Document:

Offer letter for Anne L. Arvia

 Exhibit 10.2 
 

 
 June 30, 2006 
 Anne L. Arvia 
 11952 Duchess Avenue 
 Mokena, IL 60448 
 Dear Anne: 
 I am pleased to extend you a formal offer of employment with Nationwide. Your position will be President, Nationwide Bank pending Board approval and will report to me. 
 Anne, the specifics of the job offer package are detailed below. This offer is contingent upon the following: 
  

	 	•	 	 Completion of our on-line employment application 

  

	 	•	 	 Successful completion of and acceptable results from a background check and drug screen 

  

	 	•	 	 U.S. employment eligibility verification 

 COMPENSATION 
 Nationwide provides a competitive total compensation program that’s designed to reward both
annual and long term performance results that help build our business. The components of the executive compensation program include: base salary that reflects roles and responsibilities, annual incentive pay that reflects the organization’s
performance compared to annual business plans and differentiated based on individual performance and long term incentive plans that provide an opportunity to share in the company’s success over time. During 2006, the compensation structure and
programs for executives are undergoing review and revision. Please note that all compensation programs are subject to annual review and Board approval. 
 Base salary 
 The base salary being offered is $325,000 which will be paid to you on an annual basis. 
 Sign On Incentive 
 You will receive a total of
$100,000 as a sign-on bonus with $50,000 payable within 30 days of employment and another $50,000 payable in January, 2007. You must be employed in good standing at the time of payment. This sign-on bonus is required to be repaid to the Company in
the event that you voluntarily terminate your employment prior to completing 24 months of employment. The Repayment schedule is: 100% if termination occurs within 12 months and 50% if termination occurs after 12 months but prior to 24 months of
employment. 

 Anne L. Arvia 
 Job Offer Package – Components 
 June 30, 2006 
 You will also receive shares of NFS, Inc. restricted stock to deliver a target award of $50,000. Vesting is 1/3 per year (100% vesting after 3
years). Number of shares to be determined at the time of grant based on fair market value and valuation model. 
 Performance Incentive Plan (PIP)

 You will be a participant in the Performance Incentive Plan (PIP) which is the Nationwide short term (annual) incentive plan. For 2006,
your award will be 55% of year-end base salary for the calendar year 2006 (not prorated based upon date of hire and guaranteed for 2006). Incentive payments under this plan occur in March, 2007 and are subject to the approval by the Board of
Directors. Beginning in 2007, the award you receive payable in March, 2008 will be based upon both your individual and year-end business unit performance. 
 Long-Term Incentive Equity Plan (LTEP) 
 You will be a participant in the Long-Term Incentive Equity Plan. For 2006, your
target award will be $157,200, prorated to reflect your date of hire. Your target award will be allocated 50% using Nationwide Value Added (NVA) performance metrics (a cash opportunity) and 50% to Nationwide Financial Services, Inc. nonqualified
stock options. The number of options granted will be determined based on fair market value and a valuation model with 100% vesting achieved in three years. The option term is 10 years. 
 The award you receive under the LTEP portion allocated to NVA will be based on the increase or decrease in NVA from the previous year. This plan utilizes a banking concept whereby the participant
receives 1/3 of the bank balance, if positive, in March 2007. The remaining two-thirds will be carried over as the beginning balance for 2008. All targets and awards under this plan are subject to the approval by the Board of Directors. 

NFS Stock Ownership Guidelines 
 As a senior
executive, you will be subject to NFS stock ownership guidelines. You will be expected to acquire and hold NFS stock with a minimum value of two (2) times your base salary within five years. More information will be forthcoming soon after your
start date. 
 Voluntary Deferred Compensation Plan 
 Nationwide provides executives an opportunity to voluntarily defer up to 80% of your cash compensation to a future date. Within 30 days of hire you will receive information about making a voluntary deferral election.
This is an annual election and any decision made regarding 2006 participation will not affect future eligibility. 
  

