Jefferson-Pilot Corporation Management Incentive Compensation Plan 1998 PURPOSE The purpose of the annual Management Incentive Compensation Plan is to improve shareholder value by relating a portion of executive compensation to the attainment of predefined performance goals. The Plan serves to focus executive attention on specific business unit and individual objectives which, when attained, will meet or exceed shareholder expectations. The Plan is also intended to assist in securing and retaining highly qualified individuals. The Plan applies for Jefferson-Pilot Corporation and all of its insurance subsidiaries. ELIGIBILITY/BONUS POTENTIAL LEVEL Individuals in the following classifications will be eligible to participate in the Plan: Executive Vice Presidents (JP Corp only) Senior Vice Presients Vice Presidents Second Vice Presidents Participation by individuals not in the above classifications requires the approval of the Chief Executive Officer of the Corporation, and of the Compensation Committee for individuals whose salaries require approval of that Committee. Bonus potential levels are as follows, expressed as fractions of annualized salary at the beginning of the bonus year: Bonus Range ----------------- Classification Level Minimum Target Superior - ----------------------- ------ ------- ------ ------ Executive Vice Presidents Group 2 .20 .35 .50 Senior Vice Presidents Group 3 .12 .24 .36 Vice Presidents Group 4 .08 .16 .24 Second Vice Presidents Group 5 .05 .10 .15 Participation at levels other than those defined above requires the approval of the Chief Executive Officer, and of the Compensation Committee for the individuals whose salaries require approval of that Committee. Participation by individuals hired or promoted after the February Compensation Committee meeting in the bonus year requires the approval of the Chief Executive Officer. PERFORMANCE CRITERIA The Chief Executive Officer shall recommend to the Compensation Committee for approval annually, performance criteria which support the Corporation's strategic goals and annual operating plans and which will be used in determining individual incentive compensation payments. The minimum criteria for any incentive consideration is the achievement of threshold earnings level regardless of sales activity. Actual performance against such criteria shall be determined as soon as practicable after year end and verified by the Internal Auditing Department. Any adjustments to exclude extraordinary, unusual or non-recurring items shall be called to the attention of the Compensation Committee prior to its approval of awards for the year. INDIVIDUAL PERFORMANCE ADJUSTMENT The basic bonus calculated above may be adjusted up or down by up to 50% by the unit head or the CEO based on an evaluation of performance or other factors. Once all bonuses have been factored in this fashion, the resulting distribution determines each participant's share of the total bonus dollars to be paid. (In effect, this process is designed not to increase or decrease the total bonuses, but to redistribute some bonus dollars from those with lower evaluations to those invidivudals with the highest evaluations). VESTING Incentive payments are not earned or vested until approved and paid, with the exception of death, disability, or retirement, in which case a prorata payment shall be earned. An eligible participant must be actively employed on the date of payment in order to receive an incentive payment, with the exceptions listed above or under special circumstances approved by the Chief Executive Office, and by the Compensation Committee for individuals whose salaries require approve of that Committee. PAYMENT At the February Compensation Committee meeting, the Chief Financial Officer will present for review and approval a list of individual recommendations for incentive payment for those officers whose salaries require the approval of the Compensation Committee, together with an estimate of the aggregate payments to others under the Plan. Payments will be disbursed as soon as practicable after that Committee meeting.