Document:

Exhibit 10.03

Exhibit 10.03

THE HARTFORD 2010 INCENTIVE STOCK PLAN:

ADMINISTRATIVE RULES

ADOPTED BY THE COMPENSATION AND PERSONNEL COMMITTEE

OF THE HARTFORD FINANCIAL SERVICES GROUP, INC.

RELATING TO AWARDS FOR NON-EMPLOYEE DIRECTORS

Set forth below are the Administrative Rules (“Rules”) which have been adopted by the Compensation
and Personnel Committee (the “Compensation Committee”) of the Board of Directors of The Hartford
Financial Services Group, Inc. (the “Company”) for the administration of awards under The Hartford
2010 Incentive Stock Plan (the “Plan”) for Non-Employee Directors of the Company. All terms and
conditions of the Plan (including those relating to any Change of Control of the Company), as it
may be amended from time to time, and the rules and interpretations applicable under the Plan, as
they may be adopted by the Compensation Committee from time to time, shall apply to all awards
granted under the Plan except as otherwise provided pursuant to the Rules set forth herein.
Capitalized terms used herein shall have the meanings specified herein or assigned by the Plan.

	 	1.	 	Annual Non-Employee Director Restricted Stock Awards. An annual award of
Restricted Stock automatically shall be made, on such date as may be determined
appropriate by the Nominating and Corporate Governance Committee of the Board (the
“Nominating Committee”) from time to time, to each director of the Company who is not an
officer of, or otherwise employed by, the Company or any of its subsidiaries or affiliates
(“Non-Employee Director”).

	 
	 	2.	 	Amount of Awards. The amount of each Non-Employee Director’s annual
Restricted Stock award shall equal the number of whole shares of Stock (rounded up to the
nearest whole share) determined by dividing (a) the dollar amount of the annual award as
may be in effect at the time of award as determined by the Nominating Committee, by (b)
the Fair Market Value of the Stock on the date of award.

	 
	 	3.	 	General Rule for Lapse of Restrictions on Restricted Stock. Except as
otherwise provided in the Plan, the restrictions on Restricted Stock awarded to
Non-Employee Directors under the Plan shall lapse in accordance with the following vesting
schedule (or such other vesting schedule as may be determined appropriate by the
Nominating Committee from time to time): the restrictions on such Restricted Stock shall
lapse on the earlier of (i) the last day of the Board service year (the period between
dates of Annual Meetings of Stockholders) during which he or she is elected or (ii) the
first anniversary of the award grant date. Notwithstanding the preceding sentence, the
restrictions on Restricted Stock awarded to a Non-Employee Director shall lapse
automatically upon the occurrence of any of the following events: (a) retirement from
service on the Board at age 75, (b) death of the Non-Employee Director, (c) Total
Disability of

 

 

 

the Non-Employee Director, (d) resignation by the Non-Employee Director under cases of
special circumstances where the Committee, in its sole discretion, consents to waive any
remaining restriction, or (e) a Change of Control (in the event of a Change of Control as
described in Section 9(a)(iii) or Section 9(a)(iv) of the Plan, in the case of a
Non-Employee Director whose service on the Board involuntarily terminates on or after the
date of the stockholder approval described in either of such Sections but before the date
of the consummation described in either of such Sections, the date of termination of such
Non-Employee Director’s service shall be deemed for purposes of the Plan to be the day
following the date of the applicable consummation). Restricted Stock shall be forfeited
only when the Committee, in its sole discretion, so determines.

	 	4.	 	Registration of Restricted Stock. All shares of restricted stock granted to
Non-Employee Directors will be registered in their respective names and held in escrow by
the Company until the restrictions on such shares lapse in accordance with the Plan and
these Rules. Shares of restricted stock may be evidenced on a book entry or electronic
basis or pursuant to other arrangements (including, without limitation, in an omnibus or
nominee account administered by a third party), rather than such shares being registered
in the respective names of the Non-Employee Directors and held in escrow, so long as the
 shares of restricted stock to the credit of each Non-Employee Director may be accurately
determined.

	 
	 	5.	 	Dividends and Voting Rights. Pursuant to Section 7(j) of the Plan,
Non-Employee Directors shall receive dividends with respect to all Restricted Stock held
in escrow on their behalf and shall have the right to vote such Restricted Stock.

