Document:

Exhibit
10.1

The
Allstate Corporation

Director Compensation

 

Allstate
Proposed Compensation Package

(effective June
1, 2007)

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Annual

  	
   

  
	
   

  	
   

  	
  Current (3)

  	
   

  	
  Proposed (3)

  	
   

  	
  Payment Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Board Retainer: (1)

  	
   

  	
  $

  	
  40,000

  	
   

  	
  $

  	
  40,000

  	
   

  	
  June 1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Committee Chair
  Retainer: (1)

  	
   

  	
  $

  	
  10,000

  	
   

  	
  $

  	
  15,000

  	
   

  	
  June 1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Annual Restricted Stock
  Unit Grant: (2)

  	
   

  	
  2,000 units

  	
   

  	
  2,000 units

  	
   

  	
  December 1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stock Option Grant:

  	
   

  	
  4,000 shares

  	
   

  	
  4,000 shares

  	
   

  	
  June 1

  	
   

  

(1)      Option
to elect cash or stock; cash can be deferred.

(2)      RSUs are
settled in stock one year after termination of Board service or upon death or
disability, if earlier.

(3)      Pro rata
adjustments for interim elections.Exhibit 10.2

THE
ALLSTATE CORPORATION

AMENDED AND RESTATED 2001 EQUITY INCENTIVE PLAN

Article
1.               Establishment, Purpose
and Duration

1.1           Establishment of the Plan.   The
Allstate Corporation, a Delaware corporation (hereinafter referred to as the “Company”),
hereby establishes an incentive compensation plan for key employees, to be
known as “The Allstate Corporation 2001 Equity Incentive Plan” (hereinafter
referred to as the “Plan”), as set forth in this document.  The Plan permits the grant of nonqualified stock
options (NQSOs), incentive stock options (ISOs), stock appreciation rights
(SARs), unrestricted stock, restricted stock, restricted stock units,
performance units, performance stock and other awards.

The
Plan was approved by the Board of Directors on March 13, 2001 and became
effective when approved by the Company’s stockholders on May 15, 2001 (the “Effective
Date”).  The Plan was amended by the
Board of Directors on March 9, 2004.  On
March 14, 2006 the Plan was amended and restated effective upon approval by
stockholders at the 2006 Annual Meeting of Stockholders on May 16, 2006.  The Plan was further amended and restated by
the Board at a meeting held on September 10, 2006 and shall thereafter remain
in effect as provided in Section 1.3 herein.

1.2           Purpose of the Plan.   The
primary purpose of the Plan is to provide a means by which key employees of the
Company and its Subsidiaries can acquire and maintain stock ownership, thereby
strengthening their commitment to the success of the Company and its Subsidiaries
and their desire to remain employed by the Company and its Subsidiaries.  The Plan also is intended to attract and
retain key employees and to provide such employees with additional incentive
and reward opportunities designed to encourage them to enhance the profitable
growth of the Company and its Subsidiaries.

1.3           Duration of the Plan.   The
Plan shall commence on the Effective Date, as described in Section 1.1 herein,
and shall remain in effect subject to the right of the Board of Directors to
terminate the Plan at any time pursuant to Article 15 herein, until all Stock
subject to it shall have been purchased or acquired according to the Plan’s
provisions.

Article 2.               Definitions

Whenever used in the
Plan, the following terms shall have the meanings set forth below and, when
such meaning is intended, the initial letter of the word is capitalized:

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2.1           Award  means, individually or collectively, a grant
under the Plan of NQSOs, ISOs, SARs, Unrestricted Stock, Restricted Stock,
Restricted Stock Units, Performance Units, Performance Stock or any other type
of award permitted under Article 10 of the Plan.

2.2           Award Agreement
means an agreement setting forth the terms and provisions applicable to an
Award granted to a Participant under the Plan.

2.3           Base Value of
an SAR means the Fair Market Value of a share of Stock on the date the SAR is
granted.

2.4           Beneficial Owner
means such term as defined in Rule 13d-3 under the Exchange Act.

2.5           Board or Board of Directors means the Board of Directors of the
Company.

2.6           Code means the
Internal Revenue Code of 1986, as amended from time to time.

2.7           Committee means
the committee, as specified in Article 3, appointed by the Board to administer
the Plan.

2.8           Company means
The Allstate Corporation, a Delaware corporation, or any successor thereto as
provided in Article 18 herein.

2.9           Covered Employee
means any Participant who would be considered a “covered employee” for purposes
of Section 162(m) of the Code.

2.10
        Disability
means a medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period
of not less than 12 months which, in the opinion of the Committee, renders a
Participant unable to engage in any substantial gainful activity.

2.11         Dividend Equivalent
means, with respect to Stock subject to an Award, a right to be paid an amount
equal to dividends declared on an equal number of outstanding shares of Stock.

2.12         Eligible Person
means a Person who is eligible to participate in the Plan, as set forth in
Section 5.1 herein.

2.13         Employee means
an individual who is paid on the payroll of the Company or of one of the
Company’s Subsidiaries, who is not covered by any collective bargaining
agreement to which the Company or any of its Subsidiaries is a party, and is
classified on the employer’s human resource payroll system as a regular
full-time or regular part-time employee.

2.14         Exchange Act
means the Securities Exchange Act of 1934, as amended from time to time, or any
successor act thereto.

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2.15         Exercise Period
means the period during which an SAR or Option is exercisable, as set forth in
the related Award Agreement.

2.16         Fair Market Value means,
as of any applicable date, the average of the high and low sale prices of the
Stock as reported in the consolidated transaction reporting system, or if there
was no such sale on the relevant date, then on the last previous day on which a
sale was reported.

2.17         Family Member means any child, stepchild, grandchild,
parent, stepparent, grandparent, spouse, or sibling, including adoptive
relationships, a trust in which these persons have more than fifty (50) percent
of the beneficial interest, a foundation in which these persons (or the
Employee) control the management of assets, and any other entity in which these
persons (or the Employee) own more than fifty (50) percent of the voting interests.

2.18         Freestanding SAR
means an SAR that is not a Tandem SAR.

2.19         Incentive Stock Option
or ISO means an option to purchase Stock,
granted under Article 6 herein, which is designated as an Incentive Stock
Option and satisfies the requirements of Section 422 of the Code.

2.20         Minimum Consideration
means the $.01 par value per share or such larger amount determined pursuant to
resolution of the Board to be capital within the meaning of Section 154 of the
Delaware General Corporation Law.

