Document:

exv10w4

 

Exhibit 10.4

AMENDED AND RESTATED

1998 CENTEX CORPORATION

EMPLOYEE NON-QUALIFIED STOCK OPTION PLAN

(Amended and Restated Effective January 1, 2008)

1. Purpose of the Plan.

     This 1998 Centex Corporation Employee Non-Qualified Stock Option Plan (the “Plan”) is
intended as an employment incentive to retain in the employ of Centex Corporation (the
“Company”), and any Affiliate (including any entity that becomes an Affiliate), persons of
training, experience and ability, to attract new employees whose services are considered valuable,
to encourage the sense of proprietorship of such persons, and to stimulate the active interest of
such persons in the development and financial success of the Company. For purposes of the Plan,
“Affiliate” shall mean any direct or indirect subsidiary or parent of the Company and any
partnership, joint venture, limited liability company or other business venture or entity in which
the Company owns at least 50% of the ownership interest in such entity, as determined by the
Committee in its sole and absolute discretion (such determination by the Committee to be
conclusively established by the grant of options by the Committee to an officer or employee of such
an entity); provided, however, that such entity shall be considered an Affiliate only if it would
be aggregated and treated as a single employer with the Company under Section 414(b) of the
Internal Revenue Code (the “Code”) (controlled group of corporations) or Section 414(c) of
the Code (group of trades or businesses under common control), as applicable, but in applying such
Sections of the Code, an ownership threshold of 50% shall be used as a substitute for the 80%
minimum ownership threshold that appears in, and otherwise must be used when applying, the
applicable provisions of (a) Section 1563 of the Code and the regulations thereunder for
determining a controlled group of corporations under Section 414(b) of the Code, and (b) Treasury
Regulation Section 1.414(c)-2 for determining the trades or businesses that are under common
control under Section 414(c) of the Code. It is further intended each option granted pursuant to
the Plan (herein, an “Option”) shall constitute non-qualified stock options within the
meaning of Section 83 of the Code. Options granted hereunder are intended to be exempt from the
requirements of Section 409A of the Code, and the Plan shall be interpreted and administered in a
manner consistent with that intent.

2. Administration of the Plan.

     The Board of Directors shall appoint and maintain a Compensation and Stock Option Committee
(hereinafter called the “Committee”) of the Board of Directors to administer the Plan.
Subject to the terms and conditions of the Plan, the Committee shall have full power and authority
to designate persons to whom Options will be granted, to determine the terms and provisions of
respective option agreements (which need not be identical), and to interpret the provisions and
supervise the administration of the Plan. The Committee shall have the authority, exercisable in
its sole discretion, to grant Options containing such terms and conditions, consistent with the
provisions of the Plan, as the Committee shall determine.

3. Designation of Participants.

     The persons eligible for participation in the Plan as recipients of Options shall include all
employees of the Company or of any Affiliate, including employees of any entity that becomes an
Affiliate after the date that the Plan is adopted, other than any of the following persons (herein,
an “Ineligible Person”):

     (a) any person who is an executive officer, as defined by Rule 3b-7 promulgated under the
Securities Exchange Act of 1934, as amended, or director of the Company;

     (b) any “officer” of the Company as defined by Rule 16a-1(f) promulgated under the Securities
Exchange Act of 1934, as amended; or

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     (c) any “covered employee” of the Company as defined by Section 162(m)(3) of the Code.

     Each Option granted hereunder shall be evidenced by an agreement between the Company and the
Optionee, which shall contain such terms and conditions as the Committee shall determine in its
sole and absolute discretion. Any person who has been granted an Option hereunder (herein, an
“Optionee”) may be granted an additional Option or Options, if the Committee shall so
determine. Participation in the Plan shall not preclude an Optionee from participating in any
other stock option, benefit, bonus, or other compensation plan which the Company or any Affiliate
has adopted, or may, from time to time, adopt for the benefit of its employees.

4. Stock Reserved for the Plan.

     Subject to any adjustment provided in Paragraph 9 hereof, a total of 5,500,000 shares of
common stock, $0.25 par value, of the Company (the “Stock”) shall be subject to the Plan.
As of March 31, 2006, the number of shares available for Option issuance is 96,552. The shares of
Stock subject to the Plan shall consist of unissued shares or previously issued shares reacquired
and held by the Company, or any Affiliate, and such amount of shares shall be and hereby is
reserved for delivery under the Plan. Any of such shares which may remain unsold and which are not
subject to outstanding Options at the termination of the Plan shall cease to be reserved for the
purpose of the Plan, but until termination of the Plan the Company shall at all times reserve a
sufficient number of shares of Stock to meet the requirements of the Plan. Should any Option
expire or be canceled prior to its exercise or relinquishment in full, the shares theretofore
subject to such Option may again be subjected to an Option under the Plan. If the purchase price
or tax withholding is permitted to be satisfied by the tender or withholding of shares of Stock to
the Company (by either actual delivery or attestation), the number of shares of Stock tendered or
withheld shall be eligible for reissuance under the Plan.

5. Purchase Price.

     (a) The purchase price of each share placed under option pursuant to the Plan (a
“Share”) shall be determined by the Committee, but in no event shall be less than 100% of
the Fair Market Value of such Share on the date the Option is granted. If an Option is granted as
part of an Optionee’s compensation package at the commencement of an Optionee’s employment by the
Company or an Affiliate, the Option shall be deemed to have been granted on the date of
commencement of such Optionee’s employment by the Company or any Affiliate (the “Commencement
Date”) and the purchase price of a Share shall be equal to the Fair Market Value of such Share
on the Commencement Date, so long as such Option is not granted more than ninety (90) days
following the Commencement Date. Notwithstanding the foregoing, to the extent that the grant date
and purchase price of an Option that is granted as part of an Optionee’s compensation package must
be determined in a different manner in order to be exempt from Section 409A of the Code, the
requirements of Section 409A of the Code and the Treasury Regulations and other guidance thereunder
shall control.

     (b) “Fair Market Value” of a share of Stock means, as of a particular date, (A) if the
Stock is listed on a national securities exchange, the closing price per share of such Stock, as
reported on the consolidated transaction reporting system for the New York Stock Exchange or such
other national securities exchange on which the Stock is listed that is at the applicable time the
principal market for the Stock, or any other source selected by the Committee, or, if there shall
have been no such sales so reported on that date, on the last preceding date on which such a sale
was so reported, (B) if the Stock is not so listed, the mean between the closing bid and asked
price of the Stock on that date, or, if there are no quotations available for such date, on the
last preceding date on which such a quotation was reported, as reported on a recognized quotation
system selected by the Committee, or, if not so reported, then as reported by The Pink Sheets LLC
(or a similar organization or agency succeeding to its functions of reporting prices), or (C) at
the discretion of the Committee, the value of Stock determined in good faith by the Committee. Any
determination of Fair Market
Value shall be consistent with Section 409A of the Code and the Treasury Regulations and other
guidance thereunder.

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6. Option Period.

     The Options granted under the Plan shall be for any term set by the Committee, but not more
than ten (10) years from the date of granting of each Option. All rights to exercise an Option
shall terminate within three (3) months after the date the Optionee ceases to be an employee of the
Company or any Affiliate, except that

     (a) the Committee, in its discretion, may provide in new option grants or amend outstanding
Options to provide an extended period of time during which an Optionee can exercise an Option up to
the maximum permissible period which such Optionee’s Option would have been exercisable in the
absence of the Optionee ceasing to be an employee of the Company or an Affiliate but only to the
extent such extension does not result in a modification of the Option for purposes of Section 409A
of the Code;

     (b) if an Optionee ceases to be employed by the Company or an Affiliate by reason of such
Optionee’s death, all rights to exercise such Option shall terminate fifteen (15) months after such
death; and

     (c) if the Optionee is terminated for cause, as determined by the Committee in its sole and
absolute discretion, any Option granted to such Optionee hereunder shall terminate on the date of
such termination.

     (d) Attached hereto are resolutions adopted by the Compensation and Management Development
Committee of the Board of Directors of the Company, now the “Committee”, relating to vesting and
exercise, which shall apply only to Options granted prior to April 1, 2006.

7. Exercise of Options.

     (a) Any Option granted hereunder shall be exercisable from time to time under the terms
specified in the Plan, by the Committee, or in the agreement relating to the grant of such Option.

