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Exhibit 10.4  

THE ALLSTATE CORPORATION  

 
  DEFERRED COMPENSATION PLAN
  
    AMENDED AND RESTATED AS OF NOVEMBER 1, 2000    
  

ARTICLE I

DESIGNATION OF PLAN AND DEFINITIONS  

	1.1
	TITLE 

This
Plan shall be known as "The Allstate Corporation Deferred Compensation Plan." The Plan was adopted by Allstate Insurance Company effective January 1, 1995. The Plan was amended and
restated by the Company, effective January 1, 1996, November 11, 1997, September 1, 1999 and November 1, 2000. 

	1.2
	DEFINITIONS

The
following definitions will apply: 

	(a)
	"Account"
shall mean the bookkeeping entries made to state the balance of Compensation deferred by a Participant under the Plan, as adjusted pursuant to Article IV of the
Plan. For purposes of this Plan, "Account" shall include any amounts deferred by a Participant, as adjusted for earnings and debits, under The Allstate Corporation Deferred Compensation Plan for
Employee Agents and The Allstate Corporation Deferred Compensation Plan for Independent Contractor Exclusive Agents.

	(b)
	"Beneficiary"
or "Contingent Beneficiary" shall mean the person or persons last designated in writing by the Participant to the Committee, in accordance with Section 8.5 of
this Plan.

	(c)
	"Board"
shall mean the Board of Directors of the Company.

	(d)
	"Code"
shall mean the Internal Revenue Code of 1986, as amended from time to time.

	(e)
	"Committee"
shall mean the Committee appointed by the Board of Directors pursuant to Article VI of this Plan, and shall mean those persons to whom the Committee has delegated
administrative duties pursuant to Section 6.1(g).

	(f)
	"Company"
shall mean The Allstate Corporation.

	(g)
	"Compensation"
shall mean all of the items included in the term "Annual Compensation" as that term is defined in the Allstate Retirement Plan without regard to the annual
compensation limit imposed by Section 401(a)(17) of the Code.

	(h)
	"Compensation
Floor" shall be the compensation limit in effect pursuant to Section 401(a)(17) of the Code for a Plan Year. 

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	(i)
	"Controlled
Group" shall mean any corporation or other business entity which is included in a controlled group of corporations, within the meaning of
section 1563(a)(i) of the Code, within which the Company is also included.

	(j)
	"Eligible
Compensation" shall mean (i) an Employee's Compensation through October 31 of the calendar year immediately preceding a Plan Year, plus two times the
Employee's base salary for the month of October of the calendar year immediately preceding the Plan Year; or (ii) an Employee's Compensation for the calendar year two years before a Plan Year.

	(k)
	"Eligible
Employee" shall mean any Employee who is eligible to participate under Article II of this Plan.

	(l)
	"Eligible
Salary" shall mean an Employee's base salary in October of the calendar year immediately preceding a Plan Year, multiplied by 12.

	(m)
	"Employee"
shall mean any regular, full-time employee of the Company, of Allstate Insurance Company, of Allstate New Jersey Insurance Company, of Allstate Federal
Savings Bank or of any other affiliate in the Controlled Group which adopts the Plan, but shall in no event include persons classified as agents.

	(n)
	"Hardship"
shall mean severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident of the Participant or of a dependent (as defined in
section 152(a) of the Code) of the Participant, or loss of the Participant's property due to casualty, or similar extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Participant.

	(o)
	"Incentive
"shall mean the amount actually payable to a Participant under an annual cash incentive program sponsored by the Company, Allstate Insurance Company, Allstate New Jersey
Insurance Company or any other member of the Controlled Group which adopts the Plan.

	(p)
	"Investment"
shall mean the elections made by Participants to make allocations and reallocations of deferrals and Account balances among the subaccounts described in
Section 4.3(b), together with accruals and adjustments reflecting the hypothetical experience of the subaccounts.

	(q)
	"Participant"
shall mean an Eligible Employee participating in the Plan in accordance with Article II hereof.

	(r)
	"Plan"
shall mean The Allstate Corporation Deferred Compensation Plan as set forth herein, and as amended from time to time in accordance with Article VII hereof.

	(s)
	"Plan
Year" shall mean the fiscal year of the Company, which is a calendar year, for which eligibility is determined.

	(t)
	"Separation
from Service" means the termination of a Participant's employment with any company in the Controlled Group for any reason whatsoever, including retirement, resignation,
dismissal or death, but does not include a transfer of status to an employee insurance agent or as an Exclusive Agent Independent Contractor or Exclusive Financial Specialist Independent Contractor
for a member of the Controlled 

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Group.
"Separation from Service" shall also mean the subsequent termination of any Exclusive Agent Independent Contractor or Exclusive Financial Specialist Independent Contractor agreement, unless
such termination results from acceptance of employment with any member of the Controlled Group. 

ARTICLE II

PARTICIPATION  

	2.1
	ELIGIBILITY 

An
Employee shall be an Eligible Employee if his Eligible Compensation or his Eligible Salary is equal to or in excess of the Compensation Floor for the Plan Year. 

	2.2
	NOTICE
OF ELIGIBILITY 

The
Committee shall notify each Eligible Employee no later than 30 days prior to the first business day of any Plan Year or as soon thereafter as practicable, that he/she is entitled to become
a Participant in the Plan for such Plan Year. 

	2.3
	PARTICIPATION
ELECTION

	(a)
	Each
Eligible Employee may elect, in accordance with procedures and during the time frames established by the Committee, to become a Participant in the Plan for a Plan Year. The
election must be received by the Committee no later than the last business day of the preceding calendar year, and shall specify the percentage of base salary and/or Incentive to be deferred during
the Plan Year. A Participant may not change his/her deferral election for the Plan Year after the Plan Year has commenced. However, a Participant may at any time irrevocably elect to suspend
participation in the Plan for the remainder of a Plan Year, but only as to future deferrals of salary.

	(b)
	Any
person who the Committee determines to be an Eligible Employee in the Plan Year in which he/she first becomes an Employee shall be provided an opportunity within 30 days
of employment to participate in the Plan for that Plan Year. 

ARTICLE III

DEFERRALS  

	3.1
	AMOUNT
OF DEFERRAL

	(a)
	Each
Participant may elect to defer, in whole number percentages, up to 80% of base salary for the Plan Year. No deferrals of base salary will be recognized until Compensation in
the Plan Year reaches the Compensation Floor for the Plan Year.

	(b)
	Each
Participant may elect to defer, in whole number percentages, up to 100% of the Incentive actually payable in the Plan Year.

	(c)
	Deferrals
shall be recognized only after the Compensation Floor for the Plan Year has been reached, and only after all other deductions required by federal or state law or 

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elected
by the Participant have been withheld. Deferrals may be reduced by the Committee to the extent necessary to permit required or elected withholdings. 

