Document:

Exhibit 10.17  

THE ALLSTATE CORPORATION  

 EQUITY INCENTIVE PLAN  

 As Amended and Restated Effective as of February 20, 2007  

TABLE OF CONTENTS  

	 
	 	 
	 	Page

	

1.	
 	

Purpose	
 	

1
	

2.	
 	

Definitions	
 	

1
	

3.	
 	

Scope of the Plan	
 	

2
	 	 	(a) Number of Shares Available For Delivery Under the Plan	 	2
	 	 	(b) Effect of Expiration or Termination	 	2
	 	 	(c) Treasury Stock	 	3
	 	 	(d) Committee Discretion to Cancel Options	 	3
	

4.	
 	

Administration	
 	

3
	 	 	(a) Committee Administration	 	3
	 	 	(b) Board Reservation and Delegation	 	3
	 	 	(c) Committee Authority	 	3
	 	 	(d) Committee Determinations Final	 	4
	

5.	
 	

Eligibility	
 	

4
	

6.	
 	

Conditions to Grants	
 	

4
	 	 	(a) General Conditions	 	4
	 	 	(b) Grant of Options and Option Price	 	4
	 	 	(c) Grant of Incentive Stock Options	 	5
	 	 	(d) Grant of Reload Options	 	6
	 	 	(e) Grant of Shares of Restricted Stock	 	6
	 	 	(f) Grant of Unrestricted Stock	 	8
	

7.	
 	

Limitations on Transferability	
 	

8
	

8.	
 	

Exercise	
 	

9
	 	 	(a) Exercise of Options	 	9
	 	 	(b) Special Rules for Section 16 Grantees	 	10
	 	 	(c) Permissible Shares Issued	 	10
	

9.	
 	

Loans and Guarantees	
 	

10
	

10.	
 	

Notification under Section 83(b)	
 	

11
	

11.	
 	

Mandatory Withholding Taxes	
 	

11
	

12.	
 	

Elective Share Withholding	
 	

11
	

13.	
 	

Termination of Employment	
 	

12
	 	 	(a) Restricted Stock	 	12
	 	 	(b) Other Awards	 	12
	 	 	(c) Maximum Extension	 	12
	

14.	
 	

Equity Incentive Plans of Foreign Subsidiaries	
 	

12
	

15.	
 	

Substituted Awards	
 	

12
	

16.	
 	

Securities Law Matters	
 	

13
	

17.	
 	

No Funding Required	
 	

13
	

18.	
 	

No Employment Rights	
 	

13
	

19.	
 	

Rights as a Stockholder	
 	

13
	 	 	 	 	 

 

	

20.	
 	

Nature of Payments	
 	

13
	

21.	
 	

Non-Uniform Determinations	
 	

14
	

22.	
 	

Adjustments	
 	

14
	

23.	
 	

Amendment of the Plan	
 	

14
	

24.	
 	

Termination of the Plan	
 	

14
	

25.	
 	

No Illegal Transactions	
 	

14
	

26.	
 	

Controlling Law	
 	

14
	

27.	
 	

Severability	
 	

14

ii

   The Plan.    The Company established The Allstate Corporation Equity Incentive Plan (as set forth herein and from time to time amended, the
"Plan"), effective June 2, 1993. Amendments to the Plan were approved by the Company's stockholders on May 19, 1994 and on May 23, 1995. The Board of Directors further amended the
Plan on May 21, 1996, November 12, 1996 and August 14, 1997. On May 19, 1998, the Plan was amended and restated effective as of July 2, 1998. The Plan was further
amended and restated effective as of November 10, 1998. The Plan was further amended and restated by the Board at meetings held on September 10, 2006, and February 20, 2007. 

	1.
	Purpose.    The primary purpose of the Plan is to provide a means by which key employees of the Company and its Subsidiaries
can acquire and maintain stock ownership, thereby strengthening their commitment to the success of the Company and its Subsidiaries and their desire to remain employed by the Company and its
Subsidiaries. The Plan also is intended to attract and retain key employees and to provide such employees with additional incentive and reward opportunities designed to encourage them to enhance the
profitable growth of the Company and its Subsidiaries.

	2.
	Definitions.    As used in the Plan, terms defined parenthetically immediately after their use shall have the respective
meanings provided by such definitions and the terms set forth below shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms
defined):

	(a)
	"Award"
means options, shares of restricted Stock, or shares of unrestricted Stock granted under the Plan.

	(b)
	"Award
Agreement" means the written agreement by which an Award is evidenced.

	(c)
	"Board"
means the board of directors of the Company.

	(d)
	"Committee"
means the committee of the Board appointed pursuant to Article 4.

	(e)
	"Company"
means The Allstate Corporation, a Delaware corporation.

	(f)
	"Disability"
means, as relates to the exercise of an incentive stock option after Termination of Employment, a permanent and total disability within the meaning of
Section 22(e)(3) of the Internal Revenue Code, and for all other purposes, a mental or physical condition which, in the opinion of the Committee, renders a Grantee unable or incompetent to
carry out the job responsibilities which such Grantee held or the duties to which such Grantee was assigned at the time the disability was incurred, and which is expected to be permanent or for an
indefinite duration.

	(g)
	"Effective
Date" means the date described in the first paragraph of the Plan.

	(h)
	"Fair
Market Value" of the Stock means the price at which a share of the Stock was last sold in the principal United States market for the Stock as of the date for which fair market
value is being determined (other than on the Effective Date), provided, however, that if the Stock is
acquired and sold in a simultaneous sale pursuant to the provisions of Article 8(a)(iv), Fair Market Value means the price received upon such sale. Solely as of the effective date of the IPO,
Fair Market Value of the Stock means the price to the public pursuant to the form of final prospectus used in connection with the IPO, as indicated on the cover page of such prospectus or otherwise.

	(i)
	"Grant
Date" means the date of grant of an Award determined in accordance with Article 6.

	(j)
	"Grantee"
means an individual who has been granted an Award.

	(k)
	"Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended, and regulations and rulings thereunder. References to a particular section of the Internal Revenue Code
shall include references to successor provisions. 

1

 

	(l)
	"IPO"
means such term as defined in the first paragraph of the Plan.

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

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

	(o)
	"Option
Price" means the per share purchase price of (i) Stock subject to an option or (ii) restricted Stock subject to an option.

	(p)
	[deleted]

	(q)
	"Plan"
has the meaning set forth in the introductory paragraph.

	(r)
	"Reload
Option" has the meaning specified in Article 6(d).

	(s)
	"Retirement"
means a Termination of Employment occurring on or after an individual attains age 65, or a Termination of Employment approved by the Company as an early retirement;
provided that in the case of a Section 16 Grantee, such early retirement must be approved by the Committee.

	(t)
	"SEC"
means the Securities and Exchange Commission.

	(u)
	"Section 16
Grantee" means a person subject to potential liability with respect to equity securities of the Company under Section 16(b) of the 1934 Act.

	(v)
	"Stock"
means common stock of the Company, par value $.01 per share.

	(x)
	"Subsidiary"
means a corporation as defined in Section 424(f) of the Internal Revenue Code, with the Company being treated as the employer corporation for
purposes of this definition.