2.21         Nonqualified Stock Option
or NQSO means an option to purchase Stock,
granted under Article 6 herein, which is not intended to be an Incentive Stock
Option under Section 422 of the Code.

2.22         Option means an Incentive Stock Option or a Nonqualified Stock
Option.

2.23         Option Exercise Price
means the price at which a share of Stock may be purchased by a Participant
pursuant to an Option, as determined by the Committee and set forth in the
Option Award Agreement.

2.24         Participant
means an Eligible Person who has outstanding an Award granted under the Plan.

2.25         Performance Goals means the performance goals established by
the Committee, which shall be based on one or more of the following
measures:  sales or revenues, earnings
per share, stockholder return and/or value, funds from operations, operating
income, gross income, net income, combined ratio, underwriting income, cash
flow, return on equity, return on capital, return on assets, net earnings,
earnings before interest, operating ratios, stock price, customer satisfaction,
customer retention, accomplishment of mergers, acquisitions, dispositions or
similar extraordinary 

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business transactions, profit returns and margins,
financial return ratios and/or market performance.  Performance goals may be measured solely on a
corporate, subsidiary or business unit basis, or a combination thereof.  Performance goals may reflect absolute entity
performance or a relative comparison of entity performance to the performance
of a peer group of entities or other external measure.

2.26         Performance Period means the time period during
which Performance Unit/Performance Stock Performance Goals must be met.

2.27         Performance Stock means an Award described in Article 9
herein.

2.28         Performance Unit
means an Award described in Article 9 herein.

2.29         Period of Restriction
means the period during which the transfer of Restricted Stock or Restricted
Stock Units is limited in some way, as provided in Article 8 herein.

2.30         Person means
any individual, sole proprietorship, partnership, joint venture, limited
liability company, trust, unincorporated organization, association,
corporation, institution, public benefit corporation, entity or government
instrumentality, division, agency, body or department.

2.31          Plan means The Allstate Corporation Amended and Restated
2001 Equity Incentive Plan.

2.32         Qualified Restricted Stock
means an Award of Restricted Stock designated as Qualified
Restricted Stock by the Committee at the time of grant and intended to qualify
for the exemption from the limitation on deductibility imposed by Section 162(m)
of the Code that is set forth in Section 162(m)(4)(C).

2.33         Qualified Restricted Stock
Unit means an Award of Restricted Stock Units designated as
Qualified Restricted Stock Units by the Committee at the time of grant and
intended to qualify for the exemption from the limitation on deductibility
imposed by Section 162(m) of the Code that is set forth in Section
162(m)(4)(C).

2.34         Reload Option
means an additional Option related to Options awarded prior to 2004 as described
in Article 6 herein.

2.35                           Restricted Stock means an Award described in Article 8
herein.

2.36         Restricted Stock Unit
means an Award described in Article 8 herein.

2.37         Retirement
means a Participant’s termination from employment with the Company or a
Subsidiary at the Participant’s Early, Normal or Health Retirement Date, as
applicable.

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(a)                                  Early Retirement Date — shall mean the date prior to the
Participant’s Normal Retirement Date on which a Participant terminates
employment, if such termination date occurs on or after the Participant attains
age fifty-five (55) with twenty (20) years of service and such retirement is in
accordance with the voluntary early retirement policy of the Company or the
Subsidiary with which the Participant is employed on the date of termination of
employment.

(b)                                 Normal Retirement Date — shall have the meaning given to it
by the Company or the Subsidiary with which the Participant is employed on the
date of termination of employment, provided that such termination is voluntary
and occurs on or after the Participant attains age sixty (60) with at least one
(1) year of service at termination of employment.

(c)                                  Health Retirement Date — shall mean the date on which the
Participant terminates employment for health reasons (as determined under the
human resource policy of the Company or the Subsidiary with which the
Participant is employed on the date of termination of employment), provided
that such termination date occurs on or after the Participant attains age fifty
(50) but before the Participant attains age sixty (60), with at least ten (10)
years of continuous service at termination of employment.

2.38         Section 409A shall
have the meaning set forth in Section 19.5 herein.

2.39         Securities Act
means the Securities Act of 1933, as amended.

2.40         Stock means the
common stock, $.01 par value, of the Company.

2.41         Stock Appreciation Right
or SAR means a right, granted alone or in connection with a related Option,
designated as an SAR, to receive a payment on the day the right is exercised,
pursuant to the terms of Article 7 herein. Each SAR shall be denominated in
terms of one share of Stock.

2.42         Subsidiary
means any corporation (other than the Company) or limited liability company
in an unbroken chain of such entities beginning with the Company if each of the
entities other than the last entity in the unbroken chain owns, directly or
indirectly, stock possessing 50 percent or more of the total combined Voting
Power of all classes of stock or ownership interests in one of the other entities
in such chain.

2.43         Tandem SAR
means an SAR that is granted in connection with a related Option, the exercise
of which shall require forfeiture of the right to purchase Stock under the
related Option (and when Stock is purchased under the Option, the Tandem SAR
shall be similarly canceled).

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2.44         Termination of Employment
occurs the first day on which an individual is for any reason no longer
employed by the Company or any of its Subsidiaries, or with respect to an
individual who is an Employee of a Subsidiary, the first day on which the
Company no longer owns, directly or indirectly, Voting Securities possessing at
least 50% of the Voting Power of such Subsidiary.  For purposes of the Plan, transfer of
employment of a Participant between the Company and any one of its Subsidiaries
(or between Subsidiaries) shall not be deemed a termination of employment.

2.45         Unrestricted Stock
means an Award of Stock not subject to restrictions described in Article 8
herein.

2.46         Voting Power
means the combined voting power of the then-outstanding Voting Securities
entitled to vote generally in the election of directors.

2.47         Voting Securities
of a corporation means securities of such corporation that are entitled to vote
generally in the election of directors of such corporation and with respect to
a limited liability company means ownership or membership interests with
equivalent rights.

Article 3.               Administration

3.1           The Committee.   The
Plan shall be administered by the Compensation and Succession Committee or such
other committee (the “Committee”) as the Board of Directors shall select,
consisting solely of two or more nonemployee members of the Board.  The members of the Committee shall be
appointed from time to time by, and shall serve at the discretion of, the Board
of Directors.