	(d)
	Except
as provided in Section 3.1(e), if a Participant has elected to defer Compensation for a Plan Year which would otherwise be includible in the calculation of the
Participant's pension benefit under the Allstate Retirement Plan or the Agents Pension Plan for such Plan Year the Company shall, prior to the end of such Plan Year, refund such excess deferral to the
Participant.

	(e)
	To
the extent a Participant is on leave of absence for all or part of the Plan Year, and the Participant's Compensation less any amounts deferred is less than the Compensation Floor
for such year, the Company shall, prior to the end of such Plan Year, pay the Participant the lesser of:

	(1)
	The
amount deferred during the year; or

	(2)
	The
difference between (i) the Compensation Floor and (ii) the amount of the Participant's Compensation less the amount the Participant deferred. 

	3.2
	EFFECTIVE
DATE OF DEFERRAL 

Compensation
deferred shall be credited to a Participant's Account by bookkeeping entry as set forth in Section 4.2. 

	3.3
	USE
OF AMOUNTS DEFERRED 

Amounts
credited to Accounts shall be a part of the general funds of the Company, shall be subject to all the risks of the Company's business, and may be deposited, invested or expended in any manner
whatsoever by the Company. 

ARTICLE IV

ACCOUNTS AND VESTING  

	4.1
	ESTABLISHMENT
OF ACCOUNT 

The
Committee shall establish, by bookkeeping entry on the books of the Company, an Account for each Participant. Accounts shall not be funded in any manner. 

	4.2
	CONTRIBUTIONS
TO ACCOUNT 

The
Committee shall cause deferred Compensation to be credited by bookkeeping entry to each Participant's Account as of the day in which the Compensation otherwise would have been payable to the
Participant, or as soon thereafter as is administratively practicable. 

	4.3
	MAINTENANCE
OF ACCOUNT BALANCES—SUBACCOUNT ELECTIONS

	(a)
	Investment
of deferrals shall be made among one or more of the Subaccounts described in Section 4.3(b). Each Investment shall be made in accordance with 

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procedures
established by the Committee and shall specify that portion of the Participant's deferrals on the date of such election to be invested in each Subaccount. In its sole discretion, the
Committee may withhold one or more of the Subaccounts from Investment by Participants for a Plan Year or Years. Investments of deferrals and reallocations of existing Account balances must be made in
whole percentage increments of the deferrals and reallocations. 

Each
Account shall be adjusted, as applicable, to apply credits for contributions, interest, dividend equivalents and other earnings and to apply debits for Plan administration and investment
expenses, for losses and for distributions. All such adjustments shall be bookkeeping entries reflecting hypothetical experience for the Subaccounts in which Investments are made. 

	(b)
	The
Subaccounts in which Investments may be made are:

	(1)
	Subaccount
#1—SSgATM Short Term Investment Fund—a diversified portfolio of short term fixed-income
securities managed by State Street Global Advisors (SSgATM). The fund's objective is to maximize current income while preserving capital and liquidity. The fund's yield reflects
short-term interest rates.

	(2)
	Subaccount
#2—SSgATM Bond Market Index Fund Series A—a collective fund of fixed -income
securities managed by State Street Global Advisors (SSgATM). The fund invests in U.S. Treasury, agency, corporate, mortgage-backed, and asset-backed debt securities. The fund's objective is
to match the total rate of return of the Lehman Aggregate Bond Index, a broad-based domestic bond index composed of more than 5,000 debt securities with all securities having an average life of at
least one year. The rate of return on the Bond Fund is influenced by, among other things, changes in interest rates, the market price of bonds and the financial stability of the issuers.

	(3)
	Subaccount
#3—SSgATM S&P 5001 Flagship Fund Series A—a collective fund
managed by State Street Global Advisors (SSgATM), which invests in a diversified portfolio of stocks in a broad array of large, established companies. The fund's objective is to match the
total rate of return of the Standard & Poor's (S&P) 500 Index1, which consists of 500 stocks chosen for market size, liquidity and industry group representation. SSgATM
replicates the index by purchasing all 500 component equities in the appropriate market-value weighted proportions. The rate of return on the S&P
5001Fund is influenced by the market price and dividends of the stocks held in the fund.

	(4)
	Subaccount
#4—Daily EAFE Fund Series A—a fund, managed by State Street Global Advisors
(SSgATM), which invests in a diversified portfolio of stocks outside of North and South America. The fund's objective is to match the total rate of returns and characteristics of the Morgan
Stanley Capital International 

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(MSCI)
Europe, Australia, Far East (EAFE) Index. The index consists of more than 1,100 stocks in over 20 countries outside of North and South America and represents approximately 60% of the total
market capitalization in those countries. SSgATM employs an index replication approach to construct a fund whose return tracks the MSCI EAFE Index. The rate of return on the International
Equity Fund is influenced by the market price of the stocks held in the fund, dividends and other income and foreign currency exchange rates. 

	(5)
	Subaccount
#5—SSgATM Russell 2000 Fund Series A—a collective fund managed by State Street
Global Advisors (SSgATM), which invests in a diversified portfolio of small capitalized U.S. stocks. The fund's objective is to match the total rate of returns and characteristics of the
Russell 2000 Index, which consists of the smallest 2000 U.S. securities in the Russell 3000 Index. SSgATM employs an index replication approach to construct a fund whose return tracks the
Russell 2000 index. The rate of return on the Russell 2000 Fund is influenced by the market price and dividends of the stocks held in the fund. 

	(c)
	A
Participant may, in accordance with procedures established by the Committee, change his Subaccount investment elections daily regarding existing Account balances and future
contributions. If an election is received by the close of the New York Stock Exchange on a business day, it will be effective as of the next business day. 

	4.4
	VESTING

A
Participant shall be fully vested in his/her Account at all times, subject to Sections 3.3 and 8.2. 

ARTICLE V

PAYMENTS  

	5.1
	EVENTS
CAUSING ACCOUNTS TO BECOME DISTRIBUTABLE

	(a)
	A
Participant's Account shall become distributable upon notification to the Plan of the Participant's Separation from Service or, at the election of the Participant pursuant to
Section 5.4, in one of the first through fifth years after Separation from Service. In either event, the Participant may elect to receive payment in a lump sum or in annual installments as
provided in Section 5.3.

	(b)
	That
portion of a Participant's Account determined to be necessary to alleviate a demonstrated Hardship shall become distributable upon the date of such determination, subject to
Section 5.2, and such determination shall be subject to the suspension of deferrals in the Plan by the Participant for the remainder of the Plan Year and for the next succeeding Plan Year. 

