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  TABLE OF CONTENTS

THE ALLSTATE CORPORATION

2001 EQUITY INCENTIVE PLAN  

 

TABLE OF CONTENTS    
  

    
 

	Article 1.    Establishment, Purpose and Duration
	

Article 2.    Definitions
	

Article 3.    Administration
	

Article 4.    Stock Subject to the Plan
	

Article 5.    Eligibility and Participation
	

Article 6.    Stock Options
	

Article 7.    Stock Appreciation Rights
	

Article 8.    Unrestricted Stock, Restricted Stock and Restricted Stock Units
	

Article 9.    Performance Units and Performance Stock
	

Article 10.    Other Awards
	

Article 11.    Deferrals
	

Article 12.    Rights of Participants
	

Article 13.    Termination of Employment
	

Article 14.    Equity Incentive Plans of Foreign Subsidiaries
	

Article 15.    Amendment, Modification and Termination
	

Article 16.    Payment for Awards and Withholding
	

Article 17.    Substituted Awards
	

Article 18.    Successors
	

Article 19.    Legal Construction

THE ALLSTATE CORPORATION

2001 EQUITY INCENTIVE PLAN  

 
  Article 1.  Establishment, Purpose and Duration    
  

    1.1  Establishment of the Plan.  The Allstate Corporation, a Delaware corporation (hereinafter referred
to as the "Company"), hereby establishes an incentive compensation plan for key employees, to be known as "The Allstate Corporation 2001 Equity Incentive Plan" (hereinafter referred to as the "Plan"),
as set forth in this document. The Plan permits the grant of nonqualified stock options (NQSOs), incentive stock options (ISOs), stock appreciation rights (SARs), unrestricted stock, restricted stock,
restricted stock units, performance units, performance stock and other awards. 

    The
Plan was approved by the Board of Directors on March 13, 2001, shall become effective when approved by the stockholders at the 2001 Annual Meeting of Stockholders (the
"Effective Date") and shall remain in effect as provided in Section 1.3 herein. 

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

    1.3  Duration of the Plan.  The Plan shall commence on the Effective Date, as described in
Section 1.1 herein, and shall remain in effect subject to the right of the Board of Directors to terminate the Plan at any time pursuant to Article 15 herein, until all Stock subject to
it shall have been purchased or acquired according to the Plan's provisions. 

 
 

Article 2.  Definitions    
  

    Whenever used in the Plan, the following terms shall have the meanings set forth below and, when such meaning is intended, the initial letter of the word is
capitalized: 

    2.1 Award means, individually or collectively, a grant under the Plan of NQSOs, ISOs, SARs, Unrestricted Stock,
Restricted Stock, Restricted Stock Units, Performance Units, Performance Stock or any other type of award permitted under Article 10 of the Plan. 

    2.2 Award Agreement means an agreement setting forth the terms and provisions applicable to an Award granted to a
Participant under the Plan. 

 

    2.3 Base Value of an SAR means the Fair Market Value of a share of Stock on the date the SAR is granted. 

    2.4 Beneficial Owner means such term as defined in Rule 13d-3 under the Exchange Act. 

    2.5 Board or Board of Directors means the Board of Directors of the
Company. 

    2.6 Code means the Internal Revenue Code of 1986, as amended from time to time. 

    2.7 Committee means the committee, as specified in Article 3, appointed by the Board to administer the Plan. 

    2.8 Company means The Allstate Corporation, a Delaware corporation, or any successor thereto as provided in
Article 18 herein. 

    2.9 Covered Employee means any Participant who would be considered a "covered employee" for purposes of
Section 162(m) of the Code. 

    2.10 Disability means a mental or physical condition which, in the opinion of the Committee, renders a Participant
unable or incompetent to carry out the job responsibilities which such Participant held or the duties to which such Participant was assigned at the time the disability was incurred, and which is
expected to be permanent or for an indefinite duration. 

    2.11 Dividend Equivalent means, with respect to Stock subject to an Award, a right to be paid an amount equal to
dividends declared on an equal number of outstanding shares of Stock. 

    2.12 Eligible Person means a Person who is eligible to participate in the Plan, as set forth in Section 5.1
herein. 

    2.13 Employee means an individual who is paid on the payroll of the Company or of one of the Company's Subsidiaries, who
is not covered by any collective bargaining agreement to which the Company or any of its Subsidiaries is a party, and is classified on the employer's human resource payroll system as a regular
full-time or regular part-time employee. 

    2.14 Exchange Act means the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto. 

    2.15 Exercise Period means the period during which an SAR or Option is exercisable, as set forth in the related Award
Agreement. 

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    2.16 Fair Market Value means, as of any applicable date, the average of the high and low sale prices as reported in the
consolidated transaction reporting system, or, if there was no such sale on the relevant date, then on the last previous day on which a sale was reported. 

    2.17 Family Member means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, or sibling,
including adoptive relationships, a trust in which these persons have more than fifty (50) percent of the beneficial interest, a foundation in which these persons (or the Employee) control the
management of assets, and any other entity in which these persons (or the Employee) own more than fifty (50) percent of the voting interests. 

    2.18 Freestanding SAR means an SAR that is not a Tandem SAR. 

    2.19 Incentive Stock Option or ISO means an option to purchase Stock,
granted under Article 6 herein, which is designated as an Incentive Stock Option and satisfies the requirements of Section 422 of the Code. 

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

    2.21 Nonqualified Stock Option or NQSO means an option to purchase
Stock, granted under Article 6 herein, which is not intended to be an Incentive Stock Option under Section 422 of the Code. 

    2.22 Option means an Incentive Stock Option or a Nonqualified Stock Option. 

    2.23 Option Exercise Price means the price at which a share of Stock may be purchased by a Participant pursuant to an
Option, as determined by the Committee and set forth in the Option Award Agreement. 

    2.24 Participant means an Eligible Person who has outstanding an Award granted under the Plan. 

    2.25 Performance Goals means the performance goals established by the Committee, which shall be based on one or more of
the following measures: sales or revenues, earnings per share, stockholder return and/or value, funds from operations, operating income, gross income, net income, combined ratio, underwriting income,
cash flow, return on equity, return on capital, return on assets, net earnings, earnings before interest, operating ratios, stock price, customer satisfaction, customer retention, accomplishment of
mergers, acquisitions, dispositions or similar extraordinary business transactions, profit returns and margins, financial return ratios and/or market performance. Performance goals may be measured
solely on a corporate, subsidiary or business unit basis, or a combination thereof. Performance goals may reflect absolute entity 

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performance or a relative comparison of entity performance to the performance of a peer group of entities or other external measure. 

    2.26 Performance Period means the time period during which Performance Unit/Performance Stock Performance Goals must be
met. 

    2.27 Performance Stock means an Award described in Article 9 herein. 

    2.28 Performance Unit means an Award described in Article 9 herein. 

    2.29 Period of Restriction means the period during which the transfer of Restricted Stock is limited in some way, as
provided in Article 8 herein. 

