Document:

exhibit_10pt3.htm

EXHIBIT 10.3

    WALGREEN CO. MANAGEMENT
INCENTIVE PLAN

    (As
amended and restated effective September 1, 2008)

    

    
      	
              1.

            	
              Purpose:  The
      purpose of the Walgreen Co. Management Incentive Plan (the "Plan") is to
      provide special incentive and motivation to management-level employees
      through annual bonuses.

            

    

    

    
      	
              2.

            	
              Definitions:  Whenever
      used in the Plan, the following terms shall have the meanings set forth
      below, unless the context clearly provides
  otherwise:

            

    

    

    
      	
              a.  

            	
              The
      term "Base Salary" shall mean the base salary paid during the fiscal year
      to a Participant, and any such base salary earned but deferred or reduced
      pursuant to a Company Section 401(k) plan, or Section 125 plan, or another
      Company deferral plan.  The term Base Salary does not include
      any incentive or performance bonuses, Christmas bonus, stock purchase
      discounts, or other fringe benefits or supplementary
      remuneration.

            

    

    

    
      	
              b.  

            	
              The
      term "Committee" shall mean the Compensation Committee of the Board of
      Directors of the Company.

            

    

    

    
      	
              c.  

            	
              The
      term "Company" shall mean Walgreen Co., an Illinois corporation, and all
      wholly-owned subsidiaries of Walgreen
Co.

            

    

    

    
      	
              d.  

            	
              The
      term “Disability” shall mean total disability as determined by the
      Committee, consistent with how the Company determines whether termination
      of employment is upon disability for other benefit plan
      purposes.

            

    

    

    
      	
              e.  

            	
              The
      term "Employee" shall mean any employee of the Company, including, but not
      limited to, the officers of Walgreen Co.  Employee shall not
      include any person who is not classified as an employee in the common law
      sense in the records of the Company, even if those records are
      subsequently determined to have been in error or the person is
      subsequently reclassified as an employee.  For example, no
      person shall be considered to be an Employee for any period of time during
      which he or she:  (1) is a leased employee; (2) is an
      independent contractor; or (3) is otherwise not classified as an employee
      in the records of the Company.

            

    

    

    
      	
              f.  

            	
              The
      term "Extraordinary Items" shall mean significant transactions that are
      different from the typical or customary business transactions and are not
      expected to occur frequently as determined by the informed professional
      judgment of the Chief Financial Officer of the Company after taking into
      consideration all the facts involved in a particular situation and the
      objectives of the Plan.

            

    

    

    
      	
              g.  

            	
              The
      term "Individual Adjustment" shall mean the amount of any increase or
      reduction in the bonus share that would otherwise be allocated to a
      Participant.

            

    

    

    
      	
              h.  

            	
              The
      term "Participant" shall mean any Employee who participates in and is
      eligible to receive incentive compensation pursuant to paragraph 3 of the
      Plan.

            

    

    

    
      	
              i.  

            	
              The
      term "Plan Year" shall mean the fiscal year of Walgreen Co., which runs
      from September 1 to the following August
31.

            

    

    

    
      	
              j.  

            	
              The
      term “Retirement” shall
      mean termination of employment from the Company in good standing, as
      determined by the Committee or its delegates, and after having attained at
      least age 55 and at least 10 years of continuous
      service.

            

    

    

    
      	
              k.  

            	
              The
      term "Salary Grade" shall mean the salary grades to which job positions
      are assigned under the Walgreen Co. Salary Administration
      Program.  To the extent such Program is revised, references
      hereunder to Salary Grade and specific Salary Grade levels shall be
      appropriately adjusted by the Committee or its delegates to reflect such
      revised Program.

            

    

    

    
      	
              3.  

            	
              Eligibility and
      Participation:  The Committee shall have the authority
      and discretion to determine the class or classes of Employees eligible to
      participate in the Plan for any Plan Year.  As of the effective
      date of this amended and restated Plan, the following categories of
      Employees shall be eligible to participate in the
  Plan:

            

    

    

    
      	
              a.  