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	(c)
	A
Participant may make an irrevocable election prior to September 1, 1999, to receive a distribution as of the first day of any Plan Year prior to Separation from Service,
provided such date occurs subsequent to the Plan Year in which the Participant first participates in this Plan and at least three years after the date the Participant makes an election pursuant to
this Section 5.1(d). In such case, that portion of the Participant's Account attributable to Compensation deferred, and accruals thereon, after the Committee receives such election shall become
distributable on the date elected. Any balance in the Participant's Account remaining after any payment under this paragraph and any balance in the Account attributable to participation in the Plan in
any year subsequent to the year in which a payout on such date certain occurs, shall become distributable to the Participant as provided in paragraphs (a), (b) or (d) of this Section.

	(d)
	Effective
September 1, 1999, a Participant may at any time irrevocably elect to receive distribution of his/her entire Account balance, subject to the forfeiture to the
Company of 10% of such Account balance and subject to termination of participation in the Plan by the Participant for the remainder of the Plan Year and for the next succeeding Plan Year. The
Participant's Account balance shall become distributable subject to Section 5.2 following the date of such election.

	(e)
	In
the event of a Participant's death prior to distribution of his/her entire Account balance, the remaining Account balance shall become distributable following the date on which
all events have occurred which entitle the Beneficiary or Beneficiaries to payment. 

	5.2
	NOTICE
OF ACCOUNT PAYMENT AND COMMENCEMENT OF DISTRIBUTION 

The
Committee or its appointed representative shall notify a Participant or Beneficiary, as the case may be, as soon as practicable after the first day of the month next following the date on which
the Account becomes distributable, that he/she is entitled to receive payment from an Account, the balance of which shall be computed as of the close of business on the last day of the month in which
the Account becomes distributable. Distribution of Account balances shall commence as soon as practicable after the first day of the month next following the date on which the Account becomes
distributable. 

	5.3
	FORM
OF PAYMENT

	(a)
	Except
as provided in paragraphs (c) and (d) of this Section 5.3 and Article VIII hereof, payments of Account balances to a Participant shall be in the
form of one lump sum payment or annual cash installment payments over a period of from 2 to 10 years, at the election of the Participant.

	(b)
	The
amount of each annual installment payable to a Participant who has elected to receive installment payments shall be as follows: The first annual installment payment shall, for a
Participant who has elected to receive installment payments commencing upon his/her Separation from Service, be computed as of the close of business on the last day of the month in which the Account
becomes distributable, and the amount of such payment shall equal his/her Account balance as of such date, divided by the number of installments including the one being paid. The first annual 

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installment
payment shall, for a Participant who has elected to receive installment payments commencing in one of the first through fifth years after Separation from Service, be computed as of the
close of the first business day of the year preceding the year in which the Account balance becomes distributable, and the amount of such payment shall equal his/her Account balance as of such date,
divided by the number of installments including the one being paid. Each subsequent installment payment shall be computed as of the close of the last business day of the year thereafter, and the
amount of each subsequent payment shall equal his/her remaining Account balance, divided by the number of remaining installments including the one being paid.  Interest accruals and
other adjustments shall continue with respect to the entire unpaid Account balance, as provided in Section 4.3. 

	(c)
	In
the event of a Participant's death prior to distribution of his/her entire Account balance, the remaining Account balance shall be paid in a lump-sum to the
Participant's Beneficiary or Beneficiaries, as soon as practicable after the date on which the Account balance shall become distributable pursuant to Section 5.1(e).

	(d)
	Notwithstanding
the provisions of paragraph (b) above, if the remaining unpaid Account balance is $5,000 or less on any date an annual installment payment is to be made to a
Participant, the payment shall be the remaining unpaid Account balance. 

	5.4
	DISTRIBUTION
ELECTION

	(a)
	Each
Participant shall elect his/her desired form of payment, in accordance with procedures established by the Committee, at the time of his/her initial participation election set
forth in Section 2.3.

	(b)
	Except
for distribution elections under Section 5.1(c) and (d), each Participant may from time to time revise the terms of distribution of the Participants Accounts, in
accordance with the procedures established by the Committee, provided that (i) the revised notice of the desired form of payment shall be made by the Participant no less than twelve months
prior to the date on which payment is to commence, but in any event no later than the day before the date of the Participant's Separation from Service and (ii) in any event, distribution of the
Participant's Account shall not commence earlier than twelve months after the Participant's revised notice of the desired form of payment is made. 

ARTICLE VI

ADMINISTRATION  

	6.1
	GENERAL
ADMINISTRATION; RIGHTS AND DUTIES 

The
Board shall appoint the Committee, which, subject to the express limitations of the Plan, shall be charged with the general administration of the Plan on behalf of the Participants. The Committee
shall also be responsible for carrying out its provisions, and shall have all powers necessary to accomplish those purposes, including, but not by way of limitation, the following: 

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	(a)
	To
construe and interpret the Plan;

	(b)
	To
compute the amount of benefits payable to Participants;

	(c)
	To
authorize all disbursements by the Company of Account balances pursuant to the Plan;

	(d)
	To
maintain all the necessary records for the administration of the Plan;

	(e)
	To
make and publish rules for administration and interpretation of the Plan and the transaction of its business;

	(f)
	To
inform each Participant as soon as practicable after the end of each calendar quarter of the value of the Participant's Account as of the end of such calendar quarter;

	(g)
	To
delegate the administration of the Plan in accordance with its terms to officers or employees of the Company, of Allstate Insurance Company or of an independent consultant
retained by the Committee who the Committee believes to be reliable and competent. The Committee may authorize officers or employees of the Company or of Allstate Insurance Company to whom it has
delegated duties under the Plan to appoint other persons to assist the delegate in administering the Plan; and

	(h)
	To
refuse to accept the deferral of amounts the Committee or its delegate considers too small to be administratively feasible. 

The
determination of the Committee as to any disputed question or controversy shall be conclusive. 

ARTICLE VII

PLAN AMENDMENTS AND TERMINATION  

	7.1
	AMENDMENTS

The
Company shall have the right to amend this Plan from time to time by resolutions of the Board or by the Committee, and to amend or rescind any such amendments; provided, however, that no action
under this Section 7.1 shall in any way reduce the amount of Compensation deferred or any accruals or other adjustments provided in section 4.3 up to and including the end of the month
in which such action is taken. Interest will continue to accrue as provided in Section 4.3. All amendments shall be in writing and shall be effective as provided subject to the limitations in
this Section 7.1. 

	7.2
	TERMINATION
OF PLAN 

Although
the Company expects that this Plan will continue indefinitely, continuance of this Plan is not a contractual or other obligation of the Company, and the Company expressly reserves its right
to discontinue this plan at any time by resolutions of the Board, effective as provided by the Board in such resolutions. However, no such action shall in any way reduce the amount of Compensation
deferred or any accruals thereon, up 

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to and including the end of the month in which such action is taken. Accruals to Accounts shall continue until distribution as provided in Section 4.3. 

ARTICLE VIII

MISCELLANEOUS  

	8.1
	NOTIFICATION
TO COMMITTEE 

Any
election made or notification given by a Participant pursuant to this Plan shall be made in accordance with procedures established by the Committee or its designated representative, and shall be
deemed to have been made or given on the date received by the Committee or such representative. 

