Document:

Exhibit 4.5

 

Agreement for Subscription for the Seventh Share Option Offering

 

This Agreement is made and entered into by and between UBIC, Inc. (hereinafter referred to as the “Company”) and  Subscriber’s name  (hereinafter referred to as the “Subscriber”) with respect to the subscription for the seventh share option offering.

 

Article 1 (Subscription for Share Options)

 

In accordance with the resolution of the ninth annual shareholders’ meeting held on June 22, 2012 and the resolution of the board meeting held on May 31, 2013, the Company has determined the following requirements for the seventh share option offering (hereinafter referred to as the “Share Options”), of which the Subscriber subscribes for  XX options. Since this Agreement shall be made integrally at the same time with other subscribers in accordance with Article 244 of the Companies Act of Japan, the Subscriber shall subscribe for the Share Options simultaneously with the other subscribers collectively for the total number of Share Options described below.

 

Description

 

Requirements for the offering of Share Options

 

(1)                      Class and number of shares covered by the Share Options

 

30,000 Class A common shares, which, in case of adjustment set forth below, shall be revised to the number of granted shares after adjustment multiplied by the total number of Share Options.

 

Number of shares covered by one (1) Share Option (hereinafter referred to as the “Number of Granted Shares”) shall be 10 class A common shares. In the event of a stock split (including a gratis allotment of common stock and this being applicable hereinafter, as well) or a reverse split by the Company after the day when the Share Options are allotted (hereinafter referred to as the “Date of Allotment”), the following formula shall be used to adjust the Number of Granted Shares covered by the Share Options that have not been exercised at the time of adjustment. Fractional share resulting from adjustment shall be discarded.

 

Number of Granted Shares after adjustment = Number of Granted Shares before adjustment × ratio of split or reverse split

 

Any adjustment of the Number of Granted Shares which may be required in other situations shall be made to a reasonable extent.

 

(2)                      Total number of Share Options

 

3,000

 

(3)                      Amount payable in exchange of the Share Options

 

No payment is required in exchange of the Share Options

 

(4)                      Manner of calculating the value of assets contributed in exercising the Share Options

 

46,840 yen for one (1) Share Option

 

Value of assets contributed in exercising one (1) Share Option shall be obtained by multiplying the amount paid per share for the shares delivered upon exercise of the Share Option (hereinafter referred to as the “Exercise Price”) by the Number of Granted Shares.

 

 

The Exercise Price shall be 4,684 yen

 

If any of the following events occurs on or after the Date of Allotment, the Exercise Price shall be adjusted as follows.

 

(i)      For the share split or reverse split by the Company, the Exercise Price shall be adjusted in accordance with the formula stated below and fractional yen resulting from the adjustment shall be rounded up to the nearest yen.

 

	
Exercise Price after adjustment
    	
=
    	
Exercise Price before adjustment
    	
×
    	
1
    
	
ratio of share split or reverse split
    

 

(ii)     If the Company issues new shares at a price below the market price or dispose of the treasury stock, the Exercise Price shall be adjusted in accordance with the formula stated below and fractional yen resulting from the adjustment shall be rounded up to the nearest yen.

 

	
Exercise Price after adjustment
    	
=
    	
Exercise Price before adjustment
    	
×
    	
number of issued shares
    	
+
    	
number of newly issued shares × amount paid per share
    
	
market price
    
	
number of issued shares + number of newly issued shares
    

 

In the above formula, the “number of issued shares” means the total number of shares issued by the Company less the number of treasury stock in the possession of the Company. In case of the disposition of treasury stock, the “number of newly issued shares” shall read “number of treasury stock disposed of.”

 

(iii)    In case of merger or company split of the Company or other inevitable situations which require the adjustment of the Exercise Price, the adjustment shall be made to a reasonable extent taking into account the conditions of merger or company split.

 

(5)              Period during which the Share Options can be exercised

 

From June 1, 2016 to May 31, 2019

 

(6)              Conditions to exercise the Share Options

 

(i)    Person to whom the Share Options are allotted (hereinafter referred to as the “Share Option Holder”) must be either a director, statutory auditor, executive officer or employee of the Company or its subsidiary, or a supplier to the Company at the time of exercising the option, except if such person resigns due to expiry of term of office, retires by age limit or terminates employment due to a company’s reason or if otherwise justified by the board of directors.

 

(ii)   No Share Option shall be inherited.

 

(iii)  No Share Option shall be partially exercised.

 

(iv)  All other conditions shall be as set forth in the “Agreement for Share Options Allotment” to be entered into between the Company and the Share Option Holder pursuant to the relevant resolution of the board meeting.

 

(7)              Reason and conditions for acquisition of the Share Options

 

In the event that a proposal to approve a merger agreement where the Company is to be extinguished is approved at the shareholders’ meeting of the Company or that a proposal to approve a stock swap agreement where the Company is to be wholly owned or a proposal to approve a stock transfer plan is approved at the shareholders’ meeting of the Company (or, if a resolution of the shareholders’ meeting is not required, is resolved by the board meeting of the Company), the Company may acquire the Share Options at free on the day separately

 

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designated by the board of directors.