            	
              Any
      Employee whose job position is within Salary Grades 12 and above or their
      equivalent and is not covered by another Company management incentive
      plan; and

            

    

    

    
      	
              b.  

            	
              Any
      other Employee who is approved for participation by the Committee, based
      on the recommendation of Company management that he or she is in a
      position to make a substantial contribution to the success of the Company
      by exceptional service in a supervisory or staff
  position.

            

    

    

    The
Committee shall also have the authority to approve or deny Plan participation to
any individual Employee.  No Employee shall have a contractual right
to receive any incentive award or payment, as all awards and payments are
ultimately subject to the approval and authorization of the
Committee.

    

    
      	
              4.  

            	
              Determination of
      Bonuses:  Participant bonuses for each Plan Year shall be
      determined as follows:

            

    

    

    
      	
              a.  

            	
              Prior
      to the beginning of the Plan Year, or as early in the Plan Year as is
      practical considering the circumstances, management will recommend for
      Committee approval the bonus structure and accompanying details for that
      Plan Year.  Such recommendation shall cover the following areas
      and any other pertinent bonus
provisions:

            

    

    

    
      	
              (1)  

            	
              The
      class or class of employees eligible to participate in the Plan for such
      Plan Year.

            

    

    

    
      	
              (2)  

            	
              The
      performance measure or measures upon which bonuses shall be based, and the
      extent to which such measures shall be based on Company, division, or
      business unit performance, or some combination thereof.  The
      application of such performance measures may vary among different
      categories of employees.

            

    

    

    
      	
              (3)  

            	
              Threshold,
      target and maximum bonus levels (typically expressed as a percentage of
      Base Salary), and the corresponding Company performance measure or
      measures.  Such bonus levels may vary for different groups of
      Participants as determined by the
Committee.

            

    

    

    
      	
              (4)  

            	
              Any
      Individual Adjustments that may be applied, whether based on
      pre-established individual performance measures or determined on a
      discretionary basis.

            

    

    

    
      	
              b.  

            	
              After
      the end of each Plan Year when the computations and accounting
      determinations required to determine Plan bonuses have been completed, the
      highest-ranking accounting officer of the Company will report to the
      Committee that in his or her opinion those computations and accounting
      determinations were made in reasonable accordance with the terms of the
      Plan, and generally accepted accounting principles, subject to any
      adjustments provided for under the terms of paragraph 4c of the Plan and
      the certifications provided for under the terms of this paragraph
      4b.

            

    

    

    
      	
              c.  

            	
              In
      the event that the Company experiences any Extraordinary Items, the
      Finance Committee of the Board of Directors will recommend to the
      Committee, which will in turn make its recommendations to the full Board
      of Directors, whether such Extraordinary Items will be included in or
      excluded from the determination of the Company’s financial performance
      measure or measures used in determining the bonus for the Plan Year, and a
      report of the Board of Directors' decision will be delivered in writing to
      the Chief Accounting Officer of the
Company.

            

    

    

    
      	
              d.  

            	
              The
      bonuses earned by Participants under the terms of the Plan will be paid to
      Participants after the first meeting of the Board of Directors which
      follows the end of the applicable Plan Year, but in no event later than
      the date by which such bonuses must be paid in order to be allowed as a
      Federal income tax deduction for the fiscal year coinciding with such Plan
      Year.

            

    

    

    
      	
              e.  

            	
              Except
      as otherwise determined by the Committee or its delegates, bonuses for
      Participants in salary grades 12 and 13 (or their equivalent) shall be a
      portion of full bonuses for such Participants’ first and second years of
      Plan participation, as follows:

            

    

    

    
      	
               
      

            	
              (1)

            	
              One
      third for the first full or partial Plan Year of participation;
      and

            

    

    

    
      	
               
      

            	
              (2)

            	
              Two
      thirds for the second Plan Year of
  participation.