3.2           Authority of the Committee.   The
Committee shall have full power except as limited by law, the Articles of
Incorporation or the Bylaws of the Company, subject to such other restricting
limitations or directions as may be imposed by the Board and subject to the
provisions herein, to determine the Eligible Persons to receive Awards; to
determine when Awards may be granted and to grant Awards under the Plan (which
may include substituted Awards as described in Article 17 herein); to determine
the size and types of Awards; to determine the terms and conditions of such
Awards; to determine whether Performance Goals have been met; to construe and
interpret the Plan and any agreement or instrument entered into under the Plan;
to establish, amend or waive rules and regulations for the Plan’s administration;
to amend the terms and conditions of any outstanding Award, including but not
limited to amendments with respect to exercisability and non-forfeitability of
Awards upon a Termination of Employment; to make such adjustments or
modifications to Awards to Participants working outside the United States as
are necessary or advisable to fulfill the purposes of the Plan; to accelerate
the exercisability of, and to accelerate or waive any or all of the
restrictions and conditions applicable to, any Award; and to authorize any
action of or make any determination by the Company as the Committee shall deem
necessary or advisable for carrying out the purposes of the Plan; provided,
however, that the Committee may not amend the terms and conditions of
any outstanding Award so as to adversely affect in any material way such Award 

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without the written consent of the Participant holding
such Award (or if the Participant is not then living, the Participant’s
personal representative or estate), unless such amendment is required by
applicable law; and provided, further, that any discretion exercised by
the Committee pursuant to section 4.2 and the following paragraph of this
section 3.2 shall not be deemed to adversely affect in any material way an
Award.  The Committee may designate which
Subsidiaries participate in the Plan and may authorize foreign Subsidiaries to
adopt plans as provided in Article 14. 
Further, the Committee shall interpret and make all other determinations
which may be necessary or advisable for the administration of the Plan.  As permitted by law, the Committee may
delegate its authorities as identified hereunder.

The
Committee may, in its discretion, elect at any time, should it determine it is
in the best interest of the Company’s stockholders to cancel any Awards granted
hereunder, to cancel all or any of the Awards granted hereunder and pay the
holders of any such Awards an amount (payable in such proportion as the
Committee may determine in cash or in Stock (valued at the Fair Market Value of
a share of Stock on the date of cancellation of such Award)) equal to (i) for
Options, the number of shares of Stock subject to such cancelled Option,
multiplied by the amount (if any) by which the Fair Market Value of Stock on
the date of cancellation of the Option exceeds the Option Exercise Price; (ii)
for Restricted Stock or Performance Stock, the number of shares of Restricted
Stock or Performance Stock multiplied by the Fair Market Value of Stock on the
date of cancellation of the Award; and (iii) for Restricted Stock Units or
Performance Units, the number of units multiplied by an amount not less than
the initial value thereof.  Amounts
payable may be prorated based upon the number of months elapsed in any related
vesting period or Performance Period, in the sole discretion of the
Committee.  In no event shall the
Committee have the right to amend an outstanding Option Award for the sole
purpose of reducing the exercise price thereof.

3.3           Delivery of Stock by
Company; Restrictions on Stock.   Notwithstanding any other
provision of the Plan, the Company shall have no liability to deliver any Stock
or benefits under the Plan unless such delivery would comply with all
applicable laws (including, without limitation, the Securities Act) and applicable
requirements of any securities exchange or similar entity and unless the
Participant’s tax obligations have been satisfied as set forth in Article 16.

The
Committee may impose such restrictions on any Stock acquired pursuant to Awards
under the Plan as it may deem advisable, including, without limitation,
restrictions to comply with applicable Federal securities laws, with the
requirements of any stock exchange or market upon which such Stock is then
listed and/or traded and with any blue sky or state securities laws applicable
to such Stock.

3.4           Decisions Binding.  All determinations and decisions made by the
Committee pursuant to the provisions of the Plan and all related orders or
resolutions of the Board shall be final, conclusive and binding on all persons,
including the Company, its stockholders, Eligible Persons, Employees,
Participants and their estates.  No
member of the Committee shall be liable for any action or determination made in
good faith with respect to the Plan or any Award.

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3.5           Costs. The
Company shall pay all costs of administration of the Plan.

Article
4.               Stock Subject to the Plan

4.1           Number of Shares.   Subject
to Section 4.2 herein, the maximum number of shares of Stock available for
grant under the Plan shall be 49,000,000 plus any shares of Stock remaining
available for awards pursuant to the terms of The Allstate Corporation Equity
Incentive Plan.  Shares of Stock
underlying lapsed or forfeited Awards of Restricted Stock shall not be treated
as having been issued pursuant to an Award under the Plan.  Shares of Stock that are potentially
deliverable under an Award that expires or is cancelled, forfeited, settled in
cash or otherwise settled without delivery of shares of Stock shall not be treated
as having been issued under the Plan. 
With respect to an SAR that is settled in Stock, the full number of
shares underlying the exercised portion of the SAR shall be treated as having
been issued under the Plan, regardless of the number of shares used to settle
the SAR upon exercise.  Shares of Stock
that are tendered or withheld to satisfy tax withholding obligations related to
an Award or to satisfy the Option Exercise Price related to an Option or other
Award shall be deemed to be shares of Stock issued under the Plan.  If, before June 30, 2003, the Option Exercise
Price is satisfied by tendering Stock, only the number of shares issued net of
the shares tendered shall be deemed issued under the Plan.  Stock granted pursuant to the Plan may be (i) authorized
but unissued shares of common stock or (ii) treasury stock.

4.2           Adjustments in Authorized
Stock and Awards.   In the event of any equity restructuring
(within the meaning of Financial Accounting Standards No. 123 (revised 2004))
that causes the per share value of shares of Stock to change, such as a stock
dividend, stock split, spin off, rights offering, or recapitalization through a
large, nonrecurring cash dividend, the Committee shall cause there to be made
an equitable adjustment to (i) the number and kind of shares available for
grant under the Plan, (ii) the number of shares or Awards that may be granted to
any individual under the Plan or that may be granted pursuant to any Articles
or types of Awards and (iii) the number and kind of shares or units subject to
and the Option Exercise Price or Base Value (if applicable) of any then
outstanding Awards of or related to shares of Stock.  In the event of any other change in corporate
capitalization, such as a merger, consolidation, any reorganization (whether or
not such reorganization comes within the definition of such term in Section 368
of the Code) or any partial or complete liquidation of the Company, such
equitable adjustments described in the foregoing sentence shall be made as may
be determined to be appropriate and equitable by the Committee, in its sole
discretion, to prevent dilution or enlargement of rights.  In either case, any such adjustment shall be
conclusive and binding for all purposes of the Plan.  Notwithstanding the foregoing, (i) each
such adjustment with respect to an Incentive Stock Option shall comply with the
rules of Section 424(a) of the Code and (ii) in no event shall any
adjustment be made which would render any Incentive Stock Option granted
hereunder to be other than an incentive stock option for purposes of Section
422 of the Code.