 

(8)              Restriction on acquisition of the Share Options by assignment

 

Acquisition of the Share Options by assignment shall require an approval of the board of directors of the Company.

 

(9)              Conditions for the capital and capital reserve increase by issuance of shares upon exercise of the Share Options

 

(i)         Amount of capital increase when the shares are issued upon exercise of the Share Options shall be one half of the maximum capital increase calculated in accordance with paragraph 1, Article 17 of the Ordinance on Company Accounting and fractional yen resulting from the calculation shall be rounded up to the nearest yen.

 

(ii)        Amount of capital reserve increase when the shares are issued upon exercise of the Share Options shall be the maximum capital increase referred to in the item (i) above less the amount of capital increase obtained under the item (i) above.

 

(10)       Handling of the Share Options in case of corporate reorganization

 

In the event of a merger (limited to the cases where the Company is to be extinguished), absorption-type company split or incorporation-type company split (limited to the cases where the Company is to be split), or stock swap or stock transfer (limited to the cases where the Company is to be a wholly-owned subsidiary) (hereinafter collectively referred to as the “Corporate Reorganization”), the Company shall deliver the share options of a stock company prescribed in Section 236.1.8 (a) to (e) of the Companies Act of Japan(hereinafter referred to as the “Reorganized Company”) to the Share Option Holder who has the Share Options remaining (hereinafter referred to as the “Remaining Share Options”) immediately prior to the day when the Corporate Reorganization comes into effect (that is, for a merger, the day when the merger comes into effect; for a consolidation, the day when a stock company is incorporated through consolidation; for an absorption-type company split, the day when the absorption-type company split comes into effect; for an incorporation-type company split, a stock company is incorporated from the incorporation-type company split; for a stock swap, the day when the stock swap comes into effect; and for a stock transfer, the day when a wholly owning parent company incorporated through stock transfer, and these being applicable hereinafter, as well). In this case, the Remaining Share Options shall be extinguished and the Reorganized Company shall newly issue the share options, provided that the merger agreement, consolidation agreement, absorption-type company split agreement, incorporation-type company split plan, stock swap agreement or stock transfer plan shall contain the statement that the Reorganized Company will deliver the share options in accordance with the following provisions.

 

(i)         Number of Share Options of the Reorganized Company to be delivered

The same number as the Remaining Share Options in the possession of the Share Option Holder shall be delivered.

 

(ii)                        Type of stock of the Reorganized Company covered by the share options

Common shares of the Reorganized Company

 

(iii)                     Number of shares of the Reorganized Company covered by the share options

To be determined in accordance with the above “(1) Class and number of shares covered by the Share Options” taking into account the conditions for Corporate Reorganization.

 

(iv)                    Manner of calculation of the value of assets contributed to exercise the share options

Value of assets contributed in exercising one (1) Share Option to be delivered shall be obtained by multiplying the Exercise Price after adjustment prescribed in the item (4) (iii) above by the number of shares of the Reorganized Company covered by such Share Option as determined under the item (iii) above.

 

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(v)        Period during which the share options can be exercised

From the day when the above “(5) Period during which the Share Options can be exercised” commences or the day when the Corporate Reorganization comes into effect, whichever is the later, to the day when the above “(5) Period during which the Share Options can be exercised” expires

 

(vi)                    Conditions for the capital and capital reserve increase by issuance of shares upon exercise of the share options

To be determined in accordance with the above “(9) Conditions for the capital and capital reserve increase by issuance of shares upon exercise of the Share Options”

 

(vii)                 Restriction on acquisition of the share options by assignment

Acquisition of the share options by assignment shall require an approval of the board of directors of the Reorganized Company.

 

(viii)              Reason and conditions for acquisition of the share options

To be determined in accordance with the above “(7) Reason and conditions for acquisition of the Share Options”

 

(11)       Fractional share delivered upon exercise of the Share Options

Fractional share delivered upon exercise of the Share Options shall be discarded.

 

(12)       Date of Allotment

 

May 31, 2013 (Friday)

 

Article 2 (Special Provisions for Exercise of Option)

 

1.              In addition to the conditions provided in other Articles hereof, the following restrictions shall be applied to the Subscriber in exercising the Share Options.

 

(1)              Total amount paid in exercising the options (including exercising the share options and equity warrant under both the Companies Act of Japan and the Old Commercial Code (hereinafter jointly referred to as the “Share Warrant, etc.”)) shall not exceed 12,000,000 yen for a calendar year. For the avoidance of doubt, total amount including the amount paid in exercising the Share Warrant, etc. granted by the Company and by other companies collectively shall not exceed 12,000,000 yen for a calendar year.

 

(2)              The Subscriber shall make arrangement with a financial instruments business operator nominated by the Company (hereinafter referred to as the “Financial Instruments Business Operator”) for the entry or registration in the transfer account registry (hereinafter referred to as the “Transfer”), entrustment of storage or trust for management and disposition (hereinafter referred to as the “Management Trust”) (to be segmented for each share option holder) in compliance with statutory tax qualification requirements with respect to the shares acquired upon exercise of the option and shall take all measures required for the entrustment of the Transfer to the Subscriber’s account opened with the Financial Instruments Business Operator with whom such arrangement is made and the storage at a branch or an office of the Financial Instruments Business Operator with whom such arrangement is made or required for the Management Trust.

