Document:

exv10w11

Exhibit
10.11

 

Symetra Financial Corporation

Performance Share Plan

2007-2009

The Purpose of the Plan:

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

      

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

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

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

(c) Payment: As soon as practicable after the end of the Award Period, or
such earlier date as the Board in its sole discretion may designate, the Board shall
determine (i) whether the applicable Performance Goal(s) have been attained with
respect to a given award and (ii) the Harvest Percentage applied to a given award. At
the end of the Award Period the Board shall ascertain the actual value of the award.
Unless otherwise determined by the Board or otherwise set forth in a grant agreement
the actual value of an award shall be equal to the then financial value of the shares
multiplied by the Harvest Percentage. A Participant’s actual value will be settled
through a cash payment to the Participant within 21/2 months after the
end of the Award Period.

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

      

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

      

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	 	13.	 	Claims Procedure: In general, any claim for benefits
under the Plan shall be filed with the Board of Directors by a Participant or
beneficiary. The Board will consider the claim promptly.
	 
	 	14.	 	Miscellaneous Provisions: The Company is the sponsor and legal
obligor under the Plan and shall make all payments hereunder, other than any payments to
be made by any of the subsidiaries, as described below (in which case such payments shall
be made by such subsidiary, as appropriate). If a subsidiary adopts the Plan in
accordance with Section 12, the subsidiary shall be responsible for all payments made
under the Plan for Awards granted by the Board of Directors of the subsidiary including
expenses involved in administering the Plan at the subsidiary level. The Plan is
unfunded. The Company shall not be required to establish any special or separate fund or
to make any other segregation of assets to ensure the payment of any amounts under the
Plan, and the Participant’s rights to any payment hereunder shall be no greater than the
rights of the Company’s (or the applicable subsidiary’s) unsecured creditors. All
references to Sections herein shall be deemed to be references to the specified sections
of this Plan.
	 
	 	15.	 	Taxes: The Company and its subsidiaries shall have the right to
deduct from any payment made under the Plan any taxes required by law to be withheld with
respect to such payment.
	 
	 	16.	 	Choice of Law: The Plan shall be governed by and construed in
accordance with the laws of Washington State.
	 
	 	17.	 	Designation of Beneficiary by Participant: A
Participant may name a beneficiary to receive any payment to which he/she may be entitled
in respect to a Grant in the event of his/her death. A Participant may change his/her
beneficiary from time to time. If the Participant has not designated a beneficiary, or if
no designated beneficiary is living on the date on which any amount becomes payable, that
amount shall be paid to the Participant’s estate.
	 
	 	18.	 	Schedule of Definitions: The attached Schedule of Definitions
shall be considered an integral part of this Plan.
	 
	 	19.	 	Effective Date of the Plan: The Plan shall be effective as of January 1, 2007.

IN WITNESS WHEREOF, Symetra Financial Corporation has caused this Plan to be
executed this 1st day of March, 2007.

	 	 	 	 	 	 	 	 	 
	 	 	Symetra Financial Corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	/s/ Christine A. Katzmar 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Its	 	Vice President 	 	 
	 

	 	 	 	 	 	 	 	 

      

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Symetra Financial Corporation

Performance Share Plan

2007-2009

Schedule of Definitions: terms used in the Plan or in a Grant shall
have the following meanings:

Aggregate Percentage Growth: shall equal the average of the aggregate
percentage growth in the GAAP Book Value and the aggregate percentage growth in Enterprise
Value.

Change of Control: shall mean the occurrence of any of the following events:

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

Enterprise Value (EV): shall mean the value of the Company
calculated as outlined below:

	 	1.	 	Calculate enterprise value in two pieces. The first piece is the enterprise
value for Income Annuities [EV(IA)] on a stand-alone basis. The second piece is the
enterprise value for the entire company less the enterprise value for Income
Annuities.
	 
	 	2.	 	Calculate the enterprise value growth of Income Annuities as:

	 	a.	 	(Ending EV(IA) — Beginning EV(1A) + Distributable Earnings)/ Beginning EV(IA).
	 
	 	b.	 	Distributable Earnings equals the after-tax net income for Income
Annuities plus change in required capital.

