Document:

QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.4  

 
 

SECOND AMENDMENT TO THE
  WADDELL & REED FINANCIAL, INC.
  2003 EXECUTIVE INCENTIVE PLAN    
    

        Waddell & Reed Financial, Inc., a Delaware corporation (the "Company"), previously established the Waddell & Reed Financial, Inc. 2003
Executive Incentive Plan (formerly named the Waddell & Reed Financial, Inc. 1999 Management Incentive Plan), as amended March 5, 2002 and further amended effective
January 1, 2003 (as amended, the "Plan"). Pursuant to Section 6(b) of the Plan, the Board of Directors of the Company (the "Board") or the Compensation Committee of the Board may amend
the Plan. Pursuant to the powers reserved in the Plan and subject to the approval of the stockholders of the Company at the Company's 2003 Annual Meeting of Stockholders, the Plan is amended effective
March 11, 2003 as follows. 

	1.
	Section 2(i) of
the Plan is amended in its entirety to read as follows:

	"(i)
	'Performance
Goals' means the pre-established objective performance goals established by the Committee for each Fiscal Year. Solely with respect to Covered Employees, for
any Fiscal Year for which the Plan is intended to provide 'qualified performance-based compensation,' Performance Goals applicable to the Covered Employees must be established by the Committee no
later than 90 days (or, if earlier, the passage of 25% of the performance period) after the beginning of any performance period applicable to the relevant award. One or more of the following
business criteria (including or excluding extraordinary and/or non-recurring items to be determined by the Committee in advance) for the Company, on a consolidated basis, and/or for
specified subsidiaries or business or geographical units of the Company (except with respect to the total shareholder return and earnings per share criteria), shall be used by the Committee in
establishing Performance Goals for awards: (a) earnings per share; (b) increase in revenues; (c) increase in cash flow; (d) increase in cash flow return; (e) return
on net assets; (f) return on assets; (g) return on investment; (h) return on capital; (i) return on equity; (j) economic value added; (k) operating margin;
(l) contribution margin; (m) net income; (n) pretax earnings; (o) pretax earnings before interest, depreciation and amortization; (p) pretax operating earnings after
interest expense and before incentives, service fees, and extraordinary or special items; (q) operating income; (r) total stockholder return; (s) debt reduction; and
(t) any of the above goals determined on an absolute or relative basis, or as adjusted in any manner which may be determined in the discretion of the Committee, or as compared to the
performance of a published or special index deemed applicable by the Committee including, but not limited to, the Standard & Poor's 500 Stock Index or a group of competitor companies, including
the group selected by the Company for purposes of the stock performance graph contained in the proxy statement for the Company's annual meetings of stockholders."

	2.
	Section 6(a)
of the Plan is amended in its entirety to read as follows:

	"(a)
	Effectiveness
of the Plan. The Plan became effective with respect to calendar years beginning on or after January 1, 1999 and shall remain effective until December 31,
2008, unless the term in extended by action of the Board."

	3.
	If
this Amendment is approved at the Company's 2003 Annual Meeting of Stockholders, the Plan shall remain in full force and effect as amended hereby. If this Amendment is not approved
at the Company's 2003 Annual Meeting of Stockholders, the Board shall amend the Plan to prohibit the grant of restricted Company Stock to Covered Employees (as such terms are defined in the Plan).

	4.
	The
Plan shall remain in full force and effect as amended by this Amendment. 

QuickLinks

SECOND AMENDMENT TO THE WADDELL & REED FINANCIAL, INC. 2003 EXECUTIVE INCENTIVE PLANQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.1    
    

ABBOTT LABORATORIES SUPPLEMENTAL PENSION PLAN  

(As amended thru the 17th Amendment

effective January 1, 2002)  

 
ABBOTT LABORATORIES SUPPLEMENTAL PENSION PLAN  

 Section 1

INTRODUCTION  

        1-1.  On
September 9, 1977, December 14, 1979 and February 10, 1984 the Board of Directors of Abbott Laboratories ("Abbott") adopted certain
resolutions providing for payment of (i) pension benefits calculated under the Abbott Laboratories Annuity Retirement Plan ("Annuity Plan") in excess of those which may be paid under that plan
under the limits imposed by Section 415 of the U.S. Internal Revenue Code, as amended, and the Employee Retirement Income Security Act ("ERISA") and (ii) the additional pension benefits
that would be payable under the Annuity Plan if deferred awards under the Abbott Laboratories Management Incentive Plan were included in "final earnings" as defined in the Annuity Plan. 

        The
purpose of this ABBOTT LABORATORIES SUPPLEMENTAL PENSION PLAN (the "Supplemental Plan") is to clarify, restate and supersede the prior resolutions. 

        1-2.  The
Supplemental Plan shall apply to employees of Abbott and its subsidiaries and affiliates existing as of the date of adoption of the Supplemental Plan or
thereafter created or acquired. (Abbott and each of such subsidiaries and affiliates are hereinafter referred to as an "employer" and collectively as the "employers"). 

        1-3.  All
benefits provided under the Supplemental Plan shall be provided from the general assets of the employers and not from any trust fund or other designated
asset. All participants in the Supplemental Plan shall be general creditors of the employers with no priority over other creditors. 

2

 

        1-4.  The
Supplemental Plan shall be administered by the Abbott Laboratories Employee Benefit Board of Review appointed and acting under the Annuity Plan ("Board
of Review"). Except as stated below, the Board of Review shall perform all powers and duties with respect to the Supplemental Plan, including the power to direct payment of benefits, allocate costs
among employers, adopt amendments and determine questions of interpretation. The Board of Directors of Abbott shall have the sole authority to terminate the Supplemental Plan. 

Section 2

ERISA ANNUITY PLAN SUPPLEMENTAL BENEFIT  

        2-1.  The
benefits described in this Section 2 shall apply to all participants in the Annuity Plan who retire, or terminate with a vested pension under
that plan, on or after September 9, 1977. 

        2-2.  Each
Annuity Plan participant whose retirement or vested pension under that plan would otherwise be limited by Section 415, Internal Revenue Code,
shall receive a supplemental pension under this Supplemental Plan in an amount, which, when added to his or her Annuity Plan pension, will equal the amount the participant would be entitled to under
the Annuity Plan as in effect from time to time, based on the particular option selected by the participant, without regard to the limitations imposed by Section 415, Internal Revenue Code. 

