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Exhibit 10.41  

 
 

WYNN Resorts, Limited    
    
    2002 STOCK INCENTIVE PLAN    
  

1.    Purposes of the Plan.    The purposes of this Plan are: 

        (a)  to
attract and retain the best available personnel for positions of substantial responsibility, 

        (b)  to
provide additional incentive to selected key Employees, Consultants and Directors, and 

        (c)  to
promote the success of the Company's business. 

2.    Definitions.    For the purposes of this Plan, the following terms will have the following meanings: 

        (a)  "Administrator" means the Board or any of its Committees that administer the Plan, in accordance with Section 4. 

        (b)  "Applicable Laws" means the legal requirements relating to the administration of and issuance of securities under stock
incentive plans, including, without limitation, the requirements of state corporations law, federal and state securities law, federal and state tax law, and the requirements of any
stock exchange or quotation system upon which the Shares may then be listed or quoted. For all purposes of this Plan, references to statutes and regulations shall be deemed to include any successor
statutes and regulations, to the extent reasonably appropriate as determined by the Administrator. 

        (c)  "Board" means the Board of Directors of the Company. 

        (d)  "Cause" shall have the meaning set forth in a Grantee's employment or consulting agreement with the Company (if any), or
if not defined therein, shall mean (i) acts or omissions by the Grantee which constitute intentional material misconduct or a knowing violation of a material policy of the Company or any of its
subsidiaries, (ii) the Grantee personally receiving a benefit in money, property or services from the Company or any of its subsidiaries or from another person dealing with the Company or any
of its subsidiaries, in material violation of applicable law or Company policy, (iii) an act of fraud, conversion, misappropriation, or embezzlement by the Grantee or his conviction of, or
entering a guilty plea or plea of no contest with respect to, a felony, or the equivalent thereof (other than DUI), or (iv) any material misuse or improper disclosure of confidential or
proprietary information of the Company. 

        (e)  "Code" means the Internal Revenue Code of 1986, as amended. For all purposes of this Plan, references to Code sections
shall be deemed to include any successor Code sections, to the extent reasonably appropriate as determined by the Administrator. 

        (f)    "Committee" means a Committee appointed by the Board in accordance with Section 4. 

        (g)  "Common Stock" means the common stock, $0.01 par value per share, of the Company. 

        (h)  "Company" means Wynn Resorts, Limited, a Nevada corporation. 

        (i)    "Consultant" means any natural person, including an advisor, engaged by the Company or a Parent or Subsidiary to render
bona fide services and who is compensated for such services, provided that the term "Consultant" does not include (i) Employees, (ii) Directors who are paid only a director's fee by the
Company or who are not compensated by the Company for their services as Directors or (iii) any person who provides services in connection with the offer or sale of securities in a
capital-raising transaction, or who directly or indirectly promotes or maintains a market for the securities of the Company. 

        (j)    "Continuous Status as an Employee, Director or Consultant" means that the employment, director or consulting relationship
is not interrupted or terminated by the Company, any Parent or Subsidiary, or by the Employee, Director or Consultant. Continuous Status as an Employee, Director or
Consultant will not be considered interrupted in the case of: (i) any leave of absence approved by the Board or required by Applicable Law, including sick leave, military leave, or any other
personal leave, 

 

 provided, that for purposes of Incentive Stock Options, any such leave may not exceed 90 days, unless reemployment upon the expiration of such leave is guaranteed by
contract (including certain Company policies) or statute; (ii) transfers between locations of the Company or between the Company, its Parent, its Subsidiaries or its successor, or
(iii) in the case of a Nonqualified Stock Option or Stock Award, the ceasing of a person to be an Employee while such person remains a Director or Consultant, the ceasing of a person to be a
Director while such person remains an Employee or Consultant, or the ceasing of a person to be a Consultant while such person remains an Employee or Director. 

        (k)  "Director" means a member of the Board. 

        (l)    "Disability" means total and permanent disability as defined in Section 22(e)(3) of the Code. 

        (m)  "Employee" means any person, including Officers and Directors employed as a common law employee by the Company or any
Parent or Subsidiary of the Company. Neither service as a Director nor payment of a director's fee by the Company will be sufficient, in and of itself, to constitute "employment" by the Company. 

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

        (o)  "Fair Market Value" means, as of any date, the value of Common Stock determined as follows: 

          (i)  If
the Common Stock is listed on any established stock exchange or a national market system, including without limitation, the National Market System of NASDAQ, the
Fair Market Value of a Share of Common Stock will be (A) the closing sales price for such stock (or the closing bid, if no sales are reported) as quoted on that system or exchange (or the
system or exchange with the greatest volume of trading in Common Stock) on the last market trading day prior to the day of determination, or (B) any sales price for such stock (or the closing
bid, if no sales are reported) as quoted on that system or exchange (or the system or exchange with the greatest volume of trading in Common Stock) on the day of determination, as the Administrator
may select, as reported in the Wall Street Journal or any other source the Administrator considers reliable. 

        (ii)  If
the Common Stock is quoted on the NASDAQ System (but not on the NASDAQ National Market System) or is regularly quoted by recognized securities dealers but selling
prices are not reported, the Fair Market Value of a Share of Common Stock will be the mean between the high bid and low asked prices for the Common Stock on (A) the last market trading day
prior to the day of determination, or (B) the day of determination, as the Administrator may select, as reported in the Wall Street Journal or
any other source the Administrator considers reliable. 

        (iii)  If
the Common Stock is not traded as set forth above, the Fair Market Value will be determined in good faith by the Administrator with reference to the earnings
history, book value and prospects of the Company in light of market conditions generally, and any other factors the Administrator considers appropriate, such determination by the Administrator to be
final, conclusive and binding. 

        (p)  "Family Member" means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling,
niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law, including adoptive relationships, any person sharing the Grantee's household (other than a tenant or employee), a
trust in which these persons (or the Grantee) control the management of assets, and any other entity in which these persons (or the Grantee) own more than fifty percent of the voting interests. 

        (q)  "Grant Notice" shall mean a written notice evidencing certain terms and conditions of an individual Option grant. The
Grant Notice is part of the Option Agreement. 

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        (r)  "Grantee" shall mean (i) any Optionee or (ii) any Employee, Consultant or Director to whom a Stock Award
has been granted pursuant to this Plan. 

        (s)  "Incentive Stock Option" means an Option intended to qualify as an incentive stock option within the meaning of
Section 422 of the Code and the regulations promulgated thereunder. 

        (t)    "NASDAQ" means the National Association of Securities Dealers, Ltd. Automated Quotation System. 

        (u)  "Nonqualified Stock Option" means an Option not intended to qualify as an Incentive Stock Option. 

        (v)  "Officer" means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and
the rules and regulations promulgated thereunder. 

        (w)  "Option" means a stock option granted under this Plan. 

        (x)  "Option Agreement" means a written agreement between the Company and an Optionee evidencing the terms and conditions of
an individual Option grant. Each Option Agreement is subject to the terms and conditions of this Plan. 

        (y)  "Option Exchange Program" means a program in which outstanding Options are surrendered in exchange for Options with a
lower exercise price. 

        (z)  "Optioned Stock" means the Common Stock subject to an Option. 

        (aa) "Optionee" means an Employee, Consultant or Director who holds an outstanding Option. 

        (bb) "Parent" means a "parent corporation" with respect to the Company, whether now or later existing, as defined in
Section 424(e) of the Code. 

        (cc) "Plan" means this 2002 Stock Incentive Plan. 

        (dd) "Section" means, except as otherwise specified, a section of this Plan. 

        (ee) "Share" means a share of the Common Stock, as adjusted in accordance with Section 15. 

        (ff)  "Stock Award" shall mean a grant or sale by the Company of a specified number of Shares upon terms and conditions
determined by the Administrator. 

        (gg) "Subsidiary" means (i) a "subsidiary corporation" with respect to the Company, whether now or later existing, as
defined in Section 424(f) of the Code, or (ii) a limited liability company, whether now
or later existing, which would be a "subsidiary corporation" with respect to the Company under Section 424(f) of the Code if it were a corporation. 

3.    Stock Subject to the Plan.    Subject to the provisions of Section 15 of the Plan, the maximum aggregate number of
Shares which may be issued under the Plan will be 9,750,000 Shares of Common Stock. The Shares may be authorized, but unissued, or reacquired Common Stock. 

        If
an Option expires or becomes unexercisable without having been exercised in full, or is surrendered pursuant to an Option Exchange Program, or if a Stock Award shall be cancelled or
surrendered or expire for any reason without having been received in full, the Shares that were not purchased or received or that were cancelled will become available for future grant or sale under
the Plan (unless the Plan has terminated). If the Company repurchases Shares which were issued pursuant to the exercise of an Option or grant of a Stock Award, however, those repurchased Shares will
not be available for future grant under the Plan. 

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4.    Administration of the Plan.    

        (a)    Procedure.    

        (i)    Composition of the Administrator.    Unless the Board expressly resolves to the contrary, the Plan will be
administered only by a Committee, which will then consist solely of persons appointed by the Board, each of whom are both "non-employee directors" within the meaning of
Rule 16b-3 promulgated under the Exchange Act and "outside directors" within the meaning of Section 162(m) of the Code; provided, however, the failure of the Committee to be
composed solely of individuals who are both "non-employee directors" and "outside directors" shall not render ineffective or void any awards or grants made by, or other actions taken by,
such Committee. 

        (ii)    Multiple Administrative Bodies.    The Plan may be administered by different bodies with respect to Directors,
Officers who are not Directors, and Employees and Consultants who are neither Directors nor Officers. 

        (b)    Powers of the Administrator.    Subject to the provisions of the Plan, and in the case of a Committee, subject
to the specific duties delegated by the Board to that Committee, the Administrator will have the authority, in its discretion: 

          (i)  to
determine the Fair Market Value of the Common Stock, in accordance with Section 2(o); 

        (ii)  to
select the Consultants, Employees or Directors to whom Options or Stock Awards may be granted; 

        (iii)  to
determine whether and to what extent Options or Stock Awards are granted, and whether Options are intended as Incentive Stock Options or Nonqualified Stock Options; 

        (iv)  to
determine the number of Shares to be covered by each Option or Stock Award granted; 

        (v)  to
approve forms of Grant Notices, Option Agreements and agreements governing Stock Awards; 

        (vi)  to
determine the terms and conditions, not inconsistent with the terms of this Plan, of any grant of Options or Stock Awards, including, but not limited to,
(A) the Options' exercise price, (B) the time or times when Options may be exercised or Stock Awards will be vested, which may be based on performance criteria or other reasonable
conditions such as Continuous Status as an Employee, Director or Consultant, (C) any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any
Option, Optioned Stock or Stock Award, based in each case on factors that the Administrator determines in its sole discretion, including but not limited to a requirement subjecting the Optioned Stock
or Shares to (1) certain restrictions on transfer (including without limitation a prohibition on transfer for a specified period of time and/or a right
of first refusal in favor of the Company), and (2) a right of repurchase in favor of the Company upon termination of the Grantee's Continuous Status as
an Employee, Director or Consultant; 

      (vii)  to
reduce the exercise price of any Option to the Fair Market Value at the time of the reduction, if the Fair Market Value of the Common Stock covered by that Option
has declined since the date it was granted; 

      (viii)  to
accelerate the vesting or exercisability of an Option or Stock Award; 

        (ix)  to
determine the terms and restrictions applicable to Options or Stock Awards; 

        (x)  to
modify or amend each Option or Stock Award, subject to Section 17(c); 

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        (xi)  to
authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Option previously granted by the Administrator; 

      (xii)  to
institute an Option Exchange Program; 

      (xiii)  to
construe and interpret the terms of this Plan; 

      (xiv)  to
prescribe, amend, and rescind rules and regulations relating to the administration of this Plan; and 

      (xv)  to
make all other determinations it considers necessary or advisable for administering this Plan. 