            

    

    

    For
purposes of the above, the following periods shall count for purposes of
determining years of Plan participation:

    

    
      	
               
      

            	
              (3)

            	
              Periods
      of Plan participation in Salary Grades 12 and
  13;

            

    

    

    
      	
               
      

            	
              (4)

            	
              Periods
      of participation in other Company incentive plans;
  and

            

    

    

    
      	
               
      

            	
              (5)

            	
              Such
      other periods of Company employment as determined by the Committee in its
      discretion.

            

    

    

    
      	
              5.  

            	
              Participation for
      Partial Plan Years:

            

    

    

    
      	
              a.  

            	
              Any
      Plan Participant whose employment with the Company terminates during a
      Plan Year for reasons other than Retirement, Disability or death shall not
      be eligible for a bonus for that Plan Year.  It is not intended
      that this paragraph of the Plan shall prohibit Company management from
      recommending to the Committee for its approval a discretionary bonus if in
      the sole judgment of management such a discretionary bonus is
      warranted.

            

    

    

    
      	
              b.  

            	
              A
      Participant who is eligible for a bonus hereunder for a portion of a Plan
      Year (due to hire, promotion or transfer during that Plan Year), shall
      generally be eligible for a bonus under this Plan based on Base Salary
      earned during the eligible portion of the Plan
      Year.  Notwithstanding the foregoing, the bonus amount payable
      to a Participant who is hired within the Plan Year, moves to a different
      bonusable grade level during the Plan Year, or receives payment under
      another Company incentive plan during the current or prior year, shall be
      subject to the discretion of the Committee and its
    delegates.

            

    

    

    
      	
              c.  

            	
              Subject
      to the end-of-year employment requirement set forth in paragraph 5a above,
      a Plan Participant who is on a Company-approved leave of absence for a
      portion of a Plan Year shall remain eligible for a bonus for up to the
      first six months of such leave of absence.  Any short-term
      disability pay during any such leave of absence shall be included in such
      Participant’s bonusable Base
Salary.

            

    

    

    
      	
              6.  

            	
              Administration.  Subject
      to the terms of the Plan and the powers granted to the full Board of
      Directors, the Committee has ultimate authority and responsibility for the
      administration of the Plan.  The Committee shall have all powers
      necessary to administer the Plan, including, without limitation, the power
      to interpret the provisions of the Plan, to decide all questions of
      eligibility, to establish rules and forms for the administration of the
      Plan, and to delegate specific duties and responsibilities to officers or
      other employees of the Company.  All determinations,
      interpretations, rules, and decisions of the Committee with respect to any
      question arising out of or in connection with the administration,
      interpretation and application of the Plan and the rules and regulations
      promulgated hereunder shall be final, conclusive and binding upon all
      persons having or claiming to have any interest or right under the
      Plan.

            

    

    

    
      	
              7.  

            	
              Indemnification.  The
      Company shall indemnify the members of the Committee, the other members of
      the Board of Directors and all Company officers and other employees
      responsible for administering the Plan against any and all liabilities
      arising by reason of any act or failure to act made in good faith in
      accordance with the provisions of the Plan.  For this purpose,
      liabilities include expenses reasonably incurred in the defense of any
      claim relating to the Plan.

            

    

    

    
      	
              8.  

            	
              Amendment and
      Termination.  The Plan may be amended from time to time
      or terminated at any time by the Board of Directors of Walgreen
      Co.

            

    

    

    
      	
              9.  

            	
              General Plan
      Provisions:

            

    

    

    
      	
              a.  

            	
              Nothing
      in this Plan is intended to limit the authority of the Committee to award
      additional discretionary bonuses to one or more senior executives of the
      Company as the Committee deems appropriate from time to
    time.

            

    

    

    
      	
              b.  

            	
              The
      impact of the payment of bonuses under the Plan on Participants’ other
      Company employee benefits shall be based on the governing terms of such
      other employee benefit plans and programs, or as determined by the
      Committee or its delegates, where
necessary.

            

    

    

    
      	
              c.  

