exv4w6






Exhibit 4.6




PULTE HOMES, INC.

2004 STOCK INCENTIVE PLAN

(As Amended and Restated as of July 9, 2009)




I. INTRODUCTION



1.1. Purposes. The purposes of the Pulte Homes, Inc. 2004 Stock Incentive Plan (this
“Plan”) are (i) to align the interests of the Company’s stockholders and the recipients of
awards under this Plan by increasing the proprietary interest of such recipients in the Company’s
growth and success, (ii) to advance the interests of the Company by attracting and retaining
officers, other employees, nonemployee directors, consultants, independent contractors and agents
and (iii) to motivate such persons to act in the long-term best interests of the Company and its
stockholders.




1.2. Certain Definitions.




     “Agreement” shall mean the written agreement evidencing an award hereunder between the
Company and the recipient of such award.



     “Board” shall mean the Board of Directors of the Company.



     “Change in Control” shall have the meaning set forth in Section 5.8(b).



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



     “Committee” shall mean the committee designated by the Board, consisting of two or
more members of the Board, each of whom may be (i) a “Non-Employee Director” within the meaning of
Rule 16b-3 under the Exchange Act, (ii) an “outside director” within the meaning of Section 162(m)
of the Code and (iii) “independent” within the meaning of the rules of the New York Stock Exchange
or, if the Common Stock is not listed on the New York Stock Exchange, within the meaning of the
rules of the principal national stock exchange on which the Common Stock is then traded.



     “Common Stock” shall mean the common stock, $.01 par value, of the Company.



     “Company” shall mean Pulte Homes, Inc., a Michigan corporation, or any successor
thereto.



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



     “Exempt Persons” shall mean William J. Pulte, his spouse, any trust or other entity
established for the benefit of either or both of such persons, or any charitable organization
established by either or both of such persons.




     “Fair Market Value” shall mean the average of the high and low transaction prices of a
share of Common Stock on the New York Stock Exchange on the date as of which such value is being
determined or, if the Common Stock is not listed on the New York Stock Exchange, the



 









 







average of the high and low transaction prices of a share of Common Stock on the principal
national stock exchange on which the Common Stock is traded on the date as of which such value is
being determined, or if there shall be no reported transaction for such date, on the next preceding
date for which a transaction was reported; provided, however, that if Fair Market
Value for any date cannot be so determined, Fair Market Value shall be determined by the Committee
by whatever means or method as the Committee, in the good faith exercise of its discretion, shall
at such time deem appropriate.



     “Free-Standing SAR” shall mean an SAR which is not granted in tandem with, or by
reference to, an option, which entitles the holder thereof to receive, upon exercise, shares of
Common Stock (which may be Restricted Stock), cash or a combination thereof with an aggregate value
equal to the excess of the Fair Market Value of one share of Common Stock on the date of exercise
over the base price of such SAR, multiplied by the number of such SARs which are exercised.



     “Incentive Stock Option” shall mean an option to purchase shares of Common Stock that
meets the requirements of Section 422 of the Code, or any successor provision, which is intended by
the Committee to constitute an Incentive Stock Option.



     “Incumbent Board” shall have the meaning set forth in Section 5.8(b)(2).



     “Mature Shares” shall mean previously-acquired shares of Common Stock for which the
holder thereof has good title, free and clear of all liens and encumbrances, and which such holder
either (i) has held for at least six months or (ii) has purchased on the open market.



     “Non-Qualified Stock Option” shall mean an option to purchase shares of Common Stock
which is not an Incentive Stock Option.



     “Outstanding Common Stock” shall have the meaning set forth in Section 5.8(b)(1).



     “Outstanding Voting Securities” shall have the meaning set forth in Section 5.8(b)(1).



     “Performance Measures” shall mean the criteria and objectives, established by the
Committee, which shall be satisfied or met (i) as a condition to the grant or exercisability of all
or a portion of an option or SAR, (ii) as a condition to the grant of a Stock Award or (iii) during
the applicable Restriction Period or Performance Period as a condition to the holder’s receipt, in
the case of a Restricted Stock Award, of the shares of Common Stock subject to such award, or, in
the case of a Restricted Stock Unit Award or a Performance Share Award, of the shares of Common
Stock subject to such award and/or of payment with respect to such award. To the extent necessary
for an award to be qualified performance-based compensation under Section 162(m) of the Code and
the regulations thereunder, such criteria and objectives shall include one or more of the following
objective corporate-wide or subsidiary, division, operating unit or individual measures: earnings;
earnings per share; earnings before interest and taxes (“EBIT”); earnings before interest, taxes,
depreciation and amortization (“EBITDA”); financial return ratios; return on equity; return on
assets; total shareholder return; net income; pre-tax income; operating income; revenues; profit
margin; cash flow(s); expense management; economic profit; customer satisfaction; mortgage capture
rates; productivity; efficiency; employee retention; succession management; management of service
and warranty costs; management of the cost of



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insurance claims; achievement of energy performance goals; measurable marketing effectiveness;
or achievement of diversity goals. Each such goal may be expressed on an absolute or relative
basis, may include comparisons based on current internal targets, the past performance of the
Company (including the performance of or one or more subsidiaries, divisions or operating units) or
the past or current performance of other companies (or a combination of such past and current
performance) and may include or exclude objectively determinable components of any performance
goal, including, without limitation, special charges such as restructuring or impairment charges,
gains on land sales below original basis, non-cash amortization, or tax refunds or payments. In
the case of earnings-based measures, in addition to the ratios specifically enumerated above,
performance goals may include comparisons relating to capital (including, but not limited to, the
cost of capital), shareholders’ equity, shares outstanding, assets or net assets, or any
combination thereof. The measures utilized in establishing performance goals under this Plan for
any given Performance Period shall be determined in accordance with generally accepted accounting
principles (“GAAP”) and in a manner consistent with the methods used in the Company’s audited
consolidated financial statements, to the extent applicable, without regarding to (a) extraordinary
or other nonrecurring or unusual items, as determined by the Company’s independent public
accountants in accordance with GAAP, (b) changes in accounting, as determined by the Company’s
independent public accountants in accordance with GAAP, or (c) pre-acquisition costs, unless, in
each case, the Committee decides otherwise or as otherwise required under Section 162(m) of the
Code.



     “Performance Period” shall mean any period designated by the Committee during which
the Performance Measures applicable to a Performance Share Award shall be measured.



