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EXHIBIT 10.1




CENTEX CORPORATION




AMENDED AND RESTATED 1987 STOCK OPTION PLAN




(Last Amended on October 11, 2006)




1. Purpose




     The purpose of this Plan is to assist Centex Corporation, a Nevada corporation, in attracting
and retaining as officers and key employees of the Company and its Affiliates, and as non-employee
directors of the Company, individuals of training, experience and ability and to furnish additional
incentive to such individuals by encouraging them to become owners of Shares of the Company’s
capital stock, by granting to such individuals Incentive Options, Nonqualified Options, Restricted
Stock, or any combination of the foregoing.



2. Definitions




     Unless the context otherwise requires, the following words as used herein shall have the
following meanings:



     “Act” — The Securities Exchange Act of 1934, as amended.



     “Affiliates” — Any corporation or other entity which is a direct or indirect parent or
subsidiary (including, without limitation, partnerships and limited liability companies) of the
Company.



     “Agreement” — The written agreement between the Company and the Optionee evidencing the Option
granted by the Company and the understanding of the parties with respect thereto.



     “Board” — The Board of Directors of the Company as the same may be constituted from time to
time.



     “Code” — The Internal Revenue Code of 1986, as amended from time to time.



     “Committee” — The Committee provided for in Section 3 of this Plan, as such Committee may be
constituted from time to time.



     “Company” — Centex Corporation, a Nevada corporation.



     “Fair Market Value” — As of a particular date, (A) if Shares are listed on a national
securities exchange, the closing price per Share, as reported on the consolidated transaction
reporting system for the New York Stock Exchange or such other national securities exchange on
which Shares are listed that is at the applicable time the principal market for the Shares, or any
other source selected by the Committee, or, if there shall have been no such sales so reported on
that date, on the last preceding date on which such a sale was so reported, (B) if Shares are not
so listed, the mean between the closing bid and asked price of Shares on that date, or, if there
are no quotations available for such date, on the last preceding date on which such a quotation was
reported, as reported on a recognized quotation system selected by the Committee, or, if not so
reported, then as reported by The Pink Sheets LLC (or a similar organization or agency



 









 







succeeding to its functions of reporting prices), or (C) at the discretion of the Committee,
the value of Shares determined in good faith by the Committee. For purposes of valuing Shares to be
made subject to Incentive Options, the Fair Market Value of stock shall be determined without
regard to any restriction other than one which, by its terms, will never lapse.



     “Incentive Option” — Stock Options that are intended to satisfy the requirements of Section
422 of the Code and Section 16 of this Plan.



     “Non-employee Director” — An individual who satisfies the requirements of Rule 16b-3
promulgated under the Act.



     “Nonqualified Options” — Stock Options which do not satisfy the requirements of Section 422 of
the Code.



     “Option” — An option to purchase one or more Shares of the Company granted under and pursuant
to the Plan. Such Option may be either an Incentive Option or a Nonqualified Option.



     “Optionee” — An individual who has been granted an Option under this Plan and who has executed
a written option Agreement with the Company.



     “Plan” — This Centex Corporation 1987 Stock Option Plan.



     “Permitted Transferees” — (i) members of the Optionee’s immediate family, (ii) one or more
trusts for the benefit of such members of the Optionee’s immediate family, (iii) partnerships in
which such immediate family members are the only partners and (iv) limited liability companies in
which such immediate family members are the only members.



     “Restricted Stock” — Shares issued pursuant to Section 19 of the Plan.



     “Senior Management” — Members of the senior management group of the Company and its
Affiliates, such senior managers to be identified by the Chairman and Vice Chairman of the Board of
the Company.



     “Share” — A share of the Company’s present twenty-five cents ($0.25) par value common stock
and any share or shares of capital stock or other securities of the Company hereafter issued or
issuable upon, in respect of or in substitution or in exchange for each present share. Such Shares
may be unissued or reacquired Shares, as the Board, in its sole and absolute discretion, shall from
time to time determine.



3. Administration




     The Plan shall be administered by a committee (the “Committee”) comprised of two or more
Non-employee Directors appointed by the Board from time to time. The Committee shall (a) select
the eligible employees or directors who are to receive Options or awards of Restricted Stock under
the Plan, (b) determine the type, number, vesting requirements and other features and conditions of
Options or awards of Restricted Stock, (c) interpret the Plan, and (d) make all other
determinations necessary or advisable for the administration of the Plan. The Committee



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may adopt such rules or guidelines as it deems appropriate to implement the Plan. The
Committee’s determinations under the Plan shall be final and binding on all persons.



4. Shares Subject to Plan




     (a) A maximum of 7,065,139 Shares shall be subject to grants of Options and awards of
Restricted Stock under the Plan; provided that such maximum shall be increased or decreased as
provided below in Section 12.



     (b) At any time and from time to time after the Plan takes effect, the Committee, pursuant to
the provisions herein set forth, may grant Options and award Restricted Stock until the maximum
number of Shares shall be exhausted or the Plan shall be sooner terminated; provided, however, that
no Option shall be granted and no Restricted Stock shall be awarded after May 19, 2001.



     (c) Should any Option expire or be cancelled without being fully exercised, or should any
Restricted Stock previously awarded be reacquired by the Company, the number of Shares with respect
to which such Option shall not have been exercised prior to its expiration or cancellation and the
number of Shares of such Restricted Stock so reacquired may again be optioned or awarded pursuant
to the provisions hereof.