	 	3.	 	Calculate the enterprise value growth of non-Income Annuities portion of
the company as:

	 	a.	 	Ending EV(non-IA)/Beginning EV(non-IA)- 1

	 	4.	 	Calculate the harvest percentage for each of the enterprise value pieces.
The harvest percentage is calculated using linear interpolation between the following data
points:

	 	a.	 	0% if the enterprise value growth is less than or equal to 10%
	 
	 	b.	 	100% if the enterprise value growth is equal to 13%
	 
	 	c.	 	200% if the enterprise value growth is greater than or equal to 16%

	 	5.	 	Calculate the blended harvest percentage as:

      

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	 	a.	 	20% x harvest percentage for Income Annuities + 80% x harvest percentage for non-Income Annuities

	 	6.	 	Calculate a blended total company enterprise value growth using linear interpolation
between the following data points:

	 	a.	 	10% if the blended harvest percentage is less than or equal to 0%
	 
	 	b.	 	13% if the blended harvest percentage is equal to 100%
	 
	 	c.	 	16% if the blended harvest percentage is greater than or equal to 200%

The calculation of enterprise value will be adjusted for dividends and capital contributions
as needed. The regular calculation of enterprise value will be performed by management at
least annually, and estimated at interim quarters. The Board may require an audit of the
calculation by an outside actuarial or other firm, at its sole discretion. In general, the
calculation will be reasonably consistent with methodologies utilized by Milliman USA, as
adjusted by Watson Wyatt, in their actuarial appraisal of the insurance operations of the
Company which was used in the purchase of the insurance operations.

If a regularly traded public market value becomes available for the stock in the Company, the
Board, in its sole discretion, may consider that that market value be substituted for the EV,
or may use some combination thereof.

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

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

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

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

      

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

	 	a.	 	Termination Without Cause: A termination of the Participant’s
employment with the Company or a subsidiary by the Company or the subsidiary other
than (i) due to the Participant’s death or disability as defined in the Performance
Plan Grant, or (ii) for Cause. A transfer of a Participant’s employment to
an affiliate of the Company shall not, by itself, be considered a Termination without
Cause hereunder. For this purpose, “Cause” shall mean
(a) an act or omission by the Participant that constitutes a felony, (b) willful
gross negligence or willful gross misconduct by the Participant in connection with
his employment by the Company or by a subsidiary which causes, or is likely to
cause, material loss or damage to the Company. Notwithstanding anything herein to
the contrary, a termination of a Participant’s employment with the Company or one
of its subsidiaries due solely to the consummation of a corporate transaction
described in clause (i) of the definition of Change in Control shall not be deemed
to be a “Termination Without Cause” if the Participant is employed by the acquiror
or one of its affiliates and the acquiror or one of its affiliates formally
assumes the Company’s obligations under this Plan or places the Participant in a
similar or like plan with no diminution of the value of the awards granted.
	 
	 	b.	 	Constructive Termination. A termination of employment with the
Company and its affiliates at the initiative of the Participant that the Participant
declares, by prior written notice delivered to the Secretary of the Company, to be a
Constructive Termination by the Company or an affiliate and which follows (i) a
material decrease in his/her salary or (ii) a material diminution in the authority,
duties or responsibilities of his/her position as a result of which the Participant
determines in good faith that he/she cannot continue to carry out his/her job in
substantially the same manner as it was intended to be carried out immediately before
such diminution. Notwithstanding anything herein to the contrary, a Constructive
Termination shall not occur until and unless 30 days have elapsed from the
date the Company receives such written notice fiom the Participant and, during that
period, the Company fails to cure, or cause to be cured, the circumstance serving as
the basis on which the declaration of Constructive Termination is given.

      

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Symetra Financial Corporation

Performance Share Plan

2007-2009 Grant

     THIS GRANT (this “Grant”) is made, effective as of the 1st of January, 2007,
between Symetra Financial Corporation (the “Company”) and                                          (the
“Participant”).

RECITALS:

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

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

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

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

2. Award Period: The Award Period shall be January 1, 2007 through December 31,
2009.

3. Performance Goal: The Performance Goal shall be a 13% compound annualized
growth in the intrinsic business value of the company, which shall be measured by the average
of the compound annualized growth rates during the Award Period of (a) the Enterprise Value
(EV) per share and (b) the GAAP Book Value per share, excluding unrealized gains or losses
other than unrealized gains or losses on equities held as investments.

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

	 	 	 	 	 
	     Growth in intrinsic business value	 	Harvest Percentage
	10% or lower
	 	 	0	%
	13%
	 	 	100	%
	16% or higher
	 	 	200	%

For annualized percentage growth between 10% and 16%, the Harvest Percentage will be
determined on the basis of straight line interpolation.

      

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

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

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

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

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

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

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

      

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

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

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

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

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

	 	 	 	 	 	 	 
	Participant	 	 	 	Symetra Financial Corporation
	 
	 	 	 	 	 	 
	 

	 	 	 	By	 	 
	 

	 	 	 	 	 	 
	Name/Date	 	 	 	Name/Date/Title

      

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- 3  -exv10w12

Exhibit 10.12

Symetra Financial Corporation

Performance Share Plan

2008-2010

The Purpose of the Plan:

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

					
	 	 	 	 	 
	March 4, 2008
	 	-1-
	 	 

 

 

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

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

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

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

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

					
	 	 	 	 	 
	March 4, 2008
	 	-2-
	 	 

 

 

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

					
	 	 	 	 	 
	March 4, 2008
	 	-3-
	 	 

 

 

	 	13.	 	Claims Procedure: In general, any claim for benefits under the Plan shall be filed
with the Board of Directors by a Participant or beneficiary. The Board will consider the claim
promptly.
	 
