Document:

exv10w8

 

Exhibit 10.8

CENTEX CORPORATION

EXECUTIVE DEFERRED COMPENSATION PLAN

Amended and Restated Effective January 1, 2008

 

 

CENTEX CORPORATION

EXECUTIVE DEFERRED COMPENSATION PLAN

Amended and Restated Effective January 1, 2008

Table of Contents

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	 	 	 	 
	 	 	 	 
	ARTICLE I. NATURE OF PLAN	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE II. DEFINITIONS AND CONSTRUCTION	 	 	1	 
	 	2.1	 	 	Definitions

	 	 	1	 
	 	2.2	 	 	Word Usage

	 	 	7	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE III. ELIGIBILITY TO PARTICIPATE	 	 	7	 
	 	3.1	 	 	Date of Participation

	 	 	7	 
	 	3.2	 	 	Change in Employment Status

	 	 	7	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE IV. DEFERRED CASH COMPENSATION AWARDS	 	 	8	 
	 	4.1	 	 	Award from Company

	 	 	8	 
	 	4.2	 	 	Agreement

	 	 	8	 
	 	4.3	 	 	Crediting of Amounts

	 	 	8	 
	 	4.4	 	 	Interest

	 	 	8	 
	 	4.5	 	 	Vesting

	 	 	8	 
	 	4.6	 	 	Distribution

	 	 	8	 
	 	4.7	 	 	Forfeiture

	 	 	8	 
	 	4.8	 	 	Death, Disability or Vested Retirement

	 	 	8	 
	 	4.9	 	 	Change in Control

	 	 	9	 
	 	4.10	 	 	Employee Directors

	 	 	9	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE V. PARTICIPANT ACCOUNTS	 	 	9	 
	 	5.1	 	 	Participant Accounts

	 	 	9	 
	 	5.2	 	 	Accounting for Distributions

	 	 	9	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE VI. DISTRIBUTION OF BENEFITS	 	 	9	 
	 	6.1	 	 	General

	 	 	9	 
	 	6.2	 	 	Deferral

	 	 	9	 
	 	6.3	 	 	Distributions In the Event of the Participant’s Death

	 	 	14	 
	 	6.4	 	 	Withdrawals in the Event of an Unforeseeable Financial Emergency

	 	 	14	 
	 	6.5	 	 	Notice to Trustee

	 	 	15	 

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	 	 	 	 	 	 	Page
	ARTICLE VII. AMENDMENTS AND TERMINATION	 	 	15	 
	 	7.1	 	 	Amendment by Company

	 	 	15	 
	 	7.2	 	 	Plan Termination

	 	 	15	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE VIII. TRUST	 	 	15	 
	 	8.1	 	 	Establishment of Trust

	 	 	15	 
	 	8.2	 	 	Funding

	 	 	15	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE IX. PLAN ADMINISTRATION	 	 	16	 
	 	9.1	 	 	Powers and Responsibilities of the Committee

	 	 	16	 
	 	9.2	 	 	Claims and Review Procedures

	 	 	16	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE X. MISCELLANEOUS	 	 	17	 
	 	10.1	 	 	Communication to Participants

	 	 	17	 
	 	10.2	 	 	Limitation of Rights

	 	 	18	 
	 	10.3	 	 	Spendthrift Provision

	 	 	18	 
	 	10.4	 	 	Spousal Claims

	 	 	18	 
	 	10.5	 	 	Withholding

	 	 	18	 
	 	10.6	 	 	Facility of Payment

	 	 	18	 
	 	10.7	 	 	Overpayment and Underpayment of Benefits

	 	 	18	 
	 	10.8	 	 	Governing Law

	 	 	19	 
	 	10.9	 	 	Adoption by Related Companies

	 	 	19	 

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CENTEX CORPORATION

EXECUTIVE DEFERRED COMPENSATION PLAN

Amended and Restated Effective January 1, 2008

ARTICLE I.

NATURE OF PLAN

     Centex Corporation (the “Company”) established the Centex Corporation Executive Deferred
Compensation Plan (the “Plan”), effective as of April 1, 2003, for the benefit of certain of its
Eligible Employees. The Plan was last amended and restated effective April 1, 2006. The Company
is amending and restating the Plan effective January 1, 2008 for purposes of complying with Section
409A of the Code.

     The purpose of the Plan is to provide non-qualified Deferred Cash Compensation Awards to
Eligible Employees. The Plan is intended to be an unfunded deferred compensation plan maintained
for the benefit of a select group of management or highly compensated employees under Sections
201(2), 301(a)(3) and 401(a)(1) of ERISA.

     The portion of each Participant’s Account under the Plan as of December 31, 2004 that was
earned and vested as of that date shall be segregated into a separate account under the Plan to be
known as the Grandfathered Account. The Grandfathered Account will be adjusted for any earnings or
losses on amounts credited to such account. The Grandfathered Accounts shall be subject to the
terms and conditions of the Plan as in effect on December 31, 2007 (the “Superseded Plan”).
Notwithstanding any provision of this Plan to the contrary, the Grandfathered Accounts shall not
subject to the terms and conditions of this amended and restated Plan.

     NOW, THEREFORE, the Company hereby authorizes the amendment and restatement of the Plan,
effective January 1, 2008, to read as follows:

ARTICLE II.

DEFINITIONS AND CONSTRUCTION

     2.1 Definitions. Wherever used herein, the following terms have the meanings set forth
below, unless a different meaning is clearly required by the context:

          “Account” means an account established on the books of the Employer for the purpose of
recording amounts credited on behalf of a Participant and any income, expenses, gains or
losses included thereon as described in Article V, and does not include any Grandfathered
Account. Separate subaccounts within a Participant’s Account may be established for
purposes of accounting for varying vesting, payment and other provisions applicable to the
Participant’s Deferred Cash Compensation Awards.

          “Beneficiary” means the person or persons entitled under Section 6.3 to receive

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     benefits under the Plan upon the death of a Participant.

          “Board” means the Board of Directors of the Company.

          “Change in Control” means, unless otherwise defined by the independent Compensation
Committee of the Board, a change in control of a nature that would be required to be
reported in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the
Securities Exchange Act of 1934, as amended (the “Act”), whether or not the Company is then
subject to such reporting requirement; provided, that, without limitation, such a change in
control shall be deemed to have occurred if:

          (i) a third person, including a “Group” as defined in Section 13(d)(3) of the
Act, becomes the beneficial owner of Company common stock, par value $0.25 per
share, having 50% or more of total number of votes that may be cast for the election
of Directors; or

          (ii) as a result of, or in connection with, a contested election for Director,
persons who were Directors immediately before such election shall cease to
constitute a majority of the Board;

provided, however, that as to any Account under this Plan that is subject to Code
Section 409A, no “Change in Control” shall be deemed to have occurred unless such event
constitutes an event specified in Code Section 409A(a)(2)(A)(v) and the Treasury Regulations
and other guidance thereunder.

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

          “Code Section 409A” means Section 409A of the Code and all applicable regulations and
other guidance issued under or related to Section 409A of the Code.

          “Committee” means the Compensation Committee of the Board.

          “Company” means Centex Corporation, a Nevada corporation, or any successor thereto
which shall adopt this Plan.

          “Deferral Election Form” means an election, in the form and subject to the conditions
prescribed by the Committee, pursuant to which a Participant elects the time and form of
distribution of his Account under the Plan.

          “Deferred Cash Compensation” means deferred cash compensation granted to an Eligible
Employee as a bonus following the conclusion of a fiscal year pursuant to Article IV.

          “Deferred Cash Compensation Award” means an award of Deferred Cash Compensation.