     “Performance Share” shall mean a right, contingent upon the attainment of specified
Performance Measures within a specified Performance Period, to receive one share of Common Stock,
which may be Restricted Stock, or in lieu of all or a portion thereof, the Fair Market Value of
such share of Common Stock in cash.



     “Performance Share Award” shall mean an award of Performance Shares under this Plan.



     “Person” shall have the meaning set forth in Section 5.8(b)(1).



     “Restricted Stock” shall mean shares of Common Stock which are subject to a
Restriction Period.



     “Restricted Stock Award” shall mean an award of Restricted Stock under this Plan.



     “Restricted Stock Unit” shall mean a right which entitles the holder thereof to
receive, upon vesting, shares of Common Stock, cash or a combination thereof with an aggregate
value equal to the Fair Market Value of one share of Common Stock on the date of vesting.



     “Restricted Stock Unit Award” shall mean an award of Restricted Stock Units under this
Plan.



     “Restriction Period” shall mean any period designated by the Committee during which
(i) the Common Stock subject to a Restricted Stock Award may not be sold, transferred,



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assigned, pledged, hypothecated or otherwise encumbered or disposed of, except as provided in
this Plan or the Agreement relating to such award, or (ii) the restrictions applicable to a
Restricted Stock Unit Award shall remain in effect.



     “SAR” shall mean a stock appreciation right, which may be a Free-Standing SAR or a
Tandem SAR.



     “Stock Award” shall mean a Restricted Stock Award, an Unrestricted Stock Award or a
Restricted Stock Unit Award.



     “Subsidiary” shall mean any corporation, limited liability company, partnership, joint
venture or similar entity in which the Company owns, directly or indirectly, an equity interest
possessing more than 25% of the combined voting power of the total outstanding equity interests of
such entity.



     “Tandem SAR” shall mean an SAR which is granted in tandem with, or by reference to, an
option (including a Non-Qualified Stock Option granted prior to the date of grant of the SAR),
which entitles the holder thereof to receive, upon exercise of such SAR and surrender for
cancellation of all or a portion of such option, shares of Common Stock (which may be Restricted
Stock), cash or a combination thereof with an aggregate value equal to the excess of the Fair
Market Value of one share of Common Stock on the date of exercise over the base price of such SAR,
multiplied by the number of shares of Common Stock subject to such option, or portion thereof,
which is surrendered.



     “Tax Date” shall have the meaning set forth in Section 5.5.



     “Ten Percent Holder” shall have the meaning set forth in Section 2.1(a).



     “Unrestricted Stock” shall mean shares of Common Stock which are not subject to a
Restriction Period or Performance Measures.



     “Unrestricted Stock Award” shall mean an award of Unrestricted Stock under this Plan.


1.3. Administration. This Plan shall be administered by the Committee. Any one or a
combination of the following awards may be made under this Plan to eligible persons: (i) options
to purchase shares of Common Stock in the form of Incentive Stock Options or Non-Qualified Stock
Options, (ii) SARs in the form of Tandem SARs or Free-Standing SARs, (iii) Stock Awards in the form
of Restricted Stock, Unrestricted Stock or Restricted Stock Units and (iv) Performance Shares. The
Committee shall, subject to the terms of this Plan, select eligible persons for participation in
this Plan and determine the form, amount and timing of each award to such persons and, if
applicable, the number of shares of Common Stock, the number of SARs, the number of Restricted
Stock Units and the number of Performance Shares subject to such an award, the exercise price or
base price associated with the award, the time and conditions of exercise or settlement of the
award and all other terms and conditions of the award, including, without limitation, the form of
the Agreement evidencing the award. The Committee may, in its sole discretion and for any reason
at any time, subject to the requirements of Section 162(m) of the Code and regulations thereunder
in the case of an award intended to be qualified performance-based compensation, take action such
that (i) any or all outstanding options and


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SARs shall become exercisable in part or in full, (ii) subject to the minimum Restriction Period
requirement contained in Section 3.2(b) applicable to Stock Awards, all or a portion of the
Restriction Period applicable to any outstanding Restricted Stock Award or Restricted Stock Unit
Award shall lapse, (iii) subject to the minimum Performance Period requirement contained in Section
4.2(b) applicable to Performance Share Awards, all or a portion of the Performance Period
applicable to any outstanding Performance Share Award shall lapse and (iv) subject to the minimum
Restriction Period requirement contained in Section 3.2(b) applicable to Stock Awards and the
minimum Performance Period requirement contained in Section 4.2(b) applicable to Performance Share
Awards, the Performance Measures (if any) applicable to any outstanding award shall be deemed to be
satisfied at the maximum or any other level. The Committee shall, subject to the terms of this
Plan, interpret this Plan and the application thereof, establish rules and regulations it deems
necessary or desirable for the administration of this Plan and may impose, incidental to the grant
of an award, conditions with respect to the award, such as limiting competitive employment or other
activities. All such interpretations, rules, regulations and conditions shall be final, binding
and conclusive.




     The Committee may delegate some or all of its power and authority hereunder to the Board or,
subject to the applicable law, to the Chief Executive Officer or other executive officer of the
Company as the Committee deems appropriate; provided, however, that (i) the
Committee may not delegate its power and authority to the Board or the Chief Executive Officer or
other executive officer of the Company with regard to the grant of an award to any person who is a
“covered employee” within the meaning of Section 162(m) of the Code or who, in the Committee’s
judgment, is likely to be a covered employee at any time during the period an award hereunder to
such employee would be outstanding and (ii) the Committee may not delegate its power and authority
to the Chief Executive Officer or other executive officer of the Company with regard to the
selection for participation in this Plan of an officer or other person subject to Section 16 of the
Exchange Act or decisions concerning the timing, pricing or amount of an award to such an officer
or other person.



     No member of the Board or Committee, and neither the Chief Executive Officer nor any other
executive officer to whom the Committee delegates any of its power and authority hereunder, shall
be liable for any act, omission, interpretation, construction or determination made in connection
with this Plan in good faith, and the members of the Board and the Committee and the Chief
Executive Officer or other executive officer shall be entitled to indemnification and reimbursement
by the Company in respect of any claim, loss, damage or expense (including attorneys’ fees) arising
therefrom to the full extent permitted by law, except as otherwise may be provided in the Company’s
Articles of Incorporation and/or By-laws, and under any directors’ and officers’ liability
insurance that may be in effect from time to time.