	(y)
	"10%
Owner" means a person who owns stock (including stock treated as owned under Section 424(d) of the Internal Revenue Code) possessing more than 10% of the Voting Power of
the Company.

	(z)
	"Termination
of Employment" occurs the first day on which an individual is for any reason no longer employed by the Company or any of its Subsidiaries, or with respect to an
individual who is an employee of a Subsidiary, the first day on which the Company no longer owns voting securities possessing at least 50% of the Voting Power of such Subsidiary.

	(aa)
	"Voting
Power" means the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors. 

	3.
	Scope of the Plan.

	(a)
	Number of Shares Available For Delivery Under the Plan.    A maximum of 36,000,000 shares of Stock may be awarded under the
Plan. Awards may be made from authorized but unissued shares of Stock or from Treasury Stock. No more than an aggregate of 3,400,000 shares of the aforesaid 36,000,000 shares of Stock may be granted
under Article 6(e) and (f). No more than 1,600,000 shares of Stock may be granted as stock options to any employee during the duration of the Plan.

	(b)
	Effect of Expiration or Termination.    If and to the extent an Award, other than an Award granted under Article 6(e)
or (f),shall expire or terminate for any reason without having been exercised in full (including, without limitation, a cancellation and regrant of an option pursuant to Article 4(c)(vii)), or
shall be forfeited, without, in either case, the Grantee having enjoyed any of the benefits of stock ownership, the shares of Stock associated with such Award shall become available for other Awards.
Except in the case of a Reload Option 

2

 

granted
to a Section 16 Grantee, the grant of a Reload Option shall not reduce the number of shares of Stock available for other Awards. 

	(c)
	Treasury Stock.    The Committee shall have the authority to cause the Company to purchase from time to time shares of Stock
to be held as treasury shares and used for or in connection with Awards.

	(d)
	Committee Discretion to Cancel Options.    The Committee may, in its discretion, elect at any time, should it determine it is
in the best interest of the Company's stockholders to cancel any options granted hereunder, to cancel all or any of the options granted hereunder and pay the holders of any such options an amount
(payable in such proportion as the Committee may determine in cash or in Stock (valued at the Fair Market Value of a share of Stock on the date of cancellation of such option)) equal to the number of
shares of Stock subject to such cancelled option, multiplied by the amount (if any) by which the Fair Market Value of Stock on the date of cancellation of the option exceeds the Option Price; provided
that if the Committee should determine that not making payment of such amount to the holders of such option upon the cancellation would be in the best interests of stockholders of the Company
(ignoring in such determination the cost of such payment and considering only other matters), the Committee may void options granted hereunder and declare that no payment shall be made to the holders
of such options. 

	4.
	Administration.

	(a)
	Committee Administration.    Subject to Article 4(b), the Plan shall be administered by the Committee, which shall
consist of not less than two persons appointed by the Board, who are directors of the Company and not employees of the Company or any of its Subsidiaries. Membership on the Committee shall be subject
to such limitations (including, if appropriate, a change in the minimum number of members of the Committee) as the Board deems appropriate to permit transactions pursuant to the Plan to be exempt from
potential liability under Section 16(b) of the 1934 Act and to comply with Section 162 (m) of the Internal Revenue Code.

	(b)
	Board Reservation and Delegation.    The Board may, in its discretion, reserve to itself or delegate to another committee of
the Board any or all of the authority and responsibility of the Committee with respect to Awards to Grantees who are not Section 16 Grantees at the time any such delegated authority or
responsibility is exercised. Such other committee may consist of one or more directors who may, but need not be, officers or employees of the Company or of any of its Subsidiaries. To the extent that
the Board has reserved to itself or delegated the authority and responsibility of the Committee to such other committee, all references to the Committee in the Plan shall be to such other committee.

	(c)
	Committee Authority.    The Committee shall have full and final authority, in its sole and absolute discretion, but subject
to the express provisions of the Plan, as follows:

	(i)
	to
grant Awards,

	(ii)
	to
determine (A) when Awards may be granted, and (B) whether or not specific Awards shall be identified with other specific Awards, and if so, whether they shall be
exercisable cumulatively with, or alternatively to, such other specific Awards,

	(iii)
	to
interpret the Plan and to make all determinations necessary or advisable for the administration of the Plan,

	(iv)
	to
prescribe, amend, and rescind rules and regulations relating to the Plan, including, without limitation, rules with respect to the exercisability and nonforfeitability of Awards
upon the Termination of Employment of a Grantee, 

3

 

	(v)
	to
determine the terms and provisions of the Award Agreements, which need not be identical and, with the consent of the Grantee, to modify any such Award Agreement at any time,

	(vi)
	to
cancel options in accordance with the provision of Section 3(d),

	(vii)
	except
as provided in Section 4(c)(vi) hereof, to cancel, with the consent of the Grantee, outstanding Awards, and to grant new Awards in substitution thereof,

	(viii)
	to
accelerate the exercisability of, and to accelerate or waive any or all of the restrictions and conditions applicable to, any Award,

	(ix)
	to
authorize foreign Subsidiaries to adopt plans as provided in Article 14,

	(x)
	to
make such adjustments or modifications to Awards to Grantees working outside the United States as are necessary and advisable to fulfill the purposes of the Plan,

	(xi)
	to
authorize any action of or make any determination by the Company as the Committee shall deem necessary or advisable for carrying out the purposes of the Plan,

	(xii)
	to
make appropriate adjustments to, cancel or continue Awards in accordance with Article 22, and

	(xiii)
	to
impose such additional conditions, restrictions, and limitations upon the grant, exercise or retention of Awards as the Committee may, before or concurrently with the grant
thereof, deem appropriate, including, without limitation, requiring simultaneous exercise of related identified Awards, and limiting the percentage of Awards which may from time to time be exercised
by a Grantee. 

	(d)
	Committee Determinations Final.    The determination of the Committee on all matters relating to the Plan or any Award
Agreement shall be conclusive and final. No member of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Award. 

	5.
	Eligibility.    Awards may be granted to any employee of the Company or any of its Subsidiaries. In selecting the individuals
to whom Awards may be granted, as well as in determining the number of shares of Stock subject to, and the other terms and conditions applicable to, each Award, the Committee shall take into
consideration such factors as it deems relevant in promoting the purposes of the Plan.

	6.
	Conditions to Grants.

	(a)
	General Conditions.

	(i)
	The
Grant Date of an Award shall be the date on which the Committee grants the Award or such later date as specified in advance by the Committee.

	(ii)
	The
term of each Award (subject to Articles 6(c) and 6(d) with respect to incentive stock options and Reload Options, respectively) shall be a period of not more than 12 years
from the Grant Date, and shall be subject to earlier termination as herein provided.

	(iii)
	A
Grantee may, if otherwise eligible, be granted additional Awards in any combination.

	(iv)
	The
Committee may grant Awards with terms and conditions which differ among the Grantees thereof. To the extent not set forth in the Plan, the terms and conditions of each Award
shall be set forth in an Award Agreement.