     (d) Any Shares withheld pursuant to subsection 18(c) shall not be available after such
withholding for being optioned or awarded pursuant to the provisions hereof.



5. Eligibility




     Eligibility for the receipt of the grant of Options under the Plan shall be confined to (a) a
limited number of persons who are employed by the Company, or one or more of its Affiliates and who
are officers of or who, in the opinion of the Committee, hold other key positions in or for the
Company or one or more of its Affiliates and (b) directors of the Company, including directors who
are not employees of the Company or its Affiliates; provided that only employees of the Company or
its Affiliates shall be eligible for the grant of Incentive Options. In addition, an individual who
becomes a director of the Company, but who is not at the time he becomes a director also an
employee of the Company, shall not be eligible for a grant of Options or an award of Restricted
Stock, and shall not be eligible for the grant of an option, stock allocation, or stock
appreciation right under any other plan of the Company or its affiliates (within the meaning of
Rule 12b-2 promulgated under the Act) until the Board expressly declares such person eligible by
resolution. In no event may an Option be granted to an individual who is not an employee of the
Company or an Affiliate or a director of the Company.



6. Granting of Options




     (a) From time to time while the Plan is in effect, the Committee may in its absolute
discretion, select from among the persons eligible to receive a grant of Options under the Plan
(including persons who have already received such grants of Options) such one or more of them as in
the opinion of the Committee should be granted Options. The Committee shall thereupon, likewise in
its absolute discretion, determine the number of Shares to be allotted for option to each person so
selected; provided, however, that the total number of Shares subject to Options



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granted to any one person, including directors of the Company, when aggregated with the number
of Shares of Restricted Stock awarded to such person, shall not exceed 706,513 Shares.



     (b) Each person so selected shall be offered an Option to purchase the number of Shares so
allotted to him, upon such terms and conditions, consistent with the provisions of the Plan, as the
Committee may specify. Each such person shall have a reasonable period of time, to be fixed by the
Committee, within which to accept or reject the proffered Option. Failure to accept within the
period so fixed may be treated as a rejection.



     (c) Each person who accepts an Option offered to him shall enter into an Agreement with the
Company, in such form as the Committee may prescribe, setting forth the terms and conditions of the
Option, whereupon such person shall become a participant in the Plan. In the event an individual
is granted both one or more Incentive Options and one or more Nonqualified Options, such grants
shall be evidenced by separate Agreements, one each for the Incentive Option grants and one each
for the Nonqualified Options grants. The date which the Committee specifies to be the grant date
of an Option to an individual shall constitute the date on which the Option covered by such
Agreement is granted. In no event, however, shall an Optionee gain any rights in addition to those
specified by the Committee in its grant, regardless of the time that may pass between the grant of
the Option and the actual signing of the Agreement by the Company and the Optionee.



7. Option Price




     The option price for each Share covered by each Incentive Option shall not be less than the
greater of (a) the par value of each such Share or (b) the Fair Market Value of the Share at the
time such Option is granted, except as provided hereinafter. The option price for each Share
covered by each Nonqualified Option shall not be less than the greater of (a) the par value of each
such Share or (b) 85% of the Fair Market Value of the Share at the time the Option is granted;
provided, however, that the number of Shares covered by Nonqualified Options granted under this
Plan that have an option price less than the Fair Market Value of a Share at the time the
respective Option is granted shall not exceed 10% of the total number of Shares authorized to be
issued under this Plan. If the Company or an Affiliate agrees to substitute a new Option under the
Plan for an old Option, or to assume an old Option, by reason of a corporate merger, consolidation,
acquisition of property or stock, separation, reorganization, or liquidation (any of such events
being referred to herein as a “Corporate Transaction”), the option price of the Shares covered by
each such new Option or assumed Option may be other than the Fair Market Value of the stock at the
time the Option is granted as determined by reference to a formula, established at the time of the
Corporate Transaction, which will give effect to such substitution or assumption; provided,
however, in no event shall —



     (a) the excess of the aggregate Fair Market Value of the Share subject to the Option
immediately after the substitution or assumption over the aggregate option price of such Shares be
more than the excess of the aggregate Fair Market Value of all Shares subject to the Option
immediately prior to the substitution or assumption over the aggregate option price of such Shares



     (b) in the case of an Incentive Option, the new Option or the assumption of the old Option
give the Optionee additional benefits which he would not have under the old Option; or



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     (c) the ratio of the option price to the Fair Market Value of the stock subject to the Option
immediately after the substitution or assumption be more favorable to the Optionee than the ratio
of the option price to the Fair Market Value of the stock subject to the old Option immediately
prior such substitution or assumption, on a Share by Share basis.



     Notwithstanding the above, the provisions of this Section 7 with respect to the Option price
in the event of a Corporate Transaction shall, in case of an Incentive Option, be subject to the
requirements of Section 424(a) of the Code and the Treasury regulations and revenue rulings
promulgated thereunder. In the case of an Incentive Option, in the event of a conflict between the
terms of this Section 7 and the above cited statute, regulations, and rulings, or in the event of
an omission in this Section 7 of a provision required by said laws, the latter shall control in all
respects and are hereby incorporated herein by reference as if set out at length.



