Document:

FORM OF EMPLOYMENT AGREEMENT

 

Exhibit 10.02

EMPLOYMENT AGREEMENT

     EMPLOYMENT AGREEMENT, dated as of July 1, 1997, by and between The
Hartford Financial Services Group, Inc., a Delaware corporation (the
“Company”), and David K. Zwiener (“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 July 1, 1997
(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 fifteen months prior
to such Renewal Date. 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 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 which 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.”

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	2.	 	Position and Duties.

During the Employment Period, Executive shall serve as Executive Vice
President and Chief Financial Officer 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”) or the Chairman of the Company (the “Chairman”) 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 or the
Chairman 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, judgement, 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 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 or the Chairman, (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

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payable hereunder, as it may be increased or reduced from time to
time as provided herein and without reduction for any 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 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 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

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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.

(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 and in accordance with the
generally applicable policies and procedures of the Company.

(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 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 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 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.

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(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.

(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	 	Welfare
	 	 	Accrued	 	Pro Rata Target	 	Severance	 	 	 	 	 	Benefits	 	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
	 	Determined Under

the Applicable Plan
	 	Payable
	 	Available
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	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 be
not be made available to Executive, except to the extent
required by applicable law.

“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 days before the

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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 the 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.

“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.

“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 an 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.

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“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 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.

“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 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 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

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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 neglect, (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 Conduct of the Company.

“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 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 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.

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“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 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.

	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.

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(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. 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 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).
	 
	(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.

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(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.

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BENEFITS PAYABLE: CHANGE OF CONTROL

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

14

 

(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 Exchange 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 Exchange 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 Exchange
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 cosummated, other
than any such

15

 

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;

(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 Hartford 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 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.

“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, (ii) in the case
of a Termination Without Cause, a written notice given by the
Company to Executive at least 30 calendar days

16

 

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 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 be not 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 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.

“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 event shall occur which is deemed to be a
Potential Change of Control by the Board or the appropriate
Committee thereof.

17

 

“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 of Termination, and (ii) Executive’s Target Bonus for
such year.

“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.

“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 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 Termination to the Company, and the facts and
circumstances specified therein as providing

18

 

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 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 the 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.

(d) 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 the Executive may require such services.

(e) 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

19

 

paid or distributed to Executive by the Company or any affiliate
(collectively, by the “Covered Payments”), are or become subject
to the tax (the “Excise Tax”) imposed under Section 4999 of the
Internal Revenue Code of 1986, as amended, 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 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 incomes 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

20

 

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 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, 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

21

 

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. 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.

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

22

 

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
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 of 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) 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.

23

 

(e) 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, 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
(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 Sections 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
and Company property), 10(b) (relating to arbitration), 10(c)
(relating to legal fees) 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.

24

 

(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 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 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) or Section
9(c) are not enforceable in accordance with their terms,
Executive and the Company agree that

25

 

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 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):

26

 

	 	 	 
	If to the 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.

(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 EMPLOYMENT AGREEMENT

 

Exhibit 10.03

EMPLOYMENT AGREEMENT

     EMPLOYMENT AGREEMENT, dated as of July 1, 2000, by and between The
Hartford Financial Services Group, Inc. (“The Hartford” or the “Company”), a
Delaware corporation, and Thomas M. Marra (“Executive”).

WITNESSETH:

          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 employee Executive for the period commencing on July 1, 2000, (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 fifteen months prior to such
Renewal Date. 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 65, and such a termination upon
Executive reaching age 65

1

 

shall be deemed to be a Termination Due to Retirement for purposes of this
Agreement. The period during which 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 Executive Vice President
of The Hartford and Chief Operating Officer of Hartford Life, Inc. 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”) or the Chairman of the Company (the “Chairman”) 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
or the Chairman 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, judgement, 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 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 or the Chairman, (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 amounts deferred as described above, shall be referred to herein as “Base Salary.” The Company shall

2

 

	 	 	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 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
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.

3

 

	(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 and in
accordance with the generally applicable policies and procedures of
the Company.
	 
	(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 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 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 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.

4

 

	 	(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.

5

 

BENEFITS PAYABLE: NON-CHANGE OF CONTROL

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

	 FORM OF	 	 	 	 	 	 	 	Determined Under the	 	Determined Under the	 	 	 	Determined Under the
	 PAYMENT:
	 	Lump Sum
	 	Lump Sum
	 	Lump Sum
	 	Applicable Plan
	 	Applicable Plan
	 	Lump Sum
	 	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
	 	Determined Under the Applicable Plan
	 	Payable
	 	Available
	

	 	 	 	 	 	 	 	Other Equity Awards: 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

6

 

(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 be
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 relevant Board or the appropriate
committee of the Board in its discretion.

7

 

“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, 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 the 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 an 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 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.

“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.

8

 

“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 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 neglect, (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 Conduct of the Company.

“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 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

9

 

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 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.

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

10

 

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. 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 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).
	 
	 	(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.

11

 

	 	(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 the purposes of this Agreement to be the day
following the date of the applicable consummation.

12

 

BENEFITS PAYABLE: CHANGE OF CONTROL

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

	 FORM OF	 	 	 	 	 	 	 	Determined Under the	 	Determined Under the	 	 	 	Determined Under the
	 PAYMENT
	 	Lump Sum
	 	Lump Sum
	 	Lump Sum
	 	Applicable Plan
	 	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
	 
	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 Exchange 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 Exchange 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 Exchange 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);

14

 

	 	(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;
	 
	 	(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
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.

15

 

	 	 	 	“Not Payable” means that a 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, (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 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 be not 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 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.
	 
	 	 	 	“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 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;

16

 

	 	(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 event 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.

“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.

“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

17

 

	 	(v)	 	any attempt by the Company to
terminate the 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 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.

“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 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
terminates because of a Termination Without Cause or a
Termination For Good Reason, Executive shall be entitled
to out-

18

 

	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 the
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 Internal Revenue
Code of 1986, as amended, 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 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

19

 

	 	 	 	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 incomes
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 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,

20

 

	 	 	 	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 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

21

 

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. 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.

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. The Company shall, in its sole discretion,
have the right to enforce or waive the terms of this
provision in connection with the Restriction Period. If
the Company exercises its right to enforce this
provision for the Restriction Period, the Company will
provide Executive with written notice of its intent to
enforce and agrees to pay Executive one year of
Executive’s then current Base Salary and one year of
Executive’s then current Target Bonus as compensation
for the Restriction Period. Executive agrees that the
terms of the Restriction Period are reasonable and that
this compensation is above and beyond any amounts
necessary to support the terms of the Restriction Period
a set forth herein. 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

22

 

	 	 	 	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 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, 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)	 	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.
	 
	 	(e)	 	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, 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 (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.

23

 

10. Miscellaneous.

	 	(a)	 	Survival. All of the provisions of
Sections 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 and Company property), 10(b)
(relating to arbitration), 10(c) (relating to legal
fees) 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 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

24

 

	 	 	 	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) or Section 9(c) 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
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):

25

 

	 	 	 
	If to the 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.

27

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