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                                                                    Exhibit 10.5

                         1997 PERFORMANCE INCENTIVE PLAN
                                       OF
                       THE GOODYEAR TIRE & RUBBER COMPANY

1.    PURPOSE.

        The purposes of the 1997 Performance Incentive Plan of The Goodyear Tire
& Rubber Company (the "Plan") are to advance the interests of the Company and
its shareholders by strengthening the ability of the Company to attract, retain
and reward highly qualified officers and other employees, to motivate officers
and other selected employees to achieve business objectives established to
promote the long-term growth, profitability and success of the Company, and to
encourage ownership of the Common Stock of the Company by participating officers
and other selected employees. The Plan authorizes performance-based stock and
cash incentive compensation in the form of stock options, stock appreciation
rights, restricted stock, performance grants and awards, and other stock-based
grants and awards.

2.    DEFINITIONS.

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

     (a) "ADJUSTED NET INCOME" means, with respect to any calendar or other
fiscal year of the Company, the amount reported as "Net Income" in the audited
Consolidated Income Statement of the Company and Subsidiaries for such year (as
set forth in the Company's Annual Report to Shareholders for such year),
adjusted to exclude any of the following items: (i) extraordinary items (as
described in Accounting Principles Board Opinion No. 30); (ii) gains or losses
on the disposition of discontinued operations; (iii) the cumulative effects of
changes in accounting principles; (iv) the writedown of any asset; and (v)
charges for restructuring and rationalization programs.

     (b) "ANNUAL NET INCOME PER SHARE" means, with respect to any calendar or
other fiscal year of the Company in respect of which a determination thereof is
being or to be made, the Adjusted Net Income for such year divided by the
average number of shares of Common Stock outstanding during such year.

     (c) "AWARD" means any payment or settlement in respect of a grant made
pursuant to the Plan, whether in the form of shares of Common Stock or in cash,
or in any combination thereof.

     (d) "BOARD OF DIRECTORS" means the Board of Directors of the Company.

     (e) "CODE" means the Internal Revenue Code of 1986, as amended and in
effect from time to time, or any successor statute thereto, together with the
published rulings, regulations and interpretations duly promulgated thereunder.

     (f) "COMMITTEE" means the committee of the Board of Directors established
and constituted as provided in Section 5 of the Plan.

     (g) "COMMON STOCK" means the common stock, without par value, of the
Company, or any security issued by the Company in substitution or exchange
therefor or in lieu thereof.

     (h) "COMMON STOCK EQUIVALENT" means a Unit (or fraction thereof, if
authorized by the Committee) substantially equivalent to a hypothetical share of
Common Stock, credited to a Participant and having a value at any time equal to
the Fair Market Value of a share of Common Stock (or such fraction thereof) at
such time.

     (i) "COMPANY" means The Goodyear Tire & Rubber Company, an Ohio
corporation, or any successor corporation.

     (j) "COVERED EMPLOYEE" means any person who is a "covered employee" within
the meaning of Section 162(m) of the Code.

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     (k) "CUMULATIVE NET INCOME" means, in respect of any Performance Period,
the aggregate cumulative amount of the Adjusted Net Income for the calendar or
other fiscal years of the Company during such Performance Period.

     (l) "CUMULATIVE NET INCOME PER SHARE" means, in respect of any Performance
Period, the aggregate cumulative amount of the Annual Net Income Per Share for
the calendar or other fiscal years of the Company during such Performance
Period.

     (m) "DIVIDEND EQUIVALENT" means, in respect of a Common Stock Equivalent
and with respect to each dividend payment date for the Common Stock, an amount
equal to the cash dividend on one share of Common Stock payable on such dividend
payment date.

     (n) "EMPLOYEE" means any individual, including any officer of the Company,
who is on the active payroll of the Company or a Subsidiary at the relevant
time.

     (o) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended
and in effect from time to time, including all rules and regulations promulgated
thereunder.

     (p) "FAIR MARKET VALUE" means, in respect of any date on or as of which a
determination thereof is being or to be made, the average of the high and low
per share sale prices of the Common Stock reported on the New York Stock
Exchange Composite Transactions tape on such date, or, if the Common Stock was
not traded on such date, on the next preceding day on which sales of shares of
the Common Stock were reported on the New York Stock Exchange Composite
Transactions tape.

     (q) "INCENTIVE STOCK OPTION" means any option to purchase shares of Common
Stock granted pursuant to the provisions of Section 6 of the Plan that is
intended to be and is specifically designated as an "incentive stock option"
within the meaning of Section 422A of the Code.

     (r) "NON-QUALIFIED STOCK OPTION" means any option to purchase shares of
Common Stock granted pursuant to the provisions of Section 6 of the Plan that is
not an Incentive Stock Option.

     (s) "PARTICIPANT" means any Employee of the Company or a Subsidiary who
receives a grant or Award under the Plan.

     (t) "PERFORMANCE GRANT" means a grant made pursuant to Section 9 of the
Plan, the Award of which is contingent on the achievement of specific
Performance Goals during a Performance Period, determined using a specific
Performance Measure, all as specified in the grant agreement relating thereto.

     (u) "PERFORMANCE GOALS" mean, with respect to any applicable grant made
pursuant to the Plan, the one or more targets, goals or levels of attainment
required to be achieved in terms of the specified Performance Measure during the
specified Performance Period, all as set forth in the related grant agreement.

     (v) "PERFORMANCE MEASURE" means, with respect to any applicable grant made
pursuant to the Plan, one or more of the criteria identified at Section 9(c) of
the Plan selected by the Committee for the purpose of establishing, and
measuring attainment of, Performance Goals for a Performance Period in respect
of such grant, as provided in the related grant agreement.