Section 3

1986 TAX REFORM ACT SUPPLEMENTAL BENEFIT  

        3-1.  The
benefits described in this Section 3 shall apply to all participants in the Annuity Plan who retire, or terminate with a vested pension under
that plan, after December 31, 1988. 

3

 

        3-2.  Each
Annuity Plan participant shall receive a supplemental pension under this Supplemental Plan in an amount determined as follows: 

	(a)
	The
supplemental pension shall be the difference, if any, between:

	(i)
	the
monthly benefit payable under the Annuity Plan plus any supplement provided by Section 2; and

	(ii)
	the
monthly benefit which would have been payable under the Annuity Plan (without regard to the limits imposed by Section 415, Internal Revenue Code) if the
participant's "final earnings", as defined in the Annuity Plan, had included compensation in excess of the limits imposed by Section 401(a)(17), Internal Revenue Code, and any
"pre-tax contributions" made by the participant under the Abbott Laboratories Supplemental 401(k) Plan. 

Section 4

DEFERRED COMPENSATION PLAN ANNUITY PLAN SUPPLEMENTAL BENEFIT  

        4-1.  The
benefits described in this Section 4 shall apply to all participants in the Annuity Plan who retire, or terminate with a vested pension, under
that plan, on or after January 1, 2002 and who made a Deferral Election under the Abbott Laboratories Deferred Compensation Plan (the "Deferred Compensation Plan") with respect to any calendar
month during the one hundred twenty consecutive calendar months immediately preceding retirement or termination of employment. 

        4-2.  Each
Annuity Plan participant shall receive a supplemental pension under this Supplemental Plan in an amount determined as follows: 

	(a)
	The
supplemental pension shall be the difference, if any, between:

	(i)
	the
monthly benefit payable under the Annuity Plan plus any supplement provided by Section 2 and Section 3; and 

4

 

	(ii)
	the
monthly benefit which would have been payable under the Annuity Plan (without regard to the limits imposed by Section 415, Internal Revenue Code) if the
participant's "base earnings", as defined in the Annuity Plan, included deferrals made under the Deferred Compensation Plan and any compensation in excess of the limits imposed by
Section 401(a)(17), Internal Revenue Code. 

Section 5

DEFERRED MIP ANNUITY PLAN SUPPLEMENTAL BENEFIT  

        5-1.  The
benefits described in this Section 5 shall apply to all participants in the Annuity Plan who retire, or terminate with a vested pension, under
that plan, on or after December 14, 1979 and who were awarded Management Incentive Plan awards for any calendar year during the ten consecutive calendar years ending with the year of retirement
or termination of employment. 

        5-2.  Each
Annuity Plan participant shall receive a supplemental pension under this Supplemental Plan in an amount determined as follows: 

	(a)
	The
supplemental pension shall be the difference, if any, between:

	(i)
	the
monthly benefit payable under the Annuity Plan plus any supplement provided by Section 2, Section 3, and Section 4; and

	(ii)
	the
monthly benefit which would have been payable under the Annuity Plan (without regard to the limits imposed by Section 415, Internal Revenue Code) if the
participant's "final earnings", as defined in the Annuity Plan, were one-sixtieth of the sum of:

	(A)
	the
participant's total "basic earnings" (excluding any payments under the Management Incentive Plan or any Division Incentive Plan) received in the sixty consecutive calendar months
for which his basic earnings (excluding any payments under the Management Incentive Plan or any Division Incentive Plan) were highest within the last one hundred twenty consecutive calendar months
immediately preceding his retirement or termination of employment; and 

5

 

	(B)
	the
amount of the participant's total awards under the Management Incentive Plan and any Division Incentive Plan (whether paid immediately or deferred) made for the five consecutive
calendar years during the ten consecutive calendar years ending with the year of retirement or termination for which such amount is the greatest and (for participants granted Management Incentive Plan
awards for less than five consecutive calendar years during such ten year period) which include all Management Incentive Plan awards granted for consecutive calendar years within such ten year period.

	(b)
	That
portion of any Management Incentive Plan award which the Compensation Committee has determined shall be excluded from the participant's "basic earnings" shall be excluded from
the calculation of "final earnings" for purposes of this Section 5-2. "Final earnings" for purposes of this subsection 5-2 shall include any compensation in excess of
the limits imposed by Section 401(a)(17), Internal Revenue Code.

	(c)
	In
the event the period described in subsection 5-2(a)(ii)(B) is the final five calendar years of employment and a Management Incentive Plan award is made to the
participant subsequent to retirement for the participant's final calendar year of employment, the supplemental pension shall be adjusted by adding such new award and subtracting a portion of the
earliest Management Incentive Plan award included in the calculation, from the amount determined under subsection 5-2(a)(ii)(B). The portion subtracted shall be equal to that
portion of the participant's final calendar year of employment during which the participant was employed by Abbott. If such adjustment results in a greater supplemental pension, the greater pension
shall be paid beginning the first month following the date of such new award. 

Section 6

CORPORATE OFFICER ANNUITY PLAN SUPPLEMENTAL BENEFIT  

        6-1.  The
benefits described in this Section 6 shall apply to all participants in the Annuity Plan who are corporate officers of Abbott as of
September 30, 1993 or who become corporate officers thereafter, and who retire, or terminate with a vested pension under that plan on or after September 30, 1993. The term "corporate
officer" for purposes of this Supplemental Plan shall mean an individual elected an officer of Abbott by its Board of Directors (or 

6

 

designated
as such for purposes of this Section 6 by the Compensation Committee of the Board of Directors of Abbott), but shall not include assistant officers. 

        6-2.  Subject
to the limitations and adjustments described below, each participant described in subsection 6-1 shall receive a monthly supplemental
pension under this Supplemental Plan commencing on the participant's normal retirement date under the Annuity Plan and payable as a life annuity, equal to 6/10 of 1 percent
(.006) of the participant's final earnings (as determined under subsection 5-2) for each of the first twenty years of the participant's benefit service (as defined in the Annuity Plan)
occurring after the participant's attainment of age 35. 