        (c)    Effect of Administrator's Decision.    The Administrator's decisions, determinations and interpretations will
be final and binding on all holders of Options or Stock Awards. The Administrator shall not be required to exercise its authority or discretion on a uniform or nondiscriminatory basis. 

5.    Eligibility.    Options granted under this Plan may be Incentive Stock Options or Nonqualified Stock Options, as determined by
the Administrator at the time of grant. Nonqualified Stock Options and Stock Awards may be granted to Employees, Consultants and Directors. Incentive Stock Options may be granted only to Employees;
provided, however, that Incentive Stock Options shall not be granted to Employees of a Subsidiary that is a limited liability company unless such limited liability company is wholly-owned by the
Company or by a Subsidiary that is a corporation. If otherwise eligible, an Employee, Consultant or Director who has been granted an Option or a Stock Award may be granted additional Options or Stock
Awards. 

6.    Limitations on Grants of Incentive Stock Options.    Each Option will be designated in the Grant Notice as either an Incentive
Stock Option or a Nonqualified Stock Option. However, notwithstanding such designations, if the Shares subject to an Optionee's Incentive Stock Options (granted under all plans of the Company or any
Parent or Subsidiary), which become exercisable for the first time during any calendar year, have a Fair Market Value in excess of $100,000, the Options accounting for this excess will be treated as
Nonqualified Stock Options. For purposes of this Section 6, Incentive Stock Options will be taken into account in the order in which they were granted, and the Fair Market Value of the Shares
will be determined as of the time of grant. 

7.    Limit on Annual Grants to Individuals.    From and after such time as the Company is required to be registered pursuant to
Section 12 of the Exchange Act, no Optionee may receive grants, during any fiscal year of the Company or portion thereof, of Options which, in the aggregate, cover more than 1,500,000 Shares,
subject to adjustment as provided in Section 15. If an Option expires or terminates for any reason without having been exercised in full, the unpurchased shares subject to that expired or
terminated Option will continue to count against the maximum numbers of shares for which Options may be granted to an Optionee during any fiscal year of the Company or portion thereof. 

8.    Term of the Plan.    Subject to Section 21, this Plan will become effective upon the earlier to occur of its adoption
by the Board or its approval by the shareholders of the Company as described in Section 21. It will continue in effect for a term of ten years unless terminated earlier under Section 17.
Unless otherwise provided in this Plan, its termination will not affect the validity of any Option or Stock Award outstanding at the date of termination, which shall continue to be governed by the
terms of this Plan as though it remained in effect. 

9.    Term of Option.    The term of each Option will be stated in the Option Agreement; provided,
however, that in no event may the term be more than ten years from the date of grant. In addition, in the case of an Incentive Stock Option granted to an Optionee who, at the
time the Incentive Stock Option is granted, owns stock representing more than ten percent of the voting power of all classes of capital stock of the Company or any Parent or Subsidiary, the term of
the Incentive Stock Option will be five years from the date of grant or any shorter term specified in the Option Agreement. 

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10.    Option Exercise Price and Consideration.    

        (a)    Exercise Price of Incentive Stock Options.    The exercise price for Shares to be issued pursuant to exercise
of an Incentive Stock Option will be determined by the Administrator provided that the per Share exercise price will be no less than 100% of the Fair Market Value per Share on the date of grant;
provided, further that in the case of an Incentive Stock Option granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent of the
voting power of all classes of capital stock of the Company or any Parent or Subsidiary, the per Share exercise price will be no less than 110% of the Fair Market Value per Share on the date of grant. 

        (b)    Exercise Price of Nonqualified Stock Options.    In the case of a Nonqualified Stock Option, the exercise price
for Shares to be issued pursuant to the exercise of any such Option will be determined by the Administrator. 

        (c)    Waiting Period and Exercise Dates.    At the time an Option is granted, the Administrator will fix the period
within which the Option may be exercised and will determine any conditions which must be satisfied before the Option may be exercised. Exercise of an Option may be conditioned upon performance
criteria or other reasonable conditions such as Continuous Status as an Employee, Director or Consultant. 

        (d)    Form of Consideration.    The Administrator will determine the acceptable form of consideration for exercising
an Option, including the method of payment. Such consideration may consist partially or entirely of: 

          (i)  cash;

        (ii)  to
the extent permitted by Applicable Law, a promissory note made by the Optionee in favor of the Company; 

        (iii)  other
Shares which have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which an Option will be exercised; 

        (iv)  delivery
of a properly executed exercise notice together with any other documentation as the Administrator and the Optionee's broker, if applicable, require to effect
an exercise of the Option and delivery to the Company of the sale or loan proceeds required to pay the exercise price; or 

        (v)  any
other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws. 

11.    Exercise of Option.    

        (a)    Procedure for Exercise; Rights as a Shareholder.    Any Option granted hereunder will be exercisable according
to the terms of the Plan and at times and under conditions determined by the Administrator and set forth in the Option Agreement; provided, however,
that an Option may not be exercised for a fraction of a Share. 

        An
Option will be deemed exercised when the Company receives: (i) written notice of exercise (in accordance with the Option Agreement) from the person entitled to exercise the
Option, (ii) full payment for the Shares with respect to which the Option is exercised, and (iii) all representations, indemnifications and documents reasonably requested by the
Administrator. Full payment may consist
of any consideration and method of payment authorized by the Administrator and permitted by the Option Agreement and this Plan. Shares issued upon exercise of an Option will be issued in the name of
the Optionee or, if requested by the Optionee, in the name of the Optionee and his or her spouse. Until the stock certificate evidencing such Shares is issued (as evidenced by the appropriate entry on
the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a shareholder will exist with respect to the Optioned
Stock, 

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notwithstanding the exercise of the Option. Subject to the provisions of Sections 14, 18, and 19, the Company will issue (or cause to be issued) such stock certificate promptly after the
Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 15 of
the Plan. Notwithstanding the foregoing, the Administrator in its discretion may require the Company to retain possession of any certificate evidencing Shares of Common Stock acquired upon exercise of
an Option, if those Shares remain subject to repurchase under the provisions of the Option Agreement or any other agreement between the Company and the Optionee, or if those Shares are collateral for
a loan or obligation due to the Company. 

        Exercising
an Option in any manner will decrease the number of Shares thereafter available, both for purposes of this Plan and for sale under the Option, by the number of Shares as to
which the Option is exercised. 

        (b)    Termination of Employment or Consulting Relationship or Directorship.    If an Optionee holds exercisable
Options on the date his or her Continuous Status as an Employee, Director or Consultant terminates (other than because of termination due to Cause, death or Disability), the Optionee may exercise the
Options that were vested and exercisable as of the date of termination for a period of 90 days following such termination (or such other period as is set forth in the Option Agreement or
determined by the Administrator). If the Optionee is not entitled to exercise his or her entire Option at the date of such termination, the Shares covered by the unexercisable portion of the Option
will revert to the Plan, unless otherwise set forth in the Option Agreement or determined by the Administrator. The Administrator may determine in its sole discretion that such unexercisable portion
of the Option will become exercisable at such times and on such terms as the Administrator may determine in its sole discretion. If the Optionee does not exercise an Option within the time specified
above after termination, that Option will expire, and the Shares covered by it will revert to the Plan, unless otherwise set forth in the Option Agreement or determined by the Administrator. 

        (c)    Disability of Optionee.    If an Optionee holds exercisable Options on the date his or her Continuous Status as
an Employee, Director or Consultant terminates because of Disability, the Optionee may exercise the Options that were vested and exercisable as of the date of termination for a period of
12 months following such termination (or such other period as is set forth in the Option Agreement or determined by the Administrator). If the Optionee is not entitled to exercise his or her
entire Option at the date of such termination, the Shares covered by the unexercisable portion of the Option will revert to the Plan, unless otherwise set forth in the Option Agreement or determined
by the Administrator. The Administrator may determine in its sole discretion that such unexercisable portion of the Option will become exercisable at such times and on such terms as the Administrator
may determine in its sole discretion. If the Optionee does not exercise an Option within the time specified above after
termination, that Option will expire, and the Shares covered by it will revert to the Plan, unless otherwise set forth in the Option Agreement or determined by the Administrator. 

        (d)    Death of Optionee.    If an Optionee holds exercisable Options on the date his or her death, the Optionee's
estate or a person who acquired the right to exercise the Option by bequest or inheritance may exercise the Options that were vested and exercisable as of the date of death for a period of
12 months following the date of death (or such other period as is set forth in the Option Agreement or determined by the Administrator). If the Optionee is not entitled to exercise his or her
entire Option at the date of death, the Shares covered by the unexercisable portion of the Option will revert to the Plan, unless otherwise set forth in the Option Agreement or determined by the
Administrator. The Administrator may determine in its sole discretion that such unexercisable portion of the Option will become exercisable at such times and on such terms as the Administrator may
determine in its sole discretion. If the Optionee's estate or a person who acquired the right to exercise the Option by bequest or inheritance does not exercise an Option within the time specified
above after 

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termination, that Option will expire, and the Shares covered by it will revert to the Plan, unless otherwise set forth in the Option Agreement or determined by the Administrator. 

        (e)    Termination for Cause.    If an Optionee's Continuous Status as an Employee, Director or Consultant is
terminated for Cause, then all Options (including any vested Options) held by Optionee shall immediately be terminated and cancelled. 

        (f)    Disqualifying Dispositions of Incentive Stock Options.    If Common Stock acquired upon exercise of any
Incentive Stock Option is disposed of in a disposition that, under Section 422 of the Code, disqualifies the holder from the application of Section 421(a) of the Code, the holder of the
Common Stock immediately before the disposition will comply with any requirements imposed by the Company in order to enable the Company to secure the related income tax deduction to which it is
entitled in such event. 

