Document:

EX-10.7

EXHIBIT 10.7

THE GOODYEAR TIRE & RUBBER COMPANY

GRANT AGREEMENT

CASH PERFORMANCE UNIT GRANT

Name

Title

     The 2008 Performance Plan of The Goodyear Tire & Rubber Company (the “Company”) was adopted by
the Board of Directors at their meeting on April 8, 2008 (the “Plan”). A copy of the Plan is
attached. At the
                    , 20___ meeting of the Compensation Committee of the Board of
Directors (the “Committee”), you were awarded a Cash Performance Unit Grant (the “Units”) as
follows:

	 	 	 	 	 
	 

	 	Date of Grant:	 	 
	 
	 	 	 	 
	 

	 	Number of Units Granted:	 	 
	 
	 	 	 	 
	 

	 	Performance Period:
	 	1-1-___ through 12-31-___
	 
	 	 	 	 
	 

	 	Unit Value
	 	$0 to $200

     The value of the Cash Performance Units specified above (the “Unit Value”) which you will earn
at the end of the                     -year Performance Period specified above (the “Performance Period”) will be
determined and contingent upon the extent to which Performance Goals are achieved. The Unit Value
may be adjusted from $0 up to $200, depending on the level of achievement of Performance Goals.
Payment of the Units will be made as provided under the General Terms and Conditions. The
Performance Measures, Performance Goals and Unit Value schedule for the Performance Period for your
Cash Performance Unit Grant are described in Annex A.

	 	 	 	 	 
	 	The Goodyear Tire & Rubber Company

                                             , 20___

 	 
	 	 	 

	 	 	 	 	 	 	 
	Grant Agreement received and agreed to:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	Name

	 	 	 	Date	 	 

 

 

GRANT
AGREEMENT

(Continued)

General Terms and Conditions

     1. The Cash Performance Unit Grant for the number of Units specified above is granted to you
under, and governed by the terms and conditions of, the Plan and this Grant Agreement. Your
execution and return of the enclosed copy of this Grant Agreement constitutes your agreement to,
and acceptance of, all terms and conditions of the Plan and this Grant Agreement. You also agree
that you have read and understand the provisions of the Plan, this Grant Agreement and Annex A.
All defined terms used in this Grant Agreement have the meanings set forth in the Plan.

     2. All rights conferred upon you under the provisions of this Grant Agreement are personal to
you and no assignee, transferee or other successor in interest shall acquire any rights or
interests whatsoever under this Grant Agreement, which is made exclusively for the benefit of you
and the Company, except by will or the laws of descent and distribution.

     3. The Number of Units Granted will be multiplied by the Unit Value to determine the dollar
amount of the Performance Award (the “Performance Award”) to be paid after the end of the
Performance Period as provided in Section 8 of this Grant Agreement. All awards will be paid in
cash.

     4. As further consideration for the Units granted to you hereunder, except as otherwise
provided in this Section 4 or in Section 5, you must remain in the continuous employ of the Company
or one or more of its Subsidiaries until December 31, 20___, the end of the Performance Period. The
number of units granted will be prorated in the event of your death or termination of employment at
any age after 30 or more years, or at age 55 or older with at least 10 years, of continuous service
with the Company and its subsidiaries prior to completion of the Performance Period. Pro-rata
units are calculated by dividing the number of months worked by the number of months in the
Performance Period (___) and multiplying the result by the Number of Units Granted. For purposes
of the pro-rata unit calculation, if any portion of a month is worked, credit will be provided for
the full month. The Performance Award will be determined by multiplying the prorated Number of
Units Granted by the Unit Value for the Performance Period and paid after the end of the
Performance Period as provided in Section 8 of this Grant Agreement. Further, in the event that
you incur a Severance during the Performance Period, the Units shall be deemed to have been fully
earned at the target amount of the award opportunity specified in Annex A, to the extent provided
in Section 8 of this Grant Agreement, and shall be paid as provided in Section 8 of this Grant
Agreement. The Performance Award will be paid in cash. Nothing contained herein shall restrict
the right of the Company or any of its subsidiaries to terminate your employment at any time, with
or without cause.

