Document:

exv10w2

 

EXHIBIT 10.2

RELIANCE STANDARD LIFE INSURANCE COMPANY

AMENDED AND RESTATED

MANAGEMENT INCENTIVE COMPENSATION PLAN

 

 

ARTICLE I — INTRODUCTION, OBJECTIVES AND DURATION

1.1 INTRODUCTION. Reliance Standard Life Insurance Company (“RSL” or the “Company”) hereby
amends and restates its existing plan known as the RSL Management Incentive Compensation
Plan (as so amended and restated, the “Plan”), to read in the form set forth herein.

The Plan permits the payment of annual awards, based on the achievement of certain
pre-established goals, in cash, stock options or a combination thereof.

The RSL Management Incentive Compensation Plan became effective as of January 1, 2001 and
shall remain in effect as provided in Section 1.3 hereof. The first Performance Period (as
defined in Section 2.12 hereof) was calendar year 2001.

1.2 PLAN OBJECTIVE. To promote profitable growth of the Company by providing eligible
employees with incentive based compensation, so as to permit RSL to attract and retain
employees of the highest caliber who will demonstrate outstanding performance and will
assist in the achievement of overall objectives.

1.3 DURATION. The Plan shall remain in effect unless and until terminated by the Committee
or the Board of Directors; however, each of the Exhibits to the Plan must be separately
approved by the Commitee for each Performance Period.

ARTICLE II — DEFINITIONS

The following terms will have the definitions set forth below:

2.1 “ACHIEVEMENT PERCENTAGE” means the percentage amount as determined by the Chairman of
the Board of RSL pursuant to Exhibit D hereof, as in effect for the applicable Performance
Period.

2.2 “AWARD” means an award under the Plan of cash, stock options or any combination thereof
in respect of an Incentive Bonus.

2.3 “BASE SALARY” means the employee’s annual base salary on the date on which the
applicable Performance Period commences.

2.4 “BOARD” or “BOARD OF DIRECTORS” means Board of Directors of the Company.

2.5 “COMMITTEE” means, as specified in Article 3 herein, the Compensation Committee of the
Board or such other committee as may be appointed by the Board to administer the Plan.

2.6 “COMPANY” means Reliance Standard Life Insurance Company, an Illinois corporation, and
any successor thereto.

2

 

2.7
“DELPHI COMMITTEE” means the Stock Option and Compensation Committee of the Board of Directors of the Company’s indirect parent, Delphi Financial Group, Inc., or any other
committee of such board as may in the future perform functions similar to those of such
committee.

2.8 “INCENTIVE BONUS” means the bonus and calculation thereof for the applicable Performance
Period as described in Exhibit B hereof, as in effect for such Performance Period.

2.9 “MEASURING OBJECTIVE” shall, with respect to a Performance Period, have the meaning
ascribed to such term in Exhibit C hereof, as in effect for such Performance Period.

2.10 “PARTICIPANT” means, with respect to each Performance Period, an employee of the
Company designated as a Participant in this Plan for such period pursuant to the provisions
of the Plan.

2.11 “PARTICIPATION PERCENTAGE” is, as to each Participant with respect to a Performance
Period, a percentage determined on a discretionary basis by such Participant’s manager based
on the manager’s assessment of the Participant’s performance during such Performance Period,
subject to the further approvals of the Company senior officer responsible for such
Participant’s department and the President of RSL.

2.12 “PERFORMANCE PERIOD” means a calendar year or such other fiscal year or partial year
performance period as is established by the Committee.

ARTICLE III — ADMINISTRATION

3.1 ADMINISTRATION. The Plan will be administered by the Committee. Except as limited by law
and subject to the provisions hereof, the Committee shall have the authority to adopt
procedures for the administration of the Plan and to take any and all action necessary to
implement such procedures.

The Committee shall have full authority to designate Participants under the Plan, determine
the amounts and forms of Awards, determine the terms and conditions of Awards in a manner
consistent with the Plan, construe and interpret the Plan and any agreement or instrument
entered into under the Plan, make factual determinations and establish, amend, or waive
rules and regulations for the Plan’s administration. Further, the Committee shall make all
other determinations which may be necessary or advisable for the administration of the Plan.
The Committee has provided for limited delegations of its authority as to certain matters,
as provided herein.

3.2 DECISIONS BINDING. All determinations and decisions made by the Committee or other
authorized persons pursuant to the provisions of the Plan (a) shall be final, conclusive and
binding on all persons, including the Company, its employees, Participants, and their heirs,
estates and beneficiaries, (b) shall be in the sole discretion of the Committee, and (c)
need not be uniform as to similarly situated individuals.