 

2.              Notwithstanding the provisions of paragraph (8) of Article 1, the Subscriber shall not assign, or place the security right on, the Share Options.

 

3.              If the Subscriber falls under any of the situations stated below, the Subscriber and its successor shall not exercise the Share Options and loses them.

 

(1)              A petition is filed by third party against the Subscriber for the attachment, provisional attachment, provisional disposition or auction or the commencement of procedures of bankruptcy or civil rehabilitation.

 

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(2)              A petition is filed by the Subscriber itself for the commencement of procedures of bankruptcy or civil rehabilitation.

 

(3)              There are other reasons that objectively show a significant worsening financial status of the Subscriber.

 

(4)              The Subscriber is sentenced to imprisonment without work or a heavier punishment.

 

(5)              The Subscriber who is an employee of the Company or its subsidiary is punished under the office rules of the Company or its subsidiary as disciplinary dismissal or retirement under instruction.

 

4.              The Company shall deliver the shares against exercise of option by the Subscriber, including issuing new shares or transferring or assigning existing shares, without violation of the requirements for offering of the Share Options.

 

Article 3 (Manner of Exercising the Option)

 

1.              In exercising the Share Options, the Subscriber shall transfer the amount paid to the bank account designated by the Company and shall provide the Company with the application (claim) for exercise of the share options in a given form.

 

2.              To exercise the options in a manner set forth in the preceding paragraph, the Subscriber shall open an account in his name with the Financial Instruments Business Operator in a manner prescribed by the Company.

 

3.              Immediately after completion of the procedures for the Subscriber to exercise the Share Options, the Company shall take measures required for the entrustment of the entry or registration of the shares acquired by the Subscriber by exercising the Share Options in the account in name of the Subscriber opened with the Financial Instruments Business Operator under the preceding paragraph and the storage at a branch or an office of the Financial Instruments Business Operator or required for the Management Trust.

 

4.              If the tax exemption measures under Article 29-2 of the Act on Special Measures concerning Taxation are not applied to the exercise of the Share Options, the Subscriber shall pay the amount equal to the withholding income tax imposed on the economic profit from the acquisition of shares by exercising the Share Options together with the amount paid under the paragraph 1.

 

Article 4 (Manner of Expressing Intention and Giving a Notice)

 

1.              The Company shall express its intention or give a notice to the Subscriber by sending documents either by mail to the address of the Subscriber recorded in the Share Option Registry or by sending an e-mail to the address preliminarily notified by the Subscriber to the Company.

 

2.              Any change in any one of the following items must be notified by the Subscriber to the Company.

 

(1)              Name of the Subscriber

 

(2)              Address of the Subscriber

 

(3)              E-mail address for the purpose of the preceding paragraph

 

3.              If the Subscriber fails to notify as set forth in the preceding paragraph, the address recorded in the Share Option Registry shall be considered as the current address of the Share Option Holder.

 

4.              The notice set forth in the paragraph 1 shall be deemed to have arrived at the time when it would have ordinarily arrived.

 

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5.              Provisions of the preceding paragraphs shall be applied to the resignation due to expiry of term of office, retirement by age limit or termination of employment by a company’s reason as provided in Article 1(6)(i) and other cases justified by the board of directors.

 

Article 5 (Abandonment of Claim for Damages)

 

The Subscriber shall not hold the Company, its director or any other parties to whom the Company entrusted the business transactions liable for covering losses, adding profits, compensating damages, nor claim or pursue any responsibilities against the parties above in connection with this Agreement irrespective of reasons.

 

Article 6 (Right to Establish Bylaws)

 

1.              The Company may establish, amend or abolish the “Bylaws to Agreement for Share Options Allotment” (hereinafter referred to as the “Bylaws”) to provide for the rules regarding the enforcement of this Agreement.

 

2.              The Company must promptly notify the Subscriber of the Bylaws which may be established, amended or abolished under the preceding paragraph.

 

3.              The Subscriber may request the Company to allow access to the Bylaws during its business hours and may copy the same at the Subscriber’s cost.

 

Article 7 (Amendment to Agreement)

 

1.              If any provision hereof proves to be incompliant with any provision of the Income Tax Act, Corporation Tax Act or other tax laws or becomes incompliant with the same due to revisions after execution of this Agreement, the Company may amend or abolish such provision by giving a notice to the Subscriber. This rule shall be applied if any provision hereof proves to be or becomes incompliant with the Companies Act, Financial Instruments and Exchange Act or other relevant laws.

 

2.              In addition to the preceding paragraph, the Company may make a proposal to the Subscriber to amend this Agreement if deemed necessary.

 

3.              If the Subscriber does not lodge any objection with the Company in writing stating due reasons within three (3) weeks after the proposal under the preceding paragraph, this Agreement shall be deemed to have been automatically amended as proposed by the Company.