4.3           Award Limitations.   Subject
to Section 4.2 above, (i) the total number of shares of Stock with respect to
which Options or SARs may be granted in any calendar year to any Participant 

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shall not exceed 1,200,000 shares; (ii) the total
number of shares of Qualified Restricted Stock or Qualified Restricted Stock
Units that may be granted in any calendar year to any Participant shall not
exceed 1,200,000 shares or Units, as the case may be; (iii) the total number of
shares of Performance Stock or Performance Units that may be granted in any
calendar year to any Participant shall not exceed 1,200,000 shares or Units, as
the case may be; (iv) the total number of shares of Stock that are intended to
qualify for deduction under Section 162(m) of the Code granted pursuant to
Article 10 herein in any calendar year to any Participant shall not exceed
1,200,000 shares; (v) the total cash Award that is intended to qualify for
deduction under Section 162(m) of the Code that may be paid pursuant to Article
10 herein in any calendar year to any Participant shall not exceed $1,200,000;
and (vi) the aggregate number of Dividend Equivalents that are intended to
qualify for deduction under Section 162(m) of the Code that a Participant may
receive in any calendar year shall not exceed 4,800,000.

No
more than an aggregate of 9,000,000 shares of Stock may be granted under
Article 8 and Article 10.  The maximum
number of shares of Stock that may be granted subject to Incentive Stock
Options shall be 9,000,000 shares.  The
maximum number of shares of Stock that may be granted under Article 9 shall be
5,000,000 shares.

Article
5.               Eligibility and
Participation

5.1           Eligibility.   Persons
eligible to participate in the Plan (“Eligible Persons”) include all key
Employees of the Company and its Subsidiaries, as determined by the Committee.

5.2           Actual Participation.   Subject
to the provisions of the Plan, the Committee may, from time to time, select
from all Eligible Persons those to whom Awards shall be granted.

Article 6.               Stock Options

6.1           Grant of Options.   Subject
to the terms and conditions of the Plan, Options may be granted to an Eligible
Person at any time and from time to time, as shall be determined by the
Committee.

The
Committee shall have complete discretion in determining the number of shares of
Stock subject to Options granted to each Eligible Person (subject to Article 4
herein) and, consistent with the provisions of the Plan, in determining the
terms and conditions pertaining to such Options.  The Committee may grant ISOs, NQSOs or a
combination thereof.

6.2           Option Award Agreement.   Each
Option grant shall be evidenced by an Option Award Agreement that shall specify
the Option Exercise Price, the term of the Option (which shall not be greater
than ten (10) years), the number of shares of Stock to which the Option
pertains, the Exercise Period and such other provisions as the Committee shall
determine, including but not limited to special provisions relating to a change
of control.  The Option Award Agreement
shall also specify 

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whether the Option is intended to be an ISO or
NQSO.  The Option Exercise Price shall
not be less than 100% of the Fair Market Value of the Stock on the date of
grant.

6.3           Exercise of and Payment
for Options.   Options granted under the Plan shall be
exercisable at such times and shall be subject to such restrictions and
conditions as the Committee shall in each instance approve.

A
Participant may exercise an Option at any time during the Exercise Period.
Options shall be exercised by the delivery of a written notice of exercise to
the Company, setting forth the number of shares of Stock with respect to which
the Option is to be exercised, accompanied by provision for full payment of the
Stock.

The
Option Exercise Price shall be payable:   (i) in cash or its
equivalent, (ii) by tendering (by actual delivery of shares or by
attestation) previously acquired Stock (owned for at least six months) having
an aggregate Fair Market Value at the time of exercise equal to the total
Option Exercise Price, (iii) by broker-assisted cashless exercise,
(iv) with respect to Options granted on and after May 16, 2006, by share
withholding or (v) by a combination of (i), (ii), (iii) and/or (iv).

Options
may not be exercised for less than 25 shares of Stock unless the exercise
represents the entire remaining balance of the Award.

Stock
received upon exercise of an Option may be granted subject to any restrictions
deemed appropriate by the Committee.

6.4           Reload Options Related to
Options Granted Prior to 2004.   The Committee may provide in an
Award Agreement with respect to an Option granted prior to 2004 that a
Participant who exercises all or any portion of an Option with Stock which has
a Fair Market Value equal to not less than 100% of the Option Exercise Price
for such Option shall be granted, subject to Article 4, an additional option (“Reload
Option”) for a number of shares of Stock equal to the sum (“Reload Number”) of
the number of shares of Stock tendered in payment of the Option Exercise Price
for the Options plus, if so provided by the Committee, the number of shares of
Stock, if any, retained by the Company in connection with the exercise of the
Options to satisfy any federal, state or local tax withholding requirements.  Reload Options may not be included in any
Option Awards granted in 2004 or later.

To
the extent that a Reload Option is granted upon exercise of Options granted
prior to 2004, the Reload Options shall be subject to the following terms and
conditions:

(i)            the
grant date for each Reload Option shall be the date of exercise of the Option
to which it relates;

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(ii)           subject
to (iii) below, the Reload Option, upon vesting, may be exercised at any time
during the unexpired term of the Option to which it relates (subject to earlier
termination thereof as provided in the Plan and in the applicable Award
Agreement); and

(iii)          the
terms of the Reload Option shall be the same as the terms of the Option to
which it relates, except that (A) the Option Exercise Price shall be the Fair
Market Value of the Stock on the grant date of the Reload Option and (B) the
Reload Option shall be subject to new vesting provisions, commencing one (1)
year after the grant date of the Reload Option and vesting upon the same
schedule as the Option to which it relates.

Reload
Options may not be granted to Participants who exercise Options after a
Termination of Employment.

Stock
subject to this Plan may be used for Reload Options granted under The Allstate
Corporation Equity Incentive Plan.