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 Anne L. Arvia 
 Job Offer Package – Components 
 June 30, 2006 
 BENEFITS 
 Nationwide offers a
comprehensive, competitive package of executive benefits. Throughout an executive’s period of Nationwide service, benefits often represent up to 20% of the total rewards package. The information below is a general description of the benefits
Nationwide currently offers. Benefits can and do change from time to time. Because of Internal Revenue Code limits as well as plan provisions, certain plans have eligibility requirements, benefits limits and vesting requirements; and both pension
and savings plans are provided through a combination of tax-qualified and non-qualified plans. 
 Retirement – Pension 
 The Nationwide Retirement Plan is an account balance qualified defined benefit plan. Participants receive pay credits that are determined using a
service-based formula. During the first year of employment, participants receive credits of 3% on eligible compensation up to the Social Security Wage Base ($94,200 in 2006) and 3% on eligible compensation over the Social Security Wage Base. The
plan provides for incremental changes in credits on eligible compensation at 3, 9 and 15 years of service. Interest is credited each pay period based upon published rates that change quarterly. Participants are vested after completing 60 months of
Vesting Service, in accordance with the plan rules. Assuming participants have met eligibility and vesting requirements, associates receive full pension benefits at normal retirement defined as age 65 with reduced benefits provided for early
retirement prior to age 65. Participation is automatic and there are no associate contributions. You will be notified of your participation once you have completed one year of service. 
 Supplemental Retirement Plan 
 The Nationwide Supplemental Retirement Plan is a nonqualified plan
designed to “make-up” lost retirement benefits created by IRS limitations in the defined benefit pension plan. You will automatically participate in this plan if eligible. 
 Retirement – Savings 
 The Nationwide Savings Plan is a qualified defined contribution plan
(401(k)) that provides participants with the opportunity to contribute between 1% and 80% of pre-tax compensation and receive company matching contribution of 3% of compensation (defined as salary and annual incentive) subject to IRS
limitations. For 2006, the IRS pre-tax contribution limits are $15,000 ($20,000 for participants who are age 50 or over by December 31, 2006) and $220,000 of covered compensation. Participation is voluntary and company matching contributions
are contingent on associate election to participate. Associates also have an option to make post-tax Roth contributions to the savings plan. Associates may participate as soon as administratively feasible following hire. 
 Supplemental Defined Contribution Plan 
 The
Nationwide Supplemental Defined Contribution Plan is a non-qualified plan designed to “make-up” company match normally provided under the Nationwide Savings Plan that participants would otherwise receive but for IRS limitations.

  

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 Anne L. Arvia 
 Job Offer Package – Components 
 June 30, 2006 
 Health and Welfare 
 Health and wellness benefits
including medical, dental, life and disability, and others are all available beginning the first day of the month after your first 30 days of employment, assuming you meet the active at work requirements. Detailed information regarding the
individual plans and associate contribution rates are provided online, as well as through the Associate Service Center. 
 Paid Time Off 

Nationwide provides associates with paid time off for reasons including vacation, personal time, sickness for you (first five days) or a family member.
You will begin accruing paid time off at a rate of 8 hours and 30 minutes beginning with completion of the first pay period. This accrual rate will provide you with an annual maximum of twenty-eight days. 
 Other Benefits and Programs 
 As a Nationwide
executive, you will have access to a variety of other benefits and programs or services including: 
  

	 	•	 	 Parking – executive garage parking, washing and service privileges at a cost of $120 per month for a domestic vehicles or $110 per month for foreign
vehicles 

  

	 	•	 	 Financial planning services for executives are available through the Asset Management Group 

  

	 	•	 	 Annual executive physical examination provided at no cost to you 

  

	 	•	 	 Educational assistance eligibility occurs after one year of service 

  

	 	•	 	 Credit union services 

 Relocation

 A complete relocation package is provided to executives at your level. A Relocation Consultant will contact you with information and
services. 
 Executive Outplacement Benefits 
 In the event you are asked to leave Nationwide for reasons other than gross misconduct, fraud, ethical or criminal violations, or violations of corporate policy, you would be provided with the following: 
 One year base salary and accrued short term incentive; 
 Six to twelve month of outplacement firm services. 
  