     (w) "PERFORMANCE PERIOD" means, with respect to any applicable grant made
pursuant to the Plan, the one or more periods of time, which may be of varying
and overlapping durations, as the Committee may select during which the
attainment of one or more Performance Goals will be measured to determine
whether, and the extent to which, a Participant is entitled to receive payment
of an Award pursuant to such grant.

     (x) "PLAN" means this 1997 Performance Incentive Plan of the Company, as
set forth herein and as hereafter amended from time to time in accordance with
the terms hereof.

     (y) "RESTRICTED STOCK" means shares of Common Stock issued pursuant to a
Restricted Stock Grant under Section 8 of the Plan so long as such shares remain
subject to the restrictions and conditions specified in the grant agreement
pursuant to which such Restricted Stock Grant is made.

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     (z) "RESTRICTED STOCK GRANT" means a grant made pursuant to the provisions
of Section 8 of the Plan.

    (aa) "STOCK APPRECIATION RIGHT" means a grant in the form of a right to
benefit from the appreciation of the Common Stock made pursuant to Section 7 of
the Plan.

    (bb) "STOCK OPTION" means and includes any Non-Qualified Stock Option and
any Incentive Stock Option granted pursuant to Section 6 of the Plan.

    (cc) "SUBSIDIARY" means any corporation or entity in which the Company
directly or indirectly owns or controls 50% or more of the equity securities
issued by such corporation or entity having the power to vote for the election
of directors.

    (dd) "UNIT" means a bookkeeping entry used by the Company to record and
account for the grant, settlement or, if applicable, deferral of an Award until
such time as such Award is paid, canceled, forfeited or terminated, as the case
may be, which, except as otherwise specified by the Committee, shall be equal to
one Common Stock Equivalent.

3.    EFFECTIVE DATE; TERM.

     (a) EFFECTIVE DATE. The Plan shall be effective on April 14, 1997, upon
approval by the shareholders of the Company at the 1997 annual meeting of
shareholders or any adjournments thereof.

     (b) TERM. The Plan shall remain in effect until December 31, 2001, unless
sooner terminated by the Board of Directors. Termination of the Plan shall not
affect grants and Awards then outstanding.

4.    SHARES OF COMMON STOCK SUBJECT TO PLAN.

     (a) MAXIMUM NUMBER OF SHARES AVAILABLE FOR ISSUANCE UNDER THE PLAN. The
maximum aggregate number of shares of Common Stock which may be issued pursuant
to the Plan, subject to adjustment as provided in Section 4(b) of the Plan,
shall be fifteen million, plus (i) any shares of Common Stock issued under the
Plan that are forfeited back to the Company or are canceled, and (ii) any shares
of Common Stock that are tendered, whether by physical delivery or by
attestation, to the Company by a Participant as full or partial payment of the
exercise price of any Stock Option granted pursuant to the Plan, in connection
with the payment or settlement of any other grant or Award made pursuant to the
Plan, or in payment of any applicable withholding for federal, state, city,
local or foreign income, payroll or other taxes incurred in connection with the
exercise of any Stock Option or Stock Appreciation Right granted under the Plan
or the receipt or settlement of any other grant or Award under the Plan. The
shares of Common Stock which may be issued under the Plan may be authorized and
unissued shares or issued shares which have been reacquired by the Company. No
fractional share of the Common Stock shall be issued under the Plan. Awards of
fractional shares of the Common Stock, if any, shall be settled in cash.

     (b) ADJUSTMENTS UPON CHANGES IN CAPITAL STRUCTURE. In the event of any
change in the capital structure, capitalization or Common Stock of the Company
such as a stock dividend, stock split, recapitalization, merger, consolidation,
split-up, combination or exchange of shares or other form of reorganization, or
any other change affecting the Common Stock, such proportionate adjustments, if
any, as the Board of Directors in its discretion may deem appropriate to reflect
such change shall be made with respect to: (i) the maximum number of shares of
Common Stock which may be (1) issued pursuant to the Plan, (2) the subject of
any type of grant or Award under the Plan, and (3) granted, Awarded or issued to
any Participant pursuant to any provision of the Plan; (ii) the number of shares
of Common Stock subject to any outstanding Stock Option, Stock Appreciation
Right or other grant or Award made to any Participant under the Plan; (iii) the
per share exercise price in respect of any outstanding Stock Options and Stock
Appreciation Rights; (iv) the number of shares of Common Stock and the number of
Units or the value of such Units, as the case may be, which are the subject of
other grants and Awards then outstanding under the Plan; and (v) any other term
or condition of any grant affected by any such change.

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5.    ADMINISTRATION.

     (a) THE COMMITTEE. The Plan shall be administered by the Committee to be
appointed from time to time by the Board of Directors and comprised of not less
than three of the then members of the Board of Directors who qualify as
"non-employee directors" within the meaning of Rule 16(b)-3 promulgated under
the Exchange Act and as "outside directors" within the meaning of Section 162(m)
of the Code. Members of the Committee shall serve at the pleasure of the Board
of Directors. The Board of Directors may from time to time remove members from,
or add members to, the Committee. A majority of the members of the Committee
shall constitute a quorum for the transaction of business and the acts of a
majority of the members present at any meeting at which a quorum is present
shall be the acts of the Committee. Any one or more members of the Committee may
participate in a meeting by conference telephone or similar means where all
persons participating in the meeting can hear and speak to each other, which
participation shall constitute presence in person at such meeting. Action
approved in writing by a majority of the members of the Committee then serving
shall be fully as effective as if the action had been taken by unanimous vote at
a meeting duly called and held. The Company shall make grants and effect Awards
under the Plan in accordance with the terms and conditions specified by the
Committee, which terms and conditions shall be set forth in grant agreements
and/or other instruments in such forms as the Committee shall approve.