     (b) Each exercise of an Option or a portion of an Option shall be evidenced by a notice in
writing by or on behalf of the Optionee to the Company, stating the number of shares with respect
to which the Option is being exercised.

     (c) Options may be exercised solely by the Optionee or a Permitted Transferee (hereafter
defined).

     (d) The purchase price of the Shares for which an Option is exercised must be paid prior to
issuance of the Shares. Such purchase price shall be payable (i) in cash, certified or cashiers’
check, or wire transfer, (ii) at the option of the holder of such Option, in Stock theretofore
owned by such holder by either actual delivery of shares or by attestation, or through the
withholding by the Company from the Shares otherwise issuable pursuant to the Option of an
appropriate number of Shares, (iii) by a combination of cash and such delivery or withholding of
Stock; or (iv) by delivery of a properly executed exercise notice together with irrevocable
instructions to a broker satisfactory to the Company to promptly deliver to the Company the amount
of sale or loan proceeds required to pay the exercise price and applicable withholding taxes. For
purposes of determining the amount, if any, of the purchase price satisfied by payment in Stock,
such Stock shall be valued at its Fair Market Value on the date of exercise. Any Stock delivered
in satisfaction of all or a portion of the purchase price shall be appropriately endorsed for
transfer and assignment to the Company. No holder of an Option shall be, or have any of the rights
or privileges of, a shareholder of the Company in respect of any Shares unless and until
certificates representing such Shares shall have been delivered by the Company
to such holder or such holder’s interest in such shares shall have been evidenced by an entry
on the Company’s books and records.

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     (e) If any law or regulation requires the Company to take any action with respect to the
Shares specified in such notice, the time for delivery thereof, which would otherwise be as
promptly as possible, shall be postponed for the period of time necessary to take such action.

8. Assignability.

     Unless otherwise permitted by the Committee, no Option or interest therein shall be
transferable by the Optionee otherwise than by will, the applicable laws of descent and
distribution, or a domestic relations order. Any person to whom an Option is transferred in
accordance with this Section 8 is referred to herein as a “Permitted Transferee”.

9. Adjustments.

     (a) In the event of any subdivision or consolidation of outstanding Stock of the Company,
declaration of a dividend payable in shares of Stock of the Company or other stock split, then (i)
the number of shares of Stock reserved under this Plan, (ii) the number of shares of Stock covered
by outstanding Options, and (iii) the purchase price per share of Stock in respect of such Options
shall each be proportionately adjusted to reflect such transaction. In the event of any other
recapitalization or capital reorganization of the Company, any consolidation or merger of the
Company with another corporation or entity, the adoption by the Company of any plan of exchange
affecting shares of Stock of the Company or any distribution to holders of shares of Stock of the
Company of securities or property (other than normal cash dividends or dividends payable in shares
of Stock of the Company), the Board shall make appropriate adjustments to (i) the number of Shares
reserved under this Plan, (ii) the number of Shares covered by outstanding Options, and (iii) the
purchase price per share in respect of such Options to reflect such transaction in accordance with
Treasury Regulation Section 1.409A-1(b)(5)(v)(D); provided that such adjustments under (ii) and
(iii) shall only be such as are necessary to maintain the proportionate interest of the holders of
the Options and preserve, without increasing, the value of such Options. In the event of a
corporate merger, consolidation, acquisition of property or stock, separation, reorganization or
liquidation, the Board shall be authorized (x) to assume under the Plan previously issued
compensatory options, or to substitute new Options for previously issued compensatory Options as
part of such adjustment or (y) to cancel Options and give the Participants who are the holders of
such Options notice and opportunity to exercise for 30 days prior to such cancellation.

     (b) Except as is otherwise expressly provided herein, the issue by the Company of shares of
its capital stock of any class, or securities convertible into shares of capital stock of any
class, either in connection with a direct sale or upon the exercise of rights or warrants to
subscribe therefor, or upon conversion of shares or obligations of the Company convertible into
such shares or other securities, shall not affect, and no adjustment by reason thereof shall be
made with respect to, the number of or purchase price of Shares. Furthermore, the presence of
outstanding Options granted under the Plan shall not affect in any manner the right or power of the
Company to make, authorize or consummate (i) any or all adjustments, recapitalizations,
reorganizations or other changes in the Company’s capital structure or its business; (ii) any
merger or consolidation of the Company; (iii) any issue by the Company of debt securities or
preferred or preference stock (whether or not such issue is prior to, on a party with or junior to
the Stock); (iv) the dissolution or liquidation of the Company; (v) any sale, transfer or
assignment of all or any part of the assets or business of the Company; or (vi) any other corporate
act or proceeding, whether of a similar character or otherwise.

     (c) Notwithstanding anything to the contrary above, a dissolution or liquidation of the
Company, a merger (other than a merger effecting a reincorporation of the Company in another state)
or consolidation in which the Company is not the surviving corporation (or survives only as a
subsidiary of another corporation in a transaction in which the stockholders of the parent of the
Company and their proportionate interests therein
immediately after the transaction are not substantially identical to the stockholders of the
Company and their proportionate interests therein immediately prior to the transaction), a
transaction in which another

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corporation becomes the owner of 50% or more of the total combined
voting power of all classes of stock of the Company, or a change in control (as specified below),
shall cause every Option then outstanding to become exercisable in full immediately prior to such
dissolution, liquidation, merger, consolidation, transaction, or change in control, to the extent
not theretofore exercised, without regard to the determination as to the periods and installments
of exercisability contained in the Agreements if (and only if) such Options have not at that time
expired or been terminated. For purposes of this paragraph, a change in control shall be deemed to
have taken place if: a third person, including a “group” as defined in Section 13(d)(3) of the Act,
becomes the beneficial owner of shares of the Company having fifty percent (50%) or more of the
total number of votes that may be cast for the election of directors of the Company; or as a result
of, or in connection with, a contested election for directors, the persons who were directors of
the Company immediately before such election shall cease to constitute a majority of the Board.
Notwithstanding the foregoing provisions of this paragraph:

     (i) an event, transaction, or corporate action shall not have the effect of
accelerating the exercisability of Options if: (A) persons who were the directors of the
Company and persons who were the executive officers of the Company as of six months prior to
such event immediately after such event constitute a majority of the directors and
constitute a majority of executive officers, respectively, for, and own in the aggregate at
least ten percent of the voting securities or equity interests of, the Company or the
surviving or resulting corporation or the parent of such surviving or resulting corporation;
and (B) if the Company is not the surviving or resulting corporation, such surviving or
resulting corporation or parent of such surviving or resulting corporation substitutes
substantially identical options for any outstanding Options; and

     (ii) in the event of any dissolution, merger, consolidation, transaction, or change in
control, the Board may completely satisfy and extinguish all obligations of the Company and
its Affiliates with respect to any Option outstanding on the date of such event by
delivering to the Optionee cash in an amount equal to the difference between the aggregate
purchase price for Shares under the Option and the Fair Market Value of such Shares on the
date of such event, such payment to be made within a reasonable time after such event.

10. Tax Withholding.

     The Company shall have the right to deduct applicable taxes from any Option and withhold, at
the time of delivery of Shares under the Plan, an appropriate number of Shares for payment of taxes
required by law or to take such other action as may be necessary in the opinion of the Company to
satisfy all obligations for withholding of such taxes. The Committee may also permit withholding
to be satisfied by the transfer to the Company of Stock theretofore owned by the holder of the
Option with respect to which withholding is required. If Shares or Stock are used to satisfy tax
withholding, such Shares or Stock shall be valued based on the Fair Market Value when the tax
withholding is required to be made.

11. Effective Date of Plan.

     The effective date of the Plan shall be February 19, 1998. No Option shall be granted
pursuant to the Plan after May 13, 2005.

12. Amendment, Modification, Suspension or Termination.

     The Board may amend, modify, suspend or terminate the Plan at any time for the purpose of
meeting or addressing any changes in legal requirements or for any other purpose permitted by law,
except that no amendment, modification, suspension or termination shall be made (i) that would
impair the rights of any Optionee under any Option previously granted to such Optionee without such
Optionee’s written consent,
(ii) prior to approval by the Company’s shareholders if such approval is then required
thereby, or (iii) that would reduce the purchase price of any outstanding Option, other than as
provided by Section 9(a)(ii).