            	
              Neither
      the existence of the Plan nor any substantive aspect of the Plan shall
      give any Participant the right to continued employment with the Company
      for any period of time or shall interfere with the right of the Company to
      discipline or discharge a Participant at any
  time.

            

    

    

    
      	
              d.  

            	
              The
      Company shall withhold from any bonus payment made pursuant to the Plan
      any taxes required to be withheld from such payment under local, state or
      federal law.

            

    

    

    
      	
              e.  

            	
              Bonuses
      otherwise payable hereunder may be paid on a deferred basis pursuant to
      the Walgreen Co. Section 162(m) Deferred Compensation Plan or pursuant to
      any other deferred compensation program that may be implemented with
      Committee approval in compliance with the requirements of Internal Revenue
      Code Section 409A and the regulations
  thereunder.

            

    

    

    
      	
              f.  

            	
              The
      Company shall not be required to fund or otherwise segregate any cash or
      other assets for purposes of meeting its obligations under the
      Plan.

            

    

    

    
      	
              g.  

            	
              The
      provisions of the Plan shall be construed and interpreted according to the
      laws of the State of Illinois, except as preempted by federal
      law.

            

    

    

    
      	
              h.  

            	
              A
      Participant shall not have any right to pledge, hypothecate, anticipate or
      in any way create a lien upon any amounts provided under this Plan and no
      benefits payable hereunder shall be assignable in anticipation of payment
      either by voluntary or involuntary acts, or by operation of
      law.

            

    

    

    
      	
              i.  

            	
              The
      Plan shall be binding upon the Company and any successor of the Company,
      including without limitation any corporation or other entity acquiring
      directly or indirectly all or substantially all of the assets of the
      Company whether by merger, consolidation, sale or
      otherwise.  Such successor shall thereafter be deemed the
      "Company" for the purposes of the
Plan.exhibit_10pt11.htm

EXHIBIT 10.11

    SAMPLE – Executive Plan –
Grades 12-17

    

    

    WALGREEN
CO.

    EXECUTIVE
STOCK OPTION PLAN - STOCK OPTION AGREEMENT

    

    Employee
(the "Optionee"):  «First» «MI» «Last»

    Social
Security No.:  «SSN2»

    Date of
Grant:  «Grant_Date»

    Expiration
Date:  «Expiration_Date»

    Number of
Shares Optioned:  «Opts»

    Option
Price Per Share of Common Stock:  «OptPrice»

    

    This
document (referred to below as this “Agreement” or this “Option Agreement”)
spells out the terms and conditions of the stock option granted by Walgreen Co., an
Illinois corporation (the “Company”), to the individual employee designated
above (the “Employee”) pursuant to the Walgreen Co. Executive Stock Option Plan
(the “Plan”) on and as of the Date of Grant designated above.  Except
as otherwise defined herein, capitalized terms used in this Option Agreement
have the respective meanings set forth in the Plan.  The Plan, as in
effect on the date of this Option Agreement and as it may be amended from time
to time, is incorporated in this Option Agreement by reference, and all rights
granted by this Option Agreement are subject to the terms and conditions of the
Plan.

    

    1.         Grant of Stock
Option.  The Company hereby grants to the Optionee a stock
option to purchase all or any part of the Number of Shares set forth above of
Common Stock of the Company, par value $.078125 ("Common Stock"), at the Option
Price set forth above, which is 100% of the fair market value of such Common
Stock on the Date of Grant, in the manner and subject to the terms and
conditions of the Plan and this Option Agreement.  This stock option
is intended to be a "non-qualified stock option" and shall not be treated as an
incentive stock option within the meaning of Section 422 of the Internal Revenue
Code of 1986, as amended.

    

    2.         Vesting/Exercise/Expiration.  The
Optionee may not exercise the stock option granted prior to the “Vesting Date,”
which is the three-year anniversary of the Date of Grant, absent action by the
Compensation Committee of the Board of Directors to waive or alter such
restrictions.  Thereafter, except as hereinafter provided, the
Optionee may exercise the stock option granted herein at any time and from time
to time until the close of business on the Expiration Date set forth
above.  The stock option granted herein may be exercised to purchase
any number of whole shares of Common Stock, except that no purchase shall be for
less than ten (10) full shares, or the remaining unexercised shares, if
less.  This stock option is deemed to be "outstanding" until it has
been exercised in full or expired pursuant to the terms of this Option
Agreement.