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          “Deferred Compensation Agreement” means an agreement between the Company and an
Eligible Employee, in the form and subject to the conditions prescribed by the Committee,
pursuant to which an Eligible Employee is granted a Deferred Cash Compensation Award from
the Company, and which specifies:

          (1) that the Eligible Employee agrees to participate in this Plan in accordance
with its provisions; and

          (2) that this Plan is incorporated by reference and the Deferred Compensation
Agreement shall be subject to this Plan in all respects.

          “Director” means an individual who is a member of the Board.

          “Disability” means a disability which entitles a Participant to benefits under the
Employer’s long-term disability insurance plan or program, provided that with respect to
Awards that are subject to Code Section 409A, the Participant also must meet one of the
following conditions:

          (1) the Participant is unable to engage in any substantial gainful activity by
reason of a medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a continuous period of
not less than 12 months; or

          (2) the Participant is, by reason of any medically determinable physical or
mental impairment that can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months, receiving income replacement
benefits for a period of not less than three months under an accident and health
plan covering employees of the Participant’s employing Company.

          “Eligible Employee” means (1) prior to January 1, 2004, an Employee of the Employer who
has executed a Deferred Compensation Agreement before January 1, 2004, and (2) after
December 31, 2003, an Employee who is an officer or key Employee of the Employer.

          “Employee” means any employee of the Employer.

          “Employee Director” means an individual (1) who is both a member of the Board and an
Employee of the Company at the time of the grant of the Deferred Cash Compensation Award or
(2) who was both a member of the Board and an Employee of the Company, but whose date of
Retirement is before the Deferred Cash Compensation Award is granted, but who qualifies for
such award in accordance with an incentive compensation plan of the Company.

          “Employer” means the Company and any Related Employer.

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

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          “Full Time Employee” means a person actively and regularly engaged in work at least 40
hours a week.

          “Grandfathered Account” is defined in the third paragraph of Article I.

          “Maximum Deferral Date” means December 31st of the 7th year after the year in which a
Deferred Cash Compensation Award is granted to a Participant.

          “Participant” means any Eligible Employee who participates in the Plan in accordance
with Article III and Article IV.

          “Plan” means the Centex Corporation Executive Deferred Compensation Plan, as set forth
herein and as may be amended from time to time.

          “Plan Year” means the 12-consecutive month period beginning January 1 and ending
December 31.

          “Related Employer” means any employer other than the Company named herein, if the
Company and such other employer are members of a controlled group of corporations (as
defined in Section 414(b) of the Code) or an affiliated service group (as defined in Section
414(m)), or are trades or businesses (whether or not incorporated) which are under common
control (as defined in Section 414(c)), or such other employer is required to be aggregated
with the Company pursuant to regulations issued under Code Section 414(o). Related Employer
shall also include any joint venture in which the Company or a subsidiary of the Company is
a partner, if the Company or a subsidiary of the Company manages such joint venture, and any
Affiliated Business Arrangement. For purposes of this definition of Related Employer, an
“Affiliated Business Arrangement” means any entity in which either CTX Mortgage Ventures,
LLC, a Delaware limited liability company, or a subsidiary of the Company owns an interest
and in which a non-Company owned entity also owns an interest, and may take the form of a
limited partnership, a limited liability limited partnership, a limited liability company or
such other ownership and management structure as CTX Mortgage Ventures, LLC or a subsidiary
of the Company, as applicable, may deem appropriate. In addition, predecessors to the
Company and its subsidiaries are Related Employers.

          “Retirement” means the Participant’s voluntary termination of employment from the
Employer and, where the context indicates, will include Vested Retirement with respect to
Deferred Cash Compensation Awards granted prior to April 1, 2006.

          “Separation from Service” means a termination of services provided by a Participant to
his or her Employer (as defined below), whether voluntarily or involuntarily, as determined
by the Committee in accordance with Treasury Regulation § 1.409A-1(h).  In determining
whether a Participant has incurred a Separation from Service, the following provisions shall
apply:

          (1) Except as otherwise provided in this definition, a Separation from Service
will occur when the Participant has experienced a termination of employment with the
Employer.  A Participant will be considered to have

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experienced a termination of employment when the facts and circumstances indicate
that the Participant and his or her Employer reasonably anticipate that either (i)
no further services will be performed for the Employer after a certain date, or (ii)
that the level of bona fide services the Participant will perform for the Employer
after such date (whether as an employee or as an independent contractor) will
permanently decrease to no more than 331/3 percent of the average level of bona fide
services performed by the Participant (whether as an employee or an independent
contractor) over the immediately preceding 36-month period (or the full period of
services to the Employer if the Participant has been providing services to the
Employer less than 36 months).

            If a Participant is on military leave, sick leave, or other bona fide leave
of absence, the employment relationship between the Participant and the Employer
will be treated as continuing, provided that the period of the leave of absence does
not exceed 6 months, or if longer, so long as the Participant has a right to
reemployment with the Employer under an applicable statute or by contract.  If the
period of a military leave, sick leave, or other bona fide leave of absence exceeds
6 months and the Participant does not have a right to reemployment under an
applicable statute or by contract, the employment relationship will be considered to
be terminated for purposes of this Plan as of the first day immediately following
the end of such 6-month period.  In applying the provisions of this paragraph, a
leave of absence will be considered a bona fide leave of absence only if there is a
reasonable expectation that the Participant will return to perform services for the
Employer.

            (2)        For a Participant who provides services to an Employer both as an
employee and as an independent contractor, a Separation from Service generally will
not occur until the Participant has ceased providing services for the Employer both
as an employee and as an independent contractor. Except as otherwise provided
herein, in the case of an independent contractor a Separation from Service will
occur upon the expiration of the contract (or in the case of more than one contract,
all contracts) under which services are performed for the Employer, provided that
the expiration of such contract or contracts is determined by the Company to
constitute a good-faith and complete termination of the contractual relationship
between the Participant and the Employer.  If a Participant ceases providing
services for an Employer as an employee and begins providing services for such
Employer as an independent contractor, the Participant will not be considered to
have experienced a Separation from Service until the Participant has ceased
providing services for the Employer in both capacities, as determined in accordance
with the applicable provisions set forth in subparagraphs (1) and (2) of this
definition.

          Notwithstanding the foregoing provisions in this subparagraph, if a Participant
provides services for an Employer as both an employee and as a member of the board
of directors of an Employer, to the extent permitted by Treasury Regulation §
1.409A-1(h)(5), the services provided by the Participant as a director will not be
taken into account in determining whether the Participant

5

 

  has experienced a Separation from Service as an employee.

          (3) In addition, notwithstanding the provisions of this definition, where as
part of a sale or other disposition of substantial assets by an Employer to an
unrelated buyer, a Participant would otherwise experience a Separation from Service
as defined above, the Employer and the buyer shall retain the discretion to specify,
and may specify, that a Participant performing services for an Employer immediately
before the asset purchase transaction and providing services to the buyer after and
in connection with the asset purchase transaction shall not experience a Separation
from Service for purposes of this Plan and the Participant shall be bound by same,
provided that such transaction and the specification meet the requirements of Code
Section 409A.

          (4) For purposes of this definition, “Employer” means:

               (i) The entity for whom the Participant performs services and with
respect to which the legally binding right to a Deferred Cash Compensation
Award arises; and

               (ii) All other entities with which the entity described in subparagraph
(4)(i) of this definition would be aggregated and treated as a single
employer under Code Section 414(b) (controlled group of corporations) and
Code Section 414(c) (group of trades or businesses under common control), as
applicable. To identify the group of entities described in the preceding
sentence, an ownership threshold of 50% shall be used as a substitute for
the 80% minimum ownership threshold that appears in, and otherwise must be
used when applying, the applicable provisions of (A) Code Section 1563 and
the regulations thereunder for determining a controlled group of
corporations under Code Section 414(b), and (B) Treasury Regulation §
1.414(c)-2 for determining the trades or businesses that are under common
control under Code Section 414(c).