8. Option Period




     (a) Each Option shall run for such period of time as the Committee may specify, but in no
event for longer than ten (10) years from the date when the Option is granted, including the period
of time provided in subsections (i) and (ii) of this subsection (a); and subject to such limits,
and the further condition that, unless designated otherwise by the Committee, no Incentive Option
shall become exercisable prior to one year from the date of its grant,




     (i) Except as provided below in this subsection (i) and in paragraph 8.(b) below, all
rights to exercise an Option shall terminate within three months after the date the Optionee
ceases to be an employee of at least one of the employers in the group of employers
consisting of the Company and its Affiliates, or after the date the Optionee ceases to be a
director of the Company, whichever may occur later, for any reason other than death, except
that, (x) in the case of a Nonqualified Option which is held by an Optionee who is, on the
date of cessation referred to in this clause, an officer or director of the Company (within
the meanings thereof under Section 16b) of the Act), all rights to exercise such Option
shall terminate within seven months after the date the Optionee ceases to be an employee of
at least one of the employers in the group of employers consisting of the Company and its
Affiliates, or, if later, after the date the Optionee ceases to be a director of the
Company, for any reason other than death; and, except that, (y) the Committee, in its
discretion, may provide in new Option grants or amend outstanding Options to provide an
extended period of time during which an Optionee can exercise a Nonqualified Option to the
maximum permissible period for which such Optionee’s Option would have been exercisable in
the absence of the Optionee’s ceasing to be an employee of the Company and its Affiliates or
ceasing to be a director of the Company; and, except that (z) in case the employment of the
Optionee is terminated for cause, the Option shall thereafter be null and void for all
purposes.




     (ii) If the Optionee ceases to be employed by at least one of the employers in the
group of employers consisting of the Company and its Affiliates, or ceases to be a director
of the Company, whichever may occur later, by reason of his death, all rights to exercise
such Option shall terminate fifteen (15) months thereafter.




     (iii) If an Option is granted with a term shorter than ten (10) years, the Committee
may extend the term of the Option, but for not more than ten (10) years from the date when
the Option was originally granted.



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     (b) Attached hereto are resolutions adopted by the Committee, relating to vesting and
exercise, which shall apply only to Options granted prior to April 1, 2006.



9. Options Not Transferable




     No Option or interest therein shall be transferable by the person to whom it is granted
otherwise than by will, the applicable laws of descent and distribution, or a domestic relations
order (except with respect to an Incentive Option). Notwithstanding the foregoing, the Committee
may, in its sole discretion, provide in the Agreement relating to the grant of an Option that the
Optionee may transfer such Option, without consideration, to members of the Optionee’s immediate
family or to one or more trusts for the benefit of such immediate family members or partnerships in
which such immediate family members are the only partners. For purposes of this Section 9,
“immediate family” shall mean the Optionee’s spouse, parents, children (including adopted children)
and grandchildren.



     Further, notwithstanding the foregoing, the Committee may, in its sole discretion, provide in
each of those Agreements relating to the grant of an Option whose term will expire in 2000, 2001,
2003, 2004, 2005, 2006 or 2007 that a Director or Senior Management Optionee may transfer such
Option to one or more Permitted Transferees with or without consideration to the Optionee provided
that the following conditions are satisfied with respect to such transfer: (i) such transfer is
made pursuant to the program that the Company has created to facilitate the reduction of its stock
option overhang and is accomplished on or before March 5, 2000; (ii) the Permitted Transferee
exercises the Option not more than 30 days following such transfer; (iii) all fees and expenses
charged by accounting firms, law firms and all other third party consultants in connection with
such transfer are paid by the Optionee, and such fees and expenses are not otherwise paid or
reimbursed by the Company or any of its Affiliates; (iv) the Permitted Transferee agrees to be
bound by all of the terms of the Agreement, except that once transferred by the Optionee to such
Permitted Transferee, the Option may not be subsequently transferred except back to the Optionee;
(v) if the consideration tendered by the Permitted Transferee for the Option is a term obligation,
the principal amount under such term obligation will be due in full no later than the fifth
anniversary of the Option’s expiration date; and (vi) the Permitted Transferee agrees to inform the
Company’s Stock Plan Administrator upon (a) the sale or other transfer of the shares underlying the
Option and (b) any other event or action taken by the Permitted Transferee with respect to the
Option, the shares underlying the Option or the consideration for the Option, where such event or
action will give rise to a recognizable event for the Company.



10. Exercise of Options




     (a) During the lifetime of an Optionee only he or his guardian or legal representative or
transferee may exercise an Option granted to him. In the event of his death, any then exercisable
portion of his Option may, within fifteen (15) months thereafter, or earlier date of termination of
the Option, be exercised in whole or in part by any person empowered to do so under the deceased
Optionee’s will or under the applicable laws of descent and distribution.



     (b) At any time, and from time to time, during the period when any Option, or a portion
thereof, is exercisable, such Option, or portion thereof, may be exercised in whole or in part;
provided, however, that the Committee may require any Option which is partially exercised to be so
exercised with respect to at least a stated minimum number of Shares.