	(b)
	Grant of Options and Option Price.    The Committee may, in its discretion, grant options (which may be options to acquire
unrestricted Stock or restricted Stock) to any employee eligible under Article 5 to receive Awards. No later than the Grant Date of any option, the 

4

 

Committee
shall determine the Option Price; provided that the Option Price shall, except as provided in subsection (c) below and in Article 15, not be less than 100% of the Fair Market
Value of the Stock on the Grant Date. 

	(c)
	Grant of Incentive Stock Options.    At the time of the grant of any option, the Committee may designate that such option
shall be made subject to additional restrictions to permit it to qualify as an "incentive stock option" under the requirements of Section 422 of the Internal Revenue Code. Any option designated
as an incentive stock option:

	(i)
	shall
have an Option Price of (A) not less than 100% of the Fair Market Value of the Stock on the Grant Date or (B) in the case of a 10% Owner, not less than 110% of the
Fair Market Value of the Stock on the Grant Date;

	(ii)
	shall
have a term of not more than 10 years (five years, in the case of a 10% Owner) from the Grant Date, and shall be subject to earlier termination as provided herein or in
the applicable Award Agreement;

	(iii)
	shall
not have an aggregate Fair Market Value (determined for each incentive stock option at its Grant Date) of Stock with respect to which incentive stock options are exercisable
for the first time by such Grantee during any calendar year (under the Plan and any other employee stock option plan of the Grantee's employer or any parent or subsidiary thereof ("Other Plans")),
determined in accordance with the provisions of Section 422 of the Internal Revenue Code, which exceeds $100,000 (the "$100,000 Limit");

	(iv)
	shall,
if the aggregate Fair Market Value of Stock (determined on the Grant Date) with respect to all incentive stock options previously granted under the Plan and any Other Plans
("Prior Grants") and any incentive stock options under such grant (the "Current Grant") which are exercisable for the first time during any calendar year would exceed the $100,000 Limit, be
exercisable as follows:

	(A)
	the
portion of the Current Grant exercisable for the first time by the Grantee during any calendar year which would be, when added to any portions of any Prior Grants exercisable for
the first time by the Grantee during such calendar year with respect to stock which would have an aggregate Fair Market Value (determined as of the respective Grant Date for such options) in excess of
the $100,000 Limit shall, notwithstanding the terms of the Current Grant, be exercisable for the first time by the Grantee in the first subsequent calendar year or years in which it could be
exercisable for the first time by the Grantee when added to all Prior Grants without exceeding the $100,000 Limit; and

	(B)
	if,
viewed as of the date of the Current Grant, any portion of a Current Grant could not be exercised under the provisions of the immediately preceding sentence during any calendar
year commencing with the calendar year in which it is first exercisable through and including the last calendar year in which it may by its terms be exercised, such portion of the Current Grant shall
not be an incentive stock option, but shall be exercisable as a separate option at such date or dates as are provided in the Current Grant;

	(v)
	shall
be granted within 10 years from the earlier of the date the Plan is adopted or the date the Plan is approved by the stockholders of the Company; and

	(vi)
	shall
require the Grantee to notify the Committee of any disposition of any Stock issued pursuant to the exercise of the incentive stock option under the circumstances described 

5

 

in
Section 421(b) of the Internal Revenue Code (relating to certain disqualifying dispositions), within 10 days of such disposition. 

Notwithstanding
the foregoing and Article 4(c)(v), the Committee may take any action with respect to any option, including but not limited to an incentive stock option, without the consent of
the Grantee, in order to prevent such option from being treated as an incentive stock option. 

	(d)
	Grant of Reload Options.    The Committee may provide in an Award Agreement that a Grantee who exercises all or any portion
of an option for shares of Stock which have a Fair Market Value equal to not less than 100% of the Option Price for such options ("Exercised Options") and who paid the Option Price with shares of
Stock shall be granted, subject to Article 3, an additional option ("Reload Option") for a number of shares of stock equal to the sum ("Reload Number") of the number of shares of Stock tendered
or withheld in payment of the Option Price for the Exercised Options plus, if so provided by the Committee, the number of shares of Stock, if any, retained by the Company in connection with the
exercise of the Exercised Options to satisfy any federal, state or local tax withholding requirements. 

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 Article 6(d)(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 in the applicable Award Agreement); and

	(iii)
	the
terms of the Reload Option shall be the same as the terms of the Exercised Option to which it relates, except that (A) the Option Price shall be the Fair Market Value of
the Stock on the Grant Date of the Reload Option and (B) no Reload Option may be exercised within one year from the Grant Date thereof.

	(e)
	Grant of Shares of Restricted Stock.

	(i)
	The
Committee may, in its discretion, grant shares of restricted Stock to any employee eligible under Article 5 to receive Awards.

	(ii)
	Before
the grant of any shares of restricted Stock, the Committee shall determine, in its discretion:

	(A)
	whether
the certificates for such shares shall be delivered to the Grantee or held (together with a stock power executed in blank by the Grantee) in escrow by the Secretary of the
Company until such shares become nonforfeitable or are forfeited,

	(B)
	the
per share purchase price of such shares, which may be zero provided, however, that

	(1)
	the
per share purchase price of all such shares (other than treasury shares) shall not be less than the Minimum Consideration for each such share; and

	(2)
	if
such shares are to be granted to a Section 16 Grantee, the per share purchase price of any such shares shall also be at least 50% of the Fair Market Value of the Stock on
the Grant Date unless such shares are granted for no monetary consideration (in which case treasury shares are to be delivered) or with a purchase price per share equal to the Minimum Consideration
for the Stock, and 

6

 

	(C)
	the
restrictions applicable to such grant;

	(iii)
	Payment
of the purchase price (if greater than zero) for shares of restricted Stock shall be made in full by the Grantee before the delivery of such shares and, in any event, no
later than 10 days after the Grant Date for such shares. Such payment may, at the election of the Grantee, be made in any one or any combination of the following:

	(A)
	cash,

	(B)
	Stock
valued at its Fair Market Value on the date of payment or, if the date of payment is not a business day, the next succeeding business day, or

	(C)
	with
the approval of the Committee, shares of restricted Stock, each valued at the Fair Market Value of a share of Stock on the date of payment or, if the date of payment is not a
business day, the next succeeding business day provided, however, that, in the case of payment in Stock or restricted Stock,

	(1)
	the
use of Stock or restricted Stock in payment of such purchase price by a Section 16 Grantee is subject to (i) the availability of an exemption of such use of stock
from potential liability under Section 16(b) of the 1934 Act, or (ii) the inapplicability of such Section;

	(2)
	in
the discretion of the Committee and to the extent permitted by law, payment may also be made in accordance with Article 9; and

	(3)
	if
the purchase price for restricted Stock ("New Restricted Stock") is paid with shares of restricted Stock ("Old Restricted Stock"), the restrictions applicable to the New Restricted
Stock shall be the same as if the Grantee had paid for the New Restricted Stock in cash unless, in the judgment of the Committee, the Old Restricted Stock was subject to a greater risk of forfeiture,
in which case a number of shares of New Restricted Stock equal to the number of shares of Old Restricted Stock tendered in payment for New Restricted Stock may in the discretion of the Committee be
subject to the same restrictions as the Old Restricted Stock, determined immediately before such payment. 

