Document:

exv10wa

 

Exhibit 10.a

MASCO CORPORATION

1991 LONG TERM STOCK INCENTIVE PLAN

(Amended and Restated October 26, 2006)

Section 1. Purposes

     The purposes of the 1991 Long Term Stock Incentive Plan (the “Plan”) are to encourage selected
employees of and consultants to Masco Corporation (the “Company”) and its Affiliates to acquire a
proprietary interest in the Company in order to create an increased incentive to contribute to the
Company’s future success and prosperity, and enhance the ability of the Company and its Affiliates
to attract and retain exceptionally qualified individuals upon whom the sustained progress, growth
and profitability of the Company depend, thus enhancing the value of the Company for the benefit of
its stockholders.

Section 2. Definitions

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

     (a) “Affiliate” shall mean any entity in which the Company’s direct or indirect equity
interest is at least twenty percent, and any other entity in which the Company has a significant
direct or indirect equity interest, whether more or less than twenty percent, as determined by the
Committee.

     (b) “Award” shall mean any Option, Stock Appreciation Right, Restricted Stock, Restricted
Stock Unit, Performance Award, Dividend Equivalent or Other Stock-Based Award granted under the
Plan.

     (c) “Award Agreement” shall mean any written agreement, contract or other instrument or
document evidencing any Award granted under the Plan.

     (d) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

     (e) “Committee” shall mean a committee of the Company’s directors designated by the Board of
Directors to administer the Plan and composed of not less than two directors, each of whom is a
“non-employee director” within the meaning of Rule 16b-3.

     (f) “Dividend Equivalent” shall mean any right granted under Section 6(e) of the Plan.

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

     (h) “Incentive Stock Option” shall mean an Option granted under Section 6(a) of the Plan that
is intended to meet the requirements of Section 422 of the Code, or any successor provision
thereto.

     (i) “Non-Qualified Stock Option” shall mean an Option granted under Section 6(a) of the Plan
that is not intended to be an Incentive Stock Option.

     (j) “Option” shall mean an Incentive Stock Option or a Non-Qualified Stock Option.

     (k) “Other Stock-Based Award” shall mean any right granted under Section 6(f) of the Plan.

     (l) “Participant” shall mean an employee of or consultant to the Company or any Affiliate or a
director of the Company designated to be granted an Award under the Plan.

     (m) “Performance Award” shall mean any right granted under Section 6(d) of the Plan.

 

 

     (n) “Prior Plans” shall mean the Company’s 1988 Restricted Stock Incentive Plan and 1988 Stock
Option Plan.

     (o) “Restricted Period” shall mean the period of time during which Awards of Restricted Stock
or Restricted Stock Units are subject to restrictions.

     (p) “Restricted Stock” shall mean any Share granted under Section 6(c) of the Plan.

     (q) “Restricted Stock Unit” shall mean any right granted under Section 6(c) of the Plan that
is denominated in Shares.

     (r) “Rule 16b-3” shall mean Rule 16b-3 promulgated by the Securities and Exchange Commission
under the Exchange Act, or any successor rule or regulation.

     (s) “Section 16” shall mean Section 16 of the Exchange Act, the rules and regulations
promulgated by the Securities and Exchange Commission thereunder, or any successor provision, rule
or regulation.

     (t) “Shares” shall mean the Company’s common stock, par value $1.00 per share, and such other
securities or property as may become the subject of Awards, or become subject to Awards, pursuant
to an adjustment made under Section 4(c) of the Plan.

     (u) “Stock Appreciation Right” shall mean any right granted under Section 6(b) of the Plan.

Section 3. Administration

     The Committee shall administer the Plan, and subject to the terms of the Plan and applicable
law, the Committee’s authority shall include without limitation the power to:

          (i) designate Participants;

          (ii) determine the types of Awards to be granted;

          (iii) determine the number of Shares to be covered by Awards and any payments, rights
or other matters to be calculated in connection therewith;

          (iv) determine the terms and conditions of Awards and amend the terms and conditions
of outstanding Awards;

          (v) determine how, whether, to what extent, and under what circumstances Awards may be
settled or exercised in cash, Shares, other securities, other Awards or other property, or
canceled, forfeited or suspended;

          (vi) determine how, whether, to what extent, and under what circumstances cash,
Shares, other securities, other Awards, other property and other amounts payable with
respect to an Award shall be deferred either automatically or at the election of the holder
thereof or of the Committee;

          (vii) determine the methods or procedures for establishing the fair market value of
any property (including, without limitation, any Shares or other securities) transferred,
exchanged, given or received with respect to the Plan or any Award;

          (viii) prescribe and amend the forms of Award Agreements and other instruments
required under or advisable with respect to the Plan;

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          (ix) designate Options granted to key employees of the Company or its subsidiaries as
Incentive Stock Options;

          (x) interpret and administer the Plan, Award Agreements, Awards and any contract,
document, instrument or agreement relating thereto;

          (xi) establish, amend, suspend or waive such rules and regulations and appoint such
agents as it shall deem appropriate for the administration of the Plan;

          (xii) decide all questions and settle all controversies and disputes which may arise
in connection with the Plan, Award Agreements and Awards;

          (xiii) delegate to directors of the Company the authority to designate Participants
and grant Awards, and to amend Awards granted to Participants;

          (xiv) make any other determination and take any other action that the Committee deems
necessary or desirable for the interpretation, application and administration of the Plan,
Award Agreements and Awards.

     All designations, determinations, interpretations and other decisions under or with respect to
the Plan, Award Agreements or any Award shall be within the sole discretion of the Committee, may
be made at any time and shall be final, conclusive and binding upon all persons, including the
Company, Affiliates, Participants, beneficiaries of Awards and stockholders of the Company.

Section 4. Shares Available for Awards

     (a) Shares Available. Subject to adjustment as provided in Section 4(c):

     The maximum number of Shares available for issuance in respect of Awards made under the Plan
on or after May 17, 2000 shall be 20,000,000 Shares plus up to an additional 20,000,000 Shares to
the extent Shares are acquired by the Company, including Shares purchased in the open market, on or
after May 17, 2000 in connection with awards made under the Plan, provided, however, that in the
event (i) an Award in respect of Shares under the Plan or the Prior Plans is settled for cash or
expires or is terminated unexercised as to any Shares covered thereby, (ii) any Award under the
Plan or the Prior Plans in respect of shares is cancelled or forfeited for any reason without the
delivery of Shares, (iii) any Option or other Award granted is exercised through the surrender of
Shares, or (iv) tax obligations are satisfied through the surrender or withholding of Shares, the
number of Shares available for issuance in respect of Awards under the Plan shall be increased by
the number of Shares not delivered in connection with any such Award or so surrendered or withheld.
Not more than 20,000,000 shares may be awarded as incentive stock options on or after May 17,
2000. Subject to the foregoing, Shares may be made available from the authorized but unissued
Shares of the Company or from Shares reacquired by the Company, including but not limited to Shares
purchased in the open market.

     (b) Individual Stock-Based Awards. Subject to adjustment as provided in Section 4(c), no
Participant may receive Options or Stock Appreciation Rights under the Plan in any calendar year
that relate to more than 4,000,000 Shares in the aggregate; provided, however, that such number may
be increased with respect to any Participant by any Shares available for grant to such Participant
in accordance with this Paragraph 4(b) in any prior years that were not granted in such prior year
beginning on or after January 1, 2000. No provision of this Paragraph 4(b) shall be construed as
limiting the amount of any other stock-based or cash-based Award which may be granted to any
Participant.

     (c) Adjustments. Upon the occurrence of any dividend or other distribution (whether in the
form of cash, Shares, other securities or other property), change in the capital or shares of
capital stock, recapitalization, stock split, reverse stock split, reorganization, merger,
consolidation, split-up, spin-off,

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combination, repurchase, or exchange of Shares or other
securities of the Company, issuance of warrants or other rights to purchase Shares or other
securities of the Company or extraordinary transaction
or event which affects the Shares, then the Committee shall make such adjustment, if any, in
such manner as it deems appropriate to prevent dilution or enlargement of the benefits or potential
benefits intended to be made available under the Plan, in (i) the number and type of Shares (or
other securities or property) which thereafter may be made the subject of Awards both to any
individual and to all Participants, (ii) outstanding Awards including without limitation the number
and type of Shares (or other securities or property) subject thereto, and (iii) the grant, purchase
or exercise price with respect to outstanding Awards and, if deemed appropriate, make provision for
cash payments to the holders of outstanding Awards; provided, however, that the number of Shares
subject to any Award denominated in Shares shall always be a whole number.

Section 5. Eligibility

     Any employee of or consultant to the Company or any Affiliate, or any director of the Company,
is eligible to be designated a Participant.

Section 6. Awards

     (a) Options. The Committee is authorized to grant Options to Participants.

     (i) Committee Determinations. Subject to the terms of the Plan, the Committee shall
determine:

     (A) the purchase price per Share under each Option, provided, however, that such
price shall be not less than 100% of the fair market value of the Shares underlying
such Option on the date of grant;

     (B) the term of each Option; and

     (C) the time or times at which an Option may be exercised, in whole or in part,
the method or methods by which and the form or forms (including, without limitation,
cash, Shares, other Awards or other property, or any combination thereof, having a fair
market value on the exercise date equal to the relevant exercise price) in which
payment of the exercise price with respect thereto may be made or deemed to have been
made. The terms of any Incentive Stock Option granted under the Plan shall comply in
all respects with the provisions of Section 422 of the Code, or any successor provision
thereto, and any regulations promulgated thereunder.