 

Article 8 (Taxation Process)

 

The Subscriber shall pay at his cost and responsibility the income tax and any other taxes and dues imposed as a result of the subscription and exercise of the Share Options and the sale of the Company’s shares acquired upon exercise thereof.

 

Article 9 (Handling of Issues Not Specified)

 

Handling of issues not specified in this Agreement or the Bylaws shall be faithfully negotiated by the Company and the Subscriber and, if the Subscriber does not agree to negotiate or no agreement is reached between both parties after negotiation, shall be determined by the Company.

 

Article 10 (Governing and Jurisdiction)

 

The Company and the Subscriber agree that the Japanese law shall govern this Agreement and any dispute hereunder shall be submitted to the Tokyo District Court which has the exclusive jurisdiction for the first trial.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in two (2) copies with their respective names and seals and the Company and the Subscriber shall retain the original copies, respectively.

 

	
July 16,   2013
    	
 
    
	
 
    	
 
    
	
Company:
    	
UBIC, Inc.
    
	
 
    	
 
    
	
 
    	
Masahiro   Morimoto, President and Representative Director
    
	
 
    	
 
    
	
 
    	
2-12-23,   Kounan, Minato Ward, Tokyo
    
	
 
    	
 
    
	
 
    	
 
    
	
Subscriber:
    	
(Address)
    
	
 
    	
 
    
	
 
    	
(Name)
    

 

7EXHIBIT 10.3

 

 

SUPPLEMENTAL RETIREMENT INCOME PLAN

 

(As Amended and Restated Effective January 1, 2014)

 

 

SECTION 1

 

Definitions

 

1.1.                        Agent.  Any Employee who is classified as an Employee Subgroup Code 8 Regular Employee Agent Exempt or an Employee Subgroup Code 18 New York Financial Specialist Agent Exempt (formerly referred to collectively as Employee Type Code 30 Agent-Full Time) on an Employer’s human resource system

 

1.2.                        Beneficiary.  A Participant’s “Beneficiary” under the Plan means the person or persons entitled to benefits under the Retirement Plan because of the Participant’s death.

 

1.3.                        Board of Directors.  “Board of Directors” means the Board of Directors of The Allstate Corporation.

 

1.4.                        Code.  “Code” means the Internal Revenue Code of 1986, as amended, including regulations and other guidance of general applicability promulgated thereunder.

 

1.5.                        Committee.  “Committee” means the Administrative Committee under the Retirement Plan.

 

1.6.                        Company.  “Company” means The Allstate Corporation, a Delaware corporation.

 

1.7.                        Date of Death.  “Date of Death” means the date of the Participant’s death.

 

1.8.                        Deferral Period Interest for Pre-409A Benefits.  “Deferral Period Interest for Pre-409A Benefits” for the deferred portion of Pre-409A Benefits means the blended first segment lump sum interest rate used to calculate the lump sum payment under the Retirement Plan and will apply to the deferred portion of the Pre-409A Benefit from the period beginning on the Payment Start Date and ending on the Plan Payment Date for Pre-409A Benefits, or, if earlier, the date Pre-409A Benefits are paid.

 

1.9.                        Eligible Annual Compensation.  “Eligible Annual Compensation” means a Participant’s Annual Compensation as defined in the Retirement Plan, but without regard to the applicable calendar year limitation imposed by Section 401(a)(17) of the Code.

 

1.10                    Employers.  The Company and each subsidiary or affiliate of the Company which adopts the Retirement Plan is referred to herein individually as an “Employer” and collectively as 

 

 

the “Employers.”

 

1.11                    ERISA.  “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

 

1.12                    Hardship.  Hardship means an urgent financial need that cannot be satisfied through other reasonable sources, as determined by the Committee.

 

1.13                    Participant.  “Participant” means any employee of an Employer who is participating in the Plan, as provided herein.

 

1.14                    Payment Start Date.  “Payment Start Date” means the date on which a Participant’s benefits are paid or commence to be paid to him from the Retirement Plan.

 

1.15                    Plan.  “Plan” means the Supplemental Retirement Income Plan, as described herein.

 

1.16                    Plan Payment Date for Pre-409A Benefits.  “Plan Payment Date for Pre-409A Benefits” means the January 1 coincident with or next following the Payment Start Date on which the Retirement Plan becomes obligated to pay a Participant’s benefits.

 

1.17                    Plan Payment Date for Post-409A Benefits.  “Plan Payment Date for Post-409A Benefits” for a participant who separates from service prior to age 55 means the first business day of the calendar month after the Participant’s separation from service that is, or next follows, the later of (i) the January 1 following the Participant’s attainment of age 55 or (ii) the date that is the six-month anniversary of the separation from service.  “Plan Payment Date for Post-409A Benefits” for a participant who separates from service on or after reaching age 55 means the first business day of the calendar month after the Participant’s separation from service that is, or next follows, the later of (i) the January 1 following the Participant’s separation from service or (ii) the date that is the six-month anniversary of the separation from service. If a Participant dies prior to a separation from service or after a separation from service but before the Plan Payment Date for Post-409A Benefits and such death occurs between January 1 and June 30, the Post-409A Benefits payable to the Beneficiary shall be paid between July 1 and December 31 of the same calendar year as the Participant’s death.  If a Participant dies prior to a separation from service or after a separation from service but before the Plan Payment Date for Post-409A Benefits and such death occurs between July 1 and December 31, the Post-409A Benefits payable to the Beneficiary shall be paid between January 1 and December 31 of the calendar year next following the Participant’s death.

