-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TeIjKTRE4cFNNEV/l3zzhdDeYzbMAQlsh3SRdBMWsojY5AET2OPh43ngxv67ROJn DDCtzCjJUi9hpXYvVwVruA== 0000944695-06-000045.txt : 20060519 0000944695-06-000045.hdr.sgml : 20060519 20060519170956 ACCESSION NUMBER: 0000944695-06-000045 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060519 ITEM INFORMATION: Entry into a Material Definitive Agreement ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060519 DATE AS OF CHANGE: 20060519 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HANOVER INSURANCE GROUP, INC. CENTRAL INDEX KEY: 0000944695 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 043263626 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13754 FILM NUMBER: 06856084 BUSINESS ADDRESS: STREET 1: 440 LINCOLN ST CITY: WORCESTER STATE: MA ZIP: 01653 BUSINESS PHONE: 5088551000 MAIL ADDRESS: STREET 1: 440 LINCOLN ST CITY: WORCESTER STATE: MA ZIP: 01653 FORMER COMPANY: FORMER CONFORMED NAME: ALLMERICA FINANCIAL CORP DATE OF NAME CHANGE: 19950501 8-K 1 form8khk_0519.txt HANOVER LONG TERM INCENTIVE PLAN UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): May 16, 2006 THE HANOVER INSURANCE GROUP, INC. --------------------------------- (Exact name of registrant as specified in its charter) Delaware 1-13754 04-3263626 ------------------------ ------------------------ -------------------- (State or other jurisdic- (Commission File Number) (I.R.S. Employer tion of incorporation) Identification No.) 440 Lincoln Street, Worcester, Massachusetts 01653 -------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (508) 855-1000 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17CFR 240.13e-4(c)) Item 1.01 Entry into a Material Definitive Agreement. 2006 Long-Term Incentive Plan On March 7, 2006, the Board of Directors of The Hanover Insurance Group, Inc. (the "Company") approved the Company's 2006 Long-Term Incentive Plan (the "2006 Plan"), subject to approval by the Company's shareholders. In accordance with the listing standards of the New York Stock Exchange, the shareholders of the Company approved the 2006 Plan on May 16, 2006, at the Company's Annual Meeting of Shareholders. A copy of the 2006 Plan was filed as Appendix I to the Company's Definitive Proxy Statement filed with the Securities and Exchange Commission on April 3, 2006 (the "2006 Proxy Statement") and is incorporated herein by reference. The following summary is qualified in its entirety by, and should be read in conjunction with, the 2006 Plan. The 2006 Plan authorizes the issuance of three million (3,000,000) new shares of the Company's Common Stock that may be used for awards under the plan. The 2006 Plan also provides that shares (i) underlying any awards granted and outstanding under the Company's Amended Long-Term Stock Incentive Plan (the "1996 Plan") that are forfeited or canceled, or expire or terminate, after May 16, 2006, or (ii) outstanding as of May 16, 2006 in the form of restricted stock awards under the 1996 Plan that are thereafter reacquired or repurchased by the Company prior to vesting, will become available for future grants under the 2006 Plan. The Company will not grant further awards under the 1996 Plan, and, with the exception of shares granted during May 2006, will not grant any further awards under its Amended and Restated Non-Employee Director Stock Ownership Plan. Subject to the limitations contained therein, the 2006 Plan provides for the grant of incentive stock options intended to qualify under Section 422 of the Internal Revenue Code ("ISOs"), non-statutory stock options, stock appreciation rights ("SARs"), restricted or unrestricted stock, stock units (including restricted stock units), performance awards or other awards that are convertible into or otherwise based on the Company's common stock. The maximum number of shares of common stock delivered in satisfaction of awards other than options cannot exceed 50% of the maximum number of shares that may be delivered in satisfaction of awards made under the 2006 Plan. The 2006 Plan is administered by the Compensation Committee of the Board (or its designee), which also has authority to interpret the terms of the 2006 Plan. Participation in the 2006 Plan is limited to those key employees and directors, as well as consultants, advisors and other persons providing services to the Company and its subsidiaries, who in the Compensation Committee's opinion are in a position to make a contribution to the success of the Company and its subsidiaries. The group of persons from which the Compensation Committee may select participants currently consists of approximately 300 individuals, although the Compensation Committee may increase that number from time to time. No award of ISOs may be made under the 2006 Plan after May 16, 2016, but awards previously granted may extend beyond that date. The Compensation Committee (or its designee) selects the recipients of awards under the 2006 Plan and determines (i) the number of shares of common stock covered by options and the dates upon which such options become exercisable, (ii) the exercise price of options (which may not be less than 100% of fair market value of our common stock on the date of grant), (iii) the duration of options (which may not exceed 10 years) and (iv) the number of shares of common stock subject to any SAR, restricted stock award, restricted stock unit award or other stock-based awards and the terms and conditions of such awards, including, if applicable, conditions for forfeiture or repurchase, the issue price, the grant or exercise price (which in the case of SARs may not be less than 100% of the fair market value of our common stock) and the repurchase price. Additional details regarding the description of the 2006 Plan are set forth in the 2006 Proxy Statement and are incorporated herein by reference. Compensation for Non-Employee Directors Upon recommendation of the Compensation Committee, the Board of Directors at a meeting held on May 16, 2006, voted to establish the compensation for non-employee directors for the 2006-2007 board year, to be effective for the period beginning immediately following the 2006 Annual Meeting of Shareholders (held on May 16, 2006) until the 2007 Annual Meeting of Shareholders. A summary of the Company's non-employee director compensation for the 2006-2007 board year is set forth on Exhibit 10.2 attached hereto and is incorporated herein by reference. Directors who are employees of the Company or its subsidiaries receive no additional compensation for their services as members of the Board. Item 9.01 Financial Statements and Exhibits. (a) Not applicable (b) Not applicable (c) Not applicable (d) Exhibits The following exhibits are filed herewith. Exhibit 10.1 The Hanover Insurance Group, Inc. 2006 Long-Term Incentive Plan originally filed as Appendix I to the Company's Definitive Proxy Statement filed with the Securities and Exchange Commission on April 3, 2006, and incorporated herein by reference Exhibit 10.2 Description of 2006-2007 Non-Employee Director Compensation 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. The Hanover Insurance Group, Inc. --------------------------------- (Registrant) Date: May 19, 2006 By: /s/ J.Kendall Huber ----------------------- J. Kendall Huber Senior Vice President, and General Counsel 3 EX-10 2 exhibit10_2.txt 2006-2007 COMP OF NON - EMPLOYEE DIRECTORS Exhibit 10.2 The Hanover Insurance Group, Inc. 2006-2007 Compensation of Non-Employee Directors - For the annual service period beginning on May 16, 2006, the date of the 2006 Annual Meeting of Shareholders- Standard Fees Description - ---------------------------------------------------------------------------------------------------------- Annual Director Retainer - Stock Component - Common Stock grant valued at $50,000 (number of shares issued based on the closing price as of date of grant) - Granted on May 16, 2006 - Cash Component - $30,000 - Payable on or after May 16, 2006 =========================================================================================================== Board Meeting Fee - $2,200 per meeting attended in person - $1,100 per meeting attended telephonically =========================================================================================================== Committee Meeting Fee - $1,500 per Committee meeting attended in person - $750 per Committee meeting attended telephonically - ----------------------------------------------------------------------------------------------------------- Committee Chairperson Annual Retainer - $7,500 for the chairperson of the Nominating and Corporate Governance Committee, payable on or after May 16, 2006 - $10,000 for the chairperson of the Compensation Committee, payable on or after May 16, 2006 - $15,000 for the chairperson of the Audit Committee, payable on or after May 16, 2006 - ----------------------------------------------------------------------------------------------------------- Chairman of the Board Retainer - $60,000 - Payable on or after May 16, 2006 Other - ----------------------------------------------------------------------------------------------------------- Deferred Compensation Plan - Directors may defer receipt of their cash and stock compensation. Deferred cash amounts are accrued in a memorandum account that is credited with interest derived from the so-called General Agreement on Tariffs and Trade (GATT)Rate (4.73% in 2006). At the election of each director, cash deferrals of meeting fees and retainers may be converted to Common Stock of the Company with such stock issued pursuant to (i) the Amended and Restated Non-Employee Director Stock Ownership Plan (for any shares issued during May 2006),and (ii) the 2006 Long-Term Incentive Plan for any shares issued thereafter. ============================================================================================================ Reimbursable Expenses - Travel and related expenses incurred in connection with service on the Board of Directors and its Committees Matching Charitable Contributions - Company will provide matching contributions to qualified charitable organizations up to $2,500 per director per year
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