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

    2.31 Plan means The Allstate Corporation 2001 Equity Incentive Plan. 

    2.32 Qualified Restricted Stock means an Award of Restricted Stock designated as Qualified Restricted Stock by the
Committee at the time of grant and intended to qualify for the exemption from the limitation on deductibility imposed by Section 162(m) of the Code that is set forth in
Section 162(m)(4)(C). 

    2.33 Qualified Restricted Stock Unit means an Award of Restricted Stock Units designated as Qualified Restricted Stock
Units by the Committee at the time of grant and intended to qualify for the exemption from the limitation on deductibility imposed by Section 162(m) of the Code that is set forth in
Section 162(m)(4)(C). 

    2.34 Reload Option means an additional Option described in Article 6 herein. 

    2.35 Restricted Stock means an Award described in Article 8 herein. 

    2.36 Restricted Stock Unit means an Award described in Article 8 herein. 

    2.37 Retirement means a Participant's termination from employment with the Company or a Subsidiary at the Participant's
Early, Normal or Health Retirement Date, as applicable. 

	(a)
	Early Retirement Date—shall mean the date prior to the Participant's Normal Retirement Date on which a Participant
terminates employment, if such termination date occurs on or after the Participant attains age fifty-five (55) with twenty (20) years of service and such retirement is in
accordance 

4

 

with
the voluntary early retirement policy of the Company or the Subsidiary with which the Participant is employed on the date of termination of employment. 

	(b)
	Normal Retirement Date—shall have the meaning given to it by the Company or the Subsidiary with which the Participant is
employed on the date of termination of employment, provided that such termination is voluntary and occurs on or after the Participant attains age sixty (60) with at least one (1) year of
service at termination of employment.

	(c)
	Health Retirement Date—shall mean the date on which the Participant terminates employment for health reasons (as
determined under the human resource policy of the Company or the Subsidiary with which the Participant is employed on the date of termination of employment), provided that such termination date occurs
on or after the Participant attains age fifty (50) but before the Participant attains age sixty (60), with at least ten (10) years of continuous service at termination of employment. 

    2.38 Securities Act means the Securities Act of 1933, as amended. 

    2.39 Stock means the common stock, $.01 par value, of the Company. 

    2.40 Stock Appreciation Right or SAR means a right, granted alone or in
connection with a related Option, designated as an SAR, to receive a payment on the day the right is exercised, pursuant to the terms of Article 7 herein. Each SAR shall be denominated in terms
of one share of Stock. 

    2.41 Subsidiary means any corporation (other than the Company) in an unbroken chain of corporations beginning with the
Company if each of the corporations other than the last corporation in the unbroken chain owns, directly or indirectly, stock possessing 50 percent or more of the total combined Voting Power of
all classes of stock in one of the other corporations in such chain. 

    2.42 Tandem SAR means an SAR that is granted in connection with a related Option, the exercise of which shall require
forfeiture of the right to purchase Stock under the related Option (and when Stock is purchased under the Option, the Tandem SAR shall be similarly canceled). 

    2.43 Termination of Employment occurs the first day on which an individual is for any reason no longer employed by the
Company or any of its Subsidiaries, or with respect to an individual who is an Employee of a Subsidiary, the first day on which the Company no longer owns, directly or indirectly, Voting Securities
possessing at least 50% of the Voting Power of such Subsidiary. For purposes of the Plan, transfer of employment of a Participant between the 

5

 

Company and any one of its Subsidiaries (or between Subsidiaries) shall not be deemed a termination of employment. 

    2.44 Unrestricted Stock means an Award of Stock not subject to restrictions described in Article 8 herein. 

    2.45 Voting Power means the combined voting power of the then-outstanding Voting Securities entitled to vote
generally in the election of directors. 

    2.46 Voting Securities of a corporation means securities of such corporation that are entitled to vote generally in the
election of directors of such corporation. 

 
 

Article 3.  Administration    
  

    3.1  The Committee.  The Plan shall be administered by the Compensation and Succession Committee or such
other committee (the "Committee") as the Board of Directors shall select, consisting solely of two or more nonemployee members of the Board. The members of the Committee shall be appointed from time
to time by, and shall serve at the discretion of, the Board of Directors. 

    3.2  Authority of the Committee.  The Committee shall have full power except as limited by law, the
Articles of Incorporation or the Bylaws of the Company, subject to such other restricting limitations or directions as may be imposed by the Board and subject to the provisions herein, to determine
the Eligible Persons to receive Awards; to determine when Awards may be granted and to grant Awards under the Plan (which may include substituted Awards as described in Article 17 herein); to
determine the size and types of Awards; to determine the terms and conditions of such Awards; to determine whether Performance Goals have been met; to construe and interpret the Plan and any agreement
or instrument entered into under the Plan; to establish, amend or waive rules and regulations for the Plan's administration; to amend the terms and conditions of any outstanding Award, including but
not limited to amendments with respect to exercisability and non-forfeitability of Awards upon a Termination of Employment; to make such adjustments or modifications to Awards to
Participants working outside the United States as are necessary or advisable to fulfill the purposes of the Plan; to accelerate the exercisability of, and to accelerate or waive any or all of the
restrictions and conditions applicable to, any Award; and to authorize any action of or make any determination by the Company as the Committee shall deem necessary or advisable for carrying out the
purposes of the Plan; provided, however, that the Committee may not amend the terms and conditions of any outstanding Award so as to adversely affect in
any material way such Award without the written consent of the Participant holding such Award (or if the Participant is not then living, the Participant's personal representative or estate), unless
such amendment is required by applicable law; and provided, further, that any discretion exercised by the Committee pursuant to section 4.2 and
the following paragraph of this section 3.2 shall not be deemed to adversely affect in any material way an Award. The Committee may designate which Subsidiaries participate in the Plan and may
authorize foreign Subsidiaries to 

6

 

adopt plans as provided in Article 14. Further, the Committee shall interpret and make all other determinations which may be necessary or advisable for the administration of the Plan. As
permitted by law, the Committee may delegate its authorities as identified hereunder. 

    The
Committee may, in its discretion, elect at any time, should it determine it is in the best interest of the Company's stockholders to cancel any Awards granted hereunder, to cancel
all or any of the Awards granted hereunder and pay the holders of any such Awards an amount (payable in such proportion as the Committee may determine in cash or in Stock (valued at the Fair Market
Value of a share of Stock on the date of cancellation of such Award)) equal to (i) for Options, the number of
shares of Stock subject to such cancelled Option, multiplied by the amount (if any) by which the Fair Market Value of Stock on the date of cancellation of the Option exceeds the Option Exercise Price;
(ii) for Restricted Stock or Performance Stock, the number of shares of Restricted Stock or Performance Stock multiplied by the Fair Market Value of Stock on the date of cancellation of the
Award; and (iii) for Restricted Stock Units or Performance Units, the number of units multiplied by an amount not less than the initial value thereof. Amounts payable may be prorated based upon
the number of months elapsed in any related vesting period or Performance Period, in the sole discretion of the Committee. In no event shall the Committee have the right to amend an outstanding Option
Award for the sole purpose of reducing the exercise price thereof. 

