its rights and platform all of its obligations under such agreements
of its behalf,
including but not
limited to, underwriting of policies, collection of premiums, and
management of claims in accordance with the terms of such agreements.
All performances required by and for the
Reinsurer under this Agreement shall be conducted through the Managing Agent.

In consideration of the mutual promises set forth below, the parties agree as follows:

ARTICLE
I. GENERAL PROVISIONS

The effective, date of this Agreement is January 1, 1999. On and after this date, one hundred
percent (100%) (hereinafter referred to as the “Reinsured Percentage”) of the Insurer’s
liability (hereinafter referred to as “Underlying Risk”) for the group long term disability
insurance policies written on or after January 1,1999 will be ceded to and reinsured by the
Reinsurer.

This Agreement replaces and supersedes Group Long Term Disability Monthly Income
Reinsurance Agreement which was effective April 1, 1979 between the Insurer and the
Reinsurer,
and all subsequent amendments thereto. With respect to in force policies, the Reinsured
Percentage for policies effective prior to January 1, 1999 and reinsured under the prior
Group
Long Term disability Monthly Income Reinsurance Agreement between the two parties shall be
one hundred percent(100%).

Other terms and, conditions of this Agreement are as follows:

	A)	 	For risks reinsured under this Agreement, the Insurer will use only those policy forms
which have been approved by the appropriate regulatory authorities. After the Reinsurer
has reviewed and approved copies of these forms, and insurance policies have been
accepted by the the Policyholder and administered in accordance with the terms of this
Agreement, the Reinsurer will be liable to the Insurer for the Reinsured Percentage in
accordance
with the provisions of the policies reinsured.

 

 

	B)	 	The Insurer, by executing this Agreement, represents that it is
licensed to do insurance
business in every state, district or territory of the United States, or the
District of
Columbia, in which it does business; and that it is licensed to write the
group health and
disability insurance policies which are the subject of this Agreement.
	 
	C)	 	This Agreement represents an exclusive reinsurance arrangement between the
parties for
long term disability business. All business quoted using rates provided by the
Reinsurer
shall be reinsured under this Agreement. In the event the Reinsurer declines to
accept any
policy, the Insurer may reinsure such policy with another reinsurer.
	 
	D)	 	Upon agreement of risk and benefits between Reinsurer and
Insurer, any increase in
benefit liability resulting from Insurer’s divergence from same
shall be borne by the
Insurer. The Reinsurer does not assume liability for any risk not agreed upon and
which is incurred as a result of errors, intentional or otherwise, in the
policy and/or certificate issued.

ARTICLE II. UNDERWRITING

	A)	 	Any reinsurance under this Agreement will be effected only
through the express written consent of the Reinsurer for each case submitted under any disability insurance
policy
covered by this Agreement. The Insurer will submit underwriting data to the
Reinsurer and the Reinsurer will inform the Insurer of its decision to accept
or reject liability. The
Reinsurer will make available to the Insurer the underwriting data prepared and used in
making its determination.
	 
	 	 	The Reinsurer has the right to approve individuals insured under any policy
as a condition of its acceptance of that policy. The Reinsurer may waive this
right for some or all policies
at any time.
	 
	B)	 	The Reinsurer shall keep and maintain appropriate records of evidence of insurability,
including but not limited to the policy, applications, certificates of coverage, medical
forms, and other evidence of insurability, for at least three (3)
years. Upon termination of
this Agreement, the Reinsure, will retain and Insurer shall have
access to such information for the later of three (3) years from termination date or the date the last active claim
ceases.
	 
	C)	 	Either the Insurer of the Reinsurer may, at any reasonable time during normal working
hours of the Insurer and upon provision of written notice fourteen (14) days in advance,
review and audit the records of the other party relating to business reinsured under this Agreement.

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ARTICLE
III. FINANCIAL RESPONSIBILITIES AND TRANSACTIONS

	A)	 	The Insurer shall remit premium for reinsured group long term disability policies to
the
Reinsurer within ninety (90) days from the date on which premium is due to the Insurer.
The Insurer will follow all prudent procedures for premium collection and will notify
the Reinsurer of all reinsured policies for which premium is overdue by ninety (90)
days of the due date. The Reinsurer may assess an interest charge equal to the
interpolated seven (7) year value of five (5) year and ten (10) year United States
Treasury Bonds on premium overdue by more than ninety (90) days.
	 
	 	 	The Insurer will follow all prudent procedures for premium collection and will
notify the Reinsurer of all reinsured policies for which premium is
overdue by thirty (30) days of the due date. The Reinsurer may assess
an interest charge equal to the interpolated seven (7)
year value of five (5) year and ten (10) year United States Treasury Bonds on premium
overdue by more than thirty (30) days.
	 
	 	 	If the premium payment period for any policy comprising the Underlying Risk is other than
monthly, the parties to this Agreement shall determine, by mutual consent the proper
method of reporting, accounting, and transferring of balances.
	 
	 	 	For past due premiums on all reinsured policies for which premiums remain
due and unpaid for thirty (30) days following their due date, the Insurer shall
take appropriate action to terminate all prospective liability in accordance with
the policy provisions and shall institute its usual collection procedures. If the
Insurer fails to take appropriate action to terminate all prospective liability,
the Reinsurer reserves the right to terminate reinsurance of such ceded policies
for which premiums remain unpaid for thirty (30) days past their due date.
	 
	B)	 	For any business sold under this Agreement, the Reinsurer will specify the percentage
of premium to be paid to it for reinsurance of each policy at the time Reinsurer accepts
liability under the terms of the Underwriting Article of this Agreement.
	 
	C)	 	The liability of the Reinsurer shall begin simultaneously with the Reinsurer’s
acceptance of reinsurance for a long term disability
insurance policy, subject to the terms of this Agreement.
	 
	D)	 	The insurer is responsible for paying all premium taxes concerning any business covered by
this Agreement.
	 
	E)	 	Upon provision of written notice fourteen (14) days in
advance,
each party shall have the right, at any reasonable time during normal
working hours, to inspect, at the office of the other party all
non-proprietary, non-confidential and non-privileged books, records and
documents relating to policies reinsured under this Agreement.

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	F)	 	If the Insurer fails to pay the consideration described in this Article, the
Reinsurer shall have

the right to terminate, from the date up to which the policy premiums have been paid,
its obligation for that portion of the Underlying Risk for which consideration is in arrears.
	 
	G)	 	The Reinsurer will be bound by the consideration it specifies for a particular
policy.
However, on any date that the Insurer has the right to terminate a policy or change
the
premium for said policy, the Reinsurer may, with sixty (60) days advance notice,
modify the
rate of consideration or terminate reinsurance on the policy. The Insurer shall
then be
bound by the modification.
	 
	H)	 	Reinstatement of the reinsurance on ceded policies which have been terminated
under any provision of this Article shall be at the Reinsurer’s discretion.
	 
	I)	 	Each party to this Agreement shall have the right to offset any balance(s), or
any other amounts due relating to this or related agreements. In the event of the
insolvency of a party to this Agreement, offsets shall only be allowed
in accordance with the Insolvency Article of this Agreement.

ARTICLE IV. CLAIMS

The
Insurer shall promptly transmit to the Reinsurer all claims, proofs of loss and
supplemental statements of disability submitted on a policy reinsured
hereunder. Upon receipt thereof
the Reinsurer will pay the claim and/or recommend other appropriate action. The Reinsurer will
not be liable for any claim received from the Insurer more than one year after this claim has
been received in the Insurer’s office. The Reinsurer may change the reinsurance rate, retroactive
to the last renewal date, if the receipt of a claim reported to the Reinsurer is more than one year
after receipt by the Insurer and if the timely receipt would have
caused a different reinsurance rate to be
charged.

	A)	 	All services will be performed in accordance with
Appendix B, the Claims Management
Agreement. This Agreement includes administrative procedures particular to the claims
management process and includes, but is not limited to. Authorization to Pay
Claims, Claim Administration Guidelines, Claim Data; Payment of
Benefits; Payment of
Claim Expenses; Right to Audit; and is mutually agreed to by the parties of this Agreement.
	 
	B)	 	The Reinsurer will undertake the defense of any suit, or portion of a suit, which
is based or alleged to be based on claims for benefits under group disability policies covered by this
Agreement where the claim is first commenced after the effective date
of this Agreement,
and the underlying policy is effective on or after the effective date of this
Agreement. Except as otherwise provided in this Agreement, choice of counsel and
management of any such suit, or portion of such suit, shall be agreed
upon by the Insurer
and the Reinsurer,
which will have the exclusive right to settle any such suit, when in its informed and good
faith opinion, it is appropriate to do so. The Insurer will cooperate with the Reinsurer in the
defense of such suits.

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	C)	 	The Insurer and the Reinsurer will notify each other promptly of
any litigation brought
against it with respect to the policies covered by this Agreement.
	 