 

For purposes of this subsection, “separation from service” shall mean a termination of employment upon which a Participant ceases performing services for all entities within the Company’s controlled group, as defined in Code Sections 414(b) and 414(c) (i.e., the 80-percent controlled group).  Notwithstanding, a separation from service shall also include a reduction in a Participant’s rate of services to any such entity that is reasonably anticipated to be a permanent reduction to a rate that is 20 percent or less of the average rate of services performed by the Participant in the 36 months prior to such reduction.  If

 

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a Participant ceases or reduces services under a bona fide leave of absence, a separation from service occurs after the close of the 6-month anniversary of the commencement of such leave; provided, however, that if the Participant has a statutory or contractual right to reemployment, the separation from service shall be delayed until the date that the Participant’s right ceases or, if the Participant resumes services, until the Participant subsequently separates from service.  For purposes of determining whether a Participant has a separation from service, services taken into account shall include services performed for the Company as an independent contractor but not services performed as a non-employee director of any entity within the controlled group.  Determination of whether a separation from service occurs shall be made in a manner that is consistent with Treas. Reg. 1.409A-1(h).

 

1.18                    Pre-409A Benefit.  “Pre-409A Benefit” means the benefit that was fully earned and vested as of December 31, 2004, under the terms of the Plan as in effect on October 3, 2004, including any Deferral Period Interest for Pre-409A Benefits and, therefore, is not subject to Code Section 409A.

 

1.19                    Post-409A Benefit.  “Post-409A Benefit” means any benefit that is not a Pre-409A Benefit.

 

1.20                    Required Distributions.  “Required Distributions” means distributions required to be made by the Retirement Plan as defined in Section 401(a)(9) of the Code.

 

1.21                    Retirement Plan.  “Retirement Plan” means the Allstate Retirement Plan, as amended from time to time.

 

SECTION 2

 

Introduction

 

2.1.                        History.  The Plan was established as of January 1, 1978 and amended and restated as of January 1, 1996, December 31, 2008, November 30, 2011, and January 1, 2014.

 

2.2.                        Purpose.  The Company maintains the Retirement Plan, a defined benefit pension plan which is intended to meet the applicable requirements of the Code.  The Code places limitations and restrictions on the amount of benefits which may be paid from, and the amount of compensation which may be taken into account in calculating benefits under, the Retirement Plan.  The purpose of this Plan is to provide benefits to Participants in the Plan which would otherwise be earned under but may not be provided from the Retirement Plan because of these limitations and restrictions of the Code.  It is intended that this Plan only cover a select group of management or highly compensated employees for purposes of ERISA.  The Plan is intended to conform to the requirements of Code Section 409A with respect to Post-409A Benefits.

 

2.3.                        Administration.  The Plan will be administered by the Committee.  The Committee has the discretionary authority to issue such rules as it deems appropriate and to construe and

 

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interpret the provisions of the Plan and make factual determinations thereunder, including the power to determine the rights or eligibility of employees or Participants and any other persons, and the amounts of their benefits under the Plan, and to remedy ambiguities, inconsistencies or omissions.  Any decision by the Committee hereunder or with respect hereto shall be final, binding and conclusive on all Participants and all other persons whomsoever.  The Committee shall interpret the Plan in a manner that it determines does not result in taxation of Participants under Code Section 409A.

 

2.4.                        Plan Benefits for Participants Whose Benefits Commenced Prior to December 31, 2008.  Pre-409A Benefits that commenced prior to December 31, 2008 will, except as otherwise specifically provided herein, be governed in all respects by the terms of the Plan as in effect as of the date the Participant’s benefits commenced and in good faith compliance with Code Section 409A.  The benefits provided hereunder with respect to Participants whose benefits commence on or after December 31, 2008 will be governed in all respects by the terms of this Plan, which have been amended to conform the requirements of Code Section 409A for Post-409A Benefits.

 

SECTION 3

 

Participation and Amount of Benefits

 

3.1.                        Eligibility.  Each employee of an Employer who is a participant in the Retirement Plan, who is entitled to receive final average pay or cash balance benefits from the Retirement Plan, and whose benefits thereunder have been limited by the Code as described in Section 2.2 will become a Participant in this Plan.  In the event of the death of such a Participant, his Beneficiary shall be entitled to receive the Participant’s benefits under the Plan.  Benefits payable under the Plan to a Participant or his Beneficiary are determined in accordance with Sections 3.2 and 3.3.  Benefits under the Plan with respect to a Participant or Beneficiary (in the event of a Participant’s death) may be comprised of both Pre-409A Benefits and Post-409A Benefits.  An Agent entitled to a benefit under the Agents Pension Plan is not eligible for benefits under this Plan with respect to such Agent’s period of employment used to determine his benefit under the Agents Pension Plan.  An Agent may be eligible for benefits under this Plan if, after December 31, 2013, he becomes a Participant pursuant to the first sentence of this Section 3.1 but only with respect to his benefits paid from the Retirement Plan.