     5. In the event your employment status changes during the Performance Period due to layoff,
leave of absence or termination of employment while receiving benefits for a period of not less
than one year under a long-term disability income plan provided by a government or sponsored by the
Company or one of its Subsidiaries, the number of units granted will be prorated. Pro-rata units
are calculated by dividing the number of months worked by the number of months in the Performance
Period (___) and multiplying the result by the Number of Units Granted. For purposes of the
pro-rata unit calculation, if any portion of a month is worked, credit will be provided for the
full month. The Performance Award will be determined by

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GRANT
AGREEMENT

(Continued)

multiplying the prorated Number of Units Granted by the Unit Value for the Performance Period
and paid after the end of the Performance Period as provided in Section 8 of this Grant Agreement.
The Performance Award will be paid in cash.

     6. In the event you retire or otherwise terminate your employment with the Company or a
Subsidiary and within 18 months after such termination date you accept employment with a competitor
of, or otherwise engage in competition with, the Company, the Committee, in its sole discretion,
may require you to return, or (if not received) to forfeit, to the Company the payments made (or to
be made) hereunder which you have received (or will receive) at any time on or after the date which
is six months prior to the date of your termination of employment with the Company. Additionally,
all Units granted to you hereunder which are outstanding prior to your competitive engagement shall
be automatically cancelled.

     7. You will be required to satisfy all federal, state and local tax and payroll withholding
obligations arising in respect of any distribution of cash to you or deferral of the Units. Such
withholding obligations will be deducted from your Units.

     8. (a) Except as provided in Section 8(b), any payment of a Performance Award shall be made
(i) after the end of the Performance Period but in no event later than March 15, 20___; or (ii) (A)
in the event of your earlier Severance during the Performance Period which also constitutes a
“Severance” for purposes of the Company’s Continuity Plan for Salaried Employees (or any successor
to such plan) (the “Continuity Plan”), pursuant to the provisions of the Continuity Plan in respect
of any Units granted pursuant to the Plan and this Grant Agreement, as a successor plan to the
Company’s Executive Performance Plan, and, in that event, Section 13 of the Plan shall not apply
and you will not be entitled to receive any additional payment in respect of the Units under the
Plan or this Grant Agreement, or (B) in the event of your earlier Severance during the Performance
Period which does not constitute a “Severance” for purposes of the Continuity Plan, within 30 days
after your Severance.

          (b) Notwithstanding the foregoing, you may elect on a form provided by the Company (the
“Deferral Election”) to defer all or a specified whole percentage of the Units earned in accordance
with the parameters specified in Section 8(c)(4), in which event the amount you elect to defer will
be credited by March 15, 20___ to an account maintained in the records of the Company and will be
invested as provided in Section 8(d). The Deferral Election must be filed with the Company by, and
shall become irrevocable as of, December 31 (or such earlier date as specified by the Company on
the Deferral Election) of the calendar year next preceding the first day of the Performance Period
for which such Units would otherwise be earned. If you first become eligible to defer the Units
after the beginning of the Performance Period (within the meaning of Section 409A of the Code and
after applying the plan aggregation rules for voluntary deferral plans), the Deferral Election must
be filed with the Company by, and shall become irrevocable as of, the thirtieth (30th) day
following the Date of Grant (or such earlier date as specified by the Company on the Deferral
Election) and shall only apply to the Units earned after the Deferral Election becomes irrevocable
using the procedures set forth under Section 409A of the Code. Once irrevocable, a Deferral
Election shall not be amended or terminated; provided, however, your Deferral Election will be
terminated in the event of your “separation from service” during the Performance Period. You will
be deemed to have a “separation from service” on the date of your termination, if after the date of
your termination you are not

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GRANT
AGREEMENT

(Continued)

reasonably anticipated to provide a level of bona fide services to the Company or any
affiliate that exceeds 25% of the average level of bona fide services provided by you in the
immediately preceding 36 months (or, if less, the full period of services to the Company or any
affiliate).

          (c) A Performance Award deferred pursuant to the terms of this Grant Agreement (“Deferred
Compensation”) shall be payable as follows:

               (1) In the event that your employment with the Company or a Subsidiary is terminated by reason
of voluntary termination, layoff due to job elimination or job relocation, involuntary termination
for any reason or any other termination for any other reason other than your death, Disability
(defined as receiving benefits for a period of not less than one year under a long-term disability
income plan provided by a government or sponsored by the Company or one of its Subsidiaries that
determines eligibility in conformity with Treasury Regulation §1.409A-3(i)(4)) or Retirement
(defined as termination of employment at age 55 or older with at least 10 years of continuous
service with the Company and its subsidiaries), the entire amount of your Deferred Compensation
shall be paid on the first business day following the six-month anniversary of such termination of
employment.

