Document:

exv10w1

	 	 	 	 	 	 	 

	 

	 	NUANCE COMMUNICATIONS, INC.
	 	ONE WAYSIDE ROAD
	 	781 865 5000
	 

	 	 	 	BURLINGTON, MA 01803
	 	NUANCE.COM

March 29, 2010

Janet Dillione

663 West Boot Road

West Chester, PA 19380

Dear Janet:

Congratulations! It is with great pleasure that I confirm our employment offer, in the position of
Executive Vice President and General Manager, Healthcare Division reporting to Paul Ricci, Chief
Executive Officer of Nuance Communications, Inc. This position will be based in Burlington,
Massachusetts. The anticipated start date for your new position is March 15, 2010. At the next
Nuance Communications Board of Directors meeting following your start date, I will recommend to the
Board that you be appointed an Executive Officer.

Your starting annual base salary will be $450,000.00 paid on a bi-weekly basis. In addition to
your base salary, in FY10 you will be eligible for an annual bonus opportunity of $350,000.00
pro-rated according to your date of hire.

Once you have accepted our offer, I will recommend that the Nuance Communications Compensation
Committee grant you the following equity awards:

The first will be a time-based vesting restricted stock award of 150,000 shares with a three
year vesting schedule, 1/3 each year from the anniversary of the grant date, so long as you
remain a Nuance employee.

The second, a performance-based award will consist of 100,000 shares, which will vest, if
ever, upon the achievement of certain Board approved financial targets at the end of each
fiscal year as follows: 30% in 2010, 40% in 2011 and the remaining 30% in 2012. If
achievement is not met or you terminate employment before date of determination of
achievement, you will not vest in the installment for the applicable measurement period and
that portion of the award will lapse.

The third will be a time-based grant equaling $100,000 in value, converted to shares at the
fair market value on the date of grant, which will be issued as a signing bonus should you
execute this offer by February 26, 2010. These shares will vest 90 days after your hire
date so long as you remain a Nuance employee.

Should your employment with the company be terminated involuntarily by the Company for any reason
other than cause, death or disability, you will be eligible to receive twelve months base salary &
twelve months paid COBRA coverage if you execute the Company’s specified severance agreement
(including, among other things, a full release of claims and non-competition agreement). If there
is a change of control transaction and your employment is terminated within twelve months following
the change of control transaction by the Company for a reason other than cause, death or
disability, and you execute a severance agreement specified

Page  1 of 3

 

by the Company (including, among other things, a full release of claims and non-competition
agreement), you will be eligible to receive twelve months base salary & twelve months paid COBRA
coverage plus immediate acceleration of any unvested stock options or time based restricted stock
grants, excluding restricted stock grants issued as performance-based grants.

For purposes of this Agreement, “Cause” means Executive’s employment with the Company is terminated
after the CEO has found any of the following to exist: (i) Employee’s act of dishonesty or fraud;
(ii) Employee’s breach of the fiduciary duty or duty of loyalty owed to the Company, or breach of
the duty to protect the Company’s confidential and propriety information; (iii) Employee’s
conviction of a felony or a crime involving fraud, embezzlement, dishonesty, misappropriation of
funds or any other act of moral turpitude; (iv) Employee’s gross negligence or misconduct in the
performance of his/her duties; (v) Employee’s breach of this Agreement or written policies of the
Company; (vi) Employee’s engagement in conduct or activities that result or will potentially result
in negative publicity or public disrespect, contempt or ridicule of the Company or are detrimental
to the business or reputation of Company; (vii) Employee’s failure to abide by the lawful
directives of the Company; (viii) Employee’s failure to satisfactorily perform the duties of
his/her position; or (ix) Employee’s death or absence from work due to disability for a period in
excess of ninety (90) days in any twelve month period, to the extent consistent with the applicable
requirements of federal and state disability law.

As a full-time employee, you will be eligible for our comprehensive benefits package which goes
into effect as of your date of hire. The enclosed material outlines all of our benefits to which
you are entitled as a Nuance Communications employee. In addition to the standard employee benefits
you will be entitled to a $5,000 net tax & financial planning reimbursement allowance, an
individual term life insurance policy valued at $500,000 assuming medical clearance and enhanced
executive disability coverage which currently provides for a benefit of up to 60% of eligible
earnings, capped at $18,000 per month, which will be tax free upon qualification.

