Document:

exv10wxny

 

EXHIBIT
10(N)

GENERAL MOTORS 2002 LONG-TERM INCENTIVE PLAN

As Amended October 1, 2007

          1. The purpose of the General Motors 2002 Long-Term Incentive Plan (this “Plan”) is to provide
employees in positions of senior leadership with incentive compensation related to accomplishment
of key Corporate long-term strategic objectives which enhance stockholder value.

     2(a). The Executive Compensation Committee of the General Motors Board of Directors (the
“Committee”), as from time to time constituted pursuant to the by-laws of General Motors
Corporation (the “Corporation”), may prior to June 1, 2007, authorize the granting of target awards
to certain employees of the Corporation. The Committee, in its sole discretion, shall determine the
performance levels at which different percentages of such awards shall be earned, the collective
amount for all awards to be granted at any one time, and the individual amounts with respect to
employees who are officers of the Corporation. The Committee may delegate to the Chief Executive
Officer responsibility for determining, within the limits established by the Committee, individual
award grants for employees who are not executive officers of the Corporation. Further, the
Committee shall determine whether, to what extent, and under what circumstances payment with
respect to an Award shall be deferred by the Committee or at the election of an employee in a
manner consistent with the General Motors Deferred Compensation Plan for Executive Employees and
Section 409A of the Code.

          2(b). Prior to the grant of any target award, the Committee shall establish for each such
award (i) performance levels related to the enterprise (as defined below) at which 100% of the
award shall be earned and a range (which need not be the same for all awards) within which greater
and lesser percentages shall be earned and (ii) a performance period which shall be determined at
the time of grant. The term “enterprise” shall mean the Corporation and/or any unit or portion
thereof, and any entities in which the Corporation has, directly or indirectly, a substantial
ownership interest.

          2(c). With respect to the performance levels to be established pursuant to paragraph 2(b), the
specific measures for each grant shall be established by the Committee at the time of such grant.
In creating these measures, the Committee may establish the specific goals based upon or relating
to one or more of the following business criteria: asset turnover,
cash flow, contribution margin,
cost objectives, cost reduction, earnings per share, economic value added, increase in customer
base, inventory turnover, market price appreciation of the Corporation’s common stock, market
share, net income, net income margin, operating profit margin, pre-tax income, productivity, profit
margin, quality, return on assets, return on net assets, return on capital, return on equity,
revenue, revenue growth, and/or total shareholder return. The business criteria may be expressed in
absolute terms or relative to the performance of other companies or to an index.

          2(d). If any event occurs during a performance period that requires changes to preserve the
incentive features of this Plan, the Committee may make adjustments.

          2(e). Except as otherwise provided in paragraph 3, the percentage of each target award to be
distributed to an employee shall be determined by the Committee (i) on the basis of the performance
levels established for such award and the performance of the applicable enterprise during the
performance period and (ii) in the discretion of the Committee, on the basis of individual
performance during such period. Following determination of the final payout percentage, the
Committee may, upon the recommendation of the Chief Executive Officer, make adjustments to

1

 

awards for
officers of the Corporation to reflect individual performance during such period,
which for covered officers shall only involve negative discretion. A covered officer is any
individual whose compensation in the year of expected payment of an award, or in the year in which
the Corporation will claim a tax deduction in respect of such individual’s award thereunder, will
be subject to the provisions of Section 162(m) of the Internal Revenue Code of 1986, as amended
from time to time, as determined by the Committee. Adjustments to
awards to reflect individual
performance for employees who are not executive officers of the Corporation shall be made upon the
recommendation of the Chief Executive Officer. Following the performance period, each target award,
as determined and adjusted by the Committee pursuant to this paragraph and paragraph 3, shall be
referred to herein as a “final award” and, for covered officers, shall be certified by the
Committee prior to payment. The amount related to any final award for each performance period grant
paid to any employee shall not exceed $10 million. No distribution of any final award (or portion
thereof) shall be made if the minimum performance level applicable to the related target award is
not achieved during the applicable performance period, except as otherwise provided in paragraph
3(d), or, unless otherwise determined by the Committee, if the employment of the employee to whom
the related target award was granted shall terminate for any reason whatsoever (including death)
within 12 months after the date the target award was granted.

          2(f). All final awards which have vested in accordance with the provisions of paragraphs 3 and
4 shall be paid as promptly as practical, but not later than 90 days following the determination of
such final award and such vesting. Final awards shall be paid in cash, in General Motors stock, or
partly in cash and partly in General Motors stock, as the Committee shall determine. General Motors
stock (hereinafter referred to as “stock”) shall include all present and future classes of capital
stock of General Motors Corporation. Shares deliverable in payment of such final awards shall be
made available from shares reacquired by the Corporation, including shares purchased in the open
market. If shares are purchased in the open market for delivery in payment of such final awards,
they shall be held in a treasury account specifically for awards under this Plan. If the
Corporation shall have any unpaid claim against the employee arising out of or in connection with
such employee’s employment with the Corporation, such claim may be offset against awards under this
Plan. Such claim may include, but is not limited to, unpaid taxes or Corporate business credit card
charges, in an amount up to $5,000.,

          2(g). Subject to such additional limitations or restrictions as the Committee may impose, the
term “employees” shall mean persons who, at any time during the period to which an award relates,
(i) are employed by the Corporation or any subsidiary (as such term is defined below), including
employees who are also directors of the Corporation or any such subsidiary, or (ii) accept (or
previously have accepted) employment, at the request of the Corporation, with any entity not
described in (i) above but in which the Corporation has, directly or indirectly, a substantial
ownership interest. For purposes of this Plan, the term “subsidiary” means (A) a corporation of
which capital stock having ordinary voting power to elect a majority of the board of directors of
such corporation is owned, directly or indirectly, by the Corporation or (B) any unincorporated
entity in respect of which the Corporation can exercise, directly or indirectly, comparable
control. The Committee shall, among other things, determine when and to what extent individuals
otherwise eligible for consideration shall become or cease to be, as the case may be, employees for
purposes of this Plan and to determine when and under what circumstances any individual shall be
considered to have terminated employment for purposes of this Plan. To the extent determined by the
Committee, the term employees shall be deemed to include former employees and any beneficiaries
thereof. For purposes of this Plan, a “participant” shall mean an employee who receives an award
hereunder.

2

 

          3(a). Payment of any final award (or portion thereof) to an individual employee shall be
subject to the satisfaction of the following conditions precedent that such employee: (i) continue
to render services as an employee (unless this condition is waived by the Committee), (ii) refrain
from engaging in any activity which, in the opinion of the Committee, is competitive with any
activity of the Corporation or any subsidiary (except that employment at the request of the
Corporation with an entity in which the Corporation has, directly or indirectly, a substantial
ownership interest, or other employment specifically approved by the Committee, shall not be
considered to be an activity which is competitive with any activity of the Corporation or any
subsidiary) and from otherwise acting, either prior to or after termination of employment, in any
manner inimical or in any way contrary to the best interests of the Corporation, and (iii) furnish
to the Corporation such information with respect to the satisfaction of the foregoing conditions
precedent as the Committee shall reasonably request. If the Committee shall determine that such
employee has failed to satisfy any of the foregoing conditions precedent, all target awards granted
to such employee which have not become final awards, and all final awards which have not been paid
pursuant to paragraph 4(a) shall be immediately canceled. Upon termination of an employee’s
employment other than by death (whether such termination is before or after a target award shall
have become a final award), the Committee may, but shall not in any case be required to, waive the
condition precedent of continuing to render services but in the event of such waiver, the payment
of any target award which shall thereafter become a final award and payment of any final award
which shall remain unpaid shall nevertheless remain subject to the conditions precedent that (A)
the employee refrains from engaging in any activity which, in the opinion of the Committee, is
competitive with any activity of the Corporation or any subsidiary (except that employment at the
request of the Corporation with an entity in which the Corporation has, directly or indirectly, a
substantial ownership interest or other employment specifically approved by the Committee shall not
be considered to be an activity which is competitive with any activity of the Corporation or any
subsidiary) and from otherwise acting, either prior to or after termination of employment, in any
manner inimical or in any way contrary to the best interests of the Corporation and (B) the
employee furnish to the Corporation such information with respect to the satisfaction of the
foregoing condition precedent as the Committee shall reasonably request. As used in the immediately
preceding clause (B), the term employees shall include the beneficiary or beneficiaries designated
by such employee as provided in paragraph 6, or if no such designation of any beneficiary or
beneficiaries has been made, the employee’s legal representative or other persons entitled to any
payment or benefit with respect to the employee pursuant to this Plan. As a condition to the
vesting and payment of all or any portion of a final award, the Committee may, among other things,
require an employee to enter into such agreements as the Committee considers appropriate and in the
best interests of the Corporation.

          3(b). If, upon termination of an employee’s employment prior to the end of any performance
period for a reason other than death, the Committee shall determine to waive the condition
precedent of continuing to render services as provided in paragraph 3(a), the target award granted
to such employee with respect to such performance period shall be reduced pro rata based on the
number of months remaining in the performance period after the month of such termination and such
awards will be paid at the time they would have been paid absent an employment termination. The
final award for such employee shall be determined by the Committee (i) on the basis of the
performance levels established for such award (including the minimum performance level) and the
performance level achieved through the end of the performance period and (ii) in the discretion of
the Committee, on the basis of individual performance during the period prior to such termination.
A qualifying leave of absence, determined in accordance with procedures established by the
Committee, shall not be deemed to be a termination of employment but, except as otherwise
determined by the Committee, the employee’s target award will be reduced pro rata based on the
number of months during which such person was on such leave of absence during the performance

3

 

period. A target award shall not vest during a leave of absence granted an employee for local,
state, provincial, or federal government service.