	 	14.	 	Miscellaneous Provisions: The Company is the sponsor and legal obligor under the
Plan and shall make all payments hereunder, other than any payments to be made by any of
the subsidiaries, as described below (in which case such payments shall be made by such
subsidiary, as appropriate). If a subsidiary adopts the Plan in accordance with Section 12,
the subsidiary shall be responsible for all payments made under the Plan for Awards granted
by the Board of Directors of the subsidiary including expenses involved in administering
the Plan at the subsidiary level. The Plan is unfunded. The Company shall not be required
to establish any special or separate fund or to make any other segregation of assets to
ensure the payment of any amounts under the Plan, and the Participant’s rights to any
payment hereunder shall be no greater than the rights of the Company’s (or the applicable
subsidiary’s) unsecured creditors. All references to Sections herein shall be deemed to be
references to the specified sections of this Plan.
	 
	 	15.	 	Taxes: The Company and its subsidiaries shall have the right to deduct from any
payment made under the Plan any taxes required by law to be withheld with respect to such
payment.
	 
	 	16.	 	Choice of Law: The Plan shall be governed by and construed in accordance with the
laws of Washington State.
	 
	 	17.	 	Designation of Beneficiary by Participant: A Participant may name a beneficiary
to receive any payment to which he/she may be entitled in respect to a Grant in the event
of his/her death. A Participant may change his/her beneficiary from time to time. If the
Participant has not designated a beneficiary, or if no designated beneficiary is living on
the date on which any amount becomes payable, that amount shall be paid to the
Participant’s estate.
	 
	 	18.	 	Schedule of Definitions: The attached Schedule of Definitions shall be considered
an integral part of this Plan.
	 
	 	19.	 	Effective Date of the Plan: The Plan shall be effective as of January 1, 2008.

IN WITNESS WHEREOF, Symetra Financial Corporation has caused this Plan to be executed this 5 day
of March, 2008.

	 	 	 	 	 
	 	Symetra Financial Corporation

 	 
	 	By  	/s/ Christine A. Katzmar
 	 
	 	 	Its Vice President 	 
	 	 	 	 
	 

					
	 	 	 	 	 
	March 4, 2008
	 	-4-
	 	 

 

 

Symetra Financial Corporation

Performance Share Plan

2008-2010

Schedule of Definitions: terms used in the Plan or in a Grant shall have the following
meanings:

Aggregate Percentage Growth: shall equal the average of the aggregate percentage
growth in the GAAP Book Value and the aggregate percentage growth in Enterprise Value.

Change of Control: shall mean the occurrence of any of the following events:

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

Enterprise Value (EV): shall mean the value of the Company calculated as outlined below:

	 	1.	 	Calculate enterprise value in two pieces. The first piece is the enterprise value for Income
Annuities [EV(IA)] on a stand-alone basis. The second piece is the enterprise value for the entire
company less the enterprise value for Income Annuities.
	 
	 	2.	 	Calculate the enterprise value growth of Income Annuities as:

	 	a.	 	(Ending EV(IA)- Beginning EV(IA) + Distributable Earnings) / Beginning EV(IA).
	 
	 	b.	 	Distributable Earnings equals the after-tax net income for Income Annuities plus change in
required capital.

	 	3.	 	Calculate the enterprise value growth of non-Income Annuities portion of the company as:

	 	a.	 	Ending EV(non-IA) / Beginning EV(non-IA) — 1

	 	4.	 	Calculate the harvest percentage for each of the enterprise value pieces. The harvest
percentage is calculated using linear interpolation between the following data points:

	 	a.	 	0% if the enterprise value growth is less than or equal to 10%
	 
	 	b.	 	100% if the enterprise value growth is equal to 13%
	 
	 	c.	 	200% if the enterprise value growth is greater than or equal to 16%

	 	5.	 	Calculate the blended harvest percentage as:

					
	 	 	 	 	 
	March 4, 2008
	 	-1-
	 	 

 

 

	 	a.	 	20% x harvest percentage for Income Annuities + 80% x harvest percentage for non-Income
Annuities

	 	6.	 	Calculate a blended total company enterprise value growth using linear interpolation between
the following data points:

	 	a.	 	10% if the blended harvest percentage is less than or equal to 0%
	 
	 	b.	 	13% if the blended harvest percentage is equal to 100%
	 
	 	c.	 	16% if the blended harvest percentage is greater than or equal to 200%

The calculation of enterprise value will be adjusted for dividends and capital contributions as
needed. The regular calculation of enterprise value will be performed by management at least
annually, and estimated at interim quarters. The Board may require an audit of the calculation by
an outside actuarial or other firm, at its sole discretion. In general, the calculation will be
reasonably consistent with methodologies utilized by Milliman USA, as adjusted by Watson Wyatt, in
their actuarial appraisal of the insurance operations of the Company which was used in the
purchase of the insurance operations.

