Document:

Exhibit
10.28

 

Summary
of Named Executive Officers' Salaries for 2005

 

                On
February 22, 2005, the Board of Directors of The Allstate Corporation,
upon recommendation from the Compensation and Succession Committee of the Board
of Directors, approved the following 2005 annual base salaries: Edward M.
Liddy, Chairman, President and Chief Executive Officer, $1,175,004; Danny L.
Hale, Vice President and Chief Financial Officer, $565,008; Ronald D.
McNeil, Senior Vice President, Allstate Protection Product Distribution;
$469,800; Robert W. Pike, Vice President and Secretary, $549,000; and
Thomas J. Wilson, II, President, Allstate Protection, $702,000. These
salaries are effective as of April 1, 2005 and may be changed at any time
at the discretion of the Board. These five executives include the chief
executive officer and the other four most highly compensated executive officers
based on 2004 annual base salaries and annual bonuses with respect to 2004
expected to be approved by the Committee in March.Exhibit 10.31

 

Summary of Non-Employee
Director Fees

 

The Allstate Corporation pays each
non-employee member of the Board of Directors an annual retainer fee of
$40,000.  In addition, it pays each chair
of a committee of the Board an additional annual retainer fee of $10,000.  These fees are paid on June 1 of each
year.  The fees are prorated to the
extent that a non-employee director joins the Board after June 1 or is
expected to serve for less than 12 months due to, for example, retirement.Exhibit 10.33

 

THE ALLSTATE CORPORATION

 

EQUITY INCENTIVE PLAN FOR NON-EMPLOYEE DIRECTORS

 

As Amended and Restated effective as of November 9,
2004

 

I.              Purpose.

 

The
purpose of The Allstate Corporation Equity Incentive Plan for Non-Employee
Directors (the “Plan”) is to promote the interests of The Allstate
Corporation (the “Company”) by providing an inducement to obtain and
retain the services of qualified persons as members of the Company’s Board of
Directors (the “Board”) and to align more closely the interests of such
persons with the interests of the Company’s stockholders by providing a
significant portion of the compensation provided to such persons in the form of
equity securities of the Company.

 

II.            Administration.

 

The
Plan shall be administered by the Committee. 
The Committee shall have full power to construe and interpret the Plan
and Shares, RSUs and Options granted hereunder, to establish and amend rules
for its administration and to correct any defect or omission and to reconcile
any inconsistency in the Plan or in any Share, RSU or Option granted hereunder
to the extent the Committee deems desirable to carry the Plan or any Share, RSU
or Option granted hereunder into effect. 
Any decisions of the Committee in the administration of the Plan shall
be final and conclusive.  The Committee
may authorize any one or more of its members, the secretary of the Committee or
any officer of the Company to execute and deliver documents on behalf of the
Committee.  Each member of the Committee,
and, to the extent provided by the Committee, any other person to whom duties
or powers shall be delegated in connection with the Plan, shall incur no
liability with respect to any action taken or omitted to be taken in connection
with the Plan and shall be fully protected in relying in good faith upon the
advice of counsel, to the fullest extent permitted under applicable law.

 

III.           Eligibility.

 

Each
Non-Employee Director shall be eligible to participate in the Plan.

 

IV.           Limitation
on Aggregate Shares.

 

A.            Maximum
Number of Shares.  The aggregate
maximum number of Shares that may be granted pursuant to the Plan or delivered
upon settlement of RSUs or upon exercise of Options granted pursuant to the
Plan shall be 580,000 Shares.  Such
maximum number of Shares is subject to adjustment under the provisions of Section IV.B.  The Shares to be granted pursuant to the Plan
or delivered upon settlement of RSUs or upon exercise of Options may be either
(i) authorized but unissued Shares or (ii) Shares previously issued which have
been reacquired by

 

 

the Company (“Treasury
Shares”); provided, however, that on or after June 1, 2001, only Treasury
Shares shall be granted pursuant to the Plan or delivered upon settlement of
RSUs or exercise of Options (other than upon exercise of Options granted prior
to such date).  In the event any RSU,
Option or Reload Option shall, for any reason, terminate or expire or be
surrendered without having been exercised in full or without all Shares subject
thereto having been delivered, the Shares subject to such RSU, Option or Reload
Option but not delivered or purchased thereunder shall be available for future
RSUs, Options or Reload Options to be granted under the Plan.