    3.3  Delivery of Stock by Company; Restrictions on Stock.  Notwithstanding any other provision of the
Plan, the Company shall have no liability to deliver any Stock or benefits under the Plan unless such delivery would comply with all applicable laws (including, without limitation, the Securities Act)
and applicable requirements of any securities exchange or similar entity and unless the Participant's tax obligations have been satisfied as set forth in Article 16. 

    The
Committee may impose such restrictions on any Stock acquired pursuant to Awards under the Plan as it may deem advisable, including, without limitation, restrictions to comply with
applicable Federal securities laws, with the requirements of any stock exchange or market upon which such Stock is then listed and/or traded and with any blue sky or state securities laws applicable
to such Stock. 

    3.4  Decisions Binding.  All determinations and decisions made by the Committee pursuant to the
provisions of the Plan and all related orders or resolutions of the Board shall be final, conclusive and binding on all persons, including the Company, its stockholders, Eligible Persons, Employees,
Participants and their estates. No member of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Award. 

    3.5  Costs.  The Company shall pay all costs of administration of the Plan. 

7

 

 
 

Article 4.  Stock Subject to the Plan    
  

    4.1  Number of Shares.  Subject to Section 4.2 herein, the maximum number of shares of Stock
available for grant under the Plan shall be 37,000,000 plus any shares of Stock remaining available for awards pursuant to the terms of The Allstate Corporation Equity Incentive Plan. Shares of Stock
underlying lapsed or forfeited Awards, or Awards that are not paid in Stock, may be reused for other Awards; if the Option Exercise Price is satisfied by tendering Stock, only the number of shares
issued net of the shares tendered shall be deemed issued under the Plan. Stock granted pursuant to the Plan may be (i) authorized but unissued shares of common stock or (ii) treasury
stock. 

    4.2  Adjustments in Authorized Stock and Awards.  In the event of any merger, reorganization,
consolidation, recapitalization, liquidation, stock dividend, split-up, spin-off, stock split, reverse stock split, share combination, share exchange or other change in the
corporate structure of the Company affecting the Stock, such adjustment shall be made in the number and class of shares of Stock which may be delivered under the Plan, and in the outstanding Awards
granted under the Plan, as may be determined to be appropriate and equitable by the Committee, in its sole discretion, to prevent dilution or enlargement of rights. Notwithstanding the foregoing,
(i) each such adjustment with respect to an Incentive Stock Option shall comply with the rules of Section 424(a) of the Code and (ii) in no event shall any adjustment be made
which would render any Incentive Stock Option granted hereunder to be other than an incentive stock option for purposes of Section 422 of the Code. 

    4.3  Award Limitations.  Subject to Section 4.2 above, (i) the total number of shares of
Stock with respect to which Options or SARs may be granted in any calendar year to any Covered Employee shall not exceed 1,200,000 shares; (ii) the total number of shares of Qualified
Restricted Stock or Qualified Restricted Stock Units that may be granted in any calendar year to any Covered Employee shall not exceed 1,200,000 shares or Units, as the case may be; (iii) the
total number of shares of Performance Stock or Performance Units that may be granted in any calendar year to any Covered Employee shall not exceed 1,200,000 shares or Units, as the case may be;
(iv) the total number of shares of Stock that are intended to qualify for deduction under Section 162(m) of the Code granted pursuant to Article 10 herein in any calendar year to
any Covered Employee shall not exceed 1,200,000 shares; (v) the total cash Award that is intended to qualify for deduction under Section 162(m) of the Code that may be paid pursuant to
Article 10 herein in any calendar year to any Covered Employee shall not exceed $1,200,000; and (vi) the aggregate number of Dividend Equivalents that are intended to qualify for
deduction under Section 162(m) of the Code that a Covered Employee may receive in any calendar year shall not exceed 4,800,000. 

    No
more than an aggregate of 9,000,000 shares of Stock may be granted under Article 8 (except in the form of Qualified Restricted Stock or Qualified Restricted Stock Units) and
Article 10. The maximum number of shares of Stock that may be granted subject to Incentive Stock Options shall be 9,000,000 shares. 

8

 

 
 

Article 5.  Eligibility and Participation    
  

    5.1  Eligibility.  Persons eligible to participate in the Plan ("Eligible Persons") include all key
Employees of the Company and its Subsidiaries, as determined by the Committee. 

    5.2  Actual Participation.  Subject to the provisions of the Plan, the Committee may, from time to time,
select from all Eligible Persons those to whom Awards shall be granted. 

 
 

Article 6.  Stock Options    
  

    6.1  Grant of Options.  Subject to the terms and conditions of the Plan, Options may be granted to an
Eligible Person at any time and from time to time, as shall be determined by the Committee. 

    The
Committee shall have complete discretion in determining the number of shares of Stock subject to Options granted to each Eligible Person (subject to Article 4 herein) and,
consistent with the provisions of the Plan, in determining the terms and conditions pertaining to such Options. The Committee may grant ISOs, NQSOs or a combination thereof. 

    6.2  Option Award Agreement.  Each Option grant shall be evidenced by an Option Award Agreement that
shall specify the Option Exercise Price, the term of the Option (which shall not be greater than ten (10) years), the number of shares of Stock to which the Option pertains, the Exercise Period
and such other provisions as the Committee shall determine, including but not limited to special provisions relating to a change of control and any rights to Dividend Equivalents and Reload Options.
The Option Award Agreement shall also specify whether the Option is intended to be an ISO or NQSO. The Option Exercise Price shall not be less than 100% of the Fair Market Value of the Stock on the
date of grant. 

    6.3  Exercise of and Payment for Options.  Options granted under the Plan shall be exercisable at such
times and shall be subject to such restrictions and conditions as the Committee shall in each instance approve. 

    A
Participant may exercise an Option at any time during the Exercise Period. Options shall be exercised by the delivery of a written notice of exercise to the Company, setting forth
the number of shares of Stock with respect to which the Option is to be exercised, accompanied by provision for full payment of the Stock. 

    The
Option Exercise Price shall be payable: (i) in cash or its equivalent, (ii) by tendering (by actual delivery of shares or by attestation) previously acquired Stock
(owned for at least six months) having an aggregate Fair Market Value at the time of exercise equal to the total Option Exercise Price, (iii) by broker-assisted cashless exercise or
(iv) by a combination of (i), (ii) and/or (iii). 

9

 

    Options may not be exercised for less than 25 shares of Stock unless the exercise represents the entire remaining balance of the Award. 

    Stock
received upon exercise of an Option may be granted subject to any restrictions deemed appropriate by the Committee. 

    6.4  Reload Options.  The Committee may provide in an Award Agreement that a Participant who exercises
all or any portion of an Option with Stock which has a Fair Market Value equal to not less than 100% of the Option Exercise Price for such Option shall be granted, subject to Article 4, an
additional option ("Reload Option") for a number of shares of Stock equal to the sum ("Reload Number") of the number of shares of Stock tendered in payment of the Option Exercise Price for the Options
plus, if so provided by the Committee, the number of shares of Stock, if any, retained by the Company in connection with the exercise of the Options to satisfy any federal, state or local tax
withholding requirements. 