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13. Requirements of Law.

     (a) The Plan, and the granting and exercise of Options hereunder, and the obligation of the
Company to sell and deliver shares under such Options, shall be subject to all applicable laws,
rules and regulations, and to such approvals by any governmental agencies or national securities
exchanges as may be required.

     (b) Nothing herein or in any Agreement executed or Option granted hereunder shall require the
Company to deliver any Shares upon exercise of an Option if such delivery would, in the opinion of
counsel for the Company, constitute a violation of the Securities Act of 1933, as amended, or any
similar or superseding statute or statutes, or any other applicable statute or regulation, as then
in effect. Upon the exercise of an Option or portion or part thereof, the Optionee may be required
to give to the Company satisfactory evidence that he is acquiring such Shares for the purpose of
investment only and not with a view to their distribution; provided, however, if or to the extent
that the Shares subject to the Option shall be included in a registration statement filed by the
Company, or one of its Affiliates, such investment representation shall be abrogated.

14. Miscellaneous.

     (a) Nothing contained in the Plan shall confer upon any Optionee the right to continue in the
employ of the Company or any Affiliate, or interfere in any way with the rights of the Company or
any Affiliate to terminate his employment at any time.

     (b) Any payment of cash or any delivery of Shares to the Optionee, or to an Optionee’s
Permitted Transferee, in accordance with the provisions hereof, shall, to the extent thereof, be in
full satisfaction of all claims of such person with respect to the Option being exercised (or
portion thereof). The Committee may require any Optionee, or Permitted Transferee, as a condition
precedent to such payment or delivery, to execute a release and receipt therefor in such form as it
shall determine.

     (c) Neither the Committee nor the Company guarantees the Shares from loss or depreciation.

     (d) Records of the Company and its Affiliates regarding an individual’s period of employment,
termination of employment and the reason therefor, leaves of absence, re-employment and other
matters shall be conclusive for all purposes hereunder, unless determined by the Committee to be
incorrect in its sole and absolute discretion.

     (e) The Company assumes no obligation or responsibility to an Optionee or any Permitted
Transferee for any act of, or failure to act on the part of, the Committee.

     (f) If any provision of the Plan is held to be illegal or invalid for any reason, the
illegality or invalidity shall not affect the remaining provisions of the Plan, but such provision
shall be fully severable and the Plan shall be construed and enforced as if the illegal or invalid
provision had never been included herein.

     (g) The titles and headings of Sections are included for convenience of reference only and are
not to be considered in construction of the provisions hereof.

     (h) All questions arising with respect to the provisions of the Plan shall be determined by
application of the laws of the State of Nevada except to the extent Nevada law is preempted by
federal law. The obligation of the Company to sell and deliver Shares hereunder is subject to
applicable laws and to the
approval of any governmental authority required in connection with the authorization,
issuance, sale, or delivery of such Shares.

     (i) Words used in the masculine shall apply to the feminine where applicable, and wherever the
context of the Plan dictates, the plural shall be read as the singular and the singular as the
plural.

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Resolution related to stock options adopted by the Compensation and Management Development
Committee of the Board of Directors of Centex Corporation on May 13, 2004.

     RESOLVED, that all non-qualified options held by Full Time Employees to acquire common stock
of Centex Corporation awarded under any of the stock plans listed below, whether awarded before or
after May 13, 2004, shall be subject to the following from and after May 13, 2004:

	 	1.	 	If an optionee shall voluntarily terminate employment and at such time he or
she is age 55 or older, has at least 10 Years of Service and the sum of age and Years
of Service equals at least 70, then all non-qualified options held by him or her shall
immediately vest upon the termination of employment (“Vested Retirement”).
	 
	 	2.	 	All rights to exercise such vested options will terminate 12 months following
the date of such Vested Retirement. However, to the extent that an option agreement
provides a longer time to exercise following voluntary termination of employment, then
such agreement will control.
	 
	 	3.	 	As used herein: “Full Time Employee” means a person actively and regularly
engaged in work at least 40 hours a week; and “Years of Service” means an optionee’s
years of employment with Centex Corporation or any of its Affiliates. An optionee
shall be credited with a Year of Service on each anniversary of the date on which he or
she was first employed by Centex Corporation or its Affiliate, provided that the
optionee continues to be employed by such employer on such anniversary date.
	 
	 	4.	 	The stock plans covered are:

	 	•	 	Centex Corporation Amended and Restated 1987 Stock Option Plan
	 
	 	•	 	Seventh Amended and Restated 1998 Centex Corporation Employee Non-Qualified
Stock Option Plan
	 
	 	•	 	Amended and Restated Centex Corporation 2001 Stock Plan
	 
	 	•	 	Amended and Restated Centex Corporation 2003 Equity Incentive Plan

     FURTHER RESOLVED, that the appropriate officers of the Corporation are hereby directed to take
all steps that they deem necessary or appropriate to communicate the substance of the foregoing
resolution to option holders who are affected and, where they deem necessary, to document the
substance of this resolution by way of amendments to the stock plans and to existing option
agreements.

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Exhibit 10.5

CENTEX CORPORATION

AMENDED AND RESTATED 1987 STOCK OPTION PLAN

(Amended and Restated Effective January 1, 2008)

1. Purpose

     The purpose of this Plan is to assist Centex Corporation, a Nevada corporation, in attracting
and retaining as officers and key employees of the Company and its Affiliates, and as non-employee
directors of the Company, individuals of training, experience and ability and to furnish additional
incentive to such individuals by encouraging them to become owners of Shares of the Company’s
capital stock, by granting to such individuals Incentive Options, Nonqualified Options, Restricted
Stock, or any combination of the foregoing. Nonqualified Options granted hereunder are intended to
be exempt from the requirements of Section 409A of the Code, and the Plan shall be interpreted and
administered in a manner consistent with that intent.

2. Definitions

     Unless the context otherwise requires, the following words as used herein shall have the
following meanings:

     “Act” — The Securities Exchange Act of 1934, as amended.

     “Affiliates” — Any corporation or other entity which is a direct or indirect parent or
subsidiary (including, without limitation, partnerships and limited liability companies) of the
Company; provided, however, that such entity shall be considered an Affiliate only if it would be
aggregated and treated as a single employer with the Company under Section 414(b) of the Code
(controlled group of corporations) or Section 414(c) of the Code (group of trades or businesses
under common control), as applicable, but in applying such Code Sections, an ownership threshold of
50% shall be used as a substitute for the 80% minimum ownership threshold that appears in, and
otherwise must be used when applying, the applicable provisions of (a) Section 1563 of the Code and
the regulations thereunder for determining a controlled group of corporations under Section 414(b)
of the Code, and (b) Treasury Regulation Section 1.414(c)-2 for determining the trades or
businesses that are under common control under Section 414(c) of the Code.

     “Agreement” — The written agreement between the Company and the Optionee evidencing the Option
granted by the Company and the understanding of the parties with respect thereto.

     “Board” — The Board of Directors of the Company as the same may be constituted from time to
time.

     “Code” — The Internal Revenue Code of 1986, as amended from time to time.

     “Committee” — The Committee provided for in Section 3 of this Plan, as such Committee may be
constituted from time to time.

     “Company” — Centex Corporation, a Nevada corporation.

     “Fair Market Value” — As of a particular date, (A) if Shares are listed on a national
securities exchange, the closing price per Share, as reported on the consolidated transaction
reporting system for the New York Stock Exchange or such other national securities exchange on
which Shares are listed that is at the applicable time the principal market for the Shares, or any
other source selected by the Committee, or, if there shall have been no such sales so reported on
that date, on the last preceding date on which such a

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sale was so reported, (B) if Shares are not so listed, the mean between the closing bid and
asked price of Shares on that date, or, if there are no quotations available for such date, on the
last preceding date on which such a quotation was reported, as reported on a recognized quotation
system selected by the Committee, or, if not so reported, then as reported by The Pink Sheets LLC
(or a similar organization or agency succeeding to its functions of reporting prices), or (C) at
the discretion of the Committee, the value of Shares determined in good faith by the Committee. Any
determination of Fair Market Value shall be consistent with Section 422 of the Code and the
Treasury Regulations and other guidance thereunder with regard to Incentive Options and Section
409A of the Code and the Treasury Regulations and other guidance thereunder with regard to
Nonqualified Options. For purposes of valuing Shares to be made subject to Incentive Options, the
Fair Market Value of stock shall be determined without regard to any restriction other than one
which, by its terms, will never lapse.