               For purposes of establishing whether you have terminated, hence had a separation of service
within the meaning of Section 409A of the Code, you will be deemed to have a separation of service
on the date of your termination, if after the date of your termination you are not reasonably
anticipated to provide a level of bona fide services to the Company or any affiliate that exceeds
25% of the average level of bona fide services provided by you in the immediately preceding 36
months (or, if less, the full period of services to the Company or any affiliate).

               (2) In the event of your death (whether before or after your Retirement or Disability), the
entire amount of your Deferred Compensation shall be paid in a lump sum within sixty (60) days
after the date of your death to any person or entity (including a trust or your estate) last
designated in writing by you on the form provided by the Company and delivered to the Committee
prior to your death.

               (3) In the event you terminate after meeting the requirements for Retirement or Disability,
the distribution of your Deferred Compensation shall be made in accordance with your election made
in accordance with paragraph 4 below.

               For purposes of establishing whether you have retired, hence had a separation of service
within the meaning of Section 409A of the Code, you will be deemed to have a separation of service
on the date of your Retirement, if after the date of your Retirement you are not reasonably
anticipated to provide a level of bona fide services to the Company or any affiliate that exceeds
25% of the average level of bona fide services provided by you in the immediately preceding 36
months (or, if less, the full period of services to the Company or any affiliate).

               (4) If your Deferred Compensation has not been paid pursuant to paragraphs (1) or (2) above,
then it shall be paid pursuant to the time and form of the elections made pursuant to this
paragraph (4). You must at the time of your election to defer Units earned, specify the time

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GRANT
AGREEMENT

(Continued)

and form of payment of such Deferred Compensation only in one of the following times and
forms:

               (i) In a lump sum on the 15th day of January following the specified anniversary of the end of
the Performance Period with respect to which the Deferred Compensation was earned where you specify
an anniversary of between 2 and 20 years at the time of election to defer; or

               (ii) In a lump sum on the later of (1) six (6) months following Retirement or Disability or
(2) on the 15th day of January of the year following the year of your termination due to Retirement
or Disability, or

               (iii) In annual installments over a period specified by you at the time of the Deferral
Election of no more than fifteen (15) years, commencing in each case on the later of (1) six (6)
months following Retirement or Disability or (2) on the 15th day of January of the year following
the date of your Retirement or Disability, each installment to equal the aggregate amount of all
your Deferred Compensation then remaining in your account subject to such election, determined as
at the close of the business day immediately prior to such distribution date, divided by the number
of installments then remaining to be made (including the installment to be paid on such
distribution date); or

               (iv) In annual installments over a period specified by you at the time of the Deferral
Election of no more than fifteen (15) years, commencing in each case on the 15th day of January
following the specified anniversary of the end of the Performance Period with respect to which the
Deferred Compensation was earned where you specify an anniversary of between 2 and 20 years at the
time of election to defer, each installment to equal the aggregate amount of all Deferred
Compensation then remaining in your account subject to such election, determined as at the close of
the business day immediately prior to such distribution date, divided by the number of installments
then remaining to be made (including the installment to be paid on such distribution date).

             (5) With respect to an attempted deferral by a Participant for which no effective election as
to time of payment has been filed with the Committee, such Performance Award will be paid in
accordance with Section 8(a) and the attempted deferral will be null and void.

          (d) At the time you make your election to defer Units earned in respect of the Performance
Period, you must choose from the Reference Investment Fund or Funds attached hereto and allocate
your Performance Award, among one or more such Reference Investment Funds which as of March 15,
20___ will be established as your Cash Performance Unit Account with respect to your Performance
Award. You can make changes to your Reference Investments in your Cash Performance Unit Account at
any time online. The Committee shall have absolute discretion in the selection of Reference
Investment Funds available and may, from time to time, change the available Reference Investment
Funds as it deems appropriate. Any such change of Reference Investment Funds will be communicated
to you in accordance with procedures adopted by the Committee.