	D)	 	Claims for Extra-Contractual Amounts. “Extra-Contractual Amounts” are
amounts outside
of contractual benefits which may include, but are not necessarily limited to:
punitive,
exemplary, compensatory or consequential damages or plaintiff’s
litigation-related costs and
fees.

	 	i)	 	If extra-contractual amounts are awarded against the
Insurer solely as a result of the Reinsurer’s decision, action, delay or
failure to act, the Reinsurer shall pay one hundred percent (100%) of all
such amounts.
	 
	 	ii)	 	If extra-contractual amounts are awarded against the Insurer solely as a
result of Insurer’s decision, action, delay, or failure to act, the Reinsurer
shall have no (0%) percentage of liability for the payment of extra-contractual
amounts.
	 
	 	iii)	 	When extra-contractual amounts are awarded against the Insurer
 as a result of both the Reinsurer’s and the Insurer’s
decision, action, delay or failure to act, the parties
agree to share in the payment of any extra-contractual amounts.
	 
	 	iv)	 	To expedite the resolution of certain claims, amounts other than
policy benefits may be added to a claim settlement.

Allocation of responsibility for decisions, actions, delays, or failures to act shall be
determined by the parties’ agreement subsequent to good faith negotiation. Said
determination is solely for the purpose of efficient administration of this
Agreement and for determining who shall assume the costs in certain instances. If
agreement on such allocation cannot be reached, the matter shall be
addressed in
accordance with the Arbitration Article of this Agreement.

If any
portion of this subsection (D) is deemed to be illegal under
any law (decisional
or statutory) or regulation of any Federal, State or local government, insofar as it
applies to that area’s jurisdiction, then said portion is automatically terminated.

ARTICLE
V. RESERVE ADMINISTRATION

The
Reinsurer agrees to provide reserve reports on group long term disability
business under this Agreement to the Insurer in a form mutually acceptable to the
parties. Such reports shall be provided to Insurer within thirty (30) days after the end
of each calendar quarter.

ARTICLE
VI. DURATION, RECAPTURE AND TERMINATION

	A)	 	This Agreement shall govern the relationship of the parties until the liability of
the Reinsurer
with respect to all policies reinsured hereunder ceases. In accordance with the
provisions of this Article, this Agreement can be terminated by either party with respect to all
prospective

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	 	 	acceptances. Termination of the group long term disability insurance exclusively shall not
occur when other lines of disability insurance are also written under this Agreement.
	 
	 	 	Any partial or complete prospective termination of this Agreement must be made in writing prior to
October 1st of each year. Termination shall occur on the desired effective date of
termination or ninety days from receipt of notice, whichever is later.
	 
	B)	 	After this Agreement has been inforce for more than one (1) year from the effective date, the
Insurer may decrease the Reinsured Percentage. The following schedule is the minimum Reinsured
Percentage for each disability policy in effect at the anniversary date of this Agreement.

	 	 	 	 	 
	Year 1 following notification
	 	 	75	%
	Year 2 Following notification
	 	 	75	%
	Year 3 following notification and thereafter
	 	 	50	%

	 	 	Notification must be received by the Reinsurer not later than October 1 of the year prior to the
intended change. The Reinsured Percentage will remain at current Reinsured Percentage absent any
notification. The change in Reinsured Percentage will occur at the next renewal date of the
underlying reinsured policy occurring after the anniversary of the change. Upon termination of this
Agreement, the Insurer may reduce the Reinsured Percentage to zero percent (0%) five (5) years from
the effective date of the termination. Notification must be provided 90 days in advance.
	 
	C)	 	The Reinsured Percentage governing any particular claim under a reinsured policy will be that
Reinsured Percentage in effect as of the date of disability.
	 
	D)	 	As of the date termination becomes effective Reinsurer will provide Insurer only with those
necessary claims and financial services required to manage any reinsured business.
	 
	F)	 	If Insurer becomes insolvent, as determined by the state regulatory agency, this Agreement will
terminate automatically as of the date of insolvency as to all prospective acceptances by the
Reinsurer. Liabilities already incurred by the Reinsurer will be administered in accordance with
the Insolvency Article of this Agreement.

ARTICLE VI. NON-TRANSFERABILITY OF AGREEMENT

Neither the Insurer nor the Reinsurer shall, without prior consent of the other, which shall not be
unreasonably withheld, sell, assign, transfer, or otherwise dispose of this Agreement, policies or
policy liabilities covered by this Agreement, or any interest in such Agreement, by voluntary or
involuntary act, by assumption agreement or otherwise, and any attempt to dispose of said
interests, without said consent, shall be null and void. Notwithstanding the foregoing, Insurer or
Reinsurer may arrange for a Third Party Administrator to perform some or all of the obligations
hereunder. So doing will not relieve the Insurer or Reinsurer from the obligations hereunder,

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though, in the event that the Third
Party Administrator does not perform the obligations as stated
herein.

ARTICLE VII. PARTIES TO THIS AGREEMENT

	A)	 	This is an agreement solely between the Insurer and the Reinsurer. The acceptance of
reinsurance hereunder shall not create any right or legal relation whatever between the
Reinsurer and any of Insurer’s policyholders, beneficiaries, representatives, sales
representatives, employees or shareholders.

	B)	 	A failure or delay of either party to this Agreement to enforce any of the provisions
of this Agreement, or to exercise any option which is herein provided, shall in no way be
construed to be a waiver of such provision.

ARTICLE VIII. CONFIDENTIALITY

	A)	 	The Insurer and the Reinsurer may come into the possession or knowledge of
confidential and proprietary information of the other in fulfilling obligations under this
Agreement. Insurer and the Reinsurer agree to hold such confidential information in
strictest confidence and to take all reasonable steps to ensure that such confidential
information is not disclosed in any form by any means by each of them or by any of their
employees or associates to third parties of any kind, except by advance authorization.
“Confidential information” means any information which (1) is not generally available to
the public, or (2) has not been lawfully obtained by the parties prior to the date of
disclosure to it by the other, and includes but is not limited to:

	 	i)	 	Information or knowledge about each party’s products, processes,
services, finances, customers, research, computer programs, marketing and business
plans, claims management practices, and reserving methodology; and
	 
	 	ii)	 	Any medical and other personal, individually identifiable information
about people or business entities with whom the parties do business, including
customers, prospective customers, vendors, suppliers, individuals covered by
insurance plans, and each party’s producers and employees.

	B)	 	The Insurer and its agents, employees and representatives will not represent
themselves, in writing, as part of the Reinsurer, or refer, in
writing, to the Reinsurer in any policy forms or promotional materials, without the prior written consent of the
Reinsurer.

ARTICLE IX. INSOLVENCY

The Reinsurer agrees that all reinsurance under this Agreement shall be payable by the Reinsurer on
the basis of the liability of the Insurer under each policy reinsured under this Agreement.

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without diminution because of the insolvency of the Insurer, and the Reinsurer assumes
liability for such reinsurance as of the effective dates of such policies. Any such payments by the
Reinsurer shall be made directly to the Insurer or to its liquidator, receiver, or statutory
successor. In the event of the insolvency of the Insurer, the liquidator, receiver or statutory
successor of the Insurer shall give written notice that a claim is pending against the Insurer
with respect to policies comprising the Underlying Risk within a reasonable time after such claim
is filed in the insolvency proceedings. While the claim is pending, the Reinsurer may investigate
such claim and interpose, at its own expense, in the proceeding where such claim is to be
adjudicated any defense or  defenses which it may deem available to the Insurer or its liquidator
or receiver or statutory successor. The expense thus incurred by the Reinsurer shall be
chargeable, subject to court approval, against the Insurer as part of the expenses of liquidation
to the extent of a proportionate share of the benefit which may accrue to the Insurer solely as a
result of the defense undertaken by the Reinsurer.

Where two or more reinsurers are involved and a majority of interest elect to defend a claim, the
expense will be apportioned in accordance with the terms of the reinsurance agreement as if the
expense had been incurred by the Insurer.

ARTICLE X. ARBITRATION

	A)	 	The parties explicitly agree that all differences, whether matters of fact, law or
mixed fact and law, which arise out of the interpretation or execution of this Agreement,
will be decided by arbitration except for those matters which are left to the sole
discretion of the Reinsurer or the Insurer under the terms of this Agreement. The parties
explicitly agree that arbitration shall be the sole and exclusive remedy for all such
differences, and that the arbitrators will determine the interpretation of this Agreement
in accordance with the usual business and reinsurance practices rather than strict
technicalities. Three neutral arbitrators will decide any differences. They must be active
or retried officers of life insurance companies other than the two parties to this Agreement
or any of their subsidiaries. In addition, the officers may not be former employees of the
two parties to this Agreement or any of their subsidiaries. In
addition, the officers may not be former
employees of the two parties to this Agreement or any of their subsidiaries. One of the arbitrators is to be appointed
by each party to this Agreement, and the two arbitrators will select a third. If the two are
not able to agree on a third, the choice will be left to the President of the Society of
Actuaries of its successor. The arbitration shall be in accordance with the Commercial
Arbitration Rules of the American Arbitration Association, or its successor and will take
place in Portland, Maine. This Agreement shall be deemed binding upon the arbitrators for
matters expressly agreed to herein. The arbitrators’ decision shall be by majority vote,
and no appeal shall be taken from it. The judgment rendered by the arbitrators may be
entered in any court having proper jurisdiction. Expenses and fees for the arbitrators
shall be shared by the Insurer and the Reinsurer in equal portions.