	8.2
	PARTICIPANT'S
EMPLOYMENT 

Participation
in this Plan shall not give any Participant the right to be retained in the employ of the Company, Allstate Insurance Company of any member of the Controlled Group, or any right or
interest other than as herein provided. No Participant or Employee shall have any right to any payment or benefit hereunder except to the extent provided in this Plan. The members of the Controlled
Group expressly reserve the right to dismiss any Participant without any liability for any claim against them, except to the extent expressly provided herein. 

	8.3
	STATUS
OF PARTICIPANTS 

This
Plan shall create only a contractual obligation on the part of the Company and shall not be construed as creating a trust or other fiduciary relationship with Participants. Participants will have
only the rights of general unsecured creditors of the Company with respect to Compensation deferred and interest credited to their Accounts. 

	8.4
	OTHER
PLANS 

This
Plan shall not affect the right of any Employee or Participant to participate in and receive benefits under and in accordance with the provisions of any other Company plans which are now or may
hereafter be in existence. 

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	8.5
	BENEFICIARIES
AND CONTINGENT BENEFICIARIES

	(a)
	Each
Participant shall, in accordance with procedures established by the Committee, designate one or more persons or entities (including a trust or trusts or his/her estate) to
receive any balance in his/her Account, including accruals thereon, payable to him/her under this Plan in the event of his/her death prior to full payment thereof. The Participant may also designate a
person or persons as a Contingent Beneficiary or Contingent Beneficiaries who shall succeed to the rights of the person or persons originally designated as Beneficiary or Beneficiaries, in case the
latter should die. He/she may from time to time change any designation of Beneficiary or Contingent Beneficiary so made, and the last valid designation given by him/her to the Committee shall be
controlling. 

In
the event a Participant designates a person other than his/her spouse as Beneficiary of any interests under this Plan, the Participant's spouse shall sign a notarized statement specifically
approving such designation and authorizing the Committee to make payment of such interests in the manner provided in such designation. 

	(b)
	In
the absence of such designation by the Participant, or in the absence of spousal approval and authorization as herein above provided, or in the event of the death prior to or
simultaneous with the death of the Participant, of all Beneficiaries or Contingent Beneficiaries, as the case may be, to whom payments were to be made pursuant to a designation by the Participant,
such payments or any balance thereof shall be paid to the Participant's spouse or, if there is no surviving spouse, to the Participant's descendants, including adopted children (distributed in equal
shares) or, if there are no surviving descendants, to the Participant's parents (distributed in equal shares) or, if there are no surviving parents, to the Participant's sisters and brothers
(distributed in equal shares) or, if there are none, to the estate of the Participant.

	(c)
	In
the event of the death, subsequent to the death of the Participant, of all Beneficiaries or Contingent Beneficiaries, as the case may be, to whom such payments were to be made or
were being made pursuant to a designation under this section, such payments or any balance thereof shall be paid to the estate of such Beneficiaries or Contingent Beneficiaries. 

	8.6
	TAXES
AND OTHER CHARGES 

To
the extent permitted by law, if the whole or any part of a Participant's Account shall become the subject of any estate, inheritance, income or other tax or other charge which the Company shall
legally be required to withhold and/or pay, the Company shall have full power and authority to pay such tax or other charge out of any monies or other property in its hands and charge such amounts
paid against the Account of the Participant whose interest hereunder is subject to such tax or other charge. Prior to making any such payment, the Company may require such releases or other documents
from any lawful authority as the Company shall deem necessary. 

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	8.7
	BENEFITS
NOT ASSIGNABLE; OBLIGATIONS BINDING UPON SUCCESSORS 

Benefits
under this Plan and rights to receive the amounts credited to the Account of a Participant shall not be assignable or transferable and any purported transfer, assignment, pledge or other
encumbrance or attachment of any payments or benefits under this Plan, other than by operation of law, shall not be permitted or recognized. Obligations of the Company under this Plan shall be binding
upon successors of the Company. 

	8.8
	ILLINOIS
LAW GOVERNS; SAVING CLAUSE 

The
validity of this Plan or any of its provisions shall be construed and governed in all respects under and by the laws of the State of Illinois. If any provisions of this Plan shall be held by a
court of competent jurisdiction to be invalid or unenforceable, the remaining provisions hereof shall continue to be fully effective. 

	8.9
	HEADINGS
NOT PART OF PLAN 

Headings
and subheadings in this Plan are inserted for reference only, and are not to be considered in the construction of the provisions hereof. 

	(1)
	Standard & Poor's®, S&P®, S&P 500 Index and Standard &
Poor's 500 Index are trademarks of Standard & Poor's Corporation (S&P) and have been licensed for use by State Street Bank and Trust Company. The product
is not sponsored, endorsed, listed, sold or promoted by S&P, and S&P makes no representation regarding the advisability of investing in this product. 

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DEFERRED COMPENSATION PLAN AMENDED AND RESTATED AS OF NOVEMBER 1, 2000Prepared by MERRILL CORPORATION www.edgaradvantage.com

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Exhibit 10.12  

THE ALLSTATE CORPORATION  

 
  EQUITY INCENTIVE PLAN FOR NON-EMPLOYEE DIRECTORS    
  

As Amended and Restated on September 18, 2000 effective as of June 1, 20011  

I.  Purpose.  

    The purpose of The Allstate Corporation Equity Incentive Plan for Non-Employee Directors (the
"Plan") is to promote the interests of The Allstate Corporation (the "Company") by providing an
inducement to obtain and retain the services of qualified persons as members of the Company's Board of Directors (the "Board") and to align more closely
the interests of such persons with the interests of the Company's stockholders by providing a significant portion of the compensation provided to such persons in the form of equity securities of the
Company. 

II.  Administration.  

    The Plan shall be administered by the Committee. The Committee shall have full power to construe and interpret the Plan and Shares and Options granted
hereunder, to establish and amend rules for its
administration and to correct any defect or omission and to reconcile any inconsistency in the Plan or in any Share or Option granted hereunder to the extent the Committee deems desirable to carry the
Plan or any Share or Option granted hereunder into effect. Any decisions of the Committee in the administration of the Plan shall be final and conclusive. The Committee may authorize any one or more
of its members, the secretary of the Committee or any officer of the Company to execute and deliver documents on behalf of the Committee. Each member of the Committee, and, to the extent provided by
the Committee, any other person to whom duties or powers shall be delegated in connection with the Plan, shall incur no liability with respect to any action taken or omitted to be taken in connection
with the Plan and shall be fully protected in relying in good faith upon the advice of counsel, to the fullest extent permitted under applicable law. 

III.  Eligibility.  

    Each Non-Employee Director shall be eligible to participate in the Plan. 