          3(c). Upon termination of an employee’s employment by reason of death prior to the end of any
performance period, following completion of the performance period the target award granted to such
employee with respect to such period, except as otherwise provided in paragraph 2(e), shall be
reduced pro rata based on the number of months remaining in the performance period after the month
of such employee’s death. The percentage of the reduced target award to be vested and paid on
behalf of such employee shall be determined by the Committee (i) on the basis of the performance
levels established for such award (including the minimum performance level) and the performance
level achieved through the end of the fiscal year during which such employee died and (ii) in the
discretion of the Committee, on the basis of individual performance during the applicable period.
Such final awards as determined by the Committee under (i) and (ii) above will immediately vest and
be paid as promptly as practicable, but not later than 90 days following vesting.

          3(d). If the performance levels established for any target award are based on the performance
of a specified portion of the enterprise and that portion is sold or otherwise disposed of or
reorganized or the employee is transferred to another portion of the enterprise prior to the end of
the performance period, the target award granted to such employee with respect to such performance
period shall be reduced pro rata based on the number of months remaining in the performance period
after the month of such event. The final award for such employee shall be determined by the
Committee (i) on the basis of the performance levels established for such award (including the
minimum performance level) and the performance level achieved, in the case of a sale, disposition,
or reorganization of the applicable portion of the enterprise, through the end of the fiscal year
during which such event occurs and, in the case of a transfer of the employee, through the end of
the performance period and (ii) in the discretion of the Committee, on the basis of individual
performance during the applicable period. In addition, in any such case, the Committee may, in its
discretion, further adjust such award upward as it may deem appropriate and reasonable.

          3(e). If an employee is promoted during the performance period with respect to any target
award, such target award may, in the discretion of the Committee, be
increased to reflect such
employee’s new responsibilities.

          3(f). If the Corporation acquires an entity which has issued and outstanding long-term target
awards, the Corporation may substitute awards under this Plan in place of such awards, under such
provisions consistent with the terms of this Plan, as the Committee, in its sole discretion, may
determine.

          4(a). Target awards that have become final awards as determined by the Committee following the
conclusion of the performance period shall vest and be paid as promptly as possible, but not later
than 90 days following vesting, unless an alternative vesting schedule is established by the
Committee. Except as otherwise provided in this Plan, no final award (or portion thereof)
subject to a vesting schedule shall be paid prior to vesting and the unpaid portion of any final
award shall be subject to the provisions of paragraph 3(a). The Committee shall have the authority
to modify a vesting schedule as may be necessary or appropriate in order to implement the purposes
of this Plan. As a condition to the vesting of all or any portion of a final award, the Committee
may, among other things, require an employee to enter into such agreements as the Committee
considers appropriate and in the best interests of the Corporation, except for awards that vest
pursuant to paragraph 12 of this Plan.

4

 

          4(b). If the employment of an employee is terminated for any reason prior to the vesting of
any final award, the Committee may, but in any case shall not be required to, change the vesting
period with respect to such final awards to accelerate the vesting period related to all or any
portion of such final award. If the employment of an employee is terminated by death, all final
awards not currently vested shall immediately vest.

          4(c). No holder of a target award shall have any rights to dividends or interest (other than
as provided in paragraph 4(d) below) or other rights of a stockholder with respect to a target
award prior to such target award’s becoming a final award.

          4(d). With respect to target awards which have become final awards payable in cash pursuant to
paragraph 2(f) but which have not vested, the Committee may, in its discretion, pay to the
employees interest on all such unvested cash amounts. With respect to target awards which have
become final awards payable in stock pursuant to paragraph 2(f) but which have not vested, the
Committee may, in its discretion, pay to the employees an amount equal to the dividends which would
have been paid if such shares had been vested and registered in the employee’s name. Any interest
or dividend equivalents payable with respect to such final awards shall be paid at such times, in
such amounts, and in accordance with such procedures as the Committee shall determine.

          4(e). With respect to any dividend or other distribution on the Corporation’s common stock the
Committee shall make appropriate adjustments to outstanding target awards and unvested final awards
denominated in shares of stock to reflect such dividend or distribution in order to prevent
unintended enhancement or diminution of the benefit intended to be provided under this Plan.

          4(f). Specified Employees. Employees determined to be Specified Employees (as determined by
the Committee) shall not be entitled to be paid any portion of any final award payable on account
of a termination of employment until the expiration of six months from date of termination (or, if
earlier, death). The value of the award(s) (without interest) shall be payable on the first day of
the seventh full month following termination.

          5(a). An employee shall be eligible for consideration for a target award based on such
criteria as the Committee shall, from time to time, determine.

          5(b). No target award shall be granted to any director of the Corporation who is not an
employee at the date of grant nor to any member of the Executive Compensation Committee or the
Audit Committee.

          5(c). The Committee shall have discretion with respect to the determination of each target
award. Recommendations shall be made to the Committee by the Chief Executive Officer under such
procedures as may, from time to time, be approved by the Committee as to the employees to be
granted target awards, the amounts of such awards, the performance levels at which different
percentages of such awards would be earned and adjustments, if any, to such levels, the adjustments
to such awards on the basis of individual performance, and the amounts of final awards, except that
no such recommendations shall be made with respect to employees who are executive officers of the
Corporation or members of the Board of Directors, but such selections and determinations shall be
dealt with exclusively by the Committee under such procedures as it may determine.

          6. Except as otherwise determined by the Committee, with the exception of transfer by will or
the laws of descent and distribution, no target or final award shall be assignable or transferable
and, during the lifetime of the employee, any payment in respect of any final award shall be made

5

 

only to the employee. An employee shall designate a beneficiary or beneficiaries to receive
all or part of the amounts to be distributed to the employee under this Plan in case of death. A
designation of beneficiary or beneficiaries may be replaced by a new designation or may be revoked
by the employee at any time. A designation or revocation shall be on forms prescribed by and filed
with the Secretary of the Committee. In case of the employee’s death, the amounts distributable to
the employee under this Plan with respect to which a designation of beneficiary or beneficiaries
has been made (to the extent it is valid and enforceable under applicable law) shall be distributed
in accordance with this Plan to the designated beneficiary or beneficiaries. The amount
distributable to an employee upon death and not subject to such a designation shall be distributed
to the employee’s estate or legal representative. If there shall be any question as to the legal
right of any beneficiary to receive a distribution under this Plan, the amount in question may be
paid to the estate of the employee, in which event the Corporation shall have no further liability
to any party with respect to such amount.

          7. To the extent that any employee, former employee, or any other person acquires a right to
receive payments or distributions under this Plan, such right shall be no greater than the right of
a general unsecured creditor of the Corporation. All payments and distributions to be made
hereunder shall be paid from the general assets of the Corporation. Nothing contained in this Plan,
and no action taken pursuant to its provisions, shall create or be construed to create a trust of
any kind, or a fiduciary relationship between the Corporation and any employee, former employee, or
any other person.

          8. The expenses of administering this Plan shall be borne by the Corporation.

          9. Full power and authority to construe and interpret this Plan shall be vested in the
Committee. To the extent determined by the Committee, administration of this Plan, including, but
not limited to (a) the selection of employees for participation in this Plan, (b) the determination
of the number of installments, and (c) the determination of the vesting schedule for final awards,
may be delegated to the Chief Executive Officer provided, however, the Committee shall not delegate
to the Chief Executive Officer any powers, determinations, or responsibilities with respect to
executive officers of the Corporation. Any person who accepts any award hereunder agrees to accept
as final, conclusive, and binding all determinations of the Committee and the Chief Executive
Officer. The Committee shall have the right, in the case of participants not employed in the United
States, to vary from the provisions of this Plan in order to preserve the incentive features of
this Plan.

          10.(a) Upon the occurrence of a Change in Control of the Corporation as defined in this
paragraph all outstanding awards granted prior to January 1, 2007 shall (i) vest on the date of
such Change in Control and (ii) be paid (A) as determined by the Committee following the
performance period, but not later than 90 days following such determination, (B) reduced pro rata
based on the number of months remaining in the performance period after the month of such Change in
Control, and (C) based on the greater of target award level or actual performance

          10.(b) For awards granted after January 1, 2007, upon the occurrence of a Change in Control
and the termination of the employment of an employee within three years thereafter (i) by the
Corporation other than for gross negligence or deliberate misconduct which demonstrably harms the
Corporation or (ii) by the participant for Good Reason, all outstanding awards granted under this
Plan shall vest and be paid at the time they would have been paid absent a Change in Control and
the performance period shall terminate as of the date of Change in Control. Awards shall be paid
at the target award level, or, if greater, at the level resulting from the Corporation’s actual
performance. For purposes hereof, the Corporation’s actual performance shall be measured
immediately prior to the Change in Control or, if measurement of such performance at the time of

6

 

such termination of employment or at the end of the performance period is practicable, and if
such performance would result in a higher award hereunder, at the time of such termination of
employment or the end of the performance period, as applicable.