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 Anne L. Arvia 
 Job Offer Package – Components 
 June 30, 2006 
 CUSTOMER RELATIONSHIP REQUIREMENT 
 Nationwide Mutual Insurance Company and Nationwide Mutual Fire Insurance Company (herein, referred to as “The Companies”) require that company officers also be customers of The Companies or of its affiliates. This bylaw
requirement can be fulfilled through purchasing auto, homeowner’s or other coverage through Allied or AgriBusiness or other affiliated Nationwide companies; purchasing life insurance or annuities from Nationwide life insurers; or by investing
in funds managed by Gartmore. Obtaining accidental death and dismemberment coverage through the Ohio Farm Bureau also satisfies the customer criteria. In order to verify compliance with the customer bylaw requirement as well as avoid any regulatory
challenges, you will be contacted regarding verification of compliance. If you have any questions please contact Glenn Soden 614-249-7610 or Thom Barnes 614-249-8169. 
 Once you have reviewed all of your employment offer details, please feel free to contact me with any questions. I can be reached at (614) 249-6950. I hope you find this offer of employment attractive both from a
professional and personal perspective. I look forward to your reply. 
 Sincerely, 
 Mark Thresher 
 President and Chief Operating Officer 
 Nationwide Financial 
 Anne, 
 Once you have had the opportunity to review this offer, please sign and return a copy (additional copy included) in the enclosed self-addressed envelope
at your earliest convenience. 
 I accept the job offer as outlined above: 
  

			
	 X
	 	  

		 	 Anne L. Arvia

  

 5Guarantee Agreement

 Exhibit 10.3 
 EXECUTION VERSION 
 GUARANTEE AGREEMENT 
 THIS GUARANTEE AGREEMENT (this “Guarantee Agreement”), dated as of June 30, 2006, made by NATIONWIDE
FINANCIAL SERVICES, INC., a Delaware corporation (the “Company”), in favor of WACHOVIA BANK, NATIONAL ASSOCIATION (the “Bank”). Capitalized terms used herein without definition shall have the meanings
given to them in the Credit Agreement referred to below. 
 WITNESSETH: 
 WHEREAS, NF Reinsurance Ltd., a Bermuda corporation and a wholly-owned subsidiary of the Company (“NFRe”) and
the Bank are parties to a Letter of Credit Issuance Agreement, dated as of June 30, 2006 (as amended, modified, restated or supplemented from time to time, the “Credit Agreement”), pursuant to which the Bank has provided to
NFRe a committed credit facility for the issuance of intercompany standby letters of credit of up to $25,000,000 for the benefit of Nationwide Life Insurance Company of America (the “Facility”); and; 
 WHEREAS, it is a condition to the Bank’s agreement to provide the Facility that the Company shall have agreed, by executing
and delivering this Guarantee Agreement, to guarantee to the Bank in full the Guaranteed Obligations (as hereinafter defined). The Bank is relying on this Guarantee Agreement in its decision to extend the Facility. 
 NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, to induce the Bank to provide the Facility, the Company hereby agrees as follows: 
 SECTION 1. Guarantee. The Company hereby unconditionally, absolutely and irrevocably guarantees, as a primary obligor and not merely as surety, the full and punctual payment (whether at stated maturity, upon acceleration
or otherwise) of all obligations of NFRe under each L/C Agreement and each Letter of Credit issued under the Facility (collectively, the “Guaranteed Obligations”). This Guaranty is a guaranty of payment and not of collection.