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     (c) The option price of the Shares for which an Option is exercised must be paid prior to
issuance of the Shares. Such purchase price shall be payable (i) in cash, certified or cashiers’
check, or wire transfer; (ii) at the option of the holder of such Option, in Stock theretofore
owned by such holder by either actual delivery of shares or by attestation, or through the
withholding by the Company from the Shares otherwise issuable pursuant to the Option of an
appropriate number of Shares; (iii) by a combination of cash and such delivery of withholding of
Stock; or (iv) delivery of a properly executed exercise notice together with irrevocable
instructions to a broker satisfactory to the Company to promptly deliver to the Company the amount
of sale or loan proceeds required to pay the exercise price and applicable withholding taxes. For
purposes of determining the amount, if any, of the purchase price satisfied by payment in Stock,
such Stock shall be valued at its Fair Market Value on the date of exercise. Any Stock delivered
in satisfaction of all or a portion of the purchase price shall be appropriately endorsed for
transfer and assignment to the Company. No holder of an Option shall be, or have any of the rights
or privileges of, a shareholder of the Company in respect of any Shares unless and until
certificates representing such Shares shall have been delivered by the Company to such holder or
such holder’s interest in such Shares shall have been evidenced by an entry on the Company’s books
and records.



     (d) No Shares shall be issued until full payment therefor has been made, and an Optionee shall
have none of the rights of a stockholder until Shares are issued to him.



     (e) Nothing herein or in any Agreement executed or Option granted hereunder shall require the
Company to issue any Shares upon exercise of an Option if such issuance would, in the opinion of
counsel for the Company, constitute a violation of the Securities Act of 1933, as amended, or any
similar or superseding statute or statutes, or any other applicable statute or regulation, as then
in effect. Upon the exercise of an Option or portion or part thereof, the Optionee shall give to
the Company satisfactory evidence that he is acquiring such Shares for the purpose of investment
only and not with a view to their distribution; provided, however, if or to the extent that the
Shares subject to the Option shall be included in a registration statement filed by the Company, or
one of its Affiliates, such investment representation shall be abrogated.



11. Delivery of Stock Certificates




     As promptly as may be practicable after an Option, or a portion or part thereof, has been
exercised as hereinabove provided, the Company shall make delivery of one or more certificates for
the appropriate number of Shares. In the event that an Optionee exercises both an Incentive Option,
or a portion thereof, and a Nonqualified Option, or a portion thereof, separate stock certificates
shall be issued, one for the Shares subject to the Incentive Option and one for the Shares subject
to the Nonqualified Option.



12. Changes in Company’s Shares and Certain Corporate Transactions




     (a) In the event of any subdivision or consolidation of outstanding Shares of the Company,
declaration of a dividend payable in Shares of the Company or other stock split, then (i) the
maximum number of Shares then available for option or award as Restricted Stock under the Plan,
(ii) the number of Shares of the Company covered by outstanding Options and awards of Restricted
Stock, and (iii) the option price in respect of outstanding Options, and (iv) the total Options and
shares of Restricted Stock that may be awarded to any one person shall each be proportionately
adjusted to reflect such transaction. In the event of any other recapitalization or



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capital reorganization of the Corporation, any consolidation or merger of the Corporation with
another corporation or entity, the adoption by the Corporation of any plan of exchange affecting
Common Stock or any distribution to holders of Common Stock of securities or property (other than
normal cash dividends or dividends payable in Common Stock), the Board shall make appropriate
adjustments to (i) the maximum number of Shares then available for option or award as Restricted
Stock under the Plan, (ii) the number of Shares of the Company covered by outstanding Options and
awards of Restricted Stock, and (iii) the option price in respect of outstanding Options, and (iv)
the total Options and shares of Restricted Stock that may be awarded to any one person to reflect
such transaction; provided that such adjustments under (ii) and (iii) shall only be such as are
necessary to maintain the proportionate interest of the holders of the Options and awards of
Restricted Stock and preserve, without increasing, the value of such Options and awards of
Restricted Stock. In the event of a corporate merger, consolidation, acquisition of property or
stock, separation, reorganization or liquidation, the Board shall be authorized (x) to assume under
the Plan previously issued compensatory awards, or to substitute new Awards for previously issued
compensatory awards, including Awards, as part of such adjustment or (y) to cancel Awards that are
Options or SARs and give the Participants who are the holders of such Awards notice and opportunity
to exercise for 30 days prior to such cancellation. Section 7 of the Plan shall not apply to any
transaction covered in this Section 12 (a).



     Except as is otherwise expressly provided herein, the issue by the Company of shares of its
capital stock of any class, or securities convertible into shares of capital stock of any class,
either in connection with a direct sale or upon the exercise of rights or warrants to subscribe
therefor, or upon conversion of shares or obligations of the Company convertible into such shares
or other securities, shall not affect, and no adjustment by reason thereof shall be made with
respect to, the number of or option price of Shares then subject to outstanding Options granted
under the Plan. Furthermore, the presence of outstanding Options granted under the Plan shall not
affect in any manner the right or power of the Company to make, authorize or consummate (i) any or
all adjustments, recapitalizations, reorganizations or other changes in the Company’s capital
structure or its business; (ii) any merger or consolidation of the Company; (iii) any issue by the
Company of debt securities or preferred or preference stock which would rank above the Shares
subject to outstanding Options granted under the Plan; (iv) the dissolution or liquidation of the
Company; (v) any sale, transfer or assignment of all or any part of the assets or business of the
Company; or (vi) any other corporate act or proceeding, whether of a similar character or
otherwise.