IV.  Limitation on Aggregate Shares.  

    A.  Maximum Number of Shares.  The aggregate maximum number of Shares that may be granted pursuant to the
Plan or delivered upon exercise of Options granted pursuant to the Plan shall be 580,000 shares. Such maximum number of Shares is subject to adjustment 

	1
	Until
June 1, 2001, the Plan as amended and restated as of November 10, 1998 shall remain in effect. 

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under
the provisions of Section IV.B. The Shares to be granted pursuant to the Plan or delivered upon exercise of Options may be either (i) authorized but unissued Shares or
(ii) Shares previously issued which have been reacquired by the Company ("Treasury Shares"); provided, however, that on or after June 1, 2001, only Treasury Shares shall be granted
pursuant to the Plan or delivered upon exercise of
Options (other than upon exercise of Options granted prior to such date). In the event any Option or Reload Option shall, for any reason, terminate or expire or be surrendered without having been
exercised in full, the Shares subject to such Option or Reload Option but not purchased thereunder shall be available for future Options or Reload Options to be granted under the Plan. 

    B.  Adjustment.  The maximum number of Shares referred to in Section IV.A of the Plan, the number
of Shares granted pursuant to Section VI of the Plan, the number of Options granted pursuant to Section VII of the Plan, and the option price and the number of Shares which may be
purchased under any outstanding Option granted under Section VII of the Plan shall be proportionately adjusted for any increase or decrease in the number of issued and outstanding Shares as the
result of (i) the declaration and payment of a dividend payable in Common Stock, or the division of the Common Stock outstanding at the date hereof (or the date of the grant of any such
outstanding Option, as applicable) into a greater number of Shares without the receipt of consideration therefor by the Company, or any other increase in the number of such Shares of the Company
outstanding at the date hereof (or the date of the grant of any such outstanding Option, as applicable) which is effective without the receipt of consideration therefor by the Company (exclusive of
any Shares granted by the Company to employees of the Company or any of its Subsidiaries without receipt of separate consideration by the Company), or (ii) the consolidation of the Shares
outstanding at the date hereof (or the date of the grant of any such outstanding Option, as applicable) into a smaller number of Shares without the payment of consideration thereof by the Company, or
any other decrease in the number of such Shares outstanding at the date hereof (or the date of the grant of any such outstanding Option, as applicable) effected without the payment of consideration by
the Company; provided, however, that the total option price for all Shares which may be purchased upon the exercise of any Option granted pursuant to
the Plan (computed by multiplying the number of Shares originally purchasable thereunder, reduced by the number of such Shares which have theretofore been purchased thereunder, by the original option
price per share before any of the adjustments herein provided for) shall not be changed. 

    In
the event of a change in the Common Stock as presently constituted which is limited to a change of the Company's authorized shares with a par value into the same number of shares
with a different par value or without par value, the shares resulting from any such change will be deemed to be the Common Stock within the meaning of this Plan and no adjustment will be required
pursuant to this Section IV.B. 

    The
foregoing adjustments shall be made by the Committee, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided in this
Section IV.B, a Non-Employee Director shall have no rights by reason of any subdivision or consolidation of shares of stock of any class or the payment of any stock dividend or any
other increase or decrease in the number of shares of stock of any class. 

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V.  Definitions.  

    The following terms shall have the meanings set forth below when used herein: 

    "Code" means the Internal Revenue Code of 1986, as amended. 

    "Committee" means the Compensation and Nominating Committee of the Board, any successor committee of the Board performing similar
functions or, in the absence of such a committee, the Board. 

    "Common Stock" means the Common Stock, par value $.01 per share, of the Company. 

    "Disability" means a mental or physical condition which, in the opinion of the Committee, renders a Non-Employee Director
unable or incompetent to carry out his or her duties as a member of the Board and which is expected to be permanent or for an indefinite duration. 

    "Election Shares" means any Shares issued to a Non-Employee Director pursuant to the election of such person to receive
such Shares in lieu of cash compensation made in accordance with Section VIII.B. 

    "ERISA" means the Employee Retirement Income Security Act of 1974, as amended. 

    "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

    "Fair Market Value" of any Share means, as of any applicable date, the mean between the high and low prices of the Shares as reported
on the New York Stock Exchange-Composite Tape, or if no such reported sale of the Shares shall have occurred on such date, on the next succeeding date on which there was such a reported sale. 

    "Initial Election Date" means, for each Non-Employee Director, the later to occur of (i) the date the Plan is
approved and adopted by the Company's stockholders pursuant to Section XIII of the Plan, and (ii) the date of such member's initial election or appointment to the Board. 

    "Non-Employee Director" means each member of the Board who is not an officer or employee of the Company or any of its
Subsidiaries. 

    "Option" means an option to purchase shares of Common Stock. 

    "Shares" means shares of Common Stock. 

    "Subsidiary" means any partnership, corporation, association, limited liability company, joint stock company, trust, joint venture,
unincorporated organization or other business entity of which (i) if a corporation, a majority of the total voting power of shares of stock entitled (without 

E-19

 

regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by the Company or one or
more of the other Subsidiaries of the Company or a combination thereof, or (ii) if a partnership, association, limited liability company, joint stock company, trust, joint venture,
unincorporated organization or other business entity, a majority of the partnership or other similar equity ownership interest thereof is at the time owned or controlled, directly or indirectly, by
the Company or one or more Subsidiaries of the Company or a combination thereof. For purposes hereof, the Company or a Subsidiary shall be deemed to have a majority ownership interest in a
partnership, association, limited liability company, joint stock company, trust, joint venture, unincorporated organization or other business entity if the Company or such Subsidiary shall be
allocated a majority of partnership, association, limited liability company, joint stock company, trust, joint venture, unincorporated organization or other business entity gains or losses or shall be
or control the managing director, the trustee, the manager or the general partner of such partnership, association, limited liability company, joint stock company, trust, joint venture, unincorporated
organization or other business entity. 

VI.  Formula Restricted Stock Grants for Non-Employee Directors.  

    A.  Annual Grant of Shares.  Beginning December 1, 1998, on December 1 of each year 1,000
Shares shall automatically be granted to each Non-Employee Director serving on the Board on such date who has served in such capacity since June 1 of such year. If any person
serving as a Non-Employee Director on June 1 of any year ceases to serve as a director of the Company prior to December 1 of such year, such director shall be automatically
granted on his or her last day of service a number of Shares equal to (i) 1,000 multiplied by (ii) a fraction, the numerator of which is
the number of full calendar months such Non-Employee Director has served on the Board during the period beginning on such June 1 and ending on such director's last date of service
and the denominator of which is 6. 