 

B.            Adjustment.  The maximum number of Shares referred to in Section IV.A
of the Plan, the number of RSUs granted pursuant to Section VI of the
Plan, the number of Shares subject to outstanding RSUs granted under Section VI
of the Plan, the number of Options granted pursuant to Section VII of the
Plan, and the option price and the number of Shares which may be purchased
under any outstanding Option granted under Section VII of the Plan shall
be proportionately adjusted for any increase or decrease in the number of
issued and outstanding Shares as the result of (i) the declaration and
payment of a dividend payable in Common Stock, or the division of the Common
Stock outstanding at the date hereof (or the date of the grant of any such
outstanding Option or RSU, as applicable) into a greater number of Shares
without the receipt of consideration therefore by the Company, or any other
increase in the number of such Shares of the Company outstanding at the date
hereof (or the date of the grant of any such outstanding Option or RSU, as
applicable) which is effective without the receipt of consideration therefore
by the Company (exclusive of any Shares granted by the Company to employees of
the Company or any of its Subsidiaries without receipt of separate
consideration by the Company), or (ii) the consolidation of the Shares
outstanding at the date hereof (or the date of the grant of any such
outstanding Option or RSU, as applicable) into a smaller number of Shares
without the payment of consideration thereof by the Company, or any other
decrease in the number of such Shares outstanding at the date hereof (or the
date of the grant of any such outstanding Option or RSU, as applicable)
effected without the payment of consideration by the Company; provided, however,
that the total option price for all Shares which may be purchased upon the
exercise of any Option granted pursuant to the Plan (computed by multiplying
the number of Shares originally purchasable thereunder, reduced by the number
of such Shares which have theretofore been purchased thereunder, by the
original option price per share before any of the adjustments herein provided
for) shall not be changed.

 

In the
event of a change in the Common Stock as presently constituted which is limited
to a change of the Company’s authorized shares with a par value into the same
number of shares with a different par value or without par value, the shares
resulting from any such change will be deemed to be the Common Stock within the
meaning of this Plan and no adjustment will be required pursuant to this Section IV.B.

 

The
foregoing adjustments shall be made by the Committee, whose determination in
that respect shall be final, binding and conclusive.  Except as expressly provided in this Section IV.B,
a Non-Employee Director shall have no rights by reason of any subdivision or
consolidation of

 

2

 

shares of stock of
any class or the payment of any stock dividend or any other increase or
decrease in the number of shares of stock of any class.

 

V.            Definitions.

 

The
following terms shall have the meanings set forth below when used herein:

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Committee”
means the Nominating and Governance Committee of the Board, any successor
committee of the Board performing similar functions or, in the absence of such
a committee, the Board.

 

“Common
Stock” means the Common Stock, par value $.01 per share, of the Company.

 

“Disability”
means a mental or physical condition which, in the opinion of the Committee,
renders a Non-Employee Director unable or incompetent to carry out his or her
duties as a member of the Board and which is expected to be permanent or for an
indefinite duration.

 

“Dividend
Equivalent Right” means an unfunded and unsecured promise to pay a cash
amount equal to the regular cash dividends that would be paid on a Share of
Common Stock underlying a Restricted Stock Unit if such Share had been
delivered pursuant to the Restricted Stock Unit award.

 

“Election
Shares” means any Shares issued to a Non-Employee Director pursuant to the
election of such person to receive such Shares in lieu of cash compensation
made in accordance with Section VIII.B.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Fair
Market Value” of any Share means, as of any applicable date, the mean
between the high and low prices of the Shares as reported on the New York Stock
Exchange-Composite Tape, or if no such reported sale of the Shares shall have
occurred on such date, on the next preceding date on which there was such a
reported sale.

 

“Initial
Election Date” means, for each Non-Employee Director, the later to occur of
(i) the date the Plan is approved and adopted by the Company’s
stockholders pursuant to Section XIII of the Plan, and (ii) the date
of such member’s initial election or appointment to the Board.

 

“Non-Employee
Director” means each member of the Board who is not an officer or employee
of the Company or any of its Subsidiaries.

 

3

 

“Option”
means an option to purchase shares of Common Stock.