12.    Non-Transferability of Options.    

        (a)    No Transfer.    An Option may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any
manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee. Notwithstanding the foregoing, to the extent that
the Administrator so authorizes at the time a Nonqualified Stock Option is granted or amended, (i) such Option may be assigned pursuant to a qualified domestic relations order as defined by the
Code, and exercised by the spouse or former spouse of the Optionee who obtained such Option pursuant to such qualified domestic relations order, or (ii) such Option may be assigned, in whole or
in part, during the Optionee's lifetime to one or more Family Members of the Optionee. Rights under the assigned portion may be exercised by the Family Member(s) who acquire a proprietary interest in
such Option pursuant to the assignment. The terms applicable to the assigned portion shall be the same as
those in effect for the Option immediately before such assignment and shall be set forth in such documents issued to the assignee as the Administrator deems appropriate. 

        (b)    Designation of Beneficiary.    An Optionee may file a written designation of a beneficiary who is to receive
any Options that remain unexercised in the event of the Optionee's death. If a participant is married and the designated beneficiary is not the spouse, spousal consent will be required for the
designation to be effective. The Optionee may change such designation of beneficiary at any time by written notice to the Administrator, subject to the above spousal consent requirement. 

        (c)    Effect of No Designation.    If an Optionee dies and there is no beneficiary validly designated and living at
the time of the Optionee's death, the Company will deliver such Optionee's Options to the executor or administrator of his or her estate, or if no such executor or administrator has been appointed (to
the knowledge of the Company), the Company, in its discretion, may deliver such Options to the spouse or to any one or more dependents or relatives of the Optionee, or if no spouse, dependent or
relative is known to the Company, then to such other person as the Company may designate. 

        (d)    Death of Spouse or Dissolution of Marriage.    If an Optionee designates his or her spouse as beneficiary, that
designation will be deemed automatically revoked if the Optionee's marriage is later dissolved. Similarly, any designation of a beneficiary will be deemed automatically revoked upon the death of the
beneficiary if the beneficiary predeceases the Optionee. Without limiting the generality of the preceding sentence, the interest in Options of a spouse of an Optionee who has predeceased the Optionee
or (except as provided in Section 12(a) regarding qualified domestic relations orders) whose marriage has been dissolved will automatically pass to the Optionee, and will not be transferable by
such spouse in any manner, including but not limited to such spouse's will, nor will any such interest pass under the laws of intestate succession. 

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13.    Stock Awards.    

        (a)    Grant.    Subject to the express provisions and limitations of the Plan, the Administrator, in its sole and
absolute discretion, may grant Stock Awards to Employees, Consultants or Directors for a number of shares of Common Stock on such terms and conditions and to such Employees, Consultants or Directors
as it deems advisable and specifies in the respective grants. Subject to the limitations and restrictions set forth in the Plan, an Employee, Consultant or Director who has been granted an Option or
Stock Award may, if otherwise eligible, be granted additional Options or Stock Awards if the Administrator shall so determine. 

        (b)    Restrictions.    The Administrator, in its sole and absolute discretion, may impose restrictions in connection
with any Stock Award, including without limitation, (i) imposing a restricted period during
which all or a portion of the Common Stock subject to the Stock Award may not be sold, assigned, transferred, pledged or otherwise encumbered (the "Restricted
Period"), (ii) providing for a vesting schedule with respect to such Common Stock such that if a Grantee ceases to be an Employee, Consultant or Director during the
Restricted Period, some or all of the shares of Common Stock subject to the Stock Award shall be immediately forfeited and returned to the Company. The Administrator may, at any time, reduce or
terminate the Restricted Period. Each certificate issued in respect of shares of Common Stock pursuant to a Stock Award which is subject to restrictions shall be registered in the name of the Grantee,
shall be deposited by the Grantee with the Company together with a stock power endorsed in blank and shall bear an appropriate legend summarizing the restrictions imposed with respect to such shares
of Common Stock. 

        (c)    Rights As Shareholder.    Subject to the terms of any agreement governing a Stock Award, the Grantee of a Stock
Award shall have all the rights of a shareholder with respect to the Common Stock issued pursuant to a Stock Award, including the right to vote such Shares; provided, however, that dividends or
distributions paid with respect to any such Shares which have not vested shall be deposited with the Company and shall be subject to forfeiture until the underlying Shares have vested unless otherwise
provided by the Administrator in its sole discretion. A Grantee shall not be entitled to interest with respect to the dividends or distributions so deposited. 

14.    Withholding Taxes.    The Company will have the right to take whatever steps the Administrator deems necessary or appropriate
to comply with all applicable federal, state, local, and employment tax withholding requirements, and the Company's obligations to deliver Shares upon the exercise of an Option or in connection with a
Stock Award will be conditioned upon compliance with all such withholding tax requirements. Without limiting the generality of the foregoing, upon the exercise of an Option, the Company will have the
right to withhold taxes from any other compensation or other amounts which it may owe to the Optionee, or to require the Optionee to pay to the Company the amount of any taxes which the Company may be
required to withhold with respect to the Shares issued on such exercise. Without limiting the generality of the foregoing, the Administrator in its discretion may authorize the Grantee to satisfy all
or part of any withholding tax liability by (a) having the Company withhold from the Shares which would otherwise be issued in connection with a Stock Award or on the exercise of an Option that
number of Shares having a Fair Market Value, as of the date the withholding tax liability arises, equal to or less than the amount of the Company's withholding tax liability, or (b) by
delivering to the Company previously-owned and unencumbered Shares of the Common Stock having a Fair Market Value, as of the date the withholding tax liability arises, equal to or less than the amount
of the Company's withholding tax liability. 

15.    Adjustments Upon Changes in Capitalization, Dissolution, Merger or Asset Sale.    

        (a)    Changes in Capitalization.    Subject to any required action by the shareholders of the Company, if the
outstanding shares of Common Stock are increased, decreased, changed into or exchanged for a different number or kind of shares or securities of the Company or a successor entity, or for other
property (including without limitation, cash), through reorganization, recapitalization, 

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reclassification, stock combination, stock dividend, stock split, reverse stock split, spin off or other similar transaction, an appropriate and proportionate adjustment will be made in the maximum
number and kind of shares as to which Options and Stock Awards may be granted under this Plan. A corresponding adjustment changing the number or kind of shares allocated to Stock Awards or unexercised
Options which have been granted prior to any such change will likewise be made. Any such adjustment in the outstanding Options will be made without change in the aggregate purchase price applicable to
the unexercised portion of the Options but with a corresponding adjustment in the price for each share or other unit of any security covered by the Option. Such adjustment will be made by the
Administrator, whose determination in that respect will be final, binding, and conclusive. 

        Where
an adjustment under this Section 15(a) is made to an Incentive Stock Option, the adjustment will be made in a manner which will not be considered a "modification" under the
provisions of subsection 424(h)(3) of the Code. 

        (b)    Dissolution or Liquidation.    In the event of the proposed dissolution or liquidation of the Company, to the
extent that an Option had not been previously exercised or a Stock Award had not previously vested, it will terminate immediately prior to the consummation of such proposed dissolution or liquidation.
In such instance, the Administrator may, in the exercise of its sole discretion, declare that any Stock Award shall become vested or any Option will terminate as of a date fixed by the Administrator
and give each Optionee the right to exercise his or her Option as to all or any part of the Optioned Stock, including Shares as to which the Option would not otherwise be exercisable. 

        (c)    Corporate Transaction.    Upon the happening of a merger, reorganization or sale of substantially all of the
assets of the Company, the Administrator, may, in its sole discretion, do one or more of the following: (i) shorten the period during which Options are exercisable (provided they remain
exercisable for at least 30 days after the date notice of such shortening is given to the Optionees); (ii) accelerate any vesting schedule to which an Option or Stock Award is subject;
(iii) arrange to have the surviving or successor entity or any parent entity thereof assume the Stock Awards and the Options or grant replacement options with appropriate adjustments in the
option prices and adjustments in the number and kind of securities issuable upon exercise or adjustments so that the Options or their replacements represent the right to purchase the shares of stock,
securities or other property (including cash) as may be issuable or payable as a result of such transaction with respect to or in exchange for the number of Shares of Common Stock purchasable and
receivable upon exercise of the Options had such exercise occurred in full prior to such transaction; or (iv) cancel Options or Stock Awards upon payment to the Optionees or Grantees in cash,
with respect to each Option or Stock Award to the extent then exercisable or vested (including, if applicable, any Options or Stock Awards as to which the vesting schedule has been accelerated as
contemplated in clause (ii) above), of an amount that is the equivalent of the excess of the Fair Market Value of the Common Stock (at the effective time of the merger, reorganization, sale or
other event) over (in the case of Options) the exercise price of the Option. The Administrator may also provide for one or more of the foregoing alternatives in any particular Option Agreement or
agreement governing a Stock Award. 

16.    Date of Grant.    The date of grant of an Option or Stock Award will be, for all purposes, the date as of which the
Administrator makes the determination granting such Option or Stock Award, or any other, later date determined by the Administrator and specified in the Option Agreement. Notice of the determination
will be provided to each Grantee within a reasonable time after the date of grant. 

17.    Amendment and Termination of the Plan.    

        (a)    Amendment and Termination.    The Board may at any time amend, alter or suspend or terminate the Plan. 

        (b)    Shareholder Approval.    The Company will obtain shareholder approval of any Plan amendment that increases the
number of Shares for which Options or Stock Awards may be granted, 

10

 

or to the extent necessary and desirable to comply with Section 422 of the Code (or any successor statute) or other Applicable Laws, or the requirements of any exchange or quotation system on
which the Common Stock is listed or quoted. Such shareholder approval, if required, will be obtained in such a manner and to such a degree as is required by the Applicable Law or requirement. 

        (c)    Effect of Amendment or Termination.    No amendment, alteration, suspension or termination of the Plan will
impair the rights of a Grantee, unless mutually agreed otherwise between the Grantee and the Administrator. Any such agreement must be in writing and signed by the Grantee and the Company. 

18.    Conditions Upon Issuance of Shares.    

        (a)    Legal Compliance.    Shares will not be issued in connection with a Stock Award or pursuant to the exercise of
an Option unless the exercise of such Option and the issuance and delivery of such Shares will comply with all Applicable Laws, and will be further subject to the approval of counsel for the Company
with respect to such compliance. Any securities delivered under the Plan will be subject to such restrictions, and the person acquiring such securities will, if requested by the Company, provide such
assurances and representations to the Company as the Company may deem necessary or desirable to assure compliance with all Applicable Laws. To the extent permitted by Applicable Laws, the Plan and
Options and Stock Awards granted hereunder will be deemed amended to the extent necessary to conform to such laws, rules and regulations. 