     “Incentive Option” — Stock Options that are intended to satisfy the requirements of Section
422 of the Code and Section 16 of this Plan.

     “Non-employee Director” — An individual who satisfies the requirements of Rule 16b-3
promulgated under the Act.

     “Nonqualified Options” — Stock Options which do not satisfy the requirements of Section 422 of
the Code.

     “Option” — An option to purchase one or more Shares of the Company granted under and pursuant
to the Plan. Such Option may be either an Incentive Option or a Nonqualified Option.

     “Optionee” — An individual who has been granted an Option under this Plan and who has executed
a written option Agreement with the Company.

     “Plan” — This Centex Corporation 1987 Stock Option Plan.

     “Permitted Transferees” — (i) members of the Optionee’s immediate family, (ii) one or more
trusts for the benefit of such members of the Optionee’s immediate family, (iii) partnerships in
which such immediate family members are the only partners and (iv) limited liability companies in
which such immediate family members are the only members.

     “Restricted Stock” — Shares issued pursuant to Section 19 of the Plan.

     “Senior Management” — Members of the senior management group of the Company and its
Affiliates, such senior managers to be identified by the Chairman and Vice Chairman of the Board of
the Company.

     “Share” — A share of the Company’s present twenty-five cents ($0.25) par value common stock
and any share or shares of capital stock or other securities of the Company hereafter issued or
issuable upon, in respect of or in substitution or in exchange for each present share. Such Shares
may be unissued or reacquired Shares, as the Board, in its sole and absolute discretion, shall from
time to time determine.

3. Administration

     The Plan shall be administered by a committee (the “Committee”) comprised of two or more
Non-employee Directors appointed by the Board from time to time. The Committee shall (a) select
the eligible employees or directors who are to receive Options or awards of Restricted Stock under
the Plan, (b) determine the type, number, vesting requirements and other features and conditions of
Options or awards of Restricted Stock, (c) interpret the Plan, and (d) make all other
determinations necessary or advisable for the administration of the Plan. The Committee may adopt
such rules or guidelines as it

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deems appropriate to implement the Plan. The Committee’s determinations under the Plan shall
be final and binding on all persons.

4. Shares Subject to Plan

     (a) A maximum of 7,065,139 Shares shall be subject to grants of Options and awards of
Restricted Stock under the Plan; provided that such maximum shall be increased or decreased as
provided below in Section 12.

     (b) At any time and from time to time after the Plan takes effect, the Committee, pursuant to
the provisions herein set forth, may grant Options and award Restricted Stock until the maximum
number of Shares shall be exhausted or the Plan shall be sooner terminated; provided, however, that
no Option shall be granted and no Restricted Stock shall be awarded after May 19, 2001.

     (c) Should any Option expire or be cancelled without being fully exercised, or should any
Restricted Stock previously awarded be reacquired by the Company, the number of Shares with respect
to which such Option shall not have been exercised prior to its expiration or cancellation and the
number of Shares of such Restricted Stock so reacquired may again be optioned or awarded pursuant
to the provisions hereof.

     (d) Any Shares withheld pursuant to subsection 18(c) shall not be available after such
withholding for being optioned or awarded pursuant to the provisions hereof.

5. Eligibility

     Eligibility for the receipt of the grant of Options under the Plan shall be confined to (a) a
limited number of persons who are employed by the Company, or one or more of its Affiliates and who
are officers of or who, in the opinion of the Committee, hold other key positions in or for the
Company or one or more of its Affiliates and (b) directors of the Company, including directors who
are not employees of the Company or its Affiliates; provided that only employees of the Company or
its Affiliates shall be eligible for the grant of Incentive Options. In addition, an individual who
becomes a director of the Company, but who is not at the time he becomes a director also an
employee of the Company, shall not be eligible for a grant of Options or an award of Restricted
Stock, and shall not be eligible for the grant of an option, stock allocation, or stock
appreciation right under any other plan of the Company or its affiliates (within the meaning of
Rule 12b-2 promulgated under the Act) until the Board expressly declares such person eligible by
resolution. In no event may an Option be granted to an individual who is not an employee of the
Company or an Affiliate or a director of the Company.

6. Granting of Options

     (a) From time to time while the Plan is in effect, the Committee may in its absolute
discretion, select from among the persons eligible to receive a grant of Options under the Plan
(including persons who have already received such grants of Options) such one or more of them as in
the opinion of the Committee should be granted Options. The Committee shall thereupon, likewise in
its absolute discretion, determine the number of Shares to be allotted for option to each person so
selected; provided, however, that the total number of Shares subject to Options granted to any one
person, including directors of the Company, when aggregated with the number of Shares of Restricted
Stock awarded to such person, shall not exceed 706,513 Shares.

     (b) Each person so selected shall be offered an Option to purchase the number of Shares so
allotted to him, upon such terms and conditions, consistent with the provisions of the Plan, as the
Committee may specify. Each such person shall have a reasonable period of time, to be fixed by the

3

 

Committee, within which to accept or reject the proffered Option. Failure to accept within
the period so fixed may be treated as a rejection.

     (c) Each person who accepts an Option offered to him shall enter into an Agreement with the
Company, in such form as the Committee may prescribe, setting forth the terms and conditions of the
Option, whereupon such person shall become a participant in the Plan. In the event an individual
is granted both one or more Incentive Options and one or more Nonqualified Options, such grants
shall be evidenced by separate Agreements, one each for the Incentive Option grants and one each
for the Nonqualified Options grants. The date which the Committee specifies to be the grant date
of an Option to an individual shall constitute the date on which the Option covered by such
Agreement is granted; provided, however, that the grant date of an Incentive Option will be
determined in accordance with the requirements of Section 422 of the Code and the Treasury
Regulations and other guidance thereunder and the grant date of a Nonqualified Option will be
determined in a manner that complies with Treasury Regulation Section 1.409A-1(b)(5)(vi)(B). In no
event, however, shall an Optionee gain any rights in addition to those specified by the Committee
in its grant, regardless of the time that may pass between the grant of the Option and the actual
signing of the Agreement by the Company and the Optionee.

7. Option Price

     The option price for each Share covered by each Option shall not be less than the greater of
(a) the par value of each such Share or (b) the Fair Market Value of the Share at the time such
Option is granted. If the Company or an Affiliate agrees to substitute a new Option under the Plan
for an old Option, or to assume an old Option, by reason of a corporate merger, consolidation,
acquisition of property or stock, separation, reorganization, or liquidation (any of such events
being referred to herein as a “Corporate Transaction”), the option price of the Shares covered by
each such new Option or assumed Option may be other than the Fair Market Value of the stock at the
time the Option is granted as determined by reference to a formula, established at the time of the
Corporate Transaction, which will give effect to such substitution or assumption; provided,
however, in no event shall —

     (a) the excess of the aggregate Fair Market Value of the Share subject to the Option
immediately after the substitution or assumption over the aggregate option price of such Shares be
more than the excess of the aggregate Fair Market Value of all Shares subject to the Option
immediately prior to the substitution or assumption over the aggregate option price of such Shares

     (b) in the case of an Incentive Option, the new Option or the assumption of the old Option
give the Optionee additional benefits which he would not have under the old Option; or

     (c) the ratio of the option price to the Fair Market Value of the stock subject to the Option
immediately after the substitution or assumption be more favorable to the Optionee than the ratio
of the option price to the Fair Market Value of the stock subject to the old Option immediately
prior such substitution or assumption, on a Share by Share basis.

     Notwithstanding the above, the provisions of this Section 7 with respect to the Option price
in the event of a Corporate Transaction shall, in case of an Incentive Option, be subject to the
requirements of Section 424(a) of the Code and the Treasury regulations and revenue rulings
promulgated thereunder and shall, in the case of a Nonqualified Option, be applied in a manner that
complies with Section 409A of the Code and the Treasury Regulations and other guidance thereunder.
In the event of a conflict between the terms of this Section 7 and the above cited statutes,
regulations, and rulings, or in the event of an omission in this Section 7 of a provision required
by said laws, the latter shall control in all respects and are hereby incorporated herein by
reference as if set out at length.