     (b) COMMITTEE POWERS. The Committee shall have full power and authority to
operate and administer the Plan in accordance with its terms. The powers of the
Committee include, but are not limited to, the power to: (i) select Participants
from among the Employees of the Company and Subsidiaries; (ii) establish the
types of, and the terms and conditions of, all grants and Awards made under the
Plan, subject to any applicable limitations set forth in, and consistent with
the express terms of, the Plan; (iii) make grants and pay or otherwise effect
Awards subject to, and consistent with, the express provisions of the Plan; (iv)
establish Performance Goals, Performance Measures and Performance Periods,
subject to, and consistent with, the express provisions of the Plan; (v) reduce
the amount of any grant or Award; (vi) prescribe the form or forms of grant
agreements and other instruments evidencing grants and Awards under the Plan;
(vii) pay and to defer payment of Awards on such terms and conditions, not
inconsistent with the express terms of the Plan, as the Committee shall
determine; (viii) direct the Company to make conversions, accruals and payments
pursuant to the Plan; (ix) construe and interpret the Plan and make any
determination of fact incident to the operation of the Plan; (x) promulgate,
amend and rescind rules and regulations relating to the implementation,
operation and administration of the Plan; (xi) adopt such modifications,
procedures and subplans as may be necessary or appropriate to comply with the
laws of other countries with respect to Participants or prospective Participants
employed in such other countries; (xii) delegate to other persons the
responsibility for performing administrative or ministerial acts in furtherance
of the Plan; (xiii) engage the services of persons and firms, including banks,
consultants and insurance companies, in furtherance of the Plan's activities;
and (xiv) make all other determinations and take all other actions as the
Committee may deem necessary or advisable for the administration and operation
of the Plan.

     (c) COMMITTEE'S DECISIONS FINAL. Any determination, decision or action of
the Committee in connection with the construction, interpretation,
administration or application of the Plan, and of any grant agreement, shall be
final, conclusive and binding upon all Participants, and all persons claiming
through Participants, affected thereby.

     (d) ADMINISTRATIVE ACCOUNTS. For the purpose of accounting for Awards
deferred as to payment, the Company shall establish bookkeeping accounts
expressed in Units bearing the name of each Participant receiving such Awards.
Each account shall be unfunded, unless otherwise determined by the Committee in
accordance with Section 15(d) of the Plan.

     (e) CERTIFICATIONS. In respect of each grant under the Plan to a Covered
Person which the Committee intends to be "performance based compensation" under
Section 162(m) of the Code, the provisions of the Plan and the related grant
agreement shall be construed to confirm such intent, and to conform to the
requirements of Section 162(m) of the Code, and the Committee shall certify in
writ-

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ing (which writing may include approved minutes of a meeting of the Committee)
that the applicable Performance Goal(s), determined using the Performance
Measure specified in the related grant agreement, was attained during the
relevant Performance Period at a level that equaled or exceeded the level
required for the payment of such Award in the amount proposed to be paid and
that such Award does not exceed any applicable Plan limitation.

6.    STOCK OPTIONS.

     (a) IN GENERAL. Options to purchase shares of Common Stock may be granted
under the Plan and may be Incentive Stock Options or Non-Qualified Stock
Options. All Stock Options shall be subject to the terms and conditions of this
Section 6 and shall contain such additional terms and conditions, not
inconsistent with the express provisions of the Plan, as the Committee shall
determine. Stock Options may be granted in addition to, or in tandem with or
independent of Stock Appreciation Rights or other grants and Awards under the
Plan. The Committee may grant Stock Options that provide for the automatic grant
of a replacement Stock Option if payment of the exercise price and/or any
related withholding taxes is made by tendering (whether by physical delivery or
by attestation) shares of Common Stock or by having shares of Common Stock
withheld by the Company. The replacement Stock Option would cover the number of
shares of Common Stock tendered or withheld, would have a per share exercise
price equal to at least 100% of the Fair Market Value of a share of Common Stock
on the date of the exercise of the original Stock Option, and would have such
other terms and conditions as may be specified by the Committee and set forth in
the related grant agreement.

     (b) ELIGIBILITY AND LIMITATIONS. Any officer of the Company and any other
Employee of the Company or a Subsidiary may be granted Stock Options. The
Committee shall determine, in its discretion, the Employees to whom Stock
Options will be granted, the timing of such grants, and the number of shares of
Common Stock subject to each Stock Option granted; provided, that (i) the
maximum aggregate number of shares of Common Stock which may be issued and
delivered upon the exercise of Non-Qualified Stock Options granted under the
Plan shall be fourteen million, (ii) the maximum aggregate number of shares of
Common Stock which may be issued and delivered upon the exercise of Incentive
Stock Options shall be five million, (iii) the maximum number of shares of
Common Stock in respect of which Stock Options may be granted to any Employee
during any calendar year shall be 500,000, and (iv) in respect of Incentive
Stock Options, the aggregate Fair Market Value (determined as of the date the
Incentive Stock Option is granted) of the shares of Common Stock with respect to
which an Incentive Stock Option becomes exercisable for the first time by a
Participant during any calendar year shall not exceed $100,000, or such other
limit as may be required by the Code, except that, if authorized by the
Committee and provided for in the related grant agreement, any portion of any
Incentive Stock Option that cannot be exercised as such because of this
limitation may be converted into and exercised as a Non-Qualified Stock Option.
In no event shall any Stock Option or Stock Appreciation Right be granted to a
Participant in exchange for the Participant's agreement to the cancellation of
one or more Stock Options or Stock Appreciation Rights then held by such
Participant if the exercise price of the new grant is lower than the exercise
price of the grant to be cancelled and in no event shall any Stock Option or
Stock Appreciation Right be amended to reduce the option price, except as
contemplated by Section 4(b) of the Plan.

     (c) OPTION EXERCISE PRICE. The per share exercise price of each Stock
Option granted under the Plan shall be determined by the Committee prior to or
at the time of grant, but in no event shall the per share exercise price of any
Stock Option be less than 100% of the Fair Market Value of the Common Stock on
the date of the grant of such Stock Option.