     (b) Notwithstanding anything to the contrary above, a dissolution or liquidation of the
Company, a merger (other than a merger effecting a reincorporation of the Company in another state)
or consolidation in which the Company is not the surviving corporation (or survives only as a
subsidiary of another corporation in a transaction in which the stockholders of the parent of the
Company and their proportionate interests therein immediately after the transaction are not
substantially identical to the stockholders of the Company and their proportionate interests
therein immediately prior to the transaction), a transaction in which another corporation becomes
the owner of 50% or more of the total combined voting power of all classes of stock of the Company,
or a change in control (as specified below), shall cause every Option then outstanding to become
exercisable in full, subject to the limitation on the aggregate Fair Market Value of Shares that
may become first exercisable during any calendar year set forth in Section 16, immediately prior to
such dissolution, liquidation, merger, consolidation, transaction, or change



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in control, to the extent not theretofore exercised, without regard to the determination as to
the periods and installments of exercisability contained in the Agreements if (and only if) such
Options have not at that time expired or been terminated. For purposes of this paragraph, a change
in control shall be deemed to have taken place if: (i) a third person, including a “group” as
defined in Section 13(d)(3) of the Act, becomes the beneficial owner of Shares of the Company
having 50% or more of the total number of votes that may be cast for the election of directors of
the Company; or (ii) as a result of, or in connection with, a contested election for directors, the
persons who were directors of the Company immediately before such election shall cease to
constitute a majority of the Board. Notwithstanding the foregoing provisions of this paragraph, in
the event of any such dissolution, merger, consolidation, transaction, or change in control, the
Board may completely satisfy all obligations of the Company and its Affiliates with respect to any
Option outstanding on the date of such event by delivering to the Optionee cash in an amount equal
to the difference between the aggregate exercise price for Shares under the Option and the Fair
Market Value of such Shares on the date of such event, such payment to be made within a reasonable
time after such event.



13. Effective Date




     The Plan shall be effective on May 20, 1987, the date of its adoption by the Board, but shall
be submitted to the stockholders of the Company for ratification at the next regular or special
meeting thereof to be held within twelve (12) months after the Board shall have adopted the Plan.
If at such a meeting of the stockholders of the Company a quorum is present, the Plan shall be
presented for ratification, and unless at such a meeting the Plan is ratified by the affirmative
vote of a majority of the outstanding $0.25 par value common stock of the Company, then and in such
event, the Plan and all Options granted under the Plan and all awards of Restricted Stock under the
Plan shall become null and void and of no further force or effect.



14. Amendment, Suspension or Termination




     (a) Subject to the other terms and condition of this Plan and the limitations set forth in
subsection 14(b) below, the Board may at any time amend, suspend or terminate the Plan; provided,
however, that after the stockholders have ratified the Plan, the Board may not, without approval of
the stockholders of the Company, amend the Plan so as to:




     (i) Increase the maximum number of Shares subject thereto, as specified above in
Sections 4(a) and 12; or




     (ii) Increase the proportionate number of Shares which may be purchased pursuant to
Option by any one person or awarded as Restricted Stock to any one person, as specified
above in Section 6(a) or below in Section 19(a).



     (b) Neither the Board nor the Committee may amend the Plan or any Agreement to reduce the
option price of an outstanding Option or modify, impair or cancel any existing Option without the
consent of the holder thereof.



15. Requirements of Law




     Notwithstanding anything contained herein to the contrary, the Company shall not be required
to sell or issue Shares under any Option if the issuance thereof would constitute a



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violation by the Optionee or the Company of any provisions of any law or regulation of any
governmental authority or any national securities exchange; and as a condition of any sale or
issuance of Shares under Option the Company may require such agreements or undertakings, if any, as
the Company may deem necessary or advisable to assure compliance with any such law or regulation.



16. Incentive Stock Options




     The Committee, in its discretion, may designate any Option granted under the Plan as an
Incentive Option intended to qualify under Section 422 of the Code. Any provision of the Plan to
the contrary notwithstanding, (i) no Incentive Option shall be granted to any person who, at the
time such Incentive Option is granted, owns stock possessing more than 10 percent of the total
combined voting power of all classes of stock of the Company or any Affiliate unless the purchase
price under such Incentive Option is at least 110 percent of the Fair Market Value of the Shares
subject to an Incentive Option at the date of its grant and such Incentive Option is not
exercisable after the expiration of five years from the date of its grant, and (ii) the aggregate
Fair Market Value of the Shares subject to such Incentive Option and the aggregate Fair Market
Value of the shares of stock of any Affiliate (or a predecessor of the Company or an Affiliate)
subject to any other incentive stock option (within the meaning of Section 422 of the Code) of the
Company and its Affiliates (or a predecessor corporation of any such corporation), that may become
first exercisable in any calendar year, shall not (with respect to any Optionee) exceed $100,000,
determined as of the date the Incentive Option is granted. For purposes of this Section 16,
“predecessor corporation” means a corporation that was a party to a transaction described in
Section 424(a) of the Code (or which would be so described if a substitution or assumption under
such section had been effected) with the Company, or a corporation which, at the time the new
incentive stock option (within the meaning of Section 422 of the Code) is granted, is an Affiliate
of the Company or a predecessor corporation of any such corporations.



17. Modification of Options




     Subject to the terms and conditions of and within the limitations of the Plan, the Committee
may modify, extend or renew outstanding Options granted under the Plan, or accept the surrender of
Options outstanding hereunder (to the extent not theretofore exercised) and authorize the granting
of new Options hereunder in substitution therefor (to the extent not theretofore exercised).
Notwithstanding the foregoing provisions of this Section 17, no modification of an Option granted
hereunder shall, without the consent of the Optionee, alter or impair any rights or obligations
under any Option theretofore granted hereunder to such Optionee under the Plan, except as may be
necessary, with respect to Incentive Options, to satisfy the requirements of Section 422 of the
Code.