3

 

3.3 DELPHI COMMITTEE. Notwithstanding anything contained in the Plan to the contrary, it is
confirmed and understood that any action proposed to be taken by the Committee, the Chairman
of the Board of RSL, the President of RSL or the Board of Directors under the Plan, insofar
as it relates, generally or specifically, to a Participant whose compensation is subject to
the review and approval of the Delphi Committee, or which relates to the granting of any
Delphi stock option, shall, in addition to any approvals otherwise required under the Plan,
be subject in all respects to the review and approval of the Delphi Committee. It is hereby
confirmed that, as of the date of the Plan, such employees consist of the President and
Chief Executive Officer and Vice President and Treasurer of the Company. In the event of
any conflict between this Section 3.3 and any other provision of the Plan or any Exhibit
hereto, this Section 3.3 will prevail.

ARTICLE IV — INCENTIVE PARTICIPATION

4.1 ELIGIBILITY, PARTICIPANTS AND PERFORMANCE PERIOD. Eligibility to participate in the
Plan for a Performance Period is restricted to the Participants identified in Exhibits A-1
and A-2, as adopted by the Committee in its sole discretion for such Performance Period.

4.2 MAXIMUM PARTICIPATION. Maximum Participation Percentages relating to each Participant’s
Base Salary shall be established by the Committee in its sole discretion for each
Performance Period.

4.3 FORM OF AWARDS. Awards may be paid in cash, Delphi stock options or any combination
thereof, as determined by the Committee in its sole discretion or, to the extent expressly
authorized and directed by the Committee, by each Award recipient. Notwithstanding the
foregoing, any stock option grant shall be subject in all respects to, and shall become
effective only upon, the approval of such option grant by the Delphi Committee under the
applicable Delphi stock plan, in such committee’s sole discretion.

4.4 DISTRIBUTION. After the close of each Performance Period the actual Participation
Percentage and Incentive Bonus, if any, will be determined for each Participant in the Plan
for such Performance Period. Awards for a Performance Period, if any, will be paid promptly
upon the receipt of confirmation from the independent auditor for Delphi and the Company
that its GAAP audit relating to such Performance Period is substantially complete, which
will generally occur at the regular first quarter meeting of the Audit Committee of the
Board of Directors of Delphi. Each Participant for a Performance Period will be notified of
his or her Award under the Plan, if any, for such Performance Period.

4.5 PARTIAL AWARDS. An employee hired or promoted by the Company during a Performance
Period may, if so determined by the Committee or the President of RSL, be designated as a
Participant for such Performance Period on such terms as the Committee as may determine in
its sole discretion.

4

 

4.6 TERMINATION OF EMPLOYMENT, DISABILITY. Except as provided below, a Participant must be
employed by the Company at the close of a Performance Period in order to participate in and
receive an Award for such Performance Period. If a Participant’s employment is terminated
during the Performance Period for any reason other than termination by RSL for cause, as
determined by the Committee or the President of RSL, such Participant may participate in the
Plan for such Performance Period only to the extent, if any, deemed appropriate by the
Committee or the President of RSL. If a Participant’s employment is terminated for cause,
as determined by the Committee or the President of RSL, whether during or after the close of
the Performance Period, such Participant shall have no right to receive any Award for such
Performance Period.

If a Participant terminates employment (other than due to death, disability, or retirement)
after the close of a Performance Period but prior to the date for actual payment of an Award
under this Plan, the President of RSL will determine the extent (if any) of any payment of
an Award to such Participant for such Performance Period.

ARTICLE V — EXHIBITS, CALCULATIONS, AND CHANGES

5.1 PERFORMANCE CRITERIA AND CALCULATIONS. The Exhibits for a Performance Period relating
to Participants, Incentive Bonus Calculation, Measuring Objectives and Achievement
Percentage, must be approved by the Committee with respect to each Performance Period. The
Award for each Participant with respect to a Performance Period, if any, shall be
calculated in accordance with Exhibit B (Incentive Bonus Calculation).

5.2 CHANGES. The Measuring Objective for a Performance Period may be changed by the
Committee or the Board of Directors where deemed appropriate, in its sole discretion, to
reflect a change in circumstances, operating strategy or otherwise. The Committee may, in
its sole discretion, (a) modify, reduce or eliminate the Award otherwise payable to any
Participant and (b) grant Awards to Participants in such amounts and on such terms as the
Committee determines in its sole discretion.