          Subject to the terms of the Plan, the Committee may impose such conditions or restrictions on
any Option as it deems appropriate.

     (ii) Other Terms. Unless otherwise determined by the Committee:

     (A) A Participant electing to exercise an Option shall give written notice to the
Company, as may be specified by the Committee, of exercise of the Option and the number
of Shares elected for exercise, such notice to be accompanied by such instruments or
documents as may be required by the Committee, and shall tender the purchase price of
the Shares elected for exercise.

     (B) At the time of exercise of an Option payment in full in cash or in Shares
(that have been held by the Participant for at least six months) or any combination
thereof, at the option of the Participant, shall be made for all Shares then being
purchased.

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     (C) The Company shall not be obligated to issue any Shares unless and until:

     (I) if the class of Shares at the time is listed upon any stock exchange, the
Shares to be issued have been listed, or authorized to be added to the list upon
official notice of issuance, upon such exchange, and

     (II) in the opinion of the Company’s counsel there has been compliance with
applicable law in connection with the issuance and delivery of Shares and such
issuance shall have been approved by the Company’s counsel.

     Without limiting the generality of the foregoing, the Company may require from the Participant
such investment representation or such agreement, if any, as the Company’s counsel may consider
necessary in order to comply with the Securities Act of 1933 as then in effect, and may require
that the Participant agree that any sale of the Shares will be made only in such manner as shall be
in accordance with law and that the Participant will notify the Company of any intent to make any
disposition of the Shares whether by sale, gift or otherwise. The Participant shall take any action
reasonably requested by the Company in such connection. A Participant shall have the rights of a
stockholder only as and when Shares have been actually issued to the Participant pursuant to the
Plan.

     (D) If the employment of or consulting arrangement with a Participant terminates
for any reason (including termination by reason of the fact that an entity is no longer
an Affiliate) other than the Participant’s death, the Participant may thereafter
exercise the Option as provided below, except that the Committee may terminate the
unexercised portion of the Option concurrently with or at any time following
termination of the employment or consulting arrangement (including termination of
employment upon a change of status from employee to consultant) if it shall determine
that the Participant has engaged in any activity detrimental to the interests of the
Company or an Affiliate. If such termination is voluntary on the part of the
Participant (other than retirement on or after normal retirement date), the Option may
be exercised only within thirty days after the date of termination. If such termination
is involuntary on the part of the Participant, the Option may be exercised within three
months after the date of termination. If an employee retires on or after normal
retirement date, Options shall continue to become exercisable and shall remain
exercisable in accordance with the terms and the provisions of this Plan. If the
employment or consulting relationship is terminated by reason of permanent and total
disability, all unexercisable installments of the option shall thereupon become
exercisable and shall remain exercisable for the remainder of the Option term, subject
to the provisions of Section 6(a)(ii)(E). Unless the Committee determines otherwise, a
change in a Participant’s status from employee to consultant shall be considered a
voluntary termination of employment as to any Option granted on or after September 13,
2000 (other than restoration Options granted with respect to Options granted prior to
September 13, 2000). For purposes of this Paragraph (D), a Participant’s employment or
consulting arrangement shall not be considered terminated (i) in the case of approved
sick leave or other bona fide leave of absence (not to exceed one year), (ii) in the
case of a transfer of employment or the consulting arrangement among the Company and
Affiliates, or (iii) by virtue of a change of status from employee to consultant or
from consultant to employee, except as provided above.

     (E) If a Participant dies, all unexercisable installments of the Option shall
thereupon become exercisable and, at any time or times within one year after death such
Option may be exercised, as to all or any unexercised portion of the Option. The
Company may decline to deliver Shares to a designated beneficiary until it receives
indemnity against claims of third parties satisfactory to the Company. Except as so
exercised such Option shall expire at the end of such period.

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     (F) Except as provided above, an Option may be exercised only if and to the extent
such Option was exercisable at the date of termination of employment or the consulting
arrangement, and an Option may not be exercised at a time when the Option would not
have been exercisable had the employment or consulting arrangement continued.

     (G) The provisions of this clause (ii), as amended, shall apply to all outstanding
Options, regardless of the grant date.

     (iii) Restoration Options. The Committee may grant a Participant the right to receive
a restoration Option with respect to an Option or any other stock option granted by the
Company. Unless the Committee shall otherwise determine, a restoration Option shall
provide that the underlying option must be exercised while the Participant is an employee
of or, with respect to Options granted prior to September 13, 2000, a consultant to the
Company or an Affiliate and the number of Shares which are subject to a restoration Option
shall not exceed the number of whole Shares exchanged in payment for the exercise of the
original option.

     (b) Stock Appreciation Rights. The Committee is authorized to grant Stock Appreciation
Rights to Participants. Subject to the terms of the Plan, a Stock Appreciation Right granted under
the Plan shall confer on the holder thereof a right to receive, upon exercise thereof, the excess
of (i) the fair market value of one Share on the date of exercise or, if the Committee shall so
determine in the case of any such right other than one related to any Incentive Stock Option, at
any time during a specified period before or after the date of exercise over (ii) the grant price
of the right as specified by the Committee. Subject to the terms of the Plan, the Committee shall
determine the grant price, term, methods of exercise and settlement and any other terms and
conditions of any Stock Appreciation Right and may impose such conditions or restrictions on the
exercise of any Stock Appreciation Right as it may deem appropriate.

     (c) Restricted Stock and Restricted Stock Units.

     (i) Issuance. The Committee is authorized to grant to Participants Awards of
Restricted Stock, which shall consist of Shares, and Restricted Stock Units which shall
give the Participant the right to receive cash, other securities, other Awards or other
property, in each case subject to the termination of the Restricted Period determined by
the Committee.

     (ii) Restrictions. The Restricted Period may differ among Participants and may have
different expiration dates with respect to portions of Shares covered by the same Award.
Subject to the terms of the Plan, Awards of Restricted Stock and Restricted Stock Units
shall have such restrictions as the Committee may impose (including, without limitation,
limitations on the right to vote Restricted Stock or the right to receive any dividend or
other right or property), which restrictions may lapse separately or in combination at such
time or times, in installments or otherwise. Unless the Committee shall otherwise
determine, any Shares or other securities distributed with respect to Restricted Stock or
which a Participant is otherwise entitled to receive by reason of such Shares shall be
subject to the restrictions contained in the applicable Award Agreement. Subject to the
aforementioned restrictions and the provisions of the Plan, Participants shall have all of
the rights of a stockholder with respect to Shares of Restricted Stock.

     (iii) Registration. Restricted Stock granted under the Plan may be evidenced in such
manner as the Committee may deem appropriate, including, without limitation, book-entry
registration or issuance of stock certificates.

     (iv) Forfeiture. Except as otherwise determined by the Committee:

     (A) If the employment of or consulting arrangement with a Participant terminates
for any reason (including termination by reason of the fact that any entity is no
longer an

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Affiliate), other than the Participant’s death or permanent and total
disability or, in the case of an employee, retirement on or after normal retirement
date, all Shares of Restricted Stock theretofore awarded to the Participant which are
still subject to restrictions shall upon such termination of employment or the
consulting relationship be forfeited and transferred back to the Company. Unless the
Committee determines otherwise, a change in a Participant’s status from employee to
consultant shall be considered a termination of employment as to any Award of
Restricted Stock granted on or after September 13, 2000. Notwithstanding the foregoing
or Paragraph (C) below, if a Participant continues to hold an Award of Restricted Stock
following termination of the employment or consulting arrangement (including
retirement), the Shares of Restricted Stock which remain subject to restrictions shall
nonetheless be forfeited and transferred back to the Company if the Committee at any
time thereafter determines that the Participant has engaged in any activity detrimental
to the interests of the Company or an Affiliate. For purposes of this Paragraph (A), a
Participant’s employment or consulting arrangement shall not be considered terminated
(i) in the case of approved sick leave or other bona fide leave of absence (not to
exceed one year), (ii) in the case of a transfer of employment or the consulting
arrangement among the Company and Affiliates, or (iii) by virtue of a change of status
from employee to consultant or from consultant to employee, except as provided above.

     (B) If a Participant ceases to be employed or retained by the Company or an
Affiliate by reason of death or permanent and total disability or if following
retirement a Participant continues to have rights under an Award of Restricted Stock
and thereafter dies, the restrictions contained in the Award shall lapse with respect
to such Restricted Stock.

     (C) If an employee ceases to be employed by the Company or an Affiliate by reason
of retirement on or after normal retirement date, the restrictions contained in the
Award of Restricted Stock shall continue to lapse in the same manner as though
employment had not terminated.

     (D) At the expiration of the Restricted Period as to Shares covered by an Award of
Restricted Stock, the Company shall deliver the Shares as to which the Restricted
Period has expired, as follows:

     (1) if an assignment to a trust has been made in accordance with Section
6(g)(iv)(B)(2)(c), to such trust; or

     (2) if the Restricted Period has expired by reason of death and a beneficiary
has been designated in form approved by the Company, to the beneficiary so
designated; or

     (3) in all other cases, to the Participant or the legal representative of the
Participant’s estate.