Page 5 of 7

 

GRANT
AGREEMENT

(Continued)

     9. Any notice to you under this Grant Agreement shall be sufficient if in writing and if
delivered to you or mailed by registered mail directed to you at the address on record in the
Executive Compensation Department. Any notice to the Company under this Grant Agreement shall be
sufficient if in writing and if delivered to the Executive Compensation Department of the Company
in Akron, Ohio, or mailed by registered mail directed to the Company for the attention of the
Executive Compensation Department at 1144 East Market Street, Akron, Ohio 44316-0001. Either you
or the Company may, by written notice, change the address. This Grant Agreement shall be construed
and shall take effect in accordance with the laws of the State of Ohio.

     10. The obligations of the Company under this Grant Agreement will be merely that of an
unfunded and unsecured promise of the Company to deliver cash in the future, and your rights will
be no greater than that of an unsecured general creditor. No assets of the Company will be held or
set aside as security for the obligations of the Company under this Grant Agreement.

     11. It is intended that this Grant Agreement shall either be exempt from the application of,
or comply with, the requirements of Section 409A of the Code. This Grant Agreement shall be
construed, administered, and governed in a manner that effects such intent, and the Committee shall
not take any action that would be inconsistent with such intent. Without limiting the foregoing,
the Units shall not be deferred, accelerated, extended, paid out, settled, adjusted, substituted,
exchanged or modified in a manner that would cause the award to fail to satisfy the conditions of
an applicable exception from the requirements of Section 409A of the Code or otherwise would
subject you to the additional tax imposed under Section 409A of the Code.

     Notwithstanding anything contained in this Grant Agreement to the contrary, if you are a
“specified employee,” within the meaning of Section 409A of the Code, with December 31 being the
specified employee identification date and the following January 1 being the specified employee
effective date, on the date you incur a separation from service, then to the extent required in
order to comply with Section 409A of the Code, all payments under this Grant Agreement that
constitute a “deferral of compensation” within the meaning of Section 409A of the Code, that are
provided as a result of a separation from service and that would otherwise be paid during the first
six months following such separation from service shall be accumulated through and paid (together
with interest on any cash amounts at the applicable federal rate under Section 7872(f)(2)(A) of the
Code in effect on the date of termination), on the first business day that is more than six months
following your separation from service (or, if you die during such six-month period, within 90 days
after your death).

     12. The Board of Directors may only terminate the provisions of this Grant Agreement with
respect to compensation deferred hereunder (referred to in this Section 12 as the “plan”) pursuant
to the following conditions:

          (a) The Company may terminate and liquidate the plan within 12 months of a corporate
dissolution taxed under Section 331, or with the approval of a bankruptcy court pursuant to 11
U.S.C. §503(b)(1)(A), provided that the amounts deferred under the plan are included in your gross
income in the latest of the following years (or, if earlier, the taxable year in which the amount
is actually or constructively received): (1) the calendar year in which the

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GRANT
AGREEMENT

(Continued)

plan termination and liquidation occurs; (2) the first calendar year in which the amount is no
longer subject to a substantial risk of forfeiture; or (3) the first calendar year in which the
payment is administratively practicable.

          (b) The Company may terminate and liquidate the plan pursuant to irrevocable action taken by
the Board of Directors within the 30 days preceding or the 12 months following a change in control
event (as defined in Treasury Regulation §1.409A-3(i)(5)), provided that this paragraph will only
apply to a payment under the plan if all agreements, methods, programs and other arrangements
sponsored by the Company immediately after the time of the change in control event with respect to
which deferrals of compensation are treated as having been deferred under a single plan under
Treasury Regulation §1.409A-1(c) are terminated and liquidated with respect to each participant
that experienced the change in control event, so that under the terms of the termination and
liquidation all such participants are required to receive all amounts of compensation deferred
under the terminated agreements, methods, programs and other arrangements within 12 months of the
date the Company irrevocably takes all necessary action to terminate and liquidate the agreements,
methods, programs and other arrangements.

          (c) The Company may terminate and liquidate the plan, provided that (1) the termination and
liquidation does not occur proximate to a downturn in the financial health of the Company; (2) the
Company terminates and liquidates all agreements, methods, programs and other arrangements
sponsored by the Company that would be aggregated with any terminated and liquidated agreements,
methods, programs and other arrangements under Treasury Regulation §1.409A-1(c) if any participant
had deferrals of compensation under all of the agreements, methods, programs and other arrangements
that are terminated and liquidated; (3) no payments in liquidation of the plan are made within 12
months of the date the Company takes all necessary action to irrevocably terminate and liquidate
the plan other than payments that would be payable under the terms of the plan if the action to
terminate and liquidate the plan had not occurred; (4) all payments are made within 24 months of
the date the Company takes all necessary action to irrevocably terminate and liquidate the plan;
and (5) the Company does not adopt a new plan that would be aggregated with any terminated and
liquidated plan under Treasury Regulation §1.409A-1(c) if the same service provider participated in
both plans, at any time within three years following the date the Company takes all necessary
action to irrevocably terminate and liquidate the plan.