 

“Restricted
Stock Unit” or “RSU” means a restricted stock unit award, which represents
an unfunded and unsecured promise to deliver a Share of Common Stock in
accordance with Article VI.

 

“Shares”
means shares of Common Stock.

 

“Subsidiary”
means any partnership, corporation, association, limited liability company,
joint stock company, trust, joint venture, unincorporated organization or other
business entity of which (i) if a corporation, a majority of the total
voting power of shares of stock entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers or trustees
thereof is at the time owned or controlled, directly or indirectly, by the
Company or one or more of the other Subsidiaries of the Company or a
combination thereof, or (ii) if a partnership, association, limited
liability company, joint stock company, trust, joint venture, unincorporated
organization or other business entity, a majority of the partnership or other
similar equity ownership interest thereof is at the time owned or controlled,
directly or indirectly, by the Company or one or more Subsidiaries of the
Company or a combination thereof.  For
purposes hereof, the Company or a Subsidiary shall be deemed to have a majority
ownership interest in a partnership, association, limited liability company,
joint stock company, trust, joint venture, unincorporated organization or other
business entity if the Company or such Subsidiary shall be allocated a majority
of partnership, association, limited liability company, joint stock company,
trust, joint venture, unincorporated organization or other business entity
gains or losses or shall be or control the managing director, the trustee, the
manager or the general partner of such partnership, association, limited
liability company, joint stock company, trust, joint venture, unincorporated
organization or other business entity.

 

VI.           Formula
Restricted Stock Unit Grants for Non-Employee Directors.

 

A.            Annual
Grant of Restricted Stock Units. 
Beginning December 1, 2004, on December 1 of each year 2,000
RSUs shall automatically be granted to each Non-Employee Director serving on
the Board on such date who has served in such capacity since June 1 of
such year.  If any person serving as a
Non-Employee Director on June 1 of 2004 or any subsequent year ceases to
serve as a director of the Company prior to December 1 of such year, such
director shall be automatically granted on his or her last day of service a
number of RSUs equal to (i) 2,000 multiplied by (ii) a fraction, the
numerator of which is the number of full calendar months such Non-Employee
Director has served on the Board during the period beginning on such June 1
and ending on such director’s last date of service and the denominator of which
is 6.

 

B.            Grant
for Newly Appointed Directors.  If
after June 1, 2004 a Non-Employee Director is initially elected or
appointed to the Board effective on any date other than June 1, such Non-Employee
Director shall automatically be granted, on the June 1 following the date
he or she joins the Board (or such earlier date as he or she ceases to serve as
a director), a number of

 

4

 

RSUs equal to (i) 2,000 multiplied
by (ii) a fraction, the numerator of which is the number of full calendar
months such Non-Employee Director has served on the Board during the period
beginning on the date such director joined the Board and ending on the
following May 31 (or such earlier date as he or she ceases to serve as a
director) and the denominator of which is 6; provided that such fraction shall
in no event be greater than one.

 

C.            Delivery
of Shares.  Unless otherwise
determined by the Board, the Non-Employee Director shall be entitled to
delivery of Shares that underlie the RSUs then outstanding (which amount shall
be rounded to the nearest whole number to avoid delivery of fractional Shares)
upon the earlier of (i) the date of the Non-Employee Director’s death or
Disability, and (ii) one year after the date on which the Non-Employee Director
is no longer serving as a director of the Company.  Delivery of Shares shall be effected by book
entry credit to the Non-Employee Director’s account with the Company’s transfer
agent.

 

D.            Restrictions.  A Non-Employee Director shall have only the
rights of a general unsecured creditor of the Company and shall have no rights
as a shareholder of the Company with respect to the RSUs.  Upon delivery of Shares pursuant to Section VI.C
the Non-Employee Director will obtain full voting and other rights as a
shareholder of the Company.  The RSUs
granted pursuant to this Section VI shall be fully vested but may not be
sold, transferred, pledged, assigned, or otherwise alienated at any time.

 

E.             Dividend
Equivalent Rights.  Each RSU shall
include a Dividend Equivalent Right that shall entitle the Non-Employee
Director to receive at or as soon as practicable after the time of distribution
of any regular cash dividend paid by the Company in respect of a Share the
record date for which occurs on or after the date such RSU is granted, a cash
payment equal to such regular dividend payment as would have been made in
respect of each Share underlying such RSU. 
Payment with respect to a Dividend Equivalent Right shall be made only
with respect to such RSUs that are outstanding on the dividend record date.