     “Specified Employee” means any Participant who is determined to be a “key employee” (as
defined under Code Section 416(i) without regard to paragraph (5) thereof) for the
applicable period, as determined by the Company in accordance with Treasury Regulation §
1.409A-1(i).

     “Trust” means a trust fund established, if any, pursuant to the Article VIII hereof.

     “Trustee” means the corporation or individuals named in the agreement establishing a
Trust and such successor and/or additional trustees as may be named in accordance with a
trust agreement, if one is established.

     “Unforeseeable Financial Emergency” means a severe financial hardship to the
Participant resulting from (i) a sudden and unexpected illness or accident of the
Participant, the Participant’s beneficiary, or the Participant’s dependent (as defined in

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Code Section 152 without regard to paragraphs (b)(1), (b)(2) and (d)(1)(B) thereof),
(ii) a loss of the Participant’s property due to casualty, or (iii) such other similar
extraordinary and unforeseeable circumstances arising as a result of events beyond the
control of the Participant, all as determined in the sole discretion of the Committee.

     “Vested Retirement” means the voluntary termination by a Participant who is a Full Time
Employee of all employment from the Employer at any time after the Participant is age 55 or
older, has at least 10 Years of Service and the sum of age and Years of Service equals at
least 70. Calculation of eligibility for Vested Retirement shall be based on whole years of
age and Years of Service on the date as of which the calculation is being made. Any partial
years shall be disregarded. In no event will the Plan’s Vested Retirement provisions apply
to Deferred Cash Compensation Awards granted on or after April 1, 2006.

     “Weighted Average Cost of Funds” means the Company’s weighted average borrowing cost as
determined quarterly by the Company’s Treasurer.

     “Years of Service” means the Participant’s years of employment with an Employer. A
Participant shall be credited with a Year of Service on each anniversary of the date on
which he was first employed with an Employer, provided that the Participant continues to be
employed by an Employer on such anniversary date.

     2.2 Word Usage. Words used in the masculine shall apply to the feminine where applicable,
and wherever the context of the Plan dictates, the plural shall be read as the singular and the
singular as the plural. The words “herein,” “hereof,” “hereinafter” and other conjunctive uses of
the word “here” shall be construed as reference to another portion of this Plan document. The
terms “Section” or “Article” when used as a cross-reference shall refer to other Sections or
Articles contained in the Plan and not to another instrument, document or publication unless
specifically stated otherwise.

ARTICLE III.

ELIGIBILITY TO PARTICIPATE 

     3.1 Date of Participation. An Eligible Employee shall become a Participant in the Plan as
of the date he is granted a Deferred Cash Compensation Award, pursuant to Section 4.1.

     3.2 Change in Employment Status. If any Participant continues in the employ of the
Employer or Related Employer but ceases to be an Eligible Employee, the individual shall continue
to be a Participant while he remains employed and the Deferred Cash Compensation Award will
continue to vest and be paid in accordance with its terms; provided, however, the individual shall
not be eligible for new grants of Deferred Cash Compensation Awards on and after the date he is no
longer an Eligible Employee.

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ARTICLE IV.

DEFERRED CASH COMPENSATION AWARDS

     4.1 Award from Company. From time to time while the Plan is in effect, the Committee may in
its absolute discretion select from among Eligible Employees such one or more of them as in the
opinion of the Committee should receive a Deferred Cash Compensation Award from the Company. The
Committee will also, in its absolute discretion, determine the amount of the Deferred Cash
Compensation Award for each Eligible Employee so selected. Notwithstanding the foregoing,
Employees of an Employer that is not considered a single employer with the Company under Code
Section 414(b) or Code Section 414(c) shall not be eligible to participate in this Plan until the
Employer adopts the Plan as a participating employer in accordance with Section 10.9.

     4.2 Agreement. Each Deferred Cash Compensation Award under the Plan shall be evidenced by,
and subject to, a timely executed Deferred Compensation Agreement setting forth the terms and
conditions of the award.

     4.3 Crediting of Amounts. An Employer shall credit a Participant’s Account with the amount
of Deferred Cash Compensation that has been awarded to the Participant in accordance with Section
4.1. Such amount shall be credited to a Participant’s Account on the date specified under the
applicable Deferred Compensation Agreement.

     4.4 Interest. A Participant’s Account shall accrue interest (compounded on a daily basis)
until paid to the Participant, and shall be credited with interest each day at a per annum interest
rate equal to the Company’s Weighted Average Cost of Funds for the calendar quarter ended
immediately prior to such day or as otherwise provided in the applicable Deferred Compensation
Agreement.

     4.5 Vesting. A Participant’s Deferred Cash Compensation Award shall vest in accordance with
a schedule established by the Committee, in its sole and absolute discretion, and as described in
the applicable Deferred Compensation Agreement. The schedules established by the Committee for
each Deferred Cash Compensation Award may differ among Participants.

     4.6 Distribution. The distribution of any vested portion of a Deferred Cash Compensation Award shall be as provided
in the applicable Deferred Compensation Agreement, subject to the provisions of Article VI below.

     4.7 Forfeiture. Subject to Sections 4.8, 4.9 and 4.10 below and except as otherwise
provided in a Deferred Compensation Agreement or as otherwise determined by the Committee, any
unvested portion of an Account attributable to a Deferred Cash Compensation Award shall be
immediately forfeited automatically upon termination of employment of the Participant for any
reason other than death or Disability, or, with respect to Deferred Cash Compensation Awards
granted prior to April 1, 2006, Vested Retirement.

     4.8 Death, Disability or Vested Retirement. Notwithstanding Section 4.5 to the contrary,
unless (i) otherwise expressly provided in the applicable Deferred Compensation Agreement or (ii)
previously forfeited under Section 4.7, in the event of the Participant’s death or

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Disability while
employed by an Employer or, with respect to Deferred Cash Compensation Awards granted prior to
April 1, 2006, Vested Retirement, each Deferred Cash Compensation Award granted to such Participant
shall become immediately vested in its entirety.

     4.9 Change in Control. In the event of a Change in Control during a Participant’s
employment with the Employer, each Deferred Cash Compensation Award granted under this Plan to the
Participant shall become immediately vested and payable and shall be paid in a lump sum in cash
(regardless of the otherwise applicable distribution and vesting provided for under the Deferred
Compensation Agreement or the terms of the Deferred Cash Compensation Award) unless otherwise
expressly provided in such Deferred Compensation Agreement or Deferred Cash Compensation Award.

     4.10 Employee Directors. An Employee Director’s entire Deferred Cash Compensation Award
will vest in full on the date the Employee Director ceases to be both a Director and an Employee.

ARTICLE V.

PARTICIPANT ACCOUNTS

     5.1 Participant Accounts. The Company will establish and maintain an Account for each
Participant to which shall be credited all Employer contributions and any earnings attributable to
the Participant’s Account. The Committee will establish and maintain such other accounts and
records as it decides in its discretion to be reasonably required or appropriate in order to
discharge its duties under the Plan. Participants will be furnished statements of their Account
values at least once each Plan Year.

     5.2 Accounting for Distributions. As of any date of a distribution to a Participant or a
Beneficiary hereunder, the distribution to the Participant or to the Participant’s Beneficiary(ies)
shall be charged to the Participant’s Account.

ARTICLE VI.

DISTRIBUTION OF BENEFITS

     6.1 General. Except as otherwise provided in Section 6.2, amounts credited to a
Participant’s Account in respect of a Deferred Cash Compensation Award shall be paid in a lump sum
cash distribution as soon as administratively practicable but no later than 60 days following the
date on which the payment is no longer subject to a substantial risk of forfeiture within the
meaning of Code Section 409A; provided, however, that payment may be made at a later date for
administrative reasons to the extent permitted by Code Section 409A; provided, further, that the
Participant shall not be permitted, directly or indirectly, to designate the calendar year of the
payment.