     (d) OPTION TERM. The term of each Stock Option shall be fixed by the
Committee; except that in no event shall the term of any Incentive Stock Option
exceed ten years after the date such Incentive Stock Option is granted.

     (e) EXERCISABILITY. A Stock Option shall be exercisable at such time or
times and subject to such terms and conditions as shall be determined by the
Committee at the date of grant; provided, however,

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that no Stock Option shall be exercisable during the first six months after the
date such Stock Option is granted. No Stock Option may be exercised unless the
holder thereof is at the time of such exercise an Employee and has been
continuously an Employee since the date such Stock Option was granted, except
that the Committee may permit the exercise of any Stock Option for any period
following the Participant's termination of employment not in excess of the
original term of the Stock Option on such terms and conditions as it shall deem
appropriate and specify in the related grant agreement.

     (f) METHOD OF EXERCISE. A Stock Option may be exercised, in whole or in
part, by giving written notice of exercise to the Company specifying the number
of shares of Common Stock to be purchased. Such notice shall be accompanied by
payment in full of the purchase price, plus any required withholding taxes, in
cash or, if permitted by the terms of the related grant agreement or otherwise
approved in advance by the Committee, in shares of Common Stock already owned by
the Participant valued at the Fair Market Value of the Common Stock on the date
of exercise. The Committee may also permit Participants, either on a selective
or aggregate basis, to simultaneously exercise Stock Options and sell the shares
of Common Stock thereby acquired pursuant to a brokerage or similar arrangement
approved in advance by the Committee and to use the proceeds from such sale to
pay the exercise price and withholding taxes.

7.    STOCK APPRECIATION RIGHTS.

     (a) IN GENERAL. Stock Appreciation Rights in respect of shares of Common
Stock may be granted under the Plan alone, in tandem with, in addition to or
independent of a Stock Option or other grant or Award under the Plan. A Stock
Appreciation Right entitles a Participant to receive an amount equal to the
excess of the Fair Market Value of a share of Common Stock on the date of
exercise over the Fair Market Value of a share of Common Stock on the date of
grant of the Stock Appreciation Right, or such other higher price as may be set
by the Committee, multiplied by the number of shares of Common Stock with
respect to which the Stock Appreciation Right shall have been exercised.

     (b) ELIGIBILITY AND LIMITATIONS. Any officer of the Company and any other
Employee of the Company or a Subsidiary selected by the Committee may be granted
Stock Appreciation Rights. The Committee shall determine, in its discretion, the
Employees to whom Stock Appreciation Rights will be granted, the timing of such
grants and the number of shares of Common Stock in respect of which each Stock
Appreciation Right is granted; provided that (i) the maximum aggregate number of
shares of Common Stock in respect of which Stock Appreciation Rights may be
granted shall be six million, (ii) the maximum aggregate number of shares of
Common Stock which may be issued and delivered in payment or settlement of Stock
Appreciation Rights shall be three million, and (iii) the maximum number of
shares of Common Stock in respect of which Stock Appreciation Rights may be
granted to any Employee during any calendar year shall be 250,000.

     (c) EXERCISABILITY; EXERCISE; FORM OF PAYMENT. A Stock Appreciation Right
may be exercised by a Participant at such time or times and in such manner as
shall be authorized by the Committee and set forth in the related grant
agreement, except that in no event shall a Stock Appreciation Right be
exercisable within the first six months after the date of grant. The Committee
may provide that a Stock Appreciation Right shall be automatically exercised on
one or more specified dates. No Stock Appreciation Right may be exercised unless
the holder thereof is at the time of exercise an Employee and has been
continuously an Employee since the date the Stock Appreciation Right was
granted, except that the Committee may permit the exercise of any Stock
Appreciation Right for any period following the Participant's termination of
employment not in excess of the original term of the Stock Appreciation Right on
such terms and conditions as it shall deem appropriate and specify in the
related grant agreement. A Stock Appreciation Right may be exercised, in whole
or in part, by giving the Company a written notice specifying the number of
shares of Common Stock in respect of which the Stock Appreciation Right is to be
exercised. Stock Appreciation Rights may be paid upon exercise in cash, in
shares of Common Stock, or in any combination of cash and shares of Common Stock
as determined by the Committee.

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8.    RESTRICTED STOCK GRANTS AND AWARDS.

     (a) IN GENERAL. A Restricted Stock Grant is the issue of shares of Common
Stock in the name of an Employee, which issuance is subject to such terms and
conditions as the Committee shall deem appropriate, including, without
limitation, restrictions on the sale, assignment, transfer or other disposition
of such shares and the requirement that the Employee forfeit such shares back to
the Company (i) upon termination of employment for specified reasons within a
specified period of time, or (ii) if any specified Performance Goals are not
achieved during a specified Performance Period, or (iii) if such other
conditions as the Committee may specify are not satisfied.

     (b) ELIGIBILITY AND LIMITATIONS. Any officer of the Company and any other
key Employee of the Company or a Subsidiary selected by the Committee may
receive a Restricted Stock Grant. The Committee, in its sole discretion, shall
determine whether a Restricted Stock Grant shall be made, the Employee to
receive the Restricted Stock Grant, and the conditions and restrictions imposed
on the Restricted Stock Grant. The maximum number of shares of Common Stock
which may be issued as Restricted Stock under the Plan shall be two million. The
maximum number of shares of Common Stock which may be issued to any Employee as
Restricted Stock during any calendar year shall not exceed 200,000. The maximum
amount any Employee may receive as a Restricted Stock Grant in any calendar year
shall not exceed $10 million, determined using the Fair Market Value of such
Restricted Stock Grant as at the date of the grant thereof.