Page 7 of 7EX-10.8

EXHIBIT 10.8

PERFORMANCE RECOGNITION PLAN

of

THE GOODYEAR TIRE & RUBBER COMPANY

As amended and restated on October 7, 2008

(hereinafter called the “Plan”)

I. PURPOSE AND POLICY

          It is the declared policy of the Board of Directors of The Goodyear Tire & Rubber Company, in
order to provide incentive for extra effort, that key personnel of the Company shall be compensated
in addition to their fixed compensation by participation in a performance recognition plan. Such
key personnel shall be selected, as hereinafter provided, from the elected officers and other key
employees of the Company.

          The Plan is designed to reinforce Participant effort and responsibility towards achieving the
total Company business objectives, the objectives of specific business units and objectives
established for individual Participants. Awards to Participants provided under this Plan will vary
to the extent these goals and objectives are attained. The basic intent is to tie Awards directly
to results that reflect Company growth and success achieved through customer satisfaction, quality
products and enhanced shareholder value.

          The Plan shall be subject to discontinuance, or amendment by the Board of Directors, at any
time.

II. DEFINITIONS

          For purposes of the Plan, the following terms shall have the following meanings:

     A) Award. Cash payments approved by the Committee and made pursuant to the objectives
established pursuant to the Plan in respect of any Plan Year. Solely for purposes of Article VIII,
the term “Award” also includes awards earned under the Management Incentive Plan and deferred
pursuant to the terms of Article VIII.

     B) Company. The Goodyear Tire & Rubber Company or any of its subsidiaries and affiliates.

 

 

     C) Fair Market Value. Fair Market Value means, in respect of any date on or as of which a
determination thereof is being or to be made, the closing market price of the Common Stock reported
on the New York Stock Exchange Composite Transactions tape on such date, or, if the Common Stock
was not traded on such date, on the next preceding day on which sales of shares of the Common Stock
were reported on the New York Stock Exchange Composite Transactions tape.

     D) Participant. With respect to any Plan Year, a salaried employee of the Company who has
been selected by the Committee to receive an Award under the Plan for such Plan Year subject to the
attainment of the established goals and objectives.

     E) Plan Year. Each period of one year beginning January 1 and ending December 31, commencing
January 1, 2006.

     F) Retirement. Retirement means termination of employment at age 55 or older with at least 10
years of continuous service with the Company and its subsidiaries.

III. THE COMMITTEE

          The Plan shall be administered by a Committee, the “Committee”, to be comprised of each member
of the Compensation Committee of the Board of Directors of the Company, as such Committee is
constituted from time to time, that is neither an employee nor an officer of the Company and is not
participating, and has not and will not participate, in the Plan. Action by the Committee pursuant
to any provision of the Plan may be taken at any meeting held upon not less than five days’ notice
of its time, place and purpose given to each member, at which meeting a quorum of not less than
four members is present. If less than a majority of the whole Committee is present, such action
must be by the unanimous vote of those present, otherwise by a majority vote. The minutes of such
meeting (signed by its secretary) evidencing such action, shall constitute authority for the
Company to proceed in accordance therewith.

IV. TARGET BONUS

          Each Participant in a Plan Year is granted a target bonus with respect to such Plan Year which
is subject to adjustment between zero and the amount the Committee determines that corresponds to
the extent to which the performance measures set forth for the performance goal or goals
established for the Participant for such Plan Year are achieved.

V. SELECTION OF PARTICIPANTS

     A) With respect to each Plan Year, in consultation with the Chief Executive Officer of the
Company (or, if he be unavailable,
with the next ranking officer of the Company who may be available),

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the Committee shall determine
the Participants and establish their respective target bonuses for such Plan Year. The Committee
shall also review and approve the goals established for the Participants for such Plan Year. As to
such determination, the Committee may rely, to the extent it deems appropriate, upon any
information and recommendations obtained from the officer so consulted. As soon as practicable
after the selection of Participants for a Plan Year, the Company shall notify them of their
participation and target bonuses for such Plan Year.