     A majority of the Committee shall constitute a quorum. The acts of the Committee shall be
either (i) acts of a majority of the members of the Committee present at any meeting at which a
quorum is present or (ii) acts approved in writing by all of the members of the Committee without a
meeting.


1.4. Eligibility. Participants in this Plan shall consist of such officers, other
employees, nonemployee directors, consultants, independent contractors and agents, and persons
expected to become officers, other employees, nonemployee directors, consultants, independent
contractors


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and agents, of the Company or a Subsidiary as the Committee in its sole discretion may select from
time to time. For purposes of this Plan, references to employment shall also mean an agency or
independent contractor relationship and references to employment by the Company shall also mean
employment by a Subsidiary. The Committee’s selection of a person to participate in this Plan at
any time shall not require the Committee to select such person to participate in this Plan at any
other time.




1.5. Shares Available.




     (a) Subject to adjustment as provided in Section 5.7, the number of shares of Common Stock
which shall be available for awards under this Plan shall be 13,637,301 as of March 19, 2009,
reduced by the sum of the aggregate number of shares of Common Stock which become subject to
outstanding options, outstanding Free-Standing SARs, outstanding Stock Awards and outstanding
Performance Share Awards after such date, and increased by the number of shares of Common Stock
that may again become available under this Plan pursuant to Section 1.5(b), whether such shares are
subject to awards granted before or after such date. Subject to adjustment as provided in Section
5.7, of the total number of shares of Common Stock available under this Plan, 10,000,000 shares of
Common Stock shall be available for awards of any type permitted by this Plan, 1,842,751 additional
shares of Common Stock shall be available for Stock Awards and Performance Share Awards and
1,794,550 additional shares of Common Stock shall be available for awards other than Stock Awards
and Performance Share Awards.



     (b) The Committee may adopt reasonable counting procedures to ensure appropriate counting,
avoid double counting (as, for example, in the case of tandem or substitute awards) and make
adjustments if the number of shares of Common Stock actually delivered differs from the number of
shares previously counted in connection with an award. To the extent that shares of Common Stock
subject to an outstanding award granted under this Plan are not issued or delivered to the holder
of the award or are returned to the Company by the holder of the award by reason of (i) the
expiration, termination, cancellation or forfeiture of such award, (ii) the settlement of such
award in cash, or (iii) the delivery or withholding of shares of Common Stock to pay all or a
portion of the exercise price of an award, if any, or to satisfy all or a portion of the tax
withholding obligations relating to an award, then such shares of Common Stock shall again be
available under this Plan. This Section 1.5(b) shall apply to the share limit imposed to conform
to the Treasury regulations governing Incentive Stock Options only to the extent consistent with
applicable regulations relating to Incentive Stock Options under the Code.



     (c) Shares of Common Stock shall be made available from authorized and unissued shares of
Common Stock, or authorized and issued shares of Common Stock reacquired and held as treasury
shares or otherwise or a combination thereof.



     (d) To the extent necessary for an award to be qualified performance-based compensation under
Section 162(m) of the Code and the regulations thereunder, (i) the maximum number of shares of
Common Stock with respect to which options or SARs or a combination thereof may be granted during
any calendar year to any person shall be 1,000,000, subject to adjustment as provided in Section
5.7, (ii) the maximum number of shares of Common Stock with respect to which Stock Awards subject
to Performance Measures may be granted during any calendar year to any person shall be 500,000,
subject to adjustment as provided in



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Section 5.7 and (iii) the maximum number of shares of Common Stock with respect to which
Performance Share Awards may be granted during any calendar year to any person shall be 500,000,
subject to adjustment as provided in Section 5.7.



II. STOCK OPTIONS AND STOCK APPRECIATION RIGHTS



2.1. Stock Options. The Committee may, in its discretion, grant options to purchase shares
of Common Stock to such eligible persons as may be selected by the Committee. Each option, or
portion thereof, that is not an Incentive Stock Option shall be a Non-Qualified Stock Option. An
Incentive Stock Option may not be granted to any person who is not an employee of the Company or
any parent or subsidiary (as defined in Section 424 of the Code). Each Incentive Stock Option
shall be granted within ten years of the date this Plan is adopted by the Board. To the extent
that the aggregate Fair Market Value (determined as of the date of grant) of shares of Common Stock
with respect to which options designated as Incentive Stock Options are exercisable for the first
time by a participant during any calendar year (under this Plan or any other plan of the Company,
or any parent or subsidiary as defined in Section 424 of the Code) exceeds the amount (currently
$100,000) established by the Code, such options shall constitute Non-Qualified Stock Options.




     Options shall be subject to the following terms and conditions and shall be subject to such
additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee
shall deem advisable:



     (a) Number of Shares and Purchase Price. The number of shares of Common Stock subject
to an option and the purchase price per share of Common Stock purchasable upon exercise of the
option shall be determined by the Committee; provided, however, that the purchase
price per share of Common Stock purchasable upon exercise of an option shall not be less than 100%
of the Fair Market Value of a share of Common Stock on the date of grant of such option;
provided further, that if an Incentive Stock Option shall be granted to any person
who, at the time such option is granted, owns capital stock possessing more than ten percent of the
total combined voting power of all classes of capital stock of the Company (or of any parent or
subsidiary as defined in Section 424 of the Code) (a “Ten Percent Holder”), the purchase
price per share of Common Stock shall not be less than the price (currently 110% of Fair Market
Value) required by the Code in order for the option to constitute an Incentive Stock Option.



     (b) Exercise Period and Exercisability. The period during which an option may be
exercised shall be determined by the Committee; provided, however, that no option
shall be exercised later than ten years after its date of grant; provided further,
that if an Incentive Stock Option shall be granted to a Ten Percent Holder, such option shall not
be exercised later than five years after its date of grant. The Committee may, in its discretion,
establish Performance Measures which shall be satisfied or met as a condition to the grant of an
option or to the exercisability of all or a portion of an option. The Committee shall determine
whether an option shall become exercisable in cumulative or non-cumulative installments and in part
or in full at any time. An exercisable option, or portion thereof, may be exercised only with
respect to whole shares of Common Stock.



