Document:

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Exhibit 10(r)

RESTRICTED STOCK AWARD AGREEMENT

     Pursuant to the provisions of the Pulte Homes, Inc. 2004 Stock Incentive Plan (the “Plan”),
the employee named in the Grant Acceptance (the “Holder”) has been granted a restricted stock award
(the “Award”) of the number of shares of common stock, $.01 par value, of Pulte Homes, Inc., a
Michigan corporation (the “Company”) set forth in the Grant Acceptance (the “Shares”), subject to
adjustment as provided herein and in the Plan. The Award is subject to the restrictions, terms and
conditions set forth below. Capitalized terms not otherwise defined herein shall have the meanings
ascribed to them in the Plan. This Agreement, together with the Grant Acceptance, constitute the
Restricted Stock Agreement which is made and entered into as of the grant date set forth in the
Grant Acceptance (the “Grant Date”).

     1. Award Subject to Acceptance of Agreement. The Award shall be null and void unless
the Holder shall (a) accept this Agreement in the manner prescribed by the Company and (b) if
requested by the Company, execute and return one or more irrevocable stock powers to facilitate the
transfer to the Company (or its assignee or nominee) of the Shares subject to the Award if Shares
are forfeited pursuant to Section 4 hereof or if required under applicable laws or regulations. As
soon as practicable after the Holder has accepted this Agreement in accordance with the procedures
prescribed by the Company and, if requested by the Company, such stock power or powers, and
returned the same to the Company, the Company shall cause to be issued in the Holder’s name the
total number of Shares subject to the Award.

     2. Rights as a Stockholder. The Holder shall have the right to vote the Shares
subject to the Award and to receive dividends and other distributions thereon unless and until such
Shares are forfeited pursuant to Section 4 hereof; provided, however, that a dividend or other
distribution with respect to such Shares (including, without limitation, a stock dividend or stock
split), other than a regular cash dividend, shall be subject to the same restrictions as the Shares
with respect to which such dividend or other distribution was made (and if the Holder shall have
received such dividend or other distribution, the Holder shall deliver the same to the Company and
shall, if requested by the Company, execute and return one or more irrevocable stock powers related
thereto).

     3. Custody and Delivery of Shares. The Shares subject to the Award shall be held by
the Company or by a custodian in book entry form, with restrictions on the Shares duly noted, until
such Award shall have vested pursuant to Section 4 hereof, and as soon thereafter as practicable,
subject to Section 5.3 hereof, the vested Shares shall be delivered to the Holder as the Holder
shall direct. Alternatively, in the sole discretion of the Company, the Company shall hold a
certificate or certificates representing the Shares subject to the Award until such Award shall
have vested, in whole or in part, pursuant to Section 4 hereof, and the Company shall as soon
thereafter as practicable, subject to Section 5.3 hereof, deliver the certificate or certificates
for the vested Shares to the Holder and destroy the stock power or powers relating to the vested
Shares delivered by the Holder pursuant to Section 1 hereof. If such stock power or powers also
relate to unvested Shares, the Company may require, as a condition precedent to delivery of any
certificate pursuant to this Section 3, the execution and delivery to the Company of one or more
stock powers relating to such unvested Shares.

 

 

     4. Vesting.

     (a) Except to the extent earlier forfeited or vested pursuant to this Section 4 or in the
event of a Change in Control, the Award shall vest on the third anniversary of the Grant Date.

     (b) If the Holder’s employment by the Company terminates by reason of the Holder’s death or
disability, the Award shall become fully vested as of the date of the Holder’s termination of
employment. If the Holder’s employment by the Company is terminated by reason of retirement with
the consent of the Company, the Holder shall be required to execute a release agreement having such
terms and provisions as the Company may require and the Award shall become fully vested as of the
date on which the Holder’s release becomes irrevocable. If the Holder does not execute a release
or timely revokes such release, the portion of the Award which is not vested as of the date of the
Holder’s retirement shall not vest and shall be forfeited by the Holder and transferred, without
payment of any consideration to the Holder, to the Company (or its assignee or nominee).

     (c) If the Holder’s employment by the Company is terminated by the Company for Cause, the
portion of the Award which is not vested as of the date of the Holder’s termination of employment
shall be forfeited by the Holder and shall be transferred, without payment of any consideration to
the Holder, to the Company (or its assignee or nominee).