     B) A list, certified by the Committee (or by the officers as to action pursuant to
subparagraph A above), shall evidence the determination of those persons who are Participants in
the Plan for such Plan Year and their respective target bonuses.

     C) With respect to employees who are not officers of the Company, the Chairman of the Board of
the Company may add such employees as Participants in the Plan during a Plan Year and report such
additional Participants to the Committee from time to time.

     D) The Chairman of the Board of the Company may, at his discretion, terminate the
participation of any associate in the Plan at any time and may reduce or eliminate the target bonus
granted to any associate for any Plan Year at any time prior to the payment of an Award in respect
of such grant.

VI. PAYMENT POOL

          A pool for the payment of Awards will be established equivalent to the total of the adjusted
target bonus amounts as determined in Section IV hereof for all Participants in the plan.

VII. PAYMENT

          The Committee, in its sole discretion, shall determine if a payment from the pool shall be
made to Participants in respect of any Plan Year notwithstanding the fact that the established
goals and objectives may have been achieved. If the Committee determines that there will be a
payment in respect of a Plan Year, payment of Awards due Participants with respect to the Plan will
be made after the close of such Plan Year once the achievement of the performance goals have been
determined for funding the pool. All Awards are contingent upon the achievement of the stated
performance goals for the Plan Year and a determination by the Committee that a payment shall be
distributed to Participants in respect of such Plan Year. The amount of individual Awards will be
based upon individual performance and is subject to the discretion of management. All Awards shall
be paid in cash on or before the 15th day of the third month following the end of the
Plan Year except to the extent converted into deferred stock unit awards as provided in Section
VIII hereof or deferred pursuant to the terms of The Goodyear Tire
& Rubber Company Deferred Compensation Plan for Executives. There

3

 

shall be deducted from each
Award under the Plan the amount of any tax required by governmental authority to be withheld and
paid over by the Company to such government for the account of a Participant entitled to an Award.

VIII. DEFERRAL OF PAYMENT

          The Committee, in its sole discretion, may allow certain Participants in the Plan or the
Management Incentive Plan to convert all or a portion of their Award into deferred stock units
granted under the 2005 Performance Plan of the Company or a similar successor plan subject to the
terms of this Article VIII. If permitted by the Committee, such Participants may elect to convert
25%, 50%, 75% or 100% of their Award into a deferred stock unit account for a period of three years
by irrevocably electing prior to the beginning of the Plan Year or Performance Period to defer
their award into stock units. If a Participant first becomes eligible to defer amounts under this
Plan after the beginning of a Plan Year or Performance Period (within the meaning of Section 409A
of the Code and after applying the aggregation rules) then the deferral election must be filed by
and shall become irrevocable as of the 30th day following the first day of eligibility
and will only apply to the amount of the Award paid for services provided after the election
pursuant to Treasury Regulations Section 1.409A-2(a)(7). The amount of the Award that is converted
into the deferred stock unit account will be increased by 20%. This 20% increase in the amount of
the Award deferred is subject to a one-year vesting requirement as described below. The number of
units deferred will be determined by dividing 120% of the deferral amount by the Fair Market Value
of the Common Stock (each as defined in the 2008 Performance Plan)of the Company on the date the
payout is approved by the Committee. If the Participant terminates employment (except by death or
Retirement) prior to the end of the Calendar Year following the Plan Year in which the Award was
earned, the deferred stock unit account relating to such year will be reduced to equal the number
of units that would have been needed to be equal to 100% of the portion of the Award that was
deferred on the date the payout was approved by the Committee. The Committee may authorize
dividend equivalents at the same rate as dividends are paid on the Company’s Common Stock, to be
reinvested in the deferral account based on the Fair Market Value of the Company’s Common Stock on
the date the Company pays any such dividend. Unless the Award has been previously paid out due to
a death as specified in paragraph D) of Article IX, on March 31 of the fourth year following the
end of the Plan Year or Performance Period for which the Award was earned, the deferred stock unit
accounts will be converted into shares of the Company’s Common Stock and issued to the Participant
less amounts withheld to satisfy any tax withholding requirements.

IX. CHANGE IN PARTICIPANT’S STATUS

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     A) Any Participant who is not an employee of the Company on December 31 of a Plan Year
forfeits his or her participation for such Plan Year unless employment termination was due to the
employee’s death or Retirement.