As part of the acceptance of this offer you understand your primary work location is in Burlington,
MA and it is the company’s desire to have you relocate to the area within 18 months of your hire
date. We do, however, understand that you are not in a position to relocate to Burlington
immediately but have agreed to spend the majority of your time working out of the Burlington
office. To aid you in this transition period we will provide you with a temporary living allowance
in the amount of $4,000.00 per month to be paid on a bi-weekly basis at the rate of $1,846.16 less
applicable withholdings. At the agreed upon time of your permanent relocation to the Burlington
area, this allowance will cease and you will then be entitled to receive a lump sum relocation
assistance payment of $50,000.00, less applicable withholdings, and an annual car allowance as per
company policy at such time (currently set at $15,000), also paid on a bi-weekly basis less
applicable withholdings. Should you be unable or unwilling to fulfill this relocation commitment
we will assess the feasibility of you continuing in your current role without relocating at the
time of this decision and discuss alternatives if necessary.

Your employment with Nuance Communications will be “at will”, meaning that either you or Nuance
Communications will be entitled to terminate your employment at any time and for any reason, with
or without cause.

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Any representations which may have been made to you are superseded by this offer. This is the full
and complete agreement between you and Nuance Communications. Although your job duties, title,
compensation and benefits, as well as Nuance Communications’ personnel policies and procedures, may
change from time to time, the “at will” nature of your employment may only be changed in an express
written agreement signed by you and a duly authorized officer of Nuance Communications.

This offer is contingent upon your satisfying the conditions of hire, including providing proof of
your eligibility to work in the United States and successful completion of a background check. An
Employment Eligibility Verification form is attached to this letter. Please read it carefully and
call me if you have any questions. Also, like all Nuance Communications employees, you will be
required, as a condition to your employment, to sign Nuance Communications’ standard Non-Compete,
Proprietary Information, & Conflict of Interest Agreement, a copy of which is attached hereto.

We, at Nuance Communications, are proud of our reputation and we feel confident that you will be a
positive addition to the Sr. Management Team, while the position will afford you the opportunity to
grow your professional skill set.

Janet, we would appreciate it if you would confirm your acceptance of our employment offer, by
signing this offer confirmation letter and returning it to my attention as soon as possible.

If you have further questions regarding our offer, feel free to contact me at (781) 565-5310. I
look forward to our working together and your joining the Nuance Communications organization.

Sincerely,

	 	 	 

	/s/ Dawn Howarth
 

Dawn Howarth

	 	 
	SVP Human Resources
	 	 

	 	 	 

	cc:

	 	P. Ricci
	 

	 	Employee File

	 	 	 

	Enclosures/Forms:

	 	Employment Eligibility Verification form, Benefits Summary, Non-Compete, Proprietary
Information, & Conflict of Interest Agreement.

I ACCEPT THE OFFER OF EMPLOYMENT AS STATED ABOVE:

	 	 	 	 	 	 	 

	/s/ Janet Dillione Connor
 

	 	 
	 	3/29/2010
 

	 	 
	New Hire Signature

	 	 	 	Date of Acceptance	 	 

Page  3 of 3exv10w1

Exhibit 10.1

April 22, 2010

Mr. Robert M. Smith, Jr.

10891 Feathersong Lane

Scottsdale, Arizona 85255

Dear Bob:

     This Letter Agreement, including the Exhibits hereto (collectively, the “Agreement”), reflects
our mutual understanding with respect to your separation from employment as a result of your
retirement and sets forth the payments and benefits that you will be eligible to receive in
connection with such retirement.

          1. Retirement. (a) You will retire from your positions as Executive Vice President of Delphi
Financial Group, Inc. (“DFG”) and its subsidiary, Delphi Capital Management, Inc. (the “Company”,
and, collectively with DFG and each of its other subsidiaries, the “Companies”), as well as from
the Boards of Directors of DFG and of the Company and the other officer, director and board and
other committee memberships you presently occupy with the other Companies, as listed on Exhibit A
hereto, effective as of the close of business on April 30, 2010 (the “Retirement Date”).
Effective on the Retirement Date, you will have no authority to take any action on behalf of or
otherwise bind any of the Companies.

          (b) Any press release or other public announcement by the Companies regarding your retirement
will be furnished to you in advance for your review and approval, such approval not to be
unreasonably withheld.

          2. Payments and Benefits Through the Retirement Date. Until the close of business on the
Retirement Date, you will continue to receive (a) salary payments at your current annual base
salary rate (less applicable tax withholdings and deductions), paid in accordance with the
Company’s payroll practices in the ordinary course, and (b) the benefits at the level and of the
type you currently receive.