     (c) RESTRICTION PERIOD. Restricted Stock Grants shall provide that in order
for a Participant to receive shares of Common Stock free of restrictions, the
Participant must remain in the employment of the Company or its Subsidiaries,
subject to such exceptions as the Committee shall deem appropriate and specify
in the related grant agreement, for a period of not less than three years
commencing on the date of the grant and ending on such later date or dates as
the Committee may designate at the time of the grant (the "Restriction Period").
The Committee, in its sole discretion, may provide for the lapse of restrictions
in installments during the Restriction Period. The Committee may also establish
one or more Performance Goals that are required to be achieved during one or
more Performance Periods within the Restriction Period as a condition to the
lapse of the restrictions.

     (d) RESTRICTIONS. The following restrictions and conditions shall apply to
each Restricted Stock Grant during the Restriction Period: (i) the Participant
shall not be entitled to delivery of the shares of the Common Stock; (ii) the
Participant may not sell, assign, transfer, pledge, hypothecate, encumber or
otherwise dispose of or realize on the shares of Common Stock subject to the
Restricted Stock Grant; and (iii) the shares of the Common Stock issued as
Restricted Stock shall be forfeited to the Company if the Participant for any
reason ceases to be an Employee prior to the end of the Restriction Period,
except due to circumstances specified in the related grant agreement or
otherwise approved by the Committee. The Committee may in, its sole discretion,
include such other restrictions and conditions as it may deem appropriate.

     (e) PAYMENT. Upon expiration of the Restriction Period and if all
conditions have been satisfied and any applicable Performance Goals attained,
the shares of the Restricted Stock will be made available to the Participant,
subject to satisfaction of applicable withholding tax requirements, free of all
restrictions; provided, that the Committee may, in its discretion, require (i)
the further deferral of any Restricted Stock Grant beyond the initially
specified Restriction Period, (ii) that the Restricted Stock be retained by the
Company, and (iii) that the Participant receive a cash payment in lieu of
unrestricted shares of Common Stock.

     (f) RIGHTS AS A SHAREHOLDER. A Participant shall have, with respect to
shares of Restricted Stock, all of the rights of a shareholder of the Company,
including the right to vote the shares and receive any cash dividends paid
thereon. Stock dividends distributed with respect to shares of Restricted Stock
shall be treated as additional shares under the Restricted Stock Grant and shall
be subject to the restrictions and other terms and conditions set forth therein.

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9.    PERFORMANCE GRANTS AND AWARDS.

     (a) ELIGIBILITY AND TERMS. The Committee may grant to officers of the
Company and other key Employees of the Company and its Subsidiaries the
prospective contingent right, expressed in Units, to receive payments of shares
of Common Stock, cash or any combination thereof, with each Unit equivalent in
value to one share of Common Stock, or equivalent to such other value or
monetary amount as may be designated or established by the Committee
("Performance Grants"), based upon Company performance over a specified
Performance Period. The Committee shall, in its sole discretion, determine the
officers of the Company and other key Employees eligible to receive Performance
Grants. At the time each Performance Grant is made, the Committee shall
establish the Performance Period, the Performance Measure and the targets to be
attained relative to such Performance Measure (the "Performance Goals") in
respect of such Performance Grant. The number of shares of Common Stock and/or
the amount of cash earned and payable in settlement of a Performance Grant shall
be determined at the end of the Performance Period (a "Performance Award").

     (b) LIMITATIONS ON GRANTS AND AWARDS. The maximum number of shares of
Common Stock which may be issued pursuant to Performance Grants shall be three
million. The maximum number of shares which may be the subject of Performance
Grants made to any Participant in respect of any Performance Period or during
any calendar year shall be 100,000. The maximum amount any Participant may
receive during any calendar year as Performance Awards pursuant to Performance
Grants shall not exceed $15 million, determined using the Fair Market Value of
such Performance Awards as at the last day of the applicable Performance Period
or Periods or as at date or dates of the payment thereof, whichever is higher.

     (c) PERFORMANCE GOALS, PERFORMANCE MEASURES AND PERFORMANCE PERIODS. Each
Performance Grant shall provide that, in order for a Participant to receive an
Award of all or a portion of the Units subject to such Performance Grant, the
Company must achieve certain Performance Goals over a designated Performance
Period having a minimum duration of one year, with attainment of the Performance
Goals determined using a specific Performance Measure. The Performance Goals and
Performance Period shall be established by the Committee in its sole discretion.
The Committee shall establish a Performance Measure for each Performance Period
for determining the portion of the Performance Grant which will be earned or
forfeited based on the extent to which the Performance Goals are achieved or
exceeded. In setting Performance Goals, the Committee may use a Performance
Measure based on any one, or on any combination, of the following Company
performance factors as the Committee deems appropriate: (i) Cumulative Net
Income Per Share; (ii) Cumulative Net Income; (iii) return on sales; (iv) total
shareholder return; (v) return on assets; (vi) economic value added; (vii) cash
flow; (viii) return on equity; and (ix) cumulative operating income (which shall
equal consolidated sales minus cost of goods sold and selling, administrative
and general expense). Performance Goals may include minimum, maximum and target
levels of performance, with the size of Performance Award based on the level
attained. Once established by the Committee and specified in the grant
agreement, and if and to the extent provided in or required by the grant
agreement, the Performance Goals and the Performance Measure in respect of any
Performance Grant (or any Restricted Stock Grant or Stock-Based Grant that
requires the attainment of Performance Goals as a condition to the Award) shall
not be changed. The Committee may, in its discretion, eliminate or reduce (but
not increase) the amount of any Performance Award (or Restricted Stock or
Stock-Based Award) that otherwise would be payable to a Participant upon
attainment of the Performance Goal(s).