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

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

    (ii) subject
to (iii) below, the Reload Option, upon vesting, may be exercised at any time during the unexpired term of the Option to which it relates (subject
to earlier termination thereof as provided in the Plan and in the applicable Award Agreement); and 

    (iii) the
terms of the Reload Option shall be the same as the terms of the Option to which it relates, except that (A) the Option Exercise Price shall be the
Fair Market Value of the Stock on the grant date of the Reload Option and (B) the Reload Option shall be subject to new vesting provisions, commencing one (1) year after the grant date
of the Reload Option and vesting upon the same schedule as the Option to which it relates. 

    Reload
Options may not be granted to Participants who exercise Options after a Termination of Employment. 

    Stock
subject to this Plan may be used for Reload Options granted under The Allstate Corporation Equity Incentive Plan. 

    6.5  Termination.  Each Option Award Agreement shall set forth the extent to which the Participant shall
have the right to exercise the Option following termination of the Participant's employment with the Company and its Subsidiaries. Such provisions shall be determined in the sole discretion of the
Committee (subject to applicable law), shall be included in the Option Award Agreement entered into with Participants, need not be uniform among all Options granted pursuant to the Plan or among
Participants and may reflect distinctions based on the reasons for termination. 

10

 

    To the extent the Option Award Agreement does not set forth termination provisions, the provisions of Article 13 shall control. 

    6.6  Transferability of Options.  Except as otherwise determined by the Committee, all Options granted to
a Participant under the Plan shall be exercisable during his or her lifetime only by such Participant, and no Option granted under the Plan may be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated, other than by will or by the laws of descent and distribution. ISOs are not transferable other than by will or by the laws of descent and distribution. 

    The
Committee shall have the authority, in its discretion, to grant (or to sanction by way of amendment to an existing Award) Nonqualified Stock Options, the vested portions of which
may be transferred by the Participant during his lifetime to any Family Member. A transfer of an Option pursuant hereto may only be effected by the Company at the written request of a Participant and
shall become effective only when recorded in the Company's record of outstanding Options. In the event an Option is transferred as contemplated herein, 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 Award Agreement, and the transferee shall be entitled to the same rights as the
Participant, as if no transfer had taken place. 

Article 7.  Stock Appreciation Rights  

    7.1  Grant of SARs.  Subject to the terms and conditions of the Plan, an SAR may be granted to an
Eligible Person at any time and from time to time as shall be determined by the Committee. The Committee may grant Freestanding SARs, Tandem SARs or any combination of these forms of SARs. 

    The
Committee shall have complete discretion in determining the number of SARs granted to each Eligible Person (subject to Article 4 herein) and, consistent with the provisions
of the Plan, in determining the terms and conditions pertaining to such SARs. 

    7.2  SAR Award Agreement.  Each SAR grant shall be evidenced by an SAR Award Agreement that shall specify
the number of SARs granted, the Base Value, the term of the SAR, the Exercise Period and such other provisions as the Committee shall determine, including but not limited to special provisions
relating to a change of control. 

    7.3  Exercise and Payment of SARs.  Tandem SARs may be exercised for all or part of the Stock subject to
the related Option upon the surrender of the right to exercise the equivalent portion of the related Option. A Tandem SAR may be exercised only with respect to the shares of Stock for which its
related Option is then exercisable. 

11

 

    Notwithstanding any other provision of the Plan to the contrary, with respect to a Tandem SAR granted in connection with an ISO: (i) the Tandem SAR will expire no later than
the expiration of the underlying ISO; (ii) the value of the payout with respect to the Tandem SAR may be for no more than one hundred percent (100%) of the difference between the Option
Exercise Price of the underlying ISO and the Fair Market Value of the shares of Stock subject to the underlying ISO at the time the Tandem SAR is exercised; (iii) the Tandem SAR may be
exercised only when the Fair Market Value of the shares of Stock subject to the ISO exceeds the Option Exercise Price of the ISO; and (iv) the Tandem SAR may be transferred only when the
underlying ISO is transferable, and under the same conditions. 

    Freestanding
SARs may be exercised upon whatever terms and conditions the Committee, in its sole discretion, imposes upon them. 

    A
Participant may exercise an SAR at any time during the Exercise Period. SARs shall be exercised by the delivery of a written notice of exercise to the Company, setting forth the
number of SARs being exercised. Upon exercise of an SAR, a Participant shall be entitled to receive payment from the Company in an amount equal to the product of: 

	(a)
	the
excess of (i) the Fair Market Value of a share of Stock on the date of exercise over (ii) the Base Value multiplied by

	(b)
	the
number of shares of Stock with respect to which the SAR is exercised. 

    At
the sole discretion of the Committee, the payment to the Participant upon SAR exercise may be in cash, in shares of Stock of equivalent value or in some combination thereof. 

    7.4  Termination.  Each SAR Award Agreement shall set forth the extent to which the Participant shall
have the right to exercise the SAR following termination of the Participant's employment with the Company and its Subsidiaries. Such provisions shall be determined in the sole discretion of the
Committee, shall be included in the SAR Award Agreement entered into with Participants, need not be uniform among all SARs granted pursuant to the Plan or among Participants and may reflect
distinctions based on the reasons for termination. 

    To
the extent the SAR Award Agreement does not set forth termination provisions, the provisions of Article 13 shall control. 

    7.5  Transferability of SARs.  Except as otherwise determined by the Committee, all SARs granted to a
Participant under the Plan shall be exercisable during his or her lifetime only by such Participant or his or her legal representative, and no SAR granted under the Plan may be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution. 

12

 

Article 8.  Unrestricted Stock, Restricted Stock and Restricted Stock Units  

    8.1  Grant of Unrestricted Stock, Restricted Stock and Restricted Stock Units.  Subject to the terms and
conditions of the Plan, Unrestricted Stock, Restricted Stock and/or Restricted Stock Units may be granted to an Eligible Person at any time and from time to time, as shall be determined by the
Committee. 

    The
Committee shall have complete discretion in determining the number of shares of Unrestricted Stock, Restricted Stock and/or Restricted Stock Units granted to each Eligible Person
(subject to Article 4 herein) and, consistent with the provisions of the Plan, in determining the terms and conditions pertaining to such Awards. 

    In
addition, the Committee may, prior to or at the time of grant, designate an Award of Restricted Stock or Restricted Stock Units as Qualified Restricted Stock or Qualified
Restricted Stock Units, as the case may be, in which event it will condition the grant or vesting, as applicable, of such Qualified Restricted Stock or Qualified Restricted Stock Units, as the case
may be, upon the attainment of the Performance Goals selected by the Committee. 

    8.2  Unrestricted Stock, Restricted Stock/Restricted Stock Unit Award Agreement.  Each grant of
Unrestricted Stock, Restricted Stock and/or Restricted Stock Units shall be evidenced by an Award Agreement that shall specify the number of shares of Unrestricted Stock, Restricted Stock and/or
Restricted Stock Units granted, the initial value (if applicable), the Period or Periods of Restriction (if applicable), and such other provisions as the Committee shall determine, including but not
limited to special provisions relating to a change of control. 