     (d) Performance Awards. The Committee is authorized to grant Performance Awards to
Participants. Subject to the terms of the Plan, a Performance Award granted under the Plan (i) may
be denominated or payable in cash, Shares (including, without limitation, Restricted Stock), other
securities, other Awards, or other property and (ii) shall confer on the holder thereof rights
valued as determined by the Committee and payable to, or exercisable by, the holder of the
Performance Award, in whole or in part, upon the achievement of such performance goals during such
performance periods as the Committee shall establish. Subject to the terms of the Plan, the
performance goals to be achieved during any performance period, the length of any performance
period, the amount of any Performance Award granted, the amount of any payment or transfer to be
made pursuant to any Performance Award and other terms and conditions shall be determined by the
Committee.

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     (e) Dividend Equivalents. The Committee is authorized to grant to Participants Awards under
which the holders thereof shall be entitled to receive payments equivalent to dividends or interest
with respect to a number of Shares determined by the Committee, and the Committee may provide that
such amounts (if any) shall be deemed to have been reinvested in additional Shares or otherwise
reinvested. Subject to the terms of the Plan, such Awards may have such terms and conditions as the
Committee shall determine.

     (f) Other Stock-Based Awards. The Committee is authorized to grant to Participants such
other Awards that are denominated or payable in, valued in whole or in part by reference to or
otherwise based on or related to Shares (including, without limitation, securities convertible into
Shares), as are deemed by the Committee to be consistent with the purposes of the Plan, provided,
however, that such grants to persons who are subject to Section 16 must comply with the provisions
of Rule 16b-3. Subject to the terms of the Plan, the Committee shall determine the terms and
conditions of such Awards. Shares or other securities delivered pursuant to a purchase right
granted under this Section 6(f) shall be purchased for such consideration, which may be paid by
such method or methods and in such form or forms, including, without limitation, cash, Shares,
other securities, other Awards or other property or any combination thereof, as the Committee shall
determine.

     (g) General.

     (i) No Cash Consideration for Awards. Awards may be granted for no cash consideration or
for such minimal cash consideration as may be required by applicable law.

     (ii) Awards May Be Granted Separately or Together. Awards may, in the discretion of the
Committee, be granted either alone or in addition to, in tandem with or in substitution for any
other Award or any award granted under any other plan of the Company or any Affiliate. Awards
granted in addition to or in tandem with other Awards or in addition to or in tandem with
awards granted under another plan of the Company or any Affiliate, may be granted either at the
same time as or at a different time from the grant of such other Awards or awards.

     (iii) Forms of Payment Under Awards. Subject to the terms of the Plan and of any
applicable Award Agreement, payments or transfers to be made by the Company or an Affiliate
upon the grant, exercise, or payment of an Award may be made in such form or forms as the
Committee shall determine, including, without limitation, cash, Shares, other securities, other
Awards, or other property, or any combination thereof, and may be made in a single payment or
transfer, in installments, or on a deferred basis, in each case in accordance with rules and
procedures established by the Committee. Such rules and procedures may include, without
limitation, provisions for the payment or crediting of reasonable interest on installment or
deferred payments or the grant or crediting of Dividend Equivalents in respect of installment
or deferred payments.

     (iv) Limits on Transfer of Awards.

     (A) Except as the Committee may otherwise determine, no Award or right under any
Award may be sold, encumbered, pledged, alienated, attached, assigned or transferred in
any manner and any attempt to do any of the foregoing shall be void and unenforceable
against the Company.

     (B) Notwithstanding the provisions of Paragraph (A) above:

     (1) An Option may be transferred:

     (a) to a beneficiary designated by the Participant in writing on a form
approved by the Committee;

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     (b) by will or the applicable laws of descent and distribution to the
personal representative, executor or administrator of the Participant’s estate;
or

     (c) to a revocable grantor trust established by the Participant for the
sole benefit of the Participant during the Participant’s life, and under the
terms of which the Participant is and remains the sole trustee until death or
physical or mental incapacity. Such assignment shall be effected by a written
instrument in form and content satisfactory to the Committee, and the
Participant shall deliver to the Committee a true copy of the agreement or
other document evidencing such trust. If in the judgment of the Committee the
trust to which a Participant may attempt to assign rights under such an Award
does not meet the criteria of a trust to which an assignment is permitted by
the terms hereof, or if after assignment, because of amendment, by force of law
or any other reason such trust no longer meets such criteria, such attempted
assignment shall be void and may be disregarded by the Committee and the
Company and all rights to any such Options shall revert to and remain solely in
the Participant. Notwithstanding a qualified assignment, the Participant, and
not the trust to which rights under such an Option may be as signed, for the
purpose of determining compensation arising by reason of the Option shall
continue to be considered an employee or consultant, as the case may be, of the
Company or an Affiliate, but such trust and the Participant shall be bound by
all of the terms and conditions of the Award Agreement and this Plan. Shares
issued in the name of and delivered to such trust shall be conclusively
considered issuance and delivery to the Participant.

     (2) A Participant may assign or transfer rights under an Award of Restricted Stock
or Restricted Stock Units:

     (a) to a beneficiary designated by the Participant in writing on a form
approved by the Committee;

     (b) by will or the applicable laws of descent and distribution to the personal
representative, executor or administrator of the Participant’s estate; or

     (c) to a revocable grantor trust established by the Participant for the sole
benefit of the Participant during the Participant’s life, and under the terms of
which the Participant is and remains the sole trustee until death or physical or
mental incapacity. Such assignment shall be effected by a written instrument in
form and content satisfactory to the Committee, and the Participant shall deliver
to the Committee a true copy of the agreement or other document evidencing such
trust. If in the judgment of the Committee the trust to which a Participant may
attempt to assign rights under such an Award does not meet the criteria of a trust
to which an assignment is permitted by the terms hereof, or if after assignment,
because of amendment, by force of law or any other reason such trust no longer
meets such criteria, such attempted assignment shall be void and may be
disregarded by the Committee and the Company and all rights to any such Awards
shall revert to and remain solely in the Participant. Notwithstanding a qualified
assignment, the Participant, and not the trust to which rights under such an Award
may be assigned, for the purpose of determining compensation arising by reason of
the Award shall continue to be considered an employee or consultant, as the case
may be, of the Company or an Affiliate, but such trust and the Participant shall
be bound by all of the terms and conditions of the Award Agreement and this Plan.
Shares issued in the name of and delivered to such trust shall be conclusively
considered issuance and delivery to the Participant.

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     (3) The Committee shall not permit directors or officers of the Company for
purposes of Section 16 to transfer or assign Awards except as permitted under Rule
16b-3.

     (C) The Committee, the Company and its officers, agents and employees may rely upon
any beneficiary designation, assignment or other instrument of transfer, copies of trust
agreements and any other documents delivered to them by or on behalf of the Participant
which they believe genuine and any action taken by them in reliance thereon shall be
conclusive and binding upon the Participant, the personal representatives of the
Participant’s estate and all persons asserting a claim based on an Award. The delivery by a
Participant of a beneficiary designation, or an assignment of rights under an Award as
permitted hereunder, shall constitute the Participant’s irrevocable undertaking to hold the
Committee, the Company and its officers, agents and employees harmless against claims,
including any cost or expense incurred in defending against claims, of any person
(including the Participant) which may be asserted or alleged to be based on an Award
subject to a beneficiary designation or an assignment. In addition, the Company may decline
to deliver Shares to a beneficiary until it receives indemnity against claims of third
parties satisfactory to the Company.

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

     (vi) Change in Control.

     (A) Notwithstanding any of the provisions of this Plan or instruments evidencing
Awards granted hereunder, upon a Change in Control of the Company (as hereinafter defined)
the vesting of all rights of Participants under outstanding Awards shall be accelerated and
all restrictions thereon shall terminate in order that Participants may fully realize the
benefits thereunder. Such acceleration shall include, without limitation, the immediate
exercisability in full of all Options and the termination of restrictions on Restricted
Stock and Restricted Stock Units. Further, in addition to the Committee’s authority set
forth in Section 4(c), the Committee, as constituted before such Change in Control, is
authorized, and has sole discretion, as to any Award, either at the time such Award is made
hereunder or any time thereafter, to take any one or more of the following actions: (i)
provide for the purchase of any such Award, upon the Participant’s request, for an amount
of cash equal to the amount that could have been attained upon the exercise of such Award
or realization of the Participant’s rights had such Award been currently exercisable or
payable; (ii) make such adjustment to any such Award then outstanding as the Committee
deems appropriate to reflect such Change in Control; and (iii) cause any such Award then
outstanding to be assumed, or new rights substituted therefor, by the acquiring or
surviving corporation after such Change in Control.

     (B) With respect to any Award granted hereunder prior to December 6, 1995, a Change
in Control shall occur if:

     (1) any “person” or “group of persons” as such terms are used in Sections 13(d)
and 14(d) of the Exchange Act, other than pursuant to a transaction or agreement
previously approved by the Board of Directors of the Company, directly or indirectly
purchases or otherwise becomes the “beneficial owner” (as defined in Rule 13d-3 under
the Exchange Act) or has the right to acquire such beneficial ownership (whether or not
such right is exercisable immediately, with the passage of time, or subject to any condition)
of voting

-10-

 

securities representing 25 percent or more of the combined voting power of
all outstanding voting securities of the Company; or

     (2) during any period of twenty-four consecutive calendar months, the individuals
who at the beginning of such period constitute the Company’s Board of Directors, and
any new directors whose election by such Board or nomination for election by
stockholders was approved by a vote of at least two-thirds of the members of such Board
who were either directors on such Board at the beginning of the period or whose
election or nomination for election as directors was previously so approved, for any
reason cease to constitute at least a majority of the members thereof.