        6-3.  In
no event shall the sum of (a) the participant's aggregate percentage of final earnings calculated under subsection 6-2 and
(b) of the participant's aggregate percentage of final earnings calculated under subsection 5-1(b)(i) of the Annuity Plan, exceed the maximum aggregate percentage of final
earnings allowed under subsection 5-1(b)(i) of the Annuity Plan (without regard to any limits imposed by the Internal Revenue Code), as in effect on the date of the participant's
retirement or termination. In the event the limitation described in this subsection 6-3 would be exceeded for any participant, the participant's aggregate percentage calculated under
subsection 6-2 shall be reduced until the limit is not exceeded. 

        6-4.  Benefit
service occurring between the date a participant ceases to be a corporate officer of Abbott and the date the participant again becomes a corporate
officer of Abbott shall be disregarded in calculating the participant's aggregate percentage under subsection 6-2. 

7

 

        6-5.  Any
supplemental pension otherwise due a participant under this Section 6 shall be reduced by the amount (if any) by which: 

	(a)
	the
sum of (i) the benefits due such participant under the Annuity Plan and this Supplemental Plan, plus (ii) the actuarially equivalent value of the
employer-paid portion of all benefits due such participant under the primary retirement plans of all non-Abbott employers of such participant; exceeds

	(b)
	the
maximum benefit that would be due under the Annuity Plan (without regard to the limits imposed by Section 415, Internal Revenue Code) based on the participant's final
earnings (as determined under subsection 4-2), if the participant had accrued the maximum benefit service recognized by the Annuity Plan. 

The
term "primary retirement plan" shall mean any pension benefit plan as defined in ERISA, whether or not qualified under the Internal Revenue Code, which is determined by the Board of Review to be
the primary pension plan of its sponsoring employer. The term "non-Abbott employer" shall mean any employer other than Abbott or a subsidiary or affiliate of Abbott. A retirement plan
maintained by an employer prior to such employer's acquisition by Abbott shall be deemed a retirement plan maintained by a non-Abbott employer for purposes of this subsection
6-5. 

        6-6.  Any
supplemental pension due a participant under this Section 6 shall be actuarially adjusted as provided in the Annuity Plan to reflect the pension
form selected by the participant and the participant's age at commencement of the pension, and shall be paid as provided in subsection 7-2. 

8

   Section 7

CORPORATE OFFICER ANNUITY PLAN

SUPPLEMENTAL EARLY RETIREMENT BENEFIT  

        7-1.  The
benefits described in this Section 7 shall apply to all persons described in subsection 7-1. 

        7-2.  The
supplemental pension due under Sections 2, 3, 4, 5 and 6 to each participant described in subsection 8-1 shall be reduced as provided in
subsections 5-3 and 5-6 of the Annuity Plan for each month by which its commencement date precedes the last day of the month in which the participant will attain age 60. No
reduction will be made for the period between the last day of the months the participant will attain age 60 and age 62. 

        7-3.  Each
participant described in subsection 7-1 shall receive a monthly supplemental pension under this Supplemental Plan equal to any reduction
made in such participant's Annuity Plan pension under subsections 5-3 or 5-6 of the Annuity Plan for the period between the last day of the months the participant will attain
age 60 and age 62. 

Section 8

MISCELLANEOUS  

        8-1.  For
purposes of this Supplemental Plan, the term "Management Incentive Plan" shall mean the Abbott Laboratories 1971 Management Incentive Plan, the Abbott
Laboratories 1981 Management Incentive Plan and all successor plans to those plans. 

        8-2.  The
supplemental pension described in Sections 2, 3, 4, 5, 6 and 7 shall be paid to the participant or his or her beneficiary based on the particular
pension option elected by the participant, in the same manner, at the same time, for the same period and on the same terms and conditions as the pension payable to the participant or his beneficiary
under the Annuity Plan. In 

9

 

the
event a participant is paid his or her pension under the Annuity Plan in a lump sum, any supplemental pension due under Sections 2, 3, 4, 5, 6 or 7 shall likewise be paid in a lump sum.
Notwithstanding the foregoing provision of this subsection 8-2: (a) if the present value of the vested supplemental pensions described in Sections 2, 3, 4, 5, 6 and 7
of a participant who is actively employed by Abbott as a corporate officer exceeds $100,000, then payment of such pensions shall be made to the participant under Section 9 below; and
(b) if the monthly vested supplemental pensions, expressed as a straight life annuity, due a participant or his or her beneficiary under Sections 2, 3, 4, 5, 6 and 7 do not exceed an
aggregate of One Hundred Fifty Dollars ($150.00) as of the commencement date of the pension payable such participant or his or her beneficiary under the Annuity Plan, and payment of such supplemental
pension has not previously been made under Section 9, the present value of such supplemental pensions shall be paid such participant or beneficiary in a lump-sum. 

        8-3.  Notwithstanding
any other provisions of this Supplemental Plan, if employment of any participant with Abbott and its subsidiaries and affiliates should
terminate for any reason within five (5) years after the date of a Change in Control: 

	(a)
	The
present value of any supplemental pension due the participant under Section 2 (whether or not then payable) shall be paid to the participant in a lump sum within thirty
(30) days following such termination; and

	(b)
	The
present value of any supplemental pension due the participant under Sections 3, 4 or 5 (whether or not then payable) shall be paid to the participant in a lump sum within
thirty (30) days following such termination. 

        The
supplemental pension described in paragraph (a) shall be computed using as the applicable limit under Section 415, Internal Revenue Code, such limit as is in effect on
the termination date and based on the assumption that the participant will receive his or her Annuity Plan pension in the 

10

 

form
of a straight life annuity with no ancillary benefits. The present values of the supplemental pensions described in paragraphs (a) and (b) shall be computed as of the date of
payment by using an interest rate equal to the Pension Benefit Guaranty Corporation interest rate applicable to an immediate annuity, as in effect on the date of payment. 