        (b)    Investment Representation.    As a condition to the exercise of an Option or grant of a Stock Award, the
Company may require the person exercising such Option or receiving such Stock Award to represent and warrant at the time of any such exercise or receipt that the Shares are being acquired only for
investment and without any present intention to sell, transfer, or distribute such Shares. 

19.    Liability of Company.    

        (a)    Inability to Obtain Authority.    If the Company cannot, by the exercise of commercially reasonable efforts,
obtain authority from any regulatory body having jurisdiction for the sale of any Shares under this Plan, and such authority is deemed by the Company's counsel to be necessary to the lawful issuance
of those Shares, the Company will be relieved of any liability for failing to issue or sell those Shares. 

        (b)    Grants Exceeding Allotted Shares.    If the Optioned Stock covered by an Option or Shares subject to a Stock
Award exceed, as of the date of grant, the number of Shares which may be issued under the Plan without additional shareholder approval, that Option or Stock Award will be contingent with respect to
such excess Shares, unless and until shareholder approval of an amendment sufficiently increasing the number of Shares subject to this Plan is timely obtained in accordance with Section 17(b). 

        (c)    Rights of Participants and Beneficiaries.    The Company will pay all amounts payable under this Plan only to
the Grantee, or beneficiaries entitled thereto pursuant to this Plan. The Company will not be liable for the debts, contracts, or engagements of any Grantee or his or her beneficiaries, and rights to
cash payments under this Plan may not be taken in execution by attachment or garnishment, or by any other legal or equitable proceeding while in the hands of the Company. 

20.    Reservation of Shares.    The Company will at all times reserve and keep available for issuance a number of Shares sufficient
to satisfy this Plan's requirements during its term. 

21.    Shareholder Approval.    Continuance of this Plan will be subject to approval by the shareholders of the Company within
12 months before or after the date of its adoption. Such shareholder approval will be obtained in the manner and to the degree required under Applicable Laws. Options or Stock Awards may be
granted but Options may not be exercised prior to shareholder approval of the Plan. If any Options or Stock Awards are so granted and shareholder approval is not obtained within 

11

 

12 months of the date of adoption of this Plan by the Board, those Options or Stock Awards will terminate retroactively as of the date they were granted. 

22.    Legending Stock Certificates.    In order to enforce any restrictions imposed upon Common Stock issued in connection with a
Stock Award or upon exercise of an Option granted under this Plan or to which such Common Stock may be subject, the Administrator may cause a legend or legends to be placed on any certificates
representing such Common Stock, which legend or legends will make appropriate reference to such restrictions, including, but not limited to, a restriction against sale of such Common Stock for any
period of time as may be required by Applicable Laws. Additionally, and not by way of limitation, the Administrator may impose such restrictions on any Common Stock issued pursuant to the Plan as it
may deem advisable. 

23.    No Employment Rights.    Neither this Plan nor any Option or Stock Award will confer upon a Grantee any right with respect to
continuing the Grantee's employment or consulting relationship with the Company, or continuing service as a Director, nor will they interfere in any way with the Grantee's right or the Company's right
to terminate such employment or consulting relationship or directorship at any time, with or without cause. 

24.    Governing Law.    The Plan will be governed by, and construed in accordance with the laws of the State of Nevada (without
giving effect to conflicts of law principles). 

12

QuickLinks

WYNN Resorts, Limited 2002 STOCK INCENTIVE PLANEXECUTION COPY  

PROTOCOL AGREEMENT  

        THIS PROTOCOL AGREEMENT, dated as of November 15, 2002 (this "Protocol Agreement"), by and among Pharmacia
Corporation, a Delaware corporation, Solutia Inc., a Delaware corporation ("Solutia"), and Monsanto Company, a Delaware corporation. 

W I T N E S S E T H:

        WHEREAS,
Former Monsanto (as defined below) and Solutia are parties to that certain Distribution Agreement, dated as of September 1, 1997 (the
"Distribution Agreement"), which was entered into in connection with the distribution of the common stock of Solutia to the stockholders of Former
Monsanto (the "Solutia Distribution"); 

        WHEREAS,
pursuant to the Distribution Agreement, among other things, Former Monsanto assigned and transferred the Chemicals Assets (as defined in the Distribution Agreement) to Solutia
and Solutia assumed all of the Chemicals Liabilities (as defined in the Distribution Agreement) of Former Monsanto; 

        WHEREAS,
pursuant to that certain Agreement and Plan of Merger, dated as of December 19, 1999 (the "Merger Agreement"), by and
among the former Monsanto Company (which is the Delaware corporation identified in the introductory paragraph of this Protocol Agreement as "Pharmacia Corporation" and which is referred to herein as
either "Former Monsanto" or "Pharmacia," as the context requires), MP Sub, Incorporated
("Merger Sub") and Pharmacia & Upjohn, Inc. ("PNU"), the parties agreed that Merger Sub
would be merged with and into PNU with PNU surviving as a wholly-owned subsidiary of Former Monsanto in the merger (the "Merger"); 

        WHEREAS,
on February 9, 2000, the new Monsanto Company (which is the Delaware corporation identified in the introductory paragraph of this Protocol Agreement as "Monsanto Company"
and which is referred to herein as either "New Monsanto" or "Monsanto," as the context requires) was
incorporated as a wholly owned subsidiary of Former Monsanto under the name "Monsanto Ag Company"; 

        WHEREAS,
on March 31, 2000, (i) the Merger was effective, (ii) Former Monsanto changed its name from "Monsanto Company" to "Pharmacia Corporation," and
(iii) New Monsanto changed its name from "Monsanto Ag Company" to "Monsanto Company"; 

        WHEREAS,
on September 1, 2000, New Monsanto and Pharmacia entered into certain agreements, including that certain Separation Agreement, dated as of September 1, 2000 (the
"Separation Agreement"), pursuant to which, among other things, Pharmacia assigned and transferred certain assets related to its agricultural products
business and certain other assets to New Monsanto and New Monsanto assumed certain liabilities relating thereto and all liabilities that were assumed by Solutia or any of its subsidiaries in
connection with the Solutia Distribution to the extent that Solutia fails to pay, perform or discharge such liabilities; 

        WHEREAS,
on July 1, 2002, (i) the parties hereto entered into a certain Amendment to the Distribution Agreement (the "Distribution Agreement
Amendment") pursuant to which the assignment from Pharmacia to New Monsanto of certain assets and liabilities contemplated pursuant to the Separation Agreement (including
certain of Pharmacia's rights and obligations under the Distribution Agreement) was effectuated and the relationship among the parties was preserved as nearly as possible with the original intent and
terms of the Distribution Agreement, (ii) the parties hereto entered into that certain Protocol Agreement (the "Anniston Protocol Agreement")
related to Sabarina Abernathy, et al. v. Monsanto Company, et al., Case No. CV01832 (the "Anniston
Litigation") and pursuant to which the parties agreed on certain matters pertaining to the posting of an appeal bond with respect to, and control of decisions regarding
settlement of, the Anniston Litigation; and (iii) Pharmacia and Monsanto entered into that certain First Amendment to Separation Agreement (the Separation Agreement, as so amended, being
referred to as the "Amended Separation Agreement") pursuant to which those parties 

 

clarified their respective rights and obligations relating to Monsanto's indemnification obligations under the Separation Agreement; 

        WHEREAS,
pursuant to the Distribution Agreement, as amended by the Distribution Agreement Amendment (the "Amended Distribution
Agreement"), Solutia agreed, among other things, to indemnify, defend and hold harmless the Monsanto Group (as defined in the Amended Distribution Agreement) from and against
all Chemicals Liabilities; 

        WHEREAS,
on August 13, 2002, Pharmacia distributed its entire ownership interest in Monsanto to the stockholders of Pharmacia; 

        WHEREAS,
pursuant to its obligations under the Amended Distribution Agreement, Solutia has agreed to and has been defending Pharmacia in connection with  Commonwealth of Pennsylvania et al. v. United States Mineral Products et
al., Nos. 284 M.D., 244 M.D. (Penn. Comm. Ct.) (the
"Pennsylvania Litigation"); 

        WHEREAS,
a jury verdict has been returned in the Pennsylvania Litigation with respect to the liability of Solutia and Pharmacia and judgment in the Pennsylvania Litigation has been
entered in the amount of $59.5 million (the "Judgment"); 

        WHEREAS,
under Pennsylvania law a bond in the amount of 120% of the Judgment, or approximately $71.4 million, must be posted in order to stay execution of the Judgment pending
appeal of the Judgment (the "Appeal"); 

        WHEREAS,
pursuant to the Amended Distribution Agreement, Solutia is obligated, among other things, to post a bond in the Pennsylvania Litigation in order to stay execution of the
Judgment pending appeal of the Judgment; 

        WHEREAS,
Solutia has informed Pharmacia and Monsanto that Solutia has determined not to post a bond in order to stay execution of the Judgment pending the Appeal, but that Solutia is
willing to contribute $20 million to assist in securing a bond; and 

        WHEREAS,
Monsanto, pursuant to its obligations to Pharmacia under the Amended Separation Agreement, has agreed to post a bond sufficient to stay execution of the Judgment pending the
Appeal upon the terms set forth herein. 

        NOW,
THEREFORE, in order to avoid any dispute among the parties with respect to Solutia's rights and obligations to Pharmacia and Monsanto under the Amended Distribution Agreement and
Monsanto's rights and obligations to Pharmacia under the Amended Separation Agreement, and in consideration of the premises and the mutual covenants herein contained and intending to be legally bound
hereby, the parties hereto agree as follows: 

        Section 1.    Defined Terms.    Each capitalized term used in this Protocol Agreement and not otherwise defined
herein shall have the meaning ascribed thereto in the Amended Distribution Agreement. The
parties hereto affirm the factual accuracy of each of the recitals set forth above to the extent that they relate to such party. 

        Section 2.    Effect of Protocol Agreement.    This Protocol Agreement is a written, signed amendment and
modification of (i) the Amended Distribution Agreement, in satisfaction of the requirements of Section 10.06 of the Amended Distribution Agreement, and (ii) solely with respect to
Pharmacia and Monsanto, the Amended Separation Agreement, in satisfaction of the requirements of Section 11.07 of the Amended Separation Agreement. 

        Section 3.    Monsanto's Commitment to Obtain Pennsylvania Litigation Appeal Bond.    Monsanto shall obtain a
bond sufficient to stay execution of the Judgment pending the Appeal (the "Pennsylvania Litigation Appeal Bond"). 