    8.3  Transferability.  Restricted Stock and Restricted Stock Units granted hereunder may not be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable Period of Restriction established by the Committee and specified in the Award Agreement. During
the applicable Period of Restriction, all rights with respect to the Restricted Stock and Restricted Stock Units granted to a Participant under the Plan shall be available during his or her lifetime
only to such Participant or his or her legal representative. 

    8.4  Certificates.  No certificates representing Stock shall be delivered to a Participant until such
time as all restrictions applicable to such shares have been satisfied. 

    8.5  Removal of Restrictions.  Restricted Stock shall become freely transferable by the Participant after
the last day of the Period of Restriction applicable thereto. Once Restricted Stock is released from the restrictions, the Participant shall be entitled to receive a certificate. 

    Payment
of Restricted Stock Units shall be made after the last day of the Period of Restriction applicable thereto. The Committee, in its sole discretion, may pay Restricted Stock
Units in cash or in shares of Stock of equivalent value (or in some combination thereof). 

13

 

    8.6  Voting Rights.  During the Period of Restriction, Participants may exercise full voting rights with
respect to the Restricted Stock. 

    8.7  Dividends and Other Distributions.  Subject to the Committee's right to determine otherwise at the
time of grant, during the Period of Restriction, Participants shall receive all regular cash dividends paid with respect to the Restricted Stock while they are so held. All other distributions paid
with respect to such Restricted Stock shall be credited to Participants subject to the same restrictions on transferability and forfeitability as the Restricted Stock with respect to which they were
paid and shall be paid to the Participant promptly after the full vesting of the Restricted Stock with respect to which such distributions were made. 

    Rights,
if any, to Dividend Equivalents on Restricted Stock Units shall be established by the Committee at the time of grant and set forth in the Award Agreement. 

    8.8  Termination.  Each Restricted Stock/Restricted Stock Unit Award Agreement shall set forth the extent
to which the Participant shall have the right to receive Restricted Stock and/or a Restricted Stock Unit payment following termination of the Participant's employment with the Company and its
Subsidiaries. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with Participants, need not be uniform among all grants
of Restricted Stock/Restricted Stock Units or among Participants and may reflect distinctions based on the reasons for termination. 

    To
the extent the Restricted Stock/Restricted Stock Unit Award Agreement does not set forth termination provisions, the provisions of Article 13 shall control. 

Article 9.  Performance Units and Performance Stock  

    9.1  Grant of Performance Units and Performance Stock.  Subject to the terms and conditions of the Plan,
Performance Units and/or Performance Stock may be granted to an Eligible Person at any time and from time to time, as shall be determined by the Committee. 

    The
Committee shall have complete discretion in determining the number of Performance Units and/or shares of Performance Stock granted to each Eligible Person (subject to
Article 4 herein) and, consistent with the provisions of the Plan, in determining the terms and conditions pertaining to such Awards. 

    9.2  Performance Unit/Performance Stock Award Agreement.  Each grant of Performance Units and/or shares
of Performance Stock shall be evidenced by a Performance Unit and/or Performance Stock Award Agreement that shall specify the number of Performance Units and/or shares of Performance Stock granted,
the initial value (if applicable), the Performance Period, the Performance Goals and such other provisions as the Committee shall determine, 

14

 

including but not limited to special provisions relating to a change of control and any rights to Dividend Equivalents. 

    9.3  Value of Performance Units/Performance Stock.  Each Performance Unit shall have an initial value
that is established by the Committee at the time of grant. The value of a share of Performance Stock shall be equal to the Fair Market Value of the Stock. The Committee shall set Performance Goals in
its discretion which, depending on the extent to which they are met, will determine the number and/or value of Performance Units/Performance Stock that will be paid out to the Participants. 

    9.4  Earning of Performance Units/Performance Stock.  After the applicable Performance Period has ended,
the Participant shall be entitled to receive a payout with respect to the Performance Units/Performance Stock earned by the Participant over the Performance Period, to be determined as a function of
the extent to which the corresponding Performance Goals have been achieved. 

    9.5  Form and Timing of Payment of Performance Units/Performance Stock.  Payment of earned Performance
Units/Performance Stock shall be made following the close of the applicable Performance Period. The Committee, in its sole discretion, may pay earned Performance Units/Performance Stock in cash or in
Stock (or in a combination thereof), which has an aggregate Fair Market Value equal to the value of the earned Performance Units/Performance Stock at the close of the applicable Performance Period.
Such Stock may be granted subject to any restrictions deemed appropriate by the Committee. 

    9.6  Termination.  Each Performance Unit/Performance Stock Award Agreement shall set forth the extent to
which the Participant shall have the right to receive a Performance Unit/Performance Stock payment following termination of the Participant's employment with the Company and its Subsidiaries during a
Performance Period. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with Participants, need not be uniform among all
grants of Performance Units/Performance Stock or among Participants and may reflect distinctions based on reasons for termination. 

    To
the extent the Performance Unit/Performance Stock Award Agreement does not set forth termination provisions, the provisions of Article 13 shall control. 

    9.7  Transferability.  Except as otherwise determined by the Committee, a Participant's rights with
respect to Performance Units/Performance Stock granted under the Plan shall be available during the Participant's lifetime only to such Participant or the Participant's legal representative and
Performance Units/Performance Stock may not be sold, transferred, pledged, assigned or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution. 

15

 

Article 10.  Other Awards  

    The Committee shall have the right to grant other Awards which may include, without limitation, the payment of Stock in lieu of cash, the payment of cash based
on attainment of Performance Goals established by the Committee and the payment of Stock in lieu of cash under other Company incentive or bonus programs. Payment under or settlement of any such Awards
shall be made in such manner and at such times as the Committee may determine. 

Article 11.  Deferrals  

    The Committee may, in its sole discretion, permit a Participant to defer the Participant's receipt of the payment of cash or the delivery of Stock that would
otherwise be due to such Participant under the Plan. If any such deferral election is permitted, the Committee shall, in its sole discretion, establish rules and procedures for such payment deferrals. 

Article 12.  Rights of Participants  

    12.1  Termination.  Nothing in the Plan shall interfere with or limit in any way the right of the Company
or any Subsidiary to terminate any Participant's employment or other relationship with the Company or any Subsidiary at any time, for any reason or no reason in the Company's or the Subsidiary's sole
discretion, nor confer upon any Participant any right to continue in the employ of, or otherwise in any relationship with, the Company or any Subsidiary. 

    12.2  Participation.  No Eligible Person shall have the right to be selected to receive an Award under
the Plan, or, having been so selected, to be selected to receive a future Award. 

    12.3  Limitation of Implied Rights.  Neither a Participant nor any other Person shall, by reason of the
Plan, acquire any right in or title to any assets, funds or property of the Company or any Subsidiary whatsoever, including, without limitation, any specific funds, assets or other property which the
Company or any Subsidiary, in their sole discretion, may set aside in anticipation of a liability under the Plan. A Participant shall have only a contractual right to the Stock or amounts, if any,
payable
under the Plan, unsecured by any assets of the Company or any Subsidiary. Nothing contained in the Plan shall constitute a guarantee that the assets of such companies shall be sufficient to pay any
benefits to any Person. 