        8-4.  For
purposes of subsection 8-3, a "Change in Control" shall be deemed to have occurred on the earliest of the following dates: 

	(a)
	The
date any entity or person (including a "group" as defined in Section 13(d)(3) of the Securities Exchange Act of 1934 (the "Exchange Act")) shall have become the beneficial
owner of, or shall have obtained voting control over thirty percent (30%) or more of the outstanding common shares of the Company;

	(b)
	The
date the shareholders of the Company approve a definitive agreement (A) to merge or consolidate the Company with or into another corporation, in which the Company is not
the continuing or surviving corporation or pursuant to which any common shares of the Company would be converted into cash, securities or other property of another corporation, other than a merger of
the Company in which holders of common shares immediately prior to the merger have the same proportionate ownership of common stock of the surviving corporation immediately after the merger as
immediately before, or (B) to sell or otherwise dispose of substantially all the assets of the Company; or

	(c)
	The
date there shall have been a change in a majority of the Board of Directors of the Company within a twelve (12) month period unless the nomination for election by the
Company's shareholders of each new director was approved by the vote of two-thirds of the directors then still in office who were in office at the beginning of the twelve (12) month
period. 

        8-5.  The
provisions of subsections 8-3, 8-4 and this subsection 8-5 may not be amended or deleted, nor superseded by any
other provision of this Supplement Plan, during the period beginning on the date of a Change in Control and ending on the date five years following such Change in Control. 

11

 

        8-6.  All
benefits due under this Supplemental Plan shall be paid by Abbott and Abbott shall be reimbursed for such payments by the employee's employer. In the
event the employee is employed by more than one employer, each employer shall reimburse Abbott in proportion to the period of time the employee was employed by such employer, as determined by the
Board of Review in its sole discretion. 

        8-7.  The
benefits under the Supplemental Plan are not in any way subject to the debts or other obligations of the persons entitled to benefits and may not be
voluntarily or involuntarily sold, transferred or assigned. 

        8-8.  Nothing
contained in this Supplemental Plan shall confer on any employee the right to be retained in the employ of Abbott or any of its subsidiaries or
affiliates. 

        8-9.  Upon
adoption of this Supplemental Plan, the prior resolutions shall be deemed rescinded. 

Section 9

ALTERNATE PAYMENT OF SUPPLEMENTAL PENSIONS  

        9-1.  If,
as of December 31, 1995 or any subsequent December 31, the present value of the supplemental pension described in Sections 2, 3, 4,
5, 6 and 7 of a participant, who is actively employed by Abbott as a corporate officer, exceeds $100,000, then payment of such present value shall be made, at the direction of the participant, by
either of the following methods: (a) current payment in cash directly to the participant, or (b) current payment of a portion of such present value (determined as of that
December 31) in cash for the participant directly to a Grantor Trust established by the participant, and current payment of the balance of such present value in cash directly to the
participant, provided that the payment made directly to the participant shall 

12

 

approximate
the aggregate federal, state and local individual income taxes attributable to the amount paid pursuant to this subparagraph 9-1(b) (as determined pursuant to the tax rates set
forth in subsection 9-14). 

        9-2.  If
the present value of a participant's supplemental pension has been paid to the participant (including amounts paid to the participant's Grantor Trust)
pursuant to subsection 9-1 (either as in effect prior to June 1, 1996 that applied to any participant with a supplemental pension with a present value in excess of $100,000 or as
currently in effect that requires the participant to have a supplemental pension with a present value in excess of $100,000 and to be a corporate officer), then as of each subsequent
December 31, such participant shall be entitled to a payment in an amount equal to: (i) the present value (as of that December 31) of the participant's supplemental pension
described in Sections 2, 3, 4, 5, 6 and 7 less (ii) the current value (as of that December 31) of the payments previously made to the participant under
subsections 9-1 and 9-2. Payments under this subsection 9-2 shall be made, at the direction of the participant, by either of the following methods:
(a) current payment in cash directly to the participant, or (b) current payment of a portion of such amount in cash for the participant directly to the Grantor Trust established by the
participant; and current payment of the balance of such amount in cash directly to the participant, provided that the payment made directly to the participant shall approximate the aggregate federal,
state and local individual income taxes attributable to the amount paid pursuant to this subparagraph 9-2(b) (as determined pursuant to the tax rates set forth in
subsection 9-14). No payments shall be made under this subsection 9-2 as of any December 31 after the calendar year in which the participant retires or
otherwise terminates employment with Abbott. 

13

 

        9-3.  Present
values for the purposes of subsections 9-1, 9-2, 9-4 and 9-5 shall be determined using
reasonable actuarial assumptions specified for this purpose by Abbott and consistently applied. The "current value" of the payments previously made to a participant under
subsections 9-1 and 9-2 means the aggregate amount of such payments, with interest thereon (at the rate specified for this purpose by Abbott). For purposes of
subsections 9-4 and 9-5, "Projected Taxes" with respect to any payment of supplemental pension benefits under subsections 9-1 or 9-2, shall mean
the taxes which Abbott projects will be incurred by the participant on the income earned (i) on the payment (net of taxes) that is made pursuant to subsections 9-1 or
9-2, (ii) on the corresponding payment(s) for Projected Taxes that are made pursuant to subsection 9-4 and, if applicable, 9-5 and (iii) on the
accumulated income earned on any of the payments covered by parts (i) and (ii) hereof, during the life of such participant's Grantor Trust (or during the period that such Grantor Trust
would have been in existence if the participant had elected to receive all of the payments under subsections 9-1 and 9-2 in cash). In calculating such Projected Taxes, Abbott
shall use the aggregate of the current federal, state and local tax rates specified by subsection 9-14. 

        9-4.  Effective
as of December 31, 1995, or any subsequent December 31, as a result of any payment made to a Qualified Participant for any calendar
year pursuant to subsection 9-1 or 9-2, Abbott shall also make a corresponding payment to such Qualified Participant in the amount of the present value of the Projected
Taxes. A "Qualified Participant" is either (i) a participant who as of December 31, 1995 was actively employed by Abbott and who had previously received, or as of such date was qualified
to receive, a payment under subsection 9-1; or (ii) a participant who as of any subsequent December 31 qualifies to receive a payment pursuant to
subsection 9-1. The payment for Projected Taxes under this subsection 9-4 shall be made to the Qualified Participant in 

14

   
the identical manner that the payment under subsection 9-1 or 9-2 was made. For example, (a) if the Qualified Participant elected to receive the payment under
subsection 9-1 directly in cash, then Abbott shall also pay the present value of the Projected Taxes on such payment in cash directly to the Qualified Participant, and (b) if
the Qualified Participant elected to receive the payment under subsection 9-1 into a Grantor Trust established by the Qualified Participant, then Abbott shall pay the present value of the
Projected Taxes on such payment as follows: current payment of a portion of such present value (determined as of that December 31) in cash for such Qualified Participant directly to a Grantor
Trust established by such participant, and current payment of the balance of such present value in cash directly to such Qualified Participant, provided that the payment made directly to such
participant shall approximate the aggregate federal, state and local individual income taxes attributable to the amount paid pursuant to this subparagraph 9-4(b) (as determined
pursuant to the tax rates set forth in subsection 9-14). No payments shall be made under this subsection 9-4 as of any December 31 after the calendar year
in which the participant retires or otherwise terminates employment with Abbott. 