     (C) Notwithstanding the provisions of subparagraph (B), with respect to Awards
granted hereunder on or after December 6, 1995, a Change in Control shall occur only if the
event described in this subparagraph (C) shall have occurred. With respect to any other
Award granted prior thereto, a Change in Control shall occur if any of the events described
in subparagraphs (B) or (C) shall have occurred, unless the holder of any such Award shall
have consented to the application of this subparagraph (C) in lieu of the foregoing
subparagraph (B). A Change in Control for purposes of this subparagraph (C) shall occur
if, during any period of twenty-four consecutive calendar months, the individuals who at
the beginning of such period constitute the Company’s Board of Directors, and any new
directors (other than Excluded Directors, as hereinafter defined), whose election by such
Board or nomination for election by stockholders was approved by a vote of at least
two-thirds of the members of such Board who were either directors on such Board at the
beginning of the period or whose election or nomination for election as directors was
previously so approved, for any reason cease to constitute at least a majority of the
members thereof. For purposes hereof, “Excluded Directors” are directors whose (i)
election by the Board or approval by the Board for stockholder election occurred within one
year of any “person” or “group of persons,” as such terms are used in Sections 13(d) and
14(d) of the Exchange Act, commencing a tender offer for, or becoming the beneficial owner
of, voting securities representing 25 percent or more of the combined voting power of all
outstanding voting securities of the Company, other than pursuant to a tender offer
approved by the Board prior to its commencement or pursuant to stock acquisitions approved
by the Board prior to their representing 25 percent or more of such combined voting power
or (ii) 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 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.

     (D)(1) In the event that subsequent to a Change in Control it is determined that any
payment or distribution by the Company to or for the benefit of a Participant, whether paid
or payable or distributed or distributable pursuant to the terms of this Plan or otherwise,
other than any payment pursuant to this subparagraph (D)(a “Payment”), would be subject to
the excise tax imposed by Section 4999 of the Code or any interest or penalties with
respect to such excise tax (such excise tax, together with any such interest and penalties,
are hereinafter collectively referred to as the “Excise Tax”), then such Participant shall
be entitled to receive from the Company, within 15 days following the determination
described in (2) below, an additional payment (“Excise Tax Adjustment Payment”) in an
amount such that after payment by such Participant of all applicable Federal, state and
local taxes (computed at the maximum marginal rates and including any interest or penalties
imposed with respect to such taxes), including any Excise Tax, imposed upon the Excise Tax
Adjustment Payment, such Participant retains an amount of the Excise Tax Adjustment Payment
equal to the Excise Tax imposed upon the Payments.

-11-

 

          (2) All determinations required to be made under this Section 6(g)(vi)(D), including
whether an Excise Tax Adjustment Payment is required and the amount of such Excise Tax
Adjustment Payment, shall be made by PricewaterhouseCoopers LLP, or such other national
accounting firm as the Company, or, subsequent to a Change in Control, the Company and the
Participant jointly, may designate, for purposes of the Excise Tax, which shall provide
detailed supporting calculations to the Company and the affected Participant within 15
business days of the date of the applicable Payment. Except as hereinafter provided, any
determination by PricewaterhouseCoopers LLP, or such other national accounting firm, shall
be binding upon the Company and the Participant. As a result of the uncertainty in the
application of Section 4999 of the Code that may exist at the time of the initial
determination hereunder, it is possible that (x) certain Excise Tax Adjustment Payments
will not have been made by the Company which should have been made (an “Underpayment”), or
(y) certain Excise Tax Adjustment Payments will have been made which should not have been
made (an “Overpayment”), consistent with the calculations required to be made hereunder.
In the event of an Underpayment, such Underpayment shall be promptly paid by the Company to
or for the benefit of the affected Participant. In the event that the Participant
discovers that an Overpayment shall have occurred, the amount thereof shall be promptly
repaid to the Company.

          (3) This Section 6(g)(vi)(D) shall not apply to any Award (x) that was granted prior
to February 17, 1993 and (y) the holder of which is an executive officer of the Company, as
determined under the Exchange Act.

     (vii) Cash Settlement. Notwithstanding any provision of this Plan or of any Award Agreement
to the contrary, any Award outstanding hereunder may at any time be cancelled in the Committee’s
sole discretion upon payment of the value of such Award to the holder thereof in cash or in another
Award hereunder, such value to be determined by the Committee in its sole discretion.

     (viii) Replacement Options. No outstanding option may be cancelled and replaced with an
option having a lower exercise price.

Section 7. Amendment and Termination

     Except to the extent prohibited by applicable law and unless otherwise expressly provided in
an Award Agreement or in the Plan:

     (a) Amendments to the Plan. The Board of Directors of the Company may amend the Plan and the
Board of Directors or the Committee may amend any outstanding Award; provided, however, that (i)
no Plan amendment shall be effective until approved by stockholders of the Company insofar as
stockholder approval thereof is required in order for the Plan to continue to satisfy the
conditions of Rule 16b-3, and (ii) without the consent of affected Participants no amendment of the
Plan or of any Award may impair the rights of Participants under outstanding Awards, and (iii) no
Option may be amended to reduce its initial exercise price other than in connection with an event
described in Section 4(c) hereof.

     (b) Waivers. The Committee may waive any conditions or rights under any Award theretofore
granted, prospectively or retroactively, without the consent of any Participant.

     (c) Adjustments of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. The
Committee shall make adjustments in the terms and conditions of, and the criteria included in,
Awards in recognition of unusual or nonrecurring events (including, without limitation, the events
described in Section 4(c) hereof) affecting the Company, any Affiliate, or the financial statements
of the Company or any Affiliate, or of changes in applicable laws, regulations, or accounting
principles, whenever the Committee determines that such adjustments are appropriate in order to
prevent dilution or enlargement of the benefits or potential benefits to be made available under
the Plan.

-12-

 

     (d) Correction of Defects, Omissions, and Inconsistencies. The Committee may correct any
defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner
and to the extent it shall deem desirable to effectuate the Plan.

Section 8. General Provisions

     (a) No Rights to Awards. No Participant or other person shall have any claim to be granted
any Award under the Plan, and there is no obligation for uniformity of treatment of Participants or
holders or beneficiaries of Awards under the Plan. The terms and conditions of Awards of the same
type and the determination of the Committee to grant a waiver or modification of any Award and the
terms and conditions thereof need not be the same with respect to each Participant.

     (b) Withholding. The Company or any Affiliate shall be authorized to withhold from any Award
granted or any payment due or transfer made under any Award or under the Plan the amount (in cash,
Shares, other securities, other Awards or other property) of withholding taxes due in respect of an
Award, its exercise or any payment or transfer under such Award or under the Plan and to take such
other action as may be necessary in the opinion of the Company or Affiliate to satisfy all
obligations for the payment of such taxes.

     (c) No Limit on Other Compensation Arrangements. Nothing contained in the Plan shall prevent
the Company or any Affiliate from adopting or continuing in effect other or additional compensation
arrangements, including the grant of options and other stock-based awards, and such arrangements
may be either generally applicable or applicable only in specific cases.

     (d) No Right to Employment. The grant of an Award shall not be construed as giving a
Participant the right to be retained in the employ of the Company or any Affiliate. Further, the
Company or an Affiliate may at any time dismiss a Participant from employment, free from any
liability, or any claim under the Plan, unless otherwise expressly provided in the Plan or in any
Award Agreement or other written agreement with the Participant.

     (e) Governing Law. The validity, construction and effect of the Plan and any rules and
regulations relating to the Plan shall be determined in accordance with the laws of the State of
Michigan and applicable Federal law.

     (f) Severability. If any provision of the Plan or any Award is or becomes or is deemed to be
invalid, illegal or unenforceable in any jurisdiction or as to any person or Award, 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 so construed
or deemed amended without, in the determination of the Committee, materially altering the intent of
the Plan or the Award, such provision shall be stricken as to such jurisdiction, person or Award,
and the remainder of the Plan and any such Award shall remain in full force and effect.

     (g) No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to
create a trust or separate fund of any kind or a fiduciary relationship between the Company or any
Affiliate and a Participant or any other person. To the extent that any person acquires a right to
receive payments from the Company or any Affiliate pursuant to an Award, such right shall be no
greater than the right of any unsecured general creditor of the Company or any Affiliate.

     (h) No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the
Plan or any Award, and the Committee shall determine whether cash, other securities, or other
property shall be paid or transferred in lieu of any fractional Shares, or whether such fractional
Shares or any rights thereto shall be cancelled, terminated or otherwise eliminated.

-13-

 

     (i) Headings. Headings are given to the Sections and subsections of the Plan solely as a
convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of the Plan or any provision thereof.

Section 9. Term

     The Plan shall be effective as of the date of its approval by the Company’s stockholders and
no Awards shall be made under the Plan after May 17, 2010.

-14-exv10wb

 

Exhibit
10.b

MASCO CORPORATION

2005 LONG TERM STOCK INCENTIVE PLAN

(Amended and Restated October 26, 2006)

Section 1. Purposes.

     The
purposes of the 2005 Long Term Stock Incentive Plan (the “Plan”) are to encourage selected
employees of and consultants to Masco Corporation (the
“Company”) and its Affiliates to acquire a
proprietary interest in the Company in order to create an increased incentive to contribute to the
Company’s future success and prosperity, and enhance the ability of the Company and its Affiliates
to attract and retain exceptionally qualified individuals upon whom the sustained progress, growth
and profitability of the Company depend, thus enhancing the value of the Company for the benefit of
its stockholders.