 SECTION 2. Guarantee Unconditional. The obligations of the Company hereunder shall be unconditional,
absolute and irrevocable and, without limiting the generality of the foregoing, shall not be released, discharged or otherwise affected by: 
 (i) any extension, renewal, settlement, compromise, waiver or release (including with respect to any collateral) in respect of any obligation of any other obligor under any of the Credit Documents, by operation of law
or otherwise; 
 (ii) any modification or amendment of or supplement to any of the Credit Documents; 
 (iii) any release, non-perfection or invalidity of any direct or indirect security for any obligation of any other obligor under any of
the Credit Documents; 

 (iv) any change in the corporate existence, structure or ownership of any obligor, or any
bankruptcy proceeding or other similar insolvency proceeding affecting any other obligor or its assets or any resulting release or discharge of any obligation of any other obligor contained in any of the Credit Documents; 
 (v) the existence of any claim, set-off or other rights which any obligor may have at any time against any other obligor, the Bank or any
other corporation or person, whether in connection with any of the Credit Documents or any unrelated transactions, provided that nothing herein shall prevent the assertion of any such claim by separate suit or compulsory counterclaim;

 (vi) any invalidity or unenforceability relating to or against any other obligor for any reason of any of the Credit
Documents, or any provision of applicable law or regulation purporting to prohibit the payment by any other obligor of principal, interest or any other amount payable under any of the Credit Documents; 
 (vii) any law, regulation or order of any jurisdiction, or any other event, affecting any term of any obligation of the Bank’s rights
with respect thereto; or 
 (viii) any other act or omission to act or delay of any kind by any obligor, the Bank or any other
corporation or person or any other circumstance whatsoever (other than the defense of payment) which might, but for the provisions of this paragraph, constitute a legal or equitable discharge of or defense to the Company’s obligations under
this Guarantee Agreement. 
 SECTION 3. Representations and Warranties. The Company hereby represents and
warrants that: 
 (i) Authorization; No Contravention. The execution, delivery and performance by the Company of
this Guarantee Agreement are within the Company’s powers, have been duly authorized by all necessary action, require no action by or in respect of, or filing with, any governmental body, agency or official and do not contravene, or constitute a
default under, any provision of applicable law or regulation, as amended from time to time, or the charter or by-laws of the Company or of any agreement, judgment, injunction, order, decree or other instrument binding upon the Company or result in
or require the creation or imposition of any lien on any asset of the Company. 
 (ii) Binding Effect. This
Guarantee Agreement constitutes a valid and binding agreement of the Company enforceable against it in accordance with its terms. 
 SECTION 4. Manner of Payment. Payment by the Company hereunder shall be made by wire transfer of immediately available funds without setoff, counterclaim or deduction to such account designated in writing by the Bank to
the Company for such purpose. 
 SECTION 5. Enforcement of Guarantee. In no event shall the Bank or any
other person have any obligation to proceed against NFRe or any other person or any property that may be pledged to secure the obligations of NFRe under any Credit Document before seeking satisfaction from the Company. 
  

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 SECTION 6. Waiver. The Company hereby irrevocably waives promptness,
diligence, or notice of acceptance hereof, presentment, demand, protest and any and all other notice not provided for herein and any requirement that at any time the Bank or any other person exhaust any right or take any action against NFRe and any
other circumstances whatsoever that might otherwise constitute a legal or equitable discharge, release or defense of the Company or that might otherwise limit recourse against the Company. 
 SECTION 7. Waiver of Subrogation. The Company irrevocably waives any and all rights to which it may be entitled, by
operation of law or otherwise, upon making any payment hereunder to be subrogated to the rights of the payee against NFRe with respect to such payment or otherwise to be reimbursed, indemnified or exonerated by NFRe in respect thereof. 

SECTION 8. Notices. All notices, requests, demands and other communications made hereunder will be in writing and
will be deemed duly given upon delivery if delivered personally, upon confirmation of transmission if sent by telex or facsimile, upon the third business day after mailing if sent by registered or certified mail, postage prepaid and upon receipt if
sent by reputable overnight courier, as follows, or to such other address or person as either the Company or the Bank may designate by notice to the other: 
  

			
	 If to the Company:

	
	 Nationwide Financial Services, Inc.