2

 

        Section 4.    Pennsylvania Litigation Protocol.    In connection with Monsanto's commitment to obtain the
Pennsylvania Litigation Appeal Bond pursuant to Section 3 above, the parties hereto agree that the following shall apply: 

        (a)  Solutia's Obligation to Contribute Funds.    Solutia shall provide to Monsanto, or to the surety or bonding
company of Monsanto's choosing (the "Monsanto Surety"), on or before November 15, 2002, with a letter of credit in the form attached hereto as  Exhibit C (the "Solutia LOC") as collateral necessary to secure the Pennsylvania Litigation
Appeal Bond that has a present cash value of no less than $20 million (the "Solutia Funds"). 

        (b)  Solutia's Reimbursement Obligations.    Solutia shall reimburse or pay directly, and in no event later than
thirty (30) days after receipt of an invoice or bill, all of Monsanto's Expenses. "Expenses" means all of Monsanto's
out-of-pocket expenses reasonably incurred in connection with obtaining the Pennsylvania Litigation Appeal Bond, including, without limitation: (i) the premium due on
the Pennsylvania Litigation Appeal Bond, and /or the fees charged by the Monsanto Surety in connection therewith; (ii) the fees and expenses relating to any third-party credit enhancement
related to the Pennsylvania Litigation Appeal Bond; (iii) all costs and expenses of securing Monsanto's obligations with respect to the Pennsylvania Litigation Appeal Bond; and (iv) fees
and expenses of financial advisors and attorneys retained by Monsanto in connection with the foregoing. 

        (c)  Settlement Control Conditions.

          (i)  Monsanto Does Not Provide Collateral.    If the Pennsylvania Appeal Bond is obtained by Monsanto pursuant to
Section 3 above without Monsanto having to provide or post any cash, property, security, collateral or a third-party credit enhancement (the
"Collateral"), then (A) Solutia and Monsanto shall have shared control over decisions to compromise or settle, on a commercially reasonable
basis, any and all claims at issue, or arguably at issue, in the Appeal and/or the Pennsylvania Litigation; (B) Monsanto may utilize the Solutia Funds in accordance with the conditions and
procedures contained in the Solutia LOC for drawing thereon; and (C) Solutia and Monsanto need not receive the consent or approval of Pharmacia to settle any or all of the claims at issue, or
arguably at issue, in the Appeal and/or the Pennsylvania Litigation, provided that the settlement includes as a term thereof delivery by the claimant(s) or plaintiff(s) to Pharmacia and Monsanto of a
written release of Pharmacia, Monsanto and Solutia from all liability with respect to the Pennsylvania Litigation once payment of the settlement and fulfillment of any other obligations of the
settlement have been effectuated. To the extent that Solutia and Monsanto do not unanimously agree with respect to settlement strategies or decision to compromise or settle any claim, they shall
consult with Pharmacia in an attempt to reach a unanimous decision. If a unanimous decision of Monsanto, Solutia and Pharmacia is not reached, the agreement of any two of the parties (Solutia,
Monsanto and Pharmacia) shall be binding upon all parties hereto. 

        (ii)  Monsanto Provides Collateral.    If Monsanto provides or posts any Collateral in order to obtain the
Pennsylvania Appeal Bond pursuant to Section 3, the parties hereto agree that (A) Monsanto shall have sole and exclusive right to compromise or settle, on a commercially reasonable
basis, all claims at issue, or arguably at issue, in the Appeal and/or the Pennsylvania Litigation; (B) Monsanto may utilize the Solutia Funds in accordance with the conditions and procedures
contained in the Solutia LOC for drawing thereon; (C) Monsanto need not receive the consent or approval of Pharmacia or Solutia to settle any or all claims at issue, or arguably at issue, in
the Appeal and/or the Pennsylvania Litigation, provided that such settlement includes as a term thereof delivery by the claimant(s) or plaintiff(s) to Pharmacia, Monsanto and Solutia of a written
release of Pharmacia, Monsanto and Solutia from all liability in respect to the Pennsylvania Litigation once payment of the settlement and fulfillment of any other obligations of the settlement have
been effectuated; and (D) Monsanto shall nevertheless have a duty of prior 

3

 

consultation with Solutia and Pharmacia concerning settlement strategies and decisions (subparts (A), (B), (C) and (D) of this Section 4(c)(ii) being referred to herein
collectively as the "Settlement Control Rights"). 

        (d)  Solutia's Disposition of Assets.    In the event that at anytime during the period during which Monsanto shall
continue to have any obligation whatsoever with respect to the Pennsylvania Appeal Bond Solutia shall convey, transfer, lease or otherwise dispose of (whether in one transaction or in a series of
transactions) any portion of its assets (whether now owned or hereafter acquired) having an aggregate value of $100 million or greater to any Person, or permit any subsidiary of Solutia to do
so (a "Transaction"), Solutia shall have fifteen (15) business days following the consummation of a Transaction to obtain and deliver to Monsanto
(i) the Monsanto Surety's complete and unconditional written release of Monsanto from all of its commitments and obligations with respect to the Pennsylvania Appeal Bond; and
(ii) evidence satisfactory to Monsanto in its sole discretion that Solutia has either (A) secured a replacement bond that is sufficient to stay execution of the Judgment pending Appeal
or (B) settled all of the claim(s) at issue, or arguably at issue, in the Appeal and/or the Pennsylvania Litigation, provided that the settlement includes as a term thereof delivery by the
claimant(s) or plaintiff(s) to Pharmacia and Monsanto of a written release of Pharmacia, Monsanto and Solutia from all liability with respect to the Pennsylvania Litigation once payment of the
settlement and fulfillment of any other
obligations of the settlement have been effectuated (subparts (i) and (ii) of this Section 4(d) referred to collectively as the "Release
Conditions"). If Solutia fails to satisfy the Release Conditions within the time period prescribed by this Section 4(d), then the Settlement Control Rights shall
immediately vest in favor of Monsanto. "Person" means an individual, partnership, association, corporation, limited liability company, organization,
government or governmental subdivision or agency, business trust, estate, trust, or any other legal or commercial entity. 

        Section 5.    Obligation to Pay Settlement or Judgment Amounts.

        (a)  Solutia's Obligations.    In the event that any claims at issue, or arguably at issue, in the Appeal and/or the
Pennsylvania Litigation are settled, Solutia shall pay the full settlement amount and perform any obligations of Solutia, Pharmacia and any other members of the Monsanto Group set forth in the
settlement agreement. In the event that any claims at issue are not settled and a final, non-appealable judgment is entered against Solutia, Pharmacia or any other member of the Monsanto
Group, Solutia shall pay directly and otherwise fulfill all of Solutia's, Pharmacia's and all other Monsanto Group members' obligations pursuant to such judgment. To the extent that Solutia fails to
promptly and fully meet such obligations with respect to the payment of any judgment or settlement or with respect to other obligations arising out of any settlement or judgment in the Appeal and/or
the Pennsylvania Litigation, Solutia shall enter into a consent judgment in favor of Pharmacia and Monsanto against Solutia in an amount equal to the amount specified in the judgment or settlement
minus any amount paid by Solutia in satisfaction of the judgment or settlement. 

        (b)  Monsanto's Obligations.    To the extent that Solutia fails to promptly and fully meet its obligations with
respect to the payment of any judgment or settlement or with respect to other obligations arising out of any settlement or judgment in the Appeal and/or the Pennsylvania Litigation, Monsanto agrees to
pay, perform or discharge such liabilities and obligations in accordance with its obligations under the Amended Separation Agreement. To the extent that Monsanto fails to promptly and fully meet its
obligations under the Amended Separation Agreement with respect to the payment of any judgment or settlement or with respect to other obligations arising out of any settlement or judgment in the
Appeal and/or the Pennsylvania Litigation, Monsanto shall enter into a consent judgment in favor of Pharmacia and against Monsanto in an amount equal to the amount specified in the judgment or
settlement minus any aggregate amount paid by Solutia and Monsanto in satisfaction of the judgment or settlement. 

4

 

        Section 6.    Powers of Attorney.

        (a)  Revocation and Replacement by Pharmacia.

          (i)  The
power of attorney attached as Exhibit A to the Anniston Protocol Agreement is hereby revoked and is of no
further force or effect and is replaced by the power of attorney attached hereto as Exhibit A (the "Pharmacia
POA"), which shall be executed by Pharmacia. Pursuant to the Pharmacia POA and except as otherwise provided for in such power of attorney, the prosecution and defense of
(A) the Pennsylvania Litigation and the Appeal, (B) the Anniston Litigation and any appeal of the Anniston Litigation ("Anniston Litigation
Appeal"); and (C) any other Claims (as defined in the Pharmacia POA) shall be prosecuted and defended by Solutia at Solutia's expense. Solutia shall report to Monsanto
and Pharmacia all material developments concerning the Pennsylvania Litigation, the Appeal, the Anniston Litigation and the Anniston Litigation Appeal and shall provide all information and documents
with respect thereto reasonably requested by either Monsanto or Pharmacia (the "Solutia Reporting Obligations"). With respect to any Claims (as defined
in the Pharmacia POA) other than the Pennsylvania Litigation, the Appeal, the Anniston Litigation and the Anniston Litigation Appeal, the Solutia Reporting Obligations will only arise in the event
that Monsanto or Pharmacia requests Solutia to report any such information with respect to any such Claim. At their expense, Monsanto and Pharmacia may associate with and advise Solutia in the
prosecution or defense of the Pennsylvania Litigation, the Appeal, the Anniston Litigation, the Anniston Litigation Appeal or any other Claim (as defined in the Pharmacia POA) and Solutia shall allow
Pharmacia and Monsanto to consult with and advise Solutia in connection with any decision or strategy with respect thereto. Solutia shall also fully inform Pharmacia and Monsanto on an immediate basis
and in writing of any settlement discussions regarding the Pennsylvania Litigation, the Appeal, the Anniston Litigation, the Anniston Litigation Appeal or any other Claim (as defined in the Pharmacia
POA) and shall, subject to (X) Section 4(c) of this Protocol Agreement with respect to the Pennsylvania Litigation or the Appeal; (Y) Section 5(b) of the Anniston Protocol
Agreement with respect to the Anniston Litigation and the Anniston Litigation Appeal; and (Z) Section 7 of this Protocol Agreement with respect to all other matters, consult fully with
Pharmacia and Monsanto concerning any settlement strategies or decision. 

        (ii)  Solutia
hereby acknowledges and accepts the appointment as Pharmacia's agent and attorney as provided in the Pharmacia POA and agrees to undertake and perform in a
commercially reasonable manner on behalf of Pharmacia and in Pharmacia's name, place and stead, for all purposes with respect to all Claims (as defined in the Pharmacia POA) and to fully enforce all
of Pharmacia's rights, interests and remedies with respect thereto, in each case with the same duty of care and prudence that it applies to the management of Solutia's own affairs, in accordance with
the terms of the Amended Distribution Agreement and the Pharmacia POA. 