          3. Other Payments and Benefits. If within 22 days following the date of this Agreement (but
not before the Retirement Date) you sign the General Release in the form attached as Exhibit B
hereto (the “General Release”) and it becomes effective as provided in paragraph 12(b) hereof, you
will receive the payments and benefits described in this paragraph 3 in the manner and time frames,
and subject to the conditions and restrictions, described herein. You acknowledge and agree that
the payments and benefits described in this paragraph 3 differ from and are in excess of the total
payments

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and benefits you would otherwise be eligible to receive upon retirement, if not for this
Agreement. Such payments and benefits are as follows:

          (a) On the date that follows the Effective Date (as such term is defined in paragraph 12(b)
hereof) by three (3) days, the Company will pay to you the amount of $1,000,000, less applicable
tax withholdings. Such payment shall be made by direct deposit into the account presently
designated by you for the receipt of payments of your salary.

          (b) The Company will make a series of seventy-five (75) monthly payments to you, each in the
amount of $6,070.15, less applicable tax withholdings, beginning on May 15, 2010 and ending on July
15, 2016. Such payments shall be made by direct deposit into the account presently designated by
you for the receipt of payments of your salary or such other account designated by you in the
future for this purpose by written notice to the Company.

          (c) Notwithstanding anything to the contrary contained in DFG’s 2003 Employee Long-Term
Incentive and Share Award Plan (the “Share Award Plan”) or the award agreements governing the
outstanding DFG employee stock options previously granted to you under such plan, all such options
that are exercisable as of the Retirement Date will remain exercisable for the period ending at the
close of business on April 30, 2011 in accordance with the terms of the Share Award Plan. The
options that are exercisable as of the date hereof are enumerated in Exhibit C hereto.

          (d) Notwithstanding anything to the contrary contained in the Share Award Plan or the award
agreement governing the 12,701 Restricted Share Units previously granted to you by DFG under the
Share Award Plan that will not have become vested as of the Retirement Date, such Restricted Share
Units will be deemed to be vested and the shares of Class A Common Stock of DFG underlying such
Restricted Share Units will be delivered to you in freely tradeable form on or about October 30,
2010. You will be afforded the opportunity, in connection with such delivery, to have shares
withheld from such delivery in such number as will satisfy the minimum tax withholding obligations
arising from such delivery.

          (e) During the period from the Retirement Date through April 30, 2013 (the “Benefit
Continuation Period”), you and your spouse will be eligible for applicable medical and dental
benefits pursuant to the terms of the applicable plans covering the senior executive-level
employees of the Company, taking into account any changes to such terms and/or plans following the
date of this Letter Agreement which apply generally to such executives, with the cost of such
benefits to be borne by the Company. For the avoidance of doubt, the preceding sentence is
intended to provide you with such benefits on terms that are at least as favorable as the terms
that are from time to time in effect during the Benefit Continuation Period with respect to the
then-current senior executive-level employees of the Company. Such medical and dental benefits
shall not, however, include any benefits which, pursuant to applicable law, rule or regulation
(including but not limited to those relating to taxation), the Company may only provide to

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its current active employees; for example, the health care spending account. Upon the
conclusion of the Benefit Continuation Period, you will be afforded the opportunity to elect COBRA
continuation coverage, and, if you elect such coverage, the cost of such coverage will be borne by
the Company for the shorter of the period during which such coverage continues or (18) months.
Notwithstanding the foregoing, if, during the Benefit Continuation Period, you obtain new
employment pursuant to which you are eligible for medical and dental benefits which, taken as a
whole, are not materially less favorable than those then in effect pursuant to this paragraph 3(d)
(which comparison shall be made without regard to the fact that such new benefits may entail cost
to the employee), the Company’s obligations under this paragraph 3(d) shall terminate in their
entirety.

          (f) During the Benefit Continuation Period, you will receive group life and accidental death
and dismemberment insurance coverages pursuant to the terms described in the letter from the
Company’s affiliate, Reliance Standard Life Insurance Company (“RSL”), to you dated March 17, 2008
and the applicable group insurance policy, taking into account any changes to such terms and/or
such policy following the date of this Letter Agreement which apply generally to the senior
executive-level employees of the Company, with the cost of such coverages to be borne by the
Company.

          (g) The Company will transfer title to your company car to you and permit you to retain the
laptop computer and the Blackberry issued to you by the Company. You may retain the telephone
number presently assigned to your Blackberry and the Company shall cooperate with you with respect
to transfer of such number.

          (h) The Company shall reimburse you up to $2,500 for travel and entertainment expenses you
may incur through May 2010 in connection with a “farewell” dinner in New York for you and such
other employees of the Company as you shall select.

          (i) The Company shall pay directly to your attorneys your actual legal fees relating to or
arising from the negotiation or execution of this Agreement up to the amount of $12,000, to be paid
promptly after being invoiced by such attorneys.

          (j) The Company will execute and deliver to you a general release in the form attached
hereto as Exhibit D.