If a regularly traded public market value becomes available for the stock in the Company, the
Board, in its sole discretion, may consider that that market value be substituted for the EV, or
may use some combination thereof.

Grant: shall mean an offer by the Board to an executive to participate in the Performance
Share Plan. Such Grant will specify the number of Performance Shares being granted, the Performance
Goal(s), the Award Period, the method for judging attainment of the goa1(s) and for setting the
Harvest Percentage, a maximum award value if any, and other relevant terms.

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

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

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

					
	 	 	 	 	 
	March 4, 2008
	 	-2-
	 	 

 

 

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

	 	a.	 	Termination Without Cause: A termination of the Participant’s employment with
the Company or a subsidiary by the Company or the subsidiary other than (i) due to the
Participant’s death or disability as defined in the Performance Plan Grant, or (ii) for
Cause. A transfer of a Participant’s employment to an affiliate of the Company shall not,
by itself, be considered a Termination without Cause hereunder. For this purpose, “Cause”
shall mean (a) an act or omission by the Participant that constitutes a felony, (b) willful
gross negligence or willful gross misconduct by the Participant in connection with his
employment by the Company or by a subsidiary which causes, or is likely to cause, material
loss or damage to the Company. Notwithstanding anything herein to the contrary, a
termination of a Participant’s employment with the Company or one of its subsidiaries due
solely to the consummation of a corporate transaction described in clause (i) of the
definition of Change in Control shall not be deemed to be a “Termination Without Cause” if
the Participant is employed by the acquiror or one of its affiliates and the acquiror or
one of its affiliates formally assumes the Company’s obligations under this Plan or places
the Participant in a similar or like plan with no diminution of the value of the awards
granted.
	 
	 	b.	 	Constructive Termination. A termination of employment with the Company and its
affiliates at the initiative of the Participant that the Participant declares, by prior
written notice delivered to the Secretary of the Company, to be a Constructive Termination
by the Company or an affiliate and which follows (i) a material decrease in his/her salary
or (ii) a material diminution in the authority, duties or responsibilities of his/her
position as a result of which the Participant determines in good faith that he/she cannot
continue to carry out his/her job in substantially the same manner as it was intended to be
carried out immediately before such diminution. Notwithstanding anything herein to the
contrary, a Constructive Termination shall not occur until and unless 30 days have elapsed
from the date the Company receives such written notice from the Participant and, during
that period, the Company fails to cure, or cause to be cured, the circumstance serving as
the basis on which the declaration of Constructive Termination is given.

					
	 	 	 	 	 
	March 4, 2008
	 	-3-
	 	 

 

 

Symetra Financial Corporation

Performance Share Plan

2008-2010 Grant

     THIS GRANT (this “Grant”) is made, effective as of the 1st of January, 2008,
between Symetra Financial Corporation (the “Company”) and
____________ (the
“Participant”).

RECITALS:

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

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

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

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

2. Award Period: The Award Period shall be January 1, 2008 through December 31, 2010.

3. Performance Goal: The Performance Goal shall be a 13% compound annualized growth in the
intrinsic business value of the company, which shall be measured by the average of the compound
annualized growth rates during the Award Period of (a) the Enterprise Value (EV) per share and (b)
the GAAP Book Value per share, excluding unrealized gains or losses other than unrealized gains or
losses on equities held as investments.

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

	 	 	 
	Growth in intrinsic business value	 	Harvest Percentage
	10% or lower
	 	   0%
	13%
	 	100%
	16% or higher
	 	200%

For annualized percentage growth between 10% and 16%, the Harvest Percentage will be determined on
the basis of straight line interpolation.

					
	 	 	 	 	 
	March 4, 2008
	 	-1-
	 	 

 

 

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

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

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

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

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

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

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

					
	 	 	 	 	 
	March 4, 2008
	 	-2-
	 	 

 

 

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

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

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

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

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

	 	 	 	 	 	 	 	 	 
	Participant	 	 	 	Symetra Financial Corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Name/Date

	 	 	 	 	 	Name/Date/Title	 	 

					
	 	 	 	 	 
	March 4, 2008
	 	-3-

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