ARTICLE VI — DEFERRALS

A Participant may defer his or her Award to the extent permitted pursuant to any rules and
procedures for such deferrals established by the Committee or pursuant to the terms of any
qualified or non-qualified Company deferred compensation plans as may be in effect from time
to time.

ARTICLE VII — RIGHTS OF EMPLOYEES

7.1 NOT A CONTRACT. This Plan does not constitute a contract between RSL and any
Participant, and no Participant shall have any legal rights by reason of the existence of
this Plan. No right, benefit or Award under this Plan shall be subject to anticipation,
alienation, sale, assignment, pledge, encumbrance or charge, and any attempt to anticipate,
alienate, sell, assign, pledge, encumber or charge the same shall be void. If any
Participant hereunder should become bankrupt or attempt to participate, alienate, sell,
assign, pledge, encumber or

5

 

charge any right or benefit hereunder, then such right, benefit or Award shall, at the
discretion of the Committee or the Board of Directors, cease and terminate. RSL may offset
any claim it has against a Participant against any amount to which such Participant may
otherwise be entitled hereunder, but rights hereunder shall not otherwise be subject to
debts or liabilities of any Participant.

7.2 EMPLOYMENT. Nothing in the Plan shall interfere with or limit in any way the right of
the Company to terminate any Participant’s employment at any time, or confer upon any
Participant any right to continue in the employ of the Company.

7.3 PARTICIPATION. No employee shall have the right to be selected as a Participant under
this Plan for any Performance, or, having been so selected in any Performance Period, to be
selected as a Participant for any future Performance Period.

ARTICLE VIII — AMENDMENT, MODIFICATION, AND TERMINATION

8.1 AMENDMENT, MODIFICATION, AND TERMINATION. The Committee may at any time and from time
to time, alter, amend, modify or terminate the Plan or any Exhibits thereto, in whole or in
part.

8.2 AWARDS PREVIOUSLY GRANTED. No termination, amendment, or modification of the Plan shall
adversely affect in any material respect any Award to which a Participant has become
entitled under the Plan without the written consent of such Participant.

ARTICLE IX — WITHHOLDING

The Company shall deduct or withhold from Awards or other amounts payable to a Participant,
or require the Participant to remit to the Company, an amount deemed by the Company to be
sufficient to satisfy the related Federal, state and local taxes, domestic or foreign,
required by law or regulation to be withheld with respect thereto.

ARTICLE X — INDEMNIFICATION

Each person who is or shall have been a member of the Committee shall be indemnified and
held harmless by the Company against and from any loss, cost, liability, or expense that may
be imposed upon or reasonably incurred by him or her in connection with or resulting from
any claim, action, suit, or proceeding to which he or she may be a party or in which he or
she may be involved by reason of any action taken or failure to act under the Plan and
against and from any and all amounts paid by him or her in a settlement approved by the
Company, or paid by him or her in satisfaction of any judgment in any such action, suit, or
proceeding against him or her, provided he or she shall give the Company an opportunity, at
its own expense, to defend the same before he or she undertakes to defend it or his or her
own behalf. The foregoing right of indemnification shall not be exclusive of any other
rights of indemnification to which such persons may be entitled under the Company’s Articles
of Incorporation or By-Laws, as a matter of law, or otherwise, or any power that the Company
may have to indemnify them or hold them harmless.

6

 

ARTICLE XI — SUCCESSORS

All obligations of the Company under the Plan with respect to Awards to which a Participant
has become entitled hereunder shall be binding on any successor to the Company, whether the
existence of such successor is the result of a direct or indirect
purchase of all or substantially all of the business and/or assets of the Company, or a merger, consolidation,
or otherwise.

ARTICLE XII — LEGAL CONSTRUCTION

12.1 GENDER AND NUMBER. Except where otherwise indicated by the context, any masculine term
used herein also shall include the feminine, the plural shall include the singular and the
singular shall include the plural.

12.2 SEVERABILITY. In the event any provision of the Plan shall be held illegal or invalid
for any reason, the illegality or invalidity shall not affect the remainder of the Plan, and
the Plan shall be construed and enforced as if the illegal or invalid provision had not been
included.

12.3 REQUIREMENTS OF LAW. The granting of Awards and the issuance of stock and/or cash
payouts under the Plan shall be subject to all applicable laws, rules, and regulations, and
to such approvals by any governmental agencies or national securities exchanges as may be
required.