    

    3.         Retirement After 10 (but
Less than 25) Years of Service.  If, without having fully
exercised this stock option, the Optionee leaves the employ of the Company (or a
subsidiary of the Company if the Optionee is then in the employ of such
subsidiary), in good standing, after the employee has attained fifty-five (55)
years of age and has completed at least ten (10) but less than twenty-five (25)
years of continuous service with the Company and subsidiaries of the Company,
then the Optionee's right to exercise this stock option shall terminate upon the
earlier of the Expiration Date or a date which is one year following the
Optionee’s retirement, subject to the right of the Compensation Committee of the
Board of Directors to extend the exercise period of this stock
option.  The Optionee may exercise this stock option at any time
between the Vesting Date and the date the Optionee’s right to exercise this
stock option expires.

    

    4.         Retirement After 25 Years of
Service.  If, without having fully exercised this stock option,
the Optionee leaves the employ of the Company (or a subsidiary of the Company if
the Optionee is then in the employ of such subsidiary), in good standing, after
the employee has attained fifty-five (55) years of age and has completed at
least twenty-five (25) years of continuous service with the Company and
subsidiaries of the Company, then the following shall apply:

    

    a.          Subject
to the last sentence of this Section 4, if such retirement occurs prior to the
Vesting Date, then the Optionee may exercise this stock option at any time
between the Vesting Date and the later of one year following the date of
retirement or 150 days following the Vesting Date, at which time this stock
option shall expire, subject to the right of the Compensation Committee of the
Board of Directors to extend the exercise period of this stock
option.

    

    b.          If
such retirement occurs on or after the Vesting Date, then the provisions of
Section 3 above shall apply.

    

    For
purposes of subsection (a) above, if the Optionee’s date of retirement (which is
defined per Company practices as his or her “paid-through date”) is less than 12
months following the Date of Grant, then the maximum number of shares that may
be exercised pursuant to subsection (a) shall be equal to the total Number of
Shares referenced in Section 1 above, multiplied by the number of days between
the Date of Grant and the date of retirement, divided by 365; and the remaining
shares shall be forfeited.

    

    5.         Disability.  If,
without having fully exercised this stock option, the Optionee's employment with
the Company (or a subsidiary of the Company if the Optionee is then in the
employ of such subsidiary) is terminated due to total and permanent disability
(as determined by the Compensation Committee of the Board of Directors or its
designee), then the Optionee's right to exercise this stock option shall
terminate upon the earlier of the Expiration Date or a date which is one year
following the date of termination of employment, subject to the right of the
Compensation Committee of the Board of Directors to extend the exercise period
of this stock option.  The Optionee may exercise this stock option at
any time between the Vesting Date and the date the Optionee’s right to exercise
this stock option expires.

    

    6.         Death.  If,
without having fully exercised this stock option, the Optionee shall die while
in the employ of the Company (or a subsidiary of the Company if the Optionee is
then in the employ of such subsidiary), then this stock option shall be
exercisable by the executor or administrator of the Optionee's estate or by such
person or persons who shall have acquired the Optionee's rights hereunder by
bequest or inheritance or by reason of his or her death, for a period ending on
the earlier of the Expiration Date or one year following the date of the
Optionee's death, subject to the right of the Compensation Committee of the
Board of Directors to extend the exercise period of this stock
option.  This stock option may be exercised at any time between the
Vesting Date and the date the right to exercise this stock option
expires.

    

    7.         Other Termination of
Employment.  If, without having fully exercised this stock
option, the Optionee's employment with the Company (or a subsidiary of the
Company if the Optionee is then in the employ of such subsidiary) is terminated
for reasons other than the Optionee’s retirement (as defined in Section 3 or 4
above), death, or total and permanent disability (as defined in Section 5
above), then the Optionee's right to exercise this stock option shall terminate
as of the date of his or her termination of employment, subject to the right of
the Compensation Committee of the Board of Directors to extend the exercise
period of this stock option.