    B.  Grant for Newly Appointed Directors.  If after June 1, 1998 a Non-Employee
Director is initially elected or appointed to the Board effective on any date other than June 1, such Non-Employee Director shall automatically be granted, on the June 1
following the date he or she joins the Board (or such earlier date as he or she ceases to serve as a director), a number of Shares equal to (i) 1,000 multiplied
by (ii) a fraction, the numerator of which is the number of full calendar months such Non-Employee Director has served on the Board during the period
beginning on the date such director joined the Board and ending on the following May 31 (or such earlier date as he or she ceases to serve as a director) and the denominator of which is 6;
provided that such fraction shall in no event be greater than one. 

    C.  Rounding of Share Amounts.  To the extent that application of the foregoing formulas would result in
fractional Shares being issuable, such Non-Employee Director shall be granted a number of Shares equal to the nearest whole number of Shares. 

    D.  Payment for Estimated Taxes.  In addition, the Company shall pay to each Non-Employee
Director, in cash, as soon as practicable after each issuance of Shares pursuant to this 

E-20

 

Section VI, an amount equal to the estimated increase in such Non-Employee Director's federal, state and local tax liabilities as a result of such grant of Shares, assuming the
maximum statutory tax rates applicable to such Non-Employee Director. 

    E.  Restrictions.  The Non-Employee Directors shall have no rights as a shareholder with
respect to any Shares to be granted pursuant to this Section VI prior to the time such Shares are granted. Upon such grant, the Shares shall be represented by a stock certificate registered in
the name of the holder. The Shares granted pursuant to this Section VI shall be fully vested, but shall be subject to certain restrictions during the six month period following the date of
grant (the "Restriction Period"). The holder shall have the right to enjoy all shareholder rights during the Restriction Period (including the right to
vote the Shares and the right to receive any cash or other dividends paid in respect thereof) with the exception that (i) the holder may not sell, transfer, pledge or assign the Shares during
the Restriction Period, and (ii) the Company shall retain custody of the certificates representing the Shares during the Restriction Period. 

    All
restrictions shall lapse and the holder of the Shares shall be entitled to the delivery of a stock certificate or certificates representing the Shares (and to the removal of any
restrictive legend set forth on such certificates) upon the earliest of (i) six months from the date of grant of such Shares, (ii) the date of the holder's death or Disability, and
(iii) the date on which the holder is no longer serving as a director of the Company. 

VII.  Formula Stock Option Grants for Non-Employee Directors.  

    A.  Annual Grant of Options.  On June 1 of each year, beginning June 1, 2001, Options to
purchase 4,000 Shares shall automatically be granted to each Non-Employee Director serving on the Board on such date. If any such Non-Employee Director will be required to
retire (pursuant to the policies of the Board) during the 12 month period beginning on the date of any grant (or if any such Non-Employee Director has notified the Board that he or
she intends to resign from the Board for any reason during the 12 month period beginning on the date of any grant), such director shall instead be granted on June 1 of the relevant year
Options to purchase a number of Shares equal to (i) 4,000, multiplied by (ii) a fraction, the numerator of which is the number of full
calendar months such Non-Employee Director will serve on the Board during the period beginning on such June 1 and ending on such director's last date of service and the denominator
of which is 12. 

    B.  Grant for Newly Appointed Directors.  If after June 1, 2001 a Non-Employee
Director is initially elected or appointed to the Board effective on any date other than June 1, such Non-Employee Director shall automatically be granted, on the date he or she
joins the Board, Options to purchase a number of Shares equal to (i) 4,000, multiplied by (ii) a fraction, the numerator of which is the
number of full calendar months such Non-Employee Director will serve on the Board during the period beginning on the date such director joins the Board and ending on the following
May 31 and the denominator of which is 12. 

    C.  Option Exercise Price.  The exercise price per Share for each Option shall be 100% of the Fair Market
Value of a Share on the date of grant, subject to Section IV.B. 

E-21

 

    D.  Term of Options.  Each Option shall be exercisable for ten years after the date of grant, subject to
Section VII.F. 

    E.  Conditions and Limitations on Exercise.  

    (i)  Vesting.  Each Option shall vest in three installments as follows: (i) on each of the first
and second anniversaries of the date of grant, as to one-third of the Shares subject to such Option (with any resulting fractional Share rounded to the nearest whole Share) and
(ii) on the third anniversary of the date of grant, as to the remaining unvested portion of such Option. Upon a Non-Employee Director's mandatory retirement pursuant to the policies
of the Board, the unvested portions of any outstanding Options held by such Non-Employee Director shall fully vest. Upon the termination of a Non-Employee Director's tenure for
any other reason, the unvested portions of any outstanding Options shall expire and no Options granted to such Non-Employee Director shall vest after the termination of such director's
tenure on the Board. 

    (ii)  Exercise.  Each Option shall be exercisable in one or more installments and shall not be
exercisable for less than 100 Shares, unless the exercise represents the entire remaining exercisable balance of a grant or grants. Each Option shall be exercised by delivery to the Company of written
notice of intent to purchase a specific number of Shares subject to the Option. The option price of any Shares as to which an Option shall be exercised shall be paid in full at the time of the
exercise. Payment may, at the election of the Non-Employee Director, be made in any one or any combination of the following forms: 

    (a) check
or wire transfer of funds in such form as may be satisfactory to the Committee; 

    (b) delivery
of Shares valued at their Fair Market Value on the date of exercise or, if the date of exercise is not a business day, the next succeeding business day; 

    (c) through
simultaneous sale through a broker of unrestricted Shares acquired on exercise, as permitted under Regulation T of the Federal Reserve Board; or 

    (d) by
authorizing the Company in his or her written notice of exercise to withhold from issuance a number of Shares issuable upon exercise of such Option which, when
multiplied by the Fair Market Value of Common Stock on the date of exercise (or, if the date of exercise is not a business day, the next succeeding business day), is equal to the aggregate exercise
price payable with respect to the Option so exercised. 

    In
the event a Non-Employee Director elects to pay the exercise price payable with 

E-22

 

respect to an Option pursuant to clause (b) above, (i) only a whole number of Share(s) (and not fractional Shares) may be tendered in payment, (ii) such Non-Employee
Director must present evidence acceptable to the Company that he or she has owned any such Shares tendered in payment of the exercise price (and that such Shares tendered have not been subject to any
substantial risk of forfeiture) for at least six months prior to the date of exercise, and (iii) the certificate(s) for all such Shares tendered in payment of the exercise price must be
accompanied by duly executed instruments of transfer in a form acceptable to the Company. When payment of the Option exercise price is made by the tender of Shares, the difference, if any, between the
aggregate exercise price payable with respect to the Option being exercised and the Fair Market Value of the Share(s) tendered in payment (plus any applicable taxes) shall be paid by check or wire
transfer of funds. No Non-Employee Director may tender Shares having a Fair Market Value exceeding the aggregate exercise price payable with respect to the Option being exercised. 