	B)	 	The arbitrators may award only contractual damages to either party. In no event may
extra contractual damages, including amounts available under any state or federal
Racketeer Influenced and Corrupt Organization Act (RICO), be awarded to either party under
this

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	 	 	Agreement for breach of said agreement. However, the arbitrators may allocate responsibility for 1)
any extra-contractual amounts awarded against the Insurer, or 2) any amounts representing extra-contractual
damages in a settlement, between the Insurer and the Reinsurer as set forth
in the Claims Article of this Agreement.
	 
	C)	 	The procedures specified in this Article shall be the sole and exclusive procedures
for the resolution of disputes between the parties arising out of or relating to this
Agreement; provided, however, that a party may seek a preliminary injunction or other
preliminary judicial relief if in its judgment such action is necessary to avoid
irreparable damage. Despite such action the parties will continue to participate in good
faith in the procedures specified in this Article. All applicable statutes of limitation
shall be tolled while the procedures specified in this Article are pending. The parties
will take such action, if any, required to effectuate such tolling.
	 
	D)	 	Notwithstanding any other provision of this Article, in the event that either party
seek, consents to, or acquiesces in the appointment of, or otherwise becomes subject to,
any trustee, receiver, liquidator, or conservator (including any state insurance
regulatory agency acting in such a capacity), the other party shall not be obligated to
resolve any claim, dispute, or cause of action under this Agreement by arbitration and may
elect to bring any action with respect to such claim, dispute or cause of action in any
court of competent jurisdiction.

ARTICLE XI. YEAR 2000 COMPLIANCE

The Insurer and the Reinsurer each separately represents and warrants that it has established a written
project plan and budget to address Year 2000 issues, and that its plan includes:

	 	i)	 	conducting an inventory and assessment of Year 2000 impacts to its telecommunications
and information systems, related software and hardware, and its facilities (e.g.,
buildings and utilities);
	 
	 	ii)	 	conducting a review of the Year 2000 preparedness of its significant business
partners and suppliers;
	 
	 	iii)	 	correcting its Year 2000 problems and testing and validating its conversion efforts,
and
	 
	 	iv)	 	establishing contingency and avoidance plans.

Each party represents and warrants that all of its telecommunications and information systems and
related software and hardware have been found to be Year 2000 compliant, or will be made so on or
before December 31, 1999. The Insurer agrees to cooperate in good faith with the Reinsurer with
respect to Year 2000 issues by sharing information with the Reinsurer about the status and progress
of the Insurer’s Year 2000 compliance work and with respect to testing and validation, Reinsurer
agrees to do the same. For purposes of this section, “Year 2000
compliant” means: manages and manipulates data involving dates with full representation of year and century (i.e.

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YYYYMMDD) both internally and externally to the Database, System or Application; follows standards
for acquisition, storage, presentation, and handling of dates including provisions for leap year
and leap centuries. This applies to data stored and retrieved, reports, screens, and data that is
sent or received.

ARTICLE XII. ERRORS AND OMISSIONS

Inadvertent and harmless delays, errors or omissions made in connection with this Agreement or any
transaction hereunder, except as otherwise stated in this Agreement, shall not relieve either party
from any liability which would have attached had such delay, error or omission not occurred,
provided that the fault is rectified as soon as possible after discovery.

ARTICLE XIII. APPLICABLE LAW

This Agreement is governed by the laws of the State of Maine.

ARTICLE XIV. MODIFICATION

	A)	 	This Agreement constitutes the entire understanding between the Reinsurer and the
Insurer. Neither party shall be bound by any other representation made before or after the
date of this agreement, unless it is made in writing signed by both parties and expresses
by its terms an intention to modify this Agreement.

	B)	 	In the event that any one or more of this provisions of the Agreement shall, for any
reason, be held to be invalid, illegal or unenforceable, the remaining provisions of this
Agreement shall be unimpaired.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed in duplicate by their
respective officers duly authorized so to do as of the date set forth above

	 	 	 	 	 	 	 	 	 	 	 
	DUNCANSON &
HOLT SERVICES,	 	 	 	SAFECO LIFE INSURANCE	 	 
	INC. ( Managing Agent of Reinsurer)	 	 	 	COMPANY (Insurer)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By

	 	/s/ Paul K. Fields
 

	 	 	 	By
	 	/s/ John P. Fenlason
 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title

	 	VP Finance
 

	 	 	 	Title
	 	Sr. Vice President
 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date

	 	8-30-99
 

	 	 	 	Date
	 	8-17-99
 

	 	 

	 	 	 	 	 	 	 	 	 	 	 
	/s/ Sharon Newton
	 	 	 	/s/ Joseph Allen Wymich	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Witness

	 	 	 	 	 	Witness	 	 	 	 

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APPENDIX A-20

AGREEMENT YEAR 1999

January 1,
1999 to December 31, 1999

Member
Reinsurers who have contracted with Duncanson & Holt Services, Inc., as Managing Agent
of ADRUS and their levels of participation are follows:

	 	 	 	 	 	 	 	 	 
		 	DOLLAR	 	PERCENTAGE
	MEMBER REINSURER	 	PARTICIPATION	 	PARTICIPATION
	Allianz Life Insurance Company
of North America
	 	$	30,000	 	 	 	100.00	%
	 
	 	 	 	 	 	 	 	 
	TOTAL AUTHORIZED PARTICIPATION
	 	$	30,000	 	 	 	100.00	%

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Claims Management Agreement

Appendix B

I. Claims Management Services

In
satisfaction of its obligations to assist the Insurer with the processing of claims arising
under Policies Reinsured in
connection with the Group Long Term Disability Reinsurance Treaty
(“the Treaty”), the Reinsurer designates Claims Service
International, Inc. (“CST”) to perform claims management
services in connection with the Treaty as set forth herein. The
Insurer shall not be liable to CSI for the services rendered under
the Claims Management Agreement and shall not bear any of the
expenses incurred by CSI in connection with  CSI’ s performance of services hereunder, except as may be expressly set forth
herein. The obligation of CSI to perform administrative Service in
connection with
the Treaty shall continue until such time as all reinsured claims
have been paid,unless
other agreement is reached and becomes a written part of this Agreement.

II. Standard of Care

CSI will manage claims using the same standard of care, diligence and good faith which
Reinsurer exercises in the performance of its own business and shall be consistent with
prudent claim processing practices in the industry, in compliance with applicable laws.

III Licenses

CSI will maintain all necessary licenses to perform this Claims Management Agreement. CSI shall execute any documents
reasonably required by the Insurer in order for the Insurer to comply
with laws relating to the third party
administration of claims.

IV. Claims Administration Guidelines/Claims Data

The Insurer will direct all policyholders that insured individuals and their assignees must
provide notices of all reinsured disability claims, proofs of loss and any supplemental statements
of disability directly to CSI for processing. CSI will communicate with all parties involved in the claims
management process using the identity of “Claims Advisory
Agent” for the Insurer. CSI on behalf of the Reinsures, will use Insurer Long term
Disability (LTD)claims forms, as modified to name CSI as the Claims Advisory Agent.

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CSI will provide the Insurer with copies of all responses to Department of Insurance (DOI)
complaints. The Insurer will not retain individual LTD claim files except for copies of
responses to DOI complaints. CSI will retain all individual LTD claims files and will store
all such files for a period of ten years after the closure of the file. CSI will destroy all
claims files in a manner to preserve confidentiality. Upon proper request, CSI shall provide
access to the books and records maintained by CSI for the purposes of examination, audit and
inspection by any insurance department which purports to exercise jurisdiction over the
business which is subject to the Treaty.

V.
Payment of Claims/Authorization to Pay Claims

Upon
receipt of claims, proofs of loss and/or supplemental statements of disability, CSI,
on behalf of the Reinsurer in accordance with Article IV of the Treaty, will pay the claim or
will take appropriate alternative action. The Insurer or the policyholder will provide to CSI
all necessary information to verify eligibility and premium
requirements, where such information has not already been provided to the
Reinsurer. CSI shall be responsible for mailing acknowledgment letters and claims denial
letters.

In the event that CSI determines that a claim should be denied, CSI will send to the claimant
a notice of denial within 10 business days of the determination. Any notice of denial will be
sent directly, to claimant and will state the reason for denial. Procedures for appeals are to
be. included in the letter to the claimant. A copy of the denial letter shall be forwarded to
the policyholder when applicable.

Beginning
January 1, 1999, CSI will process and pay all claims made against the
policies reinsured under this Treaty for the Insurer. In connection therewith, the Insurer
will provide to CSI signatory authority on a block of the Insurer drafts to be written
against a the Insurer bank account. CSI shall be responsible for mailing, at its expense, all
communications that are required to be mailed to claimants, including checks and EOBs.
Additionally Insurer.

CSI shall
pay each claim under polices reinsured under the Treaty within the
time period allowed by the state
in which the claimant resides. Before suspending any payments, CSI
Will send to claimant a letter, advising the claimant that
benefits will be suspended unless the claimant sends information which in the judgment of
CSI support the continued payment of benefits. A copy of this letter shall be forwarded to
the policyholder when applicable.

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VI. Claims Expenses

All LTD claims expenses will paid by the Reinsurer. Normal claim expenses include, but are not
limited to, the following: medical records; Independent Medical Exams; vendor costs; claim
investigation and rehabilitation. It does not include salaries of either the Insurer’s or
Reinsurer’s employees.