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     (c) Method of Exercise. An option may be exercised (i) by giving written notice to
the Company specifying the number of whole shares of Common Stock to be purchased and by
accompanying such notice with payment therefor in full (or by arranging for such payment to the
Company’s satisfaction) either (A) in cash, (B) by delivery (either actual delivery or by
attestation procedures established by the Company) of Mature Shares having an aggregate Fair Market
Value, determined as of the date of exercise, equal to the aggregate purchase price payable by
reason of such exercise, (C) except as may be prohibited by applicable law, in cash by a
broker-dealer acceptable to the Company to whom the optionee has submitted an irrevocable notice of
exercise or (D) a combination of (A) and (B), in each case to the extent set forth in the Agreement
relating to the option, (ii) if applicable, by surrendering to the Company any Tandem SARs which
are canceled by reason of the exercise of the option and (iii) by executing such documents as the
Company may reasonably request. Any fraction of a share of Common Stock which would be required to
pay such purchase price shall be disregarded and the remaining amount due shall be paid in cash by
the optionee. No certificate representing Common Stock shall be delivered until the full purchase
price therefor and any withholding taxes thereon, as described in Section 5.5, have been paid (or
arrangement made for such payment to the Company’s satisfaction).


2.2. Stock Appreciation Rights. The Committee may, in its discretion, grant SARs to such
eligible persons as may be selected by the Committee. The Agreement relating to an SAR shall
specify whether the SAR is a Tandem SAR or a Free-Standing SAR. The Committee may require that an
outstanding option be exchanged for an SAR exercisable for shares having vesting, expiration and
other terms substantially the same as the option, so long as such exchange will not result in
additional accounting expense to the Company.




     SARs shall be subject to the following terms and conditions and shall be subject to such
additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee
shall deem advisable:



     (a) Number of SARs and Base Price. The number of SARs subject to an award shall be
determined by the Committee. Any Tandem SAR related to an Incentive Stock Option shall be granted
at the same time that such Incentive Stock Option is granted. The base price of a Tandem SAR shall
be the purchase price per share of Common Stock of the related option. The base price of a
Free-Standing SAR shall be determined by the Committee; provided, however, that
such base price shall not be less than 100% of the Fair Market Value of a share of Common Stock on
the date of grant of such SAR.



     (b) Exercise Period and Exercisability. The Agreement relating to an award of SARs
shall specify whether such award may be settled in shares of Common Stock (including shares of
Restricted Stock) or cash or a combination thereof. The period for the exercise of an SAR shall be
determined by the Committee; provided, however, that no SAR may be exercised more
than ten years after the date of grant; and provided further that no Tandem SAR
shall be exercised later than the expiration, cancellation, forfeiture or other termination of the
related option. The Committee may, in its discretion, establish Performance Measures which shall
be satisfied or met as a condition to the grant of an SAR or to the exercisability of all or a
portion of an SAR. The Committee shall determine whether an SAR may be exercised in cumulative or
non-cumulative installments and in part or in full at any time. An exercisable SAR, or portion
thereof, may be



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exercised, in the case of a Tandem SAR, only with respect to whole shares of Common Stock and,
in the case of a Free-Standing SAR, only with respect to a whole number of SARs. If an SAR is
exercised for shares of Restricted Stock, a certificate or certificates representing such
Restricted Stock shall be issued in accordance with Section 3.2(c) and the holder of such
Restricted Stock shall have such rights of a stockholder of the Company as determined pursuant to
Section 3.2(d). Prior to the exercise of an SAR for shares of Common Stock, including Restricted
Stock, the holder of such SAR shall have no rights as a stockholder of the Company with respect to
the shares of Common Stock subject to such SAR.



     (c) Method of Exercise. A Tandem SAR may be exercised (i) by giving written notice to
the Company specifying the number of whole SARs which are being exercised, (ii) by surrendering to
the Company any options which are canceled by reason of the exercise of the Tandem SAR and (iii) by
executing such documents as the Company may reasonably request. A Free-Standing SAR may be
exercised (i) by giving written notice to the Company specifying the whole number of SARs which are
being exercised and (ii) by executing such documents as the Company may reasonably request.


2.3. Termination of Employment or Service. Subject to the requirements of the Code, all
of the terms relating to the exercise, cancellation or other disposition of an option or SAR upon a
termination of employment or service with the Company of the holder of such option or SAR, as the
case may be, whether by reason of disability, retirement, death or any other reason, shall be
determined by the Committee.



2.4. No Repricing of Awards. Notwithstanding anything in this Plan to the contrary and
subject to Section 5.7, without the approval of stockholders, the Committee will not amend or
replace previously granted options or SARs in a transaction that constitutes a “repricing,” as such
term is used in Section 303A.08 of the Listed Company Manual of the New York Stock Exchange.




III. STOCK AWARDS



3.1. Stock Awards. The Committee may, in its discretion, grant Stock Awards to such
eligible persons as may be selected by the Committee. The Agreement relating to a Stock Award
shall specify whether the Stock Award is a Restricted Stock Award, an Unrestricted Stock Award or a
Restricted Stock Unit Award. The Committee may grant Stock Awards under this Plan independently,
in lieu of, or in conjunction with, any cash bonus award otherwise payable to an employee pursuant
to the Pulte Homes, Inc. Senior Management Annual Incentive Plan or any other bonus or incentive
plan maintained by the Company from time to time.



3.2. Terms of Stock Awards. Stock Awards shall be subject to the following terms and
conditions and shall be subject to such additional terms and conditions, not inconsistent with the
terms of this Plan, as the Committee shall deem advisable.




     (a) Number of Shares and Other Terms. The number of shares of Common Stock subject to
a Restricted Stock Award, an Unrestricted Stock Award or a Restricted Stock Unit Award, and the
Performance Measures (if any) and Restriction Period applicable to a Restricted Stock Award or a
Restricted Stock Unit Award shall be determined by the Committee, subject to



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the provisions of this Plan. Unrestricted Stock Awards shall not be subject to any
Performance Measures or Restriction Periods. The number of Unrestricted Stock Awards that may be
granted pursuant to this Plan on or after July 8, 2009 shall not exceed five percent (5%) of the
total number of shares of Common Stock available for awards under this Plan (not taking into
account any awards granted pursuant to this Plan prior to July 8, 2009) when combined with (i) the
Restricted Stock Awards and Restricted Stock Unit Awards granted on or after July 8, 2009 without
the minimum Restriction Period required pursuant to Section 3.2(b) or with respect to which the
minimum Restriction Period is waived on or after July 8, 2009 pursuant to Section 3.2(b), and (ii)
the Performance Share Awards granted on or after July 8, 2009 without the minimum Performance
Period required pursuant to Section 4.2(b) or with respect to which the minimum Performance Period
is waived on or after July 8, 2009 pursuant to Section 4.2(b).