 

F.             Sale
of the Company.  In the event of a
merger of the Company with or into another corporation constituting a change of
control of the Company, a sale of all or substantially all of the Company’s
assets or a sale of a majority of the Company’s outstanding voting securities
(a “Sale of the Company”), the RSUs may be assumed by the successor corporation
or a parent of such successor corporation or substantially equivalent RSUs may
be substituted by the successor corporation or a parent of such successor
corporation, and if the successor corporation does not assume the RSUs or
substitute RSUs, then all outstanding RSUs shall immediately be payable in
Shares upon consummation of the Sale of the Company.  The Company shall provide at least 30 days
prior written notice of the Sale of the Company to the holders of all
outstanding RSUs, which notice shall state whether (a) the RSUs will be
assumed by the successor corporation or substantially equivalent RSUs will be
substituted by the successor corporation, or (b) the RSUs are immediately
payable upon consummation of the Sale of the Company.

 

5

 

VII.         Formula
Stock Option Grants for Non-Employee Directors.

 

A.            Annual
Grant of Options.  On June 1 of
each year, beginning June 1, 2001, Options to purchase 4,000 Shares shall
automatically be granted to each Non-Employee Director serving on the Board on
such date.  If any such Non-Employee
Director will be required to retire (pursuant to the policies of the Board)
during the 12 month period beginning on the date of any grant (or if any such
Non-Employee Director has notified the Board that he or she intends to resign
from the Board for any reason during the 12 month period beginning on the date
of any grant), such director shall instead be granted on June 1 of the
relevant year Options to purchase a number of Shares equal to (i) 4,000, multiplied
by (ii) a fraction, the numerator of which is the number of full calendar
months such Non-Employee Director will serve on the Board during the period
beginning on such June 1 and ending on such director’s last date of
service and the denominator of which is 12.

 

B.            Grant
for Newly Appointed Directors.  If
after June 1, 2001 a Non-Employee Director is initially elected or
appointed to the Board effective on any date other than June 1, such
Non-Employee Director shall automatically be granted, on the date he or she
joins the Board, Options to purchase a number of Shares equal to (i) 4,000, multiplied
by (ii) a fraction, the numerator of which is the number of full calendar
months such Non-Employee Director will serve on the Board during the period
beginning on the date such director joins the Board and ending on the following
May 31 and the denominator of which is 12.

 

C.            Option
Exercise Price.  The exercise price
per Share for each Option shall be 100% of the Fair Market Value of a Share on
the date of grant, subject to Section IV.B.

 

D.            Term
of Options.  Each Option shall be
exercisable for ten years after the date of grant, subject to Section VII.F.

 

E.             Conditions
and Limitations on Exercise.

 

(i)            Vesting.  Each Option shall vest in three installments
as follows:  (i) on each of the first and
second anniversaries of the date of grant, as to one-third of the Shares
subject to such Option (with any resulting fractional Share rounded to the
nearest whole Share) and (ii) on the third anniversary of the date of grant, as
to the remaining unvested portion of such Option.  Upon a Non-Employee Director’s mandatory
retirement pursuant to the policies of the Board, the unvested portions of any
outstanding Options held by such Non-Employee Director shall fully vest.  Upon the termination of a Non-Employee
Director’s tenure for any other reason, the unvested portions of any
outstanding Options shall expire and no Options granted to such Non-Employee
Director shall vest after the termination of such director’s tenure on the
Board.

 

(ii)           Exercise.  Each Option shall be exercisable in one or
more installments and shall not be exercisable for less than 100 Shares, unless
the exercise represents the entire remaining exercisable balance of a grant or
grants.  Each Option shall be exercised 

6

 

by
delivery to the Company of written notice of intent to purchase a specific
number of Shares subject to the Option. 
The option price of any Shares as to which an Option shall be exercised
shall be paid in full at the time of the exercise.  Payment may, at the election of the
Non-Employee Director, be made in any one or any combination of the following
forms:

 

(a)           check or
wire transfer of funds in such form as may be satisfactory to the Committee;

 

(b)           delivery
of Shares valued at their Fair Market Value on the date of exercise or, if the
date of exercise is not a business day, the next preceding business day;

 

(c)           through
simultaneous sale through a broker of unrestricted Shares acquired on exercise,
as permitted under Regulation T of the Federal Reserve Board; or

 

(d)           by
authorizing the Company in his or her written notice of exercise to withhold
from issuance a number of Shares issuable upon exercise of such Option which,
when multiplied by the Fair Market Value of Common Stock on the date of
exercise (or, if the date of exercise is not a business day, the next preceding
business day), is equal to the aggregate exercise price payable with respect to
the Option so exercised.