VII. Right to Audit

At its discretion the Insurer, or its designated representative, has the right to conduct random
audits of LTD claims reinsured under the Treaty. Such audits shall be
conducted., by staff of
the Insurer, or its designated representative, at the expense of the Insurer and at the regular
locations of CSI and/or the Reinsurer during normal business hours. Access to all relevant. policy
information and case data regarding reinsured, claims shall be made available for audit
proceedings. The number of claims to be audited will be determined in the sole discretion of the
Insurer.

Results of audits by the Insurer shall be communicated to the Reinsurer in a verbal summary
followed by written documentation of the findings, including any irregularities or problems
identified.

VIII. Information Relating to Fraudulent Claims

CSI will provide to the Insurer, upon the Insurer’s request, a list of measures that CSI uses to
detect fraudulent claims.

IX. Responsibility of Reinsurer for Act of CSI.

Reinsure shall be responsible for all acts of CSI as if the Reinsure had itself performed said
acts.

The
signatures below constitute acceptance of the Claims Management Agreement by all
parties Nothing contained in the Claims Management Agreement shall
vary, alter or affect any of the terms or conditions of the Group
Long Term Disability Reinsurance Agreement.
The Claims Management Agreement may be revised only by changes agreed
to by both parties and documented in writing.

14

 

IN WITNESS WHEREOF, the parties have signed this Claims Management Agreement on the dates shown.

	 	 	 	 	 	 	 	 	 	 	 
	DUNCANSON & HOLT SERVICES,
INC. 
(Managing Agent of Reinsurer)	 	 	 	SAFECO LIFE INSURANCE
COMPANY 
(Insurer)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By

	 	/s/ Paul K. Fields
	 	 	 	By	 	/s/ John P. Fenlason	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title

	 	 V P Finance
	 	 	 	Title
	 	Sr. Vice President	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date

	 	8/30/99
	 	 	 	Date
	 	8/17/99	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/
Sharon Newton	 	 	 	/s/
Joseph Allen Wymich	 	 
	Witness	 	 	 	Witness	 	 

15

 

AMENDMENT NO. 1

TO THE

GROUP LONG TERM DISABILITY REINSURANCE TREATY

Bearing Effective Date January 1, 1999

THE AGREEMENT by and between SAFECO Life Insurance Company of Seattle, Washington (Insurer)
and DUNCANSON & HOLT SERVICES, INC. (Managing Agent for American Disability Reinsurance
Underwriters Syndicate, Reinsurer), is hereby modified as follows:

Article IV(E):
The Insurer or the Reinsurer may engage a Third-Party Administrator (TPA)
to manage claims under this Agreement after the effective date of this Amendment. Any
TPA arrangement will require the approval of both the Insurer and Reinsurer.

The effective date of the change described above is January 1,2000 for all group long
term disability policies effective prior to or on that date.

The signatures affixed hereto constitute acceptance of this Amendment by both parties. Nothing
contained herein shall be held to vary, alter, or affect any of the terms and conditions of
said Treaty other than as herein stated.

IN WITNESS WHEREOF, the parties have signed this Amendment in duplicate on the dates shown
below:

	 	 	 	 	 	 	 	 	 	 	 
	DUNCANSON & HOLT SERVICES,INC	 	SAFECO LIFE INSURANCE COMPANY  
	(Managing Agent of Reinsurer)	 	(Insurer)
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Paul K. Fields
	 	 	 	By:
	 	/s/ Scott Taylor	 	 
	 
	 	 	 	 	 	 
	(Signature)	 	 	 	(Signature)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	V P Finance	 	 	 	Sr. V. P.	 	 
	 
	 	 	 	 	 	 
	(Title)	 	 	 	(Title)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	10/17/00	 	 	 	10/24/00	 	 
	 
	 	 	 	 	 	 
	(Date)	 	 	 	(Date)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/  Sonia D. Davis	 	 	 	/s/  Betty Amundson	 	 
	 	 	 	 	 	 	 
	(Witness)	 	 	 	(Witness)	 	 

 

 

AMENDMENT

Amendment to the Group Long Term Disability Reinsurance Agreement between Symetra Life
Insurance Company (hereinafter the “Insurer”) of Redmond, Washington and Integrated
Disability Resources, Inc., a Connecticut corporation, as Managing Agent (hereinafter the
“managing agent”) for each of the participating reinsurers collectively referred to in
this Amendment as the American Disability Reinsurance Underwriters Syndicate (ADRUS):

Effective January 1, 2006, the parties hereby agree to amend the above-referenced
Reinsurance Agreement as follows:

Paragraph C) appearing in ARTICLE I. GENERAL PROVISIONS is amended to read as
follows:

	 	C)	 	All new pre-sale business which is quoted using rates provided by the
Reinsurer shall be reinsured under this Agreement. For new pre-sale business, this
Agreement represents a non-exclusive reinsurance arrangement between the parties.
	 
	 	 	 	This Agreement will continue to represent an exclusive reinsurance arrangement
between the parties with respect to renewals for Policies which are in force and
reinsured with Reinsurer as of January 1,2006. In the event the Reinsurer
declines to accept a renewal of any such policy, the Insurer may reinsure such
policy with another reinsurer.

All provisions of the Reinsurance Agreement not in conflict with the provisions
of this Amendment will continue unchanged.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed in
duplicate by the signatures of their duly authorized representatives as indicated below.

	 	 	 	 	 	 	 	 	 	 	 
	INTEGRATED DISABILITY
RESOURCES, INC.	 	 	 	SYMETRA LIFE INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Paul K. Fields
	 	 	 	By:
	 	/s/ Scott Taylor	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Paul K. Fields
	 	 	 	Name:
	 	Scott Taylor	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	CFO
	 	 	 	Title:
	 	SR V.P.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	4/27/2006
	 	 	 	Date:
	 	12/19/05	 	 

CDS on
behalf of Reliance [ILLEGIBLE]

 

 

AMENDMENT NO. 3

TO THE

GROUP LONG TERM DISABILITY REINSURANCE AGREEMENT

This Amendment No. 3 (the “Amendment”) is effective as of July 1, 2006 and is hereby made a part of
and incorporated into the Group Long Term Disability Reinsurance Agreement effective January 1,
1999 (the “Agreement”) by and between Symetra Life Insurance Company (formerly Safeco Life
Insurance Company) (hereinafter the “Insurer”) of Bellevue Washington and Reliance Standard Life
Insurance Company doing business as Custom Disability Solutions (successor to Integrated Disability
Resources, Inc., formerly Duncanson & Holt Services, Inc.), as Managing Agent (hereinafter the
“Managing Agent”) for each of the participating reinsurers collectively referred to in the
Reinsurance Agreement as the American Disability Reinsurance Underwriters Syndicate (“ADRUS”).
Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the
Agreement.

The parties agree that this Amendment No. 3 supersedes the prior Amendment No. 3 that was executed
by the parties effective July 1, 2006.

Intending to be legally bound, Insurer and Managing Agent agree to amend the Agreement as follows:

	1.	 	ARTICLE I. GENERAL PROVISIONS, Paragraph C is amended to read as follows:

	 	C)	 	All new business proposals which are quoted using rates provided by the Reinsurer
shall be reinsured under this Agreement, except for new business proposals produced:

	 	i)	 	by Meridian Benefits in the states of North Carolina, South Carolina and
Tennessee, or
	 
	 	ii)	 	from distribution channels and opportunities brought
to Insurer by other
reinsurance outlets, where discussions concerning such opportunities are not
initiated by the Insurer.

	 	 	 	Otherwise, this Agreement represents an exclusive reinsurance arrangement between the
parties with respect to new business proposals.
	 
	 	 	 	This Agreement will continue to represent an exclusive reinsurance arrangement between
the parties with respect to renewals for Policies which are in force and reinsured with
Reinsurer as of July 1, 2006. In the event the Reinsurer declines to accept a renewal of
any such policy, the Insurer may reinsure such policy with another reinsurer.

	2.	 	ARTICLE III. FINANCIAL RESPONSIBILITIES AND TRANSACTIONS, Section A),
first two paragraphs are amended to read as follows:
	 
	 	 	The Insurer shall remit premium for reinsured group long term disability policies to the
Reinsurer within ninety (90) days from the date on which premium is due to the Insurer.

1

 

	 	 	The Insurer will follow all prudent procedures for premium collection and will notify the
Reinsurer of all reinsured policies for which premium is overdue by ninety (90) days of the due
date.
	 
	 	 	The third and fourth paragraphs under Section A) remain unchanged by this Amendment.
	 
	3.	 	ARTICLE VI. DURATION, RECAPTURE AND TERMINATION is amended to read as follows:

ARTICLE VI. DURATION, TERMINATION AND RECAPTURE

	 	A)	 	Duration. This Agreement shall govern the relationship of the parties until the
liability of
the Reinsurer with respect to all policies reinsured under this Agreement ceases.
	 
	 	 	 	Insurer agrees to continue an ongoing active relationship with the Reinsurer for an initial
period ending December 31, 2007.
	 
	 	B)	 	Termination.

	 	(i)	 	Without Cause. Subject to Section A in this Article VI, either party may
terminate this Agreement with respect to all prospective acceptances, at any time by
providing ninety (90) days prior written notice to the other party.
	 