     (b) Vesting and Forfeiture. The Agreement relating to a Restricted Stock Award or a
Restricted Stock Unit Award shall provide, in the manner determined by the Committee, in its
discretion, and subject to the provisions of this Plan, for the vesting of the shares of Common
Stock subject to such Restricted Stock Award or the vesting of such Restricted Stock Unit Award (i)
if specified Performance Measures are satisfied or met during the specified Restriction Period,
(ii) if the holder of such award remains continuously in the employment or service of the Company
during the specified Restriction Period or (iii) if both of the conditions described in clauses (i)
and (ii) are satisfied during the specified Restriction Period, and for the forfeiture of all or a
portion of the shares of Common Stock subject to such Restricted Stock Award or the forfeiture of
such Restricted Stock Unit Award (x) if specified Performance Measures are not satisfied or met
during the specified Restriction Period or (y) if the holder of such award does not remain
continuously in the employment or service of the Company during the specified Restriction Period.
Subject to Section 5.8, Restricted Stock Awards and Restricted Stock Unit Awards granted on or
after July 8, 2009 shall, in the case of Restricted Stock Awards and Restricted Stock Unit Awards
that are subject to the achievement of specified Performance Measures, be subject to a minimum
one-year Restriction Period and shall, in the case of Restricted Stock Awards and Restricted Stock
Unit Awards that are not subject to Performance Measures, be subject to a minimum three-year
Restriction Period which lapses on each of the first three anniversaries of the grant thereof with
respect to one-third of the total number of shares of Restricted Stock or the total number of
Restricted Stock Units, as the case may be, subject to such award, in each case as set forth in the
Agreement. The Committee shall not have the discretion to waive on or after July 8, 2009 any
Restriction Period applicable to a Restricted Stock Award or a Restricted Stock Unit Award, except
by reason of the death, disability or retirement of the holder of such award or upon a Change in
Control. Notwithstanding the foregoing, the restrictions contained in the two immediately
preceding sentences of this Section 3.2(b) shall not apply to Restricted Stock Awards or Restricted
Stock Unit Awards which, when combined with Unrestricted Stock Awards granted on or after July 8,
2009 and Performance Share Awards granted on or after July 8, 2009 without the minimum Performance
Period required pursuant to Section 4.2(b) or with respect to which the minimum Performance Period
is waived on or after July 8, 2009 pursuant to Section 4.2(b), do not exceed five percent (5%) of
the total number of shares of Common Stock available for awards under this Plan (not taking into
account any awards granted pursuant to this Plan prior to July 8, 2009).



     (c) Share Certificates. During the Restriction Period, a certificate or certificates
representing a Restricted Stock Award may be registered in the holder’s name or a nominee



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name at the discretion of the Company and may bear a legend, in addition to any legend which
may be required pursuant to Section 5.6, indicating that the ownership of the shares of Common
Stock represented by such certificate is subject to the restrictions, terms and conditions of this
Plan and the Agreement relating to the Restricted Stock Award. All certificates registered in the
holder’s name shall be deposited with the Company, together with stock powers or other instruments
of assignment (including a power of attorney), each endorsed in blank with a guarantee of signature
if deemed necessary or appropriate by the Company, which would permit transfer to the Company of
all or a portion of the shares of Common Stock subject to the Restricted Stock Award in the event
such award is forfeited in whole or in part. Alternatively, the shares of Common Stock subject to
a Restricted Stock Award may be held by the Company or a custodian in book entry form, with
restrictions on such shares duly noted, until the termination of any Restriction Period (and the
satisfaction or attainment of any Performance Measures) applicable to such Restricted Stock Award.
Upon termination of any Restriction Period (and the satisfaction or attainment of any Performance
Measures) applicable to a Restricted Stock Award or to a Restricted Stock Unit Award payable in
whole or in part in shares of Common Stock, or upon the grant of an Unrestricted Stock Award, in
each case subject to the Company’s right to require payment of any taxes in accordance with Section
5.5, a certificate or certificates evidencing ownership of the requisite number of shares of Common
Stock shall be delivered to the holder of such award.



     (d) Rights with Respect to Restricted Stock Awards. Unless otherwise set forth in the
Agreement relating to a Restricted Stock Award, and subject to the terms and conditions of a
Restricted Stock Award, the holder of such award shall have all rights as a stockholder of the
Company, including, but not limited to, voting rights, the right to receive dividends and the right
to participate in any capital adjustment applicable to all holders of Common Stock;
provided, however, that a distribution with respect to shares of Common Stock,
other than a regular cash dividend, shall be deposited with the Company and shall be subject to the
same restrictions as the shares of Common Stock with respect to which such distribution was made.



     (e) Settlement of Vested Restricted Stock Unit Awards. The Agreement relating to a
Restricted Stock Unit Award (i) shall specify whether such award may be settled in shares of Common
Stock or cash or a combination thereof and (ii) may specify whether the holder thereof shall be
entitled to receive, on a current or deferred basis, dividend equivalents, and, if determined by
the Committee, interest on, or the deemed reinvestment of, any deferred dividend equivalents, with
respect to the number of shares of Common Stock subject to such award. Prior to the settlement of
a Restricted Stock Unit Award in shares of Common Stock, the holder of such award shall have no
rights as a stockholder of the Company with respect to the shares of Common Stock subject to such
award and shall have rights as a stockholder of the Company in accordance with Section 5.11.


3.3. Termination of Employment or Service. All of the terms relating to the satisfaction
of Performance Measures and the termination of the Restriction Period relating to a Restricted
Stock Award or a Restricted Stock Unit Award, or any forfeiture and cancellation of such award upon
a termination of employment or service with the Company of the holder of such award, whether by
reason of disability, retirement, death or any other reason, shall be determined by the Committee,
subject to the provisions of this Plan.




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IV. PERFORMANCE SHARE AWARDS



4.1. Performance Share Awards. The Committee may, in its discretion, grant Performance
Share Awards to such eligible persons as may be selected by the Committee.



4.2. Terms of Performance Share Awards. Performance Share Awards shall be subject to the
following terms and conditions and shall be subject to such additional terms and conditions, not
inconsistent with the terms of this Plan, as the Committee shall deem advisable.




     (a) Number of Performance Shares and Performance Measures. The number of Performance
Shares subject to a Performance Share Award and the Performance Measures and Performance Period
applicable to such award shall be determined by the Committee.