 

In the
event a Non-Employee Director elects to pay the exercise price payable with
respect to an Option pursuant to clause (b) above, (i) only a whole number of
Share(s) (and not fractional Shares) may be tendered in payment, (ii) such
Non-Employee Director must present evidence acceptable to the Company that he
or she has owned any such Shares tendered in payment of the exercise price (and
that such Shares tendered have not been subject to any substantial risk of
forfeiture) for at least six months prior to the date of exercise, and (iii) the
certificate(s) for all such Shares tendered in payment of the exercise price
must be accompanied by duly executed instruments of transfer in a form
acceptable to the Company.  When payment
of the Option exercise price is made by the tender of Shares, the difference,
if any, between the aggregate exercise price payable with respect to the Option
being exercised and the Fair Market Value of the Share(s) tendered in payment
(plus any applicable taxes) shall be paid by check or wire transfer of funds.  No Non-Employee Director may tender Shares
having a Fair Market Value exceeding the aggregate exercise price payable with
respect to the Option being exercised.

 

In the
event a Non-Employee Director elects to pay the exercise price payable with
respect to an Option pursuant to clause (d) above, (i) only a whole number
of Share(s) (and not fractional Shares) may be withheld in payment and
(ii) such Non-Employee Director must present evidence acceptable to the
Company that he or she has owned a number of Shares at least equal to the
number of Shares to be withheld in payment of the exercise price (and that such
owned Shares have not been subject to any substantial risk of forfeiture) for
at least six months

 

7

 

prior to the date of
exercise.  When payment of the Option
exercise price is made by the withholding of Shares, the difference, if any,
between the aggregate exercise price payable with respect to the Option being
exercised and the Fair Market Value of the Share(s) withheld in payment (plus
any applicable taxes) shall be paid by check or wire transfer of funds.  No Non-Employee Director may authorize the
withholding of Shares having a Fair Market Value exceeding the aggregate
exercise price payable with respect to the Option being exercised.  Any withheld Shares shall no longer be
issuable under such Option.

 

F.             Additional
Provisions.

 

(i)            Accelerated
Expiration of Options Upon Termination of Directorship.  Upon the termination of a Non-Employee
Director’s tenure for any reason, each outstanding vested and previously
unexercised Option shall expire three months after the date of such
termination; provided that (a) upon the termination of a
Non-Employee Director’s tenure as a result of death or Disability, each outstanding
vested and previously unexercised Option shall expire two years after the date
of his or her termination as a director, and (b) upon the mandatory
retirement of a Non-Employee Director pursuant to the policies of the Board,
each outstanding vested and previously unexercised Option shall expire five
years after the date of his or her termination as a director.  In no event shall the provisions of this Section VII.F
operate to extend the original expiration date of any Option.

 

(ii)           Sale of
the Company.  In the event of a
merger of the Company with or into another corporation constituting a change of
control of the Company, a sale of all or substantially all of the Company’s
assets or a sale of a majority of the Company’s outstanding voting securities (a
“Sale of the Company”), the Options may be assumed by the successor corporation
or a parent of such successor corporation or substantially equivalent options
may be substituted by the successor corporation or a parent of such successor
corporation, and if the successor corporation does not assume the Options or
substitute options, then all outstanding and unvested Options shall become
immediately exercisable and all outstanding Options shall terminate if not
exercised as of the date of the Sale of the Company (or other prescribed period
of time).  The Company shall provide at
least 30 days prior written notice of the Sale of the Company to the holders of
all outstanding Options, which notice shall state whether (a) the Options
will be assumed by the successor corporation or substantially equivalent
options will be substituted by the successor corporation, or (b) the
Options are thereafter vested and exercisable and will terminate if not
exercised as of the date of the Sale of the Company (or other prescribed period
of time).