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8. Option Period

     (a) Each Option shall run for such period of time as the Committee may specify, but in no
event for longer than ten (10) years from the date when the Option is granted, including the period
of time provided in subsections (i) and (ii) of this subsection (a); and subject to such limits,
and the further condition that, unless designated otherwise by the Committee, no Incentive Option
shall become exercisable prior to one year from the date of its grant,

     (i) Except as provided below in this subsection (i) and in paragraph 8.(b) below, all
rights to exercise an Option shall terminate within three months after the date the Optionee
ceases to be an employee of at least one of the employers in the group of employers
consisting of the Company and its Affiliates, or after the date the Optionee ceases to be a
director of the Company, whichever may occur later, for any reason other than death, except
that, (x) in the case of a Nonqualified Option which is held by an Optionee who is, on the
date of cessation referred to in this clause, an officer or director of the Company (within
the meanings thereof under Section 16b) of the Act), all rights to exercise such Option
shall terminate within seven months after the date the Optionee ceases to be an employee of
at least one of the employers in the group of employers consisting of the Company and its
Affiliates, or, if later, after the date the Optionee ceases to be a director of the
Company, for any reason other than death; and, except that, (y) the Committee, in its
discretion, may provide in new Option grants or amend outstanding Options to provide an
extended period of time during which an Optionee can exercise a Nonqualified Option to the
maximum permissible period for which such Optionee’s Option would have been exercisable in
the absence of the Optionee’s ceasing to be an employee of the Company and its Affiliates or
ceasing to be a director of the Company but only to the extent such extension does not
result in a modification of the Option for purposes of Section 409A of the Code; and, except
that (z) in case the employment of the Optionee is terminated for cause, the Option shall
thereafter be null and void for all purposes.

     (ii) If the Optionee ceases to be employed by at least one of the employers in the
group of employers consisting of the Company and its Affiliates, or ceases to be a director
of the Company, whichever may occur later, by reason of his death, all rights to exercise
such Option shall terminate fifteen (15) months thereafter.

     (iii) If Incentive Option is granted with a term shorter than ten (10) years, after
considering the tax and other potential implications the Committee may extend the term of
Incentive Option, but for not more than ten (10) years from the date when Incentive Option
was originally granted.

     (b) Attached hereto are resolutions adopted by the Committee, relating to vesting and
exercise, which shall apply only to Options granted prior to April 1, 2006.

9. Options Not Transferable

     No Option or interest therein shall be transferable by the person to whom it is granted
otherwise than by will, the applicable laws of descent and distribution, or a domestic relations
order (except with respect to an Incentive Option). Notwithstanding the foregoing, the Committee
may, in its sole discretion, provide in the Agreement relating to the grant of an Option that the
Optionee may transfer such Option, without consideration, to members of the Optionee’s immediate
family or to one or more trusts for the benefit of such immediate family members or partnerships in
which such immediate family members are the only partners. For purposes of this Section 9,
“immediate family” shall mean the Optionee’s spouse, parents, children (including adopted children)
and grandchildren.

5

 

     Further, notwithstanding the foregoing, the Committee may, in its sole discretion, provide in
each of those Agreements relating to the grant of an Option whose term will expire in 2000, 2001,
2003, 2004, 2005, 2006 or 2007 that a Director or Senior Management Optionee may transfer such
Option to one or more Permitted Transferees with or without consideration to the Optionee provided
that the following conditions are satisfied with respect to such transfer: (i) such transfer is
made pursuant to the program that the Company has created to facilitate the reduction of its stock
option overhang and is accomplished on or before March 5, 2000; (ii) the Permitted Transferee
exercises the Option not more than 30 days following such transfer; (iii) all fees and expenses
charged by accounting firms, law firms and all other third party consultants in connection with
such transfer are paid by the Optionee, and such fees and expenses are not otherwise paid or
reimbursed by the Company or any of its Affiliates; (iv) the Permitted Transferee agrees to be
bound by all of the terms of the Agreement, except that once transferred by the Optionee to such
Permitted Transferee, the Option may not be subsequently transferred except back to the Optionee;
(v) if the consideration tendered by the Permitted Transferee for the Option is a term obligation,
the principal amount under such term obligation will be due in full no later than the fifth
anniversary of the Option’s expiration date; and (vi) the Permitted Transferee agrees to inform the
Company’s Stock Plan Administrator upon (a) the sale or other transfer of the shares underlying the
Option and (b) any other event or action taken by the Permitted Transferee with respect to the
Option, the shares underlying the Option or the consideration for the Option, where such event or
action will give rise to a recognizable event for the Company.

10. Exercise of Options

     (a) During the lifetime of an Optionee only he or his guardian or legal representative or
transferee may exercise an Option granted to him. In the event of his death, any then exercisable
portion of his Option may, within fifteen (15) months thereafter, or earlier date of termination of
the Option, be exercised in whole or in part by any person empowered to do so under the deceased
Optionee’s will or under the applicable laws of descent and distribution.

     (b) At any time, and from time to time, during the period when any Option, or a portion
thereof, is exercisable, such Option, or portion thereof, may be exercised in whole or in part;
provided, however, that the Committee may require any Option which is partially exercised to be so
exercised with respect to at least a stated minimum number of Shares.

     (c) The option price of the Shares for which an Option is exercised must be paid prior to
issuance of the Shares. Such purchase price shall be payable (i) in cash, certified or cashiers’
check, or wire transfer; (ii) at the option of the holder of such Option, in Stock theretofore
owned by such holder by either actual delivery of shares or by attestation, or through the
withholding by the Company from the Shares otherwise issuable pursuant to the Option of an
appropriate number of Shares; (iii) by a combination of cash and such delivery of withholding of
Stock; or (iv) delivery of a properly executed exercise notice together with irrevocable
instructions to a broker satisfactory to the Company to promptly deliver to the Company the amount
of sale or loan proceeds required to pay the exercise price and applicable withholding taxes. For
purposes of determining the amount, if any, of the purchase price satisfied by payment in Stock,
such Stock shall be valued at its Fair Market Value on the date of exercise. Any Stock delivered
in satisfaction of all or a portion of the purchase price shall be appropriately endorsed for
transfer and assignment to the Company. No holder of an Option shall be, or have any of the rights
or privileges of, a shareholder of the Company in respect of any Shares unless and until
certificates representing such Shares shall have been delivered by the Company to such holder or
such holder’s interest in such Shares shall have been evidenced by an entry on the Company’s books
and records.

     (d) No Shares shall be issued until full payment therefor has been made, and an Optionee shall
have none of the rights of a stockholder until Shares are issued to him.

6

 

     (e) Nothing herein or in any Agreement executed or Option granted hereunder shall require the
Company to issue any Shares upon exercise of an Option if such issuance would, in the opinion of
counsel for the Company, constitute a violation of the Securities Act of 1933, as amended, or any
similar or superseding statute or statutes, or any other applicable statute or regulation, as then
in effect. Upon the exercise of an Option or portion or part thereof, the Optionee shall give to
the Company satisfactory evidence that he is acquiring such Shares for the purpose of investment
only and not with a view to their distribution; provided, however, if or to the extent that the
Shares subject to the Option shall be included in a registration statement filed by the Company, or
one of its Affiliates, such investment representation shall be abrogated.

11. Delivery of Stock Certificates

     As promptly as may be practicable after an Option, or a portion or part thereof, has been
exercised as hereinabove provided, the Company shall make delivery of one or more certificates for
the appropriate number of Shares. In the event that an Optionee exercises both an Incentive Option,
or a portion thereof, and a Nonqualified Option, or a portion thereof, separate stock certificates
shall be issued, one for the Shares subject to the Incentive Option and one for the Shares subject
to the Nonqualified Option.