Section 2. Definitions.

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

     (a) “Affiliate” shall mean any entity in which the Company’s direct or indirect equity
interest is at least twenty percent, and any other entity in which the Company has a significant
direct or indirect equity interest, whether more or less than twenty percent, as determined by
the Committee.

     (b) “Award” shall mean any Option, Stock Appreciation Right, Restricted Stock, Restricted
Stock Unit, Performance Award, or Dividend Equivalent granted under the Plan.

     (c) “Award Agreement” shall mean any agreement, contract or other instrument or document
evidencing any Award granted under the Plan.

     (d) “Board” shall mean the Board of Directors of the Company.

     (e) “Change in Control” shall mean at any time during a period of twenty-four consecutive
calendar months, the individuals who at the beginning of such period constitute the Company’s
Board, and any new directors (other than Excluded Directors, as hereinafter defined), whose
election by such Board or nomination for election by stockholders was approved by a vote of at
least two-thirds of the members of such Board who were either directors on such Board at the
beginning of the period or whose election or nomination for election as directors was previously
so approved, for any reason ceasing to constitute at least a majority of the members thereof. For
purposes hereof, “Excluded Directors” are directors whose (i) election by the Board or approval
by the Board for stockholder election occurred within one year after any “person” or “group of
persons,” as such terms are used in Sections 13(d) and 14(d) of the Exchange Act, commencing a
tender offer for, or becoming the beneficial owner of, voting securities representing 25 percent
or more of the combined voting power of all outstanding voting securities of the Company, other
than pursuant to a tender offer approved by the Board prior to its commencement or pursuant to
stock acquisitions approved by the Board prior to their representing 25 percent or more of such
combined voting power or (ii) 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 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.

     (f) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

     (g) “Committee” shall mean a committee of the Company’s directors designated by the Board to
administer the Plan and composed of not less than two directors, each of whom is a “non-employee
director,” an “independent director” and an “outside director,” within the meaning of and to the
extent required respectively by Rule 16b-3, the applicable rules of the NYSE and Section 162(m)
of the Code, and any regulations issued thereunder.

     (h) “Dividend Equivalent” shall mean any right granted under Section 6(g) of the Plan.

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

 

 

     (j) “Executive Group” shall mean every person who the Committee believes may be both (i) a
“covered employee” as defined in Section 162(m) of the Code as of the end of the taxable year in
which the Company expects to take a deduction of the Award, and (ii) the recipient of
compensation of more than $1,000,000 (as such amount appearing in Section 162(m) of the Code may
be adjusted by any subsequent legislation) for that taxable year.

     (k) “Incentive Stock Option” shall mean an Option granted under Section 6(a) of the Plan
that is intended to meet the requirements of Section 422 of the Code, or any successor provision
thereto.

     (l) “Non-Qualified Stock Option” shall mean an Option granted under Section 6(a) of the Plan
that is not intended to be an Incentive Stock Option.

     (m) “NYSE” shall mean the New York Stock Exchange.

     (n) “Option” shall mean an Incentive Stock Option or a Non-Qualified Stock Option.

     (o) “Participant” shall mean an employee of or consultant to the Company or any Affiliate or
a director of the Company designated to be granted an Award under the Plan or, for the purpose of
granting Substitute Awards, a holder of options or other equity based awards relating to the
shares of a company acquired by the Company or with which the Company combines.

     (p) “Performance Award” shall mean any right granted under Section 6(e) of the Plan.

     (q) “Prior Plan” shall mean the Company’s 1991 Long Term Stock Incentive Plan.

     (r) “Restricted Period” shall mean the period of time during which Awards of Restricted
Stock or Restricted Stock Units are subject to restrictions.

     (s) “Restricted Stock” shall mean any Share granted under Section 6(d) of the Plan.

     (t) “Restricted Stock Unit” shall mean any right granted under Section 6(d) of the Plan that
is denominated in Shares.

     (u) “Rule 16b-3” shall mean Rule 16b-3 promulgated by the Securities and Exchange Commission
under the Exchange Act, or any successor rule or regulation.

     (v) “Section 16” shall mean Section 16 of the Exchange Act, the rules and regulations
promulgated by the Securities and Exchange Commission thereunder, or any successor provision,
rule or regulation.

     (w) “Shares” shall mean the Company’s common stock, par value $1.00 per share, and such
other securities or property as may become the subject of Awards, or become subject to Awards,
pursuant to an adjustment made under Section 4(c) of the Plan.

     (x) “Stock Appreciation Right” shall mean any right granted under Section 6(c) of the Plan.

     (y) “Substitute Awards” shall mean Awards granted in assumption of, or in substitution for,
outstanding awards previously granted by a company acquired by a Company or with which the
Company combines.

Section 3. Administration.

     The Committee shall administer the Plan, and subject to the terms of the Plan and applicable
law, the Committee’s authority shall include without limitation the power to:

     (i) designate Participants;

     (ii) determine the types of Awards to be granted;

     (iii) determine the number of Shares to be covered by Awards and any payments, rights or
other matters to be calculated in connection therewith;

2

 

     (iv) determine the terms and conditions of Awards and amend the terms and conditions of
outstanding Awards;

     (v) determine how, whether, to what extent, and under what circumstances Awards may be
settled or exercised in cash, Shares, other securities, other Awards or other property, or
canceled, forfeited or suspended;

     (vi) determine how, whether, to what extent, and under what circumstances cash, Shares,
other securities, other Awards, other property and other amounts payable with respect to an Award
shall be deferred either automatically or at the election of the holder thereof or of the
Committee;

     (vii) determine the methods or procedures for establishing the fair market value of any
property (including, without limitation, any Shares or other securities) transferred, exchanged,
given or received with respect to the Plan or any Award;

     (viii) prescribe and amend the forms of Award Agreements and other instruments required
under or advisable with respect to the Plan;

     (ix) designate Options granted to key employees of the Company or its subsidiaries as
Incentive Stock Options;

     (x) interpret and administer the Plan, Award Agreements, Awards and any contract, document,
instrument or agreement relating thereto;

     (xi) establish, amend, suspend or waive such rules and regulations and appoint such agents
as it shall deem appropriate for the administration of the Plan;

     (xii) decide all questions and settle all controversies and disputes which may arise in
connection with the Plan, Award Agreements and Awards;

     (xiii) delegate to a committee of at least two directors of the Company the authority to
designate Participants and grant Awards, and to amend Awards granted to Participants;

     (xiv) delegate to one or more officers or managers of the Company, or a committee of such
officers and managers, the authority, subject to such terms and limitations as the Committee
shall determine, to cancel, modify, waive rights with respect to, alter, discontinue, suspend or
terminate Awards held by employees who are not officers or directors of the Company for purposes
of Section 16 of the Exchange Act; provided, however, that any delegation to management shall
conform with the requirements of the NYSE applicable to the Company and Delaware corporate law;
and

     (xv) make any other determination and take any other action that the Committee deems
necessary or desirable for the interpretation, application and administration of the Plan, Award
Agreements and Awards.

     All designations, determinations, interpretations and other decisions under or with respect to
the Plan, Award Agreements or any Award shall be within the sole discretion of the Committee, may
be made at any time and shall be final, conclusive and binding upon all persons, including the
Company, Affiliates, Participants, beneficiaries of Awards and stockholders of the Company.

Section 4. Shares Available for Awards.

          (a)
Shares Available. Subject to adjustment as provided in Section 4(c):

     The maximum number of Shares available for issuance in respect of Awards made under the Plan
shall be 25,000,000 Shares, provided, however, that if for any reason any Award under the Plan or
under the Prior Plan is cancelled, forfeited or expires without the delivery of Shares, the
number of Shares available for issuance in respect of Awards under the Plan shall be increased by
the number of Shares that were so cancelled, forfeited or subject to expiration. The maximum
number of Shares that may be issued and delivered upon vesting of Restricted Stock or Restricted
Stock Units is 9,000,000. Subject to the foregoing, Shares may be made available from the
authorized but unissued Shares of the Company or from Shares reacquired by the Company.

     (b) Individual Stock-Based Awards. Subject to adjustment as provided in Section 4(c), no
Participant may receive Options or Stock Appreciation Rights under the Plan in any calendar year
that relate to more than 4,000,000 Shares in the aggregate; provided, however, that such number
may be increased with respect to any Participant by any Shares available for grant to such
Participant in accordance with this Section 4(b)in any prior years that were not granted in such
prior year. No provision of this Section 4(b) shall be construed as limiting the amount of any
other stock-based or cash-based award which may be granted to any Participant.

3

 

     (c) Adjustments. Upon the occurrence of any dividend or other distribution (whether in the
form of cash, Shares, other securities or other property), change in the capital or shares of
capital stock, recapitalization, stock split, reverse stock split, reorganization, merger,
consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other
securities of the Company, issuance of warrants or other rights to purchase Shares or other
securities of the Company or extraordinary transaction or event which affects the Shares, then
the Committee shall make such adjustment, if any, in such manner as it deems appropriate to
prevent dilution or enlargement of the benefits or potential benefits intended to be made
available under the Plan, in (i) the number and type of Shares (or other securities or property)
which thereafter may be made the subject of Awards both to any individual and to all
Participants, (ii) outstanding Awards including without limitation the number and type of Shares
(or other securities or property) subject thereto, and (iii) the grant, purchase or exercise
price with respect to outstanding Awards and, if deemed appropriate, make provision for cash
payments to the holders of outstanding Awards; provided, however, that the number of Shares
subject to any Award denominated in Shares shall always be a whole number.