        9-5.  In
the event that Abbott has made any payment for projected Taxes under subsection 9-4 in cash directly to the Qualified Participant and there
is a subsequent increase in the tax rates for such Qualified Participant, Abbott shall make a further cash payment to such Qualified Participant in the amount of (a) the present value of the
Projected Taxes on the payments that were made under subsections 9-1 and 9-2 in cash directly to such Qualified Participant using the actual tax rates for previous years and
the new tax rates (determined in accordance with subsection 9-14) for the current and subsequent years, less (b) the amount that would have been in the Qualified Participant's Tax
Payment Account with respect to the payments made under subsections 9-1 and 9-2 in cash directly 

15

 

to
the Participant, if such payments had instead been made to the Qualified Participant's Grantor Trust. Such amount shall be paid by Abbott directly to the Qualified Participant in cash. In the event
that Abbott has made any payment for Projected Taxes under subsection 9-4 to the Qualified Participant's Grantor Trust, then Abbott shall as of December 31 of each year, make a
further payment to the Qualified Participant in the amount of (a) the present value (as of that December 31) of the Projected Taxes on the payments that were made under subsections
9-1 and 9-2 into the Qualified Participant's Grantor Trust less (b) the balance of such Qualified Participant's Tax Payment Account (as described in
subsection 9-8). Such payment shall
be paid by Abbott as follows: the current payment of a portion of such amount in cash directly to the Qualified Participant's Grantor Trust and the current payment of the balance of such amount in
cash directly to such Qualified Participant; provided, that the payments made directly to such Qualified Participant shall approximate the aggregate federal, state and local individual income taxes
attributable to the amount paid pursuant to this subsection 9-5. No payments shall be made under this subsection 9-5 for any year following the participant's
death. In the event that the calculation required by this subsection 9-5 for a Grantor Trust demonstrates that there has been an overpayment of projected taxes, such overpayment shall be
held within the Grantor Trust in an Excess Tax Account and may be used by Abbott as a credit against any payments due hereunder or as specified in subsection 9-12. 

        9-6.  For
each Qualified Participant whose Grantor Trust has received a payment pursuant to subsection 9-4, Abbott, as the administrator of such
Grantor Trust, shall direct the trustee to distribute to the participant from the income of such Grantor Trust, a sum of money sufficient to pay 

16

 

the
taxes on trust earnings for such year. The taxes shall be calculated by multiplying the income of the Grantor Trust by the aggregate of the federal, state, and local tax rates (determined in
accordance with subsection 9-14). 

        9-7.  A
participant shall be deemed to have irrevocably waived and shall be foreclosed from any right to receive any supplemental pension benefits on that portion
of the supplemental pension that the participant elects to be paid in cash under subsection 9-1 or 9-2. A participant, who has elected to receive a payment under subsection
9-1 or 9-2 to a Grantor Trust, must establish such trust in a form which Abbott determines to be substantially similar to the trust attached to this Supplemental Plan as
Exhibit A. If a participant fails to make an election under subsection 9-1 or 9-2, or if a participant makes an election under subsection 9-1 or
9-2 to receive payment in a Grantor Trust but fails to establish a Grantor Trust, then payment shall be made in cash directly to the participant. Each payment required under
subsections 9-1, 9-2, 9-4 and 9-5 shall be made as soon as practicable after the amount thereof can be ascertained by Abbott, but in no event
later than the last day of the calendar year following the December 31 as of which such payment becomes due. 

        9-8.  Abbott
will establish and maintain a separate Supplemental Pension Account in the name of each participant, a separate After-Tax Supplemental
Pension Account in the name of each participant, and a separate Tax Payment Account in the name of each participant. The Supplemental Pension Account shall reflect any amounts: (i) paid to a
participant (including amounts paid to a participant's Grantor Trust) pursuant to subsections 9-1 and 9-2; (ii) credited to such Account pursuant to subsection
9-9; and (iii) disbursed to a participant for supplemental pension benefits (or which would have been disbursed to a participant if the participant had not elected to receive a cash
disbursement pursuant to subsections 9-1 and 9-2). The After-Tax Supplemental Pension Account 

17

 

shall
also reflect such amounts but shall be maintained on an after-tax basis. The Tax Payment Account shall reflect any amounts (i) paid to a Qualified Participant (net of taxes)
pursuant to subsections 9-4 and 9-5 and (ii) disbursed to a participant for the payment of taxes pursuant to subsection 9-6. The accounts established
pursuant to this subsection 9-8 are for the convenience of the administration of the Plan and no trust relationship with respect to such accounts is intended or should be implied. 

        9-9.  As
of the end of each calendar year, a participant's Supplemental Pension Account shall be credited with interest calculated at a reasonable rate of
interest specified for this purpose by Abbott and consistently applied. Any amount so credited shall be referred to as a participant's "Interest Accrual". The calculation of the Interest Accrual shall
be based on the balance of the payments made pursuant to subsections 9-1 and 9-2 and any Interest Accrual thereon from previous years. As of the end of each calendar year a
participant's After-Tax Supplemental Pension Account shall be credited with interest which shall be referred to as the After-Tax Interest Accrual. The "After-Tax
Interest Accrual" shall be an amount equal to (a) the Interest Accrual credit to the participant's Supplemental Pension Account for such year less (b) the product of (i) the
amount of such Interest Accrual multiplied by (ii) the aggregate of the federal, state and local income tax rates (determined in accordance with subsection 9-14). The Excess
Interest Account shall be the cumulative amount, if any, by which the net income earned by the Grantor Trust on the payments made pursuant to Sections 9-1, 9-2,
9-4, 9-5 and 9-10 (and interest earned thereon) for all years that the Grantor Trust has been in existence exceeds the After-Tax Interest Accrual for
such years. 