	 	(ii)	 	Insurer Insolvency. If Insurer becomes insolvent as determined by one or more
state regulatory agencies, this Agreement will terminate automatically as of the date
of insolvency as to all prospective acceptances. Liabilities already incurred by the
Reinsurer will be administered in accordance with the Insolvency Article of this
Agreement.
	 
	 	(iii)	 	Immediate Termination Rights. Notwithstanding the above, Insurer may
terminate this Agreement upon the occurrence of any of the following at any time by the
giving of fifteen (15) days prior written notice to the Managing Agent:

	 	a)	 	Either ADRUS or the Managing Agent ceases active underwriting operations;
	 
	 	b)	 	A State Insurance Department or other regulatory authority orders
ADRUS, or any then-participating member of ADRUS, to cease writing business;
	 
	 	c)	 	ADRUS, any then-participating member of ADRUS, or the Managing
Agent: 1) becomes insolvent, 2) is placed into liquidation or receivership, or 3)
has instituted against it proceedings for the appointment of a supervisor,
receiver, liquidator, rehabilitator, conservator or trustee in bankruptcy, or
other agent known by whatever name, to take possession of its assets or control
of its operations;

2

 

	 	d)	 	ADRUS or the Managing Agent enters into a definitive written agreement to
directly or indirectly assign its interests in this Agreement and liability for
obligations under this Agreement to another party without the Insurer’s prior
written consent;
	 	e)	 	The Managing Agent has entered into a definitive agreement to
sell substantially all of its assets without the Insurer’s prior written
consent; or
	 
	 	f)	 	ADRUS or the Managing Agent, has engaged in any of the following: 1) a pattern
or practice of failure by ADRUS or the Managing Agent to pay claims
on a timely basis, 2) a pattern or practice of failure by ADRUS or the Managing
Agent to abide by applicable federal or state laws, 3) a pattern or practice of
acts of bad faith conduct by ADRUS or the Managing Agent, or 4) a pattern or
practice of committing acts of negligent behavior by ADRUS or the Managing
Agent, in discharging the Reinsurer’s duties under this Agreement.

	 	C)	 	Recapture.
	 
	 	 	 	If the Insurer terminates the Agreement effective on January 1, 2008 or some other date in
2008, the recapture period shall, be three (3) years from the effective date of such
termination.
	 
	 	 	 	If the Insurer terminates the Agreement effective on or after January 1, 2009, the
recapture period shall be two (2) years from the effective date of such termination.
	 
	 	 	 	Recapture through any means will include 100% of the risk for the policies unless other
terms are agreed to by the Insurer and Reinsurer.
	 
	 	D)	 	The Reinsured Percentage governing any claim under a reinsured policy will be
that Reinsured Percentage in effect as of the date of disability.
	 
	 	E)	 	As of the date termination of the Agreement becomes effective, Reinsurer will provide
Insurer only with those necessary claim and financial services required to manage any
reinsured business. Upon termination, Reinsurer will utilize renewal methods, tools and
procedures which are consistent with those in use for renewals generally within Reinsurer’s
overall block of business at the time Insurer’s policies are
being renewed.

	 	 	4. The Agreement is amended by the addition of the following Article, which is applicable to
ADRUS members for all ADRUS agreement years effective on or after July 1, 2006.

ARTICLE XV. COLLATERAL REQUIREMENTS

	 	 	If the amount of capital and surplus of any ADRUS member has been reduced by 50% or more of the
amount of capital and surplus as stated in such ADRUS member’s most recent prior annual
statutory statement filed with its state of domicile, such ADRUS member shall deposit in trust
with a trustee (which shall not be an affiliate of such ADRUS
member), and thereafter at all
times maintain in such trust, assets at least equal in value to such ADRUS member’s
proportionate amount of the reserves required to be maintained from time to time

3

 

by
ADRUS under sound actuarial principles and accepted statutory accounting practices,
with respect to reserves required for liabilities incurred by ADRUS members under this
Agreement on or after July 1, 2006.

Such ADRUS member may alternatively post a letter of credit to satisfy such obligations. The
trust or letter of credit arrangements, and all documentation relating thereto, must be
satisfactory in form and substance to Insurer in its good faith discretion. The trust shall be
terminated and the assets returned to the ADRUS member, or the letter of credit returned for
cancellation, if the ADRUS member’s amount of capital and surplus increases by 10% of the amount
of capital and surplus as stated in such ADRUS member’s most recent prior annual statutory
statement filed with its state of domicile.

The
parties acknowledge that the collateral obligations under this provision predicated upon a
reduction in surplus shall not be applicable if the ADRUS member has already provided collateral
or taken other lawful actions that allow Insurer to receive full reserve credit with respect to
the reinsurance ceded under this Agreement.

All provisions of the Agreement not in conflict with the provisions of this Amendment will
continue unchanged.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed in duplicate
by the signatures of their duly authorized representatives as indicated below.

	 	 	 	 	 	 	 	 	 	 	 
	CUSTOM DISABILITY
SOLUTIONS,

Managing Agent of Reinsurer	 	 	 	SYMETRA LIFE INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Paul K. Fields
	 	 	 	By:
	 	/s/ Michael Fry	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Paul K. Fields
	 	 	 	Name:
	 	Michael Fry	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	CFO
	 	 	 	Title:
	 	V P	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	8/16/2006
	 	 	 	Date:
	 	8/17/2006	 	 

4

 

AMENDMENT NO. 4

TO THE

GROUP LONG TERM DISABILITY REINSURANCE AGREEMENT

This Amendment No. 4 (“Amendment”) is hereby made a part of and incorporated into the Group
Long Term Disability Reinsurance Agreement which was effective January 1, 1999 (“Agreement”)
by and between Symetra Life Insurance Company (formerly Safeco Life Insurance Company)
(“Insurer”) of Bellevue, Washington and Reliance Standard Life Insurance Company doing
business as Custom Disability Solutions (successor to Integrated Disability Resources, Inc.,
formerly Duncanson & Holt Services, Inc.), as Managing Agent (“Managing Agent”) for each of
the participating reinsurers collectively referred to in the Agreement as the American
Disability Reinsurance Underwriters Syndicate (“ADRUS”). Capitalized terms not otherwise
defined herein shall have the meaning ascribed to them in the Agreement.

Intending to be legally bound, Insurer and Managing Agent agree to amend the Agreement as
follows:

Effective January 1, 1999, Appendix A-20 appearing in the Agreement is amended to read as
follows:

APPENDIX A

AGREEMENT YEAR 1999

January 1,
1999 to December 31, 1999

Member Reinsurers who have contracted with Duncanson & Holt Services, Inc. as Managing
Agent of ADRUS and their levels of participation are as follows:

	 	 	 	 	 	 	 	 	 
	 	 	DOLLAR	 	PERCENTAGE
	MEMBER REINSURER[S]	 	PARTICIPATION	 	PARTICIPATION
	UNUM Life Insurance Company of America
	 	$	30,000	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 
	TOTAL AUTHORIZED PARTICIPATION
	 	$	30,000	 	 	 	100	%

1

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed in duplicate
by the signatures of their duly authorized representatives as indicated below.

	 	 	 	 	 	 	 	 	 	 	 
	CUSTOM DISABILITY
SOLUTIONS,

Managing Agent of Reinsurer	 	 	 	SYMETRA LIFE INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Paul K. Fields
	 	 	 	By:
	 	/s/ David C. Fry	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Paul K. Fields
	 	 	 	Name:
	 	David C. Fry	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	CFO
	 	 	 	Title:
	 	Senior Actuary & AVP	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	12/7/2006
	 	 	 	Date:
	 	12/8/2006	 	 

2

 

AMENDMENT 5

This Amendment No. 5 (“Amendment”) is hereby made a part of and incorporated into the Group
Long Term Disability Reinsurance Agreement effective January 1, 1999 (“Agreement”) by and between
Symetra Life Insurance Company (hereinafter the “Insurer”) of Bellevue, Washington and Reliance
Standard Life Insurance Company doing business as Custom Disability Solutions, as Managing Agent
(hereinafter the “Managing Agent”) for each of the participating reinsurers collectively referred
to in the Reinsurance Agreement as the American Disability Reinsurance Underwriters Syndicate
(ADRUS). Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in
the Agreement.

Effective September 1, 2008, Insurer and Managing Agent agree to amend the Agreement as
follows:

ARTICLE 1. GENERAL PROVISIONS, Paragraph C) is amended to read as follows:

	 	C)	 	All new pre-sale business which is quoted using rates provided by the Reinsurer shall be
reinsured under this Agreement, except for new pre-sale business produced from distribution
channels and opportunities brought to Insurer by other reinsurance outlets, where discussions
concerning such opportunities are not initiated by the Insurer.
	 
	 	 	 	Otherwise, this Agreement represents an exclusive reinsurance arrangement between the
parties with respect to new pre-sale business.
	 
	 	 	 	This Agreement will continue to represent an exclusive reinsurance arrangement
between the parties with respect to renewals for Policies that are in force and
reinsured with Reinsurer as of July 1, 2006. In the event the Reinsurer declines to
accept a renewal of any such policy, the Insurer may reinsure such policy with another
reinsurer.

All provisions of the Agreement not in conflict with the provisions of this Amendment will
continue unchanged.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed in duplicate by
the signatures of their duly authorized representatives as indicated below.