    Except
as otherwise provided in the Plan, no Award under the Plan shall confer upon the holder thereof any right as a stockholder of the Company prior to the date on which the
individual fulfills all conditions for receipt of such rights. 

    12.4  Waiver.  Each Participant, by acceptance of an Award, waives all rights to specific performance or
injunctive or other equitable relief and acknowledges that he has an adequate remedy at law in the form of damages. 

16

 

Article 13.  Termination of Employment  

    13.1  Options.  If a Participant has a Termination of Employment, then, unless otherwise provided by the
Committee or in the Award Agreement, the following provisions shall apply: 

     (i) if
the Participant's Termination of Employment is on account of death or Disability, then all outstanding Options, to the extent not vested, shall vest, and all
outstanding Options may be exercised, in whole or in part, by the Participant (or his personal representative, estate or transferee, as the case may be) at any time on or before the earlier to occur
of (x) the Expiration Date of the Option and (y) the second anniversary of the date of such Termination of Employment; 

    (ii) if
the Participant's Termination of Employment is on account of Retirement at the Normal Retirement Date or Health Retirement Date, unvested Options shall continue
to vest in accordance with their terms, and all outstanding Options, when vested, may be exercised, in whole or in part, by the Participant at any time on or before the earlier to occur of
(x) the Expiration Date of the Option and (y) the fifth anniversary of the date of such Termination of Employment; 

    (iii) if
the Participant's Termination of Employment is on account of Retirement at the Early Retirement Date, unvested Options shall be forfeited, and Options, to the
extent they are vested on the date of Termination of Employment, may be exercised, in whole or in part, by the Participant at any time on or before the earlier to occur of (x) the Expiration
Date of the Option and (y) the fifth anniversary of the date of such Termination of Employment; 

    (iv) if
the Participant's Termination of Employment is for any other reason, unvested Options shall be forfeited, and Options, to the extent they are vested on the date
of Termination of Employment, may be exercised, in whole or in part, by the Participant at any time on or before the earlier to occur of
(x) the Expiration Date of the Option and (y) three months after the date of such Termination of Employment; and 

    (v) if
(A) the Participant's Termination of Employment is for any reason other than death and (B) the Participant dies after such Termination of
Employment but before the date the Options must be exercised as set forth in the preceding subsections, unvested Options shall be forfeited and any Options, to the extent they are vested on the date
of the Participant's death, may be exercised, in whole or in part, by the Participant's personal representative, estate or transferee, as the case may be, at any time on or before the earliest to
occur of (x) the Expiration Date of the Option, (y) the second anniversary of the date of death and (z) the applicable anniversary of the Termination of Employment as set forth in
subsections (i) through (iv) above. 

    Reload
Options may not be granted after a Termination of Employment. 

17

 

    13.2  Other Awards.  If a Participant has a Termination of Employment, then, unless otherwise provided by
the Committee or in the Award Agreement, all Awards other than Options shall terminate and be forfeited on the date of such Termination of Employment. 

Article 14.  Equity Incentive Plans of Foreign Subsidiaries  

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

Article 15.  Amendment, Modification and Termination  

    The Board may, at any time and from time to time, alter, amend, suspend or terminate the Plan in whole or in part, without the approval of the stockholders of
the Company, except as stockholder approval may be required (i) to permit the Company to deduct, in computing its income tax liability pursuant to the provisions of the Code, compensation
resulting from Awards, (ii) to retain incentive stock option treatment under Section 422 of the Code or (iii) under the listing requirements of any securities exchange on which
are listed any of the Company's equity securities. 

    No
termination, amendment or modification of the Plan shall adversely affect in any material way any Award previously granted under the Plan, without the written consent of the
Participant holding such
Award, unless such termination, modification or amendment is required by applicable law and except as otherwise provided herein. 

Article 16.  Payment for Awards and Withholding  

    16.1  Payment for Awards.  In the event a Participant elects to pay the Option Exercise Price or make
payment for any other Award through tender of previously acquired Stock, (i) only a whole number of share(s) of Stock (and not fractional shares of Stock) may be tendered in payment,
(ii) such Participant must present evidence acceptable to the Company that he has owned any such shares of Stock tendered in payment (and that such shares of Stock tendered have not been
subject to any substantial risk of forfeiture) for at least six months prior to the date of exercise and (iii) Stock must be tendered to the Company, either by actual delivery of the shares or
by attestation. When payment is made by tender of Stock, the difference, if any, between the 

18

 

aggregate amount payable and the Fair Market Value of the share(s) of Stock tendered in payment (plus any applicable taxes) shall be paid by check. No Participant may tender shares of Stock having a
Fair Market Value exceeding the aggregate Option Exercise Price or other payment due. 

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

     (i) allow
a Participant to defer payment to the Company of all or any portion of (x) the Option Exercise Price of any option or (y) any taxes associated
with a benefit hereunder which is not a cash benefit at the time such benefit is so taxable, or 

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

    Any
such payment deferral or guarantee by the Company pursuant to this section shall be on a secured or unsecured basis, for such periods, at such interest rates, and on such other
terms and conditions as the Committee may determine. Notwithstanding the foregoing, a Participant shall not be entitled to defer the payment of such Option Exercise Price or any related taxes unless
the Participant (x) enters into a binding obligation to pay the deferred amount and (y) except with respect to treasury stock, pays upon exercise of an Option an amount equal to or
greater than the aggregate Minimum Consideration therefor. If the Committee has permitted a payment deferral or caused the Company to guarantee a loan pursuant to this section, then the Committee may,
in its discretion, require the immediate payment of such deferred amount or the immediate release of such guarantee upon the Participant's Termination of Employment or if the Participant sells or
otherwise transfers the Participant's shares of Stock purchased pursuant to such deferral or guarantee. 

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

    16.4  Tax Withholding.  The Company shall have the power and the right to deduct or withhold, or require
a Participant to remit to the Company, an amount (including any Stock withheld as provided below) sufficient to satisfy Federal, state and local taxes (including the Participant's FICA obligation)
required by law to be withheld with respect to an Award made under the Plan. 

19

 

    16.5  Stock Withholding.  With respect to tax withholding required upon the exercise of Options or SARs,
upon the lapse of restrictions on Restricted Stock, or upon any other taxable event arising out of or as a result of Awards granted hereunder, Participants may elect to satisfy the withholding
requirement, in whole or in part, by tendering Stock held by the Participant (by actual delivery of the shares or by attestation) or by having the Company withhold Stock having a Fair Market Value
equal to the minimum statutory total tax which could be imposed on the transaction. All elections shall be irrevocable, made in writing and signed by the Participant. 

Article 17.  Substituted Awards  

    The Committee may grant substituted awards for any cancelled Award granted under this Plan or any plan of any entity acquired by the Company or any of its
Subsidiaries in accordance with this Article. If the Committee cancels any Award (granted under this Plan, or any plan of any entity acquired by the Company or any of its Subsidiaries), and a new
Award is substituted therefor, then the Committee may, in its discretion, determine the terms and conditions of such new Award provided that, subject to Section 4.2, if the Award is an Option,
the Option Exercise Price for the substituted Award shall not be less than the Option Exercise Price of the cancelled Award, and may provide that the grant date of the cancelled Award shall be the
date used to determine the earliest date or dates for exercising or vesting the new substituted Award so that the Participant may exercise the substituted Award, or the substituted Award may vest, at
the same time as if the Participant had held the substituted Award since the grant date of the cancelled Award. 