    In
the event a Non-Employee Director elects to pay the exercise price payable with respect to an Option pursuant to clause (d) above, (i) only a whole number
of Share(s) (and not fractional Shares) may be withheld in payment and (ii) such Non-Employee Director must present evidence acceptable to the Company that he or she has owned a
number of Shares at least equal to the number of Shares to be withheld in payment of the exercise price (and that such owned Shares have not been subject to any substantial risk of forfeiture) for at
least six months prior to the date of exercise. When payment of the Option exercise price is made by the withholding of Shares, the difference, if any, between the aggregate exercise price payable
with respect to the Option being exercised and the Fair Market Value of the Share(s) withheld in payment (plus any applicable taxes) shall be paid by check or wire transfer of funds. No
Non-Employee Director may authorize the withholding of Shares having a Fair Market
Value exceeding the aggregate exercise price payable with respect to the Option being exercised. Any withheld Shares shall no longer be issuable under such Option. 

    F.  Additional Provisions.  

    (i)  Accelerated Expiration of Options Upon Termination of Directorship.  Upon the termination of a
Non-Employee Director's tenure for any reason, each outstanding vested and previously unexercised Option shall expire three months after the date of such termination;  provided that (a) upon the
termination of a Non-Employee Director's tenure as a result of death or Disability, each outstanding
vested and previously unexercised Option shall expire two years after the date of his or her termination as a director, and (b) upon the mandatory retirement of a Non-Employee
Director pursuant to the policies of the Board, each outstanding vested and previously unexercised Option shall expire five years after the date of his or her termination as a director. In no event
shall the provisions of this Section VII.F operate to extend the original expiration date of any Option. 

    (ii)  Sale of the Company.  In the event of a merger of the Company with or into another corporation
constituting a change of control of the Company, a sale of all or substantially all of the Company's assets or a sale of a majority of the Company's outstanding voting securities (a "Sale of the
Company"), the Options may be assumed by 

E-23

 

the successor corporation or a parent of such successor corporation or substantially equivalent options may be substituted by the successor corporation or a parent of such successor corporation, and
if the successor corporation does not assume the Options or substitute options, then all outstanding and unvested Options shall become immediately exercisable and all outstanding Options shall
terminate if not exercised as of the date of the Sale of the Company (or other prescribed period of time). The Company shall provide at least 30 days prior written notice of the Sale of the
Company to the holders of all outstanding Options, which notice shall state whether (a) the Options will be assumed by the successor corporation or substantially equivalent options will be
substituted by the successor corporation, or (b) the Options are thereafter vested and exercisable and will terminate if not exercised as of the date of the Sale of the Company (or other
prescribed period of time). 

    (iii)  Liquidation or Dissolution.  In the event of the liquidation or dissolution of the Company,
Options shall terminate immediately prior to the liquidation or dissolution. 

    G.  Grant of Reload Options.  A Non-Employee Director who exercises all or any portion of an
Option by the tender or withholding of Shares which have a Fair Market Value equal to not less than 100% of the exercise price for such Options (the "Exercised
Options") shall be granted, subject to Section IV, an additional option (a "Reload Option") for a number of Shares equal
to the sum of the number of Shares tendered or withheld in payment of the exercise price for the Exercised Options. 

    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 Exercised Option to which it relates; 

    (ii) subject
to clause (iii) below, the Reload Option may be exercised at any time during the unexpired term of the Exercised Option (subject to earlier
termination thereof as provided in the Plan); and 

    (iii) the
other terms of the Reload Option shall be the same as the terms of the Exercised Option to which it relates and shall be subject to the provisions of the
Plan, except that (a) the option price shall be the Fair Market Value of the Shares on the grant date of the Reload Option, (b) no Reload Option may be exercised within six months from
the grant date thereof, and (c) no other Reload Option shall be granted upon exercise of such Reload Option. 

    H.  Non-Qualified Stock Options.  All Options granted under the Plan shall be
non-qualified options not entitled to special tax treatment under Code Section 422, as may be amended from time to time. 

E-24

 

VIII.  Election to Receive Stock in Lieu of Cash Compensation.  

    A.  General.  A Non-Employee Director may elect to reduce the cash compensation otherwise
payable for services to be rendered by him or her as a director for any period beginning on June 1 and continuing
to the following May 31 (or such other period for which cash compensation is payable to Non-Employee Directors pursuant to the policies of the Board), beginning June 1, 1996
and to receive in lieu thereof Shares as provided in this Section VIII. 

    B.  Election.  By the later of (i) the date of the Company's annual meeting of stockholders next
preceding the June 1 to which such election relates (but in no event less than five business days prior to such June 1) and (ii) such Non-Employee Director's Initial
Election Date, each Non-Employee Director may make an irrevocable election to receive, in lieu of all or a specified percentage (which percentage shall be in 10% increments) of the cash
compensation to which such director would otherwise be entitled as a member of the Board and any committee thereof (including the annual retainer fee and any meeting or other fees payable for services
on the Board or any committee thereof, but excluding any reimbursement for out-of-pocket expenses) for the year beginning the following June 1 (or such other period for
which cash compensation is payable to such Non-Employee Director pursuant to the policies of the Board), an equivalent value in Shares granted in accordance with this Section VIII.
An election shall be effective (i) if made in accordance with clause (i) of the preceding sentence, beginning on the June 1 following such election; and (ii) if made on
such Non-Employee Director's Initial Election Date, immediately. 

    Each
such election shall (i) be in writing in a form prescribed by the Company, (ii) specify the amount of cash compensation to be received in the form of Election
Shares (expressed as a percentage of the compensation otherwise payable in cash), and (iii) be delivered to the Secretary of the Company. Such election may not be revoked or changed thereafter
except as to compensation for services to be rendered in any 12 month period beginning on any June 1 at least six months following such revocation or new election. 

    C.  Issuance of Common Stock.  If a Non-Employee Director elects pursuant to
Section VIII.B above to receive Shares, there shall be issued to such director promptly following each subsequent June 1 for which such election is effective (or promptly following the
first day of such other period for which such election is effective) a number of Shares equal to the amount of compensation otherwise payable for the 12 month period beginning on such
June 1 (or the other period for which such election is effective) divided by the Fair Market Value of the Shares on such June 1 (or on the first day of such other period). To the extent
that the application of the foregoing formula would result in fractional shares of Common Stock being issuable, cash will be paid to the Non-Employee Director in lieu of such fractional
Shares based upon the Fair Market Value of such fractional Share. 

    D.  Compliance with Exchange Act.  The election to receive Election Shares is intended to comply in all
respects with Rule 16b-3(d)(1) promulgated under Section 16(b) of the Exchange Act such that the issuance of Election Shares under the Plan on a grant date occurring at least
six months after the election shall be exempt from Section 16(b) of the Exchange Act. 

E-25

 
    E.  Grant Date.  The grant date for each Election Share for the Non-Employee Director
electing such option shall be the first day of the period to which such election relates and is effective. 