7

  

	(iv)
	The
Committee may, but need not, provide that all or any portion of a Grantee's Award of restricted Stock shall be forfeited

	(A)
	except
as otherwise specified in the Award Agreement, upon the Grantee's Termination of Employment within a specified time period after the Grant Date, or

	(B)
	if
the Company or the Grantee does not achieve specified performance goals within a specified time period after the Grant Date and before the Grantee's Termination of Employment, or

	(C)
	upon
failure to satisfy such other restrictions as the Committee may specify in the Award Agreement.

	(v)
	If
a share of restricted Stock is forfeited, then

	(A)
	the
Grantee shall be deemed to have resold such share of restricted Stock to the Company at the lesser of (1) the purchase price paid by the Grantee (such purchase price shall
be deemed to be zero dollars ($0) if no purchase price was paid) or (2) the Fair Market Value of a share of Stock on the date of such forfeiture;

	(B)
	the
Company shall pay to the Grantee the amount determined under clause (A) of this sentence as soon as is administratively practical; and

	(C)
	such
share of restricted Stock shall cease to be outstanding, and shall no longer confer on the Grantee thereof any rights as a stockholder of the Company, from and after the date of
the Company's tender of the payment specified in clause (B) of this sentence, whether or not such tender is accepted by the Grantee.

	(vi)
	Any
share of restricted Stock shall bear an appropriate legend specifying that such share is non-transferable and subject to the restrictions set forth in the Plan. If
any shares of restricted Stock become nonforfeitable, the Company shall cause certificates for such shares to be issued or reissued without such legend and delivered to the Grantee or, at the request
of the Grantee, shall cause such shares to be credited to a brokerage account specified by the Grantee.

	(f)
	Grant of Unrestricted Stock.    The Committee may, in its discretion, grant shares of unrestricted Stock to any employee
eligible under Article 5 to receive Awards.

	7.
	Limitations on Transferability.    Except as otherwise provided in the terms of a specific grant, each Award (other than
unrestricted Stock) granted hereunder shall by its terms not be assignable or transferable other than by will or the laws of descent and distribution and may be exercised, during the Grantee's
lifetime, only by the Grantee. Each share of restricted Stock shall be non-transferable until such share becomes nonforfeitable. Notwithstanding the
foregoing, the Committee shall have the authority, in its discretion, to grant (or to sanction by way of amendment of an existing grant) nonqualified stock options the vested
portions of which may be transferred by the Grantee 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 Grantee and members of his immediate family. A transfer of a stock option pursuant to
this section 7 may only be effected by the Company at the written request of a Grantee and shall become effective only when recorded in the Company's record of outstanding stock options. In the
event a stock option is transferred as contemplated in this section 7 any Reload Options associated with such transferred stock option shall terminate, and such transferred stock option may not
be subsequently transferred by the transferee except by will or the laws of descent and distribution. Otherwise, a transferred stock 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 Grantee, as if no 

8

 

transfer
had taken place. As used in this section 7, an 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. 

	8.
	Exercise.

	(a)
	Exercise of Options.    Subject to Articles 4(c)(vii), 14 and 17, and such terms and conditions as the Committee may impose,
each option shall be exercisable in one or more installments commencing not earlier than the first anniversary of the Grant Date of such option. Options shall not be exercisable for twelve months
following a hardship distribution that is subject to Treasury Regulation §1.401(k)-1(d)(2)(iv)(B)(4), except to the extent permitted thereunder. Options shall not be
exercisable for less than 25 shares of Stock unless the exercise represents the entire remaining 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 of Stock or restricted Stock subject to the option. The Option Price of any shares of Stock or restricted Stock 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 Grantee, be made in any one or any combination of the following forms: 

        Subject
to Articles 4(c)(vii), 14, 17 and 28, and such terms and conditions as the Committee may impose, each option shall be exercisable in one or more installments commencing not
earlier than the first anniversary of the Grant Date of such option. 

	(i)
	check
in such form as may be satisfactory to the Committee,

	(ii)
	Stock
valued at its Fair Market Value on the date of exercise or, if the date of exercise is not a business day, the next succeeding business day,

	(iii)
	with
the approval of the Committee, shares of restricted Stock, each valued at the Fair Market Value of a share of Stock on the date of exercise or, if the date of exercise is not a
business day, the next succeeding business day,

	(iv)
	through
simultaneous sale through a broker of shares of unrestricted Stock acquired on exercise, as permitted under Regulation T of the Federal Reserve Board, or

	(v)
	by
authorizing the Company in his or her written notice of exercise to withhold from issuance a number of shares of Stock 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 Option Price payable
with respect to the option so exercised. 

In
the event a Grantee elects to pay the Option Price payable with respect to an option pursuant to clause (ii) above, (A) only a whole number of share(s) of Stock (and not fractional
shares of Stock) may be tendered in payment, (B) such Grantee must present evidence acceptable to the Company that he or she has owned any such shares of Stock tendered in payment of the Option
Price (and that such shares of Stock tendered have not been subject to any substantial risk of forfeiture) for at least six months prior to the date of exercise, and (C) Stock must be delivered
to the Company. Delivery may, at the election of the Grantee, be made either by (I) delivery of the certificate(s) for all such shares of Stock tendered in payment of the Option Price,
accompanied by duly executed instruments of transfer in a form acceptable to the Company, or (II) direction to the Grantee's broker to transfer, by book entry, such shares of Stock from a
brokerage account of the Grantee to a brokerage account specified by the Company. When payment of the Option Price is made by tender of Stock, the difference, if any, between the aggregate Option
Price payable with respect to the option being exercised and the Fair Market Value of the share(s) of Stock tendered in payment (plus any applicable taxes) shall be paid by check. No Grantee may
tender shares of 

9

 

Stock
having a Fair Market Value exceeding the aggregate Option Price payable with respect to the Option being exercised 

In
the event a Grantee elects to pay the Option Price payable with respect to an option pursuant to clause (v) above, (A) only a whole number of share(s) of Stock (and not fractional
shares of Stock) may be withheld in payment and (B) such Grantee must present evidence acceptable to the Company that he or she has owned a number of shares of Stock at least equal to the
number of shares of Stock to be withheld in payment of the Option Price (and that such owned shares of Stock 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 Price is made by the withholding of shares of Stock, the difference, if any, between the aggregate Option Price payable with respect to the option
being exercised and the Fair Market Value of the share(s) of Stock withheld in payment (plus any applicable taxes) shall be paid by check. No Grantee may authorize the withholding of shares of Stock
having a Fair Market Value exceeding the aggregate Option Price payable with respect to the option being exercised. Any withheld shares of Stock shall no longer be issuable under such option. 

If
restricted Stock ("Tendered Restricted Stock") is used to pay the Option Price for Stock, then a number of shares of Stock acquired on exercise of the option equal to the number of shares of
Tendered Restricted Stock shall be subject to the same restrictions as the Tendered Restricted Stock, determined as of the date of exercise of the option. If the Option Price for restricted Stock is
paid with Tendered Restricted Stock, and if the Committee determines that the restricted Stock acquired on exercise of the option is subject to restrictions ("Greater Restrictions") that cause it to
have a greater risk of forfeiture than the Tendered Restricted Stock, then notwithstanding the preceding sentence, all the restricted Stock acquired on exercise of the option shall be subject to such
Greater Restrictions. 