18

 

        9-10.   In
addition to any payment made to a participant for any calendar year pursuant to subsections 9-1, 9-2,
9-4 and 9-5, Abbott shall also make a payment to a participant's Grantor Trust (a "Guaranteed Rate Payment"), for any year in which the net income of such trust does not equal
or exceed the participant's After-Tax Interest Accrual for that year. The Guaranteed Rate Payment shall equal the difference between the participant's After-Tax Interest
Accrual and such net income of the participant's Grantor Trust for the year, and shall be paid within 180 days of the end of that year. Any funds in a participant's Excess Interest Account may
be used by Abbott as a credit against any Guaranteed Rate Payment due to the participant under this subsection 9-10 or as specified in subsection 9-12. No payments shall be
made under this subsection 9-10 for any year following the year of the participant's death. 

        9-11.   If
at any time after a participant's retirement or other termination of employment with Abbott, there is no longer a balance in his or her
Grantor Trust, then such participant (or his or her surviving spouse if such spouse is entitled to periodic payments from the Grantor Trust) shall be entitled to a "Continuation Payment" under this
subsection 9-11. The amount of the Continuation Payment shall be equal to the amount of the supplemental pension that would have been payable to the participant (or surviving spouse) had
no payments been made to or for the participant's Grantor Trust under subsections 9-1 and 9-2. Continuation Payments shall be made monthly, beginning with the month in which
there is no longer a sufficient balance in the participant's Grantor Trust and ending with the month of the participant's (or surviving spouse's) death. Payments under this subsection 9-11
shall be made by the employers (in such proportions as Abbott shall designate) 

19

 

directly
from their general corporate assets. Appropriate adjustments to the Continuation Payments shall be made in the event distributions have been made from a participant's Grantor Trust for
reasons other than benefit payments to the participant or surviving spouse. 

        9-12.   To
the extent that Abbott is obligated to make a payment to a participant under subsections 9-1, 9-2,
9-4, 9-5 or 9-10, Abbott shall have the right to offset such payment with any funds in the participant's Excess Interest Account or Excess Tax Account. In addition,
any funds in a participant's Excess Tax Account may be used by Abbott as a credit against any future Guaranteed Rate Payment due to the participant under subsection 9-10. 

        9-13.   For
participants who are not Qualified Participants that received any payment pursuant to subsection 9-4, in addition to the
payments provided under subsections 9-1 and 9-2, each participant shall also be entitled to a Tax Gross Up payment for each year there is a balance in his or her Supplemental
Pension Account. The "Tax Gross Up" shall approximate: (a) the product of (i) the participant's After-Tax Interest Accrual for the year (calculated using the greater of the
rate of return of the Grantor Trusts or the rate specified in subsection 9-9), multiplied by (ii) the aggregate of the federal, state and local tax rates (determined in accordance
with subsection 9-14) plus (b) an amount equal to the product of (i) any payment made pursuant to this subsection 9-13, multiplied by (ii) the aggregate
tax rate determined under subparagraph 9-13(a)(ii) above, such that the participant is fully compensated for taxes on payments made hereunder. Payment of the Tax Gross Up shall be
made by the employers (in such proportions as Abbott shall designate) directly from their general corporate assets. The Tax Gross Up for a year shall be paid to the participant as soon as practicable
after the amount of the Tax Gross Up can be ascertained by Abbott, but in no event later than the last 

20

 

day
of the calendar year following the calendar year to which the Tax Gross Up relates. No payments shall be made under this subsection 9-13 for any year following the year of the
participant's death. 

        9-14.   For
purposes of this Supplemental Plan, a participant's federal income tax rate shall be deemed to be the highest marginal rate of federal
individual income tax in effect in the calendar year in which a calculation under this Supplemental Plan is to be made, and state and local tax rates shall be deemed to be the highest marginal rates
of individual income tax in effect in the state and locality of the participant's residence in the calendar year for which such a calculation is to be made, net of any federal tax benefits. 

21

  

	 	 	
SUPPLEMENTAL BENEFIT

GRANTOR TRUST	 	 

        THIS AGREEMENT, made this            day
of                        , 19    , by and
between                        , (the "grantor"), and The Northern Trust
Company, located at Chicago, Illinois, as trustee (the "trustee"), 

WITNESSETH
THAT: 

        WHEREAS,
the grantor desires to establish and maintain a trust to hold certain benefits received by the grantor under the Abbott Laboratories Supplemental Pension Plan, as it may be
amended from time to time. 

        NOW,
THEREFORE, IT IS AGREED as follows: 

ARTICLE I

Introduction  

        I-1.    Name.    This agreement and the trust hereby evidenced (the "trust") may be referred to as the
"                        Supplemental Benefit Grantor Trust." 

        I-2.    The Trust Fund.    The "trust fund" as at any date means all property then held by the trustee
under this agreement. 

        I-3.    Status of the Trust.    The trust shall be irrevocable. The trust is intended to constitute a
grantor trust under Sections 671-678 of the Internal Revenue Code, as amended, and shall be construed accordingly. 

        I-4.    The Administrator.    Abbott Laboratories ("Abbott") shall act as the "administrator" of the
trust, and as such shall have certain powers, rights and duties under this agreement as described below. Abbott will certify to the trustee from time to time the person or persons authorized to act on
behalf of Abbott as the administrator. The trustee may rely on the latest certificate received without further inquiry or verification. 

        I-5.    Acceptance.    The trustee accepts the duties and obligations of the "trustee" hereunder, agrees
to accept funds delivered to it by the grantor or the administrator, and agrees to hold such funds (and any proceeds from the investment of such funds) in trust in accordance with this agreement. 

22

 
ARTICLE II

Distribution of the Trust Fund  

        II-1.    Supplemental Pension Account.    The administrator shall maintain a "supplemental pension
account" under the trust. As of the end of each calendar year, the administrator shall charge the account with all distributions made from the account during that year; and credit the account with its
share of trust income and realized gains and charge the account with its share of trust expenses and realized losses for the year. 