18. Agreement Provisions




     (a) Each Agreement shall contain such provisions (including, without limitation, restrictions
or the removal of restrictions upon the exercise of the Option and the transfer of shares thereby
acquired) as the Committee shall deem advisable. Each Agreement shall identify the Option
evidenced thereby as an Incentive Option or Nonqualified Option, as the case may be. Incentive
Options and Nonqualified Options may not both be covered by a single Agreement. Each such
Agreement relating to Incentive Options granted hereunder shall contain such limitations and
restrictions upon the exercise of the Incentive Option as shall be necessary for the
Incentive Option to which such Agreement related to constitute an incentive stock option, as
defined in Section 422 of the Code.



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     (b) The Plan shall be annexed to each Agreement and each Agreement shall recite that it is
subject to the Plan and that the Plan shall govern where there is any inconsistency between the
Plan and the Agreement.



     (c) Each Agreement shall contain an agreement and covenant by the Optionee, in such form as
the Committee may require in its discretion, that he consents to and will take whatever affirmative
actions are required, in the opinion of the Board or Committee, to enable the Company or
appropriate Affiliate to satisfy its Federal income tax and FICA withholding obligations. An
Agreement may contain such provisions as the Committee deems appropriate to enable the Company or
its Affiliates to satisfy such withholding obligations, including provisions permitting the
Company, on exercise of an Option, to withhold Shares otherwise issuable to the Optionee exercising
the Option to satisfy the applicable withholding obligations.



     (d) Each Agreement relating to an Incentive Option shall contain a covenant by the Optionee
immediately to notify the Company in writing of any disqualifying disposition (within the meaning
of section 421(b) of the Code) of an Incentive Option.



19. Restricted Stock




     (a) Shares of Restricted Stock may be awarded by the Committee to such individuals as are
eligible for grants of Options, as the Committee may determine at any time and from time to time
before the termination of the Plan. The total number of Shares of Restricted Stock awarded to any
one person, including directors of the Company, when aggregated with the number of Shares subject
to Options in favor of such person, shall not exceed shall not exceed 706,513 Shares.



     (b) A Share of Restricted Stock is a Share that does not irrevocably vest in the holder or
that may not be sold, exchanged, pledged, transferred, assigned or otherwise encumbered or disposed
of until the terms and conditions set by the Committee at the time of the award of the Restricted
Stock have been satisfied. A Share of Restricted Stock shall be subject to a minimum three-year
vesting period and shall contain such other restrictions, terms and conditions as the Committee may
establish, which may include, without limitation, the rendition of services to the Company or its
Affiliates for a specified time or the achievement of specific goals. The Committee may, when it
deems it appropriate, require the recipient of an award of Restricted Stock to enter into an
agreement with the Company evidencing the understanding of the parties with respect to such award.



     If an individual receives Shares of Restricted Stock, whether or not escrowed as provided
below, the individual shall be the record owner of such Shares and shall have all the rights of a
stockholder with respect to such Shares (unless the escrow agreement, if any, specifically provides
otherwise), including the right to vote and the right to receive dividends or other distributions
made or paid with respect to such Shares. Any certificate or certificates representing Shares of
Restricted Stock shall bear a legend similar to the following:




     The shares represented by this certificate have been issued pursuant to the
terms of the Centex Corporation 1987 Stock Option Plan and may not
be sold, pledged, transferred, assigned or otherwise encumbered in any manner
except as set forth in the terms of such award dated                     , 19.



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     In order to enforce the restrictions, terms and conditions that may be applicable to an
individual’s Shares of Restricted Stock, the Committee may require the individual, upon the receipt
of a certificate or certificates representing such Shares, or at any time thereafter, to deposit
such certificate or certificates, together with stock powers and other instruments of transfer,
appropriately endorsed in blank, with the Company or an escrow agent designated by the Company
under an escrow agreement in such form as shall be determined by the Committee.



     After the satisfaction of the terms and conditions set by the Committee at the time of an
award of Restricted Stock to an individual, which award is not subject to a non-lapse feature, a
new certificate, without the legend set forth above, for the number of Shares that are no longer
subject to such restrictions, terms and conditions shall be delivered to the individual.



     If an individual to whom Restricted Stock has been awarded dies after satisfaction of the
terms and conditions for the payment of all or a portion of the award but prior to the actual
payment of all or such portion thereof, such payment shall be made to the individual’s beneficiary
or beneficiaries at the time and in the same manner that such payment would have been made to the
individual.



     The Committee may cancel all or any portion of any outstanding restrictions prior to the
expiration of such restrictions with respect to any or all of the Shares of Restricted Stock
awarded to an individual hereunder only upon the individual’s death, disability or retirement on or
after the earlier of (i) age 65 or (ii) for Shares of Restricted Stock awarded prior to April 1,
2006, such time as the sum of the individual’s age and years of service equals 70, provided such
individual is at least 55. With respect to the occurrence of any event specified in the last
paragraph of Section 12, the restrictions, if any, applicable to any outstanding Shares awarded as
Restricted Stock shall lapse immediately prior to the occurrence of the event.



