SEC Contract Filing

Filing Date: 2018-05-24

Document Content:
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<TYPE>EX-10.7
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<FILENAME>d591162dex107.htm
<DESCRIPTION>EX-10.7
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<TITLE>EX-10.7</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.7 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>AWARD AGREEMENT SUPPLEMENT </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This Award Agreement Supplement (this &#147;Supplement&#148;) provides terms that are part of your Award Agreement (the &#147;Agreement&#148;)
under the Brighthouse Financial, Inc. 2017 Stock and Incentive Compensation Plan (the &#147;2017 Plan&#148;). In this Supplement, &#147;Award&#148; refers to the Performance Shares, Restricted Stock Units, Stock Options, Performance Units, or
Restricted Units, that are the subject of the Award Agreement. All capitalized terms used in this document that are not defined herein are defined in the 2017 Plan document. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B><FONT STYLE="white-space:nowrap">S-1.</FONT> </B><B><U>Code Section</U></B><B><U></U></B><B><U>&nbsp;162(m) Goals</U></B>. To the extent
the terms of your Award require the Company meet one or more of the Code Section&nbsp;162(m) Goals: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) for Restricted Stock Units or
Restricted Units, including those divided into Unit Tranches, the &#147;Code Section&nbsp;162(m) Goals&#148; shall be attainment of any one or more of: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(1) Improvement in the Company&#146;s Statutory Surplus position over the Performance Period. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(2) Combined Risk Based Capital ratio of at least 400% as of the end of the Performance Period on an Authorized Control Level.
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(3) Positive GAAP Operating ROE as of the end of the Performance Period; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(4) Insurer Financial Strength Rating of at least <FONT STYLE="white-space:nowrap">&#145;A-&#146;</FONT> from one or more
credit rating agency as of the end of the Performance Period. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(5) Positive Value of New Business sold during the
Performance Period for the annuity segment of the Company measured as of the end of the Performance Period. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(6) Variable
Annuity funding at a level of CTE 95 or above as of the end of the Performance Period. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) For purposes of this Section <FONT
STYLE="white-space:nowrap">S-1,</FONT> the following definitions shall apply: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(1) &#147;Statutory Surplus&#148; means
improvement in the surplus position of the Company as defined for statutory accounting purposes. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(2) &#147;Combined Risk
Based Capital Ratio&#148; means the Risk Based Capital Ratio reported by the Company. Both Risked Based Capital Ratio and Authorized Control Level shall have the meaning ascribed by the NAIC. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(3) &#147;GAAP Operating ROE&#148; means the Company&#146;s return on equity measured as Operating Income over Shareholder
Equity excluding Accumulated Other Comprehensive Income (&#147;AOCI&#148;). All the capitalized terms used in this definition will have the meaning ascribed under generally acceptable accounting principles. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(4) &#147;Credit Rating of at least
<FONT STYLE="white-space:nowrap">&#145;A-&#146;&#148;</FONT> means that the Company&#146;s financial strength rating as published by at least one nationally recognized statistical rating organization is
<FONT STYLE="white-space:nowrap">&#145;A-&#146;</FONT> or greater. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(5) &#147;Value of New Business&#148; means the present
value of lifetime cash to the Company from the product exceeds the present value of cash outflows from the Company in support of the product. Each present value calculation will have a discount rate equal to the cost of capital. The cost of capital
shall be measured using 10 year treasury note rate at the time of the calculation, plus 500 basis points. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(6) &#147;CTE
95&#148; shall be defined as stated in the effective Form 10 for the Company. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) In calculating performance relative to the Co