 

3.2.                        Amount of Pre-409A Benefits.  The amount of any benefits which otherwise would have been provided for a Participant under the Retirement Plan as of December 31, 2004, but which may not be paid from such plan because of the limitations and restrictions imposed by the Code, shall be calculated as provided in this Section 3.2 and paid under this Plan as provided in Section 4 below.  Such benefits shall be equal to the excess of:  (a) the amount of retirement benefit as of December 31, 2004 which otherwise would have been provided for the Participant (or in the event of his death, his Beneficiary) by the Retirement Plan, determined without regard to the limitations of the Code and by taking into account any compensation deferred on or before December 31, 2004 under The Allstate Corporation Deferred Compensation Plan and The Allstate Corporation Deferred

 

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Compensation Plan for Employee Agents which is not included as Annual Compensation (as defined in the Retirement Plan) under the Retirement Plan; over (b) the actual amount of retirement benefit determined for the Participant or his Beneficiary under the Retirement Plan as of December 31, 2004.  The Amount of Pre-409A Benefits will be calculated on the Payment Start Date and will include Deferral Period Interest for Pre-409A Benefits, as applicable.

 

3.3                            Amount of Post-409A Benefits. The amount of any benefits which otherwise would have been provided for a Participant under the Retirement Plan after December 31, 2004, but which may not be paid from such plan because of the limitations and restrictions imposed by the Code, shall be calculated as provided in this Section 3.3 and paid under this Plan as provided in Section 4 below.  Such benefits shall be equal to the excess of:  (a) the amount of retirement benefit earned after December 31, 2004 which otherwise would have been provided for the Participant (or in the event of his death, his Beneficiary) by the Retirement Plan, determined without regard to the limitations of the Code and by taking into account any compensation deferred after December 31, 2004 under The Allstate Corporation Deferred Compensation Plan and The Allstate Corporation Deferred Compensation Plan for Employee Agents which is not included as Annual Compensation (as defined in the Retirement Plan) under the Retirement Plan; over (b) the actual amount of retirement benefit determined for the Participant or his Beneficiary under the Retirement Plan after December 31, 2004.  Notwithstanding the preceding sentences, if a Participant is entitled to a benefit under the Agents Pension Plan, the amount of retirement benefit earned under paragraph (a) of the preceding sentence or determined under paragraph (b) of the preceding sentence for such Participant shall not take into account such Participant’s period of employment used to determine his benefit under the Agents Pension Plan.

 

The amount of any Post-409A Benefits paid to a Participant shall be determined on the Plan Payment Date for Post-409A Benefits using the lump sum death benefit calculation methodology described in Section E.6.(A)(1) of the Retirement Plan for final average pay benefits or Section 3.8(A) of the Retirement Plan for cash balance benefits, as applicable, and the lump sum methodology and actuarial methods in effect under the Retirement Plan.

 

The amount of any Post-409A Benefits paid to a Beneficiary shall be determined on the death benefit payment date for Post-409A Benefits using the lump sum death benefit provisions contained in Section E.6. of the Retirement Plan for final average pay benefits or Section 3.8(A) of the Retirement Plan for cash balance benefits, as applicable, and the lump sum methodology and actuarial methods in effect under the Retirement Plan.

 

Notwithstanding the foregoing, the lump sum interest rate and mortality table applicable to Participants who separate from service or die on or after age 55 after November 30, 2009 with a Plan Payment Date for Post-409A Benefits in the first six months of a calendar year shall be the applicable lump sum interest rate and mortality table under the Retirement Plan during the year prior to the Plan Payment Date for Post-409A Benefits.  The lump sum interest rate and mortality

 

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table applicable to Participants who separate from service or die on or after age 55 after November 30, 2009 with a Plan Payment Date for Post-409A Benefits in the last six months of a calendar year shall be the applicable lump sum interest rate and mortality table under the Retirement Plan during the year in which the Plan Payment Date for Post-409A Benefits occurs.

 

SECTION 4

 

Payment of Benefits1

 

4.1.                        Form and Time of Payment for Pre-409A Benefits and Post-409A Benefits.  All Pre-409A Benefits shall be paid in a single lump sum on the Plan Payment Date for Pre-409A Benefits, except (i) upon demonstrating a Hardship to the Committee, Pre-409A Benefits may be paid after the Participant’s Payment Start Date and before the January 1 first following the day preceding the Participant’s Plan Payment Date for Pre-409A Benefits; or (ii) if a Participant or Beneficiary should die prior to receipt of Pre-409A Benefits, such benefits shall be paid in a lump sum as soon as practicable thereafter to the estate of such Participant or Beneficiary. Notwithstanding the foregoing, Participants receiving Required Distributions from the Retirement Plan will receive their Pre-409A Benefits at the same time their Retirement Plan Benefits commence.  All Post-409A Benefits shall be paid in a single lump sum on the Plan Payment Date for Post-409A Benefits.