     (d) If the Holder’s employment by the Company terminates for any reason other than a reason
specified in Section 4(b) or 4(c) hereof, the portion of the Award which is not vested as of the
date of the Holder’s termination of employment shall be forfeited by the Holder and shall be
transferred, without payment of any consideration to the Holder, to the Company (or its assignee or
nominee); provided, however, that the Committee may, in its discretion, make a determination that
if the Holder executes a release agreement having such terms and provisions as the Company may
require, part or all of such unvested portion of the Award shall become fully vested as of the date
on which the Holder’s release becomes irrevocable. If the Holder does not execute a release or
timely revokes such release, the portion of the Award which is not vested as of the date of the
Holder’s termination of employment shall not vest and shall be forfeited by the Holder and
transferred, without payment of any consideration to the Holder, to the Company (or its assignee or
nominee).

     (e) As used herein, “Cause” shall mean a determination by the Company that the Holder has (i)
willfully and continuously failed to substantially perform the duties assigned by the Company or a
Subsidiary with which the Holder is employed (other than a failure resulting from the Holder’s
disability), (ii) willfully engaged in conduct which is demonstrably injurious to the Company or
any Subsidiary, monetarily or otherwise, including conduct that, in the reasonable judgment of the
Company, does not conform to the standard of the Company’s executives or employees, or (iii)
engaged in any act of dishonesty, the commission of a felony or a significant violation of any
statutory or common law duty of loyalty to the Company or any Subsidiary.

     5. Additional Terms and Conditions of Award.

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     5.1. Nontransferability of Award. Prior to the vesting of the Shares subject to the
Award, such Shares may not be transferred by the Holder other than by will, the laws of descent and
distribution or pursuant to beneficiary designation procedures approved by the Company. Except to
the extent permitted by the foregoing, such unvested Shares may not be sold, transferred, assigned,
pledged, hypothecated, encumbered or otherwise disposed of (whether by operation of law or
otherwise) or be subject to execution, attachment or similar process.

     5.2. Investment Representation. The Holder hereby represents and covenants that (a)
any Shares acquired upon the vesting of the Award will be acquired for investment and not with a
view to the distribution thereof within the meaning of the Securities Act of 1933, as amended (the
“Securities Act”), unless such acquisition has been registered under the Securities Act and any
applicable state securities law; (b) any subsequent sale of any such Shares shall be made either
pursuant to an effective registration statement under the Securities Act and any applicable state
securities laws, or pursuant to an exemption from registration under the Securities Act and such
state securities laws; and (c) if requested by the Company, the Holder shall submit a written
statement, in form satisfactory to the Company, to the effect that such representation (x) is true
and correct as of the date of acquisition of any Shares hereunder or (y) is true and correct as of
the date of any sale of any such Shares, as applicable. As a further condition precedent to the
delivery to the Holder of any Shares subject to the Award, the Holder shall comply with all
regulations and requirements of any regulatory authority having control of or supervision over the
issuance of the Shares and, in connection therewith, shall execute any documents which the Board or
the Committee shall in its sole discretion deem necessary or advisable.

     5.3. Withholding Taxes. (a) As a condition precedent to the delivery to the Holder
of any Shares subject to the Award, the Holder shall, upon request by the Company, pay to the
Company such amount of cash as the Company may be required, under all applicable federal, state,
local or other laws or regulations, to withhold and pay over as income or other withholding taxes
(the “Required Tax Payments”) with respect to the Award. If the Holder shall fail to advance the
Required Tax Payments after request by the Company, the Company may, in its discretion, deduct any
Required Tax Payments from any amount then or thereafter payable by the Company to the Holder or
withhold Shares.

     (b) The Holder may elect to satisfy his or her obligation to advance the Required Tax Payments
by any of the following means: (1) a cash payment to the Company pursuant to Section 5.3(a), (2)
delivery to the Company (either actual delivery or by attestation procedures established by the
Company) of Mature Shares having a Fair Market Value, determined as of the date the obligation to
withhold or pay taxes first arises in connection with the Award (the “Tax Date”), equal to the
Required Tax Payments, (3) authorizing the Company to withhold from the Shares otherwise to be
delivered to the Holder pursuant to the Award, a number of whole Shares having a Fair Market Value,
determined as of the Tax Date, equal to the Required Tax Payments, or (4) any combination of (1),
(2) and (3). Shares to be delivered or withheld may not have a Fair Market Value in excess of the
minimum amount of the Required Tax Payments. Any fraction of a Share which would be required to
satisfy such an obligation shall be disregarded and the remaining amount due shall be paid in cash
by the Holder. No Shares shall be delivered until the Required Tax Payments have been satisfied in
full.

