Unum 2006 Annual Report Download - page 180

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UnumProvident Corporation Broad Based Stock Plan of 2002
This plan provides for the grant of stock options to employees, officers, consultants, producers (as defined in the plan),
and directors of the Company. The plan specifically prohibits the granting of any options under the plan to members of
the Company’s Board of Directors and to any “officer” of the Company as defined in Rule 16a-1(f) under the 1934 Act
or such other definition of the term “officer” as the New York Stock Exchange may subsequently adopt for purposes of
its “broad-based” requirements of Rule 312.03 of NYSE Listed Company Manual. No awards have been made under the
plan to employees above the level of Vice President. The total number of options available for grant under this plan was
2,390,000. The plan was terminated in February 2004. The stock options are non-qualified for U.S. tax purposes. The
exercise price of options awarded under this plan is the fair market value of the stock on the date of grant. The term of
any option issued under the plan cannot exceed ten years. There are provisions for early vesting and/or early termination
of the options in the event of retirement, death, disability, and termination of employment. The plan also provides for
acceleration of vesting if there is a change in control, subject to certain limitations, and in other circumstances at the
Committee’s discretion. The plan includes provisions for adjustments to the number of shares available for grants,
number of shares subject to outstanding grants, and the exercise price of outstanding grants in the event of stock splits,
stock dividends, or other recapitalization.
UnumProvident Corporation Stock Award Recognition Plan of 2002
This plan provides for the grant of stock awards to employees of the Company who are at or below the level of Vice
President and who are not officers, directors, or otherwise considered to be affiliates of the Company within the meaning
of Rule 144 of the Securities Act of 1933. The plan is administered by the Chief Executive Officer. The total number of
shares available for grant under this plan was 25,000. Stock awarded under the plan may be subject to restrictions.
There are provisions for early vesting and/or early termination of restrictions in the event of retirement, death, disability,
and termination of employment. The plan also provides for restrictions on awards to lapse if there is a change in control,
subject to certain limitations, and in other circumstances at the CEO’s discretion. The plan includes provisions for
adjustments to the number of shares available for grants and the number of shares subject to outstanding grants in the
event of stock splits, stock dividends, or other recapitalization.
Unum Limited Savings-Related Share Option Plan 2000
This plan of the Company’s subsidiary, Unum Limited, in the United Kingdom allows employees of Unum Limited to
acquire options for shares of the Company’s common stock by making an election to purchase stock at a price of at least
80% of the market value of the stock on the date prior to the date the invitation to apply for the option is made or, if
greater, the nominal value of a share (the Acquisition Price). The total number of options available for grant under this
plan was 200,000. The maximum contribution per month per employee is £150. Contributions are made for a three year
period at the end of which the employee can elect to receive cash plus interest or purchase shares at the Acquisition
Price. The directors of Unum Limited are the administrators of the plan. There are provisions for early expiration of
options in the event of termination of employment and acceleration of vesting and expiration due to death, disability, or
retirement. The plan also provides for acceleration of vesting upon a change of control, reconstruction, or voluntary
winding up of the Company. The plan includes provisions for adjustments to the number of shares available for grants,
and the number of shares subject to outstanding grants in the event of capitalization, consolidation sub-division or
reduction, or other variation of the share capital of the Company.
UNUM Corporation 1998 Goals Stock Option Plan
This plan which was assumed by the Company pursuant to the merger, provided for the grant in 1995 of three hundred
options to employees below the level of Vice President. Employees who were hired in 1996 and 1997 automatically
received two hundred and one hundred options respectively. The vesting of the options was contingent on meeting
specified “1998 Goals,” long-term goals established at the time the plan was adopted. The Chief Executive Officer was
the administrator of the plan. The total number of options available for grant under this plan was 3,000,000. No new
grants could be made under the plan after 1997. The exercise price of options awarded under this plan was the fair
market value of the stock on the date of grant. There are provisions for early vesting and/or early termination of the
options in the event of retirement, death, disability, and termination of employment. The plan also provides for
acceleration of vesting if there is a change in control. The plan includes provisions for adjustments to the number of
shares available for grants, number of shares subject to outstanding grants, and the exercise price of outstanding grants in
the event of stock splits, stock dividends, or other recapitalization.