    

    8.         Disqualifying
Termination.  Notwithstanding any other provision of this
Option Agreement to the contrary, if without having fully exercised this stock
option, the Optionee’s employment with the Company (or a subsidiary of the
Company if the Optionee is then in the employ of such subsidiary) is terminated
for Cause, then the Optionee’s rights to exercise this stock option shall
terminate immediately.  For purposes of this Option Agreement, “Cause”
shall mean: (a) any act or acts of dishonesty committed by the Optionee; or (b)
any violation of the policies or procedures of the Company applicable to the
Optionee’s employment or job category which is either: (i) grossly negligent; or
(ii) willful and deliberate. The determination of
whether the Optionee’s employment has been terminated for Cause shall be within
the discretion of the Compensation Committee of the Board of Directors or its
designee.

    

    9.         Forfeiture of Outstanding
Options Following Termination of Employment.  Notwithstanding
the remainder of this Option Agreement, the Optionee’s remaining right, if any,
to exercise stock options covered by this Option Agreement shall immediately
terminate if and when the Optionee violates any post-employment obligation that
he or she may have to the Company, including but not limited to any
non-competition, non-solicitation, confidentiality, non-disparagement or other
restrictive covenant.

    

    10.         Limited
Transferability.  This stock option is nonassignable and not
transferable other than by beneficiary designation, by will or by the laws of
descent and distribution.  During the lifetime of the Optionee this
stock option and all rights granted hereunder shall be exercisable only by the
Optionee.  Notwithstanding the foregoing, transfers by the Optionee of
options shall be recognized and given effect if such options are transferred to
a grantor trust established pursuant to Sections 674, 675, 676 and 677 of the
Internal Revenue Code of 1986, as amended, for the benefit of the Optionee or a
person or persons who are members of the Optionee's immediate family (or for the
benefit of their descendants); provided that any such transfer has not been
disclaimed prior to the exercise of such options by the trustee of such trust,
and the trustee of such trust certifies to the Compensation Committee of the
Board of Directors or its designee that such transfer occurred without any
payment of consideration for such transfer.

    

    11.         Change in Common
Stock.  In the event of any change in Common Stock by reason of
any stock dividend, recapitalization, reorganization, split-up, merger,
consolidation, exchange of shares, or of any similar change affecting Common
Stock, the number of shares of Common Stock subject to this stock option and the
Option Price shall be equitably adjusted by the Compensation Committee of the
Board of Directors.

    

    12.         Exercise
Process.  This stock option may be exercised by giving written
notice to Walgreen Co., Attention: Finance Department, Corporate Offices, 200
Wilmot Road, MS 2261, Deerfield, Illinois 60015 (or such other address as may be
specified by the Company to the Optionee).  Alternatively, the Company
may designate one or more third parties to administer the stock option exercise
process and direct the Optionee accordingly.  Such notice (a) shall be
signed by the Optionee or (in the event of his or her death) the Optionee’s
legal representative, (b) shall specify the number of full shares then elected
to be purchased, and (c) shall be accompanied by payment in full of the Option
Price of the shares to be purchased.  Payment may be made in cash or
by check payable to the order of the Company, and such payment shall include any
tax withholding obligation, as set forth in Section 13
below.  Alternatively, the Company may allow for one or more of the
following methods of exercising stock options:

    

    a.          Payment
for shares as to which this stock option is being exercised and/or payment of
any federal, state, local or other tax withholding obligations may be made by
transfer to the Company of shares of Common Stock already owned by the Optionee,
or any combination of such shares and cash, having a fair market value
determined at the close of business on the date of stock option exercise equal
to, but not exceeding, the Option Price and/or the tax withholding obligation,
as the case may be.