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     5.4. Compliance with Applicable Law. The Award is subject to the condition that if
the listing, registration or qualification of the Shares subject to the Award upon any securities
exchange or under any law, or the consent or approval of any governmental body, or the taking of
any other action is necessary or desirable as a condition of, or in connection with, the vesting or
delivery of such Shares, the Shares subject to the Award shall not vest or be delivered, in whole
or in part, unless such listing, registration, qualification, consent or approval shall have been
effected or obtained, free of any conditions not acceptable to the Company. The Company agrees to
use reasonable efforts to effect or obtain any such listing, registration, qualification, consent
or approval.

     5.5. Delivery of Shares. Subject to Section 5.3, upon the vesting of the Award, in
whole or in part, the Company shall deliver or cause to be delivered the vested Shares. The
Company shall pay all original issue or transfer taxes and all fees and expenses incident to such
delivery, except as otherwise provided in Section 5.3.

     5.6. Award Confers No Rights to Continued Employment. In no event shall the granting
of the Award or its acceptance by the Holder give or be deemed to give the Holder any right to
continued employment by the Company or a Subsidiary.

     5.7. Decisions of Board of Directors or Committee. The Board or the Committee shall
have the right to resolve all questions which may arise in connection with the Award. Any
interpretation, determination or other action made or taken by the Board or the Committee regarding
the Plan or this Agreement shall be final, binding and conclusive.

     5.8. Agreement Subject to the Plan. This Agreement is subject to the provisions of
the Plan, including Section 5.8 relating to a Change in Control, and shall be interpreted in
accordance therewith. The Holder hereby acknowledges receipt of a copy of the Plan.

     6. Miscellaneous Provisions.

     6.1. Employment by Subsidiary. References in this Agreement to employment by the
Company shall also mean employment by a Subsidiary.

     6.2. Successors. This Agreement shall be binding upon and inure to the benefit of any
successor or successors of the Company and any person or persons who shall, upon the death of the
Holder, acquire any rights hereunder in accordance with this Agreement or the Plan.

     6.3. Notices. All notices, requests or other communications provided for in this
Agreement shall be made, if to the Company, to Pulte Homes, Inc., 100 Bloomfield Hills Parkway,
Suite 300, Bloomfield Hills, Michigan 48304, Attention: Vice President and General Counsel and if
to the Holder, to the last known mailing address of the Holder contained in the records of the
Company. All notices, requests or other communications provided for in this Agreement shall be
made in writing either (a) by personal delivery, (b) by facsimile with confirmation of receipt, (c)
by mailing in the United States mails or (d) by express courier service. The notice, request or
other communication shall be deemed to be received upon personal delivery, upon confirmation of
receipt of facsimile transmission, upon receipt by the

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party entitled thereto if by express courier service, or five days after the date mailed if by
United States mails; provided, however, that if a notice, request or other communication is not
received during regular business hours, it shall be deemed to be received on the next succeeding
business day of the Company.

     6.4. Governing Law. This Agreement, the Award and all determinations made and actions
taken pursuant hereto and thereto, to the extent not otherwise governed by the laws of the United
States, shall be governed by the laws of the State of Michigan and construed in accordance
therewith without giving effect to conflicts of laws principles.

     6.5. Counterparts. This Agreement may be executed in two counterparts each of which
shall be deemed an original and both of which together shall constitute one and the same
instrument.

     6.6. Entire Understanding. This Agreement and the Plan contain the entire
understanding of the parties hereto with respect to the subject matter of the Agreement and
supersedes all prior agreements, written or oral, with respect thereto.

     6.7. Jurisdiction; Service of Process. Any action or proceeding seeking to enforce
any provision of, or based on any right arising out of, the Agreement shall be brought against the
parties, as the sole and exclusive forum, in the courts of the State of Michigan in the County of
Oakland, or in the United States District Court for the Eastern District of Michigan, Southern
Division, and each party consents to the jurisdiction of such courts (and of the appropriate
appellate courts) in any such action or proceeding and waives any objection to venue laid therein.

     6.8 Statute of Limitations. Any action, claim or lawsuit relating to this
Agreement must be filed no more than six (6) months after the date of the employment action that is
the subject of the action, claim or lawsuit. The Holder voluntarily waives any statute of
limitations to the contrary.

