Document:

Exhibit 10.3

    December
      6, 2006

    

    Mr.
      John
      Briner

    Drayton
      Harbor Resources, Inc.

    502
      East
      John Street

    Carson
      City, Nevada 89706

    

    RE: DRAYTON
      HARBOR RESOURCES, INC. - Registration Statement of Form SB-1

    

    Dear
      Sir,

    

    I,
      GREGORY R. THOMSON, P.Geo, have provided geology services for DRAYTON HARBOR
      RESOURCES, INC., a Nevada corporation (the "Company"), in connection with the
      preparation of the Geologists Report entitled, SUMMARY REPORT ON THE CANYON
      GOLD
      COPPER PROPERTY, to be used on the Registration Statement
      on Form SB-1 (the "Registration Statement") to be filed with the Securities
      and
      Exchange Commission (the "Commission") pursuant to the Securities Act of 1933,
      as amended, relating to the offering of 2,500,000 shares of the Company's common
      stock (the “Shares") by the selling shareholder (the "Selling Shareholder")
      named in the Registration Statement.

    

    I
      consent
      to the use of the geologist report as an exhibit to the Registration Statement
      and further consent to the use of my name wherever appearing in the
      Registration Statement and in any amendment thereto.

    

    
 

    /S/
      Gregory R. Thomson, P. Geo.

    
      
        

      

    
Gregory R. Thomson, P. Geo.Sujon Ltd

    Exhibit
      10.33  

    ACTIS
      Global Ventures, Inc..

    1905
      Aston Drive, Suite 101

    Carlsbad,
      CA 92008

    

    February
      16, 2007

    Sujon
      Limited

    14
      Hackwood,

    Robertsbridge,
      East Sussex,

    TN
      32
      5ER

    United
      Kingdom

    

    Re: ACTIS
      Global Ventures, Inc.(the
      “Company”) -Amendment of Note

    

    Ladies
      and Gentlemen:

    

    This
      letter sets forth the agreement of the parties hereto to amend the due date
      of
      the promissory note dated October 19, 2006.

    

    By
      execution hereof, for good and valuable consideration the receipt and
      sufficiency of which is hereby acknowledged, the parties hereto agree
      that:

     

    	1.  	
            The
              due date of the promissory note is hereby amended, effective February
              18,
              2007, to be April 2, 2007.

          

     

    	2.  	
            All
              other provisions of the promissory note shall remain in full force
              and
              effect.

          

     

    The
      parties shall do and perform, or cause to be done and performed, all such
      further acts and things, and shall execute and deliver all such other
      agreements, certificates, instruments and documents, as the other parties hereto
      may reasonably request in order to carry out the intent and accomplish the
      purposes of this letter agreement, including without limitation the issuance
      of
      an amended promissory note.

    

    Please
      signify your agreement with the foregoing by signing a copy of this letter
      where
      indicated and returning it to the undersigned.

    

    Sincerely,

    ACTIS
      Global Ventures, Inc.

    

    /s/
      RAY W. GRIMM, JR.        

    By:
      Ray
      W. Grimm, Jr.

    Title:
      Chief Executive Officer

    

    ACCEPTED
      AND AGREED:

    Sujon
      Limited

    /s/
      CLIFFORD WILKINS        

    By:
      Clifford WilkinsExhibit 10.5  

Annual Incentive Plans

Performance Goals and Target Awards for 2007  

        The registrant maintains two shareholder-approved plans under which executive officers have the opportunity to receive an annual cash award based on the
achievement of performance goals over a one-year period. The Annual Covered Employee Incentive Compensation Plan ("Covered Employee Plan") governs awards to those executive officers who
are considered "covered employees" as defined in Section 162(m)(3) of the Internal Revenue Code. Annual incentive awards to all other executive officers are governed by and made under the
Annual Executive Incentive Compensation Plan ("Executive Plan"). The Compensation and Succession Committee of the Board of Directors establishes performance goals for each fiscal year and sets
threshold, target and maximum award opportunities. The Committee has the authority to adjust the amount of awards, but has no authority to increase the amount of an award otherwise payable under the
Covered Employee Plan. Payments are made after the Committee has certified in writing the degree of attainment of the performance goals. 

        On
February 20, 2007, the Committee approved performance measures and target awards under the plans for 2007. The same performance measures apply to both the Covered Employee Plan
and Executive Plan. For the chairman, chief executive officer, chief financial officer and other executive officers in corporate functions, there are two equally-weighted measures. One is based on an
adjusted operating income per diluted share measure. The other measure is based on combined business unit results. 

