Document:

Exhibit 10.6

 

 

THE ALLSTATE CORPORATION

 

LONG-TERM EXECUTIVE INCENTIVE COMPENSATION PLAN

 

As Amended and Restated Effective November 13,
2007

 

 

1.             Purposes.

 

                                                The purposes of the Plan are to:

 

	
   

  	
   

  	
  a.

  	
   

  	
  attract and
  retain talented employees and to maximize the deductibility of compensation
  paid under the Plan to any Participant who is a Covered Employee as defined
  in Section 162(m) of the Internal Revenue Code (the “Code”);

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  b.

  	
   

  	
  provide
  Participants with added incentives to promote various long-term performance
  goals, while taking into account the varying objectives and conditions of the
  different businesses engaged in by The Allstate Corporation and its
  Subsidiaries;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c.

  	
   

  	
  link
  compensation to performance by rewarding three-year corporate performance;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  d.

  	
   

  	
  compensate
  participants at competitive levels when competitive performance is achieved,
  and at superior levels when performance exceeds competitors’; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  e.

  	
   

  	
  encourage
  teamwork among top executives.

  

 

2.             Definitions.

 

                                                The following terms when used in the Plan
shall, for the purposes of the Plan, have the following meanings:

 

                                                a. 
“Award” means the cash amount payable to a Participant for a Performance
Cycle pursuant to the terms of the Plan.

 

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

 

                                                c. 
“Business Unit” means any operating unit of The Allstate Corporation or
any of its Subsidiaries, including but not limited to, the property and
casualty business, the life business, the investments business, or the international
business.

 

1

 

 

                                                d. 
“Committee” means two or more members of the Board who are “outside
directors” within the meaning of Section 162(m) of the Code and the regulations
thereunder.

 

                e.  “Company”
means The Allstate Corporation.

 

                                                f. 
“Covered Employee” means a Participant who is a “Covered Employee” as
defined in Section 162(m)(3) of the Code.

 

g.  “Fiscal Year” means the calendar year.

 

                                                h. 
“Participant” means an elected officer of the Company or of any
Subsidiary, selected by the Committee to participate in the Plan for a
Performance Cycle or for any shorter period within a Performance Cycle in which
the Participant is an elected officer of the Company selected by the Committee
to participate in the Plan.

 

        i. 
“Performance Cycle” means a period of three consecutive fiscal years.

 

        j. 
“Plan” means the Long-Term Executive Incentive Compensation Plan.

 

                                                k. 
“Subsidiary” means any corporation of which the Company owns directly or
indirectly a majority of the outstanding shares of voting stock.

 

3.             Administration of the Plan.

 

                                                a. 
The Plan shall be administered by the Committee.  Members of the Committee shall be appointed
by the Board.

 

                                                b. 
The Committee shall have the authority to make all determinations it
deems necessary or advisable for the administration of the Plan, including the
selection of Participants, and, subject to the limitations set forth herein,
the determination of the timing and 
amount of Awards made to each Participant, and the establishment of
objective and measurable performance standards (“performance goals”) for
earning Awards.

 

                                                c. 
The Committee shall have the authority to exercise discretion in
determining the amounts of the Awards otherwise payable under the terms of the
Plan; provided, however, that the Committee shall have no
authority to increase the amount of Awards otherwise payable to any Covered
Employee under the terms of the Plan.

 

4.                                       Awards.

 

                                                a. 
Awards under the Plan shall consist of cash bonuses based upon the
degree of attainment of objective and measurable performance goals of the
Company and/or its Subsidiaries and/or Business Units thereof, where
applicable, over a Performance Cycle or such shorter period within a
Performance Cycle during which the Participant is an employee of the Company or
of any Subsidiary.

 

2

 

 

                                                b. 
The Committee shall establish written performance goals within 90 days
after the beginning of a Performance Cycle (or, if the Covered Employee is not
an employee at the beginning of a Performance Cycle, within the first 25% of
the period within the Performance Cycle in which the Covered Employee is an
employee), and while the outcome of the performance goals is substantially
uncertain.  Such performance goals shall
be expressed in terms of objective and measurable financial and/or operating
criteria, and may involve comparisons with respect to historical results of the
Company and its Subsidiaries and operating groups or Business Units thereof, as
well as comparisons with respect to peer group performance.  Performance goals shall be expressed using
one or more of the following measures of performance:  net income, operating income, return on
equity, earnings per share, return on assets, values of assets, revenues,
market share, prices of Company stock, or strategic business criteria
consisting of one or more Company, Subsidiary or Business Unit objectives based
on meeting specified revenue goals, market penetration goals, business
expansion goals, cost targets, customer retention goals, customer satisfaction
goals, or goals relating to acquisitions or divestitures.  The calculation is specifically defined at
the time the goal is set.  Each
performance goal must state, in terms of an objective formula or standard, the
Award payable to each Participant if the performance goal is attained.

 

c.  No award opportunity for any Participant for
any Performance Cycle shall exceed $6,000,000.

 

5.                                       Payment of Awards.

 

a.             Awards under the Plan shall be paid
to Participants as soon as practicable after the completion of the Performance
Cycle, after the completion of the audits for each year in the
Performance Cycle and after the Committee certifies that the performance goals
and any other material terms were in fact satisfied, but notwithstanding any
other provision in this Plan to the contrary, in no event before January 1 or
after March 15 of the
year following the completion of the Performance Cycle.

 

b.             Awards will be paid in cash, less
required withholding, or for those eligible, may be deferred at the Participant’s
election, subject to the terms and conditions of any deferred compensation plan
in which the Participant is eligible to participate.