        (iii)  Monsanto
hereby acknowledges and consents to Pharmacia's appointment of Solutia as Pharmacia's agent and attorney as provided in the Pharmacia POA. 

        (b)  Revocation and Replacement of Distribution Agreement Amendment Power of Attorney.

          (i)  The
power of attorney attached as Exhibit B to the Distribution Agreement Amendment is hereby revoked and is of
no further force or effect and is replaced by the power of attorney attached hereto as Exhibit B (the "Monsanto
POA"), which shall be executed by Monsanto. Pursuant to the Monsanto POA and except as otherwise provided for in such power of attorney, the prosecution and defense of
(A) the Pennsylvania Litigation and the Appeal, (B) the Anniston Litigation and the Anniston Litigation Appeal; and (C) any other Claims (as defined in the Monsanto POA) shall be
prosecuted and defended by Solutia at Solutia's expense. Solutia shall comply with the Solutia Reporting Obligations. With
respect to any Claims (as defined in the Monsanto POA) other than the Pennsylvania Litigation, the Appeal, the Anniston Litigation and 

5

 

the Anniston Litigation Appeal, the Solutia Reporting Obligations will only arise in the event that Monsanto or Pharmacia requests Solutia to report any such information with respect to any such
Claim. At their expense, Monsanto and Pharmacia may associate with and advise Solutia in the prosecution or defense of the Pennsylvania Litigation, the Appeal, the Anniston Litigation, the Anniston
Litigation Appeal or any other Claim (as defined in the Monsanto POA) and Solutia shall allow Pharmacia and Monsanto to consult with and advise Solutia in connection with any decision or strategy in
respect thereto. Solutia shall also fully inform Pharmacia and Monsanto on an immediate basis and in writing of any settlement discussions regarding the Pennsylvania Litigation, the Appeal, the
Anniston Litigation, the Anniston Litigation Appeal or any other Claim (as defined in the Monsanto POA) and shall, subject to (X) Section 4(c) of this Protocol Agreement with respect to
the Pennsylvania Litigation or the Appeal; (Y) Section 5(b) of the Anniston Protocol Agreement with respect to the Anniston Litigation and the Anniston Litigation Appeal; and
(Z) Section 7 of this Protocol Agreement with respect to all other matters, consult fully with Pharmacia and Monsanto concerning any settlement strategies or decision. 

        (ii)  Solutia
hereby acknowledges and accepts the appointment as Monsanto's agent and attorney as provided in the Monsanto POA and agrees to undertake and perform in a
commercially reasonable manner on behalf of Monsanto and in Monsanto's name, place and stead, all of Monsanto's commitments, duties, liabilities and obligations with respect to all Claims (as defined
in the Monsanto POA) and to fully enforce all of Monsanto's rights, interests and remedies under the Amended Distribution Agreement, in each case with the same duty of care and prudence that it
applies to the management of Solutia's own affairs, in accordance with the terms of the Amended Distribution Agreement and the Monsanto POA. 

        (iii)  Pharmacia
hereby acknowledges and consents to Monsanto's appointment of Solutia as Monsanto's agent and attorney as provided in the Monsanto POA. 

        Section 7.    Clarification of Amended Distribution Agreement.    The parties hereby agree, for purposes of
clarification, that in the event that Solutia breaches any of its commitments, duties or obligations under the Amended Distribution Agreement nothing contained in Article IV thereof shall be
construed as providing Solutia with the right to consent to the compromise or settlement of any Third Party Claim (including, without limitation, the Pennsylvania Litigation and the Anniston
Litigation) by either of Pharmacia or Monsanto. The parties agree that Solutia's right to consent to an Indemnitee's compromise or settlement of a Third Party Claim pursuant to Section 4.04(b)
of the Amended Distribution Agreement shall only arise in the event that, pursuant to said Section 4.04(b), Solutia has the right to elect to defend a Third Party Claim and elects not to so
defend. 

        Section 8.    Conflicts with Existing Agreements.    For purposes of the defense and prosecution of the
Pennsylvania Litigation and the Appeal and of any Third Party Claims, to the extent the rights, duties, commitments and obligations set forth in this Protocol Agreement, the Pharmacia POA or the
Monsanto POA differ from or conflict with the rights, duties, commitments and obligations of the
parties as set forth in the Amended Distribution Agreement or in the Amended Separation Agreement, the rights, duties, commitments and obligations in this Protocol Agreement, the Pharmacia POA or the
Monsanto POA shall supercede and take precedence over the rights, duties, commitments and obligations set forth in the Amended Distribution Agreement or the Amended Separation Agreement, as the case
may be; provided, however, that parties hereto acknowledge and agree that for all purposes with respect
to the Anniston Litigation and the Anniston Litigation Appeal, the rights, duties, commitments and obligations set forth in the Anniston Protocol Agreement shall control and shall not be superceded or
replaced by the rights, duties, commitments and obligations set forth in this Protocol Agreement other than with respect to Pharmacia's revocation of the power of attorney attached as  Exhibit A to
the Anniston Protocol Agreement and replacement thereof with the Pharmacia POA as set forth in Section 6(a) of this Protocol
Agreement. 

6

 

        Section 9.    Bankruptcy.    In the event that Solutia files or is subject to any voluntary or involuntary
bankruptcy proceeding, Solutia's rights hereunder and Solutia's right to defend Pharmacia and/or Monsanto with respect to (i) the Pennsylvania Litigation and the Appeal, (ii) the
Anniston Litigation and the Anniston Litigation Appeal; and (iii) any other Third Party Claims, as well as the Pharmacia POA and the Monsanto POA are automatically and immediately revoked. The
parties further agree that consent from relief from any automatic stay under section 362 of the Untied States Bankruptcy Code is not necessary, but that should a court rule otherwise, Solutia
hereby consents to the entry of an order granting relief from the stay in order to effectuate this paragraph and agrees to provide all necessary cooperation. 

        Section 10.    Miscellaneous.

        (a)  No Waiver; Statute of Limitations.

          (i)  Amended Distribution Agreement and Anniston Protocol Agreement.    Other than as specifically provided herein,
none of Pharmacia, Monsanto or Solutia has waived or compromised any of their respective rights under the Amended Distribution Agreement or the Anniston Protocol Agreement. In addition, the running of
any limitations on the time for Pharmacia, Monsanto or Solutia to assert any claims related to the Pennsylvania Litigation under the Amended Distribution Agreement is tolled until 120 days
after final resolution of the Appeal. 

        (ii)  Amended Separation Agreement.    Other than as specifically provided herein, neither Pharmacia nor Monsanto
has waived or compromised any of their respective rights under the Amended Separation Agreement. In addition, the running of any limitations on the time for Pharmacia or Monsanto to assert any claims
related to the Pennsylvania Litigation under the Amended Separation Agreement is tolled until 120 days after final resolution of the Appeal. The parties acknowledge and agree that nothing
contained in this Protocol Agreement makes Solutia a party to the Amended Separation Agreement nor gives it any rights thereunder. 

        (b)  Commitments and Obligations Continue.    Nothing herein is intended to nor shall be construed to waive or limit
any of the commitments and obligations of Solutia to Pharmacia, Monsanto or the Monsanto Group (and each of their Representatives and Affiliates) set forth in the Amended Distribution Agreement or the
Anniston Protocol Agreement, or to waive or limit any commitments and obligations of Monsanto to Pharmacia or the Pharmacia Group (and each of their Representatives and Affiliates) set forth in the
Amended Separation Agreement. 

        (c)  Expenses.    Each party hereto will pay its own costs and expenses incident to its negotiation and preparation
of this Protocol Agreement, including the fees, expenses and disbursement of its counsel. 

        (d)  Governing Law.    This Protocol Agreement shall be governed by and construed in accordance with the laws of the
State of Delaware as to all matters, including matters of validity, construction, effect, performance and remedies (other than the laws regarding choice of laws and conflicts of laws). 

        (e)  Amendments and Modifications.    This Protocol Agreement may be amended, modified or supplemented only by a
written agreement signed by all of the parties hereto. 

        (f)    Binding Effect; Assignment.    This Protocol Agreement and all of the provisions hereof shall be binding upon
and inure to the benefit of the parties hereto and their successors, but neither this Protocol Agreement nor any of the rights, interests and obligations hereunder shall be assigned by any party
hereto. 

        (g)  Agreement as to Solutia's Breach.    Provided that Solutia promptly and fully complies with, as conditions
precedent, the commitments, obligations and duties set forth in this Protocol Agreement, Pharmacia and Monsanto each agree that Solutia's determination not to post the Pennsylvania Litigation Appeal
Bond will not be deemed to be a breach of Solutia's commitments and obligations to 

7

 

Pharmacia or Monsanto under the Amended Distribution Agreement; provided, however, to the extent that
such agreement by Pharmacia and Monsanto may be deemed to be a waiver of a breach by Solutia of the Amended Distribution Agreement, such waiver shall not operate or be construed as a waiver of any
subsequent breach by Solutia. 

        (h)  Counterparts.    This Protocol Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument. 

        (i)    Blue Penciling; Specific Performance.    Any provision of this Protocol Agreement that is prohibited or
unenforceable in any jurisdiction, shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof. Any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. Each party acknowledges that money damages would be an
inadequate remedy for any breach of the provisions of this Protocol Agreement and agrees that the obligations of the parties hereunder shall be specifically enforceable. 

        (k)  Acknowledgement as to Pharmacia's Attorney in Fact.    Notwithstanding anything contained herein to the
contrary, the parties acknowledge and agree that Monsanto has been appointed as Pharmacia's agent and attorney as provided in the power of attorney attached as  Exhibit A to the Amended Distribution
Agreement. The parties further acknowledge and agree that to the extent that such power of attorney has not
been revoked by Pharmacia, in the event that Solutia is required pursuant to this Protocol Agreement to provide information, or otherwise report, to Pharmacia, Solutia's obligations with respect
thereto shall be satisfied to the extent that Solutia provides such information, or otherwise reports, to Monsanto. 

[SIGNATURE PAGE IS NEXT PAGE]  

8

 

        IN WITNESS WHEREOF, the parties hereto have caused this Protocol Agreement to be duly executed as of the date first above written. 