 

(iii)          Liquidation
or Dissolution.  In the event of the
liquidation or dissolution of the Company, Options shall terminate immediately
prior to the liquidation or dissolution.

 

G.            Grant
of Reload Options.  A Non-Employee
Director who exercises all or any portion of an Option granted under the Plan
before June 1, 2004 by the tender or withholding of

 

8

 

Shares which have a Fair
Market Value equal to not less than 100% of the exercise price for such Options
(the “Exercised Options”) shall be granted, subject to Section IV,
an additional option (a “Reload Option”) for a number of Shares equal to
the sum of the number of Shares tendered or withheld in payment of the exercise
price for the Exercised Options.  Options
granted on and after June 1, 2004 shall not provide for the grant of a
Reload Option upon exercise.

 

Reload
Options shall be subject to the following terms and conditions:

 

(i)            the grant
date for each Reload Option shall be the date of exercise of the Exercised
Option to which it relates;

 

(ii)           subject to
clause (iii) below, the Reload Option may be exercised at any time during the
unexpired term of the Exercised Option (subject to earlier termination thereof
as provided in the Plan); and

 

(iii)          the
other terms of the Reload Option shall be the same as the terms of the
Exercised Option to which it relates and shall be subject to the provisions of
the Plan, except that (a) the option price shall be the Fair Market Value of
the Shares on the grant date of the Reload Option, (b) no Reload Option may be
exercised within six months from the grant date thereof, and (c) no other
Reload Option shall be granted upon exercise of such Reload Option.

 

H.            Non-Qualified
Stock Options.  All Options granted
under the Plan shall be non-qualified options not entitled to special tax
treatment under Code Section 422, as may be amended from time to time.

 

VIII.        Election to
Receive Stock in Lieu of Cash Compensation

 

A.            General.  A Non-Employee Director may elect to reduce
the cash compensation otherwise payable for services to be rendered by him or
her as a director for any period beginning on June 1 and continuing to the
following May 31 (or such other period for which cash compensation is
payable to Non-Employee Directors pursuant to the policies of the Board),
beginning June 1, 1996 and to receive in lieu thereof Election Shares as
provided in this Section VIII.

 

B.            Election.  By the later of (i) the date of the
Company’s annual meeting of stockholders next preceding the June 1 to
which such election relates (but in no event less than five business days prior
to such June 1) and (ii) such Non-Employee Director’s Initial
Election Date, each Non-Employee Director may make an irrevocable election to
receive, in lieu of all or a specified percentage (which percentage shall be in
10% increments) of the cash compensation to which such director would otherwise
be entitled as a member of the Board and any committee thereof (including the
annual retainer fee and any meeting or other fees payable for services on the
Board or any committee thereof, but excluding any reimbursement for
out-of-pocket expenses) for the year beginning the following June 1 (or
such other period for which cash

 

9

 

compensation is payable
to such Non-Employee Director pursuant to the policies of the Board), an
equivalent value in Election Shares granted in accordance with this Section VIII.  An election shall be effective (i) if
made in accordance with clause (i) of the preceding sentence, beginning on the June 1
following such election; and (ii) if made on such Non-Employee Director’s
Initial Election Date, immediately.

 

Each such election shall (i) be in writing in a
form prescribed by the Company, (ii) specify the amount of cash
compensation to be received in the form of Election Shares (expressed as a
percentage of the compensation otherwise payable in cash), and (iii) be
delivered to the Secretary of the Company. 
Such election may not be revoked or changed thereafter except as to
compensation for services to be rendered in any 12 month period beginning on
any June 1 at least six months following such revocation or new election.

 

C.            Issuance
of Common Stock.  If a Non-Employee
Director elects pursuant to Section VIII.B above to receive Election
Shares, there shall be issued to such director promptly following each
subsequent June 1 for which such election is effective (or promptly
following the first day of such other period for which such election is
effective) a number of Election Shares equal to the amount of compensation
otherwise payable for the 12 month period beginning on such June 1 (or the
other period for which such election is effective) divided by the Fair Market
Value of the Election Shares on such June 1 (or on the first day of such
other period).  To the extent that the
application of the foregoing formula would result in fractional shares of
Common Stock being issuable, cash will be paid to the Non-Employee Director in
lieu of such fractional Election Shares based upon the Fair Market Value of
such fractional Election Share.