     (b) Vesting and Forfeiture. The Agreement relating to a Performance Share Award shall
provide, in the manner determined by the Committee, in its discretion, and subject to the
provisions of this Plan, for the vesting of such award, if specified Performance Measures are
satisfied or met during the specified Performance Period, and for the forfeiture of all or a
portion of such award, if specified Performance Measures are not satisfied or met during the
specified Performance Period. Subject to Section 5.8, Performance Share Awards granted on or after
July 8, 2009 shall be subject to a minimum one-year Performance Period, as set forth in the
Agreement. The Committee shall not have the discretion to waive on or after July 8, 2009 any
Performance Period applicable to a Performance Share Award, except by reason of the death,
disability or retirement of the holder of such award or upon a Change in Control. Notwithstanding
the foregoing, the restrictions contained in the two immediately preceding sentences of this
Section 4.2(b) shall not apply to Performance Share Awards which, when combined with Unrestricted
Stock Awards granted on or after July 8, 2009 and Restricted Stock Awards and Restricted Stock Unit
Awards granted on or after July 8, 2009 without the minimum Restriction Period required pursuant to
Section 3.2(b) or with respect to which the Minimum Restriction Period is waived on or after July
8, 2009 pursuant to Section 3.2(b), do not exceed five percent (5%) of the total number of shares
of Common Stock available for awards under this Plan (not taking into account any awards granted
pursuant to this Plan prior to July 8, 2009).



     (c) Settlement of Vested Performance Share Awards. The Agreement relating to a
Performance Share Award (i) shall specify whether such award may be settled in shares of Common
Stock (including shares of Restricted Stock) or cash or a combination thereof and (ii) may specify
whether the holder thereof shall be entitled to receive, on a current or deferred basis, dividend
equivalents, and, if determined by the Committee, interest on or the deemed reinvestment of any
deferred dividend equivalents, with respect to the number of shares of Common Stock subject to such
award. If a Performance Share Award is settled in shares of Restricted Stock, a certificate or
certificates representing such Restricted Stock shall be issued in accordance with Section 3.2(c)
and the holder of such Restricted Stock shall have such rights of a stockholder of the Company as
determined pursuant to Section 3.2(d). Prior to the settlement of a Performance Share Award in
shares of Common Stock, including Restricted Stock, the holder of such award shall have no rights
as a stockholder of the Company with respect to the shares of Common Stock subject to such award.



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4.3 Termination of Employment or Service. All of the terms relating to the satisfaction of
Performance Measures and the termination of the Performance Period relating to a Performance Share
Award, or any forfeiture and cancellation of such award upon a termination of employment or service
with the Company of the holder of such award, whether by reason of disability, retirement, death or
any other reason, shall be determined by the Committee, subject to the provisions of this Plan.




V. GENERAL



5.1. Effective Date and Term of Plan. This Plan shall be submitted to the stockholders of
the Company for approval at the 2004 annual meeting of stockholders and, if approved by a majority
of the votes cast by the holders of shares of Common Stock entitled to vote, shall become effective
on the date of such approval. This Plan shall terminate ten years after its effective date, unless
terminated earlier by the Board. Termination of this Plan shall not affect the terms or conditions
of any award granted prior to termination. In the event that this Plan is not approved by the
stockholders of the Company, this Plan and any awards granted hereunder shall be null and void.



5.2. Amendments. The Board may amend this Plan as it shall deem advisable, subject to any
requirement of stockholder approval required by applicable law, rule or regulation, including
Section 162(m) and Section 422 of the Code and any rule of the New York Stock Exchange or, if the
Common Stock is not listed on the New York Stock Exchange, any rule of the principal national stock
exchange on which the Common Stock is then traded; provided, however, that no
amendment shall be made without stockholder approval if such amendment would (a) increase the
maximum number of shares of Common Stock available under this Plan (subject to Section 5.7), (b)
effect any change inconsistent with Section 422 of the Code or (c) extend the term of this Plan.
No amendment may impair the rights of a holder of an outstanding award without the consent of such
holder.



5.3. Agreement. Each award shall be evidenced by an Agreement executed by the Company and
the recipient of such award and, upon execution by each party and delivery of the executed
Agreement to the Company, such award shall be effective as of the effective date set forth in the
Agreement.



5.4. Non-Transferability of Awards. Unless otherwise specified in the Agreement relating
to an award, no award shall be transferable other than by will, the laws of descent and
distribution or pursuant to beneficiary designation procedures approved by the Company. Except to
the extent permitted by the foregoing sentence or the Agreement relating to an award, each award
may be exercised or settled during the holder’s lifetime only by the holder or the holder’s legal
representative or similar person. Except to the extent permitted by the second preceding sentence
or the Agreement relating to an award, no award may be sold, transferred, assigned, pledged,
hypothecated, encumbered or otherwise disposed of (whether by operation of law or otherwise) or be
subject to execution, attachment or similar process. Upon any attempt to so sell, transfer,
assign, pledge, hypothecate, encumber or otherwise dispose of any such award, such award and all
rights thereunder shall immediately become null and void.




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5.5. Tax Withholding. The Company shall have the right to require, prior to the issuance
or delivery of any shares of Common Stock or the payment of any cash pursuant to an award made
hereunder, payment by the holder of such award of any Federal, state, local or other taxes which
may be required to be withheld or paid in connection with such award. An Agreement may provide
that (i) the Company shall withhold whole shares of Common Stock which would otherwise be delivered
to a holder, having an aggregate Fair Market Value determined as of the date the obligation to
withhold or pay taxes arises in connection with an award (the “Tax Date”), or withhold an
amount of cash which would otherwise be payable to a holder, in the amount necessary to satisfy any
such obligation or (ii) the holder may satisfy any such obligation by any of the following means:
(A) a cash payment to the Company, (B) delivery (either actual delivery or by attestation
procedures established by the Company) to the Company of Mature Shares having an aggregate Fair
Market Value, determined as of the Tax Date, equal to the amount necessary to satisfy any such
obligation, (C) authorizing the Company to withhold whole shares of Common Stock which would
otherwise be delivered having an aggregate Fair Market Value, determined as of the Tax Date, or
withhold an amount of cash which would otherwise be payable to a holder, equal to the amount
necessary to satisfy any such obligation, (D) in the case of the exercise of an option, except as
may be prohibited by applicable law, a cash payment by a broker-dealer acceptable to the Company to
whom the optionee has submitted an irrevocable notice of exercise or (E) any combination of (A),
(B) and (C), in each case to the extent set forth in the Agreement relating to the award. Any
fraction of a share of Common Stock which would be required to satisfy such an obligation shall be
disregarded and the remaining amount due shall be paid in cash by the holder.