          4. Benefits and Expenses. (a) The Company acknowledges and confirms that your benefits under
the RSL Pension Plan, the RSL Supplemental Executive Retirement Plan (the “SERP”), the RSL
Retirement Savings Plan and the RSL Non-Qualified Deferred Compensation are fully vested and are
unaffected by this Agreement. The Company further acknowledges and confirms that the provision to
you of the payments contemplated by paragraph 3(b) hereof shall not in any manner affect your
rights to vested benefits under the plans referenced in the preceding sentence, including but not
limited to any early retirement benefits under the RSL Pension Plan or the SERP that you elect to
receive in accordance with the terms of such plans.

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          (b) The Company shall reimburse you for business expenses incurred by you through April 30,
2010 in accordance with Company policies.

          (c) The shares of Class A Common Stock of DFG underlying the Restricted Share Units
previously granted to you by DFG under the Share Award Plan that are vested as of the Retirement
Date, totaling 33,715 in number, will be delivered to you in freely tradeable form on or about
October 30, 2010, in accordance with the terms of the award agreement relating to such Restricted
Share Units. You will be afforded the opportunity, in connection with such delivery, to have
shares withheld from such delivery in such number as will satisfy the minimum tax withholding
obligations arising from such delivery.

          5. Indemnification and Insurance. It is expressly acknowledged and confirmed that (a) the
indemnification obligations of DFG to you under its certificate of incorporation and by-laws will
continue in effect in accordance with their terms subsequent to the termination of your employment
and (b) the directors’ and officers’ liability insurance policy presently maintained by DFG will
provide coverage to you in accordance with its terms subsequent to the termination of your
employment.

          6. Claims. You represent that as of the date of this Agreement, you have not filed, directly
or indirectly, nor caused to be filed, any Claims (as such term is defined in the General Release)
against the Company, DFG or any of the other Releasees (as such term is defined in the General
Release) in any forum, including federal, state or local court or in arbitration, or any
administrative proceeding with any federal, state or local administrative agency. You agree that
should any administrative agency or third party pursue any claims on your behalf, you waive your
right to any monetary or other recovery of any kind. Likewise, the Company and DFG represent that,
as of the date of this Agreement, they have not filed, directly or indirectly, nor caused to be
filed, any Claims against you in any such forum, nor, to the best to their knowledge, has any of
the Releasees done so.

          7. Company Property; Non-Disparagement; Proprietary Information.

          (a) You agree, within five (5) business days of the Retirement Date, to (i) return to the
person designated by the Company all physical property and documents of the Companies in your
possession, custody or control, except to the extent provided in paragraph 3(f) hereof, (ii)
permanently delete (without retaining any copies) from all of the computers and other electronic
storage devices in your possession, custody or control all documents, e-mails and other information
in electronic form relating in any manner to the businesses of the Companies, including but not
limited to documents, e-mails and information containing Proprietary Information (as such term is
defined in paragraph 7(b) hereof), and (iii) provide a signed certification to the Company that you
have fully complied with the requirements of this paragraph 7(a). Notwithstanding the foregoing,
you may retain electronic and hard copies of your Outlook address book.

          (b) You agree that all proprietary or confidential information and trade secrets concerning
the Companies or their businesses, products, services or employees,

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including but not limited to information concerning business strategies or plans, systems, products and
services and their development, technical information, marketing, trading, investments and
investment strategies, investment management activities and procedures, pricing and underwriting
techniques, cost, credit and financial data, and customer, client, vendor, and employee information
(“Proprietary Information”) is the exclusive property of the Companies. You acknowledge and agree
that you have an ongoing obligation to keep strictly confidential, and not to use (either directly
or indirectly) for any purpose, any Proprietary Information, except that you may disclose any
Proprietary Information which you are required to disclose by a court of law, or by any
governmental agency or self-regulatory organization having supervisory authority over the
Companies’ businesses. Prior to any such disclosure, however, you shall give notice to the Company
of any such request or demand for Proprietary Information promptly upon your receipt of same and
shall reasonably cooperate with the Companies in any application any of them may make seeking a
protective order barring disclosure of such Proprietary Information.

          (c) You agree not to make any disparaging remarks, comments or statements, whether verbally,
in writing or electronically (including but not limited to Internet postings), regarding any of the
Releasees. The Company agrees that it and the other Companies will not make any disparaging
remarks, comments or statements, whether verbally, in writing or electronically (including but not
limited to Internet postings), regarding you; the foregoing provision shall apply not only to such
Companies but also to the members of the Boards of Directors of the Companies and to the following
individuals: Robert Rosenkranz, Donald Sherman, Chad Coulter, Lawrence Daurelle, Mark Wilhelm and
Debra Staples. For purposes of this paragraph 7, disparaging remarks, comments or statements
include, but are not limited to, those that impugn the character, honesty, integrity or morality or
business acumen or abilities in relation to the individual or entity who or which is the subject of
such remarks, comments or statements.