Shares
of unrestricted Stock acquired by a Grantee on exercise of an option shall be delivered to the Grantee or, at the request of the Grantee, shall be credited directly to a brokerage account
specified by the Grantee. 

	(b)
	Special Rules for Section 16 Grantees.    Subject to Article 15, no option shall be exercisable by a
Section 16 Grantee during the first six months after its Grant Date, if such exercise (or the sale of shares received upon exercise) would result in the loss of an exemption for a grant under
Section 16(b) of the 1934 Act.

	(c)
	Permissible Shares Issued.    No shares of Stock shall be issued hereunder upon option exercise except shares of Stock
available under Article 3(a). Each Grantee, by acceptance of an award, waives all rights to specific performance or injunctive or other equitable relief and acknowledges
that he has an adequate remedy at law in the form of damages.

	9.
	Loans and Guarantees.    The Committee may, in its discretion:

	(a)
	allow
a Grantee to defer payment to the Company of all or any portion of (i) the Option Price of an option, (ii) the purchase price of a share of restricted Stock, or
(iii) any taxes associated with a benefit hereunder which is not a cash benefit at the time such benefit is so taxable, or

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

Any
such payment deferral or guarantee by the Company pursuant to this Article 9 shall be, on a secured or unsecured basis, for such periods, at such interest rates, and on such other terms and
conditions as the Committee may determine. Notwithstanding the foregoing, a Grantee shall not be entitled to defer the payment of such Option Price, purchase price, or any related taxes unless 

10

 

the
Grantee (i) enters into a binding obligation to pay the deferred amount and (ii) except with respect to treasury shares, pays upon exercise of an option or grant of shares of
restricted Stock, as the case may be, an amount equal to or greater than the aggregate Minimum Consideration therefor. If the Committee has permitted a payment deferral or caused the Company to
guarantee a loan pursuant to this Article 9, then the Committee may, in its discretion, require the immediate payment of such deferred amount or the immediate release of such guarantee upon the
Grantee's Termination of Employment or if the Grantee sells or otherwise transfers the Grantee's shares of Stock purchased pursuant to such deferral or guarantee. 

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

	11.
	Mandatory Withholding Taxes.

	(a)
	Whenever
under the Plan, cash or shares of Stock are to be delivered upon exercise or payment of an Award or upon a share of restricted Stock becoming nonforfeitable, or any other
event with respect to rights and benefits hereunder, the Company shall be entitled to require as a condition of delivery (i) that the Grantee remit an amount sufficient to satisfy all federal,
state, and local withholding tax requirements related thereto, (ii) the withholding of such sums from compensation otherwise due to the Grantee or from any shares of Stock due to the Grantee
under the Plan or (iii) any combination of the foregoing.

	(b)
	If
any disqualifying disposition described in Article 6(c)(vi) is made with respect to shares of Stock acquired under an incentive stock option granted pursuant to the
Plan or any election described in Article 10 is made, then the person making such disqualifying disposition or election shall remit to the Company an amount sufficient to satisfy all federal,
state, and local withholding taxes thereby incurred; provided that, in lieu of or in addition to the foregoing, the Company shall have the right to withhold such sums from compensation otherwise due
to the Grantee or from any shares of Stock due to the Grantee under the Plan.

	12.
	Elective Share Withholding.

	(a)
	Subject
to the prior approval of the Committee and to Article 12(b), a Grantee may elect the withholding ("Share Withholding") by the Company of a portion of the shares of
Stock otherwise deliverable to such Grantee upon the exercise or payment of an Award or upon a share of restricted Stock's becoming nonforfeitable (each a "Taxable Event") having a Fair Market Value
equal to

	(i)
	the
minimum amount necessary to satisfy required federal, state, or local withholding tax liability attributable to the Taxable Event; or

	(ii)
	with
the Committee's prior approval, a greater amount, not to exceed the estimated total amount of such Grantee's tax liability with respect to the Taxable Event.

	(b)
	Each
Share Withholding election by a Grantee shall be subject to the following restrictions:

	(i)
	any
Grantee's election shall be subject to the Committee's right to revoke its approval of Share Withholding by such Grantee at any time before the Grantee's election if the Committee
has reserved the right to do so at the time of its approval; 

11

  

	(ii)
	if
the Grantee is a Section 16 Grantee, such Grantee's election shall be subject to the disapproval of the Committee at any time, whether or not the Committee has reserved the
right to do so; and

	(iii)
	the
Grantee's election must be made before the date (the "Tax Date") on which the amount of tax to be withheld is determined.

	13.
	Termination of Employment.

	(a)
	Restricted Stock.    Except as otherwise provided by the Committee on or after the Grant Date, a Grantee's shares of
restricted Stock that are forfeitable shall be forfeited upon the Grantee's Termination of Employment.

	(b)
	Other Awards.    If a Grantee has a Termination of Employment, then, unless otherwise provided in the Grant Agreement, any
unexercised option to the extent exercisable on the date of the Grantee's Termination of Employment may be exercised by the Grantee, in whole or in part, at any time within three months following such
Termination of Employment, except that

	(i)
	if
the Grantee's Termination of Employment is on account of Disability, then any unexercised option to the extent exercisable at the date of such Termination of Employment, may be
exercised, in whole or in part, by the Grantee at any time within two years after the date of such Termination of Employment; and

	(ii)
	if
the Grantee's Termination of Employment is on account of Retirement, then any unexercised option to the extent exercisable at the date of such Termination of Employment, may be
exercised, in whole or in part, by the Grantee at any time within five years after the date of such Termination of Employment; and

	(iii)
	if
the Grantee's Termination of Employment is caused by the death of the Grantee or if the Grantee's death occurs during the period following Termination of Employment during which
the option would be exercisable under the preceding clause of Article 13(b) or under Article 13(b)(i) or (ii), then any unexercised option to the extent exercisable on the date of
the Grantee's death, may be exercised, in whole or in part, at any time within two years after the Grantee's death by the Grantee's personal representative or by the person to whom the option is
transferred by will or the applicable laws of descent and distribution.

	(c)
	Maximum Extension.    Notwithstanding the foregoing, no Award shall be exercisable beyond the maximum term permitted under
the original Award Agreement unless the Committee explicitly extends such original term, in which case such term shall not be extended beyond the maximum term permitted by the Plan.

	14.
	Equity Incentive Plans of Foreign Subsidiaries.    The Committee may authorize any foreign Subsidiary to adopt a plan for
granting Awards ("Foreign Equity Incentive Plan"). All awards granted under such Foreign Equity Incentive Plans shall be treated as grants under the Plan. Such Foreign Equity Incentive Plans shall
have such terms and provisions as the Committee permits not inconsistent with the provisions of the Plan and which may be more restrictive than those contained in the Plan. Awards granted under such
Foreign Equity Incentive Plans shall be governed by the terms of the Plan except to the extent that the provisions of the Foreign Equity Incentive Plans are more restrictive than the terms of the
Plan, in which case such terms of the Foreign Equity Incentive Plans shall control.