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	CUSTOM DISABILITY SOLUTIONS	 	 	 	SYMETRA LIFE INSURANCE COMPANY
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Paul K. Fields
	 	 	 	By:
	 	/s/ Marcus Wright
	 

	 	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	Name:

	 	Paul K. Fields
	 	 
	 	Name:
	 	Marcus Wright
	 

	 	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	Title:

	 	CFO
	 	 
	 	Title:
	 	Group Operations Director, AVP
	 

	 	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	Date:

	 	9/26/2008
	 	 
	 	Date:
	 	September 17, 2008
	 

	 	 
	 	 	 	 	 	 

 

APPENDIX A-l

AGREEMENT YEAR 2000

January 1, 2000 to December 31, 2000

Member Reinsurers who have contracted with Duncanson & Holt Services, Inc. as Managing Agent of
ADRUS and their levels of participation are as follows:

	 	 	 	 	 	 	 	 	 
	 	 	DOLLAR	 	PERCENTAGE
	MEMBER REINSURER	 	PARTICIPATION	 	PARTICIPATION
	UNUM Life Insurance Company of America
	 	$	30,000	 	 	 	100.0	%
	 
	 	 	 	 	 	 	 	 
	TOTAL AUTHORIZED
PARTICIPATION
	 	$	30,000	 	 	 	100.0	%

1

 

APPENDIX A-2

AGREEMENT YEAR 2001

January 1, 2001 to December 31, 2001

Member Reinsurers who have contracted with Duncanson & Holt Services, Inc. as Managing Agent of
ADRUS and their levels of participation are as follows:

	 	 	 	 	 	 	 	 	 
	 	 	DOLLAR	 	PERCENTAGE
	MEMBER REINSURER	 	PARTICIPATION	 	PARTICIPATION
	UNUM Life
Insurance Company of America
	 	$	30,000	 	 	 	100.0	%
	 
	 	 	 	 	 	 	 	 
	TOTAL AUTHORIZED
PARTICIPATION
	 	$	30,000	 	 	 	100.0	%

2

 

APPENDIX A-3

AGREEMENT YEAR 2002

January 1, 2002 to December 31, 2002

Member
Reinsurers who have contracted with Integrated Disability Resources, Inc. as Managing Agent
of ADRUS and their levels of participation are as follows:

	 	 	 	 	 	 	 	 	 
		 	DOLLAR	 	PERCENTAGE
	MEMBER REINSURER	 	PARTICIPATION	 	PARTICIPATION
	UNUM Life
Insurance Company of America
	 	$	30,000	 	 	 	100.0	%
	 
	 	 	 	 	 	 	 	 
	TOTAL AUTHORIZED
PARTICIPATION
	 	$	30,000	 	 	 	100.0	%

3

 

APPENDIX A-4

AGREEMENT YEAR 2003

January 1, 2003 to December 31, 2003

Member Reinsurers who have contracted with Integrated Disability Resources, Inc. as Managing Agent
of ADRUS and their levels of participation are as follows:

	 	 	 	 	 	 	 	 	 
		 	DOLLAR	 	PERCENTAGE
	MEMBER REINSURER	 	PARTICIPATION	 	PARTICIPATION
	UNUM Life
Insurance Company of America
	 	$	30,000	 	 	 	100.0	%
	 
	 	 	 	 	 	 	 	 
	TOTAL AUTHORIZED
PARTICIPATION
	 	$	30,000	 	 	 	100.0	%

4

 

APPENDIX A-5

AGREEMENT YEAR 2004

January 1, 2004 to December 31, 2004

Member Reinsurers who have contracted with Integrated Disability Resources, Inc. as Managing Agent
of ADRUS and their levels of participation are as follows:

	 	 	 	 	 	 	 	 	 
		 	DOLLAR	 	PERCENTAGE
	MEMBER REINSURER	 	PARTICIPATION	 	PARTICIPATION
	UNUM Life
Insurance Company of America
	 	$	30,000	 	 	 	100.0	%
	 
	 	 	 	 	 	 	 	 
	TOTAL AUTHORIZED
PARTICIPATION
	 	$	30,000	 	 	 	100.0	%

5

 

APPENDIX A-6

AGREEMENT YEAR 2005

January 1, 2005 to December 31, 2005

Member Reinsurers who have contracted with Integrated Disability Resources, Inc. as Managing Agent
of ADRUS and their levels of participation are as follows:

	 	 	 	 	 	 	 	 	 
		 	DOLLAR	 	PERCENTAGE
	MEMBER REINSURER	 	PARTICIPATION	 	PARTICIPATION
	UNUM Life
Insurance Company of America
	 	$	30,000	 	 	 	100.0	%
	 
	 	 	 	 	 	 	 	 
	TOTAL AUTHORIZED
PARTICIPATION
	 	$	30,000	 	 	 	100.0	%

6

 

APPENDIX A-7

AGREEMENT YEAR 2006

January 1, 2006 to December 31, 2006

Member Reinsurers who have contracted with Custom Disability Solutions as Managing Agent of ADRUS
and their levels of participation are as follows:

	 	 	 	 	 	 	 	 	 
		 	DOLLAR	 	PERCENTAGE
	
MEMBER REINSURER	 	PARTICIPATION	 	PARTICIPATION
	Reliance
Standard Life Insurance Company
	 	$	30,000	 	 	 	100.0	%
	 
	 	 	 	 	 	 	 	 
	TOTAL AUTHORIZED
PARTICIPATION
	 	$	30,000	 	 	 	100.0	%

7

 

APPENDIX A-8

AGREEMENT YEAR 2007

January 1, 2007 to December 31, 2007

Member Reinsurers who have contracted with Custom Disability Solutions as Managing Agent of ADRUS
and their levels of participation are as follows:

	 	 	 	 	 	 	 	 	 
	MEMBER	 	DOLLAR	 	PERCENTAGE
	REINSURER	 	PARTICIPATION	 	PARTICIPATION
	Reliance Standard Life
Insurance Company
	 	$	30,000	 	 	 	100.0	%
	TOTAL AUTHORIZED
PARTICIPATION
	 	$	30,000	 	 	 	100.0	%

8

 

APPENDIX A-9

AGREEMENT YEAR 2008

January 1, 2008 to December 31, 2008

Member Reinsurers who have contracted with Custom Disability Solutions as Managing Agent of ADRUS
and their levels of participation are as follows:

	 	 	 	 	 	 	 	 	 
	MEMBER	 	DOLLAR	 	PERCENTAGE
	REINSURER	 	PARTICIPATION	 	PARTICIPATION
	Reliance Standard Life
Insurance Company
	 	$	30,000	 	 	 	100.0	%
	TOTAL AUTHORIZED
PARTICIPATION
	 	$	30,000	 	 	 	100.0	%

9

 

APPENDIX A-10

AGREEMENT YEAR 2009

January 1, 2009 to December 31, 2009

Member Reinsurers who have contracted with Custom Disability Solutions as Managing Agent of ADRUS
and their levels of participation are as follows:

	 	 	 	 	 	 	 	 	 
	MEMBER	 	DOLLAR	 	PERCENTAGE
	REINSURER	 	PARTICIPATION	 	PARTICIPATION
	Reliance Standard Life
Insurance Company
	 	$	30,000	 	 	 	100.0	%
	TOTAL AUTHORIZED
PARTICIPATION
	 	$	30,000	 	 	 	100.0	%

10exv10w13

Exhibit 10.13

Symetra Financial Corporation

Performance Share Plan

2009-2011

The Purpose of the Plan:

	 	1.	 	The purpose of the Plan is to advance the interest of Symetra Financial Corporation
(the “Company”) and its owners by providing executive incentives and by providing for a
reasonable sharing of the financial performance of the enterprise.
	 
	 	2.	 	Summary: From time to time the Board of Directors of the Company (the “Board”) may
grant to an executive of the Company an award of Performance Shares. At the time of grant, each
Performance Share shall have the financial value of $100.00. Thereafter, the unit will have the
financial value of $100.00 x (1 + Aggregate Percentage Growth), conditioned upon attainment of a stated Performance
Goal over the Award Period specified in the Grant. At the end of the Award Period the Board
will determine the degree of attainment of the Performance Goal and will assign a Harvest
Percentage based on that determination. The matured Performance Shares will then be
exchanged for a cash payment equal to the then financial value of the shares multiplied by
the Harvest Percentage.
	 
	 	3.	 	Administration: The Plan shall be administered by the Board. The Board shall have
the authority to select the executives who shall be participants (“Participants”), to determine
the size and terms of an award, to modify the terms of any award that has been granted, to
determine the time when awards will be made, to determine the Award Periods applicable to an
award, to determine the Harvest Percentages applicable to an award, to determine the terms of a
Participant’s grant agreement (which need not be identical or uniform), to establish
Performance Goals in respect of such Award Periods, to certify whether such Performance Goals
were attained and to make such other determinations that are not prohibited by this plan. The
Board is authorized to interpret the plan to establish amend and rescind any rules and
regulations relating to the plan and to make any other determinations that it deems necessary
or desirable. Any decision of the Board in the interpretation and administration of the plan
shall lie within its sole and absolute discretion and shall be final conclusive and binding on
all parties concerned. Determinations made by the Board under the plan need not be uniform and
may be made selectively among participants regardless of whether such Participants are
similarly situated. The Board shall have the right to deduct from any payment made under the
plan any taxes required by law to be withheld with respect to such payment. The Board may
delegate its duties hereunder to its Compensation Committee.

