The Hartford 2008 Annual Report Download - page 734

3.2 Eligibility of Employees. Employees who qualify as Eligible Employees pursuant to this Section shall be eligible to
elect to participate in the Plan in accordance with Section 3.3.
A. Eligible Employee Defined. Except as otherwise required by Code Section 423 or other applicable law, an
Employee shall be considered an Eligible Employee for purposes of participation in the Plan on the first date such
Employee has completed at least six months of service as an Employee of the Company, provided, however, that
(i) except as the Board or the Committee may otherwise provide on a basis uniformly applicable to all persons similarly
situated, “Eligible Employee” shall not include any “Ineligible Person,” which means any person who performs
services for the Company as an independent contractor or under any other non-employee classification, and (ii) such
Employee shall be eligible to open an account with the registered broker-dealer firm and/or banking entity designated
as recordkeeper for the Plan.
B. Rehired Employees. If an Eligible Employee who has ceased to be an Employee becomes an Employee again on a
date thereafter, such Employee automatically shall become an Eligible Employee effective as of the Offering
Commencement Date following such date.
C. Employees Deemed Ineligible for Participation
(i) Receipt of Hardship Withdrawal. If an Employee receives a “safe harbor” hardship withdrawal under The
Hartford Investment and Savings Plan, or any other plan maintained by the Company or its affiliates that is
qualified under Code Section 401(k), and such Employee ceases certain savings for a period of not less than
6 months as required by any such plan, such Employee shall be deemed an ineligible Employee for such 6 month
period. Such Employee shall no longer be deemed an ineligible Employee as of the Offering Commencement Date
following the end of such period.
(ii) Receipt of Benefits for Total Disability. An Employee shall be deemed an ineligible Employee during the
period such Employee receives benefits for a total disability under The Hartford Income Protection Plan or any
other long-term disability plan or program maintained by the Company or its affiliates. Such an Employee who is
also a Participant shall be deemed to have filed a withdrawal form in accordance with Section 3.4(A) on the date
such Employee first begins receiving such Long-Term Disability benefits, and such deemed filing shall have the
same consequences as would the actual filing of a withdrawal form pursuant to Section 3.4(A). As of the Offering
Commencement Date following the end of the period during which such benefits are received, such Employee
shall no longer be deemed an ineligible Employee pursuant to this Section.
(iii) 5% Owners. No Option shall be granted hereunder to any Employee who, immediately after the Option is
granted, would own, within the meaning of Code Section 424(d), shares possessing 5% or more of the total
combined voting power or value of all classes of stock of The Hartford or any affiliate thereof. For purposes of
this Section, Shares that an Employee would be entitled to purchase on the Offering Termination Date applicable
to an Option that has been granted pursuant to Section 4.1 or any other qualified employee stock purchase plan
maintained by the Company or its affiliates shall be treated as owned by the Employee.
(iv) Employees with Exercise Rights In Excess of $25,000 Per Year. No Option shall be granted hereunder to
any Employee if, within the calendar year in which such Option first becomes exercisable, such Option (together
with any other options that first become exercisable in such year that have been granted to the Employee under the
Plan or any other qualified employee stock purchase plan maintained by the Company or its affiliates) would
provide the Employee with the right in such year to purchase Shares having a Fair Market Value (determined on
the Offering Commencement Date applicable to each such option) in excess of $25,000.
(v) Other Employees. The Committee may from time to time deem ineligible for participation hereunder any
class or group of Employees, so long as the exclusion of such class or group from participation does not jeopardize
the qualification of the Plan under Code Section 423 or violate other applicable law.
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Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009