Article 18.  Successors  

    All obligations of the Company under the Plan, with respect to Awards granted hereunder, shall be binding on any successor to the Company, whether the
existence of such successor is the result of a direct or indirect purchase, merger, consolidation or otherwise of all or substantially all of the business and/or assets of the Company. 

Article 19.  Legal Construction  

    19.1  Gender and Number.  Except where otherwise indicated by the context, any masculine term used herein
also shall include the feminine, the plural shall include the singular and the singular shall include the plural. 

    19.2  Severability.  In the event any provision of the Plan shall be held illegal or invalid for any
reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 

    19.3  Requirements of Law.  The granting of Awards and the issuance of Stock under the Plan shall be
subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 

20

 

    19.4  Governing Law.  To the extent not preempted by Federal law, the Plan, and all agreements hereunder,
shall be construed in accordance with, and governed by, the laws of the State of Delaware, except with regard to conflicts of law provisions. 

21Prepared by MERRILL CORPORATION

Exhibit 10.4  

THE ALLSTATE CORPORATION

2001 EQUITY INCENTIVE PLAN

OPTION AWARD AGREEMENT  

[Addressee]

    In
accordance with the terms of The Allstate Corporation 2001 Equity Incentive Plan (the "Plan"), pursuant to action of the Compensation and Succession Committee of the Board of
Directors, The Allstate Corporation hereby grants to you (the "Participant"), subject to the terms and conditions set forth in this Option Award Agreement (including Annex A hereto and all documents
incorporated herein by reference) the right and option (the "Option") to purchase from the Company the number of shares of its common stock, par value $.01 per share, set forth below: 

	 	Type of Option Granted:	 	Nonqualified
	

 	

Number of Shares to which Option	
 	

 
	 	Pertains:	 	XXXXXX
	

 	

Date of Grant:	
 	

May 15, 2001
	

 	

Option Exercise Price:	
 	

$        , which is the Fair Market Value on the Date of Grant
	

 	

Vesting:	
 	

Four equal installments, each for one-quarter of the total number of said shares, such installments to vest, respectively, on May 15, 2002, May 15, 2003, May 15, 2004 and May 15, 2005 (subject to Sections 2 and 4 of
Annex A)
	

 	

Expiration Date:	
 	

Close of business on May 15, 2011
	

 	

Exercise Period:	
 	

Date of Vesting through Expiration Date (subject to Section 2 of Annex A)
	

 	

Reload Options:	
 	

Reload Options are granted on the Option exercise for the number of shares of Stock tendered in payment of the Option Exercise Price

THIS
OPTION IS SUBJECT TO FORFEITURE AS PROVIDED IN THIS OPTION AWARD AGREEMENT AND THE PLAN. 

    Further terms and conditions of the Award are set forth in Annex A, which is an integral part of this Option Award Agreement. 

    All
terms, provisions and conditions applicable to the Awards set forth in the Plan and not set forth herein are hereby incorporated by reference. To the extent any provision hereof
is inconsistent with a provision of the Plan, the provision of the Plan will govern. By accepting this Award, the Participant hereby acknowledges the receipt of a copy of this Option Award Agreement
including Annex A and a copy of the Prospectus and agrees to be bound by all the terms and provisions hereof and thereof. 

	 	Edward M. Liddy

Chairman, President and Chief Executive Officer

THE ALLSTATE CORPORATION

PARTICIPANT AGREEMENT AND ACCEPTANCE  

    As consideration for the grant of the Option subject to this Option Award Agreement and the grant of all future Awards, notwithstanding the provisions of
Section 2.3 of my Change of Control Employment Agreement ("COC Agreement"), I agree that upon a Change of Control as defined in my COC Agreement all Options or Restricted Stock shall, to the
extent not previously exercisable or nonforfeitable, become fully exercisable or non-forfeitable, as applicable, upon the consummation, rather than upon stockholder approval, of a Change
of Control as defined in Section 1.23(c) of my COC Agreement. I hereby waive any right that might otherwise exist under such Section 2.3 of my COC Agreement to accelerated vesting or
nonforfeitability of this Option and future Awards upon stockholder approval rather than upon consummation of such a Change of Control. 

	
 Signature of Participant	 
	

 Date	

 
	

Attachment: Annex A	

 

ANNEX A  

 TO  

 THE ALLSTATE CORPORATION

2001 EQUITY INCENTIVE PLAN

OPTION AWARD AGREEMENT  

    Further Terms and Conditions of Option.  It is understood and agreed that the Award of the Option evidenced by this
Option Award Agreement to which this is annexed is subject to the following additional terms and conditions: 

    1.  Exercise of Option.  To the extent vested and subject to Section 2 below, the Option may be
exercised in whole or in part from time to time by delivery of written notice of exercise and payment to Stock Option Record Office, The Allstate Corporation, 2775 Sanders
Road, Ste F5, Northbrook, Illinois 60062, unless the Company advises the Participant to send the notice and payment to a different
address or a designated representative. Such notice and payment must be received not later than the Expiration Date, specifying the number of shares of Stock to be purchased.
The minimum number of Shares to be purchased in a partial exercise shall be the lesser of 25 shares and the number of shares remaining unexercised under this Award. In the event that the Expiration
Date falls on a day that is not a regular business day at the Company's executive offices in Northbrook, Illinois, such written notice must be delivered no later than the next regular business day
following the Expiration Date. 

    The
Option Exercise Price shall be payable: (a) in cash or its equivalent, (b) by tendering previously acquired Stock (owned for at least six months) having an aggregate
Fair Market Value at the time of exercise equal to the total Option Exercise Price, (c) by broker-assisted cashless exercise or (d) by a combination of (a), (b), and/or (c). 

    With
respect to tax withholding required upon exercise of the Option, the Participant may elect to satisfy such withholding requirements in whole or in part, by having Stock with a
Fair Market Value equal to the minimum statutory total tax which could be imposed on the transaction withheld from the shares due upon Option exercise. 