     (d) FORM OF GRANTS. Performance Grants may be made on such terms and
conditions not inconsistent with the Plan, and in such form or forms, as the
Committee may from time to time approve. Performance Grants may be made alone,
in addition to in tandem with, or independent of other grants and Awards under
the Plan. Subject to the terms of the Plan, the Committee shall, in its
discretion, determine the number of Units subject to each Performance Grant made
to a Participant and the Committee may impose different terms and conditions on
any particular Performance Grant made to any Participant. The Performance Goals,
the Performance Period or Periods, and the Performance Measure applicable to a
Performance Grant shall be set forth in the relevant grant agreement.

                                      --8--

<PAGE>

     (e) PAYMENT OF AWARDS. Each Participant shall be entitled to receive
payment in an amount equal to the aggregate Fair Market Value (if the Unit is
equivalent to a share of Common Stock), or such other value as the Committee
shall specify, of the Units earned in respect of such Performance Award. Payment
in settlement of a Performance Award may be made in shares of Common Stock, in
cash, or in any combination of Common Stock and cash, and at such time or times,
as the Committee, in its discretion, shall determine.

10.   OTHER STOCK-BASED GRANTS AND AWARDS.

     (a) IN GENERAL. The Committee may make other grants and Awards pursuant to
which Common Stock is, or in the future may be, acquired by Participants, and
other grants and Awards to Participants denominated in Common Stock Equivalents
or other Units ("Stock-Based Grants"). Such Stock-Based Grants may be granted
alone or in addition to, in tandem with, or independent of any other grant made
or Award effected under the Plan.

     (b) ELIGIBILITY AND TERMS. The Committee may make Stock-Based Grants to
officers of the Company and other key Employees of the Company and its
Subsidiaries. Subject to the provisions of the Plan, the Committee shall have
authority to determine the Employees to whom, and the time or times at which,
Stock-Based Grants will be made, the number of shares of Common Stock, if any,
to be subject to or covered by each Stock-Based Grant, and any and all other
terms and conditions of each Stock-Based Grant.

     (c) LIMITATIONS. The aggregate number of shares of Common Stock issued to
Participants pursuant to Stock-Based Grants made and Awards effected pursuant to
this Section 10 shall not exceed three million. No Participant shall receive
more than 100,000 shares of Common Stock in settlement of Stock-Based Awards
during any calendar year. The maximum amount any Participant may receive in
Stock-Based Awards during any calendar year shall not exceed $5 million,
determined using the Fair Market Value of any shares of Common Stock delivered
in payment of the Stock-Based Awards on the date or dates of the payment
thereof.

     (d) FORM OF GRANTS; PAYMENT OF AWARDS. Stock-Based Grants may be made in
such form or forms and on such terms and conditions, including the attainment of
specific Performance Goals, as the Committee, in its discretion, shall approve.
Payment of Stock-Based Awards may be made in cash, in shares of Common Stock, or
in any combination of cash and shares of Common Stock, and at such time or
times, as the Committee shall determine.

11.   DEFERRALS.

   The Committee may, whether at the time of grant or at anytime thereafter
prior to payment or settlement, require a Participant to defer, or permit
(subject to such conditions as the Committee may from time to time establish) a
Participant to elect to defer, receipt of all or any portion of any payment of
cash or shares of Common Stock that would otherwise be due to such Participant
in payment or settlement of any Award under the Plan. If any such deferral is
required by the Committee (or is elected by the Participant with the permission
of the Committee), the Committee shall establish rules and procedures for such
payment deferrals. The Committee may provide for the payment or crediting of
interest, at such rate or rates as it shall in its discretion deem appropriate,
on such deferred amounts credited in cash and the payment or crediting of
dividend equivalents in respect of deferred amounts credited in Common Stock
Equivalents. Deferred amounts may be paid in a lump sum or in installments in
the manner and to the extent permitted, and in accordance with rules and
procedures established, by the Committee.

12.   NON-TRANSFERABILITY OF GRANTS AND AWARDS.

   No grant or Award under the Plan, and no right or interest therein, shall be
(i) assignable, alienable or transferable by a Participant, except by will or
the laws of descent and distribution, or (ii) subject to any obligation, or the
lien or claims of any creditor, of any Participant, or (iii) subject to any
lien, encum-

                                      --9--

<PAGE>

brance or claim of any party made in respect of or through any Participant,
however arising. During the lifetime of a Participant, Stock Options and Stock
Appreciation Rights are exercisable only by, and shares of Common Stock issued
upon the exercise of Stock Options and Stock Appreciation Rights or in
settlement of other Awards will be issued only to, and other payments in
settlement of any Award will be payable only to, the Participant or his or her
legal representative. The Committee may, in its sole discretion, authorize
written designations of beneficiaries and authorize Participants to designate
beneficiaries with the authority to exercise Stock Options and Stock
Appreciation Rights granted to a Participant in the event of his or her death.
Notwithstanding the foregoing, the Committee may, in its sole discretion and on
and subject to such terms and conditions as it shall deem appropriate, which
terms and conditions shall be set forth in the related grant agreement: (i)
authorize a Participant to transfer all or a portion of any grant or Award made
to such Participant; provided, that in no event shall any transfer be made to
any person or persons other than such Participant's spouse, children or
grandchildren, or a trust or partnership (or other legal entity which the
Committee may approve) for the exclusive benefit of one or more such persons,
which transfer must be made as a gift and without any consideration; and (ii)
provide for the transferability of a particular grant or Award pursuant to a
qualified domestic relations order. All other transfers and any retransfer by
any permitted transferee are prohibited and any such purported transfer shall be
null and void. Each grant or Award which becomes the subject of a permitted
transfer (and the Participant to whom it was granted by the Company) shall
continue to be subject to the same terms and conditions as were in effect
immediately prior to such permitted transfer. The Participant shall remain
responsible to the Company for the payment of all withholding taxes incurred as
a result of any exercise of such grant or Award. In no event shall any permitted
transfer of a grant or Award create any right in any party in respect of any
grant or Award, other than the rights of the qualified transferee in respect of
such grant or Award specified in the related grant agreement.