					
	 	 	 	 	 
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	 	4.	 	Eligibility and Participation: The Board shall designate those executives who shall
be Participants. Participants shall be selected from among the executives who are in a position
to have a material impact on the financial results of the Company. The designation of the
Participants may be made individually or by groups or classifications of executives, as the
Board deems appropriate. Executives shall not have a right to be designated as Participants and
the designation of an executive as a Participant shall not obligate the Board to continue such
executive as a participant in subsequent periods.
	 
	 	5.	 	Grants:

(a) Grant: In each Grant the committee shall specify, among other matters, (i)
the number of Performance Shares awarded, (ii) the Award Period, (iii) the Performance
Goal(s) to be attained within the Award Period, (iv) the method for determining the Harvest
Percentage based upon the level of achievement of the Performance Goal(s), and (v) the
maximum Award Payment.

(b) Performance measures: The performance measures for any award shall be as
determined by the Board and as stated in the grant agreement. Normally the goal(s) will be
based on some reasonable measure of growth in economic value per share of the enterprise, or
on some similar measure of financial performance.

(c) Payment: As soon as practicable after the end of the Award Period, or such
earlier date as the Board in its sole discretion may designate, the Board shall determine
(i) whether the applicable Performance Goal(s) have been attained with respect to a given
award and (ii) the Harvest Percentage applied to a given award. At the end of the Award
Period the Board shall ascertain the actual value of the award. Unless otherwise determined
by the Board or otherwise set forth in a grant agreement the actual value of an award shall
be equal to the then financial value of the shares multiplied by the Harvest Percentage. A
Participant’s actual value will be settled through a cash payment to the Participant within
2 1/2 months after the end of the Award Period.

	 	6.	 	Termination of Employment: Except as set forth in Section 7 or otherwise set forth
in a grant agreement a Participant shall immediately forfeit all outstanding awards upon any
termination of employment prior to the end of the applicable Award Period. The Board may at its
discretion provide that if a Participant dies, retires, is disabled, or is granted a leave of
absence, or if the Participant’s employment is otherwise terminated in a manner reasonably
judged to be not seriously detrimental to the company, then all or a portion of the
Participant’s award, as determined by the Board, may be paid to the Participant (or beneficiary)
after the end of the Award Period or at such other time as determined by the Board.
	 
	 	7.	 	Change of Control: (a) If a termination event occurs with respect to a Participant
within 24 months after a Change of Control then each award held by such Participant that was
granted prior to the Change of Control shall be cancelled and such Participant shall be entitled
to receive in respect of each such canceled

					
	 	 	 	 	 
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	 	 	 	award a payment equal to the product of (i) the then financial value of 100% of the
Performance Shares and (ii) the applicable Harvest Percentage. The applicable Harvest
Percentage will be determined based on the extent to which the Performance Goal has been
achieved as of the last day of the calendar quarter ending prior to the date of the
applicable termination event. (b) Notwithstanding anything herein to the contrary, if,
following a change in control, a Participant’s employment remains continuous through the end
of an Award Period then the Participant shall be paid with respect to those awards for which
he would have been paid had there not been a change in control, and the actual value shall
be determined in accordance with section 5 above.
	 
	 	8.	 	Amendments or Termination: The Board may amend alter or discontinue the Plan, but
no amendment, alteration or discontinuation shall be made which would impair any of the rights
or obligations under any award theretofore granted to a Participant without such Participant’s
consent; provided, however, that the Board may amend the plan in such manner as it deems
necessary to permit the granting of awards meeting the requirements of the Internal Revenue
Code of 1986, as amended, or any successor thereto, or other applicable laws.
	 
	 	9.	 	No Right to Employment: Neither the Plan nor any action taken hereunder shall be
construed as giving any Participant or other person any right to continue to be employed by, or
to continue to perform services for, the Company or any subsidiary, and the right to terminate
the employment of or performance of services by any Participant at any time and for any reason
is specifically reserved to the Company and its subsidiaries.
	 
	 	10.	 	Nontransferability of Awards: An award shall not be transferable or assignable by
the Participant, other than as described in Section 17 of this Plan.
	 
	 	11.	 	Reduction of Awards: Notwithstanding anything to the contrary herein, the Board,
in its sole discretion (but subject to applicable law), may reduce any amounts payable to
any Participant hereunder in order to satisfy any liabilities owed to the Company or any
of its subsidiaries by the Participant.
	 
	 	12.	 	Participation of Subsidiaries: If a subsidiary wishes to participate in the Plan
and its participation shall have been approved by the Board, the Board of Directors of the
subsidiary shall adopt a resolution in form and substance satisfactory to the Committee
authorizing participation by the subsidiary in the Plan. A subsidiary that adopts the Plan
in accordance with the Section shall be permitted to rename the Plan under the name of such
subsidiary. A subsidiary may cease to participate in the Plan at any time by action of the
Board or by action of the Board of Directors of such subsidiary, which latter action shall
be effective not earlier than the date of delivery to the Secretary of the Company of a
certified copy of a resolution of the subsidiary’s Board of Directors taking such action.
Termination of participation in the Plan shall not relieve a subsidiary of any obligations
theretofore incurred by it under the Plan. The Board in its discretion may waive compliance
with any provisions in this section.

					
	 	 	 	 	 
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	 	13.	 	Claims Procedure: In general, any claim for benefits under the Plan shall be filed
with the Board of Directors by a Participant or beneficiary. The Board will consider the claim
promptly.
	 
	 	14.	 	Miscellaneous Provisions: The Company is the sponsor and legal obligor under the
Plan and shall make all payments hereunder, other than any payments to be made by any of
the subsidiaries, as described below (in which case such payments shall be made by such
subsidiary, as appropriate). If a subsidiary adopts the Plan in accordance with Section 12,
the subsidiary shall be responsible for all payments made under the Plan for Awards granted
by the Board of Directors of the subsidiary including expenses involved in administering
the Plan at the subsidiary level. The Plan is unfunded. The Company shall not be required
to establish any special or separate fund or to make any other segregation of assets to
ensure the payment of any amounts under the Plan, and the Participant’s rights to any
payment hereunder shall be no greater than the rights of the Company’s (or the applicable
subsidiary’s) unsecured creditors. All references to Sections herein shall be deemed to be
references to the specified sections of this Plan.
	 
	 	15.	 	Taxes: The Company and its subsidiaries shall have the right to deduct from any
payment made under the Plan any taxes required by law to be withheld with respect to such
payment.
	 
	 	16.	 	Choice of Law: The Plan shall be governed by and construed in accordance with the
laws of Washington State.
	 
	 	17.	 	Designation of Beneficiary by Participant: A Participant may name a beneficiary
to receive any payment to which he/she may be entitled in respect to a Grant in the event
of his/her death. A Participant may change his/her beneficiary from time to time. If the
Participant has not designated a beneficiary, or if no designated beneficiary is living on
the date on which any amount becomes payable, that amount shall be paid to the
Participant’s estate.
	 
	 	18.	 	Schedule of Definitions: The attached Schedule of Definitions shall be considered
an integral part of this Plan.
	 
	 	19.	 	Effective Date of the Plan: The Plan shall be effective as of January 1, 2009.

IN WITNESS WHEREOF, Symetra Financial Corporation has caused this Plan to be executed this 14
day of May, 2009.

	 	 	 	 	 
	 	Symetra Financial Corporation

 	 
	 	By  	/s/ Christine A. Katzmar
 	 
	 	 	Its Vice President 	 
	 	 	 	 
	 

					
	 	 	 	 	 
	May 2009
	 	-4-
	 	 

 

 

Symetra Financial Corporation

Performance Share Plan

2009-2011 Schedule of Definitions

Terms used in the Plan or in a Grant shall have the following meanings:

Annualized Return on Equity: Symetra’s average Return on Equity over the Award Period.

Change of Control: shall mean the occurrence of the following event:

If any person or group (within the meaning of sections 13(d) or 14(d)2 of the Exchange Act) other
than White Mountains Insurance Group, Ltd or Berkshire Hathaway, Inc or any of their subsidiary or
affiliated companies, an underwriter temporarily holding securities of the Company in connection
with a public issuance thereof, or an employee benefit plan of the Company or its affiliates
becomes the beneficial owner (within the meaning of rule 13d-3 under the Exchange Act) of
thirty-five percent or more of the then outstanding common stock of the Company.

Discretionary Harvest Percentage Adjustment: shall be determined by the Board by either adding or
subtracting up to 10% to the Harvest Percentage.

Grant: shall mean an offer by the Board to an executive to participate in the Performance Share
Plan. Such Grant will specify the number of Performance Shares being granted, the Performance
Goal(s), the Award Period, the method for judging attainment of the goal(s) and for setting the
Harvest Percentage, a maximum award value if any, and other relevant terms.

Harvest Percentage: shall be determined by the Board at the end of the Award Period specified in
the Grant, and will represent the Board’s judgment of the degree to which the Company’s actual
financial performance has met the Performance Goal(s) specified in the Grant. Normally the Harvest
Percentage will range from 0% thru 200% according to a scale specified in the Grant. This Harvest
Percentage will then be multiplied by the financial value of the Performance Shares granted, to
produce the actual cash value of the Grant.