IX.  Miscellaneous Provisions.  

    A.  Rights of Non-Employee Directors.  No Non-Employee Director shall be entitled
under the Plan to voting rights, dividends or other rights of a stockholder prior to the issuance of Common Stock. Neither the Plan nor any action taken hereunder shall be construed as giving any
Non-Employee Director any right to be retained in the service of the Company. 

    B.  Limitations on Transfer and Exercise.  All Options granted under the Plan shall not be transferable
by the Non-Employee Director, other than by will or the laws of descent and distribution or pursuant to a qualified domestic relations order, as defined by Section 1  et seq, of the Code, Title I of
ERISA or the rules and regulations thereunder, and shall be exercisable during the Non-Employee Director's
lifetime only by such Non-Employee Director or by such Non-Employee Director's guardian or other legal representative; provided,
however, that the vested portions of Options, (other than Incentive Stock Options as defined in Section 422 of the Code), may be transferred by the
Non-Employee Director during his lifetime to (a) any member of his immediate family, (b) to a trust established for the exclusive benefit of himself or one or more members of
his immediate family, or (c) to a partnership, the partners of which are limited to the Non-Employee Director and members of his immediate family. A transfer of an Option pursuant
to this paragraph may only be effected by the Company at the written request of a Non-Employee Director and shall become effective only when recorded in the Company's record of outstanding
Options. In the event an Option is transferred as contemplated in this paragraph, 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 grant, and the transferee shall be entitled to the same rights as the Non-Employee Director, as if no transfer had taken place. As used in this
paragraph, "immediate family" shall mean, with respect to any person, his/her spouse, any child, stepchild or grandchild, and shall include relationships arising from legal adoption. 

    C.  Compliance with Laws.  No shares of Common Stock shall be issued hereunder unless counsel for the
Company shall be satisfied that such issuance will be in compliance with applicable federal, state, local and foreign securities, securities exchange and other applicable laws and requirements. Each
Share
granted pursuant to Section VI or Section VIII and each Option granted pursuant to Section VII shall be subject to the requirement that if at any time the Committee shall
determine, in its discretion, that the listing, registration or qualification of the Shares granted or subject to the Option upon any securities exchange or under any state or federal securities or
other law or regulation, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition to or in connection with the granting of such Share, such Option or
the issuance or purchase of Shares thereunder, no such Share may be issued and 

E-26

 

no Option may be exercised or paid in Common Stock, in whole or in part, unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any
conditions not acceptable to the Committee. The holder of such Share or Option will supply the Company with such certificates, representations and information as the Company shall request and shall
otherwise cooperate with the Company in obtaining such listing, registration, qualification, consent or approval. The Committee may at any time impose any limitations upon the sale of a Share or the
exercise of an Option or the sale of the Common Stock issued upon exercise of an Option that, in the Committee's discretion, are necessary or desirable in order to comply with Section 16(b) of
the Exchange Act and the rules and regulations thereunder. The Committee may at any time impose additional limitations, or may amend or delete the existing limitations, upon the exercise of Options by
the tender or withholding of Shares in accordance with Section VII.E (including an amendment or deletion of the related ownership period for Shares specified in such Section), if such
additional, amended or deleted limitations are necessary, desirable or no longer required (as the case may be) to remain in compliance with applicable accounting pronouncements relating to the
treatment of the plan as a fixed plan for accounting purposes. 

    D.  Payment of Withholding Tax.  Whenever Shares are to be issued pursuant to Section VI or
Section VIII of the Plan or upon exercise of Options issued pursuant to Section VII of the Plan, the Company shall be entitled to require as a condition of delivery (i) that the
participant remit an amount sufficient to satisfy all federal, state and local withholding tax requirements related thereto, (ii) the withholding of Shares due to the participant under the Plan
with a Fair Market Value equal to such amount, or (iii) any combination of the foregoing. 

    E.  Expenses.  The expenses of the Plan shall be borne by the Company and its Subsidiaries. 

    F.  Deemed Acceptance, Ratification and Consent.  By accepting any Common Stock hereunder or other
benefit under the Plan, each Non-Employee Director and each person claiming under or through him or
her shall be conclusively deemed to have indicated his or her acceptance and ratification of, and consent to, any action taken under the Plan by the Company, the Board or the Committee. 

    G.  Securities Act Registration.  The Company shall use its best efforts to cause to be filed under the
Securities Act of 1933, as amended, a registration statement covering the Shares issued, and issuable upon exercise of options granted, under the Plan. 

    H.  Governing Law.  The provisions of the Plan shall be governed by and construed in accordance with the
laws of the State of Delaware. 

    I.  Election Shares.  Pending the grant of Election Shares hereunder, all compensation earned by a
Non-Employee Director with respect to which an election to receive the grant of Election Shares pursuant to Section VIII.B has been made shall be the property of such director and
shall be paid to him or her in cash in the event that Election Shares are not granted by the Company hereunder. 

E-27

 

    J.  Headings; Construction.  Headings are given to the sections of the Plan solely as a convenience to
facilitate reference. Such headings, numbering and paragraphing shall not in any case be deemed in any way material or relevant to the construction of the Plan or any provisions hereof. The use of the
singular shall also include within its meaning the plural, where appropriate, and vice versa. 

X.  This section intentionally left blank.  

XI.  Amendment.  

    The Plan may be amended at any time and from time to time by resolution of the Board as the Board shall deem advisable; provided,
however, that no amendment shall become effective without stockholder approval if such stockholder approval is required by law, rule or regulation. No amendment of the Plan
shall materially and adversely affect any right of any participant with respect to any Options or Shares
theretofore granted under the Plan without such participant's written consent, except for any modifications required to maintain compliance with any federal or state statute or regulation. 

E-28

 

XII.  Termination.  

    The Plan shall terminate upon the earlier of the following dates or events to occur: 

     (i) upon
the adoption of a resolution of the Board terminating the Plan; and 

    (ii) ten
years from the date the Plan is initially approved and adopted by the stockholders of the Company in accordance with Article XIII. 

    Except
as specifically provided herein, no termination of the Plan shall materially and adversely affect any of the rights or obligations of any person without his or her consent with
respect to any Options or Shares theretofore granted under the Plan. 

XIII.  Stockholder Approval and Adoption.  

    The Plan was originally adopted by the Board on March 12, 1996 and was approved and adopted at a meeting of the stockholders of the Company held on
May 21, 1996. The Plan was amended and restated by the Board at a meeting held on November 12, 1996, August 14, 1997 and, in connection with a 2-for-1
stock split in the form of a dividend, effective as of July 2, 1998. The Plan was further amended and restated by the Board at a meeting held on November 10, 1998 and
September 18, 2000. Until June 1, 2001, the Plan as amended and restated as of November 10, 1998 shall remain in effect. 

E-29

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EQUITY INCENTIVE PLAN FOR NON-EMPLOYEE DIRECTORS

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