12. Changes in Company’s Shares and Certain Corporate Transactions

     (a) In the event of any subdivision or consolidation of outstanding Shares of the Company,
declaration of a dividend payable in Shares of the Company or other stock split, then (i) the
maximum number of Shares then available for option or award as Restricted Stock under the Plan,
(ii) the number of Shares of the Company covered by outstanding Options and awards of Restricted
Stock, and (iii) the option price in respect of outstanding Options, and (iv) the total Options and
shares of Restricted Stock that may be awarded to any one person shall each be proportionately
adjusted to reflect such transaction. In the event of any other recapitalization or capital
reorganization of the Corporation, any consolidation or merger of the Corporation with another
corporation or entity, the adoption by the Corporation of any plan of exchange affecting Common
Stock or any distribution to holders of Common Stock of securities or property (other than normal
cash dividends or dividends payable in Common Stock), the Board shall make appropriate adjustments
to (i) the maximum number of Shares then available for option or award as Restricted Stock under
the Plan, (ii) the number of Shares of the Company covered by outstanding Options and awards of
Restricted Stock, and (iii) the option price in respect of outstanding Incentive Options in
accordance with Treasury Regulation Section 1.424-1 and in respect of outstanding Nonqualified
Options in accordance with Treasury Regulation Section 1.409A-1(b)(5)(v)(D), and (iv) the total
Options and shares of Restricted Stock that may be awarded to any one person to reflect such
transaction; provided that such adjustments under (ii) and (iii) shall only be such as are
necessary to maintain the proportionate interest of the holders of the Options and awards of
Restricted Stock and preserve, without increasing, the value of such Options and awards of
Restricted Stock. In the event of a corporate merger, consolidation, acquisition of property or
stock, separation, reorganization or liquidation, the Board shall be authorized (x) to assume under
the Plan previously issued compensatory awards, or to substitute new Options for previously issued
compensatory awards, including Options, as part of such adjustment or (y) to cancel Options and
give the Participants who are the holders of such Options notice and opportunity to exercise for 30
days prior to such cancellation. Section 7 of the Plan shall not apply to any transaction covered
in this Section 12(a).

     Except as is otherwise expressly provided herein, the issue by the Company of shares of its
capital stock of any class, or securities convertible into shares of capital stock of any class,
either in connection with a direct sale or upon the exercise of rights or warrants to subscribe
therefor, or upon conversion of shares or obligations of the Company convertible into such shares
or other securities, shall not affect, and no adjustment by reason thereof shall be made with
respect to, the number of or option

7

 

price of Shares then subject to outstanding Options granted under the Plan. Furthermore, the
presence of outstanding Options granted under the Plan shall not affect in any manner the right or
power of the Company to make, authorize or consummate (i) any or all adjustments,
recapitalizations, reorganizations or other changes in the Company’s capital structure or its
business; (ii) any merger or consolidation of the Company; (iii) any issue by the Company of debt
securities or preferred or preference stock which would rank above the Shares subject to
outstanding Options granted under the Plan; (iv) the dissolution or liquidation of the Company; (v)
any sale, transfer or assignment of all or any part of the assets or business of the Company; or
(vi) any other corporate act or proceeding, whether of a similar character or otherwise.

     (b) Notwithstanding anything to the contrary above, a dissolution or liquidation of the
Company, a merger (other than a merger effecting a reincorporation of the Company in another state)
or consolidation in which the Company is not the surviving corporation (or survives only as a
subsidiary of another corporation in a transaction in which the stockholders of the parent of the
Company and their proportionate interests therein immediately after the transaction are not
substantially identical to the stockholders of the Company and their proportionate interests
therein immediately prior to the transaction), a transaction in which another corporation becomes
the owner of 50% or more of the total combined voting power of all classes of stock of the Company,
or a change in control (as specified below), shall cause every Option then outstanding to become
exercisable in full, subject to the limitation on the aggregate Fair Market Value of Shares that
may become first exercisable during any calendar year set forth in Section 16, immediately prior to
such dissolution, liquidation, merger, consolidation, transaction, or change in control, to the
extent not theretofore exercised, without regard to the determination as to the periods and
installments of exercisability contained in the Agreements if (and only if) such Options have not
at that time expired or been terminated. For purposes of this paragraph, a change in control shall
be deemed to have taken place if: (i) a third person, including a “group” as defined in Section
13(d)(3) of the Act, becomes the beneficial owner of Shares of the Company having 50% or more of
the total number of votes that may be cast for the election of directors of the Company; or (ii) as
a result of, or in connection with, a contested election for directors, the persons who were
directors of the Company immediately before such election shall cease to constitute a majority of
the Board. Notwithstanding the foregoing provisions of this paragraph, in the event of any such
dissolution, merger, consolidation, transaction, or change in control, the Board may completely
satisfy all obligations of the Company and its Affiliates with respect to any Option outstanding on
the date of such event by delivering to the Optionee cash in an amount equal to the difference
between the aggregate exercise price for Shares under the Option and the Fair Market Value of such
Shares on the date of such event, such payment to be made within a reasonable time after such
event.

13. Effective Date

     The Plan shall be effective on May 20, 1987, the date of its adoption by the Board, but shall
be submitted to the stockholders of the Company for ratification at the next regular or special
meeting thereof to be held within twelve (12) months after the Board shall have adopted the Plan.
If at such a meeting of the stockholders of the Company a quorum is present, the Plan shall be
presented for ratification, and unless at such a meeting the Plan is ratified by the affirmative
vote of a majority of the outstanding $0.25 par value common stock of the Company, then and in such
event, the Plan and all Options granted under the Plan and all awards of Restricted Stock under the
Plan shall become null and void and of no further force or effect.

14. Amendment, Suspension or Termination

     (a) Subject to the other terms and condition of this Plan and the limitations set forth in
subsection 14(b) below, the Board may at any time amend, suspend or terminate the Plan; provided,

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however, that after the stockholders have ratified the Plan, the Board may not, without
approval of the stockholders of the Company, amend the Plan so as to:

     (i) Increase the maximum number of Shares subject thereto, as specified above in
Sections 4(a) and 12; or

     (ii) Increase the proportionate number of Shares which may be purchased pursuant to
Option by any one person or awarded as Restricted Stock to any one person, as specified
above in Section 6(a) or below in Section 19(a).

     (b) Neither the Board nor the Committee may amend the Plan or any Agreement to reduce the
option price of an outstanding Option or modify, impair or cancel any existing Option without the
consent of the holder thereof.

15. Requirements of Law

     Notwithstanding anything contained herein to the contrary, the Company shall not be required
to sell or issue Shares under any Option if the issuance thereof would constitute a violation by
the Optionee or the Company of any provisions of any law or regulation of any governmental
authority or any national securities exchange; and as a condition of any sale or issuance of Shares
under Option the Company may require such agreements or undertakings, if any, as the Company may
deem necessary or advisable to assure compliance with any such law or regulation.

16. Incentive Stock Options

     The Committee, in its discretion, may designate any Option granted under the Plan as an
Incentive Option intended to qualify under Section 422 of the Code. Any provision of the Plan to
the contrary notwithstanding, (i) no Incentive Option shall be granted to any person who, at the
time such Incentive Option is granted, owns stock possessing more than 10 percent of the total
combined voting power of all classes of stock of the Company or any Affiliate unless the purchase
price under such Incentive Option is at least 110 percent of the Fair Market Value of the Shares
subject to an Incentive Option at the date of its grant and such Incentive Option is not
exercisable after the expiration of five years from the date of its grant, and (ii) the aggregate
Fair Market Value of the Shares subject to such Incentive Option and the aggregate Fair Market
Value of the shares of stock of any Affiliate (or a predecessor of the Company or an Affiliate)
subject to any other incentive stock option (within the meaning of Section 422 of the Code) of the
Company and its Affiliates (or a predecessor corporation of any such corporation), that may become
first exercisable in any calendar year, shall not (with respect to any Optionee) exceed $100,000,
determined as of the date the Incentive Option is granted. For purposes of this Section 16,
“predecessor corporation” means a corporation that was a party to a transaction described in
Section 424(a) of the Code (or which would be so described if a substitution or assumption under
such section had been effected) with the Company, or a corporation which, at the time the new
incentive stock option (within the meaning of Section 422 of the Code) is granted, is an Affiliate
of the Company or a predecessor corporation of any such corporations.