     (d) Substitute Awards. Shares underlying Substitute Awards shall not reduce the number of
shares remaining available for issuance under the Plan for any purpose.

Section 5. Eligibility.

     Any employee of or consultant to the Company or any Affiliate, or any director of the Company,
is eligible to be designated a Participant.

Section 6. Awards.

     (a) Options. (i) The Committee is authorized to grant Options to Participants with the
following terms and conditions and with such other terms and conditions, in either case not
inconsistent with the provisions of the Plan, as the Committee shall determine:

     (A) the purchase price per Share under each Option, provided, however, that such price
shall be not less than 100% of the fair market value of the Shares underlying such Option on
the date of grant (except in the case of Substitute Awards);

     (B) the term of each Option (not to exceed ten years);

     (C) the time or times at which an Option may be exercised, in whole or in part, the
method or methods by which and the form or forms (including, without limitation, cash, Shares,
other Awards or other property, or any combination thereof, having a fair market value on the
exercise date equal to the relevant exercise price) in which payment of the exercise price
with respect thereto may be made or deemed to have been made; and

     (D) The terms of any Incentive Stock Option granted under the Plan shall comply in all
respects with the provisions of Section 422 of the Code, or any successor provision thereto,
and any regulations promulgated thereunder. The maximum number of Shares that may be awarded
as Incentive Stock Options is 16,000,000.

     (ii) Other Terms. Notwithstanding the following terms, the Committee may impose other
terms that may be more or less favorable to the Company as it deems fit. Unless the
Committee shall impose such other terms, the following conditions shall apply:

     (A) Exercise. A Participant electing to exercise an Option shall give written notice to
the Company, as may be specified by the Committee, of exercise of the Option and the number of
Shares elected for exercise, such notice to be accompanied by such instruments or documents as
may be required by the Committee, and shall tender the purchase price of the Shares elected
for exercise.

     (B) Payment. At the time of exercise of an Option payment in full in cash or in Shares or
any combination thereof, at the option of the Participant, shall be made for all Shares then
being purchased.

     (C) Issuance. The Company shall not be obligated to issue any Shares unless and until:

     (1) if the class of Shares at the time is listed upon any stock exchange, the Shares to
be issued have been listed, or authorized to be added to the list upon official notice of
issuance, upon such exchange, and

4

 

     (2) in the opinion of the Company’s counsel there has been compliance with applicable
law in connection with the issuance and delivery of Shares and such issuance shall have been
approved by the Company’s counsel.

     Without limiting the generality of the foregoing, the Company may require from the Participant
such investment representation or such agreement, if any, as the Company’s counsel may consider
necessary in order to comply with the Securities Act of 1933 as then in effect, and may require
that the Participant agree that any sale of the Shares will be made only in such manner as shall be
in accordance with law and that the Participant will notify the Company of any intent to make any
disposition of the Shares whether by sale, gift or otherwise. The Participant shall take any action
reasonably requested by the Company in such connection. A Participant shall have the rights of a
stockholder only as and when Shares have been actually issued to the Participant pursuant to the
Plan.

     (D) Minimum Vesting. Options may not become fully exercisable prior to the third
anniversary of the date of grant, except as provided in Section 6(a)(ii)(E) and Section 7(f)
below.

     (E) Termination of Employment; Death. If the employment of a Participant terminates for
any reason or if a Participant dies (whether before or after the normal retirement date),
Options shall be or become exercisable only as provided in (1) through (5) below:

     (1) If such termination is voluntary on the part of the Participant, such Option may be
exercised only if and to the extent such Option was exercisable at the date of termination
and only within thirty days after the date of termination. Except as so exercised such
Option shall expire at the end of such period.

     (2) If such termination is involuntary on the part of the Participant, such Option may
be exercised only if and to the extent such Option was exercisable at the date of
termination and only within three months after the date of termination. Except as so
exercised such Option shall expire at the end of such period.

     (3) If an employee retires on or after the normal retirement date, such Option shall
continue to be and become exercisable in accordance with its terms and the provisions of
this Plan.

     (4) If a Participant’s employment is terminated by reason of permanent and total
disability, all unexercisable installments of such Option shall thereupon become
exercisable and shall remain exercisable for the remainder of the Option term.

     (5) If a Participant dies, all unexercisable installments of such Option shall
thereupon become exercisable and, at any time or times within one year after such death,
the Option may be exercised, as to all or any unexercised portion of the Option. The
Company may decline to deliver Shares to a designated beneficiary until it receives
indemnity against claims of third parties satisfactory to the Company. Except as so
exercised such Option shall expire at the end of such period.

     (b) Restoration Options. The Committee may grant a Participant a restoration Option under
this Plan with respect to an option granted by the Company under the Prior Plan, or with respect
to a restoration option resulting from such an option, when the Participant pays the exercise
price by delivering Shares or by attesting to the ownership of such Shares. The restoration
option is equal to the number of Shares delivered or attested to by the Participant, and the
exercise price shall not be less than 100 percent of the fair market value of the Shares on the
date the restoration option is granted. A restoration option otherwise will have the same terms
as the original option. Unless the Committee shall otherwise determine, (i) no restoration option
shall be granted unless the recipient is an active employee at the time of grant and (ii) the
number of Shares which are subject to a restoration Option shall not exceed the number of whole
Shares exchanged in payment for the exercise of the underlying Option. No restoration Options
shall otherwise be granted under this Plan.

     (c) Stock Appreciation Rights. The Committee is authorized to grant Stock Appreciation
Rights to Participants. Subject to the terms of the Plan, a Stock Appreciation Right granted
under the Plan shall confer on the holder thereof a right to receive, upon exercise thereof, the
excess of (i) the fair market value of one Share on the date of exercise or, if the Committee
shall so determine in the case of any such right other than one related to any Incentive Stock
Option, at any time during a specified period before or after the date of exercise over (ii) the
fair market value on the date of grant. Subject to the terms of the Plan, the Committee shall
determine the grant price, term, methods of exercise and settlement and any other terms and
conditions of any Stock Appreciation Right and may impose such conditions or restrictions on the
exercise of any Stock Appreciation Right as it may deem appropriate.

5

 

     (d) Restricted Stock and Restricted Stock Units.

     (i) Issuance. The Committee is authorized to grant to Participants Awards of Restricted
Stock, which shall consist of Shares, and Restricted Stock Units which shall give the
Participant the right to receive cash, other securities, other Awards or other property, in
each case subject to the termination of the Restricted Period determined by the Committee.
Notwithstanding the following terms, the Committee may impose other terms that may be more or
less favorable to the Company as it deems fit. In the absence of any such differing
provisions, Awards of Restricted Stock and Restricted Stock Units shall have the provisions
described below.

     (ii) Restrictions. The Restricted Period may differ among Participants and may have
different expiration dates with respect to portions of Shares covered by the same Award.
Subject to the terms of the Plan, Awards of Restricted Stock and Restricted Stock Units shall
have such restrictions as the Committee may impose (including, without limitation, limitations
on the right to vote Restricted Stock or the right to receive any dividend or other right or
property), which restrictions may lapse separately or in combination at such time or times, in
installments or otherwise (including the achievement of performance measures as set forth in
Section 6(e) hereof), as the Committee may deem appropriate. Any Shares or other securities
distributed with respect to Restricted Stock or which a Participant is otherwise entitled to
receive by reason of such Shares shall be subject to the restrictions contained in the
applicable Award Agreement. Restricted Stock Awards and Restricted Stock Units may not fully
vest prior to the third anniversary of the date of grant, except as provided in Sections
6(d)(iv)(B) and 7(f) below. Subject to the aforementioned restrictions and the provisions of
the Plan, a Participant shall have all of the rights of a stockholder with respect to
Restricted Stock.

     (iii) Registration. Restricted Stock granted under the Plan may be evidenced in such
manner as the Committee may deem appropriate, including, without limitation, book-entry
registration or issuance of stock certificates.

     (iv) Termination; Death. If a Participant’s employment terminates for any reason, all
Shares of Restricted Stock or Restricted Stock Units theretofore awarded to the Participant
which are still subject to restrictions shall upon such termination be forfeited and
transferred back to the Company, except as provided in clauses (A) and (B) below.

     (A) If an employee ceases to be employed by reason of retirement on or after normal
retirement date, the restrictions contained in the Award of Restricted Stock or the
Restricted Stock Unit shall continue to lapse in the same manner as though employment had
not terminated, subject to clause (B) below and Sections 6(d)(v) and 7(f).

     (B) If a Participant ceases to be employed by reason of permanent and total disability
or if a Participant dies, whether before or after the normal retirement date, the
restrictions contained in such Participant’s Award of Restricted Stock or Restricted Stock
Unit shall lapse.

     (C) At the expiration of the Restricted Period, the Company shall deliver Shares in the
case of an Award of Restricted Stock or Shares, cash, securities or other property, in the
case of a Restricted Stock Unit, as follows:

     (1) if an assignment to a trust has been made in accordance with Section 7(d)(ii)(B),
to such trust; or

     (2) if the Restricted Period has expired by reason of death and a beneficiary has
been designated in form approved by the Company, to the beneficiary so designated; or

     (3) in all other cases, to the Participant or the legal representative of the
Participant’s estate.