     B) Any Participant whose employment terminates due to Retirement shall have his or her target
bonus prorated for the Plan Year during which the associate’s Retirement Date occurred. Such pro
rata target bonus is calculated by multiplying the percentage of days occurring prior to the
Retirement Date (ie, number of days occurring prior to the Retirement Date divided by 365) by the
target bonus as adjusted by Section IV. Notwithstanding the above, a Participant who, after
Retirement, enters into a relationship either as an employee, consultant, agent or in any manner
whatsoever with an entity that sells products in competition with products sold by the Company and
its subsidiaries, forfeits the right to receive a distribution under this Plan in respect of such
Plan Year. In the event such Participant enters into such a relationship with a competitor within
six months following a distribution or deferral under this Plan, the Participant agrees to refund
to The Goodyear Tire & Rubber Company any such distribution the Participant received and to forfeit
any amounts deferred into a deferred stock unit account.

     C) Any Participant whose employment status changes during a Plan Year due to layoff, leave of
absence or disability shall have his or her target bonus prorated, subject to the adjustment as
provided for in Section IV hereof. Such pro rata target bonus is calculated by multiplying the
percentage of days actually worked during the Plan Year (ie, number of days actually worked divided
by 365) by the target bonus for such Plan Year.

     D) A Participant whose employment terminates during a Plan Year due to death shall have his or
her target bonus for such Plan Year prorated and the prorated target bonus shall not be adjusted
under Section IV hereof. Such pro rata bonus is based on days occurring prior to death in such
Plan Year and calculated by dividing the number of days prior to death occurring in the Plan year
by 365, then multiplied by the target bonus. The distribution of the bonus and also the Fair
Market Value on the date of death of any deferred stock unit accounts of a deceased Participant
shall be made in a lump sum within 60 days of Participant’s death to the Participant’s executors,
administrators, or such other person or persons as shall, by specific bequest under the last will
and testament of the Participant, be entitled thereto.

X. MISCELLANEOUS CONDITIONS

          The Plan and all participation therein shall be subject to the following conditions:

     A) Any change in Participant’s status under Article IX except for a Death (as provided in its
Paragraph D) only affects the vesting

5

 

and calculation of an award granted and does not change the
deferral of an award or the time and form of the distribution of any deferred compensation
election.

     B) Nothing in the Plan shall obligate the Company with respect to tenure of office or duration
of employment of any Participant or provide for or continue participation in the Plan by any
Participant in the Plan for any Plan Year in respect of any subsequent Plan Year.

     C) All right, title and interest in the Plan shall be personal to the Participant and not
subject to voluntary or involuntary alienation, hypothecation, assignment or transfer, except that
participation is subject to forfeiture as provided herein. No Participant or Beneficiary shall
have any right, title or interest whatever in or to any investment reserves, accounts, trusts or
other funds or assets that the Company may purchase, establish, or accumulate to aid in paying any
Award as and when due to the Participants under the Plan. Nothing contained in the Plan, and no
action taken pursuant to its provisions, shall create or be construed to create a trust or a
fiduciary relationship of any kind between the Company and a Participant, his or her Beneficiaries
or any other person. Neither a Participant nor his or her Beneficiaries shall acquire any right or
interest under the Plan other or greater than that of an unsecured creditor.

     D) The Committee shall have power finally to interpret any of the provisions of the Plan and
to lay down any regulations not inconsistent herewith for its administration.

     E) Nothing in the Plan shall prevent or interfere with any recapitalization or reorganization
of the Company or its merger or consolidation with any other entity. In any such case, the
recapitalized, reorganized, merged, or consolidated entity shall assume the obligations of the
Company under the Plan or such modification hereof as, in the judgment of the Board of Directors,
shall be necessary to adapt it to the changed situation and shall provide substantially equivalent
benefits to the Participants.

     F) Termination and Amendment of Plan

       (1) The Company may terminate, suspend, amend, modify or otherwise act in respect of the Plan
subject to the requirements of this Section at any time and from time to time.