          10.(c) If a Change in Control shall occur during a performance period, an employee whose
employment terminates during such performance period prior to such Change in Control under
circumstances in which such employee’s award hereunder for such performance period was prorated and
to be paid at the conclusion of the performance period shall be entitled to receive payment of such
prorated award at such time at the target level or, if greater, at the level resulting from the
Corporation’s actual performance. For purposes hereof, the Corporation’s actual performance shall
be measured as set forth in Section 10(b). Any such award shall be prorated in the same manner as
in Paragraph 10(a).

          10.(d) The terms “Change in Control”, “Good Reason”, “Employer”, “Notice of Termination”,
“Person”, and “Subsidiary”, as used in this paragraph 10, shall have the same meanings as those
contained in Paragraphs 12.(a) through 12.(i), inclusive, of the General Motors 2002 Annual
Incentive Plan, as amended December 4, 2006.

          11. If the implementation of any of the foregoing provisions of this Plan would cause an
employee or participant to incur adverse tax consequences under Section 409A of the Internal
Revenue Code of 1986, as amended from time to time, the implementation of such provision shall be
delayed until, or otherwise modified to occur on, the first date on which such implementation would
not cause adverse tax consequences under Section 409A.

          12. Notwithstanding anything in this Plan to the contrary, any award of cash or stock made to
a participant under this plan on or after January 1, 2007 or any unvested award previously granted
is subject to being called for repayment to the Corporation in any situation where the Board of
Directors or a committee thereof determines that fraud, negligence, or intentional misconduct by
the participant was a significant contributing factor to the Corporation having to restate all or a
portion of its financial statement(s). The determination regarding employee conduct and repayment
under this provision shall be within the sole discretion of the Committee and shall be final and
binding on the participant and the Corporation.

          13. The Committee, in its sole discretion, may, at any time, amend, modify, or terminate this
Plan provided that no such action shall (a) adversely affect the rights of an employee with respect
to previous target awards or final awards under this Plan (except as otherwise permitted under
paragraphs 2(d) and 3), and this Plan, as constituted prior to such action, shall continue to apply
with respect to target awards previously granted and final awards which have not been paid, or (b)
without the approval of the stockholders, (i) increase the limit on the maximum amount of final
awards provided in paragraph 2(e), or (ii) render any director of the Corporation who is not an
employee at the date of grant or any member of the Executive Compensation Committee or the Audit
Committee, eligible to be granted a target award, or (iii) permit any target award to be granted
under this Plan after May 31, 2007. The Committee shall not terminate the Plan or final awards if
such termination would result in tax and penalties under Section 409A of the Code. Further, the
Corporation shall not be liable to Participants for an inadvertent violation of Section 409A of the
Code.

          14. Every right of action by, or on behalf of, the Corporation or by any stockholder against
any past, present, or future member of the Board of Directors, officer, or employee of the
Corporation or its subsidiaries arising out of or in connection with this Plan shall, irrespective
of the place where action may be brought and irrespective of the place of residence of any such
director,

7

 

officer, or employee, cease and be barred by the expiration of three years from the date of
the act or omission in respect of which such right of action arises. Any and all right of action by
any employee (past, present, or future) against the Corporation arising out of or in connection
with this Plan shall, irrespective of the place where an action may be brought, cease and be barred
by the expiration of three years from the date of the act or omission in respect of which such
right of action arises. This Plan and all determinations made and actions taken pursuant hereto
shall be governed by the laws of the State of Delaware and construed accordingly.

          15. This amended Plan shall be effective as of October 1, 2007

8exv10wxoy

 

EXHIBIT
10(o)

GENERAL MOTORS CORPORATION

2007 LONG-TERM INCENTIVE PLAN

As Amended October 1, 2007

SECTION 1. PURPOSE

The purpose of the General Motors Corporation 2007 Long-Term Incentive Plan (“the Plan”) is to
provide incentives to Employees for the creation of stockholder value through Awards of Options,
Restricted Stock Units, and Performance Awards. The Corporation believes that these incentives will
stimulate the efforts of Employees toward the long-term success of the Corporation and its
Subsidiaries, as well as assist in the recruitment of new Employees. Capitalized terms as used in
the Plan shall have the definitions as set forth in Section 15 of the Plan.

SECTION 2. ADMINISTRATION

     (a) The Plan shall be administered by the Committee. The Committee shall have full
discretionary power and authority, subject to such orders or resolutions not inconsistent with the
provisions of the Plan as may from time to time be adopted by the Board, to (i) select the
Employees of the Corporation and its Subsidiaries to whom Awards may from time to time be granted
hereunder; (ii) determine the type or types of Awards to be granted to each Participant hereunder;
(iii) determine the number of Shares to be covered by or relating to each Award granted hereunder;
(iv) determine the terms and conditions, not inconsistent with the provisions of the Plan, of any
Award granted hereunder; (v) determine whether, to what extent and under what circumstances Awards
may be settled in cash, Shares (excluding Performance Awards) or other property, or canceled; (vi)
determine whether, to what extent, and under what circumstances payment of cash, Shares, other
property and other amounts payable with respect to an Award made under the Plan shall be deferred
either by the Committee or at the election of the Participant in a manner consistent with the
General Motors Deferred Compensation Plan for Executive Employees and Section 409A of the Code;
(vii) interpret and administer the Plan and any instrument or agreement entered into under the
Plan; (viii) establish such rules and regulations and appoint such agents as it shall deem
appropriate for the proper administration of the Plan; and (ix) make any other determination and
take any other action that the Committee deems necessary or desirable for administration of the
Plan.

     (b) The Committee may, in its sole discretion, and subject to the provisions of the Plan and
applicable law, from time to time delegate any or all of its authority to administer the Plan to
the Corporation’s Chief Executive Officer, except that no such delegation shall be made in the case
of Awards to Employees who are executive officers of the Corporation. The Chief Executive Officer
may only grant Awards within the maximum number of Shares authorized for grant under the Plan and
in accordance with the terms established by the Committee.

     (c) The decisions of the Committee shall be final, conclusive and binding with respect to the
interpretation and administration of the Plan and any grant made under it. The Committee shall
make, in its sole discretion, all determinations arising in the administration, construction or
interpretation of the Plan and Awards under the Plan, including the right to construe disputed or
doubtful Plan or Award terms and provisions, and any such determination shall be conclusive and
binding on all Persons.

 

 

SECTION 3. SHARES SUBJECT TO THE PLAN

(a) Subject to the provisions of Section 3(c) below, the aggregate number of Shares with respect
to which Options or Restricted Stock Units may be granted under this Plan shall not exceed
16,000,000; provided, however, subject to the provisions of Section 3(c), the maximum number of
Shares which may be granted in the form of Restricted Stock Units under this Plan shall not exceed
1,500,000 shares of Common Stock. Subject to the provisions of Section 3(c), no individual may be
granted Options in any calendar year covering more than 1,000,000 shares and no individual may be
granted Restricted Stock Units in any calendar year covering more than 250,000 shares of Common
Stock. Performance Awards granted under the Plan that are by their terms to be settled in cash
will not count against the approved share reserve.

(b) Any Shares issued hereunder may consist, in whole or in part, of authorized and unissued
Shares, treasury Shares or Shares purchased in the open market or otherwise. If Shares are
purchased in the open market for delivery upon the exercise or settlement of an Award, they
shall be held in a treasury account specifically designated for such Awards.

(c) In the event of any merger, reorganization, consolidation, re-capitalization, stock dividend,
stock split, extraordinary cash dividend, or other change in corporate structure affecting the
Corporation’s Shares, the Committee shall make such adjustments in the aggregate number of Shares
which may be delivered under this Plan, the individual Award maximums, the number and Option price
of Shares subject to outstanding Options and the number of Shares subject to RSUs granted under
this Plan (provided the number of Shares subject to such awards shall always be a whole number),
as may be determined to be appropriate by the Committee in order to prevent unintended enhancement
or diminution of the benefits or potential benefits intended to be conferred on Participants
pursuant to applicable Awards granted hereunder.

(d) Shares underlying Substitute Awards shall not reduce the number of Shares available for
Options or RSUs hereunder.

(e) For avoidance of doubt, Shares which are tendered in an Option exercise to pay the exercise
price or tax obligation, or Shares withheld from an Option exercise to satisfy the exercise price
or tax obligation arising therefrom will not become available to grant under the terms of this
Plan. Shares previously granted under this Plan or the 2002 Stock Incentive Plan which are
forfeited following termination of employment shall again become available for grant under the
terms of this Plan.

SECTION 4. ELIGIBILITY

Any Employee shall be eligible to be selected as a Participant; provided, however, that Incentive
Stock Options shall only be awarded to Employees of the Corporation, or a parent or subsidiary,
within the meaning of Section 424 of the Code. Substitute Awards may be granted to any holder of an
Award granted by a company acquired by the Corporation or with which the Corporation combines.