     (c) Subject to the provisions of subsection 19(b) above, if an individual to whom Restricted
Stock has been awarded ceases to be employed by at least one of the employers in the group of
employers consisting of the Company and its Affiliates, or ceases to be a director of the Company,
whichever may occur later, for any reason prior to the satisfaction of any terms and conditions of
an award, any Restricted Stock remaining subject to restrictions shall thereupon be forfeited by
the individual and transferred to, and reacquired by, the Company or an Affiliate at no cost to the
Company or the Affiliate. In such event, the individual, or in the event of his death, his personal
representative, shall forthwith deliver to the Secretary of the Company the certificates for the
Shares of Restricted Stock remaining subject to such restrictions, accompanied by such instruments
of transfer, if any, as may reasonably be required by the Secretary of the Company.



     (d) In case of any consolidation or merger of another corporation into the Company in which
the Company is the surviving corporation and in which there is a reclassification or change
(including a change to the right to receive cash or other property) of the Shares (other than a
change in par value, or from par value to no par value, or as a result of a subdivision or
combination, but including any change in such shares into two or more classes or series of shares),
the Committee may provide that payment of Restricted Stock shall take the form of the kind and
amount of shares of stock and other securities (including those of any new direct or



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indirect parent of the Company), property, cash or any combination thereof receivable upon
such reclassification, change, consolidation or merger.



20. General




     (a) The proceeds received by the Company from the sale of Shares pursuant to Options shall be
used for general corporate purposes.



     (b) Nothing contained in the Plan, or in any Agreement, shall confer upon any Optionee or
recipient of Restricted Stock the right to continue in the employ of the Company or any Affiliate,
or interfere in any way with the rights of the Company or any Affiliate to terminate his employment
at any time.



     (c) Neither the members of the Board nor any member of the Committee shall be liable for any
act, omission, or determination taken or made in good faith with respect to the Plan or any Option
or Restricted Stock granted under it; and the members of the Board and the Committee shall be
entitled to indemnification and reimbursement by the Company in respect of any claim, loss, damage
or expense (including counsel fees) arising therefrom to the full extent permitted by law and under
any directors and officers liability or similar insurance coverage that may be in effect from time
to time.



     (d) As partial consideration for the granting of each Option or award of Restricted Stock
hereunder, the Optionee or recipient shall agree with the Company that he will keep confidential
all information and knowledge which he has relating to the manner and amount of his participation
in the Plan; provided, however, that such information may be disclosed as required by law or given
in confidence to the individual’s spouse, tax or financial advisors, or to a financial institution
to the extent that such information is necessary to secure a loan. In the event any breach of this
promise comes to the attention of the Committee, it shall take into consideration such breach, in
determining whether to grant any future Option or award any future Restricted Stock to such
individual, as a factor militating against the advisability of granting any such future Option or
awarding any such future Restricted Stock to such individual.



     (e) Participation in the Plan shall not preclude an individual from eligibility in any other
stock option plan of the Company or any Affiliate or any old age benefit, insurance, pension,
profit sharing, retirement, bonus, or other extra compensation plans which the Company or any
Affiliate has adopted, or may, at any time, adopt for the benefit of its employees or directors.



     (f) Any payment of cash or any issuance or transfer of Shares to the Optionee, or to his legal
representative, heir, legatee, or distributee, in accordance with the provisions hereof, shall, to
the extent thereof, be in full satisfaction of all claims of such persons hereunder. The Board or
Committee may require any Optionee, legal representative, heir, legatee, or distributee, as a
condition precedent to such payment, to execute a release and receipt therefor in such form as it
shall determine.



     (g) Neither the Committee nor the Board nor the Company guarantees the Shares from loss or
depreciation.



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     (h) All expenses incident to the administration, termination, or protection of the Plan,
including, but not limited to, legal and accounting fees, shall be paid by the Company or its
Affiliates.



     (i) Records of the Company and its Affiliates regarding an individual’s period of employment,
termination of employment and the reason therefor, leaves of absence, re-employment, tenure as a
director and other matters shall be conclusive for all purposes hereunder, unless determined by the
Board or Committee to be incorrect.



     (j) The Company and its Affiliates shall, upon request or as may be specifically required
hereunder, furnish or cause to be furnished, all of the information or documentation which is
necessary or required by the Board or Committee to perform its duties and functions under the Plan.



     (k) The Company assumes no obligation or responsibility to an Optionee or recipient of
Restricted Stock or his personal representatives, heirs, legatees, or distributees for any act of,
or failure to act on the part of, the Board or Committee.



     (l) Any action required of the Company shall be by resolution of its Board or by a person
authorized to act by resolution of the Board. Any action required of the Committee shall be by
resolution of the Committee or by a person authorized to act by resolution of the Committee.



     (m) If any provision of this Plan or any Agreement is held to be illegal or invalid for any
reason, the illegality or invalidity shall not affect the remaining provisions of the Plan or the
Agreement, as the case may be, but such provision shall be fully severable and the Plan or the
Agreement, as the case may be, shall be construed and enforced as if the illegal or invalid
provision had never been included herein or therein.



     (n) Whenever any notice is required or permitted hereunder, such notice must be in writing and
personally delivered or sent by mail. Any notice required or permitted to be delivered hereunder
shall be deemed to be delivered on the date on which it is personally delivered, or, whether
actually received or not, on the third business day after it is deposited in the United States
mail, certified or registered, postage prepaid, addressed to the person who is to receive it at the
address which such person has theretofore specified by written notice delivered in accordance
herewith. The Company, an Optionee or a recipient of Restricted Stock may change, at any time and
from time to time, by written notice to the other, the address which it or he had theretofore
specified for receiving notices. Until changed in accordance herewith, the Company and each
Optionee and recipient of Restricted Stock shall specify as its and his address for receiving
notices the address set forth in the Agreement pertaining to the shares of Stock to which such
notice relates.