6.5           Termination.   Each
Option Award Agreement shall set forth the extent to which the Participant
shall have the right to exercise the Option following termination of the
Participant’s employment with the Company and its Subsidiaries.  Such provisions shall be determined in the
sole discretion of the Committee (subject to applicable law), shall be included
in the Option Award Agreement entered into with Participants, need not be
uniform among all Options granted pursuant to the Plan or among Participants
and may reflect distinctions based on the reasons for termination.

To
the extent the Option Award Agreement does not set forth termination
provisions, the provisions of Article 13 shall control.

6.6           Transferability of Options.   Except
as otherwise determined by the Committee, all Options granted to a Participant
under the Plan shall be exercisable during his or her lifetime only by such
Participant, and no Option granted under the Plan may be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated, other than by will or
by the laws of descent and distribution. 
ISOs are not transferable other than by will or by the laws of descent
and distribution. The Committee shall have the authority, in its discretion, to
grant (or to sanction by way of amendment to an existing Award) Nonqualified
Stock Options, the vested portions of which may be transferred by the
Participant during his lifetime to any Family Member.  A transfer of an Option pursuant hereto may
only be effected by the Company at the written request of a Participant and
shall become effective only when recorded in the Company’s record of
outstanding Options.  In the event an
Option is transferred as contemplated herein, any Reload Options associated
with such transferred Option shall terminate, and such transferred Option may
not be subsequently transferred by the transferee except by will or the laws of
descent and distribution.  Otherwise, a
transferred Option shall continue to be governed by and subject to the terms
and limitations of the Plan and the relevant Award Agreement, and the
transferee shall be entitled to the same rights as the Participant, as if no
transfer had taken place.  In no event
shall an Option be transferred for consideration.

 

 11

 

 

Article 7.               Stock Appreciation Rights

7.1           Grant of SARs.   Subject
to the terms and conditions of the Plan, an SAR may be granted to an Eligible
Person at any time and from time to time as shall be determined by the
Committee.  The Committee may grant
Freestanding SARs, Tandem SARs or any combination of these forms of SARs.

The
Committee shall have complete discretion in determining the number of SARs
granted to each Eligible Person (subject to Article 4 herein) and, consistent
with the provisions of the Plan, in determining the terms and conditions
pertaining to such SARs.

7.2           SAR Award Agreement.   Each
SAR grant shall be evidenced by an SAR Award Agreement that shall specify the
number of SARs granted, the Base Value, the term of the SAR (which shall not be
greater than ten (10) years), the Exercise Period and such other provisions as
the Committee shall determine, including but not limited to special provisions
relating to a change of control.

7.3           Exercise and Payment of
SARs.   Tandem SARs may be exercised for all or part of the
Stock subject to the related Option upon the surrender of the right to exercise
the equivalent portion of the related Option. 
A Tandem SAR may be exercised only with respect to the shares of Stock
for which its related Option is then exercisable.

Notwithstanding
any other provision of the Plan to the contrary, with respect to a Tandem SAR
granted in connection with an ISO: 
(i) the Tandem SAR will expire no later than the expiration of the
underlying ISO; (ii) the value of the payout with respect to the Tandem
SAR may be for no more than one hundred percent (100%) of the difference
between the Option Exercise Price of the underlying ISO and the Fair Market
Value of the shares of Stock subject to the underlying ISO at the time the
Tandem SAR is exercised; (iii) the Tandem SAR may be exercised only when
the Fair Market Value of the shares of Stock subject to the ISO exceeds the
Option Exercise Price of the ISO; and (iv) the Tandem SAR may be transferred
only when the underlying ISO is transferable, and under the same conditions.

Freestanding
SARs may be exercised upon whatever terms and conditions the Committee, in its
sole discretion, imposes upon them.

A
Participant may exercise an SAR at any time during the Exercise Period.  SARs shall be exercised by the delivery of a
written notice of exercise to the Company, setting forth the number of SARs
being exercised.  Upon exercise of an
SAR, a Participant shall be entitled to receive payment from the Company in an
amount equal to the product of:

(a)                                  the
excess of (i) the Fair Market Value of a share of Stock on the date of exercise
over (ii) the Base Value multiplied by

 12
 

 

 

(b)                                 the
number of shares of Stock with respect to which the SAR is exercised.

At
the sole discretion of the Committee, the payment to the Participant upon SAR
exercise may be in cash, in shares of Stock of equivalent value or in some
combination thereof.

7.4           Termination.   Each
SAR Award Agreement shall set forth the extent to which the Participant shall
have the right to exercise the SAR following termination of the Participant’s
employment with the Company and its Subsidiaries.  Such provisions shall be determined in the sole
discretion of the Committee, shall be included in the SAR Award Agreement
entered into with Participants, need not be uniform among all SARs granted
pursuant to the Plan or among Participants and may reflect distinctions based
on the reasons for termination.

To
the extent the SAR Award Agreement does not set forth termination provisions,
the provisions of Article 13 shall control.

7.5           Transferability of SARs.   Except
as otherwise determined by the Committee, all SARs granted to a Participant
under the Plan shall be exercisable during his or her lifetime only by such
Participant or his or her legal representative, and no SAR granted under the
Plan may be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will or by the laws of descent and
distribution.  To the extent the
Committee permits the transfer of an SAR, in no event shall an SAR be
transferred for consideration.

Article 8.               Unrestricted Stock, Restricted Stock
and Restricted Stock Units

8.1           Grant of Unrestricted
Stock, Restricted Stock and Restricted Stock Units.   Subject to
the terms and conditions of the Plan, Unrestricted Stock, Restricted Stock
and/or Restricted Stock Units may be granted to an Eligible Person at any time
and from time to time, as shall be determined by the Committee.

The
Committee shall have complete discretion in determining the number of shares of
Unrestricted Stock, Restricted Stock and/or Restricted Stock Units granted to
each Eligible Person (subject to Article 4 herein) and, consistent with the
provisions of the Plan, in determining the terms and conditions pertaining to
such Awards.

In
addition, the Committee may, prior to or at the time of grant, designate an
Award of Restricted Stock or Restricted Stock Units as Qualified Restricted
Stock or Qualified Restricted Stock Units, as the case may be, in which event
it will condition the grant or vesting, as applicable, of such Qualified
Restricted Stock or Qualified Restricted Stock Units, as the case may be, upon
the attainment of the Performance Goals selected by the Committee.