SECTION 5. CONDITIONS PRECEDENT

(a) Except for Awards that vest pursuant to Section 9 of this Plan, settlement or exercise of any
Award (or portion thereof) to or by an individual Participant shall be subject to the satisfaction
of the following conditions precedent that such Participant: (i) continue to render services as an
Employee through the later of the first anniversary of the date of grant or the date specified upon

 

 

which vesting (in whole or in part) will occur (unless this condition is waived by the Committee
and Section 6(c)(iii)(B) shall constitute a partial such waiver), (ii) refrain from engaging in any
activity which, in the opinion of the Committee, is competitive with any activity of the
Corporation or any Subsidiary (except that employment at the request of the Corporation with an
entity in which the Corporation has, directly or indirectly, a substantial ownership interest, or
other employment specifically approved by the Committee, shall not be considered to be an activity
which is competitive with any activity of the Corporation or any Subsidiary) and from otherwise
acting, either prior to or after termination of employment with the Corporation or any Subsidiary,
in any manner the Committee finds to be inimical or in any way contrary to the best interests of
the Corporation, and (iii) furnish to the Corporation such information with respect to the
satisfaction of the foregoing conditions precedent as the Committee or Corporation shall request.
If the Committee shall determine that such Participant has failed to satisfy either of the
foregoing conditions (i) or (ii) precedent, all Awards granted to such Participant shall be
immediately canceled.

(b) As used in this Section 5, the term Participants shall include the beneficiary or
beneficiaries designated by such Participant as provided in Section 13(a) hereof, or if no such
designation of any beneficiary or beneficiaries has been made, the Participant’s legal
representative or other persons entitled to any payment or benefit with respect to the Participant
pursuant to this Plan. As a further condition precedent to the vesting and settlement or exercise
of all or any portion of an Award, the Committee may, among other things, require a Participant to
enter into such Participant agreements as the Committee considers appropriate and in the best
interests of the Corporation.

SECTION 6. STOCK OPTIONS

Options may be granted hereunder to any Employee, either alone or in addition to other Awards
granted under the Plan and shall be subject, in addition to the other terms and conditions of the
Plan, to the following terms and conditions:

(a) The Option price per Share shall not be less than the Fair Market Value (and in no event less
than the par value) of the Shares on the date the Option is granted, except in the case of
Substitute Awards.

(b) Determination as to whether the Options granted shall be “Incentive Stock Options” (“ISO’s”)
(within the meaning of Section 422 of the Code), or Nonqualified Stock Options, and as to any
restrictions which shall be placed on Options, shall be made by the Committee under such
procedures as it may, from time to time, determine and each Option granted hereunder shall be
identified as either an ISO or a Nonqualified Stock Option at the time of grant.

(c) Terms of Options. Options granted under this Plan shall be subject to the following
provisions, except as otherwise determined by the Committee:

(i) Vesting and Exercise. Except in the case of death or except as set forth in Section
6(c)(iii)(B) or as set forth in Section 9, no Option shall vest or become exercisable prior to
the first anniversary date of the date of the Option grant (or such other date as may be
established by the Committee or its delegate(s)); and after such date Options shall be
exercisable only in accordance with the terms and conditions established at the time of grant.
Unless otherwise specified at the date of grant, beginning on the first anniversary date of the
Option grant, stock Options will vest and become exercisable in one-third increments. Subject
to paragraph 6(c)(iii), the first increment will vest on or after the first anniversary date
and the second and third increments will vest on or after the second and third anniversaries of
the date of grant.

(ii) Term of the Option. The normal expiration date of the Option shall be determined at

 

 

the time of grant, provided that each such Option shall expire not more than ten years
after the date of grant.

(iii) Termination of Employment. Notwithstanding the following provisions, the Committee may
from time to time determine in its discretion that optionees retiring from the organization
during specified time periods under specified circumstances may vest and retain some portion
of those Options granted in the year the retirement occurs.

(A) If the Participant quits employment with the Corporation or is terminated by the
Corporation for inadequate job performance, or for willful misconduct harmful to the
Corporation, all unvested and vested Options shall be forfeited as of the date that
such grounds for termination first exist.

(B) If an Employee retires from the Corporation at age 55 or older with ten or more years
of credited service (or for a Participant who is a tax resident of a location outside the
United States at equivalent normal retirement age in such country), subject to the other
terms and conditions of the Plan, all Options will vest immediately, including Options
granted within the prior 12 months, provided that such Employee shall have remained
employed until December 31 of the year of grant, and will be exercisable until the
expiration date of such Option.

C) If employment is terminated by reason of death, all Options shall immediately
vest and remain exercisable until the third anniversary of the date of death or, if
earlier, the expiration date of such Option.

(D) If an employee becomes disabled, Options will continue to vest and become exercisable
in accordance with the original terms of the grant while the Employee remains on the
disability leave and, subject to the other terms and conditions of the Plan, vested Options
will remain exercisable for the full remaining term.

(E) If employment terminates for any reason other than as set forth above (including, for
the avoidance of doubt, retirement not meeting the conditions set forth in Section
6(c)(iii)(B) or other voluntary termination with the consent of the Corporation), subject
to the other terms and conditions of the Plan, all vested Options will remain exercisable
until the third anniversary of the date of termination of employment or, if earlier, the
expiration date of such Option.

(F) If employment terminates for any reason (other than death) prior to the first
anniversary of the date an Option is granted, except as provided in Section 6(c)(iii)(B)
the Option shall be forfeited and terminate on the date of termination of employment.

(iv) Forfeiture of Gains on Exercise. If the Employee terminates employment in breach of the
covenants and conditions precedent set forth in Section 5(a) and becomes employed by a
competitor of the Corporation within one year after the date of exercise of any Option, the
employee shall pay to the Corporation an amount equal to any gain from such exercise. The gain
will be determined by multiplying the difference between the mean of the highest and lowest
market price as reported in The Wall Street Journal (or, if such prices are not reported in The
Wall Street Journal, in another reliable, widely available source of such prices as designated
by the Committee) for the date of the Option exercise and the exercise price of the Option
(without regard to any subsequent market price decrease or increase) by the number of Option shares exercised. Any such Option gain realized by the Employee from exercising an Option shall
be paid by the Employee to the Corporation within thirty days of the employment termination
date or if later, the date in which employment with a competitor commences. By accepting an
Option grant under this Plan, the Employee consents, to the extent permitted by law, to a
deduction of an amount equal to such Option gain from any

 

 

amounts the Corporation owes the Employee, including, but not limited to, amounts owed as wages
or other compensation, fringe benefits, or vacation pay.

(v) Leave of Absence. For purposes of this Plan, a qualifying leave of absence shall not
constitute a termination of employment, except that an Option shall not be exercisable during a
leave of absence granted an Employee for civilian local, state, provincial, or federal
government service other than military service.

(vi) Payment of Exercise Price. All Shares purchased upon exercise of any Option shall be paid
for in full at the time of purchase or adequate provision for such payment shall be made. Such
payment shall be made (A) in cash, (B) through delivery or constructive delivery of Shares
(provided that the Shares, other than Shares purchased on the open market, must be held for at
least six months or to the extent required to obtain favorable accounting treatment), or (C) a
combination of cash and stock. Any Shares delivered as a result of an Option exercise shall be
valued at their Fair Market Value on the exercise date of the Option. To the extent authorized
by the Committee, any exercise of an Option granted under this Plan may be made in accordance
with any cashless exercise program approved by the Committee.

SECTION 7. RESTRICTED STOCK UNITS

(a) Restricted Stock Unit Awards may be granted hereunder to Participants either alone or in
addition to other Awards granted under the Plan. RSUs are valued by reference to a designated
number of Shares, with such restrictions as the Committee, in its sole discretion, may impose,
which restrictions may lapse separately or in combination at such time or times, in installments
or otherwise, as the Committee may deem appropriate. Any RSU Award shall be subject to the
following terms and conditions and to such other terms and conditions as the Committee shall deem
advisable or appropriate, consistent with the provisions of the Plan as herein set forth.

(b) Terms of Restricted Stock Units. RSUs granted under this Plan shall, in addition to
the other terms and conditions of the Plan, be subject to the following provisions,

(i) Vesting. Except for RSU Awards that vest pursuant to Section 9 of this Plan, or that vest
in the case of death, as set forth in Section 7(b)(ii)(B) below, and exceptions set forth in
7(b)(ii)(A), no RSU award shall vest prior to the third anniversary date of the Award date (or
such other date as may be established by the Committee or its delegate(s)); after such date,
RSU Awards shall vest and be paid only in accordance with the terms and conditions established
at the time of grant which may also include performance conditions.

(ii) Termination of Employment. If the Corporation or Participant terminates the
Participant’s employment before an RSU Award or any portion thereof vests, the unvested
portion of any RSU Award then held by such Participant will be forfeited, except as follows:

(A) If a Participant retires from the Corporation at age 55 or older with ten or more years
of credited service (or for a Participant who is a tax resident of a location outside the
United States at equivalent normal retirement age in such country), subject to the other
terms and conditions of the Plan, all restrictions on such Awards of RSUs will immediately
lapse, and stock will be delivered in payment of such RSUs in accordance with the original
payment schedule set forth in such Award. A retirement prior to age 55 or otherwise not
meeting the condition set forth above shall be treated as a voluntary resignation, governed
by the general rule set forth in Section 7(b)(ii) above, unless the Committee approves
another treatment of the Award in writing.