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Exhibit 10(s)

STOCK OPTION AGREEMENT

UNDER 2002 / 2004 STOCK INCENTIVE PLAN

          Pursuant to the provisions of the Pulte Homes, Inc. 2002 / 2004 Stock Incentive Plan (the
“Plan”), the employee named in the Grant Acceptance (the “Optionee”) has been granted a
non-qualified option (the “Option”) to purchase the number of shares of common stock, $.01 par
value, of Pulte Homes, Inc., a Michigan corporation (the “Company”) (“Common Stock”) set forth in
the Grant Acceptance at the price per share set forth in the Grant Acceptance (the “Exercise
Price”), subject to adjustment as provided herein and in the Plan. Capitalized terms not otherwise
defined herein shall have the meanings ascribed to them in the Plan. This Agreement, together with
the Grant Acceptance, constitute the Stock Option Agreement which is made and entered into as of
the grant date set forth in the Grant Acceptance (the “Grant Date”).

          1. Option Subject to Acceptance of Agreement. The Option shall be null and void
unless the Optionee shall accept this Agreement in the manner prescribed by the Company.

          2. Time and Manner of Exercise of Option.

          2.1. Maximum Term of Option. Except to the extent earlier terminated or earlier
exercised, this Option shall expire on, and in no event may any portion of the Option be exercised
after, the tenth anniversary of the Grant Date (the “Expiration Date”).

          2.2. Exercise of Option. (a) Except as otherwise provided in this Section 2.2, the
Option shall vest and become exercisable as set forth in the Grant Acceptance.

          (b) If the Optionee’s employment with the Company terminates by reason of death or Permanent
Disability, the Option shall become fully vested and exercisable with respect to all of the shares
of Common Stock subject to the Option on the date of the Optionee’s death or the effective date of
his or her termination of employment, as applicable, and may thereafter be exercised by the
Optionee or the Optionee’s Legal Representative until and including the Expiration Date.

          (c) Subject to Section 2.2(d), if the Optionee’s employment with the Company terminates for
any reason other than death, Permanent Disability or Cause after a minimum of five (5) years of
employment with the Company, the Option shall be exercisable only to the extent it is vested and
exercisable on the effective date of the Optionee’s termination of employment and may thereafter be
exercised by the Optionee or the Optionee’s Legal Representative until and including the Expiration
Date; provided, however, that if the Company requests that the Optionee execute a non-competition,
non-solicitation and confidentiality agreement, the Option shall vest and become exercisable in
accordance with Section 2.2(e) unless the Optionee executes such non-competition, non-solicitation
and confidentiality agreement, at such time, and in such form and substance, as shall be
satisfactory to the Company.

          (d) If the Optionee’s employment with the Company terminates for any reason other than death,
Permanent Disability or Cause after satisfaction of the Seventy Year

 

 

Rule, the Optionee shall be treated as continuing employment with the Company on a full-time
basis for purposes of determining the vesting and exercisability of the Option, and the Option
shall continue to vest and shall be exercisable by the Optionee or the Optionee’s Legal
Representative with respect to all of the shares of Common Stock subject to the Option as set forth
in the Grant Acceptance until and including the Expiration Date; provided, however, that if the
Company requests that the Optionee execute a non-competition, non-solicitation and confidentiality
agreement, the Option shall vest and become exercisable in accordance with Section 2.2(e) unless
the Optionee executes such non-competition, non-solicitation and confidentiality agreement, at such
time, and in such form and substance, as shall be satisfactory to the Company.

          (e) If either (i) the Optionee’s employment with the Company terminates prior to the
completion of five (5) years of employment or satisfaction of the Seventy Year Rule for a reason
other than death, Permanent Disability or Cause or (ii) the Optionee was requested to execute, but
has not executed, a non-competition, non-solicitation and confidentiality agreement, at such time,
and in such form and substance, satisfactory to the Company, the Option shall be exercisable only
to the extent it is vested and exercisable on the effective date of the Optionee’s termination of
employment and may thereafter be exercised by the Optionee or the Optionee’s Legal Representative
until and including the earliest to occur of (i) the date which is three (3) months after the
effective date of the Optionee’s termination of employment and (ii) the Expiration Date.

          (f) If the Optionee’s employment with the Company terminates for Cause, the Option shall
terminate automatically as of the end of the day before such termination of employment.