    

    b.          The
Company may also allow for “same day sale” transactions pursuant to which a
third party (engaged by the Company or the Optionee) loans funds to the Optionee
to enable the Optionee to purchase the shares and pay any tax withholding
obligations, and then sells a sufficient number of the exercised shares on
behalf of the Optionee to enable the Optionee to repay the loan and any
fees.  The remaining shares and/or cash are then issued by the third
party to the Optionee.

    

    As
promptly as practicable after receipt of such notice and payment (including
payment with respect to any tax withholding obligations), the Company shall
cause to be issued and delivered to the Optionee or in the event of his or her
death to the Optionee’s legal representative, as the case may be, certificates
for the shares of Common Stock so purchased.  Alternatively, such
shares may be issued and held in book entry form.

    

    13.         Tax
Withholding.  The Company may make such provisions and take
such actions as it may deem necessary or appropriate for the withholding of any
Federal, state, local and other taxes required by law to be withheld with
respect to this stock option, including, but not limited to, deducting the
amount of any such withholding taxes from the amount to be paid hereunder,
whether in Common Stock or in cash, or from any other amount then or thereafter
payable to the Optionee, or requiring the Optionee, his or her beneficiary, or
legal representative to pay to the Company the amount required to be withheld or
to execute such documents as the Compensation Committee of the Board of
Directors or its designee deems necessary or desirable to enable the Company to
satisfy its withholding obligations.

    

    14.         Rights as
Shareholder.  The Optionee shall have no rights as a
shareholder of the Company with respect to the shares of Company Common Stock
subject to this Option Agreement until such time as the purchase price has been
paid and a certificate of stock for such shares has been issued to the
Optionee.  Except as provided in Section 11 above, no adjustment shall
be made for dividends or distributions or other rights with respect to such
shares for which the record date is prior to the date on which the Optionee
becomes the holder of record thereof.  Anything herein to the contrary
notwithstanding, if a law or any regulation of the Securities and Exchange
Commission or of any other body having jurisdiction shall require the Company or
the Optionee to take any action before shares of Common Stock can be delivered
to the Optionee hereunder, then the date of delivery of such shares may be
delayed accordingly.

    

    15.         No Guarantee of
Employment.  Nothing in this Option Agreement shall interfere
with or limit in any way the right of the Company or any of its subsidiaries to
terminate any Optionee's employment at any time, nor confer upon any employee
any right to continue in the employ of the Company or any of its
subsidiaries.  No employee shall have a right to be selected as an
Optionee.

    

    16.         Option Plan/Compensation
Committee.  This Option Agreement and the rights of the
Optionee hereunder are subject to all the terms and conditions of the Plan, as
the same may be amended from time to time, as well as to such rules and
regulations as the Compensation Committee of the Board of Directors may adopt
for administration of the Plan.  It is expressly understood that the
Compensation Committee is authorized to administer, construe, and make all
determinations necessary or appropriate for the administration of the Plan and
this Option Agreement, all of which shall be binding upon the
Optionee.  Any inconsistency between this Option Agreement and the
Plan shall be resolved in favor of the Plan.

    

    17.         Governing
Law.  Subject to Section 18 below, the stock option covered by
this Option Agreement, this Option Agreement and all determinations made and
actions taken pursuant thereto, to the extent otherwise not governed by the
Internal Revenue Code of 1986, as amended, or any other laws of the United
States, shall be governed by and construed in accordance with the laws of the
State of Illinois.

    

    18.         Conformity with Applicable
Law.  If any provision of this Option Agreement is determined
to be invalid, illegal or unenforceable in any respect under any applicable law
or rule in any jurisdiction, such invalidity, illegality or unenforceability
shall not affect the validity, legality or enforceability of any other provision
of this Option Agreement or the validity, legality or enforceability of such
provision in any other jurisdiction, but this Option Agreement shall be
reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

    

    19.         Successors.  This
Option Agreement shall be binding upon and inure to the benefit of any successor
or successors of the Company and any person or persons who shall, upon the death
of the Optionee, acquire any rights
hereunder.

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