8.2           Unrestricted Stock,
Restricted Stock/Restricted Stock Unit Award Agreement.   Each
grant of Unrestricted Stock, Restricted Stock and/or Restricted Stock Units
shall be evidenced by an Award Agreement that shall specify the number of
shares of Unrestricted Stock, Restricted Stock 

 13
 

 

 

and/or Restricted Stock Units granted, the initial
value (if applicable), the Period or Periods of Restriction (if applicable),
and such other provisions as the Committee shall determine, including but not
limited to special provisions relating to a change of control.

8.3           Transferability.   Restricted
Stock and Restricted Stock Units granted hereunder may not be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated until
the end of the applicable Period of Restriction established by the Committee
and specified in the Award Agreement.  During
the applicable Period of Restriction, all rights with respect to the Restricted
Stock and Restricted Stock Units granted to a Participant under the Plan shall
be available during his or her lifetime only to such Participant or his or her
legal representative.

8.4           Certificates.   No
certificates representing Stock shall be delivered to a Participant until such
time as all restrictions applicable to such shares have been satisfied.

8.5           Removal of Restrictions.   Restricted
Stock shall become freely transferable by the Participant after the last day of
the Period of Restriction applicable thereto. 
Once Restricted Stock is released from the restrictions, the Participant
shall be entitled to receive a certificate.

Payment
of Restricted Stock Units shall be made after the last day of the Period of
Restriction applicable thereto.  The
Committee, in its sole discretion, may pay Restricted Stock Units in cash or in
shares of Stock of equivalent value (or in some combination thereof).

8.6           Voting Rights.  During the Period of Restriction,
Participants may exercise full voting rights with respect to the Restricted
Stock.

8.7           Dividends and Other
Distributions.   Subject to the Committee’s right to determine
otherwise at the time of grant, during the Period of Restriction, Participants
shall receive all regular cash dividends paid with respect to the Restricted
Stock while they are so held.  All other
distributions paid with respect to such Restricted Stock shall be credited to
Participants subject to the same restrictions on transferability and
forfeitability as the Restricted Stock with respect to which they were paid and
shall be paid to the Participant promptly after the full vesting of the
Restricted Stock with respect to which such distributions were made.

Rights,
if any, to Dividend Equivalents on Restricted Stock Units shall be established
by the Committee at the time of grant and set forth in the Award Agreement.

8.8           Termination.   Each
Restricted Stock/Restricted Stock Unit Award Agreement shall set forth the
extent to which the Participant shall have the right to receive Restricted
Stock and/or a Restricted Stock Unit payment following termination of the
Participant’s employment with the Company and its Subsidiaries.  Such provisions shall be determined in the
sole discretion of the Committee, shall be included in the Award Agreement
entered into with Participants, need not be uniform among all grants of
Restricted Stock/Restricted Stock Units or among Participants and may reflect
distinctions based on the reasons for termination.

 14
 

 

 

To
the extent the Restricted Stock/Restricted Stock Unit Award Agreement does not
set forth termination provisions, the provisions of Article 13 shall control.

Article 9.               Performance Units and Performance Stock

9.1           Grant of Performance Units
and Performance Stock.   Subject to the terms and conditions of
the Plan, Performance Units and/or Performance Stock may be granted to an
Eligible Person at any time and from time to time, as shall be determined by
the Committee.

The
Committee shall have complete discretion in determining the number of
Performance Units and/or shares of Performance Stock granted to each Eligible
Person (subject to Article 4 herein) and, consistent with the provisions of the
Plan, in determining the terms and conditions pertaining to such Awards.

9.2           Performance
Unit/Performance Stock Award Agreement.   Each grant of
Performance Units and/or shares of Performance Stock shall be evidenced by a
Performance Unit and/or Performance Stock Award Agreement that shall specify
the number of Performance Units and/or shares of Performance Stock granted, the
initial value (if applicable), the Performance Period, the Performance Goals
and such other provisions as the Committee shall determine, including but not
limited to special provisions relating to a change of control and any rights to
Dividend Equivalents.

9.3           Value of Performance
Units/Performance Stock.   Each Performance Unit shall have an
initial value that is established by the Committee at the time of grant.  The value of a share of Performance Stock
shall be equal to the Fair Market Value of the Stock.  The Committee shall set Performance Goals in
its discretion which, depending on the extent to which they are met, will
determine the number and/or value of Performance Units/Performance Stock that
will be paid out to the Participants.

9.4           Earning of Performance
Units/Performance Stock.   After the applicable Performance
Period has ended, the Participant shall be entitled to receive a payout with
respect to the Performance Units/Performance Stock earned by the Participant
over the Performance Period, to be determined as a function of the extent to
which the corresponding Performance Goals have been achieved.

9.5           Form and Timing of Payment
of Performance Units/Performance Stock.   Payment of earned
Performance Units/Performance Stock shall be made following the close of the
applicable Performance Period.  The
Committee, in its sole discretion, may pay earned Performance Units/Performance
Stock in cash or in Stock (or in a combination thereof), which has an aggregate
Fair Market Value equal to the value of the earned Performance
Units/Performance Stock at the close of the applicable Performance Period.  Such Stock may be granted subject to any restrictions
deemed appropriate by the Committee.

 15
 

 

 

9.6           Termination.   Each
Performance Unit/Performance Stock Award Agreement shall set forth the extent
to which the Participant shall have the right to receive a Performance
Unit/Performance Stock payment following termination of the Participant’s
employment with the Company and its Subsidiaries during a Performance
Period.  Such provisions shall be
determined in the sole discretion of the Committee, shall be included in the
Award Agreement entered into with Participants, need not be uniform among all
grants of Performance Units/Performance Stock or among Participants and may
reflect distinctions based on reasons for termination.

To
the extent the Performance Unit/Performance Stock Award Agreement does not set
forth termination provisions, the provisions of Article 13 shall control.

9.7           Transferability.   Except
as otherwise determined by the Committee, a Participant’s rights with respect
to Performance Units/Performance Stock granted under the Plan shall be
available during the Participant’s lifetime only to such Participant or the
Participant’s legal representative and Performance Units/Performance Stock may
not be sold, transferred, pledged, assigned or otherwise alienated or
hypothecated, other than by will or by the laws of descent and distribution. To
the extent the Committee permits the transfer of Performance Units/Performance
Stock, in no event shall Performance Units/Performance Stock be transferred for
consideration.