          (d) You and the Company acknowledge and agree that the restrictions
contained in this paragraph 7 are reasonable and necessary to protect and preserve the legitimate
interests, properties, goodwill and business of the Companies and of you, that the Company and you
would not have entered into this Agreement in the absence of such restrictions and that irreparable
injury will be suffered by the Companies or you should the other party breach the provisions of
this paragraph 7.

          (e) You acknowledge and agree that a material breach of the provisions of this paragraph 7
cannot be adequately compensated by monetary damages, and that in the event of a material breach or
threatened breach of this paragraph 7, the Company or you, as the case may be, shall be entitled to
preliminary and permanent injunctive relief, without the necessity of proving actual damages. In
the event that the restrictions contained in this paragraph 7 should ever be adjudicated to exceed
those permitted by applicable law in any jurisdiction, it is the intention of the parties that such
provisions shall be amended to conform to the maximum limitations permitted by applicable law, that
such amendment shall apply only within the jurisdiction of the court that made such adjudication
and that the provision otherwise shall be enforced to the maximum extent permitted by law.

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          (f) In the event of a material breach or threatened breach by either party of the
obligations under this paragraph 7, each party agrees that suit may be brought, and each party
consents to personal jurisdiction, in the United States District Court for the Southern District of
New York, or if such court does not have jurisdiction or will not accept jurisdiction, in any court
of general jurisdiction in the State of New York which is situated within such district. Each
party consents to the non-exclusive jurisdiction of any such court in any such suit, action or
proceeding, and waives any objection to the laying of venue of any such suit, action or proceeding
in any such court. In any such proceeding, the court shall have the authority to award reasonable
costs, expenses and attorneys’ fees to the party that substantially prevails.

          8. Acknowledgement. The parties hereto agree and acknowledge that the agreements by the
Company described herein, and the settlement and termination of any asserted or unasserted claims
against the Releasees, are not and shall not be construed to be an admission of any violation of
any federal, state or local statute or regulation, or of any duty owed by any of the Releasees to
you.

          9. Partial Invalidity. Except in the event that the General Release is not executed by you
within the time frame set forth in paragraph 3 hereof or you revoke the General Release after
executing it pursuant to paragraph 3 thereof, in either of which events this Agreement shall be
null and void in its entirety, the invalidity or unenforceability of any provision of this
Agreement shall have no effect upon, and shall not impair the validity or enforceability of, any
other provision of this Agreement.

          10. Tax Matters. This Agreement is intended to
comply with the Section 409A Rules. Payments under this Agreement shall be made under the
“separation pay” exception of the Section 409A Rules to the maximum extent allowable and otherwise
in accordance with the Section 409A Rules. For purposes of the Section 409A Rules, your right to
receive payments under the Agreement shall be treated as a right to a series of separate payments.
For purposes of this paragraph 10, the “Section 409A Rules” shall mean Section 409A of the Internal
Revenue Code, the regulations issued thereunder, and all related interpretive notices, rulings and
other guidance issued by the Internal Revenue Service. In no event may you, directly or
indirectly, designate the calendar year of any payment made or to be made to you. All payments and
benefits furnished under this Agreement are subject to applicable tax withholdings, and you are
solely responsible for all taxes arising in connection with this Agreement.

          11. Voluntary Agreement.

          (a) You acknowledge and agree that (i) you have read and understand each of the provisions of
this Agreement; (ii) you have consulted with an attorney prior to signing this Agreement; and (iii)
you have at least 21 calendar days from the date of this Agreement to review and consider your
decision to sign it.

          (b) Once you sign this Agreement, you have 7 calendar days to revoke it. You may do so by
delivering written notice of your revocation within the 7-day revocation period. This Agreement
will be your valid and binding obligation on the 8th

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day after you sign it, so long as you have not revoked it during the 7-day revocation period.

          (c) For the avoidance of doubt, the references to the Agreement in this paragraph 11 do not
contemplate your signing the General Release concurrently with your signing this Agreement. The
form of General Release is merely an Exhibit to this Agreement and the signing of the General
Release will be governed by paragraph 12 hereof.

          12. Voluntary General Release.

          (a) You acknowledge and agree that (i) you will not sign the General Release until on or
after the Retirement Date; (ii) you will have consulted with an attorney prior to signing the
General Release; and (iii) you have at least 21 calendar days from the date of this Agreement to
review and consider whether you wish to sign the General Release. You further acknowledge that you
are executing this Agreement of your own volition with a full understanding of its terms and
effects, and that none of the Releasees, nor their agents, representatives, or attorneys, has made
any representations to you concerning the terms or effects of this Agreement other than those
contained herein.