        II-2.    Distributions Prior to the Grantor's Death.    Principal and accumulated income shall not be
distributed from the trust prior to the grantor's retirement or other termination of employment with Abbott or a subsidiary of Abbott (the grantor's "settlement date"); provided that, each year the
administrator may direct the trustee to distribute to the grantor a portion of the income of the trust fund for that year, with the balance of such income to be accumulated in the trust. The
administrator shall inform the trustee of the grantor's settlement date. Thereafter, the trustee shall distribute the amounts from time to time credited to the supplemental pension account to the
grantor, if then living, in the same manner, at the same time and over the same period as the pension payable to the grantor under Abbott Laboratories Annuity Retirement Plan. 

        II-3.    Distributions After the Grantor's Death.    The grantor, from time to time may name any person or
persons (who may be named contingently or successively and who may be natural persons or fiduciaries) to whom the principal of the trust fund and all accrued or undistributed income thereof shall be
distributed upon the grantor's death. The grantor may direct that such amounts be distributed in a lump sum or, if the beneficiary is the grantor's spouse (or a trust [a
"Trust"] for which the grantor's spouse is the sole income beneficiary), in the same manner, at the same time and over the same period as the pension payable to the grantor's surviving
spouse under the Abbott Laboratories Annuity Retirement Plan. If the grantor directs the same method of distribution as the pension payable to the surviving spouse under the Abbott Laboratories
Annuity Retirement Plan to the spouse as beneficiary, any amounts remaining at the death of the spouse beneficiary shall be distributed in a lump sum to the executor or administrator of the spouse
beneficiary's estate. If the grantor directs the same method of distribution as the pension payable to the surviving spouse under the Abbott Laboratories Annuity Retirement Plan to a Trust for which
the grantor's spouse is the sole income beneficiary, any amounts remaining at the death of the spouse shall be distributed in a lump sum to such Trust. Despite the foregoing, if (i) the
beneficiary is a Trust for which the grantor's spouse is the sole income beneficiary, (ii) payments are being made pursuant to this paragraph II-3 other than in a lump sum
and (iii) income earned by the trust fund for the year exceeds the amount of the annual installment payment, then such Trust may elect to withdraw such excess income by written notice to the
trustee. Each designation shall revoke all prior designations, shall be in writing and shall be effective only when filed by the grantor with the administrator during the grantor's lifetime. If the
grantor fails to direct a method of distribution, the distribution shall be made in a lump sum. If the grantor fails to designate a beneficiary as provided above, then on the grantor's death, the
trustee shall distribute the balance of the trust fund in a lump sum to the executor or administrator of the grantor's estate." 

23

 

        II-4.    Facility of Payment.    When a person entitled to a distribution hereunder is under legal
disability, or, in the trustee's opinion, is in any way incapacitated so as to be unable to manage his or her financial affairs, the trustee may make such distribution to such person's legal
representative, or to a relative or friend of such person for such person's benefit. Any distribution made in accordance with the preceding sentence shall be a full and complete discharge of any
liability for such distribution hereunder. 

        II-5.    Perpetuities.    Notwithstanding any other provisions of this agreement, on the day next
preceding the end of 21 years after the death of the last to die of the grantor and the grantor's descendants living on the date of this instrument, the trustee shall immediately distribute any
remaining balance in the trust to the beneficiaries then entitled to distributions hereunder. 

ARTICLE III

Management of the Trust Fund  

        III-1.    General Powers.    The trustee shall, with respect to the trust fund, have the following powers,
rights and duties in addition to those provided elsewhere in this agreement or by law: 

	(a)
	Subject
to the limitations of subparagraph (b) next below, to sell, contract to sell, purchase, grant or exercise options to purchase, and otherwise deal with all assets of the
trust fund, in such way, for such considerations, and on such terms and conditions as the trustee decides.

	(b)
	To
invest and reinvest the trust fund, without distinction between principal and income, in obligations of the United States Government and its agencies or which are backed by the
full faith and credit of the United States Government and in any mutual funds, common trust funds or collective investment funds which invest solely in such obligations, provided that to the extent
practicable no more than Ten Thousand Dollars ($10,000) shall be invested in such mutual funds, common trust funds or collective investment funds at any time; and any such investment made or retained
by the trustee in good faith shall be proper despite any resulting risk or lack of diversification or marketability.

	(c)
	To
deposit cash in any depositary (including the banking department of the bank acting as trustee) without liability for interest, in amounts not in excess of those reasonably
necessary to make distributions from the trust.

	(d)
	To
borrow from anyone, with the administrator's approval, such sum or sum from time to time as the trustee considers desirable to carry out this trust, and to mortgage or pledge all
or part of the trust fund as security. 

24

 

	(e)
	To
retain any funds or property subject to any dispute without liability for interest and to decline to make payment or delivery thereof until final adjudication by a court of
competent jurisdiction or until an appropriate release is obtained.

	(f)
	To
begin, maintain or defend any litigation necessary in connection with the administration of this trust, except that the trustee shall not be obliged or required to do so unless
indemnified to the trustee's satisfaction.

	(g)
	To
compromise, contest, settle or abandon claims or demands.

	(h)
	To
give proxies to vote stocks and other voting securities, to join in or oppose (alone or jointly with others) voting trusts, mergers, consolidations, foreclosures, reorganizations,
liquidations, or other changes in the financial structure of any corporation, and to exercise or sell stock subscription or conversion rights.

	(i)
	To
hold securities or other property in the name of a nominee, in a depositary, or in any other way, with or without disclosing the trust relationship.

	(j)
	To
divide or distribute the trust fund in undivided interests or wholly or partly in kind.

	(k)
	To
pay any tax imposed on or with respect to the trust; to defer making payment of any such tax if it is indemnified to its satisfaction in the premises; and to require before making
any payment such release or other document from any lawful taxing authority and such indemnity from the intended payee as the trustee considers necessary for its protection.

	(l)
	To
deal without restriction with the legal representative of the grantor's estate or the trustee or other legal representative of any trust created by the grantor or a trust or estate
in which a beneficiary has an interest, even though the trustee, individually, shall be acting in such other capacity, without liability for any loss that may result.