	 
	 	6.	 	Prorated Awards for Non-Employee Directors Elected After Annual Non-Employee
Director Restricted Stock Awards are Made. A Non-Employee Director elected to the
Board after the annual Non-Employee Director Restricted Stock Awards described in Rule 1
are made shall receive a prorated annual Award of Restricted Stock (rounded up to the
nearest whole share) for the portion of the Board service year (the period between dates
of Annual Meetings of Stockholders) during which he or she is elected. The amount of such
award shall be determined by dividing (a) the dollar amount in effect under Rule 2 for the
immediately preceding annual Non-Employee Director Restricted Stock Awards under Rule 1,
by (b) the Fair Market Value of the Stock on the date of such Non-Employee Director’s
election, and (c) multiplying the resulting amount by the “Service Fraction.” The Service
Fraction shall mean the fraction resulting from dividing (i) the nearest number of whole
months that are expected to elapse between the date of such Non-Employee Director’s
election and the next Annual Meeting of Stockholders, by (ii) the nearest number of whole
months that are expected to elapse between the immediately preceding Annual Meeting of
Stockholders and the next Annual Meeting of Stockholders. A Non-Employee Director who is
elected to the Board after the annual Non-Employee Director Restricted Stock Awards
described in Rule 1 are made, but before the start of the Board service year to which such
Restricted Stock Awards relate, shall also receive the
full annual Restricted Stock Award for such upcoming Board service year, calculated by
dividing (a) the dollar amount in effect under Rule 2 for such upcoming Board service year,
by (b) the Fair Market Value of the Stock on the date of such Non-Employee Director’s
election. The effective date of any such award shall be the date of such Non-Employee
Director’s election.

 

 

 

	 	7.	 	Voluntary Deferrals. A Non-Employee Director may elect to receive Restricted
Units in lieu of all or a portion of compensation otherwise payable in cash for a Board
service year, including the annual Board cash retainer, any Board committee chair cash
retainer, and Board and committee meeting fees earned in conjunction with service on the
Board. Such election, along with the election as to when the Restricted Units are to be
distributed, shall be made in the calendar year before the start of the applicable Board
service year, and shall be irrevocable as of the end of such calendar year. The available
elections as to when the Restricted Units are to be distributed shall be the same as are
then in effect under The Hartford Deferred Compensation Plan. Any such Restricted Units
shall be credited to the Non-Employee Director as of the last trading day of the calendar
quarter in which the amount would otherwise have been payable to the director in cash.
The number of Restricted Units credited shall be determined by dividing that dollar amount
by the Fair Market Value of the Stock on the last trading date of the calendar quarter.
During the Restriction Period, dividend equivalents will be reinvested in Restricted
Units. Any Restricted Units credited as a dividend equivalent (including any dividend
equivalents credited on Restricted Units that were previously credited as dividend
equivalents) shall be payable to a Non-Employee Director at the same time and subject to
the same conditions as are applicable to the Restricted Units in respect of which such
dividend equivalents were credited.Exhibit 10.04

Exhibit 10.04

THE HARTFORD

FORM OF NON-QUALIFIED STOCK OPTION, PERFORMANCE SHARE AND RESTRICTED STOCK UNIT AWARD

[DATE]

[Key Employee]

[Address]

[City, State, Zip]

I am pleased to inform you that effective [DATE] (the “Grant Date”), the Compensation and Personnel Committee (the
“Committee”) of the Board of Directors of The Hartford Financial Services Group, Inc. (“The Hartford”) approved an
award on your behalf under The Hartford’s Long-Term Incentive Compensation Program. Your award is comprised of [three]
parts: [a stock option, performance shares and restricted stock units].

You have been granted a non-qualified option to purchase all or any portion of x,xxx shares of common stock of The
Hartford under the terms of The Hartford 2010 Incentive Stock Plan (the “Plan”) at an exercise price of $[XXX] per
share, the New York Stock Exchange closing price of The Hartford’s common stock on the Grant Date. [TIER 1
EXECUTIVES: This option will vest and become exercisable, assuming continued employment, at the later of (i) [third
anniversary of the date of the grant], or (ii) the date the closing market price of The Hartford’s common stock on the
New York Stock Exchange has equaled or exceeded [125%] of the exercise price for a period of ten consecutive trading
days.] [TIER 2 EXECUTIVES: This option will vest and become exercisable, assuming continued employment, [in
three consecutive annual installments, each equal to one-third of the shares subject to the option, as follows:
one-third will vest and become exercisable one year after the Grant Date, an additional one-third will vest and become
exercisable two years after the Grant Date, and the remaining one-third of the option will vest and become exercisable
three years] after the Grant Date.] However, any unexercised portion of your option expires in full [ten years
following the Grant Date] and, in the event of your earlier termination of employment, will likely expire at an earlier
date in accordance with the applicable terms and conditions of the Plan.