	 	 	PHARMACIA CORPORATION,

a Delaware corporation
	

 	
 	

By:	
 	

/s/  RICHARD T. COLLIER          
 Name: Richard T. Collier

Title: Senior Vice President and General Counsel
	

 	
 	

MONSANTO COMPANY,

a Delaware corporation
	

 	
 	

By:	
 	

/s/  TERRELL K. CREWS          
 Name: Terrell K. Crews

Title: Executive Vice President and

Chief Financial Officer
	

 	
 	

SOLUTIA INC.,

a Delaware corporation
	

 	
 	

By:	
 	

/s/  ROBERT A. CLAUSEN          
 Name:    Robert A. Clausen

Title:    Chief Financial Officer

9

 
EXHIBIT A  

FORM OF

POWER OF ATTORNEY: LITIGATION/CLAIMS  

KNOW
ALL MEN BY THESE PRESENTS: 

        That
Pharmacia Corporation, a corporation organized and existing under the laws of the State of Delaware or the applicable member of the Monsanto Group ("Pharmacia") has made,
constituted and
appointed and by these presents does make, constitute and appoint, Solutia Inc., a corporation organized and existing under the laws of the State of Delaware or the applicable member of the
Chemicals Group ("Solutia") its true and lawful agent and attorney, for Pharmacia and in Pharmacia's name, place and stead, for all purposes with respect to Third Party Claims (including, without
limitation, the Pennsylvania Litigation and the Anniston Litigation) as to which Solutia has agreed to indemnify Pharmacia, and such claims against Third Parties which continue to be held by Pharmacia
in trust for Solutia, such Third Party Claims and claims against Third Parties being collectively referred to herein as "Claims"; and its attorney shall have, subject to (i) the provisions of
the Protocol Agreement, dated November 15, 2002 (the "Protocol Agreement"), to which this power of attorney is entered, and (ii) the Protocol Agreement dated as of July 1, 2002,
by and among Pharmacia, Solutia and Monsanto Company (the "Anniston Protocol Agreement"), full power and authorization to take all action with respect
to such Claims as Pharmacia can take and which said attorney, acting through its officers or their delegates, who in each case, acting alone, in his or her sole discretion, think best, including
without limitation, (i) to represent Pharmacia with respect to such Claims for so long as such Claims are unresolved; (ii) to appear in Pharmacia's name and to execute, deliver and file
all pleadings, motions and other filings, at trial, on appeal, or in a proceeding, through counsel retained by Solutia or by officers of Solutia or their delegates, acting alone, or otherwise;
(iii) to assert or waive any or all rights with respect to such Claims; (iv) to engage in all phases of discovery with respect to such Claims, including without limitation, to take
depositions, defend depositions and propound or respond to other discovery requests, such as interrogatories or requests for production of documents; (v) to direct and accept service of process
with respect to such Claims; (vi) to execute and deliver affidavits as may be necessary or desirable with respect to such Claims; (vii) to agree to and to represent Pharmacia in
alternative resolution proceedings, including arbitration or mediation of Claims; (viii) to discuss or negotiate settlement agreements and releases with Third Parties with respect to such
Claims on such terms and conditions as Solutia thinks best; (ix) to execute, deliver and, if needed, file any and all settlement agreements, releases and other agreements, documents and
instruments as may be required and any and all modifications thereof; and (x) to obtain and post bonds pending appeal; hereby giving and granting to Pharmacia's said attorney full power and
authority to do and perform all and every act and thing whatsoever necessary to be done in the premises as fully to all intents and purposes as Pharmacia might or could do, hereby ratifying and
confirming all that its said attorney may do pursuant to this power. 

        Subject
to the Protocol Agreement and the Anniston Protocol Agreement, Pharmacia hereby gives and grants to its said attorney full power and authority to do and perform all and every act
and thing whatsoever necessary to be done in the premises, in order fully to carry out and effectuate the authority herein granted, as fully to all intents and purposes as Pharmacia might or could do
if acting through its own officers or delegates, and Pharmacia hereby ratifies and confirms all that its said attorney may do pursuant to this power. 

        Pharmacia
hereby further authorizes and empowers its said attorney to substitute and appoint in the place and stead of its said attorney, or to employ agents or sub-agents as
Solutia thinks best, one or more attorney or attorneys to exercise for Pharmacia as its attorney or attorneys any and all of the powers and authorities hereby conferred; and to revoke such appointment
or appointments from time 

10

 

to time, and to substitute or appoint any other or others in the place of such attorney or attorneys as Solutia shall from time to time think fit. 

        Unless
specifically defined herein, capitalized terms shall have the meaning defined in the Amended Distribution Agreement. 

        The
term "Amended Distribution Agreement" when used herein means that certain Distribution Agreement, dated as of September 1,
1997, between Solutia and Pharmacia Corporation as amended by that certain Amendment to the Distribution Agreement, dated as of July 1, 2002, among Solutia, Pharmacia and Monsanto. 

        The
term "Anniston Litigation" when used herein means Sabarina Abernathy, et al. v. Monsanto Company, et
al., Case No. CV01832 and any appeals taken in that matter. 

        The
term "Distribution Date" when used herein means September 1, 1997. 

        The
term "Governmental Authority" when used herein means any federal, state, local, foreign or international court, government,
department, commission, board, bureau, agency, the NYSE, or other regulatory, administrative or governmental authority. 

        The
term "Pennsylvania Litigation" when used herein means Commonwealth of Pennsylvania et al. v. United States
Mineral Products et al., Nos. 284 M.D., 244 M.D. (Penn. Comm. Ct.) and any appeals taken in that matter. 

        The
term "Third Party" when used herein means any individual, partnership, joint venture, corporation, trust, limited liability company,
unincorporated organization or a government or any department or agency thereof other than Pharmacia or Solutia or their wholly owned direct or indirect subsidiaries or affiliates. 

        The
term "Third Party Claims" when used herein means any claim, suit, arbitration, inquiry, proceeding or investigation by or before any
court, any governmental or other regulatory or administrative agency or commission or any arbitration tribunal asserted by a Third Party. 

        All
references in this document to "its attorney" or "its said attorney" or
"its true and lawful attorney," or similar designations shall refer to Solutia Inc. and each and every person to whom Solutia delegates such
power and also to each and every substitute or successor attorney-in-fact appointed under the terms of this instrument as herein provided. 

        All
references in this document to "its attorney" or "its said attorney" or
"its true and lawful attorney," or similar designations shall refer not only to Solutia or its delegates but also to each and every substitute or
successor attorney-in-fact appointed under the terms of this instrument as herein provided. 

        Pharmacia
hereby acknowledges that this power is coupled with an interest and hereby directs that, to the extent authorized or permitted by applicable law, this power or attorney shall
not be affected by any merger, reverse merger, split off, spin or consolidation of Pharmacia or Solutia. It is Pharmacia's intent that the authority conferred hereby shall be exercisable
notwithstanding such corporate changes and that this power of attorney shall, if permitted by applicable law or applicable contract, be irrevocable;  provided, however, Pharmacia shall have the right, in its sole discretion, to revoke this Power of
Attorney in whole or in part, by delivering written notice to Solutia in the event that Pharmacia posts a bond as contemplated in the Anniston Protocol Agreement or upon any breach by Solutia of its
commitments, duties or obligations under either (i) this Power of Attorney or (ii) the Amended Distribution Agreement including, without limitation, any failure to post any appeal bond
required thereunder and, provided further, that this power of attorney shall be automatically and immediately revoked in accordance with the provisions
of Section 9 of the Protocol Agreement. In the event applicable law in effect at or any time after the execution of this instrument does not authorize 

11

 

or permit the foregoing direction to be effective, and if at any later date, applicable law changes (whether by amendment, court decision, or otherwise), then Pharmacia directs that the foregoing
provisions shall thereafter become applicable. Notwithstanding anything contained in this power of attorney to the contrary, (i) this power of attorney may be renewed for additional thirty
(30) day periods at the written request of Pharmacia; and (ii) should this power of attorney be revoked in part by Pharmacia, Solutia's obligations hereunder to perform on behalf of
Pharmacia and in Pharmacia's name, place and stead all of Pharmacia's commitments, duties, liabilities and obligations for all purposes with respect to all other Claims shall continue. 

        All
persons dealing with Pharmacia's said attorney shall be protected in relying upon a copy of this instrument and shall be protected in relying upon the written certificate of Solutia
as to the Claims which are the subject of this power of attorney, the identity and authority or its officers, their delegates and any substitute or successor appointed pursuant to the terms hereof,
and/or as to whether any of the persons authorized to act hereunder is unavailable so to act, so as to authorize some other person to act hereunder, and Pharmacia hereby declares that as against it
and all persons claiming under it everything which its attorney shall do or cause to be done pursuant hereto shall be valid and effectual in favor of any person claiming the benefit hereof who at the
time of the doing thereof shall have relied upon any such certification made by Solutia. If required by applicable law or if Solutia desires for any reason to do so, an executed copy of this Power of
Attorney shall be filed for record with the Governmental Authority wherein the Claim is pending or such other place as required by law or whether Solutia thinks best. Pharmacia authorizes Solutia to
make all such filings. 

        This
instrument may be executed in any number of counterparts, and all of said counterparts shall constitute but one and the same instrument. 

[SIGNATURE AND NOTARY PAGE IS NEXT PAGE]  

12

 

        IN WITNESS WHEREOF, I have hereunto set my hand and seal this      day
of                  , 2002. 

	 	 	PHARMACIA CORPORATION
	

 	
 	

    
 By:

Title:
	

ATTEST:	
 	

 
	

    
	
 	

 

	

STATE OF NEW JERSEY	
 	

)
	 	 	 	 	)
	COUNTY OF	 	    
	 	)

        On this      day of                  , 2002, before me the
undersigned, a Notary Public, in and for the County and State aforesaid, personally appeared
                                         
               , to me known to be the person described in and who executed the foregoing instrument, and acknowledged that he/she executed the same as his/her free act and deed.

        IN
TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal
in                                         
               , the day and year last above written.
 