 

4.2.                        Facility of Payment.  Any amount payable under the Plan to a person under legal disability or who, in the judgment of the Committee, is unable to properly manage his financial affairs, may be paid to such person’s legal representative, or may be applied for the benefit of such person in any manner selected by the Committee.

 

4.3.                        Review of Benefit Determinations.  The Committee will provide notice in writing to any Participant or Beneficiary whose claim for benefits under the Plan is denied and the Committee shall afford such Participant or Beneficiary a full and fair review of its decision if so requested.

 

4.4.                        Payment and Funding of Benefits.  Amounts payable under the Plan to or on account of a Participant shall be paid directly by the Employers, and shall be provided from the general assets of the Employers.  No assets of the Employers shall be set aside solely for the purpose of providing benefits hereunder, and the Employers’ obligation to pay such benefits is not limited to any particular assets of the Employer.  Benefits under the Plan are not funded, the Employers’ obligation to pay such benefits is merely a contractual obligation, and a Participant or Beneficiary shall be treated as a general creditor of the Employers with respect to any benefits payable under the Plan.

 

 

1  See Appendix A for Payment of Benefit information for Participants with a Plan Payment Date on or before January 1, 1996 or for Participants who retired under the Allstate Insurance Company’s 1994 Special Retirement Opportunity.

 

6

 

SECTION 5

 

Miscellaneous

 

5.1.                        Action by Company.  Any action required or permitted to be taken by the Company under the Plan shall be by resolution of its Board of Directors, by resolution of a duly authorized committee of its Board of Directors, or by a person or persons authorized by resolution of its Board of Directors or such committee.

 

5.2.                        Gender and Number.  Where the context admits, words in the masculine gender shall include the feminine and neuter genders, the singular shall include the plural, and plural shall include the singular.

 

5.3.                        Controlling Law.  Except to the extent superseded by laws of the United States, the laws of Illinois shall be controlling in all matters relating to the Plan.

 

5.4.                        Employment Rights.  The Plan does not constitute a contract of employment, and participation in the Plan will not give any employee the right to be retained in the employ of an Employer, nor any right or claim to any benefit under the Plan, unless such right or claim has specifically accrued under the terms of the Plan.

 

5.5.                        Interests Not Transferable.  The interests of persons entitled to benefits under the Plan are not subject to their debts or other obligations and, except as may be required by the tax withholding provisions of the Code or any state’s income tax act, may not be voluntarily or involuntarily sold, transferred, alienated, assigned or encumbered.

 

5.6.                        Successors.  The Plan is binding on all persons entitled to benefits hereunder and their respective heirs and legal representatives, and on the Employers and their successors and assigns.

 

5.7                            Statute of Limitations.  No legal or equitable action involving the Plan may be commenced later than two years from the time the person bringing the action knew, or had reason to know, of the circumstances giving rise to the action.  This provision shall not be interpreted to extend any otherwise applicable statute of limitations, nor to bar the Plan from recovering overpayments of benefits or other amounts incorrectly paid to any person under the Plan at any time or bringing any legal or equitable action against any party.

 

5.8                            Forum for Legal Actions.  Any legal or equitable action involving the Plan that is brought by any Participant, any beneficiary or any other person shall be litigated in the federal courts located in the Northern District of Illinois and no other federal or state court.

 

7

 

5.9                            Legal Fees.  Any award of legal fees against the Plan, the Administrative Committee or any member thereof, the Pension Committee or any member thereof, the Board of Directors or any member thereof, any Employer, any of their respective affiliates, officers, directors, employees, or agents (collectively, the “Plan Parties”) in connection with an action involving the Plan shall be calculated pursuant to a method that results in the lowest amount of fees being paid, which amount shall be no more than the amount that is reasonable.  In no event shall legal fees be awarded against Plan Parties for work related to (a) administrative proceedings under the Plan or (b) unsuccessful claims brought by a Participant, beneficiary or any other person.  In calculating any award of legal fees, there shall be no enhancement for the risk of contingency, nonpayment or any other risk nor shall there be applied a contingency multiplier or any other multiplier.  In any action brought by a Participant, beneficiary or any other person against Plan Parties, legal fees of the Plan Parties in connection with such action shall be paid by the Participant, beneficiary or other person bringing the action, unless the court specifically finds that (a) there was a reasonable basis for the action and (b) the action was brought in good faith.

 

5.10                    Severability.  If a provision of the Plan, including any provision of an amendment to the Plan, shall be held illegal or invalid, 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 in the Plan.

 

 

SECTION 6

 

Amendment and Termination

 

The Company reserves the right at any time and from time to time to amend or terminate the Plan in accordance with the procedures set forth in Section 5.1.  Notwithstanding the foregoing, no amendment or termination of this Plan with respect to Post-409 Benefits shall be made in accordance with this Section 6 unless such termination or amendment complies with Code Section 409A.