	 One Nationwide Plaza, 1-32-07

	 Columbus Ohio 43215

	 Attention:
	  	 Timothy J. Dwyer, CTP

		  	 Director - Bank Relations

	 Telephone:
	  	 614-249-7725

	 Fax:
	  	 614-249-2739

	
	 If to the Bank:

	
	 Wachovia Bank

	 301 S. College Street, 15th Floor

	 NC 5562

	 Charlotte, NC 28288-0737

	 Attention:
	  	 Karen Hanke

	 Telephone:
	  	 (704) 374-3061

	              Fax:
	  	 (704) 383-6647

 SECTION 9. No Waiver; Remedies. No failure on the part of the
Bank to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right.
The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 
 SECTION 10.
Continuing Guarantee; Reinstatement in Certain Circumstances. The guarantee contained in this Guarantee Agreement is a continuing guarantee and the Company’s obligations hereunder shall (i) remain in full force and effect until
the 
  

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 indefeasible payment in full of all Guaranteed Obligations and the termination or expiration of all
Letters of Credit issued under an L/C Agreement, (ii) be binding upon the Company and its successors and assigns, and (iii) inure to the benefit of and be enforceable by the Bank and its permitted successors, transferees and assigns. If at
any time any payment of any amount payable by NFRe under any Credit Document is rescinded or must otherwise be restored or returned upon the insolvency, bankruptcy or reorganization of NFRe or otherwise, the Company’s obligations hereunder with
respect to such payment shall be reinstated as though such payment had been due but not made at such time. 
 SECTION 11. Stay of Time Of Payment. If the time for payment of any amount payable by NFRe under any Credit Document is stayed upon the insolvency, bankruptcy or reorganization of NFRe, all such amounts otherwise subject
to payment under the terms of such Credit Document shall nonetheless be payable by the Company hereunder forthwith on demand by the Bank. 
 SECTION 12. Governing Law. This Guarantee Agreement shall be governed by, and construed in accordance with, the laws of the State of New York. 
 SECTION 13. Severability. Any provision of this Guarantee Agreement which is illegal, invalid, prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such illegality, invalidity, prohibition or unenforceability without invalidating the remaining provisions hereof and any such illegality, invalidity,
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 SECTION 14. Entire Agreement. This Guarantee Agreement embodies the entire agreement of the Company with respect to the subject matter hereof and supersedes any prior written or oral agreements and
understandings relating to the subject matter hereof. 
 SECTION 15. Waiver of Jury Trial. THE COMPANY
HEREBY WAIVES TO THE EXTENT PERMITTED BY LAW ITS RIGHT TO A TRIAL BY JURY OF ANY SUIT, ACTION OR PROCEEDING ARISING AS A RESULT OF OR RELATING TO THIS GUARANTEE AGREEMENT. 
 SECTION 16. Reciprocal Provisions. The obligations and agreements of the Applicant set forth in Sections 10.10, 10.11, 10.16 and 10.17 in the Credit Agreement shall
apply mutatis mutandis in this Guarantee Agreement to the Guarantor to the same extent as such provisions apply to the Applicant under the Credit Agreement. 
  

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 EXECUTION VERSION 
 IN WITNESS WHEREOF, the Company has caused this Guarantee Agreement to be duly executed and delivered by its officer thereunto duly authorized on the date below and effective as of the
date first above written. 
  

			
	 NATIONWIDE FINANCIAL SERVICES, INC.

		
	 By:
	 	  

	 Name:
	 	 Carol L. Dove

	 Title:
	 	 Vice President and Assistant Treasurer

  

			
	 Accepted and agreed to:

	
	 WACHOVIA BANK, NATIONALASSOCIATION

		
	 By:
	 	  

	 Name:
	 	 Karen Hanke

	 Title:
	 	 Director

 Signature Page to Guarantee Agreement 
  

 5

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