13.   CHANGE IN CONTROL.

     (a) EFFECT ON GRANTS. In the event of a Change in Control (as defined
below) of the Company, except as the Board of Directors comprised of a majority
of Continuing Directors may expressly provide otherwise, and notwithstanding any
other provision of the Plan to the contrary: (i) all Stock Options and Stock
Appreciation Rights then outstanding shall become fully exercisable as of the
date of the Change in Control, whether or not then exercisable; (ii) all
restrictions and conditions in respect of all Restricted Stock Grants then
outstanding shall be deemed satisfied as of the date of the Change in Control;
and (iii) all Performance Grants and other Stock-Based Grants shall be deemed to
have been fully earned, at the maximum amount of the award opportunity specified
in the grant agreement, as of the date of the Change in Control.

     (b) CHANGE IN CONTROL DEFINED. A "Change in Control" of the Company shall
occur when: (i) any Acquiring Person (other than the Company, any Subsidiary,
any employee benefit plan of the Company or of any Subsidiary, or any person or
entity organized, appointed or established by the Company or a Subsidiary for or
pursuant to the terms of any such plans), alone, or together with its Affiliates
and Associates, shall become the beneficial owner of fifteen percent (15%) or
more of the shares of Common Stock then outstanding (except pursuant to an offer
for all outstanding shares of Common Stock at a price and upon such terms and
conditions as a majority of the Continuing Directors determines to be in the
best interest of the Company and its shareholders); or (ii) the shareholders of
the Company approve a definitive agreement for a merger or consolidation
involving the Company which would result in the Common Stock outstanding
immediately prior to such merger or consolidation continuing to represent
(whether by remaining outstanding or by being converted into voting securities
of the surviving entity) less than fifty percent of the combined voting power of
the Company and such other entity outstanding immediately after such merger or
consolidation; or (iii) the shareholders of the Company approve a plan of
complete liquidation of the Company or an agreement for the sale or other
disposition of all or substantially all of the assets of the Company; or (iv)
the Continuing Directors no longer constitute a majority of the Board of
Directors. "Acquiring Person" means any person (any indi-

                                     --10--

<PAGE>

vidual, firm, corporation or other entity) who or which, together with all its
Affiliates and Associates, shall be the beneficial owner of a substantial block
of Common Stock. "Affiliate" and "Associate" shall have the respective meanings
ascribed to such terms in Rule 12b-2 under the Exchange Act. "Continuing
Director" means any individual who is a member of the Board of Directors, while
such individual is a member of the Board of Directors, who is not an Acquiring
Person, or an Affiliate or Associate of an Acquiring Person, or a representative
or nominee of an Acquiring Person or of any such Affiliate or Associate, and was
a member of the Board of Directors prior to the occurrence of a Change in
Control, and any successor of a Continuing Director, while such successor is a
member of the Board of Directors, who is not an Acquiring Person, or an
Affiliate or Associate of an Acquiring Person, or representative or nominee of
an Acquiring Person or of any such Affiliate or Associate, and is recommended or
elected to succeed the Continuing Director by a majority of the Continuing
Directors.

14.   AMENDMENT AND TERMINATION.

      The Board of Directors may at any time terminate the Plan, except with
respect to grants then outstanding. The Board of Directors may amend the Plan at
any time and from time to time in such respects as the Board of Directors may
deem necessary or appropriate without approval of the shareholders, unless such
approval is necessary in order to comply with applicable laws, including the
Exchange Act and the Code. In no event may the Board of Directors amend the Plan
without the approval of the shareholders to (i) increase the maximum number of
shares of Common Stock which may be issued pursuant to the Plan, (ii) increase
any limitation set forth in the Plan on the number of shares of Common Stock
which may be issued, or the aggregate value of Awards which may be made, in
respect of any type of grant to all Participants during the term of the Plan or
to any Participant during any specified period, (iii) reduce the minimum
exercise price for Stock Options and Stock Appreciation Rights, or (iv) change
the Performance Measure criteria identified at Section 9(c) of the Plan.

15. MISCELLANEOUS.

     (a) WITHHOLDING TAXES. All Awards under the Plan will be made subject to
any applicable withholding for taxes of any kind. The Company shall have the
right to deduct from any amount payable under the Plan, including delivery of
shares of Common Stock to be made under the Plan, all federal, state, city,
local or foreign taxes of any kind required by law to be withheld with respect
to such payment and to take such other actions as may be necessary in the
opinion of the Company to satisfy all obligations for the payment of such taxes.
If shares of Common Stock are used to satisfy withholding taxes, such shares
shall be valued based on the Fair Market Value thereof on the date when the
withholding for taxes is required to be made. The Company shall have the right
to require a Participant to pay cash to satisfy withholding taxes as a condition
to the payment of any amount (whether in cash or shares of Common Stock) under
the Plan.

     (b) NO RIGHT TO EMPLOYMENT. Neither the adoption of the Plan nor the making
of any grant or Award shall confer upon any Employee any right to continued
employment with the Company or any Subsidiary, nor shall it interfere in any way
with the right of the Company or any Subsidiary to terminate the employment of
any Employee at any time, with or without cause.

     (c) UNFUNDED PLAN. The Plan shall be unfunded and the Company shall not be
required to segregate any assets that may at any time be represented by Awards
under the Plan. Any liability of the Company to any person with respect to any
Award under the Plan shall be based solely upon any contractual obligations that
may be effected pursuant to the Plan. No such obligation of the Company shall be
deemed to be secured by any pledge of, or other encumbrance on, any property of
the Company.

     (d) PAYMENTS TO TRUST. The Committee is authorized to cause to be
established a trust agreement or several trust agreements whereunder the
Committee may make payments of amounts due or to become due to Participants in
the Plan.