     6.2 Deferral.

          (a) With the approval of the Committee, amounts credited to a Participant’s Account in
respect of a Deferred Cash Compensation Award may be deferred and paid in

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a form of
distribution authorized by the Committee, which may include installments or a lump sum
distribution. The Committee may permit selected Participants to elect to defer payment of a
Deferred Cash Compensation Award in accordance with the provisions of this Section 6.2 and
such other procedures as may be established by the Committee. The Committee also may
specify in a Deferred Cash Compensation Award or the terms of the Deferred Compensation
Agreement that payment of amounts credited to a Participant’s Account in respect of a
Deferred Cash Compensation Award will be deferred. Any deferred payment pursuant to a
Deferred Cash Compensation Award, whether elected by the Participant or specified by the
Deferred Compensation Agreement or the terms of the Deferred Cash Compensation Award, may be
forfeited if and to the extent that the Deferred Compensation Agreement or the terms of the
Deferred Cash Compensation Award so provide. Any such deferral of payment will be made in
accordance with the following:

          (i) Initial Deferral Elections by Participants. Except as otherwise provided
in this Section 6.2, the Participant must make a written, irrevocable election as to
deferral of payment in respect of a Deferred Cash Compensation Award and the time
and form of such payment on or before the deadline established by the Committee,
which shall be no later than:

                    (A) December 31st of the calendar year preceding the
calendar year during which the Participant will commence performing the
services giving rise to the Deferred Cash Compensation Award subject to the
deferral election; or

                    (B) for the first year in which the Participant becomes eligible to
participate in the Plan, 30 days after the date the Participant first
becomes eligible to participate in the Plan, provided that such an election
will only be effective with respect to the portion of the Deferred Cash
Compensation Award related to services performed after the election.

          (ii) Initial Participant Deferral Elections for Performance-Based Compensation.
In the event that the Committee determines that a deferral election may be made
with respect to a Deferred Cash Compensation Award that is Performance-Based
Compensation (as defined below), an eligible Participant may make a written,
irrevocable election as to deferral of payment in respect of the Deferred Cash
Compensation Award and the time and form of such payment on or before the deadline
established by the Committee, which shall not be later than 6 months before the end
of the performance period.  

          For purposes of this subparagraph, “Performance-Based Compensation” means a
Deferred Cash Compensation Award, the amount of which, or the entitlement to which,
is contingent on the satisfaction of preestablished organizational or individual
performance criteria relating to a performance period of at least 12 consecutive
months, as determined by the Committee in accordance with Treasury Regulation §
1.409A-1(e).  Performance criteria are considered preestablished if established in
writing by not later than 90 days after the

10

 

commencement of the period of service to
which the criteria relates, provided that the outcome is substantially uncertain at
the time the criteria are established.

          For a Participant to be eligible to make a deferral election in accordance with
this subparagraph, the Participant must have performed services continuously from
the later of (A) the beginning of the performance period for the Performance-Based
Compensation or (B) the date upon which the performance criteria with respect to the
Performance-Based Compensation are established, through the date on which the
Participant makes the deferral election.  In addition, in no event may a deferral
election under this subparagraph be made after the Performance-Based Compensation
has become readily ascertainable within the meaning of Treasury Regulation §
1.409A-2(a)(8).

          (iii) Initial Participant Deferral Elections for Fiscal Year Compensation. In
the event that the Committee determines that a deferral election may be made with
respect to a Deferred Cash Compensation Award that is Fiscal Year Compensation (as
defined below), the Participant may make a written, irrevocable election as to the
deferral of payment in respect of the Deferred Cash Compensation Award and the time
and form of such payment on or before the deadline established by the Committee,
which shall not be later than the close of the Employer’s fiscal year immediately
preceding the first fiscal year in which any services are performed for which the
Deferred Cash Compensation Award is payable.  For purposes of this subparagraph, the
term “Fiscal Year Compensation” means a Deferred Cash Compensation Award relating to
a period of service coextensive with one or more consecutive fiscal years of the
Employer,
of which no amount is paid or payable during the fiscal year(s) constituting
the period of service.

          (iv) Initial Participant Deferral Elections for Short-Term Deferrals. If a
Participant has a legally binding right to a Deferred Cash Compensation Award under
the Plan or a payment under a Deferred Cash Compensation Award in a subsequent
calendar year that, absent a deferral election, would be treated as a short-term
deferral within the meaning of Treasury Regulation § 1.409A-1(b)(4) and the
Committee determines that a deferral election may be made with respect to payment in
respect of the Deferred Cash Compensation Award, the Participant may make a written,
irrevocable election to defer such payment in accordance with the requirements of
subparagraph (vii) of this Section 6.2(a), applied as if the payment were a deferral
of compensation and the scheduled payment date for the payment were the date the
substantial risk of forfeiture lapses. The Committee may provide in the deferral
election that the deferred payment will be payable upon a Change in Control without
regard to the five-year additional deferral requirement in subparagraph (vii) of
this Section 6.2(a).

          (v) Initial Participant Deferral Elections for Compensation Subject to a Risk
of Forfeiture. If a Participant has a legally binding right to a Deferred Cash
Compensation Award under the Plan or payment in respect of a Deferred Cash
Compensation Award in a subsequent year and the payment of or under the

11

 

Deferred
Cash Compensation Award is subject to a forfeiture condition requiring the
Participant’s continued services for a period of at least 12 months from the date
the Participant obtains the legally binding right, the Committee may permit the
Participant to make a written, irrevocable election to defer such payment no later
than the 30th day after the Participant obtains the legally binding
right to the payment, provided that the election is made at least 12 months in
advance of the earliest date at which the forfeiture condition could lapse, as
determined in accordance with Treasury Regulation § 1.409A-2(a)(5). For purposes of
this subparagraph, a condition will not be treated as failing to require the
Participant to continue to provide services for a period of at least 12 months from
the date the Participant obtains the legally binding right merely because the
condition immediately lapses upon Disability or death of the Participant or upon a
Change in Control. However, if the Participant’s Disability or death or a Change in
Control event occurs before the end of such 12-month period, a deferral election
under this subparagraph will be effective only if it would be permissible under
another subparagraph of this Section 6.2(a).

          (vi) Deferrals by Committee. If a Deferred Cash Compensation Award is made
that provides for the deferral of compensation for services performed during a
Participant’s taxable year and the Participant is not given an opportunity to elect
the time or form of payment of the Deferred Cash Compensation Award, the Committee
must designate the time and form of payment no later than the time the Participant
first has a legally binding right to the Deferred Cash Compensation Award or, if
later, the time the Participant would be required under this Section 6.2(a) to make
such an election if the Participant were provided such
an election.

          (vii) Subsequent Participant Deferral Elections. Notwithstanding the foregoing
provisions of this Section 6.2(a), with approval of the Committee, a Participant may
elect to further delay payment in respect of a Deferred Cash Compensation Award or
change the form of payment if:

                    (A) the election will not take effect until at least 12 months after
the date on which the election is made;

                    (B) for any payment not made on account of death or Disability, the
payment is deferred for a period of not less than five years from the date
the payment would otherwise have been paid and not later than the Maximum
Deferral Date; and

                    (C) any election related to a payment to be made at a specified time or
pursuant to a fixed schedule must be made not less than 12 months before the
date the payment is scheduled to be paid.

Notwithstanding the foregoing or any other provision of this Plan to the contrary,
the Committee may permit Participants to make new payment elections on or before
December 31, 2008, with respect to the time and/or form of payment in

12

 

respect of a
Deferred Cash Compensation Award, provided that the election applies only to amounts
that would not otherwise be payable in the year in which the election is made and
does not cause an amount to be paid in the year in which the election is made that
would not otherwise be payable in that year.