	(m)
	Upon
the prior written consent of the administrator, to appoint or remove by written instrument any bank or corporation qualified to act as successor trustee, wherever located, as
special trustee as to part or all of the trust fund, including property as to which the trustee does not act, and such special trustee, except as specifically limited or provided by this or the
appointing instrument, shall have all of the rights, titles, powers, duties, discretions and immunities of the trustee, without liability for any action taken or omitted to be taken under this or the
appointing instrument.

	(n)
	To
appoint or remove by written instrument any bank, wherever located, as custodian of part or all of the trust fund, and each such custodian shall have such rights, powers, duties
and discretions as are delegated to it by the trustee. 

25

 

	(o)
	To
employ agents, attorneys, accountants or other persons, and to delegate to them such powers as the trustee considers desirable, and the trustee shall be protected in acting or
refraining from acting on the advice of persons so employed without court action.

	(p)
	To
perform any and all other acts which in the trustee's judgment are appropriate for the proper management, investment and distribution of the trust fund. 

        III-2.    Principal and Income.    Any income earned on the trust fund which is not distributed as
provided in Article II shall be accumulated and from time to time added to the principal of the trust. The grantor's interest in the trust shall include all assets or other property held by the
trustee hereunder, including principal and accumulated income. 

        III-3.    Statements.    The trustee shall prepare and deliver monthly to the administrator and annually
to the grantor, if then living, otherwise to each beneficiary then entitled to distributions under this agreement, a statement (or series of statements) setting forth (or which taken together set
forth) all investments, receipts, disbursements and other transactions effected by the trustee during the reporting period; and showing the trust fund and the value thereof at the end of such period. 

        III-4.    Compensation and Expenses.    All reasonable costs, charges and expenses incurred in the
administration of this trust, including compensation to the trustee, any compensation to agents,
attorneys, accountants and other persons employed by the trustee, and expenses incurred in connection with the sale, investment and reinvestment of the trust fund shall be paid from the trust fund. 

ARTICLE IV

General Provisions  

        IV-1.    Interests Not Transferable.    The interests of the grantor or other persons entitled to
distributions hereunder are not subject to their debts or other obligations and may not be voluntarily or involuntarily sold, transferred, alienated, assigned or encumbered. 

        IV-2.    Disagreements as to Acts.    If there is a disagreement between the trustee and anyone as to any
act or transaction reported in any accounting, the trustee shall have the right to a settlement of its account by any court. 

        IV-3.    Trustee's Obligations.    No power, duty or responsibility is imposed on the trustee except as
set forth in this agreement. The trustee is not obliged to determine whether funds delivered to or distributions from the trust are proper under the trust, or whether any tax is due or payable as a
result of any such delivery or distribution. The trustee shall be protected in making any distribution from the trust as directed pursuant to Article II without inquiring as to whether the
distributee is 

26

 

entitled
thereto; the trustee shall not be liable for any distribution made in good faith without written notice or knowledge that the distribution is not proper under the terms of this agreement; and
the trustee shall not be liable for any action taken because of the specific direction of the administrator. 

        IV-4.    Good Faith Actions.    The trustee's exercise or non-exercise of its powers and
discretions in good faith shall be conclusive on all persons. No one shall be obliged to see to the application of any money paid or property delivered to the trustee. The certificate of the trustee
that it is acting according to this agreement will fully protect all persons dealing with the trustee. 

        IV-5.    Waiver of Notice.    Any notice required under this agreement may be waived by the person
entitled to such notice. 

        IV-6.    Controlling Law.    The laws of the State of Illinois shall govern the interpretation and
validity of the provisions of this agreement and all questions relating to the management, administration, investment and distribution of the trust hereby created. 

        IV-7.    Successors.    This agreement shall be binding on all persons entitled to distributions hereunder
and their respective heirs and legal representatives, and on the trustee and its successors. 

ARTICLE V

Changes in Trustee  

        V-1.    Resignation or Removal of Trustee.    The trustee may resign at any time by giving thirty days'
advance notice to the administrator and the grantor. The administrator may remove a trustee by written notice to the trustee and the grantor. 

        V-2.    Appointment of Successor Trustee.    The administrator shall fill any vacancy in the office of
trustee as soon as practicable by written notice to the successor trustee; and shall give prompt written notice thereof to the grantor, if then living, otherwise to each beneficiary then entitled to
payments or distributions under this agreement. A successor trustee shall be a bank (as defined in Section 581 of the Internal Revenue Code, as amended). 

        V-3.    Duties of Resigning or Removed Trustee and of Successor Trustee.    A trustee that resigns or is
removed shall furnish promptly to the administrator and the successor trustee an account of its administration of the trust from the date of its last account. Each successor trustee shall succeed to
the title to the trust fund vested in its predecessor without the signing or filing of any instrument, but each predecessor trustee shall execute all documents and do all acts necessary to vest such
title of record in the successor trustee. Each successor trustee shall have all the powers conferred by this agreement as if originally named trustee. No successor trustee shall be personally liable
for any act or failure to act of a predecessor trustee. With the approval of the administrator, a successor trustee may accept the account furnished and the property delivered by a predecessor trustee
without incurring any liability for so doing, and such acceptance will be complete discharge to the predecessor trustee. 

27

 
ARTICLE VI

Amendment and Termination  

        VI-1.    Amendment.    With the consent of the administrator, this trust may be amended from time to time
by the grantor, if then living, otherwise by a majority of the beneficiaries then entitled to payments or distributions hereunder, except as follows: 

	(a)
	The
duties and liabilities of the trustee cannot be changed substantially without its consent.

	(b)
	This
trust may not be amended so as to make the trust revocable. 

        VI-2.    Termination.    This trust shall not terminate, and all rights, titles, powers, duties,
discretions and immunities imposed on or reserved to the trustee, the administrator, the grantor and the beneficiaries shall continue in effect, until all assets of the trust have been distributed by
the trustee as provided in Article II. 

*        *        *

        IN
WITNESS WHEREOF, the grantor and the trustee have executed this agreement as of the day and year first above written. 

	

 	

  
 Grantor
	

 	

The Northern Trust Company, as Trustee
	

 	

By	

	

 	

Its	

28

QuickLinks

Exhibit 10.1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]