5.6. Restrictions on Shares. Each award made hereunder shall be subject to the requirement
that if at any time the Company determines that the listing, registration or qualification of the
shares of Common Stock subject to such award upon any securities exchange or under any law, or the
consent or approval of any governmental body, or the taking of any other action is necessary or
desirable as a condition of, or in connection with, the exercise or settlement of such award or the
delivery of shares thereunder, such award shall not be exercised or settled and such shares shall
not be delivered unless such listing, registration, qualification, consent, approval or other
action shall have been effected or obtained, free of any conditions not acceptable to the Company.
The Company may require that certificates evidencing shares of Common Stock delivered pursuant to
any award made hereunder bear a legend indicating that the sale, transfer or other disposition
thereof by the holder is prohibited except in compliance with the Securities Act of 1933, as
amended, and the rules and regulations thereunder.



5.7. Adjustment. In the event of any stock split, stock dividend, recapitalization,
reorganization, merger, consolidation, combination, exchange of shares, liquidation, spin-off or
other similar change in capitalization or event, or any distribution to holders of Common Stock
other than a regular cash dividend, the number and class of securities available under this Plan,
the maximum number of securities available for Stock Awards and Performance Share Awards, the
number and class of securities subject to each outstanding option and the purchase price per
security, the maximum number of securities with respect to which options or SARs or a combination
thereof, or Stock Awards or Performance Share Awards, may be granted during any calendar year to
any person, the terms of each outstanding SAR, the number and class of securities subject to each
outstanding Stock Award or Performance Share Award, and the terms of each outstanding Restricted
Stock Award, Restricted Stock Unit Award or Performance Share


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Award shall be appropriately adjusted by the Committee, such adjustments to be made in the case of
outstanding options and SARs without an increase in the aggregate purchase price or base price.
The decision of the Committee regarding any such adjustment shall be final, binding and conclusive.
If any such adjustment would result in a fractional security being (a) available under this Plan,
such fractional security shall be disregarded, or (b) subject to an award under this Plan, the
Company shall pay the holder of such award, in connection with the first vesting, exercise or
settlement of such award in whole or in part occurring after such adjustment, an amount in cash
determined by multiplying (i) the fraction of such security (rounded to the nearest hundredth) by
(ii) the excess, if any, of (A) the Fair Market Value on the vesting, exercise or settlement date
over (B) the exercise or base price, if any, of such award.




5.8. Change in Control.




     (a) (1) Notwithstanding any provision in this Plan, unless otherwise specified in the
Agreement relating to an award, in the event of a Change in Control pursuant to Section (b)(3) or
(4) below in connection with which the holders of Common Stock receive shares of common stock that
are registered under Section 12 of the Exchange Act, (i) all outstanding options and SARs shall
immediately become exercisable in full, (ii) the Restriction Period applicable to any outstanding
Restricted Stock Award or Restricted Stock Unit Award shall lapse, (iii) the Performance Period
applicable to any outstanding Performance Share shall lapse, (iv) the Performance Measures
applicable to any outstanding award shall be deemed to be satisfied at the greater of (A) the
projected level of performance for the Performance Period, based on the extent to which the
applicable Performance Measures have been satisfied as of the date of the Change in Control, and
(B) the target level of performance for the Performance Period, and (v) there shall be substituted
for each share of Common Stock available under this Plan, whether or not then subject to an
outstanding award, the number and class of shares into which each outstanding share of Common Stock
shall be converted pursuant to such Change in Control. In the event of any such substitution, the
purchase price per share in the case of an option and the base price in the case of an SAR shall be
appropriately adjusted by the Committee (whose determination shall be final, binding and
conclusive), such adjustments to be made in the case of outstanding options and SARs without an
increase in the aggregate purchase price or base price.



     (2) Notwithstanding any provision in this Plan, unless otherwise specified in the Agreement
relating to an award, in the event of a Change in Control pursuant to Section (b)(1) or (2) below,
or in the event of a Change in Control pursuant to Section (b)(3) or (4) below in connection with
which the holders of Common Stock receive consideration other than shares of common stock that are
registered under Section 12 of the Exchange Act, each outstanding award shall be surrendered to the
Company by the holder thereof, and each such award shall immediately be canceled by the Company,
and the holder shall receive, within ten days of the occurrence of a Change in Control, a cash
payment from the Company in an amount equal to (i) in the case of an option, the number of shares
of Common Stock then subject to such option, multiplied by the excess, if any, of the greater of
(A) the highest per share price offered to stockholders of the Company in any transaction whereby
the Change in Control takes place or (B) the Fair Market Value of a share of Common Stock on the
date of occurrence of the Change in Control, over the purchase price per share of Common Stock
subject to the option, (ii) in the case of a Free-Standing SAR, the number of shares of Common
Stock then subject to such SAR, multiplied by the excess, if any, of the greater of (A) the highest
per share price offered to



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stockholders of the Company in any transaction whereby the Change in Control takes place or
(B) the Fair Market Value of a share of Common Stock on the date of occurrence of the Change in
Control, over the base price of the SAR, (iii) in the case of a Restricted Stock Award, Restricted
Stock Unit Award or Performance Share Award, the number of shares of Common Stock, the number of
Restricted Stock Units or the number of Performance Shares, as the case may be, then subject to
such award, multiplied by the greater of (A) the highest per share price offered to stockholders of
the Company in any transaction whereby the Change in Control takes place or (B) the Fair Market
Value of a share of Common Stock on the date of occurrence of the Change in Control. In the event
of a Change in Control, each Tandem SAR shall be surrendered by the holder thereof and shall be
canceled simultaneously with the cancellation of the related option.