	15.
	Substituted Awards.    The Committee may grant substitute awards for any cancelled Award granted under this Plan or any plan
of any entity acquired by the Company or any of its Subsidiaries in accordance with this Article 15. If the Committee cancels any Award (granted under this Plan, or 

12

 

any
plan of any entity acquired by the Company or any of its Subsidiaries), and a new Award is substituted therefor, then the Committee may, in its discretion, determine the terms and conditions of
such new Award, and may provide that the Grant Date of the cancelled Award shall be the date used to determine the earliest date or dates for exercising the new substituted Award under
Article 8 hereof so that the Grantee may exercise the substituted Award at the same time as if the Grantee had held the substituted Award since the Grant Date of the cancelled Award. 

	16.
	Securities Law Matters.

	(a)
	If
the Committee deems necessary to comply with the Securities Act of 1933, the Committee may require a written investment intent representation by the Grantee and may require that a
restrictive legend be affixed to certificates for shares of Stock.

	(b)
	If
based upon the opinion of counsel for the Company, the Committee determines that the exercise or nonforfeitability of, or delivery of benefits pursuant to, any Award could violate
any applicable provision of (i) federal or state securities law or regulations or (ii) the listing requirements of any national securities exchange on which are listed any of the
Company's equity securities, then the Committee may postpone any such exercise, nonforfeitability or delivery, as the case may be, but the Company shall use its best efforts to cause such exercise,
nonforfeitability or delivery to comply with all such provisions at the earliest practicable date.

	17.
	No Funding Required.    Benefits payable under the Plan to any person shall be paid directly by the Company. The Company
shall not be required to fund, or otherwise segregate assets to be used for payment of, benefits under the Plan.

	18.
	No Employment Rights.    Neither the establishment of the Plan, nor the granting of any Award shall be construed to
(a) give any Grantee the right to remain employed by the Company or any of its Subsidiaries or to any benefits not specifically provided by the Plan or (b) in any manner modify the right
of the Company or any of its Subsidiaries to modify, amend, or terminate any of its employee benefit plans.

	19.
	Rights as a Stockholder.    A Grantee shall not, by reason of any Award (other than restricted Stock) have any right as a
stockholder of the Company with respect to the shares of Stock which may be deliverable upon exercise or payment of such Award until such shares have been delivered to him. Shares of restricted Stock
held by a Grantee or held in escrow by the Secretary of the Company shall confer on the Grantee all rights of a stockholder of the Company, except as otherwise provided in the Plan or the Award
Agreement. The Committee, in its discretion, at the time of grant of restricted Stock, may permit or require the payment of cash dividends thereon to be deferred and, if the Committee so determines,
reinvested in additional restricted Stock to the extent shares are available under Article 3, or otherwise reinvested in Stock. Stock dividends, deferred cash dividends and dividends in the
form of property other than cash, issued with respect to restricted Stock shall, unless otherwise provided in the Award Agreement, be treated as additional shares of restricted Stock that are subject
to the same restrictions and other terms as apply to the shares with respect to which such dividends are issued. The Committee may, in its discretion, provide for crediting and payment of interest on
deferred cash dividends.

	20.
	Nature of Payments.    Any and all grants, payments of cash, or deliveries of shares of Stock hereunder shall constitute
special incentive payments to the Grantee and shall not be taken into account in computing the amount of salary or compensation of the Grantee for the purposes of determining any pension, retirement,
death or other benefits under (a) any pension, retirement, profit-sharing, bonus, life insurance or other employee benefit plan of the Company or any of its Subsidiaries or (b) any
agreement between the Company or any Subsidiary, on the one hand, and the Grantee, on the other hand, except as such plan or agreement shall otherwise expressly provide. 

13

 
	21.
	Non-Uniform Determinations.    Neither the Committee's nor the Board's determinations under the Plan need be
uniform and may be made by the Committee or the Board selectively among persons who receive, or are eligible to receive, Awards (whether or not such persons are similarly situated). Without limiting
the generality of the foregoing, the Committee shall be entitled, among other things, to make non-uniform and selective determinations, to enter into non-uniform and selective
Award Agreements as to (a) the identity of the Grantees, (b) the terms and provisions of Awards, and (c) the treatment, under Article 13, of Terminations of Employment.

	22.
	Adjustments.    In the event of any equity restructuring (within the meaning of Financial Accounting Standards No. 123
(revised 2004)) that causes the per share value of shares of Stock to change, such as a stock dividend, stock split, spin off, rights offering, or recapitalization through a large, nonrecurring cash
dividend, the Committee shall cause there to be made an equitable adjustment to (a) the number and kind of shares that may be awarded under the Plan, (b) the number of shares or Awards
that may be granted to any individual under the Plan or that may be granted pursuant to any Articles or types of Awards and (iii) the number and kind of shares subject to and the exercise price
(if applicable) of any then outstanding Awards. In the event of any other change in corporate capitalization, such as a merger, consolidation, any reorganization (whether or not such reorganization
comes within the definition of such term in Section 368 of the Internal Revenue Code) or any partial or complete liquidation of the Company, the Committee may, in its sole discretion, cause
there to be made such equitable adjustment described in the foregoing sentence and/or the termination of an Award. In either case, any such adjustment shall be conclusive and binding for all purposes
of the Plan.

	23.
	Amendment of the Plan.    The Board may from time to time in its discretion amend or modify the Plan without the approval of
the stockholders of the Company, except as such stockholder approval may be required (a) to permit transactions in Stock pursuant to the Plan to be exempt from potential liability under
Section 16(b) of the 1934 Act, (b) to permit the Company to deduct, in computing its income tax liability pursuant to the provisions of the Internal Revenue Code, compensation resulting
from Awards, (c) to retain incentive stock option treatment under Section 422 of the Internal Revenue Code, or (d) under the listing requirements of any securities exchange on which are
listed any of the Company's equity securities.

	24.
	Termination of the Plan.    The Plan shall terminate on the tenth (10th) anniversary of the Effective Date or at such earlier
time as the Board may determine. Any termination, whether in whole or in part, shall not affect (a) any Award then outstanding under the Plan, or (b) the Company's ability to make
adjustments to or cancel or continue Awards in accordance with Article 22.

	25.
	No Illegal Transactions.    The Plan and all Awards granted pursuant to it are subject to all laws and regulations of any
governmental authority which may be applicable thereto; and notwithstanding any provision of the Plan or any Award, Grantees shall not be entitled to exercise Awards or receive the benefits thereof
and the Company shall not be obligated to deliver any Stock or pay any benefits to a Grantee if such exercise, delivery, receipt or payment of benefits would constitute a violation by the Grantee or
the Company of any provision of any such law or regulation.

	26.
	Controlling Law.    The law of the State of Delaware except its law with respect to choice of law, shall be controlling in
all matters relating to or arising out of the Plan or any Award.