          (b) You understand that, once you sign the General Release, you will have 7 calendar days to
revoke it. You may do so by delivering to the Company’s General Counsel written notice of your
revocation within the 7-day revocation period. The General Release will become effective on the 8th
day after you sign it; provided that you have not revoked it during the 7-day revocation period
(the date of such effectiveness, the “Effective Date”).

          13. Governing Law. This Agreement shall be governed by the laws of the State of New York
(regardless of conflict of laws principles) as to all matters including without limitation
validity, construction, effect, performance and remedies.

          14. Notices. All notices, requests and other communications under this Agreement and the
General Release will be in writing to the following address, as applicable (or to such other
address as to which notice is given in accordance with this paragraph 14): (a) if to you, to the
address first set forth above, and (b) if to the Company, to its General Counsel, c/o Reliance
Standard Life Insurance Company, 2001 Market Street, Suite 1500, Philadelphia, PA 19103-7303. Each
such notice, request or other communication will be effective only when received by the receiving
party.

          15. Transferability. This Agreement may be assigned to any subsidiary, affiliate or successor
of the Company and shall inure to the benefit of and be binding upon you and the Company and the
personal representatives, estates, successors and assigns of each; provided, however, that any
assignment by the Company shall not relieve it of its obligation to ensure the satisfaction of its
obligations to you pursuant to paragraph 3 hereof. You may not assign any of your personal
undertakings hereunder.

          16. Counterparts. This Agreement may be executed in counterparts and in

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electronic form via facsimile transmission or PDF document transmitted via e-mail. If this
Agreement is executed in electronic form, the parties shall promptly thereafter exchange manually
executed original counterparts of this Agreement; provided, however, that the failure of either
party to provide such a counterpart to the other shall not affect the effectiveness, validity or
enforceability of this Agreement.

          17. Entire Agreement. This Agreement sets forth the entire agreement and understanding
relating to your employment relationship with and retirement from the Company; supersedes all prior
discussions, negotiations, understandings and agreements concerning your employment with the
Company and separation therefrom, including but not limited to the letter agreement between the
Company and you dated March 18, 1994 and the undated document furnished to you by the Company in
February 2008, and may not be amended except by mutual written agreement of the parties.

	 	 	 	 	 	 	 

	DELPHI CAPITAL MANAGEMENT, INC.	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	DELPHI

	 	FINANCIAL GROUP, INC.	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

I HAVE READ THIS LETTER AGREEMENT AND UNDERSTAND ALL OF ITS TERMS. I SIGN AND ENTER INTO THIS
LETTER AGREEMENT KNOWINGLY AND VOLUNTARILY, WITH FULL KNOWLEDGE OF WHAT IT MEANS.

	 	 	 	 	 	 	 

	By:
	 	 	 	 	 	 
	 

	 	 

Robert M. Smith, Jr.
	 	 
	 	Date

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EXHIBIT A

Reliance Standard Life Insurance Company of Texas

Director

Chief Investment Officer

Committee Memberships: Executive Committee

Reliance Standard Life Insurance Company

Director

Chief Investment Officer

Committee Memberships: Executive Committee; Finance Committee; Pension and Retirement Savings Committee

First Reliance Standard Life Insurance Company

Director

Chief Investment Officer

Committee Memberships: Investment Committee

Chestnut Investors, II, Inc.

Director

Vice President

Chestnut Investors, III, Inc.

Director

Vice President

Chestnut Investors, IV, Inc.

Director

Executive Vice President

RSL Marketing, Inc.

Director

Vice President

DFG Corporation

Director

Vice President

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DFG II Corporation

Director

Vice President

Delphi Brokerage Company

Director

Vice President

SIG Holdings, Inc.

Director

Vice President

Chief Financial Officer

Matrix Absence Management

Director

Matrix Payroll Services, Inc.

Director

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EXHIBIT B

GENERAL RELEASE

     In exchange for the payments and benefits contemplated by the letter agreement among Delphi
Capital Management, Inc. (the “Company”), Delphi Financial Group, Inc. and me dated April 22, 2010
(the “Letter Agreement”), which payments and benefits will be provided to me following the
Effective Date (as defined below) of this General Release, subject to the terms and conditions of
the Letter Agreement, and my execution and delivery of this General Release on or after the
Retirement Date (as defined in the Letter Agreement) to the Company’s General Counsel, c/o Reliance
Standard Life Insurance Company, 2001 Market Street, Suite 1500, Philadelphia, PA 19103-7303, so
long as I do not revoke it within the Revocation Period, as such term is defined below:

     1. (a) On behalf of myself, my agents, assignees, attorneys, heirs, executors, and
administrators, I hereby release Delphi Capital Management, Inc., Delphi Financial Group, Inc. and
their predecessors, successors and assigns, its and their current and former parents, affiliates,
subsidiaries and divisions, including but not limited to Reliance Standard Life Insurance Company
and Safety National Casualty Corporation (individually and collectively, the “ Companies”), and all
of their current and former officers, directors, employees, agents and affiliates (together with
the Companies, individually and collectively, the “Releasees”), from any and all manner of actions
and causes of actions, suits, debts, claims and demands whatsoever in law or in equity, which I
ever had, now have, or hereafter may have, or which my heirs, executors or administrators hereafter
may have, by reason of any matter, cause or thing whatsoever from the beginning of my employment
with the Company to the date of this General Release and particularly, but without limitation of
the foregoing general terms, any claims arising from or relating in any way to my employment
relationship and the termination of such employment relationship, including but not limited to any
claims which have been asserted, could have been asserted, or could be asserted now or in the
future under the federal, state or local laws referenced in paragraph 1(b) of this General Release
(individually and collectively, “Claims”).

     (b) This General Release includes, but is not limited to, a release of all rights and Claims
under any federal, state or local laws, including any Claims under the New York Human Rights Law,
N.Y. Exec. Law §§ 290 et seq.; New York Equal Pay Law, N.Y. Lab. Law §§ 194 to 198-a., the New York
Whistleblower Protection Law, N.Y. Lab. Law §§ 215 and 740, the New York Payment of Wages Law, N.Y.
Lab Law §§ 190 et seq., the Arizona Civil Rights Act, Ariz. Rev. Stat. §§ 41-1461 et seq., the
Arizona Employment Protection Act, Ariz. Rev. Stat. §§ 23-1501 et seq., the Rehabilitation Act of
1973, 29 USC §§ 701 et seq., as amended, Title VII of the Civil Rights Act of 1964, 42 USC §§ 2000e
et seq., as amended, the Civil Rights Act of 1991, 2 USC §§ 60 et seq., as applicable, the Age
Discrimination in Employment Act of 1967, 29 USC §§ 621 et seq., as amended ( “ADEA”), the
Americans with Disabilities Act, 29 USC §§ 706 et seq., and the Employee Retirement Income Security
Act of 1974, 29 USC §§ 301 et seq., as amended, as well as any other federal, state, or local
statute, regulation, or common law

11

 

regarding employment, employment discrimination, termination, retaliation, equal opportunity,
or wage and hour. I specifically understand that I am releasing Claims based on age, race, color,
sex, sexual orientation or preference, marital status, religion, national origin, citizenship,
veteran status, disability and other legally protected categories.

     (c) This General Release also includes, but is not limited to, a release of any contractual
Claims, including but not limited to any Claims under the letter agreement between the Company and
me dated March 18, 1994 and the undated document furnished to me by the Company in February 2008,
any tortious act or other civil wrong, attorneys’ fees, and all compensation and benefit claims
including without limitation Claims concerning salary, bonus, and any award(s), grant(s), or
purchase(s) under any equity or other compensation plan.

     (d) This General Release applies to Claims that I know about and those I may not know about
having arisen at any time on or before the date of execution of this General Release. I expressly
waive all rights afforded by any statute that expressly limits the effect of a release with respect
to unknown claims. I acknowledge the significance of this release of unknown claims and the waiver
of statutory protection against a release of unknown claims which provides that a general release
does not extend to claims that the creditor does not know or suspect to exist in his favor at the
time of executing the release, which if known by it must have materially affected its settlement
with the debtor.

     (e) I acknowledge that this General Release includes, but is not limited to, all Claims,
known or unknown, that I have or may have against the Companies and the Releasees through the
Effective Date of this General Release. Notwithstanding anything herein, I expressly reserve and do
not release pursuant to this General Release (and the definition of “Claims” will not include):
(i) my rights with respect to the enforcement of the provisions of the Letter Agreement and (ii) my
rights to the vested benefits specified in paragraph 4 of the Letter Agreement.

     (f) This General Release does not apply, however, to any claims that cannot be released as a
matter of law.

     2. I acknowledge that I have had at least 21 calendar days from the date of delivery of the
Letter Agreement to consider the terms of this General Release, that I have consulted with an
attorney regarding the terms of this General Release prior to executing it, that I fully understand
all of the terms and conditions of this General Release, that I understand that nothing contained
herein contains a waiver of claims arising after the date of execution of this General Release, and
that I am entering into this General Release knowingly, voluntarily and of my own free will.