     (viii) Acceleration of Payments. Notwithstanding any provision of this Plan, a
Deferred Compensation Agreement or a deferral election to the contrary, the
Committee, in its discretion, may accelerate payment in respect of a Deferred Cash
Compensation Award in accordance with the provisions of Treasury Regulation §
1.409A-3(j)(4)(ii) through (xiv).

     (ix) Delay of Payments. Notwithstanding any provision of this Plan, an Award
Agreement or a deferral election to the contrary, payment in respect of a Deferred
Cash Compensation Award may be delayed by the Committee under the circumstances
described in Treasury Regulation § 1.409A-2(b)(7), provided that the Committee
treats all payments to similarly situated Participants on a reasonably consistent
basis.

     (b) Permissible Payment Events/Times. The Committee may specify any one or more of the
following as an event upon or a time at which payment of the vested portion of a Deferred
Cash Compensation Award may be made pursuant to a deferral election under Section 6.2(a):
(i) Separation from Service, (ii) Disability, (iii) death, (iv) a specified date or pursuant
to a fixed schedule, (v) Unforeseeable Financial Emergency, or (vi) a Change in Control.
The Committee may provide for payment upon the earliest or latest of more than one such
event or time.

     (c) Time of Payment. The payment date with respect to payment of a Deferred Cash
Compensation Award that is deferred under Section 6.2(a) shall be the permissible payment
event or time under Section 6.2(b) designated by the Participant or the Committee, as
applicable, in accordance with Section 6.2(a). Payment in respect of a Deferred Cash
Compensation Award shall be made within 60 days following the payment date; provided,
however, that payment may be made at a later date for administrative reasons to the extent
permitted by Code Section 409A; provided, further, that the Participant shall not be
permitted, directly or indirectly, to designate the calendar year of the payment.

     (d) Specified Employees. Any provision of the Plan to the contrary notwithstanding, if
any payment in respect of a Participant’s Award provides for a deferral of compensation
under Code Section 409A and the Participant is a Specified Employee as of the date of his or
her Separation from Service, no payment on account of the Participant’s Separation from
Service may be made with respect to such Participant before the date that is six months
after the Participant’s Separation from Service (or, if earlier than the end of the
six-month period, the date of the Participant’s death). In such case, any payment that
would be made within such six-month period will be accumulated and paid in a single lump sum
on the earliest business day that complies with the requirements of Code Section 409A.

13

 

     6.3 Distributions In the Event of the Participant’s Death. If a Participant dies before
the distribution of his Account has commenced, or before such distribution has been completed, his
designated Beneficiary or Beneficiaries will be entitled to receive, to the extent vested, the
balance or remaining balance of his Account, plus any amounts thereafter credited to his Account,
in a lump sum as soon as administratively practicable after the Participant’s date of death and
satisfaction of this Section 6.3. The distribution date upon a Participant’s death shall be the
date of the Participant’s death; provided, however, that distribution may be made at a later date
for administrative reasons to the extent permitted by Code Section 409A; provided, further, that
the Beneficiary or Beneficiaries shall not be permitted, directly or indirectly, to designate the
calendar year of the distribution.

     If a Participant is married, his Beneficiary is his spouse at the time of his death. A
Participant may designate a Beneficiary or Beneficiaries other than his spouse, provided that the
Participant’s spouse either consents to such designation or the Participant establishes to the
satisfaction of the Committee that the spouse’s consent cannot be obtained because the spouse
cannot be located. Spousal consent must be in writing, must acknowledge the effect of the
designation, and must be witnessed by a Plan representative or a notary public. Any consent by a
spouse (or the establishment that a spouse cannot be located) shall be valid only with respect to
that spouse. The designation of a nonspousal Beneficiary or a change in any prior designation of
Beneficiary or Beneficiaries shall be made by giving notice to the Committee on a form designated
by the Committee.

     If a Participant is not married, he may designate a Beneficiary or Beneficiaries or change any
prior designation of Beneficiary or Beneficiaries by giving notice to the Committee on a form
designated by the Committee.

     If more than one person is designated as the Beneficiary, their respective interests shall be
as indicated on the designation form. Distributions shall be made in lump sum payments in cash as
soon as administratively practicable following the Committee’s receipt of notice of the
Participant’s death.

     A copy of the death notice or other sufficient documentation must be filed with and approved
by the Committee. If upon the death of the Participant there is, in the opinion of the Committee,
no designated Beneficiary for part or all of the Participant’s vested Account, such amount will be
paid to his surviving spouse or, if none, to his estate (such spouse or estate shall be deemed to
be the Beneficiary for purposes of the Plan). If a Beneficiary dies after benefits to such
Beneficiary have commenced, but before they have been completed, and, in the opinion of the
Committee, no person has been designated to receive such remaining benefits, then such benefits
shall be paid to the deceased Beneficiary’s estate.

     6.4 Withdrawals in the Event of an Unforeseeable Financial Emergency. If the Participant
experiences an Unforeseeable Financial Emergency, the Participant may petition the Committee, in
the manner and form specified by the Committee, to receive a partial or full distribution of his
vested Account. A payout under this section shall not exceed the lesser of the vested balance in
the Participant’s Account or the amount reasonably needed to satisfy the Unforeseeable Financial
Emergency. Approval of such a request shall be made by the Committee in its sole discretion. Any
such withdrawal shall be made on a pro rata basis from

14

 

any subaccounts established under a
Participant’s Account.

     6.5 Notice to Trustee. The Committee will notify the Trustee, if applicable, in writing
whenever any Participant or Beneficiary is entitled to receive benefits under the Plan. The
Committee’s notice shall indicate the form, amount and frequency of benefits that such Participant
or Beneficiary shall receive.

ARTICLE VII.

AMENDMENTS AND TERMINATION

     7.1 Amendment by Company. The Company, by action of the Committee, reserves the authority
to amend the Plan at any time and in any manner, except that no amendment shall apply retroactively
to alter the rights of Participants (or, following the Particpants’ death, their Beneficiaries)
with respect to past deferrals, nor shall any such amendment divest any Participant (or, following
the Participant’s death, his Beneficiaries) of any deferral made prior to the amendment.
Amendments may be made as necessary or appropriate to enable the Plan to satisfy the applicable
requirements of the Code or ERISA or to conform the Plan to any change in federal law or to any
regulations or ruling thereunder.

     7.2 Plan Termination. The Company has adopted the Plan with the intention and expectation that the Plan will be
continued indefinitely. However, the Company has no obligation or liability whatsoever to maintain
the Plan for any length of time and may discontinue contributions under the Plan or, by action of
the Committee, terminate the Plan at any time. In the event of such discontinuance, Accounts of
Participants maintained under the Plan at the time of termination shall continue to be governed by
the terms of the Plan until paid out in accordance with the terms of the Plan; provided, however,
that the Company reserves the right to distribute to each Participant the total amount deferred,
including accrued interest, of the Participant’s Account upon Plan termination, to the extent
permitted under Code Section 409A.

ARTICLE VIII.

TRUST

     8.1 Establishment of Trust. Benefits hereunder shall constitute an unfunded, general
obligation of the Company. The Company may, but shall not be required to, establish a Trust
between the Company and the Trustee, in accordance with the terms and conditions as set forth in a
separate agreement, under which assets are held, administered and managed, subject to the claims of
the Company’s creditors in the event of the Company’s insolvency, until paid to Participants and
their Beneficiaries as specified in the Plan. Any such Trust shall be treated as a grantor trust
under the Code, and the establishment of any such Trust is not intended to cause Participants to
realize current income on amounts contributed thereto. If a Trust is established under this
Section 8.1, then benefits may be paid by the Company or from the Trust.