 

D.            Compliance
with Exchange Act.  The election to
receive Election Shares is intended to comply in all respects with Rule
16b-3(d)(1) promulgated under Section 16(b) of the Exchange Act such that
the issuance of Election Shares under the Plan on a grant date occurring at
least six months after the election shall be exempt from Section 16(b) of
the Exchange Act.

 

E.             Grant
Date.  The grant date for each
Election Share for the Non-Employee Director electing such option shall be the
first day of the period to which such election relates and is effective.

 

IX.           Miscellaneous
Provisions.

 

A.            Rights
of Non-Employee Directors.  No
Non-Employee Director shall be entitled under the Plan to voting rights,
dividends or other rights of a stockholder prior to the issuance of Common
Stock.  Neither the Plan nor any action
taken hereunder shall be construed as giving any Non-Employee Director any
right to be retained in the service of the Company.

 

B.            Limitations
on Transfer and Exercise. All Options granted under the Plan shall not be
transferable by the Non-Employee Director, other than by will or the laws of
descent and distribution or pursuant to a qualified domestic relations order,
as defined by Section 1 et  seq, of the Code, Title I of
ERISA or the rules and regulations thereunder, and shall be exercisable

 

10

 

during the Non-Employee
Director’s lifetime only by such Non-Employee Director or by such Non-Employee
Director’s guardian or other legal representative; provided, however,
that the vested portions of Options may be transferred by the Non-Employee
Director during his lifetime to (a) any member of his immediate family, (b) to
a trust established for the exclusive benefit of himself or one or more members
of his immediate family, or (c) to a partnership, the partners of which are
limited to the Non-Employee Director and members of his immediate family.  A transfer of an Option pursuant to this
paragraph may only be effected by the Company at the written request of a
Non-Employee Director and shall become effective only when recorded in the
Company’s record of outstanding Options. 
In the event an Option is transferred as contemplated in this paragraph,
any Reload Options associated with such transferred Option shall terminate, and
such transferred Option may not be subsequently transferred by the transferee
except by will or the laws of descent and distribution.  Otherwise, a transferred Option shall
continue to be governed by and subject to the terms and limitations of the Plan
and the relevant grant, and the transferee shall be entitled to the same rights
as the Non-Employee Director, as if no transfer had taken place.  As used in this paragraph, “immediate family”
shall mean, with respect to any person, his/her spouse, any child, stepchild or
grandchild, and shall include relationships arising from legal adoption.

 

C.            Compliance
with Laws.  No shares of Common Stock
shall be issued hereunder unless counsel for the Company shall be satisfied
that such issuance will be in compliance with applicable federal, state, local
and foreign securities, securities exchange and other applicable laws and
requirements.  Each Share delivered
pursuant to Section VI or granted pursuant to Section VIII and each
Option granted pursuant to Section VII shall be subject to the requirement
that if at any time the Committee shall determine, in its discretion, that the
listing, registration or qualification of the Shares delivered, granted or
subject to the Option upon any securities exchange or under any state or
federal securities or other law or regulation, or the consent or approval of
any governmental regulatory body, is necessary or desirable as a condition to
or in connection with the granting or delivery of such Share, such Option or
the issuance or purchase of Shares thereunder, no such Share may be issued or
delivered and no Option may be exercised or paid in Common Stock, in whole or
in part, unless such listing, registration, qualification, consent or approval
shall have been effected or obtained free of any conditions not acceptable to
the Committee.  The holder of an RSU,
Share or Option will supply the Company with such certificates, representations
and information as the Company shall request and shall otherwise cooperate with
the Company in obtaining such listing, registration, qualification, consent or
approval.  The Committee may at any time
impose any limitations upon the delivery of a Share pursuant to an RSU, the
sale of a Share or the exercise of an Option or the sale of the Shares
delivered pursuant to an RSU or issued upon exercise of an Option that, in the
Committee’s discretion, are necessary or desirable in order to comply with Section 16(b)
of the Exchange Act and the rules and regulations thereunder.  The Committee may at any time impose
additional limitations, or may amend or delete the existing limitations, upon
the exercise of Options by the tender or withholding of Shares in accordance
with Section VII.E (including an amendment or deletion of the related
ownership period for Shares specified in such Section), if such additional,
amended or deleted limitations are necessary, desirable or no longer required
(as the case may be)

 

11

 

to remain in
compliance with applicable accounting pronouncements relating to the treatment
of the plan as a fixed plan for accounting purposes.