You have also been granted x,xxx [operating division] performance shares of The Hartford’s common stock under the terms
of the Plan. This is a contingent award, and the extent to which you may ultimately receive all or any of these
performance shares depends upon continued employment and whether and to what extent, as determined by the Committee,
the following performance objectives are achieved over the [three-year] performance period [DATE — DATE]: [performance
objectives] relative to targets established by the Committee. [A one-year holding period after the end of the
performance period applies; payment will be made following the holding period.]

You have also been granted x,xxx restricted stock units of The Hartford. Each restricted stock unit award represents a
contractual right to receive, pursuant to the terms of the Plan, one share of common stock of The Hartford per
restricted stock unit [at the end of the three-year period from [DATE – DATE] (the “Service Period”). This is a
contingent award, and remains subject to forfeiture pending completion of the Service Period.] [Alternatively: Your
award is subject to a three-year graded vesting schedule with one-third of the award vesting on each anniversary of the
Grant Date. This is a contingent award and remains subject to forfeiture pending continued employment through each
vesting date.] [A one-year holding period after the applicable vesting date applies; payment will be made following
the holding period (during the holding period, amounts payable will be deemed to continue to be invested in The
Hartford common stock).] Your restricted stock unit account will be credited with dividend equivalents, which are
subject to the same terms and conditions as the restricted stock units to which they relate. These dividend equivalents
will be deemed reinvested in a number of restricted stock units determined based on the fair market value of The
Hartford common stock on the date the corresponding common stock dividend is payable to stockholders.

For performance shares and restricted stock units, if your active employment ceases during the applicable vesting
period, and you then satisfy the rules for Total Disability or Retirement under the Plan, you will receive, following
the end of the applicable period [or holding period, if later], a prorated award (subject, in the case of performance
shares, to the achievement of the applicable performance criteria) for the portion of the applicable period you were
actively employed (in those instances, your stock option would also become fully exercisable).

The estimated value of your long-term award (the option, the performance shares and the restricted stock units) as of
the date of grant was $[XXX], based on the closing price of The Hartford common stock on the Grant Date. Ultimately,
the value of the award will depend on the stock price at the time of option exercise (or at the end of the applicable
period [or holding period, if later] in the case of performance shares and restricted stock units), whether and to what
extent the performance share objectives are achieved, and other factors.

Your long-term incentive award, along with additional information regarding your award, is available at
www.netbenefits.fidelity.com. The information and documents available include the following: The Hartford 2010
Incentive Stock Plan Prospectus, Beneficiary Designation Forms, and award treatment upon termination of employment.
You are strongly urged to review all of the above documents, as well as the other information provided, at your
earliest convenience.

 

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If you cannot access the information, please contact Executive Compensation, The Hartford, HO-1-141, One Hartford
Plaza, Hartford, CT 06155, (860) 547-5000, for paper copies.

Please note that this letter, along with the Plan, constitutes your option, performance share and restricted stock unit
agreement with The Hartford. Although you are not required to sign any formal documents, your option and performance
share and restricted stock unit grants are subject to all of the terms and conditions of the Plan, as it may be amended
from time to time, and all of the rules, procedures and interpretations of the Plan that the Committee may adopt from
time to time.

Your selection as an award recipient is significant recognition of your past and anticipated future contributions to
The Hartford’s success. Please accept this award with my warm congratulations.

Sincerely,

[Liam E. McGee

Chairman, President and Chief Executive Officer]

 

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THE HARTFORD

FORM OF KEY EMPLOYEE RESTRICTED STOCK AWARD

	 	 	 
	 

	 	 
	Notice of Award / Award Agreement

	 	[DATE]
	 

	 	 
	[Name]

	 	 
	
 
	 	THE HARTFORD FINANCIAL SERVICES GROUP, INC.

Effective this date, you have been granted a restricted stock award as summarized below:

The Hartford Financial Services Group, Inc. (“The Hartford”) Restricted Stock Award

(Under The Hartford 2010 Incentive Stock Plan (“the Plan”))