          (g) In the event of a Change in Control, the Option shall immediately become fully vested and
exercisable with respect to all of the shares of Common Stock subject to the Option on the date of
the Change in Control and may thereafter be exercised by the Optionee or the Optionee’s Legal
Representative until and including the Expiration Date.

          (h) As used herein, the following terms have the meanings ascribed below:

          (i) The term “Cause” shall mean a determination by the Company that the Optionee has (i)
willfully and continuously failed to substantially perform the duties assigned by the Company or a
Subsidiary with which the Optionee is employed (other than a failure resulting from the Optionee’s
disability), (ii) willfully engaged in conduct which is demonstrably injurious to the Company or
any Subsidiary, monetarily or otherwise, including conduct that, in the reasonable judgment of the
Company, does not conform to the standard of the Company’s executives or employees, or (iii)
engaged in any act of dishonesty, the commission of a felony, or a significant violation of any
statutory or common law duty of loyalty to the Company or any Subsidiary.

          (ii) The term “Change in Control” shall mean:

     (A) the acquisition by any individual, entity or group (a “Person”), including any
“person” within the meaning of Section 13(d)(3) or 14(d)(2) of the

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Exchange Act, of beneficial ownership within the meaning of Rule 13d-3 promulgated
under the Exchange Act, of 40% or more of either (i) the then outstanding shares of common
stock of the Company (the “Outstanding Common Stock”) or (ii) the combined voting power of
the then outstanding securities of the Company entitled to vote generally in the election of
directors (the “Outstanding Voting Securities”); excluding, however, the following: (A) any
acquisition directly from the Company (excluding any acquisition resulting from the exercise
of an exercise, conversion or exchange privilege unless the security being so exercised,
converted or exchanged was acquired directly from the Company), (B) any acquisition by the
Company, (C) any acquisition by an employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company, (D) any acquisition
by any corporation pursuant to a transaction which complies with clauses (i), (ii) and (iii)
of subsection (C) of this Section 2.2(h)(ii) or (E) any acquisition by any one or more of
William J. Pulte, his spouse, any trust or other entity established for the benefit of
either or both of such persons, or any charitable organization established by either or both
of such persons (“Exempt Persons”); provided further, that for purposes of clause (B), if
any Person (other than the Company, any one or more Exempt Persons or any employee benefit
plan (or related trust) sponsored or maintained by the Company or any corporation controlled
by the Company) shall become the beneficial owner of 40% or more of the Outstanding Common
Stock or 40% or more of the Outstanding Voting Securities by reason of an acquisition by the
Company, and such Person shall, after such acquisition by the Company, become the beneficial
owner of any additional shares of the Outstanding Common Stock or any additional Outstanding
Voting Securities and such beneficial ownership is publicly announced, such additional
beneficial ownership shall constitute a Change in Control;

     (B) individuals who, as of the date hereof, constitute the Board of Directors of the
Company (the “Incumbent Board”) cease for any reason to constitute at least a majority of
such Board of Directors; provided that any individual who becomes a director of the Company
subsequent to the date hereof whose election, or nomination for election by the Company’s
stockholders, was approved by the vote of at least a majority of the directors then
comprising the Incumbent Board shall be deemed a member of the Incumbent Board; and provided
further, that any individual who was initially elected as a director of the Company as a
result of an actual or threatened solicitation by a Person other than the Board of Directors
for the purpose of opposing a solicitation by any other Person with respect to the election
or removal of directors, or any other actual or threatened solicitation of proxies or
consents by or on behalf of any Person other than the Board of Directors shall not be deemed
a member of the Incumbent Board;

     (C) the consummation of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the Company (a “Corporate
Transaction”); excluding, however, a Corporate Transaction pursuant to which (i) all or
substantially all of the individuals or entities who are the beneficial owners,
respectively, of the Outstanding Common Stock and the Outstanding Voting Securities
immediately prior to such Corporate Transaction will beneficially own, directly or
indirectly, more than 60% of, respectively, the outstanding shares of common stock, and the
combined voting power of the outstanding securities entitled to vote generally in the
election of