 

 

 

Except as set forth herein, the Plan shall remain in full force and effect.

 

Executed this 11th day of July, 2013.

 

	
 
    	
Pension Committee
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/James D. DeVries
    	
 
    
	
 
    	
Name:
    	
James D. DeVries
    	
 
    
	
 
    	
Title:
    	
Executive Vice   President and Chief Administrative Officer of Allstate Insurance Company
    
						

 

8

 

Appendix A

 

Payment of Benefits

Plan Payment Date on or Before January 1, 1996 or Special Retirement Opportunity Participants

 

A.1                        Normal Form of Payment for Pre-409A Benefits.  Except as provided in subsection 4.2, for Participants with a plan payment date on or before January 1, 1996 or Participants who retired under the Company’s 1994 Special Retirement Opportunity, benefits under the Plan shall be paid to a Participant (or in the case of his death, to his Beneficiary) monthly, commencing as of the earliest of (i) the Participant’s Payment Start Date or (ii) the date 60 days following Participant’s Date of Death (or the date the Committee receives notification of the Participant’s death, if more than 7 days after Participant’s Date of Death) and continuing during his lifetime (or the lifetime of his Beneficiary), with the last payment to be made for the month in which the Participant’s or Beneficiary’s death occurs.  For purposes of this Appendix A, “plan payment date” means the day following the date on which the Retirement Plan becomes obligated to pay a Participant’s benefits.

 

A.2.                    Optional Forms of Payment for Pre-409A Benefits.  In lieu of the form and amount of benefit specified in subsection A.1, a Participant with a plan payment date on or before January 1, 1996 or who retired under the Company’s 1994 Special Retirement Opportunity (or in the case of his death, his Beneficiary) may elect (in accordance with subsection A.4) a benefit in such other form as then would be available to such Participant or Beneficiary under the Retirement Plan.  The actuarial rates, factors and assumptions used to determine the amount of optional forms of benefit under the Retirement Plan shall be used to calculate the amount of optional forms of payment under this Plan.

 

A.3.                    Time of Payment for Pre-409A Benefits.  For Participants with a Plan Payment Date on or before January 1, 1996 or Participants who retired under the Company’s 1994 Special Retirement Opportunity, benefits under the Plan shall be paid as of the earliest of (i) the Participant’s Payment Start Date or (ii) the date 60 days following Participant’s Date of Death (or the date the Committee receives notification of the Participant’s death, if more than 7 days after Participant’s Date of Death).  Notwithstanding the foregoing, a Participant with a Plan Payment Date on or before January 1, 1996 or who retired under the Company’s 1994 Special Retirement Opportunity (or in the case of his death, his Beneficiary) may elect (in accordance with subsection A.4) to defer payment of any lump sum benefits (elected under subsection A.2, if available) to the first or second January 1 next following his Plan Payment Date.  If a Participant or Beneficiary elects to defer payment of benefits under this subsection A.3, simple interest (at the post-1990 PBGC rate used to calculate the participant’s lump sum, or such other rate as may be used by the Retirement Plan) shall be added to such benefits, to the date of payment.  If a Participant or Beneficiary who elects to defer payment of benefits under this subsection 4.3 should die prior to receipt of payment, such benefits shall be paid in a lump sum as soon as practicable thereafter to the estate of such Participant or Beneficiary.

 

A-1

 

A.4.                    Pre-409A Benefit Payment Elections.  For Participants with a plan payment date on or before January 1, 1996 or Participants who retired under the Company’s 1994 Special Retirement Opportunity, except as otherwise provided below, elections of an optional form of payment under subsection 4.2 and elections to defer payment under subsection 4.4 shall be irrevocable, must be in writing, and must be filed with the Committee at least 30 days prior to the Participant’s plan payment date or, in the case of an election by a Beneficiary, at any time prior to the date 60 days following Participant’s Date of Death (or the date the Committee receives notification of the Participant’s death, if more than 7 days after Participant’s Date of Death).  Notwithstanding the foregoing, (i) if a Participant is retiring by mutual agreement with the Company in less than 30 days, and the date of the Participant’s retirement is outside his control, the Participant’s election may be made at any time prior to his plan payment date; and (ii) elections by a Participant who retires after December 31, 1994 under the Company’s 1994 Special Retirement Opportunity must be filed with the Committee on or before the December 31 of the year prior to their plan payment date for Pre-409A Benefits.

 

A.5.                    Special Election to Commute Pre-409A Benefit Payments.  Notwithstanding any other provision of the Plan, a Participant or Beneficiary who is receiving periodic benefit payments under the Plan on account of a Participant who terminated employment prior to October 1, 1994 may elect (as provided below) to have the remaining unpaid balance of such payments as of December 30, 1994 paid in a lump sum as soon as practicable after January 1, 1995.  Each election under this subsection A.5 shall be irrevocable, must be in writing, and must be filed with the Committee on or before December 31, 1994.  The actuarial rates, factors and assumptions used to determine lump sum payments under the Retirement Plan as of December 30, 1994 shall be used to calculate lump sum payments under this subsection A.5.

 

A-2

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