        For
Allstate Protection executive officers, their award opportunity is based on four performance measures, generally weighted as follows: 45% based on a matrix used by management to
emphasize a balanced approach to premium growth and profit; 15% based on a matrix measuring sales and profitability of proprietary and non-proprietary financial products; 20% based on a
measure of customer loyalty; and 20% based on the corporate adjusted operating income per diluted share measure. 

        For
the Allstate Financial executive officers, there are four performance measures, weighted as follows: 30% based on adjusted Allstate Financial operating income; 20% based on a measure
of the sales of Allstate Financial products by Allstate exclusive agencies and the profitability of those sales; 30% based on a matrix used by management to emphasize a balanced approach to growth and
profit; and 20% based on the corporate adjusted operating income per diluted share measure. 

        For
the executive officer in the Investments business unit, there are six performance measures, weighted as follows: 20% based on a measure of Allstate Insurance Company portfolio
one-year return; 20% based on a measure of Allstate Insurance Company portfolio three-year return; 30% based on two measures of Allstate Financial yield on purchases of fixed
income securities relative to a benchmark; 10% on a measure of Allstate Financial realized capital losses attributed to credit loss; and 20% based on the corporate adjusted operating income per
diluted share measure. 

        Threshold,
target and maximum levels of performance are established for each performance measure. If the maximum level of performance is achieved, the award would be three times the
executive officer's target award, with target awards generally ranging from 50% to 120% of annual salary for the fiscal year.Exhibit 10.9  

Long-Term Executive Incentive Plan—Performance Goals and Target Awards for the 2007-2009 Cycle  

        The registrant maintains a shareholder-approved Long-Term Executive Incentive Compensation Plan to provide certain executives, including the executive
officers, the opportunity to receive a cash award based on the achievement of performance objectives over a three-year cycle. The Compensation and Succession Committee of the Board of
Directors establishes performance measures for each cycle and sets threshold, target and maximum award opportunities. The amount of each executive's payout is dependent on the achievement of the
performance measures. The Committee has the authority to adjust the amount of awards payable under the Plan, but has no authority to increase the amount of an award otherwise payable to a "covered
employee" as defined in Section 162(m)(3) of the Internal Revenue Code. Payments are made in March of the year following the end of the respective cycle, after the Committee has certified in
writing the degree of attainment of the cycle's performance goals. 

        On
February 20, 2007 the Committee approved performance measures and target award opportunities for the 2007-2009 three-year performance cycle. The award
opportunities are based on three performance measures. 50% of the award opportunity is based on a three-year adjusted average net income return on equity measure, as compared to a peer
group of companies representing both the property/casualty and financial services industries. No payment based on this return on equity measure is made unless that return exceeds the average rate on
three-year Treasury Notes over the three-year cycle, plus 200 basis points. 25% of the award opportunity is based on a measure of Allstate Protection's growth in policies in
force ("PIF") over the three-year cycle, excluding property insurance, Motor Club, and the loan protection business. The remaining 25% is based on a measure of three
year-average Allstate Financial operating income return on capital. Threshold, target and maximum levels of performance are established for each performance measure. If the maximum level
of performance is achieved, the award would be three times the executive officer's target award, with target awards generally ranging from 40% to 155% of salary.Exhibit 10.11  

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 meetings held on September 10, 2006 and on February 20, 2007, 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: 

        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. 

        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 the price at which a share of the Stock was last sold in the principal United States market for
the Stock as of the date for which fair market value is being determined, which in the case of Restricted Stock or Restricted Stock Units is the last day of the Period of Restriction. 

        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 

2

 

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 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. 

	(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 

3

 

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). 

        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 

4

 

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 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. 

5

   
        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 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 

6

 

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 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 

7

 

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; 

        (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 

8

 

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. 

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

	(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. 

9

 

        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 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. 

10

   
        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. 

        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 

11

 

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. 

        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. 

        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 

12

 

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, 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. 

13

 

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 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 

14

 

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. 

        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. In the event a
Participant fails to make an election by the date required, the Participant will be deemed to have made an election to have the Company withhold Stock having a Fair Market Value equal to the minimum
statutory total tax which could be imposed on the transaction. 

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. 

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 

15

 

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. 

16

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