Article 10.            Other Awards

The Committee shall have
the right to grant other Awards which may include, without limitation, the
payment of Stock in lieu of cash, the payment of cash based on attainment of
Performance Goals established by the Committee and the payment of Stock in lieu
of cash under other Company incentive or bonus programs. Payment under or settlement
of any such Awards shall be made in such manner and at such times as the
Committee may determine.

Article 11.            Deferrals

The Committee may, in its
sole discretion, permit a Participant to defer the Participant’s receipt of the
payment of cash or the delivery of Stock that would otherwise be due to such
Participant under the Plan. If any such deferral election is permitted, the
Committee shall, in its sole discretion, establish rules and procedures for
such payment deferrals.

Article 12.            Rights of Participants

12.1         Termination.   Nothing
in the Plan shall interfere with or limit in any way the right of the Company
or any Subsidiary to terminate any Participant’s employment or other
relationship with the Company or any Subsidiary at any time, for any reason or
no reason in the Company’s or the Subsidiary’s sole discretion, nor confer upon
any Participant any right to continue in the employ of, or otherwise in any
relationship with, the Company or any Subsidiary.

 16
 

 

 

12.2         Participation.   No
Eligible Person shall have the right to be selected to receive an Award under
the Plan, or, having been so selected, to be selected to receive a future
Award.

12.3
        Limitation
of Implied Rights.   Neither a Participant nor any other Person
shall, by reason of the Plan, acquire any right in or title to any assets,
funds or property of the Company or any Subsidiary whatsoever, including,
without limitation, any specific funds, assets or other property which the
Company or any Subsidiary, in their sole discretion, may set aside in
anticipation of a liability under the Plan. 
A Participant shall have only a contractual right to the Stock or
amounts, if any, payable under the Plan, unsecured by any assets of the Company
or any Subsidiary.  Nothing contained in
the Plan shall constitute a guarantee that the assets of such companies shall
be sufficient to pay any benefits to any Person.

Except
as otherwise provided in the Plan, no Award under the Plan shall confer upon
the holder thereof any right as a stockholder of the Company prior to the date
on which the individual fulfills all conditions for receipt of such rights.

12.4         Waiver.   Each
Participant, by acceptance of an Award, waives all rights to specific
performance or injunctive or other equitable relief and acknowledges that he
has an adequate remedy at law in the form of damages.

Article
13.            Termination of Employment

13.1         Options.   If
a Participant has a Termination of Employment, then, unless otherwise provided
by the Committee or in the Award Agreement, the following provisions shall
apply:

(i)            if
the Participant’s Termination of Employment is on account of death or
Disability, then all outstanding Options, to the extent not vested, shall vest,
and all outstanding Options may be exercised, in whole or in part, by the
Participant (or his personal representative, estate or transferee, as the case
may be) at any time on or before the earlier to occur of (x) the Expiration
Date of the Option and (y) the second anniversary of the date of such
Termination of Employment;

(ii)           if
the Participant’s Termination of Employment is on account of Retirement at the
Normal Retirement Date or Health Retirement Date, unvested Options shall
continue to vest in accordance with their terms, and all outstanding Options,
when vested, may be exercised, in whole or in part, by the Participant at any
time on or before the earlier to occur of (x) the Expiration Date of the Option
and (y) the fifth anniversary of the date of such Termination of Employment;

(iii)          if
the Participant’s Termination of Employment is on account of Retirement at the
Early Retirement Date, unvested Options shall be forfeited, and Options, to the
extent they are vested on the date of Termination of Employment, may be
exercised, in whole or in part, 

 17
 

 

 

by the Participant at any time on or before the
earlier to occur of (x) the Expiration Date of the Option and (y) the fifth
anniversary of the date of such Termination of Employment;

(iv)          if
the Participant’s Termination of Employment is for any other reason, unvested
Options shall be forfeited, and Options, to the extent they are vested on the
date of Termination of Employment, may be exercised, in whole or in part, by
the Participant at any time on or before the earlier to occur of (x) the
Expiration Date of the Option and (y) three months after the date of such
Termination of Employment; and

(v)           if
(A) the Participant’s Termination of Employment is for any reason other than
death and (B) the Participant dies after such Termination of Employment but
before the date the Options must be exercised as set forth in the preceding
subsections, unvested Options shall be forfeited and any Options, to the extent
they are vested on the date of the Participant’s death, may be exercised, in
whole or in part, by the Participant’s personal representative, estate or
transferee, as the case may be, at any time on or before the earliest to occur
of (x) the Expiration Date of the Option, (y) the second anniversary of the
date of death and (z) the applicable anniversary of the Termination of
Employment as set forth in subsections (i) through (iv) above.

Reload
Options may not be granted after a Termination of Employment.

13.2         Other Awards.   If a Participant has a Termination of
Employment, then, unless otherwise provided by the Committee or in the Award
Agreement, all Awards other than Options shall terminate and be forfeited on
the date of such Termination of Employment.

Article
14.            Equity Incentive Plans of Foreign Subsidiaries

The
Committee may authorize any foreign Subsidiary to adopt a plan for granting
Awards (“Foreign Equity Incentive Plan”) and awards granted under such Foreign
Equity Incentive Plans may be treated as grants under the Plan, if the
Committee so determines.  Such Foreign
Equity Incentive Plans shall have such terms and provisions as the Committee
permits not inconsistent with the provisions of the Plan and which may be more
restrictive than those contained in the Plan. 
Awards granted under such Foreign Equity Incentive Plans shall be
governed by the terms of the Plan except to the extent that the provisions of
the Foreign Equity Incentive Plans are more restrictive than the terms of the
Plan, in which case such terms of the Foreign Equity Incentive Plans shall
control.

Article
15.            Amendment, Modification and
Termination

The
Board may, at any time and from time to time, alter, amend, suspend or
terminate the Plan in whole or in part, provided that no amendment shall be
made which shall increase the total number of shares of Stock that may be
issued under the Plan, materially modify the requirements for 

 18
 

 

 

participation in the Plan, or materially increase the
benefits accruing to Participants under the Plan, in each case unless such
amendment is approved by the stockholders of the Company.

No
termination, amendment or modification of the Plan shall adversely affect in
any material way any Award previously granted under the Plan, without the
written consent of the Participant holding such Award, unless such termination,
modification or amendment is required by applicable law and except as otherwise
provided herein.