17. Modification of Options

     Subject to the terms and conditions of and within the limitations of the Plan, the Committee
may, after considering tax and other potential implications, modify, extend or renew outstanding
Options granted under the Plan but only to the extent such change does not result in a modification
of the Option for purposes of Section 409A of the Code, or accept the surrender of Options
outstanding hereunder (to the extent not theretofore exercised) and authorize the granting of new
Options hereunder in substitution therefor (to the extent not theretofore exercised).
Notwithstanding the foregoing provisions of this Section 17, no modification of an Option granted
hereunder shall, without the consent of the Optionee,

9

 

alter or impair any rights or obligations under any Option theretofore granted hereunder to
such Optionee under the Plan, except as may be necessary, with respect to Incentive Options, to
satisfy the requirements of Section 422 of the Code.

18. Agreement Provisions

     (a) Each Agreement shall contain such provisions (including, without limitation, restrictions
or the removal of restrictions upon the exercise of the Option and the transfer of shares thereby
acquired) as the Committee shall deem advisable. Each Agreement shall identify the Option
evidenced thereby as an Incentive Option or Nonqualified Option, as the case may be. Incentive
Options and Nonqualified Options may not both be covered by a single Agreement. Each such
Agreement relating to Incentive Options granted hereunder shall contain such limitations and
restrictions upon the exercise of the Incentive Option as shall be necessary for the Incentive
Option to which such Agreement related to constitute an incentive stock option, as defined in
Section 422 of the Code.

     (b) The Plan shall be annexed to each Agreement and each Agreement shall recite that it is
subject to the Plan and that the Plan shall govern where there is any inconsistency between the
Plan and the Agreement.

     (c) Each Agreement shall contain an agreement and covenant by the Optionee, in such form as
the Committee may require in its discretion, that he consents to and will take whatever affirmative
actions are required, in the opinion of the Board or Committee, to enable the Company or
appropriate Affiliate to satisfy its Federal income tax and FICA withholding obligations. An
Agreement may contain such provisions as the Committee deems appropriate to enable the Company or
its Affiliates to satisfy such withholding obligations, including provisions permitting the
Company, on exercise of an Option, to withhold Shares otherwise issuable to the Optionee exercising
the Option to satisfy the applicable withholding obligations.

     (d) Each Agreement relating to an Incentive Option shall contain a covenant by the Optionee
immediately to notify the Company in writing of any disqualifying disposition (within the meaning
of section 421(b) of the Code) of an Incentive Option.

19. Restricted Stock

     (a) Shares of Restricted Stock may be awarded by the Committee to such individuals as are
eligible for grants of Options, as the Committee may determine at any time and from time to time
before the termination of the Plan. The total number of Shares of Restricted Stock awarded to any
one person, including directors of the Company, when aggregated with the number of Shares subject
to Options in favor of such person, shall not exceed shall not exceed 706,513 Shares.

     (b) A Share of Restricted Stock is a Share that does not irrevocably vest in the holder or
that may not be sold, exchanged, pledged, transferred, assigned or otherwise encumbered or disposed
of until the terms and conditions set by the Committee at the time of the award of the Restricted
Stock have been satisfied. A Share of Restricted Stock shall be subject to a minimum three-year
vesting period and shall contain such other restrictions, terms and conditions as the Committee may
establish, which may include, without limitation, the rendition of services to the Company or its
Affiliates for a specified time or the achievement of specific goals. The Committee may, when it
deems it appropriate, require the recipient of an award of Restricted Stock to enter into an
agreement with the Company evidencing the understanding of the parties with respect to such award.

     If an individual receives Shares of Restricted Stock, whether or not escrowed as provided
below, the individual shall be the record owner of such Shares and shall have all the rights of a
stockholder with respect to such Shares (unless the escrow agreement, if any, specifically provides
otherwise), including

10

 

the right to vote and the right to receive dividends or other distributions made or paid with
respect to such Shares. Any certificate or certificates representing Shares of Restricted Stock
shall bear a legend similar to the following:

     The shares represented by this certificate have been issued pursuant to the
terms of the Centex Corporation 1987 Stock Option Plan and may not be sold, pledged,
transferred, assigned or otherwise encumbered in any manner except as set forth in
the terms of such award dated                     , 19 .

     In order to enforce the restrictions, terms and conditions that may be applicable to an
individual’s Shares of Restricted Stock, the Committee may require the individual, upon the receipt
of a certificate or certificates representing such Shares, or at any time thereafter, to deposit
such certificate or certificates, together with stock powers and other instruments of transfer,
appropriately endorsed in blank, with the Company or an escrow agent designated by the Company
under an escrow agreement in such form as shall be determined by the Committee.

     After the satisfaction of the terms and conditions set by the Committee at the time of an
award of Restricted Stock to an individual, which award is not subject to a non-lapse feature, a
new certificate, without the legend set forth above, for the number of Shares that are no longer
subject to such restrictions, terms and conditions shall be delivered to the individual.

     If an individual to whom Restricted Stock has been awarded dies after satisfaction of the
terms and conditions for the payment of all or a portion of the award but prior to the actual
payment of all or such portion thereof, such payment shall be made to the individual’s beneficiary
or beneficiaries at the time and in the same manner that such payment would have been made to the
individual.

     The Committee may cancel all or any portion of any outstanding restrictions prior to the
expiration of such restrictions with respect to any or all of the Shares of Restricted Stock
awarded to an individual hereunder only upon the individual’s death, disability or retirement on or
after the earlier of (i) age 65 or (ii) for Shares of Restricted Stock awarded prior to April 1,
2006, such time as the sum of the individual’s age and years of service equals 70, provided such
individual is at least 55. With respect to the occurrence of any event specified in the last
paragraph of Section 12, the restrictions, if any, applicable to any outstanding Shares awarded as
Restricted Stock shall lapse immediately prior to the occurrence of the event.

     (c) Subject to the provisions of subsection 19(b) above, if an individual to whom Restricted
Stock has been awarded ceases to be employed by at least one of the employers in the group of
employers consisting of the Company and its Affiliates, or ceases to be a director of the Company,
whichever may occur later, for any reason prior to the satisfaction of any terms and conditions of
an award, any Restricted Stock remaining subject to restrictions shall thereupon be forfeited by
the individual and transferred to, and reacquired by, the Company or an Affiliate at no cost to the
Company or the Affiliate. In such event, the individual, or in the event of his death, his personal
representative, shall forthwith deliver to the Secretary of the Company the certificates for the
Shares of Restricted Stock remaining subject to such restrictions, accompanied by such instruments
of transfer, if any, as may reasonably be required by the Secretary of the Company.

     (d) In case of any consolidation or merger of another corporation into the Company in which
the Company is the surviving corporation and in which there is a reclassification or change
(including a change to the right to receive cash or other property) of the Shares (other than a
change in par value, or from par value to no par value, or as a result of a subdivision or
combination, but including any change in such shares into two or more classes or series of shares),
the Committee may provide that payment of Restricted Stock shall take the form of the kind and
amount of shares of stock and other securities

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(including those of any new direct or indirect parent of the Company), property, cash or any
combination thereof receivable upon such reclassification, change, consolidation or merger.

20. General

     (a) The proceeds received by the Company from the sale of Shares pursuant to Options shall be
used for general corporate purposes.

     (b) Nothing contained in the Plan, or in any Agreement, shall confer upon any Optionee or
recipient of Restricted Stock the right to continue in the employ of the Company or any Affiliate,
or interfere in any way with the rights of the Company or any Affiliate to terminate his employment
at any time.

     (c) Neither the members of the Board nor any member of the Committee shall be liable for any
act, omission, or determination taken or made in good faith with respect to the Plan or any Option
or Restricted Stock granted under it; and the members of the Board and the Committee shall be
entitled to indemnification and reimbursement by the Company in respect of any claim, loss, damage
or expense (including counsel fees) arising therefrom to the full extent permitted by law and under
any directors and officers liability or similar insurance coverage that may be in effect from time
to time.

     (d) As partial consideration for the granting of each Option or award of Restricted Stock
hereunder, the Optionee or recipient shall agree with the Company that he will keep confidential
all information and knowledge which he has relating to the manner and amount of his participation
in the Plan; provided, however, that such information may be disclosed as required by law or given
in confidence to the individual’s spouse, tax or financial advisors, or to a financial institution
to the extent that such information is necessary to secure a loan. In the event any breach of this
promise comes to the attention of the Committee, it shall take into consideration such breach, in
determining whether to grant any future Option or award any future Restricted Stock to such
individual, as a factor militating against the advisability of granting any such future Option or
awarding any such future Restricted Stock to such individual.