	27.
	Severability.    If all or any part of the Plan is declared by any court or governmental authority to be unlawful or invalid,
such unlawfulness or invalidity shall not serve to invalidate any portion of the Plan not declared to be unlawful or invalid. Any Article or part of an Article so declared to be unlawful or invalid
shall, if possible, be construed in a manner which will give effect to the terms of such Article or part of an Article to the fullest extent possible while remaining lawful and valid. 

14

 
	28.
	Effect of Change of Control

	(a)
	Certain
Definitions.    As used in this Article 28, the terms set forth below shall have the following meanings (such meanings to be equally applicable to both the
singular and plural forms of the terms defined):

	(i)
	"Allstate
Incumbent Directors" means, determined as of any date by reference to any baseline date:

	(A)
	the
members of the Board on the date of such determination who have been members of the Board since such baseline date, and

	(B)
	the
members of the Board on the date of such determination who were appointed or elected after such baseline date and whose election, or nomination for election by stockholders of the
Company or the Surviving Corporation, as applicable, was approved by a vote or written consent of two-thirds (100% for purposes of paragraph (A) of the definition of "Merger of
Equals") of the directors comprising the Allstate Incumbent Directors on the date of such vote or written consent, but excluding each such member whose initial assumption of office was in connection
with (1) an actual or threatened election contest, including a consent solicitation, relating to the election or removal of one or more members of the Board, (2) a "tender offer" (as
such terms is used in Section 14(d) of the Exchange Act), (3) a proposed Reorganization Transaction, or (4) a request, nomination or suggestion of any Beneficial Owner of Voting
Securities representing 15% or more of the aggregate voting power of the Voting Securities of the Company or the Surviving Corporation, as applicable.

	(ii)
	"Approved
Passive Holder" means, as of any date, any Person that satisfies all of the following conditions:

	(A)
	as
of such date, such Person is a 20% Owner, but is the Beneficial Owner of less than 30% of the then-outstanding Common Stock and of Voting Securities representing less
than 30% of the combined voting power of all then-outstanding Voting Securities of the Company;

	(B)
	prior
to becoming a 20% Owner, such Person has filed, and as of such date has not withdrawn, or made any subsequent filing or public statement inconsistent with, a statement with the
SEC pursuant to Section 13(g) of the Exchange Act that includes a certification by such person to the effect that such beneficial ownership does not have the purpose or effect of changing or
influencing the control of the Company;

	(C)
	prior
to such Person's becoming a 20% Owner, at least two-thirds of the Allstate Incumbent Directors (such Allstate Incumbent Directors to be determined as of
March 3, 1999 as the baseline date) shall have voted in favor of a resolution adopted by the Board to the effect that:

	(1)
	the
terms and conditions of such Person's investment in the Company will not have the effect of changing or influencing the control of the Company, and

	(2)
	notwithstanding
clause (A) of the definition of "Change of Control," such Person's becoming a 20% Owner shall be treated as though it were a Merger of Equals for purposes of
the Plan.

	(iii)
	"Beneficial
Owner" means such term as defined in Rule 13d-3 of the SEC under the Exchange Act. 

15

 

	(iv)
	"Cause"
means any of the events or conditions which constitute cause for immediate termination of employment of the Grantee as provided from time to time in the applicable Human
Resources Policy of the Company or one of its Subsidiaries.

	(v)
	"Change
of Control" means, except as provided at the end of this Section, the occurrence of any one or more of the following:

	(A)
	any
person (as such term is used in Rule 13d-5 of the SEC under the Securities Exchange Act of 1934, as amended ("Exchange Act")) or group (as such term is defined
in Sections 3(a)(9) and 13(d)(3) of the Exchange Act), other than a Controlled Affiliate of the Company or any employee benefit plan (or any related trust) of the Company or any of its Controlled
Affiliates, becomes the Beneficial Owner of 20% or more of the common stock of the Company or of Voting Securities representing 20% or more of the combined voting power of all Voting Securities of the
Company (such a person or group that is not a Similarly Owned Company (as defined below), a "20% Owner"), except that no Change of Control shall be deemed to have occurred solely by reason of such
beneficial ownership by a corporation (a "Similarly Owned Company") with respect to which both more than 70% of the common stock of such corporation and Voting Securities representing more than 70% of
the combined voting power of the Voting Securities of such corporation are then owned, directly or indirectly, by the persons who were the direct or indirect owners of the common stock and Voting
Securities of the Company immediately before such acquisition, in substantially the same proportions as their ownership, immediately before such acquisition, of the common stock and Voting Securities
of the Company, as the case may be; or

	(B)
	Allstate
Incumbent Directors (as determined using March 3, 1999 as the baseline date) cease for any reason to constitute at least two-thirds of the directors of the
Company then serving (provided, however, that this clause (B) shall be inapplicable during a Post-Merger of Equals Period); or

	(C)
	Approval
by the stockholders of the Company of a merger, reorganization, consolidation, or similar transaction, or a plan or agreement for the sale or other disposition of all or
substantially all of the consolidated assets of the Company or a plan of liquidation of the Company (any of the foregoing, a "Reorganization Transaction") that, based on information included in the
proxy and other written materials distributed to the Company's stockholders in connection with the solicitation by the Company of such stockholder approval, is not expected to qualify as an Exempt
Reorganization Transaction; provided, however, that if (1) the merger or other agreement between the parties to a Reorganization Transaction expires or is terminated after the date of such
stockholder approval but prior to the consummation of such Reorganization Transaction (a "Reorganization Transaction Termination") or (2) immediately after the consummation of the
Reorganization Transaction, such Reorganization Transaction does qualify as an Exempt Reorganization Transaction notwithstanding the fact that it was not expected to so qualify as of the date of such
stockholder approval, then such stockholder approval shall not be deemed a Change of Control for purposes of any Termination of Employment as to which the Termination Date occurs on or after the date
of the Reorganization Transaction Termination or the date of the consummation of the Exempt Reorganization Transaction, as applicable; or

	(D)
	The
consummation by the Company of a Reorganization Transaction that for any reason fails to qualify as an Exempt Reorganization Transaction as of the date of 

16

 

such
consummation, notwithstanding the fact that such Reorganization Transaction was expected to so qualify as of the date of such stockholder approval; or 

	(E)
	A
20% Owner who had qualified as an Approved Passive Holder ceases to qualify as such for any reason other than ceasing to be a 20% Owner (such cessation of Approved Passive Holder
status to be considered for all purposes of this Equity Incentive Plan (including the definition of "Change of Control Effective Date") a Change of Control distinct from and in addition to the Change
of Control specified in clause (A) above). 

Notwithstanding
the occurrence of any of the foregoing events, a Change of Control shall not occur with respect to a Grantee if, in advance of such event, such Grantee agrees in writing that such
event shall not constitute a Change of Control. 

	(vi)
	"Change
of Control Effective Date" means the date on which a Change of Control first occurs while an Award is outstanding.

	(vii)
	"Consummation
Date" means the date on which a Reorganization Transaction is consummated.

	(viii)
	"Controlled
Affiliate" of a Person means any corporation, business trust, or limited liability company or partnership with respect to which such Person owns, directly or
indirectly, Voting Securities representing more than 50% of the aggregate voting power of the then-outstanding Voting Securities.