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directors, as the case may be, of the corporation resulting from such Corporate Transaction
(including, without limitation, a corporation which as a result of such transaction owns the
Company or all or substantially all of the Company’s assets either directly or indirectly)
in substantially the same proportions relative to each other as their ownership, immediately
prior to such Corporate Transaction, of the Outstanding Common Stock and the Outstanding
Voting Securities, as the case may be, (ii) no Person (other than: the Company; any
employee benefit plan (or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company; the corporation resulting from such Corporate
Transaction; and any Person which beneficially owned, immediately prior to such Corporate
Transaction, directly or indirectly, 40% or more of the Outstanding Common Stock or the
Outstanding Voting Securities, as the case may be) will beneficially own, directly or
indirectly, 40% or more of, respectively, the outstanding shares of common stock of the
corporation resulting from such Corporate Transaction or the combined voting power of the
outstanding securities of such corporation entitled to vote generally in the election of
directors and (iii) individuals who were members of the Incumbent Board will constitute at
least a majority of the members of the board of directors of the corporation resulting from
such Corporate Transaction; or

     (D) the consummation of a plan of complete liquidation or dissolution of the Company.

          (iii) The term “Legal Representative” shall mean an executor, administrator, legal
representative, guardian or similar person.

          (iv) The term “Permanent Disability” shall mean a sickness or disability extending for more
than three (3) consecutive months as a result of which the Optionee is unable to perform his or her
duties for the Company or a Subsidiary, as applicable, in the required and customary manner and
that will continue for not less than an additional three (3) months, as determined by the Company
in its sole discretion.

          (v) The term “Seventy Year Rule” shall mean that the sum of (a) the Optionee’s chronological
age (not the Optionee’s age on the nearest birthday) (excluding fractional periods) and (b) the
total number of twelve (12) month periods (beginning with the date on which the Optionee’s
employment with the Company commenced) during which the Optionee was employed by the Company on a
full-time basis (excluding fractional periods and any periods of employment with a company or other
entity before such company or entity was acquired in whole or in part by the Company or a
Subsidiary if such company or entity was acquired after December 31, 2000) equals or exceeds
seventy (70) years.

          2.3. Method of Exercise. Subject to the limitations set forth in this Agreement, the
Option may be exercised by the Optionee (1) by giving written notice to the Company specifying the
number of whole shares of Common Stock to be purchased, accompanied by payment therefor in full (or
arrangement made for such payment to the Company’s satisfaction) either (A) in cash, (B) by
delivery to the Company (either actual delivery or by attestation procedures established by the
Company) of previously acquired shares of Common Stock for which the Optionee has good title, free
and clear of all liens and encumbrances and which the

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Optionee either has held for at least six months or purchased on the open market (“Mature
Shares”) having an aggregate Fair Market Value, determined as of the date of exercise, equal to the
aggregate purchase price payable pursuant to the Option by reason of such exercise, (C) except as
may be prohibited by applicable law, in cash by a broker-dealer acceptable to the Company to whom
the Optionee has submitted an irrevocable notice of exercise or (D) a combination of (A), (B), and
(C), and (2) by executing such documents as the Company may reasonably request. “Fair Market
Value,” as of a specified date, means the fair market value of a share of Common Stock as
determined by the Committee and may be determined by taking the mean between the highest and lowest
quoted selling prices of Common Stock on any exchange or other market on which shares of Common
Stock are traded on such date, or if there are not sales on such date, on the next following day on
which there are sales. Any fraction of a share of Common Stock which would be required to pay such
purchase price shall be disregarded and the remaining amount due shall be paid in cash by the
Optionee. No certificate representing a share of Common Stock shall be delivered until the full
purchase price therefor and any withholding taxes thereon, as described in Section 3.3, have been
paid (or arrangement made for such payment to the Company’s satisfaction).

          2.4. Termination of Option. In no event may the Option be exercised after it
terminates as set forth in this Section 2.4. The Option shall terminate, to the extent not
exercised pursuant to Section 2.3 or earlier terminated pursuant to Section 2.2(e) or (f), on the
Expiration Date.

          3. Additional Terms and Conditions of Option.

          3.1. Nontransferability of Option. The Option may not be transferred by the Optionee
other than by will or the laws of descent and distribution or pursuant to beneficiary designation
procedures approved by the Company. Except to the extent permitted by the foregoing sentence,
during the Optionee’s lifetime the Option is exercisable only by the Optionee or the Optionee’s
Legal Representative. Except to the extent permitted by the foregoing, the Option may not be sold,
transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by
operation of law or otherwise) or be subject to execution, attachment or similar process.