(B) If a Participant’s employment is terminated by reason of death, all RSU Awards

 

 

shall immediately vest and be paid. All restrictions on such Shares will lapse effective
as of the date of death, and stock will be delivered in payment of such RSUs as promptly
as is practicable, but not later the 90 days following death.

(C) If a Participant becomes disabled or is on any other type of leave of absence, unvested
RSU Awards will continue to vest and be settled in accordance with the original vesting and
payment schedule while the Employee remains on the disability or other type of leave.

Notwithstanding the foregoing provisions, the Committee may at any time determine that RSU
Awards shall vest or be forfeited on the date of Notice of Termination, or such later date,
as it may deem appropriate. In addition, the Committee may from time to time determine in its
discretion that Participants retiring from the Corporation during specified time periods
under specified circumstances may vest and retain some portion of those Awards granted in the
year the retirement occurs, settlement to occur in accordance with the original payment
schedule.

(c) The Committee may designate whether any RSU Award is intended to be a Qualified Performance
Award. Any such Qualified Performance Award shall comply with the provisions of Section 10 hereof.

SECTION 8. PERFORMANCE AWARDS

Performance Awards may be granted hereunder to any Participant, either alone or in addition to
other Awards granted under the Plan and shall, in addition to the other terms and conditions of
the Plan, be subject to the following terms and conditions, and such other terms and conditions
as the Committee shall deem advisable or appropriate, consistent with the provisions of the
Plan:

(a) Performance Awards will be denominated in units, each having a value equal to one Share, and
will be paid in cash. The performance levels to be achieved for each Performance Period, the
vesting of the Performance Award, and the amount of the Performance Award to be distributed shall
be conclusively determined by the Committee following the completion of each Performance Period.
Performance Awards may be paid in a lump sum or in installments following the close of the
Performance Period or, in accordance with procedures established by the Committee, on a deferred
basis. The Committee may designate whether any Performance Award, either alone or in addition to
other Performance Awards granted under the Plan is intended to be a Qualified Performance Award.
Any such Qualified Performance Award shall comply with the provisions of Section 10 hereof.
Performance Awards are subject to the Participant’s continued compliance with the conditions
precedent of Section 5 hereof, and any other conditions set forth by the Committee at any time.

(b) Prior to the grant of any Performance Award, the Committee shall establish for each such Award
(i) performance measures and levels related to the enterprise (as defined below) and/or individual
performance at which 100% of the Performance Award shall be earned and, if determined by the
Committee, a range (which need not be the same for all Performance Awards) within which greater or
lesser percentages shall be earned and (ii) a Performance Period. The term “enterprise”, for
purposes of this Section 8, shall mean the Corporation and/or any unit or portion thereof, and any
entities in which the Corporation has, directly or indirectly, a substantial ownership interest.

(c) If any event occurs during a Performance Period that requires changes to preserve the
incentive features of this Plan, the Committee may make such adjustments, except that the
Committee may not make any such adjustment to a Qualified Performance Award that is not

 

 

permitted under Section 10(d). Following determination of the percentage of the Award earned, the
Committee may, upon the recommendation of the Corporation’s Chief Executive Officer, make
adjustments to reflect individual performance during such period, except that any such adjustment
to a Qualified Performance Award shall comply with Section 10. No distribution with respect to any
Performance Award (or portion thereof) shall be made if the minimum performance level applicable
to the related target Performance Award is not achieved during the applicable Performance Period,
except as otherwise provided below or in Section 9.

(d) If, upon termination of a Participant’s employment prior to the end of any Performance Period
but after a minimum twelve months of participation in the performance period for a reason other
than death, the Committee may determine to waive any condition precedent of continuing to render
services as provided in Section 5, and the target Performance Award granted to such Participant
with respect to such Performance Period and, as applicable, any portion thereof, shall be reduced
pro rata based on the number of months remaining in the Performance Period after the month of such
termination and such Performance Award will be paid at the time it would have been paid absent the
termination of employment. The Performance Award for such Participant shall be determined by the
Committee (i) on the basis of the performance levels established for such Performance Award
(including the minimum performance level) and the performance level achieved through the end of the
Performance Period and (ii) at the discretion of the Committee, on the basis of individual
performance during the period prior to such termination. During a qualifying leave of absence, the
Participant’s target Performance Award will be reduced pro rata based on the number of months
during which such person was on such leave of absence during the Performance Period. A target
Performance Award shall not vest during a leave of absence granted a Participant for civilian
local, state, provincial, or federal government service other than military service.

(e) Upon termination of a Participant’s employment by reason of death prior to the end of any
Performance Period, but subject to a minimum of twelve months employment during such
Performance Period, the target Performance Award granted to such Participant with respect to
such Performance Period (modified pursuant to Section 8(c), if applicable) shall be reduced
pro rata based on the number of months remaining in the Performance Period after the month of
such Participant’s death. The percentage of the reduced target Performance Award to be paid in
respect of such Participant shall be determined by the Committee (i) on the basis of the
performance levels established for such Performance Award (including the minimum performance
level) and the performance level achieved through the end of the fiscal year during which such
Participant died and (ii) in the discretion of the Committee, on the basis of individual
performance during the applicable period. Such pro rata Performance Awards will be paid as
promptly as practicable, but not later than 90 days following the Committee’s determination of
the final award amount.

(f) If the performance levels established for any target Performance Award are based on the
performance of a specified portion of the enterprise and that portion is sold or otherwise disposed
of or reorganized or the Participant is transferred to another portion of the enterprise prior to
the end of the Performance Period, the target Performance Award granted to such Participant with
respect to such Performance Period shall be reduced pro rata based on the number of months
remaining in the Performance Period after the month of such event. The Performance Award for such
Participant shall be determined by the Committee (i) on the basis of the performance levels
established for such Performance Award (including the minimum performance level) and the
performance level achieved, in the case of a sale, disposition, or reorganization of the applicable
portion of the enterprise, through the end of the fiscal year during which such event occurs or, in
the case of a transfer of the Participant, through the end of the Performance Period and (ii) in
the discretion of the Committee, on the basis of individual performance during the applicable

 

 

Performance Period. In addition, in any such case, the Committee may, in its discretion, further
adjust such Performance Award upward or downward, as it may deem appropriate and reasonable. Awards
so determined will be paid at the time it would have been paid absent the sale, disposition or
transfer of employment.

(g) If a Participant is promoted during the Performance Period with respect to any target
Performance Award, such target Performance Award may, in the discretion of the Committee, be
increased to reflect such Participant’s new responsibilities.

SECTION 9. CHANGE IN CONTROL PROVISIONS

Upon the occurrence of a Change in Control (as defined in Section 15(c)):

(a) Outstanding Options shall be treated as described in subsection (b); outstanding Restricted
Stock Units shall be treated as described in subsection (c) and Performance Awards shall be
treated as described in subsection (d).

(b) (i) If in connection with the Change in Control, any outstanding Option is not continued in
effect or converted into an Option to purchase stock of the survivor or successor parent
corporation in a manner that complies with Sections 424 and 409A of the Internal Revenue Code,
such outstanding Option(s) shall vest and become fully exercisable.

     (ii) If outstanding Options are continued or converted as described in Section 9(b)(i), then
upon the occurrence of a Qualifying Termination of the holder thereof, such Options shall vest and
become fully exercisable.

(c) (i) If in connection with the Change in Control, any outstanding RSU is not continued in
effect or converted into a unit representing an interest in stock of the survivor or successor
parent corporation on a basis substantially equivalent to the consideration received by
stockholders of the Corporation in connection with the Change in Control, such outstanding RSU(s)
shall vest and be valued at the time of the Change in Control and shall be paid at the time it
would have been paid absent the Change in Control.

     (ii) If any outstanding RSU(s) is continued or not converted as described in Section 9(c)(i),
then upon occurrence of a Qualifying Termination of employment of the holder thereof, such RSU(s)
shall vest in full. Such RSU(s) shall be valued at the greater of the value at the time of
termination or payment date and will be paid at the time it would have been valued and paid absent
the Change in Control.

(d) (i) If in connection with the Change in Control, any outstanding Performance Award or Qualified
Performance Award is not continued in effect or converted into an Award relating to the stock of
the successor or survivor parent corporation on a substantially equivalent basis, taking into
account for this purpose the consideration, if any, received by stockholders of the Corporation and
the performance conditions applicable to the Awards immediately prior to the Change in Control,
then all such outstanding Performance Awards and Qualified Performance Awards, shall vest and be
valued at the time of the Change in Control at the threshold level, or, if greater, at the level
resulting from the Corporation’s actual performance, giving effect to the transaction constituting
the Change in Control. Any Awards for which payment is made shall be pro-rated based on the number
of days in the Performance Period occurring prior to the Change in Control and shall be paid at the
time they would have been paid absent the Change in Control.

     (ii) If any outstanding Performance Award or Qualified Performance Award is continued or
converted as described in Section 9(d)(i), then upon a Qualifying Termination of the holder
thereof, such Award shall vest in full and be paid at the time it would have been paid absent the
Change in Control at the greater of the value at the time of termination or the value

 

 

on the date of payment. Payment will be made at the threshold level, or, if greater, at the
level resulting from the Corporation’s actual performance. For purposes hereof, the
Corporation’s actual performance shall be measured at the time of the Change in Control, giving
effect to the transaction constituting the Change in Control or, if measurement of such
performance at the time of termination of employment is practicable, and if such measurement
would result in better Corporation performance, at the time of the Qualifying Termination . Any
Award for which payment is made as a final Award as determined by the Committee shall be
pro-rated based on the number of days in the Performance Period occurring prior to the Change in
Control.