     (v) Acceleration. New Awards granted to a Participant in or after the calendar year in
which such Participant attains age 65 will vest in five equal annual installments or such
earlier vesting as may be specified in the Award Agreement. With respect to an Award granted
to a Participant prior to the calendar year in which the Participant attains age 65, if in the
calendar year in which the Participant attains age 65 the Restricted Period then remaining
thereunder is longer than five years, the Restricted Period shall be shortened so that
commencing in the calendar year that a Participant attains age 66, the restrictions contained
in the Award shall lapse in equal annual installments such that the Participant shall be fully
vested not later than the end of the calendar year in which the Participant attains age 70.

6

 

     (e) Performance Awards.

     (i) The Committee is hereby authorized to grant Performance Awards to Participants.

     (ii) Subject to the terms of the Plan, a Performance Award granted under the Plan (A) may
be denominated or payable in cash, Shares (including, without limitation, Restricted Stock or
Restricted Stock Units), other securities or other Awards, and (B) shall confer on the holder
thereof rights valued as determined by the Committee and payable to, or exercisable by, the
holder of the Performance Award, in whole or in part, upon the achievement of such performance
goals during such performance periods as the Committee shall establish. Subject to the terms
of the Plan, the performance goals to be achieved during any performance period, the length of
any performance period, the amount of any Performance Award granted and the amount of any
payment or transfer to be made pursuant to any Performance Award shall be determined by the
Committee. Unless the Committee determines otherwise, the performance period relating to any
Performance Award shall be at least one calendar year commencing January 1 and ending December
31 (except in circumstances in connection with a Change in Control, in which event the
performance period may be shorter than one year).

     (iii) Every Performance Award to a member of the Executive Group shall, if the Committee
intends that such Award should constitute “qualified performance-based compensation” for
purposes of Section 162(m) of the Code, include a pre-established formula, such that payment,
retention or vesting of the Award is subject to the achievement during a performance period or
periods, as determined by the Committee, of a level or levels, as determined by the Committee,
of one or more performance measures with respect to the Company or any of its Affiliates,
including without limitation the following: (A) net income, (B) return on assets, (C)
revenues, (D) total shareholder return, (E) earnings per share; (F) return on invested
capital, or (G) cash flow; each as determined in accordance with generally accepted accounting
principles, where applicable, as consistently applied by the Company. The following shall be
excluded in determining whether any performance criterion has been attained: losses resulting
from discontinued operations, extraordinary losses (in accordance with generally accepted
accounting principles, as currently in effect), the cumulative effect of changes in accounting
principles and other unusual, non-recurring items of loss that are separately identified and
quantified in the Company’s audited financial statements. Performance measures may vary from
Performance Award to Performance Award and from Participant to Participant and may be
established on a stand-alone basis, in tandem or in the alternative. For any Performance
Award, the maximum amount that may be delivered or earned in settlement of all such Awards
granted in any year shall be (x) if and to the extent that such Awards are denominated in
Shares, 2,000,000 Shares (subject to adjustment as provided in Section 4(c)) and (y) if and to
the extent that such Awards are denominated in cash, $10,000,000. Notwithstanding any
provision of the Plan to the contrary, the Committee shall not be authorized to increase the
amount payable under any Award to which this Section 6(e)(iii) applies upon attainment of such
pre-established formula.

     (f) Dividend Equivalents. The Committee is authorized to grant to Participants Awards under
which the holders thereof shall be entitled to receive payments equivalent to dividends or
interest with respect to a number of Shares determined by the Committee, and the Committee may
provide that such amounts (if any) shall be deemed to have been reinvested in additional Shares
or otherwise reinvested. Subject to the terms of the Plan, such Awards may have such terms and
conditions as the Committee shall determine.

     (g) Termination of Employment. Except as otherwise provided in the Plan or determined by the
Committee,

     (i) Awards granted to, or otherwise held by, employees will terminate, expire and be
forfeited upon termination of employment, which shall include a change in status from employee
to consultant and termination by reason of the fact that an entity is no longer an Affiliate,
and

     (ii) a Participant’s employment shall not be considered to be terminated (A) in the case
of approved sick leave or other approved leave of absence (not to exceed one year or such
other period as the Committee may determine), or (B) in the case of a transfer among the
Company and its Affiliates.

     (h) Termination of Awards. Notwithstanding any of the provisions of this Plan or
instruments evidencing Awards granted hereunder, other than the provisions of Section 7(f), the
Committee may terminate any Award (including the unexercised portion of any Option and any Award
of Restricted Stock or Restricted Stock Units which remains subject to restrictions)
concurrently with or at any time following termination of employment regardless of the reason
for such termination of employment if the Committee shall determine that the Participant has
engaged in any activity detrimental to the interests of the Company or an Affiliate.

7

 

Section 7. General.

     (a) No Cash Consideration for Awards. Awards may be granted for no cash consideration or
for such minimal cash consideration as may be required by applicable law.

     (b) Awards May Be Granted Separately or Together. Awards may, in the discretion of the
Committee, be granted either alone or in addition to, in tandem with or in substitution for any
other Award or any award granted under any other plan of the Company or any Affiliate. Awards
granted in addition to or in tandem with other Awards or in addition to or in tandem with awards
granted under another plan of the Company or an Affiliate, may be granted either at the same
time as or at a different time from the grant of such other Awards or awards.

     (c) Forms of Payment Under Awards. Subject to the terms of the Plan and of any applicable
Award Agreement, payments or transfers to be made by the Company or an Affiliate upon the grant,
exercise, or payment of an Award may be made in such form or forms as the Committee shall
determine, including, without limitation, cash, Shares, other securities, other Awards, or other
property, or any combination thereof, and may be made in a single payment or transfer, in
installments, or on a deferred basis, in each case in accordance with rules and procedures
established by the Committee. Such rules and procedures may include, without limitation,
provisions for the payment or crediting of reasonable interest on installment or deferred
payments or the grant or crediting of Dividend Equivalents in respect of installment or deferred
payments.

     (d) Limits on Transfer of Awards. Awards can not be transferred, except the Committee is
hereby authorized to permit the transfer of Awards with the following terms and conditions and
with such additional terms and conditions, in either case not inconsistent with the provisions
of the Plan, as the Committee shall determine:

     (i) No Award or right under any Award may be sold, encumbered, pledged, alienated,
attached, assigned or transferred in any manner and any attempt to do any of the foregoing
shall be void and unenforceable against the Company.

     (ii) Notwithstanding the provisions of Section 7(d)(i) above:

     (A) An Option may be transferred:

     (1) to a beneficiary designated by the Participant in writing on a form approved
by the Committee;

     (2) by will or the applicable laws of descent and distribution to the personal
representative, executor or administrator of the Participant’s estate; or

     (3) to a revocable grantor trust established by the Participant for the sole benefit
of the Participant during the Participant’s life, and under the terms of which the
Participant is and remains the sole trustee until death or physical or mental incapacity.
Such assignment shall be effected by a written instrument in form and content
satisfactory to the Committee, and the Participant shall deliver to the Committee a true
copy of the agreement or other document evidencing such trust. If in the judgment of the
Committee the trust to which a Participant may attempt to assign rights under such an
Award does not meet the criteria of a trust to which an assignment is permitted by the
terms hereof, or if after assignment, because of amendment, by force of law or any other
reason such trust no longer meets such criteria, such attempted assignment shall be void
and may be disregarded by the Committee and the Company and all rights to any such
Options shall revert to and remain solely with the Participant. Notwithstanding a
qualified assignment, for the purpose of determining compensation arising by reason of
the Option, the Participant, and not the trust to which rights under such an Option may
be assigned, shall continue to be considered an employee or consultant, as the case may
be, of the Company or an Affiliate, but such trust and the Participant shall be bound by
all of the terms and conditions of the Award Agreement and this Plan. Shares issued in
the name of and delivered to such trust shall be conclusively considered issuance and
delivery to the Participant.

     (B) A Participant may assign or transfer rights under an Award of Restricted Stock or
Restricted Stock Units:

     (1) to a beneficiary designated by the Participant in writing on a form approved by
the Committee;

     (2) by will or the applicable laws of descent and distribution to the personal
representative, executor or administrator of the Participant’s estate; or

8

 

     (3) to a revocable grantor trust established by the Participant for the sole benefit
of the Participant during the Participant’s life, and under the terms of which the
Participant is and remains the sole trustee until death or physical or mental incapacity.
Such assignment shall be effected by a written instrument in form and content
satisfactory to the Committee, and the Participant shall deliver to the Committee a true
copy of the agreement or other document evidencing such trust. If in the judgment of the
Committee the trust to which a Participant may attempt to assign rights under such an
Award does not meet the criteria of a trust to which an assignment is permitted by the
terms hereof, or if after assignment, because of amendment, by force of law or any other
reason such trust no longer meets such criteria, such attempted assignment shall be void
and may be disregarded by the Committee and the Company and all rights to any such Awards
shall revert to and remain solely with the Participant. Notwithstanding a qualified
assignment, for the purpose of determining compensation arising by reason of the Award,
the Participant, and not the trust to which rights under such an Award may be assigned,
shall continue to be considered an employee or consultant, as the case may be, of the
Company or an Affiliate, but such trust and the Participant shall be bound by all of the
terms and conditions of the Award Agreement and this Plan. Shares issued in the name of
and delivered to such trust shall be conclusively considered issuance and delivery to the
Participant.

     (C) The Committee shall not permit directors or officers of the Company for purposes of
Section 16 to transfer or assign Awards except as permitted under Rule 16b-3.