       (2) Requirements to Terminate. The Board may only terminate this Plan with respect to
deferrals under Article VIII under the following conditions:

          (a) The Company may terminate and liquidate the Plan within 12 months of a corporate
dissolution taxed under Section 331, or with the approval of a bankruptcy court pursuant to 11
U.S.C. §503(b)(1)(A), provided that the amounts deferred under the Plan are included in the
Participants’ gross incomes in the latest of the following years (or, if earlier the taxable year
in which the
amount is actually or constructively received): (1) the calendar year in which the Plan
termination and liquidation occurs; (2) the

6

 

first calendar year in which the amount is no longer
subject to a substantial risk of forfeiture; or (3) the first calendar year in which the payment is
administratively practicable.

          (b) The Company may terminate and liquidate the Plan pursuant to irrevocable action taken by
the Board of Directors within the 30 days preceding or the 12 months following a change in control
event (as defined in Treasury Regulation §1.409A-3(i)(5), provided that this paragraph will only
apply to a payment under the Plan if all agreements, methods, programs, and other arrangements
sponsored by the Company immediately after the time of the change in control event with respect to
which deferrals of compensation are treated as having been deferred under a single plan under
Treasury Regulation §1.409A-1(c)(2) are terminated and liquidated with respect to each Participant
that experienced the change in control event, so that under the terms of the termination and
liquidation all such Participants are required to receive all amounts of compensation deferred
under the terminated agreements, methods, programs and other arrangements within 12 months of the
date the Company irrevocably takes all necessary action to terminate and liquidate the agreements,
methods, programs, and other arrangements.

          (c) The Company may terminate and liquidate the Plan, provided that (i) the termination and
liquidation does not occur proximate to a downturn in the financial health of the Company; (ii) the
Company terminates and liquidates all agreements, methods, programs, and other arrangements
sponsored by the Company that would be aggregated with any terminated and liquidated agreements,
methods, programs, and other arrangements under Treasury Regulation §1.409-1(c) if any Participant
had deferrals of compensation under all of the agreements, methods, programs, and other
arrangements that are terminated and liquidated; (iii) no payments in liquidation of the Plan are
made within 12 months of the date the Company takes all necessary action to irrevocably terminate
and liquidate the Plan other than payments that would be payable under the terms of the Plan if the
action to terminate and liquidate the Plan had not occurred; (iv) all payments are made within 24
months of the date the Company takes all necessary action to irrevocably terminate and liquidate
the Plan; and (v) the Company does not adopt a new plan that would be aggregated with any
terminated and liquidated plan under Treasury Regulation §1.409A-1(c) if the same service provider
participated in both plans, at any time within three years following the date the service recipient
takes all necessary action to irrevocably terminate and liquidate the Plan.

     G. Compliance with Section 409A of the Code.

          (1) It is intended that the Plan comply with the provisions of Section 409A of the Code, so
as to prevent the inclusion in gross income of any amounts deferred hereunder in a taxable year
that is prior to the taxable year or years in which such amounts would otherwise actually be paid
or made available to Participants
or Beneficiaries. This Plan shall be construed, administered, and governed in a manner that
affects such intent, and the Committee

7

 

shall not take any action that would be inconsistent with
such intent.

          (2) Although the Committee shall use its best efforts to avoid the imposition of taxation,
interest and penalties under Section 409A of the Code, the tax treatment of deferrals under this
Plan is not warranted or guaranteed. Neither the Company, the other members of the Affiliated
Group, the Board, nor the Committee (nor its designee) shall be held liable for any taxes,
interest, penalties or other monetary amounts owed by any Participant, Beneficiary or other
taxpayer as a result of the Plan.

          (3) Any reference in this Plan to Section 409A of the Code will also include any proposed,
temporary or final regulations, or any other guidance promulgated with respect to such Section 409A
by the U.S. Department of Treasury or the Internal Revenue Service. For purposes of the Plan, the
phrase “permitted by Section 409A of the Code,” or words or phrases of similar import, shall mean
that the event or circumstance shall only be permitted to the extent it would not cause an amount
deferred or payable under the Plan to be includible in the gross income of a Participant or
Beneficiary under Section 409(A)(a)(1) of the Code.

Executed this 22nd day of December, 2008.

	 	 	 	 	 
	 	THE GOODYEAR TIRE & RUBBER COMPANY

 	 
	 	By:	 /s/ Joseph B. Ruocco	 
	 	 	Joseph B. Ruocco 	 
	 	 	Senior VP, Human Resources 	 
	 
	 	ATTEST:	 
	 	By:	
/s/ Bertram Bell	 
	 	 	Bertram Bell 	 
	 	 	Assistant Secretary 	 
	 

8

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