     8.2 Funding. Notwithstanding the ability or obligation, as applicable, of the Company to
establish a Trust under this Article VIII, or to take other action to create reserves or funds,
benefits under this Plan shall constitute an unfunded and unsecured promise to pay

15

 

benefits. A
Participant and his Beneficiary(ies) shall be general creditors of the Company with respect to the
payment of any benefit under this Plan.

ARTICLE IX.

PLAN ADMINISTRATION

     9.1 Powers and Responsibilities of the Committee. The Committee has the full power and
discretion and the full responsibility to interpret the Plan and to administer the Plan in all of
its details, subject, however, to the applicable requirements of ERISA. The Committee’s powers and
responsibilities include, but are not limited to, the following:

          (a) To make and enforce such rules and regulations as it deems necessary or proper for
the efficient administration of the Plan;

          (b) To interpret the Plan, its interpretation thereof in good faith and discretion to
be final and conclusive on all persons claiming benefits under the Plan;

          (c) To decide all questions concerning the Plan and the eligibility of any person to
participate in the Plan;

          (d) To administer the claims and review procedures specified in Section 9.2;

          (e) To compute the amount of benefits which will be payable to any Participant, former
Participant or Beneficiary in accordance with the provisions of the Plan;

          (f) To determine the person or persons to whom such benefits will be paid;

          (g) To authorize the payment of benefits;

          (h) To comply with the reporting and disclosure requirements of Part 1 of Subtitle B of
Title I of ERISA;

          (i) To designate such persons (which may include Employees of the Company), counsel,
accountants, and consultants as may be required to assist in administering the Plan; and

          (j) To allocate and delegate its responsibilities, including the formation of any other
committees as appropriate to the administration of the Plan.

9.2 Claims and Review Procedures.

          (a) If any person believes he is entitled to any rights or benefits under the Plan,
such person may file a claim in writing with the Committee, which shall be in appropriate
detail to convey a clear understanding of such claim. If any such claim is wholly or
partially denied, the Committee will notify such person of its decision in writing. Such
notification will contain (i) specific reasons for the denial, (ii) specific

16

 

reference to
pertinent Plan provisions, (iii) a description of any additional material or information
necessary for such person to perfect such claim and an explanation of why such material or
information is necessary, and (iv) information as to the steps to be taken if the person
wishes to submit a request for review, the time limits applicable to such procedures, and a
statement of the person’s rights following an adverse benefit determination on review,
including a statement of his right to file a lawsuit under ERISA if the claim is denied on
appeal. Such notification will be given within 90 days after the claim is received by the
Committee (or within 180 days, if special circumstances require an extension of time for
processing the claim, and if written notice of such extension and circumstances is given to
such person within the initial 90-day period). If such notification is not given within
such period, the claim will be considered denied as of the last day of such period and such
person may request a review of his claim.

          (b) Within 60 days after the date on which a person receives a notice of denial (or
within 60 days after the date on which such denial is considered to have occurred),
such person (or his duly authorized representative) may (i) file a written request with
the Committee for a review of his denied claim; (ii) review pertinent documents; and
(iii) submit issues and comments in writing. The decision on review will be made within 60
days after the request for review is received by the Committee (or within 120 days, if
special circumstances require an extension of time for processing the request, such as an
election by the Committee to hold a hearing, and if written notice of such extension and
circumstances is given to such person within the initial 60-day period). The decision on
review shall be in written or electronic form, and include notice of the final
determination. If the claim is denied in whole or part, such notice, which shall be in a
manner calculated to be understood by the person receiving such notice, shall include (i)
the specific reasons for the decision, (ii) the specific references to the pertinent plan
provisions on which the decision is based, (iii) a statement that the person is entitled to
receive, upon request and free of charge, reasonable access to, and copies of, all
documents, records, and other information relevant to the claim for benefits, (iv) a
description of any voluntary appeal procedures offered by the Plan and the person’s right to
obtain further information about any such procedures, and (v) a statement of the person’s
right to file a lawsuit under ERISA. If the decision on review is not made within such
period, the claim will be considered denied.

          (c) Benefits under this Plan will only be paid if the Committee decides, in its
discretion, that a person is entitled to them. Moreover, no action at law or in equity
shall be brought to recover benefits under this Plan prior to the date the claimant has
exhausted the administrative process of appeal available under the Plan.

ARTICLE X.

MISCELLANEOUS

     10.1 Communication to Participants. The Committee shall communicate the terms of the Plan
as soon as practicable after an Eligible Employee is designated as a Participant.

17

 

     10.2 Limitation of Rights. Neither the establishment of the Plan and, if applicable, the
Trust, nor any amendment thereof, nor the creation of any fund or account, nor the payment of any
benefits, will be construed as giving to any Participant or other person any legal or equitable
right against the Company, an Employer, the Committee (or its delegates) or Trustee, except as
provided herein. The Plan is not an employment contract, and in no event will the terms of
employment or service of any Participant be modified or in any way affected hereby.

     10.3 Spendthrift Provision. Except as otherwise provided in Section 10.4, the benefits
provided hereunder will not be subject to alienation, assignment, garnishment, attachment,
execution or levy of any kind, either voluntarily or involuntarily, and any attempt to cause such
benefits to be so subjected will not be recognized, except to such extent as may be required by
law.

     10.4 Spousal Claims. Subject to the provisions of Code Section 409A, any claim against
benefits under this Plan for child support, spousal maintenance, alimony, property division or
other matrimonial or dependent obligations shall be paid in a single lump sum payment in cash as
soon as administratively practicable after the Committee (or its delegate) approves such payment.
Except as provided herein, such a claim under this Plan shall be subject to the Plan’s claims
procedures, provisions and restrictions.

     10.5 Withholding. Any taxes required to be withheld from distributions or benefits
hereunder shall be deducted and withheld by the Employer, benefit provider or funding agent.

     10.6 Facility of Payment. In the event the Committee determines, on the basis of medical
reports or other evidence satisfactory to the Committee, that the recipient of any benefit payments
under the Plan is incapable of handling his affairs by reason of minority, illness, infirmity or
other incapacity, the Committee may, but is not obligated to, provide for disbursement of such
payments to such person’s spouse or to any person or institution designated by a court which has
jurisdiction over such recipient or a person or institution otherwise having the legal authority
under applicable state law for the care and control of such recipient. The receipt by any such
person or institution of any such payments therefor, and any such payment to the extent thereof,
shall discharge the liability of the Plan for the payment of benefits hereunder to such recipient.

     10.7 Overpayment and Underpayment of Benefits. The Committee may adopt, in its sole
discretion, whatever rules, procedures and accounting practices that comply with Code Section 409A
and are appropriate in providing for the collection of any overpayment of benefits. To the extent
permitted by Code Section 409A, if an overpayment is made to a Participant, spouse, other
Beneficiary or alternate payee, for whatever reason, the Committee may, in its sole discretion,
withhold payment of any further benefits under the Plan until the overpayment has been collected or
may require repayment of benefits paid under this Plan, without regard to further benefits to which
the person may be entitled and, to the extent deemed necessary by the Committee, in its sole
discretion, the Committee may seek repayment of such overpaid amounts through any and all available
legal actions, including, but not limited to, filing suit in a court with appropriate jurisdiction.
If a Participant, spouse, alternate payee, or other Beneficiary receives an underpayment of
benefits, the Committee shall direct that immediate payment be made to make up for the
underpayment; provided, however, that such payment shall be made in a manner

18

 

that complies with Code Section 409A.

     10.8 Governing Law. The Plan will be construed, administered and enforced according to
ERISA, and to the extent not preempted thereby, the laws of the State of Texas.

     10.9 Adoption by Related Companies. With the consent of the Committee, any Related Company that is not considered a single employer
with the Company under Code Section 414(b) or Code Section 414(c) may adopt the Plan for the
benefit of its Employees by written instrument delivered to the Committee.