     3. I understand that once I sign and return this General Release to the Company’s General
Counsel, I have 7 calendar days to revoke it. To do so, I must deliver to the Company’s General
Counsel, c/o Reliance Standard Life Insurance Company, 2001 Market Street, Suite 1500,
Philadelphia, PA 19103-7303, written notice of such revocation within the 7-day revocation period
(the “Revocation Period”). This General

12

 

Release will become effective on the 8th day after I sign and return it to the Company’s
General Counsel (“Effective Date”), so long as I have not revoked it during the Revocation Period.

YOU ARE HEREBY ADVISED BY THE COMPANY TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS GENERAL
RELEASE.

I HAVE READ THIS GENERAL RELEASE AND UNDERSTAND ALL OF ITS TERMS. I SIGN AND ENTER THIS GENERAL
RELEASE KNOWINGLY AND VOLUNTARILY, WITH FULL KNOWLEDGE OF WHAT IT MEANS.

	 	 	 	 	 	 	 	 	 

	By:
	 	 	 	 	 	 	 	 
	 

	 	 

Robert M. Smith, Jr.
	 	 
	 	 

Date
	 	 

13

 

EXHIBIT C

Exercisable Options

	 	 	 	 	 	 	 	 	 
	Grant Date	 	Number of Options	 	Exercise Price
	2/11/2004
	 	 	18,100	 	 	$	25.8667	 
	2/9/2005
	 	 	15,000	 	 	$	29.4333	 
	2/8/2006
	 	 	12,000	 	 	$	31.3533	 
	2/16/2007
	 	 	6,000	 	 	$	40.83	 
	2/15/2008
	 	 	67,500	 	 	$	29.14	 

14

 

EXHIBIT D

GENERAL RELEASE

     In consideration of the execution of the letter agreement among Delphi Capital Management,
Inc. (the “Company”), Delphi Financial Group, Inc. (“DFG” and, together with the Company, the
“Companies”) and Robert M. Smith, Jr. (“Smith”), dated April 22, 2010 (the “Letter Agreement”), and
subject to the terms and conditions of the Letter Agreement:

	 	1.	 	The Companies, on behalf of themselves and the entities and persons included in the
definition of the term “Releasees” contained in the General Release attached as Exhibit B
to the Letter Agreement (hereafter, “the Company Releasees”), hereby irrevocably and
unconditionally waive, release, and forever discharge and covenant not to sue Smith, from
any and all claims, liabilities and causes of action of any kind which the Company
Releasees ever had, now have or hereafter may have against Smith by reason of any matter,
cause or thing whatsoever occurring on or at any time prior to the date hereof, including,
but not limited to, all claims arising out of or from or regarding or pertaining to any
transaction, dealing, conduct, act or omission, or any other matters or things relating to
the employment relationship and/or the termination of the employment relationship, based
upon any contract, whether express or implied, oral or written, tort or public policy, and
claim for costs, fees or expenses (individually and collectively, “Claims”).
	 
	 	2.	 	The Company Releasees covenant and agree that they will not assert any claim or
initiate any legal or other action against Smith with respect to any matter covered by the
foregoing release. The Company Releasees acknowledge and agree that if any of them should
hereafter make against Smith any claim or demand or commence or threaten to commence any
action, claim or proceeding otherwise prohibited by this General Release, this General
Release may be raised as a complete bar to any such action, claim or proceeding and Smith
may recover from the Company all costs incurred in connection with such action, claim or
proceeding, including attorneys’ fees if it is determined that any such action, claim or
proceedings is prohibited by the Letter Agreement or this General Release.
	 
	 	3.	 	This General Release applies to Claims that the Company Releasees know about and
those they may not know about having arisen at any time on or before the date of execution
of this General Release. The Company Releasees expressly waive all rights afforded by any
statute that expressly limits the effect of a release with respect to unknown claims. The
Company Releasees acknowledge the significance of this release of unknown claims and the
waiver of statutory protection against a release of unknown claims which provides that a
general release does not extend to claims that the creditor does not know or suspect to

15

 

	 	 	 	exist in his favor at the time of executing the release, which if known by it must have
materially affected its settlement with the debtor.
	 
	 	4.	 	Notwithstanding anything herein, the Company Releasees expressly reserve and do not
release pursuant to this General Release (and the definition of “Claims” will not include)
any rights with respect to the enforcement of the provisions of the Letter Agreement.
	 
	 	5.	 	This General Release does not apply, however, to any claims that cannot be released
as a matter of law

	 	 	 

	Delphi Capital Management, Inc.
	 	 
	 
	 	 
	By:                                                             

	 	Date:                                         
	 
	 	 
	Delphi Financial Group, Inc.
	 	 
	 
	 	 
	By:                                                             

	 	Date:                                         

16

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