     (iii) The Committee, the Company and its officers, agents and employees may rely
upon any beneficiary designation, assignment or other instrument of transfer, copies of
trust agreements and any other documents delivered to them by or on behalf of the
Participant which they believe genuine and any action taken by them in reliance thereon
shall be conclusive and binding upon the Participant, the personal representatives of the
Participant’s estate and all persons asserting a claim based on an Award. The delivery by
a Participant of a beneficiary designation, or an assignment of rights under an Award as
permitted hereunder, shall constitute the Participant’s irrevocable undertaking to hold
the Committee, the Company and its officers, agents and employees harmless against
claims, including any cost or expense incurred in defending against claims, of any person
(including the Participant) which may be asserted or alleged to be based on an Award
subject to a beneficiary designation or an assignment. In addition, the Company may
decline to deliver Shares to a beneficiary until it receives indemnity against claims of
third parties satisfactory to the Company.

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

     (f) Change in Control.

     (i) Notwithstanding any of the provisions of this Plan or instruments evidencing
Awards granted hereunder, upon a Change in Control of the Company the vesting of all
rights of Participants under outstanding Awards shall be accelerated and all restrictions
thereon shall terminate in order that Participants may fully realize the benefits
thereunder. Such acceleration shall include, without limitation, the immediate
exercisability in full of all Options and the termination of restrictions on Restricted
Stock and Restricted Stock Units. Further, in addition to the Committee’s authority set
forth in Section 4(c), the Committee, as constituted before such Change in Control, is
authorized, and has sole discretion, as to any Award, either at the time such Award is
made hereunder or any time thereafter, to take any one or more of the following actions:
(A) provide for the purchase of any such Award, upon the Participant’s request, for an
amount of cash equal to the amount that could have been attained upon the exercise of such
Award or realization of the Participant’s rights had such Award been currently exercisable
or payable; (B) make such adjustment to any such Award then outstanding as the Committee
deems appropriate to reflect such Change in Control; and (C) cause any such Award then
outstanding to be assumed, or new rights substituted therefor, by the acquiring or
surviving corporation after such Change in Control.

     (ii) (A) In the event that subsequent to a Change in Control it is determined that
any payment or distribution by the Company to or for the benefit of a Participant,
whether paid or payable or distributed or distributable pursuant to the terms of this
Plan or otherwise, other than any payment pursuant to this Section 7(f)(ii)(A) (a
“Payment”), would be subject to the excise tax imposed by Section 4999 of the Code or
any interest or penalties with respect to such excise

9

 

tax (such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the “Excise Tax”), then such Participant shall
be entitled to receive from the Company, within 15 days following the determination
described in (2) below, an additional payment (“Excise
Tax Adjustment Payment”) in an
amount such that after payment by such Participant of all applicable Federal, state and
local taxes (computed at the maximum marginal rates and including any interest or
penalties imposed with respect to such taxes), including any Excise Tax, imposed upon
the Excise Tax Adjustment Payment, such Participant retains an amount of the Excise Tax
Adjustment Payment equal to the Excise Tax imposed upon the Payments.

     (B) All determinations required to be made under this Section 7(f)(ii), including
whether an Excise Tax Adjustment Payment is required and the amount of such Excise Tax
Adjustment Payment, shall be made by PricewaterhouseCoopers LLP, or such other national
accounting firm as the Company, or, subsequent to a Change in Control, the Company and
the Participant jointly, may designate, for purposes of the Excise Tax, which shall
provide detailed supporting calculations to the Company and the affected Participant
within 15 business days of the date of the applicable Payment. Except as hereinafter
provided, any determination by PricewaterhouseCoopers LLP, or such other national
accounting firm, shall be binding upon the Company and the Participant. As a result of
the uncertainty in the application of Section 4999 of the Code that may exist at the
time of the initial determination hereunder, it is possible that (x) certain Excise Tax
Adjustment Payments will not have been made by the Company which should have been made
(an “Underpayment”), or (y) certain Excise Tax Adjustment Payments will have been made
which should not have been made (an “Overpayment”), consistent with the calculations
required to be made hereunder. In the event of an Underpayment, such Underpayment shall
be promptly paid by the Company to or for the benefit of the affected Participant. In
the event that the Participant discovers that an Overpayment shall have occurred, the
amount thereof shall be promptly restored to the Company.

     (g) Cash Settlement. Notwithstanding any provision of this Plan or of any Award Agreement
to the contrary, any Award outstanding hereunder may at any time be cancelled in the Committee’s
sole discretion upon payment of the value of such Award to the holder thereof in cash or in
another Award hereunder, such value to be determined by the Committee in its sole discretion.

     (h) Option Repricing. Except as provided in Section 4(c) and in connection with the
granting of a Substitute Award, no outstanding Option may be cancelled and replaced with an
Option having a lower exercise price.

Section 8. Amendment and Termination.

     Except to the extent prohibited by applicable law and unless otherwise expressly provided in
an Award Agreement or in the Plan:

     (a) Amendments to the Plan. The Board may amend the Plan and the Board or the Committee may
amend any outstanding Award; provided, however, that (i) no Plan amendment shall be effective
until approved by stockholders of the Company if any stockholder approval thereof is required in
order for the Plan to continue to satisfy the conditions of the applicable rules and regulations
that the Committee has determined to be necessary to comply with, and (ii) without the consent of
affected Participants no amendment of the Plan or of any Award may impair the rights of
Participants under outstanding Awards, and (iii) no Option may be amended to reduce its initial
exercise price other than in connection with an event described in Section 4(c) hereof or the
granting of a Substitute Award.

     (b) Waivers. The Committee may waive any conditions to the Company’s obligations or rights
of the Company under any Award theretofore granted, prospectively or retroactively, without the
consent of any Participant.

     (c) Adjustments of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. The
Committee shall make adjustments in the terms and conditions of, and the criteria included in,
Awards in recognition of unusual or nonrecurring events (including, without limitation, the
events described in Section 4(c) hereof) affecting the Company, any Affiliate, or the financial
statements of the Company or any Affiliate, or of changes in applicable laws, regulations, or
accounting principles, whenever the Committee determines that such adjustments are appropriate in
order to prevent dilution or enlargement of the benefits or potential benefits to be made
available under the Plan; provided, however, no such adjustment shall be made to an Award granted
under Section 6(e)(iii) if the Committee intends such Award to constitute “qualified
performance-based compensation” unless such adjustment is permitted under Section 162(m) of the
Code.

10

 

Section 9. Correction of Defects, Omissions, and Inconsistencies

     The Committee may correct any defect, supply any omission or reconcile any inconsistency in
the Plan or any Award in the manner and to the extent it shall deem desirable to effectuate the
Plan.

Section 10. General Provisions.

     (a) No Rights to Awards. No Participant or other person shall have any claim to be granted
any Award under the Plan, and there is no obligation for uniformity of treatment of Participants
or holders or beneficiaries of Awards under the Plan. The terms and conditions of Awards of the
same type and the determination of the Committee to grant a waiver or modification of any Award
and the terms and conditions thereof need not be the same with respect to each Participant.

     (b) Withholding. The Company or any Affiliate shall be authorized to withhold from any
Award granted or any payment due or transfer made under any Award or under the Plan the amount
(in cash, Shares, other securities, other Awards or other property) of withholding taxes due in
respect of an Award, its exercise or any payment or transfer under such Award or under the Plan
and to take such other action as may be necessary in the opinion of the Company or Affiliate to
satisfy all obligations for the payment of such taxes.

     (c) No Limit on Other Compensation Arrangements. Nothing contained in the Plan shall
prevent the Company or any Affiliate from adopting or continuing in effect other or additional
compensation arrangements, including the grant of options and other stock-based awards, and such
arrangements may be either generally applicable or applicable only in specific cases.

     (d) No Right to Employment or Service. The grant of an Award shall not be construed as
giving a Participant the right to be retained in the employ or service of the Company or any
Affiliate. Further, the Company or an Affiliate may at any time dismiss a Participant from
employment or service, free from any liability, or any claim under the Plan, unless otherwise
expressly provided in the Plan or in any Award Agreement or in any other agreement binding the
parties.

     (e) Governing Law. The validity, construction and effect of the Plan and any rules and
regulations relating to the Plan shall be determined in accordance with the laws of the State of
Michigan and applicable Federal law.

     (f) Severability. If any provision of the Plan or any Award is or becomes or is deemed to
be invalid, illegal or unenforceable in any jurisdiction or as to any person or Award, 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
so construed or deemed amended without, in the determination of the Committee, materially
altering the intent of the Plan or the Award, such provision shall be stricken as to such
jurisdiction, person or Award, and the remainder of the Plan and any such Award shall remain in
full force and effect.

     (g) No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed
to create a trust or separate fund of any kind or a fiduciary relationship between the Company
or any Affiliate and a Participant or any other person. To the extent that any person acquires a
right to receive payments from the Company or any Affiliate pursuant to an Award, such right
shall be no greater than the right of any unsecured general creditor of the Company or any
Affiliate.

     (h) No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the
Plan or any Award, and the Committee shall determine whether cash, other securities, or other
property shall be paid or transferred in lieu of any fractional Shares, or whether such
fractional Shares or any rights thereto shall be cancelled, terminated or otherwise eliminated.

     (i) Headings. Headings are given to the Sections and subsections of the Plan solely as a
convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of the Plan or any provision thereof.

Section 11. Term.

     The Plan shall be effective as of the date of its approval by the Company’s stockholders and
no Awards shall be made under the Plan after May 10, 2015.

11

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