 

D.            Payment
of Withholding Tax.  Whenever Shares
are to be delivered pursuant to Section VI or issued pursuant to Section VIII
of the Plan or upon exercise of Options issued pursuant to Section VII of
the Plan, the Company shall be entitled to require as a condition of delivery
(i) that the participant remit an amount sufficient to satisfy all federal,
state and local withholding tax requirements related thereto, (ii) the
withholding of Shares due to the participant under the Plan with a Fair Market
Value equal to such amount, or (iii) any combination of the foregoing.

 

E.             Expenses.  The expenses of the Plan shall be borne by
the Company and its Subsidiaries.

 

F.             Deemed
Acceptance, Ratification and Consent. 
By accepting any Common Stock hereunder or other benefit under the Plan,
each Non-Employee Director and each person claiming under or through him or her
shall be conclusively deemed to have indicated his or her acceptance and
ratification of, and consent to, any action taken under the Plan by the
Company, the Board or the Committee.

 

G.            Securities
Act Registration.  The Company shall
use its best efforts to cause to be filed under the Securities Act of 1933, as
amended, a registration statement covering the Shares issued, and issuable upon
delivery of Shares pursuant to RSUs and exercise of Options granted, under the
Plan.

 

H.            Governing
Law.  The provisions of the Plan
shall be governed by and construed in accordance with the laws of the State of
Delaware.

 

I.              Election
Shares.  Pending the grant of
Election Shares hereunder, all compensation earned by a Non-Employee Director
with respect to which an election to receive the grant of Election Shares
pursuant to Section VIII.B has been made shall be the property of such
director and shall be paid to him or her in cash in the event that Election
Shares are not granted by the Company hereunder.

 

J.             Headings;
Construction.  Headings are given to
the sections of the Plan solely as a convenience to facilitate reference.  Such headings, numbering and paragraphing
shall not in any case be deemed in any way material or relevant to the
construction of the Plan or any provisions hereof.  The use of the singular shall also include
within its meaning the plural, where appropriate, and vice versa.

 

12

 

X.            This
section intentionally left blank.

 

XI.           Amendment.

 

The
Plan may be amended at any time and from time to time by resolution of the
Board as the Board shall deem advisable; provided, however, that
no amendment shall become effective without stockholder approval if such
stockholder approval is required by law, rule or regulation.  No amendment of the Plan shall materially and
adversely affect any right of any participant with respect to any Options,
Shares or RSUs theretofore granted under the Plan without such participant’s
written consent, except for any modifications required to maintain compliance
with any federal or state statute or regulation.

 

XII.         Termination.

 

The
Plan shall terminate upon the earlier of the following dates or events to
occur:

 

(i)            upon the
adoption of a resolution of the Board terminating the Plan; and

 

(ii)           ten years
from the date the Plan is initially approved and adopted by the stockholders of
the Company in accordance with Article XIII.

 

Except
as specifically provided herein, no termination of the Plan shall materially
and adversely affect any of the rights or obligations of any person without his
or her consent with respect to any Options, Shares or RSUs theretofore granted
under the Plan.

 

XIII.        Stockholder
Approval and Adoption.

 

The Plan was originally adopted by the Board on March 12,
1996 and was approved and adopted at a meeting of the stockholders of the
Company held on May 21, 1996.  The Plan
was amended and restated by the Board at meetings held on November 12,
1996, August 14, 1997 and, in connection with a 2-for-1 stock split in the
form of a dividend, effective as of July 2, 1998.  The Plan was further amended and restated by
the Board at meetings held on November 10, 1998, on September 18,
2000, effective as of June 1, 2001 and on September 8, 2003 effective
as of June 1, 2004.  Until June 1,
2004, the Plan as amended and restated on September 18, 2000, effective as
of June 1, 2001 remained in effect. 
The Plan was further amended and restated by the Board at a meeting held
on November 9, 2004.

 

13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]