19

 

     IN WITNESS WHEREOF, the Company has executed this amended and restated Plan as evidenced by
the signature of its officer affixed hereto, in a number of copies, all of which shall constitute
but one and the same instrument, which may be sufficiently evidenced by any executed copy hereof,
this 15th day of February, 2008, to be effective as of January 1, 2008.

	 	 	 	 	 	 	 
	 	 	CENTEX CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael S. Albright	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Michael S. Albright	 	 
	 	 	Its: Senior Vice President – Administration	 	 

20exv10w9

 

Exhibit 10.9

CENTEX CORPORATION

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

(Amended and Restated Effective January 1, 2008)

     Centex Corporation, a Nevada corporation (the “Company”), having established and maintained
the Centex Corporation Amended and Restated Supplemental Executive Retirement Plan (the “SERP”),
and having reserved the right to amend the SERP, does hereby amend and restate the SERP in its
entirety, effective January 1, 2008, to read as follows:

SECTION 1. PURPOSE

     Under the Internal Revenue Code (the “Code”) the federal government sets a limit on the amount
of annual compensation which may be considered in determining, for the account of an eligible
participant, a company’s contribution to a tax-qualified defined contribution plan, including the
Centex Corporation Saving for Retirement Plan (the “Plan”), and does not permit certain employees
to participate in the Plan. The purpose of this SERP is to establish balances for each participant
in this SERP in an amount substantially equal to the contribution or additional contribution which
he or she would have received under the Plan had 100% of his or her annual salary been eligible for
a profit sharing contribution. The first SERP contribution was for the Plan year ended March 31,
1995. The Plan year was changed to a calendar year basis in 1999. Unless otherwise defined
herein, capitalized terms have the meaning given to them in the Plan. The Plan and accounts
hereunder are intended to comply with the requirements of Code Section 409A, and shall be
interpreted and administered in a manner consistent with that intention.

SECTION 2. GRANDFATHERED ACCOUNTS

     The portion of each participant’s account under the SERP as of December 31, 2004 that was
earned and vested as of that date, plus the right to any future contributions to the account that
was earned and vested as of December 31, 2004, to the extent such contributions were actually made,
shall be segregated into a separate account under the SERP to be known as the grandfathered
account. The grandfathered account will be adjusted for any earnings or losses on amounts credited
to such account. The grandfathered accounts shall be subject to the terms and conditions of the
SERP as in effect on December 31, 2007 (the “superseded plan”) Notwithstanding any provision of
this SERP to the contrary, the grandfathered accounts shall not subject to the terms and conditions
of this amended and restated SERP, as provided below.

SECTION 3. ELIGIBILITY

     All current participants in the Plan whose employer’s contribution, other than a 401(k)
contribution, is reduced either by the compensation limit under Section 401(a)(17) of the Code or
in order to satisfy any of the non-discrimination tests applicable to the Plan, such as Section
410(b)(2) of the Code, which is commonly referred to as the “average benefits test,” shall be
eligible to participate in the SERP. Those provisions of the Code which so limit the employer’s
contribution are herein called the “Limitations.” New employees paid annual compensation in excess
of the Limitations (including an employee who does not yet qualify for participation in the Plan,
provided that he or she does subscribe to the Plan when he or she becomes eligible to do so), and
participants in the Plan who first meet the eligibility standards after subscribing to the Plan,
may be added to this SERP at the sole discretion of either the Chairman and Chief Executive Officer
or the President and Chief Operating Officer of Centex Corporation. In addition, employees
(whether full time or part time) who are ineligible to participate in

1

 

the Plan, but to whom the Company desires to extend benefits equivalent to those available to
eligible employees under the Plan, may be added to this SERP at the sole discretion of either the
Chairman and Chief Executive Officer or the President and Chief Operating Officer of the Company.
Notwithstanding the foregoing, employees of affiliates of the Company that are not considered a
single employer with the Company under Code Section 414(b) or Code Section 414(c) shall not be
eligible to participate in the SERP until the affiliate adopts the SERP as a participating employer
in accordance with Section 11.

SECTION 4. FUNDING

     This is an unfunded, non-qualified plan. The amounts to be allocated to each participant for
both contributions and earnings will be reflected only as accrued liabilities on the books and
records of the Company. The participants will thus be unsecured creditors of the Company. From
time to time the Company may, in its sole and absolute discretion, create and administer separate
accounts for one or more participants which the Company may fund, from time to time, in amounts
which are equivalent to the total account of the participant.

SECTION 5. CONTRIBUTIONS

     To be eligible for an annual SERP accrual a participant must be actively employed by an
Employer (as that term is defined in the Plan) on the date the SERP contribution is to be credited
to his or her account (and regardless of whether or not he receives a contribution under the Plan
for the same Plan year). The annual SERP accrual for the account of each eligible participant will
be calculated using the total Compensation which, but for the Limitations or the participant not
being eligible to participate in the Plan, would be considered in determining the appropriate
profit sharing contribution for such participant under the Plan (“Total Compensation”), less the
amount of Compensation, if any, which has been considered for purposes of determining the profit
sharing contribution under the Plan. The difference between Total Compensation and the
Compensation, if any, considered under the Plan is herein called “Excess Salary.”

     The accrual contribution to be allocated to the account of an eligible participant will be the
product of his or her Excess Salary times the percent of salary used by his or her Employer in
allocating the Plan contribution. Such allocation shall be credited to the eligible participant’s
account as soon as practicable after the profit sharing contribution for such year is made to the
Plan. Should the Plan formula be changed in future years such that the contribution is not
calculated exclusively as a percentage of Compensation, then the percentage to be used for the SERP
shall represent the percentage derived by dividing the total Employer Profit Sharing Contribution
for the applicable Employer by the sum of all Total Compensation for all of that Employer’s Plan
participants.

SECTION 6. EARNINGS

     Each participant may designate how his or her SERP account balance is to be invested by the
Company and will have a “phantom” account whose results will match the result of the investments
made by the Company. Each participant may so designate how his or her SERP balance is to be
invested by the Company by selecting among the various investment options available to him or her
as a participant in the Plan. If a participant does not notify Fidelity, the offeror of such
various investment options, as to which investment options he or she selects, then such account
balance will be invested in the Fidelity Freedom 2000 Fund or any successor to such fund, which is
heavily invested in fixed income securities, or its successor.

2

 

SECTION 7. PAYOUT

     Upon the earlier of a participant’s Separation from Service or Disability (as those terms are
defined below), the Company will become obligated to pay to the participant the entire vested
balance in his or her account under the SERP and payout of such account will be made to the
participant in a single lump sum payment within 60 days following the participant’s Disability or
Separation from Service, as applicable; provided, however, that payment may be made at a later date
for administrative reasons to the extent permitted by Section 409A of the Code and the Treasury
Regulations and other guidance thereunder; provided, further, that the participant shall not be
permitted, directly or indirectly, to designate the calendar year of the payment. Notwithstanding
the foregoing, if a participant is a Specified Employee (as defined below) as of the date of his or
her Separation from Service, no payout on account of the participant’s Separation from Service may
be made with respect to such participant before the date that is six months after the participant’s
Separation from Service (or, if earlier than the end of the six-month period, the date of the
participant’s death). In such case, any payout that would be made within such six-month period
will be accumulated and paid in a single lump sum on the earliest business day that complies with
the requirements of Section 409A of the Code and the Treasury Regulations and other guidance
thereunder. If a participant dies before payout of his or her vested account balance is made, the
Company will pay the participant’s vested account balance to the beneficiary or beneficiaries
designated in writing by the participant or, if none, to the participant’s Beneficiary as
determined under the terms of the Plan.