    2.  Termination of Employment.  Except as otherwise specifically provided in Section 4 of this
Annex A with respect to vesting, in The Allstate Corporation Change of Control Severance Plan (to the extent such plan is applicable to the Participant) or in another written agreement with the
Company to which the Participant is a party, if the Participant has a Termination of Employment, the following provisions shall apply: 

     (i) if
the Participant's Termination of Employment is on account of death or Disability, then the Option, to the extent not vested, shall vest, and the Option may be 

exercised, in whole or in part, by the Participant (or his personal representative, estate or transferee, as the case may be) at any time on or before the earlier to occur of (x) the Expiration
Date of the Option and (y) the second anniversary of the date of such Termination of Employment; 

    (ii) if
the Participant's Termination of Employment is on account of Retirement at the Normal Retirement Date or Health Retirement Date, the Option to the extent it is
not vested, shall continue to vest in accordance with its terms, and when vested, may be exercised, in whole or in part, by the Participant at any time on or before the earlier to occur of
(x) the Expiration Date of the Option and (y) the fifth anniversary of the date of such Termination of Employment; 

    (iii) if
the Participant's Termination of Employment is on account of Retirement at the Early Retirement Date, any portion of the Option that is not vested shall be
forfeited, and the Option, to the extent it is vested on the date of Termination of Employment, may be exercised, in whole or in part, by the Participant at any time on or before the earlier to occur
of (x) the Expiration Date of the Option and (y) the fifth anniversary of the date of such Termination of Employment; 

    (iv) if
the Participant's Termination of Employment is for any other reason, any portion of the Option that is not vested shall be forfeited, and the Option, to the
extent it is vested on the date of Termination of Employment, may be exercised, in whole or in part, by the Participant at any time on or before the earlier to occur of (x) the Expiration Date
of the Option and (y) three months after the date of such Termination of Employment; and 

    (v) if
(A) the Participant's Termination of Employment is for any reason other than death and (B) the Participant dies after such Termination of
Employment but before the date the Option must be exercised as set forth in the preceding subsections, any portion of the Option that is not vested shall be forfeited and the Option, to the extent it
is vested on the date of the Participant's death, may be exercised, in whole or in part, by the Participant's personal representative, estate or transferee, as the case may be, at any time on or
before the earliest to occur of (x) the Expiration Date of the Option, (y) the second anniversary of the date of death and (z) the applicable anniversary of the Termination of
Employment as set forth in subsections (i) through (iv) above. 

    3.  Transferability of Options.  Except as set forth in this Section 3, the Option shall be
exercisable during the Participant's lifetime only by the Participant, and may not be assigned or transferred other than by will or the laws of descent and distribution. The Option, to the extent
vested, may be transferred by the Participant during his lifetime to any "Family Member", defined as any child, stepchild, grandchild, parent, stepparent, grandparent, spouse or sibling, including
adoptive relationships; a trust in which these persons have more than fifty (50) percent of the beneficial interest; a foundation in which these persons (or the Participant) control the
management of assets, and any other entity in which these persons (or the Participant) own more than fifty (50) percent of the voting interests. A transfer of the Option pursuant to this
Section 3 may only be effected by the 

Company at the written request of a Participant and shall be effective only when recorded in the Company's record of outstanding Options. In the event an Option is transferred, any Reload Options
associated with such transferred Option shall terminate. 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 this Option Award Agreement, and the transferee shall be entitled to the same
rights as the Participant, as if no transfer had taken place. 

    4.  Change of Control.  (a) Except as otherwise specifically provided in The Allstate Corporation
Change of Control Severance Plan (to the extent such plan is applicable to the Participant) or another written agreement with the Company to which the Participant is a party, the Option, to the extent
not vested, shall vest (i) on the Change of Control Effective Date of a Change of Control, as defined in paragraphs (a), (b), (d) and (e) of the definition of Change of Control in
Section 8, that is not a Merger of Equals, or (ii) on the Consummation Date of a Change of Control as defined in paragraph (c) of such definition of a Change of Control that is
not a Merger of Equals or (iii) if applicable, on a later Merger of Equals Cessation Date, and the Option may be exercised in whole or in part, subject to the time periods for exercise set
forth in Section 2 of this Annex A. 

    (b) Notwithstanding
the vesting provisions in Section 2, if a Participant has a Termination of Employment during the Post-Merger of Equals Period,
which Termination of Employment is initiated by the Participant's employer for a reason other than Cause or Disability, then the Option, to the extent not vested, shall vest and the Option may be
exercised, in whole or in part, subject to the time periods for exercise set forth in Section 2 of this Annex A. 

    5.  Ratification of Actions.  By accepting the Award or other benefit under the Plan, the Participant and
each person claiming under or through him shall be conclusively deemed to have indicated the Participant's acceptance and ratification of, and consent to, any action taken under the Plan or the Award
by the Company, the Board or the Compensation and Succession Committee. 

    6.  Notices.  Any notice hereunder to the Company shall be addressed to its Stock Option Record Office
and any notice hereunder to the Participant shall be addressed to him at the address specified on this Option Award Agreement, subject to the right of either party to designate at any time hereafter
in writing some other address. 

    7.  Governing Law and Severability.  To the extent not preempted by Federal law, this Option Award
Agreement will be governed by and construed in accordance with the laws of the State of Delaware, without regard to conflicts of law provisions. In the event any provision of the Option Award
Agreement shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of this Option Award Agreement, and this Option Award Agreement shall be
construed and enforced as if the illegal or invalid provision had not been included. 

    8.  Definitions.  In addition to the following definitions, capitalized terms not otherwise defined
herein shall have the meanings given them in the Plan. 

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

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

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

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

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

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

    (c) prior
to such Person's becoming a 20% Owner, at least two-thirds of the Allstate Incumbent Directors (such Allstate Incumbent Directors to be determined
as of the Date of Grant as the baseline date) shall have voted in 

favor of a resolution adopted by the Board to the effect that: (1) the terms and conditions of such Person's investment in the Company will not have the effect of changing or influencing the
control of the Company, and (2) notwithstanding clause (a) of the definition of "Change of Control," such Person's becoming a 20% Owner shall be treated as though it were a Merger of
Equals for purposes of the Plan. 

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

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

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

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

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

    (c) Approval
by the stockholders of the Company of a merger, reorganization, consolidation, or similar transaction, or a plan or agreement for 

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

    (d) The
consummation by the Company of a Reorganization Transaction that for any reason fails to qualify as an Exempt Reorganization Transaction as of the date of such
consummation, notwithstanding the fact that such Reorganization Transaction was expected to so qualify as of the date of such stockholder approval; or 

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

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

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

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

    "Controlled Affiliate" of a Person means any corporation, business trust, or 

limited liability company or partnership with respect to which such Person owns, directly or indirectly, Voting Securities representing more than 50% of the aggregate voting power of the
then-outstanding Voting Securities. 

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

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

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

    (1) at
least 50%, but not more than 70%, of the common stock of the surviving Corporation outstanding immediately after the consummation of the Reorganization
Transaction, together with Voting Securities representing at least 50%, but not more than 70%, of the combined voting power of all Voting Securities of the Surviving Corporation outstanding
immediately after such consummation shall be owned, directly or indirectly, by the persons who were the owners directly or indirectly of the common stock and Voting Securities of the Company
immediately before such consummation in substantially the same proportions as their respective direct or indirect ownership, immediately before such consummation, of the common stock and Voting
Securities of the Company, respective; and 

    (2) Allstate
Incumbent Directors (determined as of such date using the date immediately preceding the Change of Control Effective Date as the baseline date) shall,
throughout the period beginning on the 

Change of Control Effective Date and ending on the third anniversary of the Change of Control Effective Date, continue to constitute not less than 50% of the members of the Board; and 

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

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

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

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

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

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

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

    "Merger of Equals Cessation Date"—see the definition of "Merger of Equals". 

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

body or department. 

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

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

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

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

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

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

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

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