(e) For purposes of this Section, a “Qualifying Termination” shall mean a termination of
employment within thirty six months following a Change in Control (i) by the Corporation other
than for gross negligence or deliberate misconduct which demonstrably harms the Corporation or
(ii) by the Participant for Good Reason.

(f) For purposes of Sections 9(b), (c) and (d) hereof, (i) no Option, RSU, Performance Award or
Qualified Performance Award shall be treated as “continued or converted” on a basis consistent with
the requirements of Sections 9(b)(i), (c)(i) or (d)(i), as applicable, unless the stock underlying
such Award after such continuation or conversion consists of securities of a class that is widely
held and publicly traded on a U.S. national securities exchange, and (ii) no Performance Award or
Qualified Performance Award will be treated as “continued or converted” on a basis consistent with
the requirements described in Section 9(d)(i) unless the performance conditions applicable to a
Participant’s earning of the Award are practicably susceptible of continuing measurement following
the Change in Control transaction and do not effectively increase the performance required to be
achieved in order for the Participant to earn any portion or level of Award.

(g) If the implementation of any of the foregoing provisions of this Section 9 would cause a
Participant to incur adverse tax consequences under Section 409A of the Code, the implementation
of such provision shall be delayed until the first date on which such implementation would not
cause any adverse tax consequences under Section 409A.

(h) The preceding subsections (a) through (f) of this Section 9 shall apply notwithstanding any
other provision of the Plan to the contrary, unless the Committee shall have expressly provided in
any applicable Award for different provisions to apply in the event of a Change in Control. For
the avoidance of doubt, any such different provisions may be more or less favorable to either of
the parties to the Award, but if the application of such different provisions is unclear,
uncertain or ambiguous, the provisions of this Section 9 shall govern.

SECTION 10. QUALIFIED PERFORMANCE AWARDS

(a) Notwithstanding any other provision of the Plan, if the Committee determines at the time an
Award is granted to a Participant who is then an executive officer of the Corporation that such
Participant is, or is likely to be a Covered Employee as of the end of the tax year in which the
Corporation would ordinarily claim a tax deduction in connection with such Award, then the
Committee may provide that this Section 10 is applicable to such Award.

(b) If an Award is subject to this Section10, then the lapsing of restrictions thereon and the
distribution of cash, Shares, or other property pursuant thereto, as applicable, shall be
subject to the achievement of one or more objective performance goals established by the
Committee, which shall be based on the attainment of specified levels of one or any combination
of Performance Criteria as described in Section 15(t). Such performance goals shall be set by
the Committee within the time period prescribed by, and shall otherwise comply with the

 

 

requirements of, Section 162(m) of the Code, and the regulations hereunder.

(c) When establishing performance goals for a Performance Period, the Committee may exclude any
or all “extraordinary items” as determined under U.S. generally accepted accounting principles
plus, without limitation, the charges or costs associated with restructurings of the Corporation,
discontinued operations, other unusual or non-recurring items, and the cumulative effects of
accounting changes. The Committee may also adjust the performance goals for any Performance
Period as it deems equitable in recognition of unusual or non-recurring events affecting the
Corporation, changes in applicable tax laws or accounting principles, or such other factors as
the Committee may determine.

(d) Following determination of the final payout percentage, the Committee may make negative
adjustments to Qualified Performance Awards to reflect individual performance or such other facts
and circumstances as the Committee deems appropriate during such period. Prior to payment, the
Committee shall certify in writing that the applicable performance goal, and other conditions
relating to said Award under this Section 10, have been satisfied. The amount related to any Award
under this section paid to any Participant with respect to the Performance Period shall not exceed
$10 million if the Award is denominated in cash, or 250,000 Shares if denominated in stock.

SECTION 11. AMENDMENTS AND TERMINATION

(a) The Board may amend, alter, discontinue or terminate the Plan or any portion thereof at any
time; provided, however; that no such amendment, alteration, discontinuation or termination shall
be made without (i) stockholder approval if such approval is necessary to comply with the rules of
the New York Stock Exchange, or (ii) following a Change in Control, the consent of the affected
Participant, if such action would materially impair the rights of such Participant under any
outstanding Award. For the avoidance of doubt, the provisions of Section 15(c) may be amended by
the Board if necessary or desirable to be compliant or consistent with, or to avoid adverse
consequences to Participants under Section 409A of the Code. Further, the Committee shall not
terminate the Plan if such termination would result in tax and penalties under Section 409A of the
Code, and the Corporation shall not be liable to Participants for an inadvertent violation of
Section 409A of the Code.

(b) The Committee may delegate to another committee, as it may appoint, the authority to take any
action consistent with the terms of the Plan, either before or after an Award has been granted,
which such other committee deems necessary or advisable to comply with any governmental laws or
regulatory requirements of a foreign country, including, but not limited to, modifying or amending
the terms and conditions governing any Awards, or establishing any local country plans as sub-plans
to this Plan. In addition, under all circumstances, the Committee may make non-substantive
administrative changes to the Plan so as to conform with or take advantage of governmental
requirements, statutes or regulations.

(c) The Committee may amend the terms of any Award theretofore granted, prospectively or
retroactively, but no such amendment shall (i) following a Change in Control, materially impair the
rights of any Participant without his or her consent or (ii) except for adjustments made pursuant
to Section 3(c) or in connection with Substitute Awards, reduce the exercise price of an
outstanding Option or cancel or amend an outstanding Option for the purpose of re-pricing,
replacing or re-granting such Option with an exercise price that is less than the exercise price of
the original Option without stockholder approval. Any change or adjustment to an outstanding
Incentive Stock Option shall not, without the consent of the Participant, be made in a manner so as
to constitute a “modification” that would cause such Incentive Stock Option to fail to continue

 

 

to qualify as an Incentive Stock Option.

(d) Notwithstanding anything in this Plan to the contrary, any award of cash, stock, Options (or
otherwise) made to a Participant under this Plan is subject to being called for repayment to the
Corporation in any situation where the Board of Directors or a committee thereof determines that
fraud, negligence, or intentional misconduct by the Participant was a significant contributing
factor to the Corporation having to restate all or a portion of its financial statement(s). The
determination regarding Employee conduct and repayment under this provision shall be within the
sole discretion of the Committee and shall be final and binding on the Participant and the
Corporation.

SECTION 12. DIVIDENDS

(a) Subject to the provisions of the Plan, the recipient of an Award (including, without
limitation, any deferred Award) may, if so determined by the Committee, be entitled to receive,
currently or on a deferred basis, cash or stock dividends, or cash payments in amounts equivalent
to cash or stock dividends on Shares with respect to the number of Shares covered by the Award, as
determined by the Committee, in its sole discretion, and the Committee may provide that such
amounts (if any) shall be deemed to have been reinvested in additional Shares or otherwise
reinvested. With respect to any dividend or other distribution on any Shares, the Committee may, in
its discretion, authorize current or deferred payments (payable in cash or stock or a combination
thereof, as determined by the Committee) or appropriate adjustments to an outstanding Award to
reflect such dividend or distribution.

(b) Except as specifically provided at the time of the Award grant, no holder of any Award shall
have any rights to dividends or other rights of a stockholder with respect to Shares subject to the
Award prior to becoming the record owner of such Shares.

SECTION 13. GENERAL PROVISIONS

(a) (i) An Award may not be sold, exercised, pledged, assigned, hypothecated, transferred, or
disposed of in any manner other than by will or by the laws of descent or distribution and may be
exercised, during the lifetime of the Participant, only by the Participant. (ii) A Participant
holding an Award under this Plan may make a written designation of beneficiary or beneficiaries
on a form prescribed by and filed with the Secretary of the Committee. In the event of the death
or legal incapacity of the Participant, such beneficiary or beneficiaries or, if no such
designation of any beneficiary or beneficiaries has been made, the Participant’s legal
representative(s) or such other person(s) entitled thereto as determined by a court of competent
jurisdiction, (A) may exercise, in accordance with and subject to the provisions of Section 6 any
unterminated and unexpired Option granted to such Participant and (B) receive payment, in
accordance with and subject to the provisions of Sections 7 or 8, respectively, pursuant to the
vesting of all or any portion of an RSU award, or Performance Award. A designation of beneficiary
may be replaced by a new designation or may be revoked by the Participant at any time.

(b) No Employee shall have the right to be selected to receive an Award under this Plan or, having
been so selected, to be selected to receive a future Award. Neither the Award nor any benefits
arising out of this Plan shall constitute part of a Participant’s employment or service contract
with the Corporation or any Subsidiary and, accordingly, this Plan and the benefits hereunder may
be terminated at any time in the sole discretion of the Corporation in accordance with Section
11(a) without giving rise to liability on the part of the Corporation or any Subsidiary for
severance payments. The Awards under this Plan are not intended to be treated as

 

 

compensation for any purpose under any other Corporation plan.

(c) No Employee shall have any claim to be granted any Award under the Plan, and there is no
obligation for uniformity of treatment of Participants under the Plan.