     For purposes of the foregoing paragraph, the terms “Disability,” “Separation from Service” and
“Specified Employee” have the following meanings:

     “Disability” means a disability which entitles a participant to benefits under the Company’s
or an affiliate’s long-term disability insurance plan or program, provided that the participant
also meets one of the following conditions:

          (a) the participant is unable to engage in any substantial gainful activity by reason
of a medically determinable physical or mental impairment that can be expected to result in
death or can be expected to last for a continuous period of not less than 12 months; or

          (b) the participant is, by reason of any medically determinable physical or mental
impairment that can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months, receiving income replacement benefits for a
period of not less than three months under an accident and health plan covering employees of
the participant’s employer.

     “Separation from Service” means a termination of services provided by a participant to his or
her Employer (as defined below), whether voluntarily or involuntarily, as determined by the Company
in accordance with Treasury Regulation § 1.409A-1(h).  In determining whether a participant has
incurred a Separation from Service, the following provisions shall apply:

          (a) Except as otherwise provided in this definition, a Separation from Service will
occur when the participant has experienced a termination of employment with the Employer.  A
Participant will be considered to have experienced a termination of employment when the
facts and circumstances indicate that the participant and his or her Employer reasonably
anticipate that either (i) no further services will be performed for the Employer after a
certain date, or (ii) that the level of bona fide services the participant will perform for
the Employer after such date (whether as an employee or as an independent contractor) will
permanently decrease to no more than 331/3 percent of the average level of bona fide services
performed by the participant (whether

3

 

as an employee or an independent contractor) over the immediately preceding 36-month period
(or the full period of services to the Employer if the participant has been providing
services to the Employer less than 36 months).

            If a participant is on military leave, sick leave, or other bona fide leave of
absence, the employment relationship between the participant and the Employer will be
treated as continuing, provided that the period of the leave of absence does not exceed 6
months, or if longer, so long as the participant has a right to reemployment with the
Employer under an applicable statute or by contract.  If the period of a military leave,
sick leave, or other bona fide leave of absence exceeds 6 months and the participant does
not have a right to reemployment under an applicable statute or by contract, the employment
relationship will be considered to be terminated for purposes of this SERP as of the first
day immediately following the end of such 6-month period.  In applying the provisions of
this paragraph, a leave of absence will be considered a bona fide leave of absence only if
there is a reasonable expectation that the participant will return to perform services for
the Employer.

            (b)        For a participant who provides services to an Employer as both an employee
and an independent contractor, a Separation from Service generally will not occur until the
participant has ceased providing services for the Employer both as an employee and as an
independent contractor as determined in accordance with the provisions set forth in
subparagraphs (a) and (b) of this definition, respectively. Except as otherwise provided
herein, in the case of an independent contractor a Separation from Service will occur upon
the expiration of the contract (or in the case of more than one contract, all contracts)
under which services are performed for the Employer, provided that the expiration of such
contract or contracts is determined by the Company to constitute a good-faith and complete
termination of the contractual relationship between the participant and the Employer.  If a
participant ceases providing services for an Employer as an employee and begins providing
services for such Employer as an independent contractor, the participant will not be
considered to have experienced a Separation from Service until the participant has ceased
providing services for the Employer in both capacities, as determined in accordance with the
applicable provisions set forth in subparagraphs (a) and (b) of this definition.

          Notwithstanding the foregoing provisions in this subparagraph, if a participant
provides services for an Employer as both an employee and as a member of the board of
directors of an Employer, to the extent permitted by Treasury Regulation § 1.409A-1(h)(5),
the services provided by the participant as a director will not be taken into account in
determining whether the participant has experienced a Separation from Service as an
employee.

          (c) In addition, notwithstanding the provisions of this definition, where as part of a
sale or other disposition of substantial assets by an Employer to an unrelated buyer, a
participant would otherwise experience a Separation from Service as defined above, the
Employer and the buyer shall retain the discretion to specify, and may specify, that a
participant performing services for an Employer immediately before the asset purchase
transaction and providing services to the buyer after and in connection with the asset
purchase transaction shall not experience a Separation from Service for purposes of the SERP
and the participant shall be bound by same, provided that such transaction and the
specification meet the requirements of Section 409A of the Code and the Treasury Regulations
and other guidance thereunder.

          (d) For purposes of this definition, “Employer” means:

     (i) The entity for whom the participant performs services and with respect to

4

 

which the legally binding right to benefits under the SERP arises; and

     (ii) All other entities with which the entity described in subparagraph (d)(i)
of this definition would be aggregated and treated as a single employer under Code
Section 414(b) (controlled group of corporations) and Code Section 414(c) (group of
trades or businesses under common control), as applicable. To identify the group of
entities described in the preceding sentence, an ownership threshold of 50% shall be
used as a substitute for the 80% minimum ownership threshold that appears in, and
otherwise must be used when applying, the applicable provisions of (A) Code Section
1563 and the regulations thereunder for determining a controlled group of
corporations under Code Section 414(b), and (B) Treasury Regulation § 1.414(c)-2 for
determining the trades or businesses that are under common control under Code
Section 414(c).

     “Specified Employee” means any participant who is determined to be a “key employee” (as
defined under Code Section 416(i) without regard to paragraph (5) thereof) for the applicable
period, as determined by the Company in accordance with Treasury Regulation § 1.409A-1(i).

     Notwithstanding any provision of this SERP to the contrary, the Company, in its discretion,
may (i) accelerate payout of a participant’s vested account balance in accordance with the
provisions of Treasury Regulation § 1.409A-3(j)(4)(ii) through (xiv) or (ii) delay payout of a
participant’s vested account balance under the circumstances described in Treasury Regulation §
1.409A-2(b)(7) provided that the Company treats all payouts to similarly situated participants on a
reasonably consistent basis.

SECTION 8. VESTING

     Vesting of SERP balances will be identical to vesting of employer contributions to the Plan.
Thus, if a terminated employee is only 60% vested in the Plan, the vesting in the SERP balance and
accumulated earnings will also be 60%.

SECTION 9. NO LOANS OR WITHDRAWALS

     No participant will be entitled to borrow or withdraw early any part of his or her vested
balance.

SECTION 10. MODIFICATION, SUSPENSION OR TERMINATION OF SERP

     The Company may at any time amend, suspend or terminate the SERP. However, the amount accrued
in the account of a participant in the SERP will not be reduced. If the SERP is suspended or
terminated, the amount accrued in each account but not paid to the participant will continue to
accrue interest at a rate equal to 80% of the prime rate charged from time to time by Bank of
America until payout of such sum to the participant.

     Following termination of the SERP, the amount credited to each participant’s account,
including interest accruals as provided for in the preceding paragraph, will remain in the SERP and
will not be distributed until such amounts become eligible for distribution in accordance with the
other applicable provisions of the SERP. Notwithstanding the preceding sentence, to the extent
permitted by Treasury Regulation § 1.409A-3(j)(4)(ix), the Company may distribute, upon termination
of the SERP, all account balances of the participants, subject to and in accordance with any rules
established by the Company deemed necessary to comply with the applicable requirements and
limitations of Treasury Regulation § 1.409A-3(j)(4)(ix).

5

 

SECTION 11. ADOPTION BY AFFILIATES.

     With the consent of the Chairman and Chief Executive Officer or the President and Chief
Operating Officer of the Company, any affiliate that is not considered a single employer with the
Company under Code Section 414(b) or Code Section 414(c) may adopt the SERP for the benefit of its
employees by written instrument delivered to the Company. Until the SERP is adopted by any such
affiliate, employees of such affiliate will not be eligible to participate in the SERP.

     IN WITNESS WHEREOF, this amended and restated SERP has been executed on this 15th day
of February, 2008, to be effective January 1, 2008.

	 	 	 	 	 	 	 
	 	 	CENTEX CORPORATION  
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Michael S. Albright	 	 
	 

	 	 	 	 	 	 
	 

	 	Name: Michael S. Albright	 	 
	 

	 	Title: Senior Vice President – Administration	 	 

6

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