The Hartford 2008 Annual Report Download - page 644

8. Timing of Payments.
Accrued Salary shall be paid no later than 10 days following the Date of Termination. Severance Payments and
Vested Benefits Enhancements shall be paid (i) if the event that constitutes a Change of Control also constitutes a
change in ownership or effective control, or a sale of substantially all of the assets, of the Company, in each case
within the meaning of Section 409A of the Code and the regulations promulgated thereunder (a “Section 409A
Change Event”), in a single lump sum payment, during the 10-day period following Executive’s Date of
Termination and (ii) if the event that constitutes a Change of Control is not a Section 409A Change Event, at the
same time and in the same manner as severance benefits would be payable under The Hartford Senior Executive
Severance Pay Plan, as in effect on January 1, 2009. Notwithstanding the foregoing, if at the Date of Termination,
Executive is a “specified employee” as determined under the practices and policies of the Company as
established in accordance with Section 409A of the Code, then in no event shall payment of the Severance
Payments or Vested Benefits Enhancement commence earlier than six months and one-day after Executive’s
Date of Termination; in the case of such a delay, the first payment made shall include interest on any delayed
amount determined based on prevailing short-term rates for the period between the date of payment and the Date
of Termination. A Pro-Rata Target Bonus, which payment is attributable to services performed by Executive
during the calendar year in which the Date of Termination occurs, shall be paid as follows: (a) if the Date of
Termination occurs in the first, second or third calendar quarter of any particular calendar year, then the Pro-Rata
Target Bonus shall be paid no later than 10 days following the Date of Termination, or (b) if the Date of
Termination occurs in the fourth calendar quarter of any particular calendar year, then the Pro-Rata Target Bonus
shall be paid no later than the same time as similar awards are paid to other executives participating in the plans
or programs under which the awards are paid, but in no event later than March 15 of the calendar year following
the end of such fourth calendar quarter. Vested Benefits and Equity Awards shall be paid no later than the time for
payment Determined Under the Applicable Plan except as otherwise expressly superseded or modified by this
Agreement. Tax Reimbursement Payments shall be paid at the time specified in Section 7 hereof.
In applying the provisions of Section 7, continued participation in the health insurance benefit plans shall be in two
parts: (i) the first part shall continue from the date of termination to the end of the 18-month period during which
Executive would have been eligible for continuation coverage under Section 601 et. seq. of the Employee
Retirement Income Security Act of 1974, as amended, and (ii) the second part shall commence on the first day
after the end of the period described in subclause (i) and shall end on the second anniversary of the Date of
Termination. To the extent Welfare Benefits Continuation consists of reimbursement of expenses, such
reimbursement shall be paid within 60 days of the submission of reasonably satisfactory evidence of such
expenses, in accordance with the generally applicable requirements under the applicable arrangement, but in no
event later than the end of the calendar year following the calendar year in which such expenses are incurred.
Any amount of expenses eligible for reimbursement of welfare benefits or in-kind benefits provided during any
calendar year shall not affect the expenses eligible for reimbursement or in-kind benefits to be provided in any
other calendar year.
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Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009