Article
16.            Payment for Awards and
Withholding

16.1         Payment for Awards.   In
the event a Participant elects to pay the Option Exercise Price or make payment
for any other Award through tender of previously acquired Stock, (i) only a
whole number of share(s) of Stock (and not fractional shares of Stock) may be
tendered in payment, (ii) such Participant must present evidence acceptable to
the Company that he has owned any such shares of Stock tendered in payment (and
that such shares of Stock tendered have not been subject to any substantial
risk of forfeiture) for at least six months prior to the date of exercise and
(iii) Stock must be tendered to the Company, either by actual delivery of the
shares or by attestation.  When payment
is made by tender of Stock, the difference, if any, between the aggregate
amount payable and the Fair Market Value of the share(s) of Stock tendered in
payment (plus any applicable taxes) shall be paid by check.  No Participant may tender shares of Stock
having a Fair Market Value exceeding the aggregate Option Exercise Price or
other payment due.

16.2         Loans and Guarantees.   The
Committee may, in its discretion to the extent permitted by applicable law:

(i)            allow a Participant to defer payment
to the Company of all or any portion of (x) the Option Exercise Price of any
option or (y) any taxes associated with a benefit hereunder which is not a cash
benefit at the time such benefit is so taxable, or

(ii)           cause the Company to guarantee a loan
from a third party to the Participant, in an amount equal to all or any portion
of such Option Exercise Price or any related taxes.

Any
such payment deferral or guarantee by the Company pursuant to this section
shall be on a secured or unsecured basis, for such periods, at such interest
rates, and on such other terms and conditions as the Committee may determine.  Notwithstanding the foregoing, a Participant
shall not be entitled to defer the payment of such Option Exercise Price or any
related taxes unless the Participant (x) enters into a binding obligation to
pay the deferred amount and (y) except with respect to treasury stock, pays
upon exercise of an Option an amount equal to or greater than the aggregate
Minimum Consideration therefor.  If the
Committee has permitted a payment deferral or caused the Company to guarantee a
loan pursuant to this section, then the Committee may, in its discretion,
require the immediate payment of such deferred amount or the immediate release
of such guarantee upon the Participant’s Termination of Employment or if the
Participant sells or otherwise transfers the Participant’s shares of Stock
purchased pursuant to such deferral or guarantee.

 19
 

 

 

16.3         Notification under Section
83(b).   The Committee may, on the grant date or any later date,
prohibit a Participant from making the election described below.  If the Committee has not prohibited such
Participant from making such election, and the Participant shall, in connection
with the exercise of any Option, or the grant of any share of Restricted Stock,
make the election permitted under Section 83(b) of the Code (i.e., an election
to include in such Participant’s gross income in the year of transfer the
amounts specified in Section 83(b) of the Code), such Participant shall notify
the Company of such election within 10 days of filing notice of the election
with the Internal Revenue Service, in addition to any filing and notification
required pursuant to regulations issued under the authority of Section 83(b) of
the Code.

16.4         Tax Withholding.   The
Company shall have the power and the right to deduct or withhold, or require a
Participant to remit to the Company, an amount (including any Stock withheld as
provided below) sufficient to satisfy Federal, state and local taxes (including
the Participant’s FICA obligation) required by law to be withheld with respect
to an Award made under the Plan.

16.5         Stock Withholding.   With
respect to tax withholding required upon the exercise of Options or SARs, upon
the lapse of restrictions on Restricted Stock or Restricted Stock Units, or
upon any other taxable event arising out of or as a result of Awards granted
hereunder, Participants may elect to satisfy the withholding requirement, in
whole or in part, by tendering Stock held by the Participant (by actual
delivery of the shares or by attestation) or by having the Company withhold
Stock having a Fair Market Value equal to the minimum statutory total tax which
could be imposed on the transaction.  All
elections shall be irrevocable, made in writing and signed by the Participant.

Article
17.            Substituted Awards

The
Committee may grant substituted awards for any cancelled Award granted under
this Plan or any plan of any entity acquired by the Company or any of its
Subsidiaries in accordance with this Article; provided, however, that a
substituted award cannot be of a type different than the cancelled Award
without approval by the stockholders of the Company.  If the Committee cancels any Award (granted
under this Plan, or any plan of any entity acquired by the Company or any of
its Subsidiaries), and a new Award is substituted therefor, then the Committee
may, in its discretion, determine the terms and conditions of such new Award
provided that, subject to Section 4.2, an Option or SAR granted in exchange
for, or in connection with, the cancellation or surrendering of an Option, SAR
or other award must have an Option Exercise Price or SAR Base Value not lower
than that of the cancelled Option or SAR, and further may provide that the
grant date of the cancelled Award shall be the date used to determine the
earliest date or dates for exercising or vesting the new substituted Award so
that the Participant may exercise the substituted Award, or the substituted
Award may vest, at the same time as if the Participant had held the substituted
Award since the grant date of the cancelled Award.

 20
 

 

 

Article 18.            Successors

All obligations of the
Company under the Plan, with respect to Awards granted hereunder, shall be
binding on any successor to the Company, whether the existence of such
successor is the result of a direct or indirect purchase, merger, consolidation
or otherwise of all or substantially all of the business and/or assets of the
Company.

Article 19.            Legal Construction

19.1         Gender and Number.   Except
where otherwise indicated by the context, any masculine term used herein also
shall include the feminine, the plural shall include the singular and the
singular shall include the plural.

19.2         Severability.    In
the event any provision of the Plan shall be held illegal or invalid for any
reason, the illegality or invalidity shall not affect the remaining parts of
the Plan, and the Plan shall be construed and enforced as if the illegal or
invalid provision had not been included.

19.3         Requirements of Law.   The
granting of Awards and the issuance of Stock under the Plan shall be subject to
all applicable laws, rules and regulations, and to such approvals by any
governmental agencies or national securities exchanges as may be required.

19.4         Governing Law.   To
the extent not preempted by Federal law, the Plan, and all agreements
hereunder, shall be construed in accordance with, and governed by, the laws of
the State of Delaware, except with regard to conflicts of law provisions.

19.5         Code
Section 409A Compliance.   To the extent applicable, it is
intended that this Plan and any Awards granted hereunder comply with the
requirements of Section 409A of the Code and any related regulations or other
guidance promulgated with respect to such Section by the U.S. Department of the
Treasury or the Internal Revenue Service (“Section 409A”).  Any provision that would cause the Plan or
any Award granted hereunder to fail to satisfy Section 409A shall have no force
or effect until amended to comply with Section 409A, which amendment may
be retroactive to the extent permitted by Section 409A.

 

 21

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