Minimum Threshold: shall be the average of the 10 Year Treasury over 3 years (according to
Bloomberg GT10 index).

Modified Operating Income: shall be determined by calculating net income minus realized
gains/(losses) minus hedge fund investment income plus 30 year ‘A’ Bond investment income
(according to Bloomberg C00730 index) substituted for equities/hedge fund performance (valued
quarterly). All calculations are after tax.

Modified Operating Return on Equity: shall mean Modified Operating Income divided by beginning of
year GAAP Book Value.

May 2009

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Performance Share: a unit granted to an executive under the Performance Share Plan. The unit will
have the financial value of $100.00 at the time of grant. Thereafter, the unit will have the
financial value of $100.00 x (1 + Aggregate Percentage Growth), conditioned upon the attainment of
a specified Performance Goal(s) over a specified Award Period.

Related Employment: shall mean the employment of a participant by an employer who is not the
Company or an affiliate of the Company, provided (i) such employment is undertaken by the
participant and continued at the request of the Company; (ii) immediately prior to undertaking such
employment the participant was an employee of the Company, or any of its affiliates or was engaged
in related employment; and (iii) such employment is recognized by the Board, in its sole
discretion, as related employment.

Return on Equity: Symetra’s growth in beginning of year GAAP Book Value.

Termination event: shall be considered for this plan to be a Termination Without Cause or to be a
Constructive Termination.

	a.	 	Termination Without Cause: A termination of the Participant’s employment with the Company or a
subsidiary by the Company or the subsidiary other than (i) due to the Participant’s death or
disability as defined in the Performance Plan Grant, or (ii) for Cause. A transfer of a
Participant’s employment to an affiliate of the Company shall not, by itself, be considered a
Termination without Cause hereunder. For this purpose, “Cause” shall mean (a) an act or omission
by the Participant that constitutes a felony, (b) willful gross negligence or willful gross
misconduct by the Participant in connection with his employment by the Company or by a subsidiary
which causes, or is likely to cause, material loss or damage to the Company. Notwithstanding
anything herein to the contrary, a termination of a Participant’s employment with the Company or
one of its subsidiaries due solely to the consummation of a corporate transaction described in
clause (i) of the definition of Change in Control shall not be deemed to be a “Termination Without
Cause” if the Participant is employed by the acquiror or one of its affiliates and the acquiror or
one of its affiliates formally assumes the Company’s obligations under this Plan or places the
Participant in a similar or like plan with no diminution of the value of the awards granted.

	b.	 	Constructive Termination. A termination of employment with the Company and its affiliates at
the initiative of the Participant that the Participant declares, by prior written notice delivered
to the Secretary of the Company, to be a Constructive Termination by the Company or an affiliate
and which follows (i) a material decrease in his/her salary or (ii) a material diminution in the
authority, duties or responsibilities of his/her position as a result of which the Participant
determines in good faith that he/she cannot continue to carry out his/her job in substantially the
same manner as it was intended to be carried out immediately before such diminution.
Notwithstanding anything herein to the contrary, a Constructive Termination shall not occur until
and unless 30 days have elapsed from the date the Company receives such written notice from the
Participant and, during that period, the Company fails to cure, or cause to be cured, the
circumstance serving as the basis on which the declaration of Constructive Termination is given.

May 2009

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Symetra Financial Corporation

Performance Share Plan

2009-2011 Grant

     THIS GRANT (this “Grant”) is made, effective as of the 1st of January, 2009, between
Symetra Financial Corporation (the “Company”) and NAME (the “Participant”).

RECITALS:

     WHEREAS, the Company has adopted the Performance Share Plan (“Plan”), which Plan is
incorporated herein by reference and made part of this Grant; and

     WHEREAS, the Board has determined that it would be in the best interest of the Company
and its owners to grant the award provided for herein to the Participant pursuant to the
Plan and the terms set forth herein.

     NOW THEREFORE, in consideration of mutual covenants the parties hereto agree as
follows:

1. Grant: Subject to the terms and conditions of the Plan and the additional terms and conditions
set forth in this Grant, the Company hereby grants to the Participant a Performance Share Award of ______ shares.

2. Award Period: The Award Period shall be January 1, 2009 through December 31, 2011.

3. Performance Goal: The Performance Goal shall be a 13% Modified Operating Return on Equity
averaged over the Award Period which shall be measured by Modified Operating Income divided by
beginning of year GAAP Book Value. Modified Operating Income equals net income minus realized
gains/(losses) minus hedge funds investment income plus 30 year ‘A’ Bond investment income
substituted for equities/hedge fund performance (valued quarterly).

4. Harvest Percentage: Shall be dependent on the extent to which the Performance Goal is attained,
and shall be determined as follows:

	 	 	 
	Performance Goal	 	Harvest Percentage
	8% or lower
	 	0%
	13%
	 	100%
	18% or higher
	 	200%

For annualized percentage growth between 8% and 18%, the Harvest Percentage will be determined on
the basis of straight line interpolation.

August 2009

-1-

 

A Minimum Threshold must be met before a Harvest Percentage is assigned. That minimum shall be the
average of the 10 year Treasury over the Award Period compared to the Company’s Annualized Return on Equity over the Award Period.

At the Board’s discretion, a Discretionary Harvest Percentage Adjustment may be added or subtracted
to the Harvest Percentage by up to 10% based on factors determined by the Board.

5. Award Payment: Subject to all terms and conditions of the Plan, the Participant’s actual value
at the end of the Award Period will be settled through a cash payment to the Participant. Unless
otherwise determined by the Board or otherwise set forth in a Grant, a Participant’s actual value
with respect to an Award shall be equal to the then financial value of the shares multiplied by the
Harvest Percentage.

6. Termination of Employment: Except as provided in Section 6 or Section 7 of the Plan, this Award
shall be canceled, and no payment shall be payable hereunder, if the Participant’s continuous
employment or Related Employment with the Company shall terminate for any reason prior to the end
of the Award Period.

7. Successor Requirement: This Grant shall inure to the benefit of and be binding upon the Company
and its successors and assigns. The Company shall request any purchaser of a business unit in
which the Participant is employed (a “Purchaser”), to fully assume the obligations of the Company
under this Grant. If a Purchaser declines to assume such obligations, the Company shall remain
obligated under the terms of this Grant and the Board, in its sole discretion, may elect to cancel
the Grant and to make an Award Payment based on the applicable measures at the time of purchase or
in accordance with Section 7 of the Plan, if the Plan’s Change in Control provisions are
applicable.

8. Definitions: All terms not otherwise defined herein shall have the same meaning as in the Plan.

9. Withholding: The Participant agrees to make appropriate arrangements with the Company for
satisfaction of any applicable income tax withholding requirements, including the payment to the
Company, at the termination of the Award Period (or such earlier or later date as may be applicable
under the Code), of all such taxes and other amounts, and the Company shall be authorized to take
such action as may be necessary, in the opinion of the company’s counsel (including, without
limitation, withholding amounts from any compensation or other amount owing from the Company to the
Participant), to satisfy all obligations for the payment of such taxes and other amounts.

10. Reduction of the Award: Notwithstanding anything to the contrary herein, the Board, in its
sole discretion (but subject to applicable law), may reduce any amounts payable to the Participant
in order to satisfy any liabilities owed to the Company by the Participant.

August 2009

-2-

 

11. No Right to Continued Employment: Neither the Plan nor this Grant shall be construed as giving
the Participant the right to be retained in the employ of, or in any consulting relationship to,
the Company or any of its subsidiaries. Further, the Company may at any time dismiss the
Participant or discontinue any consulting relationship, free from any liability or any claim under
the Plan or this Grant, except as otherwise expressly provided in the Plan and in this Grant. In
addition, nothing herein shall obligate the Company to make future Grants to the Participant.

12. Award Subject to Plan: By entering in this Grant the Participant agrees and acknowledges that
the Participant has received and read a copy of the Plan and that this Award is subject to all of
the terms and provisions set forth in the Plan and in this Grant. In the event of a conflict
between any term or provision contained in this Grant and a terms or provision of the Plan, the
applicable terms and provisions of the Plan will govern and prevail.

13. Designation of Beneficiary by Participant: A Participant may name a beneficiary to receive any
payment to which he/she may be entitled in respect of this Award in the event of his/her death, by
notifying the Company. A Participant may change his/her beneficiary from time to time in the same
manner. If the Participant has not designated a beneficiary or if no designated beneficiary is
living on the date on which any amount becomes payable to a Participant’s beneficiary, that amount
shall be paid to the Participant’s estate.

14. Notices: Any notice necessary under this Grant shall be addressed to the Company and to the
Participant at the address appearing in the personnel records of the Company for such Participant
or to either party at such other address as such party hereto may hereafter designate in writing to
the other. Any such notice shall be deemed effective upon receipt thereof by the addressee.

15. Signature in Counterparts: This Grant may be signed in counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto were upon the same
instrument.

     IN WITNESS WHEREOF, the parties hereto have executed this Grant as of the date(s) listed
below.

	 	 	 	 	 	 	 
	Participant	 	 	Symetra Financial Corporation

 	 
	 	 	 	By  	 	 
	Name	Date 	 	 	Randall H. Talbot, President & CEO 	 
	 	 	 	 	 	 
	 

August 2009

-3-

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