          3.2. Investment Representation. The Optionee hereby represents and covenants that (a)
any shares of Common Stock purchased upon exercise of the Option will be purchased for investment
and not with a view to the distribution thereof within the meaning of the Securities Act of 1933,
as amended (the “Securities Act”), unless such purchase of shares of Common Stock has been
registered under the Securities Act and any applicable state securities laws; (b) any subsequent
sale of any such shares of Common Stock shall be made either pursuant to an effective registration
statement under the Securities Act and any applicable state securities laws, or pursuant to an
exemption from registration under the Securities Act and such state securities laws; and (c) if
requested by the Company, the Optionee shall submit a written statement, in form satisfactory to
the Company, to the effect that such representation (x) is true and correct as of the date of
purchase of any shares of Common Stock hereunder or (y) is true and correct as of the date of any
sale of any such shares of Common Stock, as applicable. As a further condition precedent to any
exercise of the Option, the Optionee shall comply with all regulations and requirements of any
regulatory authority having control of or supervision over

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the issuance or delivery of the shares of Common Stock and, in connection therewith, shall
execute any documents which the Board of Directors or the Committee shall in its sole discretion
deem necessary or advisable.

          3.3. Withholding Taxes. (a) As a condition precedent to the delivery of Common Stock
upon exercise of the Option, the Optionee shall, upon request by the Company, pay to the Company in
addition to the purchase price of the shares of Common Stock, such amount of cash as the Company
may be required, under all applicable federal, state, local or other laws or regulations, to
withhold and pay over as income or other withholding taxes (the “Required Tax Payments”) with
respect to such exercise of the Option. If the Optionee shall fail to advance the Required Tax
Payments after request by the Company, the Company may, in its discretion, deduct any Required Tax
Payments from any amount then or thereafter payable by the Company to the Optionee or withhold
shares of Common Stock.

          (b) The Optionee may elect to satisfy his or her obligation to advance the Required Tax
Payments by any of the following means: (1) a cash payment to the Company pursuant to Section
3.3(a), (2) delivery (either actual delivery or by attestation procedures established by the
Company) to the Company of Mature Shares having an aggregate Fair Market Value, determined as of
the date the obligation to withhold or pay taxes first arises in connection with the Option (the
“Tax Date”), equal to the Required Tax Payments, (3) except as may be prohibited by applicable law,
a cash payment by a broker-dealer acceptable to the Company to whom the Optionee has submitted an
irrevocable notice of exercise, or (4) any combination of (1) and (2). Any fraction of a share of
Common Stock which would be required to satisfy any such obligation shall be disregarded and the
remaining amount due shall be paid in cash by the Optionee. No share of Common Stock shall be
delivered until the Required Tax Payments have been satisfied in full.

          3.4. Adjustment. In the event of any stock split, stock dividend, recapitalization,
reorganization, merger, consolidation, combination, exchange of shares, liquidation, spin-off or
other similar change in capitalization or event, or any distribution to holders of Common Stock
other than a regular cash dividend, the number and class of securities subject to the Option and
the purchase price per security shall be appropriately adjusted by the Committee without an
increase in the aggregate purchase price. If any adjustment would result in a fractional security
being subject to the Option, such fractional security shall be disregarded. The decision of the
Committee regarding any such adjustment shall be final, binding and conclusive.

          3.5. Change in Control. In the event of a Change of Control, the Option shall
immediately become fully vested and exercisable in accordance with Section 2.2(g) and the
Committee, as constituted before such Change of Control, may, in its discretion, take any one or
more of the following actions: (a) provide for the repurchase of the Option, in whole or in part,
upon the Optionee’s request, for an amount of cash equal to the excess, if any, of (i) the Fair
Market Value on the such date over (ii) the exercise price of the Option; (b) make such adjustment
to the Option as the Committee deems appropriate to reflect such Change in Control; or (c) cause
the Option to be assumed, or new rights substituted therefor, by the acquiring or surviving
corporation after such Change in Control.

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          3.6. Compliance with Applicable Law. The Option is subject to the condition that if
the listing, registration or qualification of the shares of Common Stock subject to the Option upon
any securities exchange or under any law, or the consent or approval of any governmental body, or
the taking of any other action is necessary or desirable as a condition of, or in connection with,
the purchase or delivery of shares of Common Stock hereunder, the Option may not be exercised, in
whole or in part, unless such listing, registration, qualification, consent or approval shall have
been effected or obtained, free of any conditions not acceptable to the Company. The Company
agrees to use reasonable efforts to effect or obtain any such listing, registration, qualification,
consent or approval.