	(ix)
	"Exempt
Reorganization Transaction" means a Reorganization Transaction that results in the Persons who were the direct or indirect owners of the outstanding common stock and Voting
Securities of the Company immediately before such Reorganization Transaction becoming, immediately after the consummation of such Reorganization Transaction, the direct or indirect owners, of both
more than 70% of the then-outstanding common stock of the Surviving Corporation and Voting Securities representing more than 70% of the combined voting power of the
then-outstanding Voting Securities of the Surviving Corporation, in substantially the same respective proportions as such Persons' ownership of the common stock and Voting Securities of
the Company immediately before such Reorganization Transaction.

	(x)
	"Merger
of Equals" means, as of any date, a transaction that, notwithstanding the fact that such transaction may also qualify as a Change of Control, satisfies all of the conditions
set forth in paragraphs (A) or (B) below:

	(A)
	if
such date is on or after the Consummation Date, a Reorganization Transaction in respect of which all of the following conditions are satisfied as of such date, or if such date is
prior to the Consummation Date, a proposed Reorganization Transaction in respect of which the merger agreement or other documents (including the exhibits and annexes thereto) setting forth the terms
and conditions of such Reorganization Transaction, as in effect on such date after giving effect to all amendments thereof or waivers thereunder, require that the following conditions be satisfied on
and, where applicable, after the Consummation Date:

	(1)
	at
least 50%, but not more than 70%, of the common stock of the surviving Corporation outstanding immediately after the consummation of the Reorganization Transaction, together with
Voting Securities representing at least 50%, but not more than 70%, of the combined voting power of all Voting Securities of the Surviving Corporation outstanding immediately after such consummation
shall be owned, directly or indirectly, by the persons who were 

17

 

the
owners directly or indirectly of the common stock and Voting Securities of the Company immediately before such consummation in substantially the same proportions as their respective direct or
indirect ownership, immediately before such consummation, of the common stock and Voting Securities of the Company, respective; and 

	(2)
	Allstate
Incumbent Directors (determined as of such date using the date immediately preceding the Change of Control Effective Date as the baseline date) shall, throughout the period
beginning on the Change of Control Effective Date and ending on the third anniversary of the Change of Control Effective Date, continue to constitute not less than 50% of the members of the Board; and

	(3)
	The
person who was the CEO of the Company immediately prior to the Change of Control Effective Date shall serve as (x) the CEO of the Company throughout the period beginning on
the Change of Control Effective Date and ending on the Consummation Date and (y) the CEO of the Surviving Corporation at all times during the period commencing on the Consummation Date and
ending on the first anniversary of the Consummation Date; 

provided,
however, that a Reorganization Transaction that qualifies as a Merger of Equals shall cease to qualify as a Merger of Equals (a "Merger of Equals Cessation") and shall instead qualify as a
Change of Control that is not a Merger of Equals from and after the first date during the Post-Change period (such date, the "Merger of Equals Cessation Date") as of which any one or more
of the following shall occur for any reason: 

	 	(i)	 	if any condition of clause (1) of paragraph (A) of this Section shall for any reason not be satisfied immediately after the consummation of the Reorganization Transaction; or
	

 	

(ii)	
 	

if as of the close of business on any date on or after the Change of Control Effective Date, any condition of clauses (2) or (3) of paragraph (A) of this Section shall not be satisfied; or
	

 	

(iii)	
 	

if on any date prior to the first anniversary of the Consummation Date, the Company shall make a filing with the SEC, issue a press release, or make a public announcement to the effect that the Company is seeking or intends to seek a replacement for
the then-CEO of the Company, whether such replacement is to become effective before or after such first anniversary.

	(B)
	As
of such date, each Person who is a 20% Owner qualifies as an Approved Passive Holder. 

The
Committee shall give all Grantees written notice of any Merger of Equals Cessation and the applicable Merger of Equals Cessation Date as soon as practicable after the Merger of Equals Cessation
Date. 

	(xi)
	"Merger
of Equals Cessation Date"—see the definition of "Merger of Equals".

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

18

 

	(xiii)
	"Post-Change
Period" means the period commencing on the Change of Control Effective Date and ending on the third anniversary of the Change of Control Effective Date.

	(xiv)
	"Post-Merger
of Equals Period" means the period commencing on a Change of Control Effective Date of a Change of Control that qualifies as a Merger of Equals and ending
on the third anniversary of such Change of Control Effective Date or, if sooner, the Merger of Equals Cessation Date.

	(xv)
	"Reorganization
Transaction"—see clause (C) of the definition of "Change of Control."

	(xvi)
	"Reorganization
Transaction Termination"—see clause (C) of the definition of "Change of Control."

	(xvii)
	"Surviving
Corporation" means the corporation resulting from a Reorganization Transaction or, if securities representing at least 50% of the aggregate Voting Power of such
resulting corporation are directly or indirectly owned by another corporation, such other corporation.

	(xviii)
	"20%
Owner"—see clause (A) of the definition of "Change of Control."

	(xviv)
	"Voting
Securities" of a corporation means securities of such corporation that are entitled to vote generally in the election of directors of such corporation.

	(b)
	Vesting
on Change of Control. Except as otherwise specifically provided in The Allstate Corporation Change of Control Severance Plan (to the extent such plan is applicable to the
Grantee), an Award Agreement relating to an Award or another written agreement with the Company to which the Grantee is a party,

	(i)
	on
a Change of Control Effective Date of a Change of Control that is not a Merger of Equals or, if applicable, on a Merger of Equals Cessation Date, each Award outstanding on such
date shall become fully vested and nonforfeitable and, subject to Article 13, shall be exercisable in full; provided, however, that for purposes of a Change of Control as defined in
Section 28(a)(v)(C) only, each Award granted on or after March 13, 2001 shall become fully vested and nonforfeitable to the extent such Award is outstanding, on the Consummation Date
with respect to such a Change of Control that is not a Merger of Equals or if applicable, on a later Merger of Equals Cessation Date; and

	(ii)
	if
a Grantee has a Termination of Employment during the Post-Merger of Equals Period, which Termination of Employment is initiated by the Grantee's employer for a reason
other than Cause or Disability, then each outstanding Award held by such Grantee (or his or her permitted transferee) on the date of such Termination of Employment shall become fully vested and
nonforfeitable immediately prior to such Termination of Employment and, subject to Article 13, shall be exercisable in full. 

19Exhibit 10.28  

Summary of Named Executive Officers Salaries for 2007  

        On February 20, 2007, the Board of Directors of The Allstate Corporation, upon recommendation from the Compensation and Succession Committee of the Board
of Directors, approved the following 2007 annual base salaries: Thomas J. Wilson, II, President and Chief Executive Officer, $960,000; Danny L. Hale, Vice President and Chief
Financial Officer, $609,312; and Eric A. Simonson, President, Allstate Investments, LLC, $625,248. The salaries of Edward M. Liddy, Chairman, and Casey J. Sylla, Chairman
of the Board and President, Allstate Life Insurance Company remain unchanged. These salaries are effective as of April 1, 2007, except Mr. Wilson's which is effective as of the date he became
President and Chief Executive Officer, January 1, 2007. These salaries may be changed at any time at the discretion of the Board.

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