     (b) “Change in Control” shall mean:



     (1) the acquisition by any individual, entity or group (a “Person”), including any
“person” within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act, of beneficial
ownership within the meaning of Rule 13d-3 promulgated under the Exchange Act, of 40% or more of
either (i) the then outstanding shares of common stock of the Company (the “Outstanding Common
Stock”) or (ii) the combined voting power of the then outstanding securities of the Company
entitled to vote generally in the election of directors (the “Outstanding Voting
Securities”); excluding, however, the following: (A) any acquisition directly from the Company
(excluding any acquisition resulting from the exercise of an exercise, conversion or exchange
privilege unless the security being so exercised, converted or exchanged was acquired directly from
the Company), (B) any acquisition by the Company, (C) any acquisition by an employee benefit plan
(or related trust) sponsored or maintained by the Company or any corporation controlled by the
Company, (D) any acquisition by any corporation pursuant to a transaction which complies with
clauses (i), (ii) and (iii) of subsection (3) of this Section 5.8(b) or (E) any acquisition by any
one or more Exempt Persons; provided further, that for purposes of clause (B), if any Person (other
than the Company, any one or more Exempt Persons or any employee benefit plan (or related trust)
sponsored or maintained by the Company or any corporation controlled by the Company) shall become
the beneficial owner of 40% or more of the Outstanding Common Stock or 40% or more of the
Outstanding Voting Securities by reason of an acquisition by the Company, and such Person shall,
after such acquisition by the Company, become the beneficial owner of any additional shares of the
Outstanding Common Stock or any additional Outstanding Voting Securities and such beneficial
ownership is publicly announced, such additional beneficial ownership shall constitute a Change in
Control;



     (2) individuals who, as of the date hereof, constitute the Board (the “Incumbent
Board”) cease for any reason to constitute at least a majority of such Board; provided that any
individual who becomes a director of the Company subsequent to the date hereof whose election, or
nomination for election by the Company’s stockholders, was approved by the vote of at least a
majority of the directors then comprising the Incumbent Board shall be deemed a member of the
Incumbent Board; and provided further, that any individual who was initially elected as a director
of the Company as a result of an actual or threatened solicitation by a Person other than the Board
for the purpose of opposing a solicitation by any other Person with respect to the election or
removal of directors, or any other actual or threatened solicitation of proxies or



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consents by or on behalf of any Person other than the Board shall not be deemed a member of
the Incumbent Board;



     (3) the consummation of a reorganization, merger or consolidation or sale or other disposition
of all or substantially all of the assets of the Company (a “Corporate Transaction”);
excluding, however, a Corporate Transaction pursuant to which (i) all or substantially all of the
individuals or entities who are the beneficial owners, respectively, of the Outstanding Common
Stock and the Outstanding Voting Securities immediately prior to such Corporate Transaction will
beneficially own, directly or indirectly, more than 60% of, respectively, the outstanding shares of
common stock, and the combined voting power of the outstanding securities entitled to vote
generally in the election of directors, as the case may be, of the corporation resulting from such
Corporate Transaction (including, without limitation, a corporation which as a result of such
transaction owns the Company or all or substantially all of the Company’s assets either directly or
indirectly) in substantially the same proportions relative to each other as their ownership,
immediately prior to such Corporate Transaction, of the Outstanding Common Stock and the
Outstanding Voting Securities, as the case may be, (ii) no Person (other than: the Company; any
employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation
controlled by the Company; the corporation resulting from such Corporate Transaction; and any
Person which beneficially owned, immediately prior to such Corporate Transaction, directly or
indirectly, 40% or more of the Outstanding Common Stock or the Outstanding Voting Securities, as
the case may be) will beneficially own, directly or indirectly, 40% or more of, respectively, the
outstanding shares of common stock of the corporation resulting from such Corporate Transaction or
the combined voting power of the outstanding securities of such corporation entitled to vote
generally in the election of directors and (iii) individuals who were members of the Incumbent
Board will constitute at least a majority of the members of the board of directors of the
corporation resulting from such Corporate Transaction; or



     (4) the consummation of a plan of complete liquidation or dissolution of the Company.


5.9. Deferrals. The Committee may determine that the delivery of shares of Common Stock or
the payment of cash, or a combination thereof, upon the exercise or settlement of all or a portion
of any award made hereunder shall be deferred, or the Committee may, in its sole discretion,
approve deferral elections made by holders of awards. Deferrals shall be for such periods and upon
such terms as the Committee may determine in its sole discretion.



5.10. No Right of Participation, Employment or Service. No person shall have any right to
participate in this Plan. Neither this Plan nor any award made hereunder shall confer upon any
person any right to continued employment by or service with the Company, any Subsidiary or any
affiliate of the Company or affect in any manner the right of the Company, any Subsidiary or any
affiliate of the Company to terminate the employment or service of any person at any time without
liability hereunder.



5.11. Rights as Stockholder. No person shall have any right as a stockholder of the
Company with respect to any shares of Common Stock or other equity security of the Company which is


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subject to an award hereunder unless and until such person becomes a stockholder of record with
respect to such shares of Common Stock or equity security.



5.12. Designation of Beneficiary. If permitted by the Company, a holder of an award may
file with the Committee a written designation of one or more persons as such holder’s beneficiary
or beneficiaries (both primary and contingent) in the event of the holder’s death. To the extent
an outstanding option or SAR granted hereunder is exercisable, such beneficiary or beneficiaries
shall be entitled to exercise such option or SAR pursuant to procedures prescribed by the
Committee.




     Each beneficiary designation shall become effective only when filed in writing with the
Committee during the holder’s lifetime on a form prescribed by the Committee. The spouse of a
married holder domiciled in a community property jurisdiction shall join in any designation of a
beneficiary other than such spouse. The filing with the Committee of a new beneficiary designation
shall cancel all previously filed beneficiary designations.



     If a holder fails to designate a beneficiary, or if all designated beneficiaries of a holder
predecease the holder, then each outstanding option and SAR hereunder held by such holder, to the
extent exercisable, may be exercised by such holder’s executor, administrator, legal representative
or similar person.


5.13. Governing Law. This Plan, each award hereunder and the related Agreement, and all
determinations made and actions taken pursuant thereto, to the extent not otherwise governed by the
Code or the laws of the United States, shall be governed by the laws of the State of Michigan and
construed in accordance therewith without giving effect to principles of conflicts of laws.



5.14. Foreign Employees. Without amending this Plan, the Committee may grant awards to
eligible persons who are subject to the laws of foreign countries or jurisdictions on such terms
and conditions different from those specified in this Plan as may in the judgment of the Committee
be necessary or desirable to foster and promote achievement of the purposes of this Plan and, in
furtherance of such purposes the Committee may make such modifications, amendments, procedures,
subplans and the like as may be necessary or advisable to comply with provisions of laws of other
countries or jurisdictions in which the Company or its Subsidiaries operate or have employees.





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