(d) Nothing in the Plan or any Award granted under the Plan shall be deemed to constitute an
employment or service contract or confer or be deemed to confer on any Employee or Participant
any right to continue in the employ or service of, or to continue any other relationship with,
the Corporation or any Subsidiary or limit in any way the right of the Corporation or any
Subsidiary to terminate an Employee’s employment or a Participant’s service at any time, with or
without cause.

(e) All certificates for Shares delivered under the Plan pursuant to any Award shall be subject to
such stock transfer orders and other restrictions as the Committee may deem advisable under the
rules, regulations and other requirements of the Securities and Exchange Commission, any stock
exchange upon which the Shares are then listed, and any applicable federal or state securities law,
and the Committee may cause a legend or legends to be put on any such certificates to make
appropriate reference to such restrictions.

(f) No Award granted hereunder shall be construed as an offer to sell securities of the
Corporation, and no such offer shall be outstanding, unless and until the Committee in its sole
discretion has determined that any such offer, if made, would comply with all applicable
requirements of the U.S. federal securities laws and any other laws to which such offer, if made,
would be subject.

(g) The Corporation and its Subsidiaries shall be authorized to withhold from any Award granted or
payment due under the Plan the amount of withholding taxes due in respect of an Award or payment
hereunder and to take such other action as may be necessary in the opinion of the Corporation or
its Subsidiaries to satisfy all obligations for the payment of such taxes. The Committee shall be
authorized to establish procedures for election by Participants to satisfy such obligation for the
payment of such taxes by delivery of or transfer of Shares to the Corporation (to the extent the
Participant has owned the surrendered Shares for less than six months, then only up to the
Participant’s statutory minimum required tax withholding rate), or by directing the Corporation to
retain Shares (up to the Participant’s statutory minimum required tax withholding rate) otherwise
deliverable in connection with the Award.

(h) Nothing contained in the Plan shall prevent the Board from adopting other or additional
compensation arrangements, subject to stockholder approval if such approval is required; and such
arrangements may be either generally applicable or applicable only in specific cases.

(i) To the extent determined by the Committee, any Subsidiary may have a separate long-term
incentive plan or program. The Committee shall have exclusive jurisdiction and sole discretion to
approve or disapprove any such plan or program and, from time to time, to amend, modify, or suspend
any such plan or program. Individuals eligible for grants under any such plan or program shall not
be considered Participants eligible for grants under this Plan, unless otherwise determined by the
Committee. No provision of any such plan or program shall be included in or considered a part of
this Plan, unless otherwise determined by the Committee.

(j) The provisions of the Plan shall be construed, regulated and administered according to the
laws of the State of Delaware without giving effect to principles of conflicts of law, except to
the extent superseded by any controlling Federal statute.

(k) If any provision of the Plan is or becomes or is deemed invalid, illegal or unenforceable in
any jurisdiction, or would disqualify the Plan or any Award under any law deemed applicable by the
Committee, such provision shall be construed or deemed amended to conform to applicable laws

 

 

or if it cannot be construed or deemed amended without, in the determination of the Committee,
materially altering the intent of the Plan, it shall be stricken and the remainder of the Plan
shall remain in full force and effect.

(l) Awards may be granted to Participants who are foreign nationals or employed outside the United
States, or both, on such terms and conditions different from those applicable to Awards to
Employees employed in the United States as may, in the judgment of the Committee, be necessary or
desirable in order to recognize differences in local law or tax policy; provided, however, that
amendments deemed necessary under this Section 13(l) may not be made without stockholder approval
or Participant approval, if such approval is required by Section 11. The Committee also may impose
conditions on the exercise or vesting of Awards in order to minimize the Corporation’s obligation
with respect to tax equalization for Employees on assignments outside their home country.

(m) For purposes of this Plan, a qualifying leave of absence shall not constitute a termination of
employment, except that an Option shall not be exercisable during a leave of absence granted a
Participant for civilian local, state, provincial, or federal government service other than
military service. If approved by the Committee in its sole discretion, a Participant’s absence or
leave because of military or governmental service, disability or other reason shall not be
considered an interruption of employment for any purpose under the Plan.

(n) If the Corporation shall have any unpaid claim against the Participant arising out of or in
connection with such Participant’s employment with the Corporation, such claim may be offset
against Awards under this Plan. Such claim (i) may include, but is not limited to, unpaid taxes or
corporate business credit card charges, limited to $5,000.

(o) Notwithstanding any provision of this Plan, no Plan elections, modifications or distributions
will be allowed or implemented if they would cause an otherwise eligible Plan Participant to be
subject to tax (including interest and penalties) under Section 409A of the Code.

(p) Specified Employees. Participants determined to be Specified Employees (as determined by the
Committee) shall not be entitled to be paid any portion of any Award payable on account of a
termination of employment until the expiration of six months from date of termination (or, if
earlier, death). The value of the Award(s) (without interest) shall be payable on the first day of
the seventh full month following termination.

SECTION 14. EFFECTIVE DATE and TERM OF PLAN

The amended Plan is effective as of October 1, 2007, and the Plan shall terminate on May
31, 2012, unless sooner terminated by the Board pursuant to Section 11.

SECTION 15. DEFINITIONS

As used in
the Plan, the following terms shall have the meanings set forth
below:

(a) “Award” shall mean any award hereunder of Options, Restricted Stock Units, Performance Awards
or Qualified Performance Awards.

(b) “Board” shall mean the Board of Directors of the Corporation.

(c) “Change in Control” shall mean the occurrence of any one of the following:

     (1) any “person” or “group” as those terms are used in the Exchange Act, other than any
employee benefit plan of GM or a trustee or other administrator or fiduciary holding securities
under an employee benefit plan of the Corporation, is or becomes the current

 

 

beneficial owner, within the meaning of Rules 13d3 and 13d-5 promulgated under the
Exchange Act, of GM securities representing in the aggregate 20% or more of the combined voting
power of GM’s then outstanding securities entitled to vote in general matters coming before
stockholders of the Corporation, whether in a meeting or otherwise; provided, however, that the
provisions of this subsection (c) are not intended to apply to or include as a Change in
Control any transaction that is specifically excepted from the definition of Change in Control
under subsection (iii) below.

     In the event that the application of this subsection (c) to an occurrence that has taken
place or may take place raises interpretive issues regarding the foregoing definitions of
“person,” and “group,” a duly adopted resolution of the Board of Directors of the Corporation
or the Directors & Corporate Governance Committee, or a successor thereof, determining that a
Change in Control, as defined in this subsection (c), has occurred or will occur shall be
final, binding and conclusive for all purposes under the terms of this Plan, and no revocation
of that decision, rescission of that resolution or change to the terms hereof shall alter the
effect of the resolution of the Board of Directors that such occurrence does or will constitute
a Change in Control, unless the effect of such rescission, revocation, change, or alteration
shall not have an adverse effect on Employees covered by this Plan to the extent they have
benefited or will benefit by reason of such resolution;

     (2) during any two-year period, Incumbent Directors, as hereinafter defined, cease for any
reason to constitute a majority of the Board. For purposes of this paragraph, “Incumbent
Director” shall mean the directors of the Corporation on the effective date of a Change in
Control and any new directors whose election by the Board or nomination for election by the
Corporation’s stockholders was approved by at least two-thirds of the directors still in
office who were Incumbent Directors (including individuals whose appointment or election to
office after the effective date of a Change in Control satisfied the requirements of this
paragraph); provided, however, that, notwithstanding the foregoing, no individual whose
initial assumption of office occurs as a result of either an actual or threatened election
contest (as such terms are used in Rule 14a-11 or Regulation 14A promulgated under the
Exchange Act or successor statutes or rules containing analogous concepts) or other actual or
threatened solicitation of proxies or consents by or on behalf of an individual, corporation,
partnership, group, associate or other entity or “person” other than the Board, shall in any
event be considered to be an Incumbent Director;

     (3) GM merges, consolidates or combines with any other corporation or other entity, other
than a merger, consolidation, combination or any similar transaction, without regard to the
form thereof, (A) that would result in all or a portion of the voting securities of GM
outstanding immediately prior thereto continuing to represent (either by remaining outstanding
or by being converted into voting securities of the surviving entity or parent entity thereof)
securities representing more than 50% of the combined voting power of the voting securities of
GM or such surviving entity (or parent entity thereof) outstanding immediately after such
merger or consolidation and (B) by which the corporate existence of GM is not affected and
following which GM’s Chief Executive Officer would retain his or her position with GM and the
GM directors would remain on the Board of the Corporation and constitute a majority thereof;
provided, however, that if GM is not the ultimate parent of the controlled group of which it is
a member, references to GM in clause (ii) of this subsection shall be deemed to refer to such
ultimate parent of the Corporation or its successor;

     (4) GM sells or otherwise disposes of all or substantially all of its assets; or

     (5) the stockholders of the Corporation approve a plan of complete liquidation of GM.

 

 

(d) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and any
successor thereto, and any reference to any section of the Code shall also include any
successor provision thereto.

(e) “Committee” shall mean the Executive Compensation Committee of the Board, its named
successor, or such other persons or committee to whom the Board has delegated any authority, as
may be appropriate.

(f) “Corporation” of “GM” shall mean General Motors Corporation, a Delaware corporation.