     (e) Participation in the Plan shall not preclude an individual from eligibility in any other
stock option plan of the Company or any Affiliate or any old age benefit, insurance, pension,
profit sharing, retirement, bonus, or other extra compensation plans which the Company or any
Affiliate has adopted, or may, at any time, adopt for the benefit of its employees or directors.

     (f) Any payment of cash or any issuance or transfer of Shares to the Optionee, or to his legal
representative, heir, legatee, or distributee, in accordance with the provisions hereof, shall, to
the extent thereof, be in full satisfaction of all claims of such persons hereunder. The Board or
Committee may require any Optionee, legal representative, heir, legatee, or distributee, as a
condition precedent to such payment, to execute a release and receipt therefor in such form as it
shall determine.

     (g) Neither the Committee nor the Board nor the Company guarantees the Shares from loss or
depreciation.

     (h) All expenses incident to the administration, termination, or protection of the Plan,
including, but not limited to, legal and accounting fees, shall be paid by the Company or its
Affiliates.

     (i) Records of the Company and its Affiliates regarding an individual’s period of employment,
termination of employment and the reason therefor, leaves of absence, re-employment, tenure as a
director and other matters shall be conclusive for all purposes hereunder, unless determined by the
Board or Committee to be incorrect.

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     (j) The Company and its Affiliates shall, upon request or as may be specifically required
hereunder, furnish or cause to be furnished, all of the information or documentation which is
necessary or required by the Board or Committee to perform its duties and functions under the Plan.

     (k) The Company assumes no obligation or responsibility to an Optionee or recipient of
Restricted Stock or his personal representatives, heirs, legatees, or distributees for any act of,
or failure to act on the part of, the Board or Committee.

     (l) Any action required of the Company shall be by resolution of its Board or by a person
authorized to act by resolution of the Board. Any action required of the Committee shall be by
resolution of the Committee or by a person authorized to act by resolution of the Committee.

     (m) If any provision of this Plan or any Agreement is held to be illegal or invalid for any
reason, the illegality or invalidity shall not affect the remaining provisions of the Plan or the
Agreement, as the case may be, but such provision shall be fully severable and the Plan or the
Agreement, as the case may be, shall be construed and enforced as if the illegal or invalid
provision had never been included herein or therein.

     (n) Whenever any notice is required or permitted hereunder, such notice must be in writing and
personally delivered or sent by mail. Any notice required or permitted to be delivered hereunder
shall be deemed to be delivered on the date on which it is personally delivered, or, whether
actually received or not, on the third business day after it is deposited in the United States
mail, certified or registered, postage prepaid, addressed to the person who is to receive it at the
address which such person has theretofore specified by written notice delivered in accordance
herewith. The Company, an Optionee or a recipient of Restricted Stock may change, at any time and
from time to time, by written notice to the other, the address which it or he had theretofore
specified for receiving notices. Until changed in accordance herewith, the Company and each
Optionee and recipient of Restricted Stock shall specify as its and his address for receiving
notices the address set forth in the Agreement pertaining to the shares of Stock to which such
notice relates.

     (o) Any person entitled to notice hereunder may waive such notice.

     (p) The Plan shall be binding upon the Optionee or recipient of Restricted Stock, his heirs,
legatees, and legal representatives, upon the Company, its successors, and assigns, and upon the
Board and Committee, and their successors.

     (q) The titles and headings of Sections and paragraphs are included for convenience of
reference only and are not to be considered in construction of the provisions hereof.

     (r) All questions arising with respect to the provisions of the Plan shall be determined by
application of the laws of the State of Nevada except to the extent Nevada law is preempted by
federal law. The obligation of the Company to sell and deliver Shares hereunder is subject to
applicable laws and to the approval of any governmental authority required in connection with the
authorization, issuance, sale, or delivery of such Shares.

     (s) Words used in the masculine shall apply to the feminine where applicable, and wherever the
context of this Plan dictates, the plural shall be read as the singular and the singular as the
plural.

21. Withholding Taxes

     Federal, state, or local law may require the withholding of taxes applicable to gains
resulting from the exercise of Nonqualified Options granted hereunder. Unless otherwise prohibited
by the Committee, each participant may satisfy any such withholding tax obligation by electing (i)
to tender a cash payment

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to the Company, (ii) to authorize the Company to withhold from the shares of stock of the
Company otherwise issuable to the participant as a result of the exercise of the Nonqualified
Option a number of shares having a fair market value, as of the date the withholding tax obligation
arises, equal to the withholding obligations, or, at the election of the participant, up to the
maximum of taxes due (the “Share Withholding Alternative”), (iii) to deliver to the Company
previously acquired shares of common stock of the Company having a fair market value, as of the
date the withholding tax obligation arises, equal to the amount to be withheld, or at the election
of the participant, up to the maximum of taxes due, or (iv) any combination of the foregoing,
provided the combination permits the payment of all withholding taxes attributable to the exercise
of the Nonqualified Option. A Participant’s election to pay the withholding tax obligation must be
made in writing delivered to the Company before the time of exercise, or simultaneously with the
exercise, of such Participant’s Nonqualified Option. A valid and binding written election of the
Share Withholding Alternative shall be irrevocable. A participant’s failure to elect a withholding
alternative prior to the time such election is required to be made shall be deemed to be an
election to pay the withholding tax by tendering a cash payment to the Company. For purposes of
this Section 21, the fair market value of the shares used to pay withholding taxes is the mean
between the highest and lowest price quoted on the New York Stock Exchange for one share of common
stock of the Company on the Tax Date. Also, as used in this Section 21, “Tax Date” shall mean the
date on which a withholding tax obligation arises in connection with an exercise of a nonqualified
stock option, which date shall be presumed to be the date of exercise, unless shares subject to a
substantial risk of forfeiture (as defined in section 83(c)(1) or (c)(3) of the Code) are issuable
on exercise of the option and the participant does not make a timely election under section 83(b)
of the Code with respect thereto, in which case the Tax Date for such shares is the date on which
the substantial risk of forfeiture lapses. Fractional shares remaining after payment of the
withholding taxes shall be paid to the participant in cash.

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Resolution related to stock options adopted by the Compensation and Management Development
Committee of the Board of Directors of Centex Corporation on May 13, 2004.

     RESOLVED, that all non-qualified options held by Full Time Employees to acquire common stock
of Centex Corporation awarded under any of the stock plans listed below, whether awarded before or
after May 13, 2004, shall be subject to the following from and after May 13, 2004:

	1.	 	If an optionee shall voluntarily terminate employment and at such time he or she is age 55 or
older, has at least 10 Years of Service and the sum of age and Years of Service equals at
least 70, then all non-qualified options held by him or her shall immediately vest upon the
termination of employment (“Vested Retirement”).
	 
	2.	 	All rights to exercise such vested options will terminate 12 months following the date of
such Vested Retirement. However, to the extent that an option agreement provides a longer
time to exercise following voluntary termination of employment, then such agreement will
control.
	 
	3.	 	As used herein: “Full Time Employee” means a person actively and regularly engaged in work at
least 40 hours a week; and “Years of Service” means an optionee’s years of employment with
Centex Corporation or any of its Affiliates. An optionee shall be credited with a Year of
Service on each anniversary of the date on which he or she was first employed by Centex
Corporation or its Affiliate, provided that the optionee continues to be employed by such
employer on such anniversary date.
	 
	4.	 	The stock plans covered are:

	 	•	 	Centex Corporation Amended and Restated 1987 Stock Option Plan
	 
	 	•	 	Seventh Amended and Restated 1998 Centex Corporation Employee Non-Qualified Stock
Option Plan
	 
	 	•	 	Amended and Restated Centex Corporation 2001 Stock Plan
	 
	 	•	 	Amended and Restated Centex Corporation 2003 Equity Incentive Plan

     FURTHER RESOLVED, that the appropriate officers of the Corporation are hereby directed to take
all steps that they deem necessary or appropriate to communicate the substance of the foregoing
resolution to option holders who are affected and, where they deem necessary, to document the
substance of this resolution by way of amendments to the stock plans and to existing option
agreements.

15

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