 

                                                c.  
Unless the Committee has taken action under subsection 3.c. hereof prior
to payment of an Award, each Participant selected by the Committee who remains
actively employed by the Company or a Subsidiary thereof at the end of a
Performance Cycle shall be entitled to receive a payment of an Award earned
pursuant to the terms of the Plan with respect to such Performance Cycle.

 

                                                d. 
If a Participant’s employment is terminated prior to completion of a
Performance Cycle for any reason other than as described in subsection 5.e.
below, the Participant will forfeit any Award otherwise payable for such
Performance Cycle.

 

                                                e. 
If a Participant dies, retires or is disabled during a Performance
Cycle, and the 

 

3

 

Committee has not taken action under Section 3.c.
hereof, the Participant’s Award shall be prorated based on the number of half
months the Participant was eligible to participate during the Performance Cycle
as an elected officer of the Company or any of its Subsidiaries.  If a Participant dies before receipt of an
Award, the Award will be paid to the Participant’s estate.

 

f.  Prorated
Awards will be paid at the same time as regular Awards.

 

6.             Miscellaneous.

 

                                                a. 
All amounts payable hereunder shall be payable only to the Participant
or his or her beneficiaries.  The rights
and interests of a Participant under the Plan may not be assigned, encumbered,
or transferred, voluntarily or involuntarily, other than by will or the laws of
descent and distribution.

 

                                                b. 
No individual shall have any claim or right to be a Participant in the
Plan at any time, and any individual’s participation in the Plan may be
terminated at any time with or without notice, cause or regard to past
practices.

 

                                                c. 
Neither the Plan nor any action hereunder shall confer on any person any
right to remain in the employ of the Company or any of its Subsidiaries or
shall affect an employee’s compensation not arising under the Plan.  Neither the adoption of the Plan nor its
operation shall in any way affect the right and power of the Company or any
Subsidiary to dismiss or discharge any employee at any time.

 

                                                d. 
The Company and its Subsidiaries shall have the right to deduct from any
Award, prior to payment, the amount of any taxes required to be withheld by any
federal, state or local government with respect to such payments.

 

                                                e. 
The Committee may rely upon any information supplied to it by any
officer of the Company or any Subsidiary or by any independent accountant for
the Company and may rely upon the advice of counsel in connection with the
administration of the Plan and shall be fully protected in relying upon such
information or advice.

 

                                                f. 
All expenses and costs in connection with the administration of the Plan
shall be borne by the Company.

 

                                                g. 
The Plan and any agreements entered into thereunder shall be governed by
and construed in accordance with the laws of the state of Illinois.

 

7.             Amendment or Termination of the
Plan.

 

                                                The Board may suspend, terminate, modify
or amend the Plan; provided, however, that any such action which
changes employees eligible to participate, the criteria set forth in subsection
4.b., or the maximum amount of an Award set forth in subsection 4.c., shall be
disclosed to and approved by the Company’s stockholders.  Stockholder approval must be 

 

4

 

given by a
majority of the votes cast by the holders of Company shares represented in
person or by proxy at the annual meeting next following the date of any such
change.

 

8.             Effective Date.

 

                                                The Plan was adopted by the Board on
March 8, 1994, and was approved by the Company’s stockholders on May 19,
1994.  The Plan, as amended and restated,
was adopted by the Board of Directors on March 9, 1999, and was submitted to
the Company’s stockholders for approval on May 18,
1999.  The Plan was amended and restated
by the Board on March 9, 2004, and the material terms of the performance goals
of the Plan, as amended, were submitted to the Company’s stockholders for
approval on May 18, 2004.  The Plan was
further amended and restated by the Board on November 13, 2007 to comply with
Internal Revenue Code §409A.

 

 

5Exhibit 10.10

 

 

Long-Term Executive Incentive Plan — Performance Goals and
Target Awards for the 2008-2010 Cycle

 

                The registrant maintains a shareholder-approved
Long-Term Executive Incentive Compensation Plan to provide certain executives,
including the executive officers, the opportunity to receive a cash award based
on the achievement of performance objectives over a three-year cycle.  The
Compensation and Succession Committee of the Board of Directors establishes
performance measures for each cycle and sets threshold, target and maximum
award opportunities.  The amount of each executive’s payout is dependent
on the achievement of the performance measures.  The Committee has the
authority to adjust the amount of awards payable under the Plan, but has no
authority to increase the amount of an award otherwise payable to a “covered
employee” as defined in Section 162(m)(3) of the Internal Revenue
Code.  Payments are made by March 15 of the year following the end of
the respective cycle, after the Committee has certified in writing the degree
of attainment of the cycle’s performance goals.

 

                On February 26, 2008 the
Committee approved performance measures and target award opportunities for the
2008-2010 three-year performance cycle. 
The award opportunities are based on three performance measures. 50% of
the award opportunity is based on a three-year average adjusted net income
return on equity measure, as compared to a peer group of companies representing
both the property/casualty and financial services industries.  No payment based on this return on equity
measure is made unless that return exceeds the average rate on three-year
Treasury Notes over the three-year cycle, plus 200 basis points.  25% of the award opportunity is based on a
measure of Allstate Protection’s growth in policies in force (“PIF”) over the
three-year cycle, excluding property insurance, Motor Club, and the loan
protection business and includes Allstate Canada. The remaining 25% is based on
a measure of three year-average Allstate Financial net income return on
capital.  Threshold, target and maximum
levels of performance are established for each performance measure.  If
the maximum level of performance is achieved, the award would be three times
the executive officer’s target award, with target awards generally ranging from
40% to 155% of salary.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]