	 	 	    
 Notary Public in and for said County and State
	

My Commission expires:	
 	

 
	

    
	
 	

 

13

 
EXHIBIT B  

MONSANTO COMPANY

POWER OF ATTORNEY: LITIGATION/CLAIMS  

KNOW
ALL MEN BY THESE PRESENTS: 

        That
from and after the date hereof ("Effective Date"), Monsanto Company, a corporation organized and existing under the laws of the State
of Delaware ("Monsanto") has made, constituted and appointed, and by these presents does make, constitute and appoint, Solutia Inc., a
corporation organized and existing under the laws of the State of Delaware ("Solutia"), its true and lawful agent and attorney, for Monsanto and in
Monsanto's name, place and stead, for all purposes with respect to Third Party Claims (including, without limitation, the Pennsylvania Litigation and the Anniston Litigation) as to which Solutia has
agreed to indemnify Monsanto, and such claims against Third Parties which continue to be held by Monsanto in trust for Solutia, such Third Party Claims and claims against Third Parties being
collectively referred to herein as "Claims"; and its attorney shall have, subject to (i) the provisions of the Protocol Agreement, dated
November 15, 2002 (the "Protocol Agreement"), to which this power of attorney is entered, and (ii) the Protocol Agreement dated as of July 1, 2002, by and among Pharmacia, Solutia
and Monsanto Company (the "Anniston Protocol Agreement"), full power and authorization to take all action with respect to such Claims as Monsanto can
take and which said attorney, acting through its officers or their delegates, who in each case, acting alone, in his or her sole discretion, think best, including without limitation, (i) to
represent Monsanto with respect to such Claims for so long as such Claims are unresolved; (ii) to appear in Monsanto's name and to execute, deliver and file all pleadings, motions and other
filings, at trial, on appeal, or in a proceeding, through counsel retained by Solutia or by officers of Solutia or their delegates, acting alone, or otherwise; (iii) to assert or waive any or
all rights with respect to such Claims; (iv) to engage in all phases of discovery with respect to such Claims, including without limitation, to take depositions, defend depositions and propound
or respond to other discover requests, such as interrogatories or requests for production of documents; (v) to direct and accept service of process with respect to such claims; (vi) to
execute and deliver affidavits as may be necessary or desirable with respect to such
Claims; (vii) to agree to and to represent Monsanto in alternative resolution proceedings, including arbitration or mediation of Claims; (viii) to discuss or negotiate settlement
agreements and releases with Third Parties with respect to such Claims on such terms and conditions as Solutia thinks best; (ix) to execute, deliver and if needed, file any and all settlement
agreements, releases and other agreements, documents and instruments as may be required and any and all modifications thereto; and (x) to obtain and post bonds pending appeal; hereby giving and
granting to Monsanto's said attorney full power and authority to do and perform all and every act and thing whatsoever necessary to be done in the premises as fully to all intents and purposes as
Monsanto might or could do, hereby ratifying and confirming all that its said attorney may do pursuant to this power. 

        Subject
to the Protocol Agreement and the Anniston Protocol Agreement, Monsanto hereby gives and grants to its said attorney from and
after the Effective Date, full power and authority to do and perform all and every act and thing whatsoever necessary to be done in the premises, in order fully to carry out and effectuate the
authority herein granted, as fully to all intents and purposes as Monsanto might or could do if acting through its own officers or delegates, and Monsanto hereby ratifies and confirms all that its
said attorney may be pursuant to this power. 

        Monsanto
hereby further authorizes and empowers its said attorney from and after Effective Date to substitute and appoint in the place and stead of its said attorney, or to employ agents
or sub-agents as Solutia thinks best, one or more attorney or attorneys to exercise for Monsanto as its attorney or attorneys any or all of the powers and authorities hereby conferred; and
to revoke such appointment or appointments from time to time, and to substitute or appoint any other or others in the place of such attorney or attorneys as Solutia shall from time to time think fit. 

14

 

        Unless
specifically defined herein, capitalized terms shall have the meaning defined in the Amended Distribution Agreement. 

        The
term "Amended Distribution Agreement" when used herein means that certain Distribution Agreement, dated as of September 1,
1997, between Solutia and Pharmacia Corporation as amended by that certain Amendment to the Distribution Agreement, dated as of July 1, 2002, among Solutia, Pharmacia and Monsanto. 

        The
term "Anniston Litigation" when used herein means Sabarina Abernathy, et al. v. Monsanto Company, et
al., Case No. CV01832 and any appeals taken in that matter. 

        The
term "Governmental Authority" when used herein means any federal, state, local, foreign or international court, government department,
commission, board, bureau, agency, the New York Stock Exchange, or other regulatory, administrative or governmental authority. 

        The
term "Pennsylvania Litigation" when used herein means Commonwealth of Pennsylvania et al. v. United States
Mineral Products et al., Nos. 284 M.D., 244 M.D. (Penn. Comm. Ct.) and any appeals taken in that matter. 

        The
term "Third Party" when used hereby means any individual, partnership, joint venture, corporation, trust, limited liability company,
unincorporated organization or a Governmental Authority or any department or agency thereof other than Monsanto or Solutia and their respective wholly-owned direct or indirect subsidiaries. 

        The
term "Third Party Claims" when used herein means any claim, suit, arbitration, inquiry, proceeding or investigation by or before any
court, any governmental or other regulatory or administrative agency or commission or any arbitration tribunal asserted by a Third Party. 

        All
references in this document to "its attorney" or "its said attorney" or
"its true and lawful attorney," or similar designations shall refer to Solutia Inc. and each and every person to whom Solutia delegates such
power and also to each and every substitute or successor attorney-in-fact appointed under the terms of this instrument as herein provided. 

        All
references in this documents to "its attorney" or "its said attorney" or
"its true and lawful attorney," or similar designations shall refer not only to Solutia or its delegates but also to each and every substitute or
successor attorney-in-fact appointed under the terms of this instrument as herein provided. 

        Monsanto
hereby acknowledges that this power is coupled with an interest and hereby directs that, to the extent authorized or permitted by applicable law, this power or attorney shall
not be affected by any merger, reverse merger, split off, spin or consolidation of Monsanto or Solutia. It is Monsanto's intent that the authority conferred hereby shall be exercisable notwithstanding
such corporate changes and that this power of attorney shall, if permitted by applicable law or applicable contract, be irrevocable, provided,  however,
that Monsanto shall have the right, in its sole discretion, to revoke this Power of Attorney in whole or in part, by delivering written notice
to Solutia upon any breach by Solutia of its commitments, duties or obligations under either (i) this Power of Attorney or (ii) the Amended Distribution Agreement including, without
limitation, any failure to post any appeal bond required thereunder and, provided further, that this power of attorney shall be automatically and
immediately revoked in accordance with the provisions of Section 9 of the Protocol Agreement. In the event applicable law in effect at or any time after the execution of this instrument does
not authorize or permit the foregoing direction to be effective, and if at any later date, applicable law changes (whether by amendment, court decision, or otherwise), then Monsanto directs that the
foregoing provisions shall thereafter become applicable. Notwithstanding anything contained in this power of attorney to the contrary, (i) this power of attorney may be renewed for additional
thirty (30) day periods at the written request of Monsanto; and (ii) should this power of attorney be revoked in part 

15

 

by Monsanto, Solutia's obligations hereunder to perform on behalf of Monsanto and in Monsanto's name, place and stead all of Monsanto's commitments, duties, liabilities and obligations for all
purposes with respect to all other Claims shall continue. 

        All
persons dealing with Monsanto's said attorney shall be protected in relying upon a copy of this instrument and shall be protected in relying upon the written certificate of Solutia
as to the Claims which are the subject of this power of attorney, the identity and authority of its officers, their delegates and any substitute or successor appointed pursuant to the terms hereof,
and/or as to whether any of the persons authorized to act hereunder is unavailable so to act, so as to authorize some other person to act hereunder, and Monsanto hereby declares that as against it and
all persons claiming under it everything which its attorney shall do or cause to be done pursuant hereto shall be valid and effectual in favor of any person claiming the benefit hereof who at the time
of the doing thereof shall have relied upon any such certification made by Solutia. If required by applicable law or if Solutia desires for any reason to do so, an executed copy of this Power of
Attorney shall be filed for record with the Governmental Authority wherein the Claim is pending or such other place as required by law or whether Solutia thinks best. Monsanto authorizes Solutia to
make all such filings. 

        This
instrument may be executed in any number of counterparts, and all of said counterparts shall constitute but one and the same instrument. 

[SIGNATURE AND NOTARY PAGE IS NEXT PAGE]  

16

 

        IN WITNESS WHEREOF, I have hereunto set my hand and seal as of this day of November 15, 2002. 

	 	 	MONSANTO COMPANY
	

 	
 	

    

	 	 	By:	 	Terrell K. Crews
	 	 	Title:	 	Executive Vice President and Chief Financial Officer
	

ATTEST:	
 	

 	
 	

 
	

    
	
 	

 	
 	

 

	

STATE OF MISSOURI	
 	

)
	 	 	)
	COUNTY OF ST. LOUIS	 	)

        On this 15th day of November, 2002, before me the undersigned, a Notary Public, in and for the County and State aforesaid, personally appeared Terrell K.
Crews, to me known to be the person described in and who executed the foregoing instrument, and acknowledged that he/she executed the same as his/her free act and deed. 

        IN
TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal in St. Louis, the day and year last above written. 

	 	 	    
 Notary Public in and for said County and State
	

My Commission expires:	
 	

 
	

    
	
 	

 

17

 
EXHIBIT C  

FORM OF

SOLUTIA LETTER OF CREDIT  

IRREVOCABLE
LETTER OF CREDIT NO.                          

DATE                                 

Monsanto
Company

Attn: General Counsel

800 North Lindbergh Boulevard

St. Louis, MO 63167

To
Whom It May Concern: 

        At
the request of Solutia, Inc. ("Solutia") we, (Name and Address of Bank), have opened an IRREVOCABLE LETTER OF CREDIT in your favor for $20,000,000.00 U.S. Dollars, available by
your drafts at sight. 

        We
warrant to you that all your drafts under this IRREVOCABLE LETTER OF CREDIT will be duly honored upon presentation of your draft on us at (Address of Bank) on or before the expiration
date or on or before any automatically extended date as set forth below. 

        Any
draft(s) drawn by you under this Letter of Credit shall be accompanied by your written certification that you have procured the execution of a bond in the amount of $71,433,900.00 at
the request of Solutia and that any one or more of the following exists: (i) Claims have been made by SAFECO Insurance Company of America ("Safeco") against you with respect to the bond posted
by Safeco ("Safeco Bond") in favor of Monsanto Company relating to the Commonwealth of Pennsylvania, Department of General Services et. al., v. United States Mineral Products
et. al., No. 284 M.D. 244 M.D. (Pennsylvania Commonwealth Court) ("Pennsylvania Litigation"); (ii) Claims have been made by Safeco against any
letter of credit or other collateral posted by you in order to secure your performance of the Safeco Bond; (iii) An agreement has been duly executed by the parties to the Pennsylvania
Litigation settling any claims at issue, or arguably at issue, in the Pennsylvania Litigation and Solutia has not paid the required settlement amount within five (5) business days after such
agreement has been fully executed; or (iv) A final, non-appealable judgment in the Pennsylvania Litigation has been entered by a court of competent jurisdiction against Solutia or
Pharmacia Corporation (a/k/a Monsanto Company) and Solutia has not paid the required settlement amount within five (5) business days after such agreement has been fully executed. 

        Except
as stated herein, this IRREVOCABLE LETTER OF CREDIT is effective November 15, 2002, and expires on August 1, 2004, but will be automatically extended without
amendment for successive one-year periods from the current expiration date and any future expiration date unless at least 90 days prior to expiration date we notify you by
registered letter that we elect not to renew for such additional one-year periods. 

        This
credit is subject to the Uniform Customs and Practices for Documentary Credits (1993 Revision), International Chamber of Commerce, publication no. 500. 

	 	Very truly yours,
	

 	

    
 (Authorized Signature)
	

 	

    
 (Title)

(To be prepared on Bank Letterhead) 

18

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