     (o) Any person entitled to notice hereunder may waive such notice.



     (p) The Plan shall be binding upon the Optionee or recipient of Restricted Stock, his heirs,
legatees, and legal representatives, upon the Company, its successors, and assigns, and upon the
Board and Committee, and their successors.



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     (q) The titles and headings of Sections and paragraphs are included for convenience of
reference only and are not to be considered in construction of the provisions hereof.



     (r) All questions arising with respect to the provisions of the Plan shall be determined by
application of the laws of the State of Nevada except to the extent Nevada law is preempted by
federal law. The obligation of the Company to sell and deliver Shares hereunder is subject to
applicable laws and to the approval of any governmental authority required in connection with the
authorization, issuance, sale, or delivery of such Shares.



     (s) Words used in the masculine shall apply to the feminine where applicable, and wherever the
context of this Plan dictates, the plural shall be read as the singular and the singular as the
plural.



21. Withholding Taxes




     Federal, state, or local law may require the withholding of taxes applicable to gains
resulting from the exercise of Nonqualified Options granted hereunder. Unless otherwise prohibited
by the Committee, each participant may satisfy any such withholding tax obligation by electing (i)
to tender a cash payment to the Company, (ii) to authorize the Company to withhold from the shares
of stock of the Company otherwise issuable to the participant as a result of the exercise of the
Nonqualified Option a number of shares having a fair market value, as of the date the withholding
tax obligation arises, equal to the withholding obligations, or, at the election of the
participant, up to the maximum of taxes due (the “Share Withholding Alternative”), (iii) to deliver
to the Company previously acquired shares of common stock of the Company having a fair market
value, as of the date the withholding tax obligation arises, equal to the amount to be withheld, or
at the election of the participant, up to the maximum of taxes due, or (iv) any combination of the
foregoing, provided the combination permits the payment of all withholding taxes attributable to
the exercise of the Nonqualified Option. A Participant’s election to pay the withholding tax
obligation must be made in writing delivered to the Company before the time of exercise, or
simultaneously with the exercise, of such Participant’s Nonqualified Option. A valid and binding
written election of the Share Withholding Alternative shall be irrevocable. A participant’s failure
to elect a withholding alternative prior to the time such election is required to be made shall be
deemed to be an election to pay the withholding tax by tendering a cash payment to the Company. For
purposes of this Section 21, the fair market value of the shares used to pay withholding taxes is
the mean between the highest and lowest price quoted on the New York Stock Exchange for one share
of common stock of the Company on the Tax Date. Also, as used in this Section 21, “Tax Date” shall
mean the date on which a withholding tax obligation arises in connection with an exercise of a
nonqualified stock option, which date shall be presumed to be the date of exercise, unless shares
subject to a substantial risk of forfeiture (as defined in section 83(c)(1) or (c)(3) of the Code)
are issuable on exercise of the option and the participant does not make a timely election under
section 83(b) of the Code with respect thereto, in which case the Tax Date for such shares is the
date on which the substantial risk of forfeiture lapses. Fractional shares remaining after payment
of the withholding taxes shall be paid to the participant in cash.



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Resolution related to stock options adopted by the Compensation and Management Development
Committee of the Board of Directors of Centex Corporation on May 13, 2004.




     RESOLVED, that all non-qualified options held by Full Time Employees to acquire common
stock of Centex Corporation awarded under any of the stock plans listed below, whether awarded
before or after May 13, 2004, shall be subject to the following from and after May 13, 2004:




	1.	 	If an optionee shall voluntarily terminate employment and at such time he or she is age 55 or
older, has at least 10 Years of Service and the sum of age and Years of Service equals at
least 70, then all non-qualified options held by him or her shall immediately vest upon the
termination of employment (“Vested Retirement”).






	2.	 	All rights to exercise such vested options will terminate 12 months following the date of
such Vested Retirement. However, to the extent that an option agreement provides a longer
time to exercise following voluntary termination of employment, then such agreement will
control.






	3.	 	As used herein: “Full Time Employee” means a person actively and regularly engaged in work at
least 40 hours a week; and “Years of Service” means an optionee’s years of employment with
Centex Corporation or any of its Affiliates. An optionee shall be credited with a Year of
Service on each anniversary of the date on which he or she was first employed by Centex
Corporation or its Affiliate, provided that the optionee continues to be employed by such
employer on such anniversary date.






	4.	 	The stock plans covered are:






	 	•	 	Centex Corporation Amended and Restated 1987 Stock Option Plan
	 
	 	•	 	Seventh Amended and Restated 1998 Centex Corporation Employee Non-Qualified Stock
Option Plan
	 
	 	•	 	Amended and Restated Centex Corporation 2001 Stock Plan
	 
	 	•	 	Amended and Restated Centex Corporation 2003 Equity Incentive Plan





     FURTHER RESOLVED, that the appropriate officers of the Corporation are hereby directed to take
all steps that they deem necessary or appropriate to communicate the substance of the foregoing
resolution to option holders who are affected and, where they deem necessary,
to document the substance of this resolution by way of amendments to the stock plans and to
existing option agreements.




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