(g) “Covered Employee” shall mean a “covered employee” within the meaning of Section 162(m)(3) of
the Code.

(h) “Director” shall mean a member of the Board.

     (i) “Employees”

     (1) shall mean persons (A) who are employed by the Corporation or any Subsidiary, including
employees who are also Directors of the Corporation or any such Subsidiary, or (B) who accept (or
previously have accepted) employment, at the request of the Corporation, with any entity not
described in (A) above but in which the Corporation has, directly or indirectly, a substantial
ownership interest. The rights reserved herein shall, among other things, permit the Committee to
determine when, and to what extent, individuals otherwise eligible for consideration shall become
or cease to be, as the case may be, Employees for purposes of this Plan and to determine when, and
under what circumstances, any individual shall be considered to have terminated employment for
purposes of this Plan. To the extent determined by the Committee, the term Employees shall be
deemed to include former Employees and any beneficiaries thereof; and,

     (2) shall not include the following classes of individuals, regardless of whether the
individual is a common-law employee of the Corporation: (A) any individual who provides services to
the Corporation where there is an agreement with a separate company under which the services are
provided. Such individuals are commonly referred to by the Corporation as “contract employees”,
“contract workers” or “bundled-services workers or employees”; (B) any individual who has signed an
independent contractor agreement, consulting agreement, or other similar personal service contract
with the Corporation; (C) any individual that the Corporation classifies as an independent
contractor, consultant, contract employee, contract worker, or bundled services worker or employee
during the period the individual is so classified by the Corporation.

(j) “Employer” shall mean, as applicable to any Participant, the Corporation or Subsidiary
that employs the Participant.

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

(l) “Fair Market Value” shall mean, with respect to Shares, as of any date, the average of the high
and low trading prices for the Shares as reported on the New York Stock Exchange Composite Tape for
that date or, if no such prices are reported for that date, the average of the high and low trading
prices on the immediately preceding date for which such prices were reported, unless the Committee
shall have determined to apply another method of ascertaining Fair Market Value.

(m) “Good Reason” for termination by the Participant of the Participant’s employment shall mean
the occurrence (without the Participant’s express written consent) of any one of the following
acts by the employer, or failures by the Employer to act, following the occurrence of a Change in
Control:

(1) a significant adverse change in the Participant’s authority, duties,
responsibilities or position from those in effect immediately prior to the Change in
Control; provided that,

 

 

notwithstanding the foregoing, the following are not “Good Reason”: (A) an isolated,
insubstantial and inadvertent action not taken in bad faith and which is remedied by the
Employer promptly after receipt of notice thereof given by the Participant, or (B) for
employees below the executive vice president level, a change of less than two levels in the
position to which the Participant reports, or (C) a change in the person to whom the
Participant reports:

(2) a reduction in the Participant’s annual base salary as in effect immediately prior to
the Change in Control or as the same may be increased from time to time following the
Change in Control, or a reduction in the level of the Participant’s incentive opportunity
under the incentive plans as in effect immediately prior to the Change in Control or as
the same may be increased from time to time following the Change in Control;

(3) the Employer’s requiring the Participant to change the principal workplace location
at which the Participant is based to a location that is greater than 50 miles distant from
such Participant’s principal workplace location immediately prior to the date of such
change of location;

(4) the failure by the Corporation or the Employer (as applicable) to pay to the
Participant (A) any portion of the Participant’s annual base salary, (B) any awards
earned pursuant to the Incentive Plans or (C) any portion of an installment of deferred
compensation under any deferred compensation program of the Corporation or any of its
Subsidiaries, in each case within seven days of the date such compensation is due;

(5) the failure by the Corporation or the Employer (as applicable) to continue in effect
any compensation plan or program in which the Participant participates immediately prior
to the Change in Control and which is material to the Participant’s total compensation,
including, without limitation, the Incentive Plans or any plans or programs adopted in
substitution thereof prior to the Change in Control, unless an equitable arrangement
(embodied in an ongoing substitute or alternative plan or program) has been made with
respect to such plan or program, or the failure by the Corporation or the Employer (as
applicable) to continue the Participant’s participation therein (or in such substitute or
alternative plan or program) on a basis not materially less favorable, both in terms of
the amount of opportunities provided and the level of the Participant’s participation
relative to other positions, as existed at the time of the Change in Control;

(6) the failure by the Corporation or the Employer (as applicable) to continue to provide
the Participant with benefits substantially similar to those enjoyed by the Participant in
the aggregate under any of the Corporation’s or the Employer’s (as applicable) pension and
retirement, fringe benefit and welfare plans, including life insurance, medical, health
and accident, disability, and vacation plans and programs in which the Participant
participates immediately prior to the Change in Control or the taking of any action by the
Corporation or the Employer (as applicable) which would directly or indirectly materially
reduce any of such benefits or deprive the Participant of any material fringe benefits
enjoyed by the Participant immediately prior to the Change in Control;

(7) the failure by the Corporation or the Employer (as applicable) to continue to
provide the Participant with indemnification and insurance coverage under the
Corporation’s Certificate of Incorporation, Bylaws and any applicable agreement to which
the Participant is a party or of which the Participant is a beneficiary, which is
substantially the same as that enjoyed by the Participant under any such instruments or
arrangements immediately prior to the Change in Control;

(8) the failure of the Corporation to obtain a satisfactory agreement from any successor
to

 

 

assume and agree to perform this Plan; or

(9) any purported termination of the Participant’s employment by the Corporation
or the Employer (as applicable) which is not effected pursuant to a Notice of
Termination.

     The Participant’s right to terminate the Participant’s employment for Good Reason shall not be
affected by the Participant’s incapacity due to physical or mental illness.

     The Participant’s continued employment shall not constitute consent to, or a waiver of rights
with respect to, any act or failure to act constituting Good Reason hereunder. Notwithstanding the
foregoing, the occurrence of an event that would otherwise constitute Good Reason hereunder shall
cease to be an event constituting Good Reason if (x) the Participant fails to provide the
Corporation with notice of the occurrence of any of foregoing within the ninety-day period
immediately following the date on which the Participant first becomes aware (or reasonably should
have become aware) of the occurrence of such event, (y) the Participant fails to provide the
Corporation with a period of at least thirty days from the date of such notice to cure such event
prior to terminating his or her employment for Good Reason or (z) Notice of Termination is not
provided to the Corporation by the Participant within ninety days following the day on which the
thirty-day period set forth in the preceding clause (y) expires; provided, that the notice period
required by clause (y) and referred to in clause (z) shall end two days prior to the third
anniversary of the Change in Control in the event that the third anniversary of the Change in
Control would occur during such thirty-day period

(n) “Incentive Stock Option” shall mean an Option granted under Section 6 that is
intended to meet the requirements of Section 422 of the Code.

(o) “Nonqualified Stock Option” shall mean an Option granted under Section 6 that is not
intended to be an Incentive Stock Option.

(p) “Notice of Termination” shall mean a notice that indicates the basis for any termination
of employment and sets forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of a participant’s employment.

(q) “Option” shall mean any right granted to a Participant under the Plan allowing such
Participant to purchase Shares at such price or prices and during such period or periods, as
the Committee shall determine.

(r) “Participant” shall mean an Employee who is selected by the Committee or the Board from time
to time in its sole discretion to receive an Award under the Plan.

(s) “Performance Award” shall mean any grant pursuant to Section 8.

(t) “Performance Criteria” shall mean the specific measures for each Qualified Performance Award
established by the Committee at the time of such grant. In creating these measures, the Committee
may establish the specific goals based upon or relating to one or more of the following business
criteria: asset turnover, cash flow, contribution margin, cost objectives, cost reduction, earnings
per share, economic value added, increase in customer base, inventory turnover, market price
appreciation of the Corporation’s Shares, market share, net income, net income margin, operating
profit margin, pre-tax income, productivity, profit margin, quality, warranty, return on assets,
return on net assets, return on capital, return on equity, revenue, revenue growth, and/or total
shareholder return. The business criteria may be expressed in absolute terms or relative to the
performance of other companies or to an index.

(u) “Performance Period” shall mean that period established by the Committee at the time any
Performance Award is granted or at any time thereafter during which any performance goals specified
by the Committee with respect to such Award are to be measured.

 

 

(v) “Person” mean any individual, corporation, partnership, association, limited liability
corporation, joint-stock corporation, trust, unincorporated organization or government or
political subdivision thereof, including any Employee or Participant of the Corporation and
its Subsidiaries.

(w) “Qualified Performance Award” shall mean any Award that complies with the provisions
of Section 10.

(x) “Restricted Stock Unit” (“RSU”) shall mean any grant pursuant to Section 7.

(y) “Shares” shall mean shares of General Motors Stock, $1 2/3 par value.

(z) “Subsidiary” shall mean (A) a corporation of which capital stock having ordinary voting power
to elect a majority of the board of directors of such corporation is owned, directly or indirectly,
by the Corporation or (B) any unincorporated entity in respect of which the Corporation can
exercise, directly or indirectly, comparable control.

(aa) “Substitute Awards” shall mean Awards granted in assumption of, or in substitution or exchange
for, awards previously granted, or the right or obligation to make future awards, by a corporation
acquired by the Corporation or with which the Corporation combines.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]