12.4 GOVERNING LAW. To the extent not preempted by federal law, the Plan and all agreements
hereunder shall be construed in accordance with and governed by the laws of the Commonwealth
of Pennsylvania.

In witness thereof, the Company has caused this Amended and Restated Management Incentive
Compensation Plan to be executed by its duly authorized officer,
effective February 8, 2007.

	 	 	 	 	 
	 	 	Reliance Standard Life Insurance Company
	 
	 	 	 	 
	 

	 	By:	 	/s/ LAWRENCE E. DAURELLE
	 

	 	 	 	 
	 

	 	 	 	Signature

	 	 	 	 	 
	 

	 	Title:	 	PRESIDENT AND CHIEF EXECUTIVE
OFFICER
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Date:	 	February 8, 2007
	 

	 	 	 	 

7exv10w3

 

EXHIBIT 10.3

EXHIBIT A-1 FOR PERFORMANCE PERIOD 2007

SENIOR MANAGEMENT PARTICIPANTS

MAXIMUM INCENTIVE PAYMENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Incentive
	 	 	 	 	 	 	 	 	 	 	Payment
	 	 	Maximum	 	 	 	 	 	At Maximum
	 	 	Participation	 	Base	 	Participation
	Participant	 	Rate	 	Salary	 	Rate
	 
	Thomas W. Burghart

	 	 	50	%	 	$	240,000	 	 	$	120,000	 
	Lawrence E. Daurelle

	 	 	110	%	 	 	350,000	 	 	 	385,000	 

[DATA RELATING TO OTHER PARTICIPANTS DELETED]

1

 

EXHIBIT B FOR PERFORMANCE PERIOD 2007

INCENTIVE BONUS CALCULATION

A Participant will be eligible to receive an Incentive Bonus if RSL achieves the Measuring
Objective for the 2007 Performance Period, as set forth in Exhibit C. For each Participant, the
Incentive Bonus will be the product of the following:

[Achievement Percentage, as set forth in Exhibit D] * [Participation Percentage] * [Base Salary].

The Participation Percentage for each Participant will be subject to the maximum percentage for
such person set forth in Exhibits A-1 and A-2.

For Participants set forth in Exhibit A-1 only, the Committee in its sole discretion may elect to
award the Incentive Bonus as either (a) cash or (b) a grant of options to purchase shares of Delphi
Class A Common Stock (“Options”), or a combination of both, subject to the approval of each option
grant by the Stock Option and Compensation Committee (the “Delphi Committee”) of the Board of
Directors of Delphi Financial Group, Inc. (“Delphi”). With regard to Options, the Incentive Bonus
amount shall be divided by the fair market value of the Delphi Class A Common Stock on the date of
grant of the option, and the quotient then multiplied by three (3), yielding the total number of
Incentive Options awarded.

For Participants set forth in Exhibit A-2, the Incentive Bonus is payable in cash.

All Options shall be granted under, and be subject to the terms and conditions of, Delphi’s 2003
Employee Long-Term Incentive and Share Award Plan, as amended from time to time. In addition,
subject to the approval of the Delphi Committee, such Options will be immediately exercisable and,
in the case of termination of employment, by either party, for any reason whatsoever (subject to
the following sentence), may be exercised any time during the remainder of the ten (10) year term.
If a Participant’s employment is terminated by the Company on account of any act of (a) fraud or
intentional misrepresentation or (b) embezzlement, misappropriation or conversion of assets or
opportunities of the Company, or any unauthorized disclosure of confidential information or trade
secrets of the Company, all unexercised Options shall terminate as of the date of such termination.

2

 

EXHIBIT C FOR PERFORMANCE PERIOD 2007

MEASURING OBJECTIVE

The Measuring Objective for the 2007 Performance Period is the attainment of Life Insurance
Companies Operating Income per the Elements of Profit on page two of the monthly financial package,
for the life companies only, in the amount of at least $149,080,000.

3

 

EXHIBIT D FOR PERFORMANCE PERIOD 2007

ACHIEVEMENT PERCENTAGE

If the actual results of RSL for the 2007 Performance Period equal or exceed the Measuring
Objective for the Performance Period, the 2007 Achievement Percentage will be equal to 100%,
subject to upward or downward adjustment as determined by the Chairman of the Board of RSL;
however, such percentage, as so adjusted, will not be less than 90% or greater than 110%.

If the actual results of RSL for the 2007 Performance Period are less than the 2007 Measuring
Objective, the Achievement Percentage will be a percentage in the amount, if any, as determined by
and at the sole discretion of the Chairman of the Board of RSL.

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]