          3.7. Delivery of Shares. Subject to Section 3.3, upon the exercise of the Option, in
whole or in part, the Company shall deliver or cause to be delivered the number of shares of Common
Stock purchased against full payment therefore. The Company shall pay all original issue or
transfer taxes and all fees and expenses incident to such delivery, except as otherwise provided in
Section 3.3.

          3.8. Option Confers No Rights as Stockholder. The Optionee shall not be entitled to
any privileges of ownership with respect to shares of Common Stock subject to the Option unless and
until purchased and delivered upon the exercise of the Option, in whole or in part, and the
Optionee becomes a stockholder of record with respect to such delivered shares; and the Optionee
shall not be considered a stockholder of the Company with respect to any such shares of Common
Stock not so purchased and delivered.

          3.9. Option Confers No Rights to Continued Employment. In no event shall the granting
of the Option or its acceptance by the Optionee give or be deemed to give the Optionee any right to
continued employment by the Company or a Subsidiary.

          3.10. Decisions of Board or Committee. The Board of Directors or the Committee shall
have the right to resolve all questions which may arise in connection with the Option or its
exercise. Any interpretation, determination or other action made or taken by the Board of
Directors or the Committee regarding the Plan or this Agreement shall be final, binding and
conclusive.

          3.11. Company to Reserve Shares. The Company shall at all times prior to the
expiration or termination of the Option reserve and keep available, either in its treasury or out
of its authorized but unissued shares of Common Stock, the full number of shares of Common Stock
subject to the Option from time to time.

          3.12. Agreement Subject to the Plan. This Agreement is subject to the provisions of
the Plan and shall be interpreted in accordance therewith. The Optionee hereby acknowledges
receipt of a copy of the Plan.

          4. Miscellaneous Provisions.

          4.1. Designation as Nonqualified Stock Option. The Option is hereby designated as not
constituting an “incentive stock option” within meaning of section 422 of the Code; this Agreement
shall be interpreted and treated consistently with such designation.

7

 

          4.2. Employment by Subsidiary. References in this Agreement to employment by the
Company shall include employment by a Subsidiary.

          4.3. Successors. This Agreement shall be binding upon and inure to the benefit of any
successor or successors of the Company and any person or persons who shall, upon the death of the
Optionee, acquire any rights hereunder in accordance with this Agreement or the Plan.

          4.4. Notices. All notices, requests or other communications provided for in this
Agreement shall be made, if to the Company, to Pulte Homes, Inc., 100 Bloomfield Hills Parkway,
Suite 300, Bloomfield Hills, MI 48304, Attention: Vice President and General Counsel and if to the
Optionee, to the last known mailing address of the Optionee contained in the records of the
Company. All notices, requests or other communications provided for in this Agreement shall be
made in writing either (a) by personal delivery, (b) by facsimile with confirmation of receipt, (c)
by mailing in the United States mails or (d) by express courier service. The notice, request or
other communication shall be deemed to be received upon personal delivery, upon confirmation of
receipt of facsimile transmission, upon receipt by the party entitled thereto if by express courier
service, or five days after the date mailed if by United States mails; provided, however, that if a
notice, request or other communication is not received during regular business hours, it shall be
deemed to be received on the next succeeding business day of the Company.

          4.5. Governing Law. This Agreement, the Option and all determinations made and
actions taken pursuant hereto and thereto, to the extent not governed by the laws of the United
States, shall be governed by the laws of the State of Michigan and construed in accordance
therewith without giving effect to principles of conflicts of laws.

          4.6. Counterparts. This Agreement may be executed in two counterparts each of which
shall be deemed an original and both of which together shall constitute one and the same
instrument.

          4.7. Entire Understanding. This Agreement and the Plan contain the entire
understanding of the parties hereto with respect to the subject matter of the Agreement and
supersedes all prior agreements, written or oral, with respect thereto.

          4.8. Jurisdiction; Service of Process. Any action or proceeding seeking to enforce
any provision of, or based on any right arising out of, the Agreement shall be brought against the
parties, as the sole and exclusive forum, in the courts of the State of Michigan in the County of
Oakland, or in the United States District Court for the Eastern District of Michigan, Southern
Division, and each party consents to the jurisdiction of such courts (and of the appropriate
appellate courts) in any such action or proceeding and waives any objection to venue laid therein.

8

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