[XXX] Shares of The Hartford Common Stock

This award of restricted stock is subject to the period of restriction as indicated below during which you may not
sell, exchange, transfer, pledge, hypothecate or otherwise dispose of the shares awarded. While your shares are so
restricted, you will enjoy the benefits of share ownership including dividend payments and voting rights. Unless
otherwise provided by the Plan, your shares will vest provided that you are continuously and actively employed by The
Hartford until the end of the restriction period, at which time you will be issued one or more unrestricted stock
certificates after satisfactory payment of applicable taxes. For further details regarding your award, including
circumstances in which your shares may vest earlier than the time identified below, refer to the Prospectus attached
hereto as Attachment A, which includes a copy of the Plan as well as a brief summary of the Federal tax consequences of
your award. Attachment B is the Administrative Rules for the Plan. One or more beneficiaries for your shares may be
designated on the Beneficiary Designation Form attached hereto as Attachment C. Unless revoked, your Beneficiary
Designation will apply to all restricted shares previously awarded to you under the Plan or The Hartford 2005 Incentive
Stock Plan and any restricted shares that may be awarded to you in the future. Should you wish to make a beneficiary
designation, the Beneficiary Designation Form must be returned to Executive Compensation, HO-1-141, The Hartford, One
Hartford Plaza, Hartford, CT 06155. If the form is not returned to Executive Compensation, your shares transferable to
a designated beneficiary will be transferred to your estate in the event of your death, except to the extent you
previously filed a Beneficiary Designation Form applicable to future awards under the Plan.

	 	 	 
	 

	 	 
	RESTRICTION PERIOD:

	 	[3 years from date of award]

Your restricted stock award is subject to the terms and conditions set forth in this notice, the Plan, and the
administrative rules, procedures and interpretations adopted pursuant to the Plan, and such amendments as may be made
to each of the foregoing from time to time. The foregoing documents, including any amendments, collectively constitute
your restricted stock award agreement with The Hartford for purposes of the award referred to herein.

Eileen Whelley

Executive Vice President, Human Resources

The Hartford Financial Services Group, Inc.

Business Address:

THE HARTFORD

ONE HARTFORD PLAZA

HARTFORD, CT 06155

 

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THE HARTFORD

FORM OF RESTRICTED STOCK AWARD FOR NON-EMPLOYEE DIRECTORS

	 	 	 
	 

	 	 
	Notice of Award

	 	[DATE]
	 

	 	 
	[NAME]

	 	THE HARTFORD FINANCIAL SERVICES GROUP, INC.

Effective this date, you have been granted a restricted stock award as summarized below:

The Hartford Financial Services Group, Inc. (“The Hartford”) Restricted Stock Award

(Under The Hartford 2010 Incentive Stock Plan (“the Plan”))

[XXX] Shares of The Hartford Common Stock

This award of restricted stock is subject to the period of restriction as indicated below during which you may not
sell, assign, transfer, pledge or otherwise dispose of the shares awarded. While your shares are so restricted, you
will enjoy the benefits of share ownership including dividend payments and voting rights. Your shares will vest
provided you actively and continuously serve as a director of The Hartford until the end of the restriction period
(unless otherwise provided by the Plan). Your shares may vest before the end of the restriction period in certain
circumstances described in the Plan. When your shares vest, you will be issued an unrestricted stock certificate for
the applicable number of shares. However, resignation from the Board will result in a forfeiture of all shares not
vested at the time of such resignation if so determined by the Compensation and Personnel Committee of The Hartford
Board. For further details regarding your award, refer to the Prospectus attached hereto as Attachment A, which
includes a copy of the Plan as well as a brief summary of the Federal tax consequences of your award. Attachment B is
the Administrative Rules for the Plan. One or more beneficiaries for your shares may be designated on the Beneficiary
Designation Form attached hereto as Attachment C. Should you wish to designate a beneficiary for your shares, the
Beneficiary Designation Form must be returned to me at The Hartford, One Hartford Plaza, HO-1-01, Hartford, CT 06155.
If the form is not returned, your shares transferable to a designated beneficiary will be transferred to your estate in
the event of your death, except to the extent that you previously filed a Beneficiary Designation Form applicable to
restricted stock awards. Unless revoked, your Beneficiary Designation Form will apply to all shares previously granted
under the Plan or The Hartford 2005 Incentive Stock Plan and any shares that may be awarded to you in the future.

	 	 	 
	 

	 	 
	RESTRICTED SHARES :

	 	RESTRICTION PERIOD :
	 

	 	 
	[XXX]

	 	[2010-2011 Board Service Year]

Your restricted stock award is subject to the terms and conditions set forth in this notice, the Plan, and the
administrative rules, procedures and interpretations adopted pursuant to the Plan, and such amendments as may be made
to each of the foregoing from time to time. The foregoing documents, including any amendments, collectively constitute
your restricted stock award agreement with The Hartford for purposes of the award referred to herein.

Eileen Whelley

Executive Vice President, Human Resources

The Hartford Financial Services Group, Inc.

 

 

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