     (e) ENGAGING IN COMPETITION WITH COMPANY. In the event a Participant
terminates his or her employment with the Company or a Subsidiary for any reason
whatsoever, and within eighteen (18) months after the date thereof accepts
employment with any competitor of, or otherwise engages in com-

                                     --11--

<PAGE>

petition with, the Company, the Committee, in its sole discretion, may require
such Participant to return, or (if not received) to forfeit, to the Company the
economic value of any Award which is realized or obtained (measured at the date
of exercise, vesting or payment) by such Participant (i) at any time after the
date which is six months prior to the date of such Participant's termination of
employment with the Company or (ii) during such other period as the Committee
may determine.

     (f) OTHER COMPANY BENEFIT AND COMPENSATION PROGRAMS. Payments and other
benefits received by a Participant under an Award made pursuant to the Plan
shall not be deemed a part of a Participant's regular, recurring compensation
for purposes of any termination indemnity or severance pay law of any country
and shall not be included in, nor have any effect on, the determination of
benefits under any pension or other employee benefit plan or similar arrangement
provided by the Company or any Subsidiary, unless (i) expressly so provided by
such other plan or arrangement or (ii) the Committee expressly determines that
an Award or a portion thereof should be included as recurring compensation.
Nothing contained in the Plan shall prohibit the Company or any Subsidiary from
establishing other special awards, incentive compensation plans, compensation
programs and other similar arrangements providing for the payment of
performance, incentive or other compensation to Employees. Payments and benefits
provided to any Employee under any other plan, including, without limitation,
any stock option, stock award, restricted stock, deferred compensation, savings,
retirement or other benefit plan or arrangement, shall be governed solely by the
terms of such other plan.

     (g) SECURITIES LAW RESTRICTIONS. In no event shall the Company be obligated
to issue or deliver any shares of Common Stock if such issuance or delivery
shall constitute a violation of any provisions of any law or regulation of any
governmental authority or securities exchange. No shares of Common Stock shall
be issued under the Plan unless counsel for the Company shall be satisfied that
such issuance will be in compliance with all applicable Federal and state
securities laws and regulations and all requirements of any securities exchange
on which the Common Stock is listed.

     (h) GRANT AGREEMENTS. Each Participant receiving a grant under the Plan
shall enter into a grant agreement with the Company in a form specified by the
Committee agreeing to the terms and conditions of the grant and such related
matters as the Committee shall, in its sole discretion, determine.

     (1) SEVERABILITY. In the event any provision of the Plan shall be held to
be invalid or unenforceable for any reason, such invalidity or unenforceability
shall not affect the remaining provisions of the Plan.

     (j) TRANSITION - 1989 PLAN. The Plan replaces and supersedes the 1989
Goodyear Performance and Equity Incentive Plan (the "1989 Plan") and the 1989
Plan shall automatically terminate when the Plan becomes effective, except that
such termination shall not affect any grants or awards then outstanding under
the 1989 Plan.

     (k) GOVERNING LAW. The Plan shall be governed by and construed in
accordance with the laws of the State of Ohio.

                                     --12--exv10w6

Exhibit 10.6

THE GOODYEAR TIRE & RUBBER COMPANY

OUTSIDE DIRECTORS’ EQUITY PARTICIPATION PLAN

(As Adopted February 2, 1996 and last Amended as of October 1, 2010)

	1.	 	Purpose. The purpose of the Plan is to enable The Goodyear Tire & Rubber Company
(the “Company”) to (a) attract and retain outstanding individuals to serve as non-employee
directors of the Company, (b) further align the interests of non-employee directors with
the interests of the other shareholders of the Company by making the amount of the
compensation of non-employee directors dependent in part on the value and appreciation
over time of the Common Stock of the Company, and (c) permit each non-employee director to
defer receipt of all or a portion of his or her annual retainer until after retirement
from the Board of Directors of the Company.
	 
	2.	 	Definitions. As used in the Plan, the following words and phrases shall have
the meanings specified below:
	 
	 	 	     “Account” means any of, and “Accounts” means all of, the
Equity Participation Accounts and the Retainer Deferral Accounts maintained in the
records of the Company for Participants.
	 
	 	 	     “Accrual” means any dollar amount credited to an Account, including
Special Accruals, Quarterly Accruals, Retainer Deferral Accruals, Dividend
Equivalents and Interest Equivalents.
	 
	 	 	     “Beneficiary” means the person or persons designated by a Participant
pursuant to Section 12.
	 
	 	 	     “Board” means the Board of Directors of the Company.
	 
	 	 	     “Committee” means the Compensation Committee of the Board.
	 
	 	 	     “Common Stock” means the Common Stock, without par value, of the
Company.
	 
	 	 	     “Conversion Date” means, with respect to each Account of each Retired
Outside Director, the later of (i) the first business day of the seventh month
following the month during which such Retired Outside Director terminated his or
her service as a member of the Board, or (ii) the fifth business day of the
calendar year following the calendar year during which such Retired Outside
Director terminated his or her service as a member of the Board. For all balances
that are earned and vested after December 31, 2004, the term “termination of
service” means a separation from service as defined in Section 409A of the Code.
	 
	 	 	     “Dividend Equivalent” means, with respect to each dividend payment
date for the Common Stock, an amount equal to the cash dividend per share of Common
Stock which is payable on such dividend payment date.

1

 

	 	 	     “Equity Grant Amount” means from October 1, 2008 through September 30, 2010,
$23,750; and for service on or after October 1, 2010, $27,500.
	 
	 	 	     “Equity Participation Account” means a bookkeeping account maintained
by the Company for a Participant to which Quarterly Accruals and Dividend
Equivalents are credited in respect of Outside Directors through the Conversion
Date (and, with respect to each Outside Director serving as a Director on February
2, 1996, a Special Accrual will be credited) and Interest Equivalents are credited
on Dollar denominated amounts subsequent to the Conversion Date, which Account
shall be denominated in Units until the Conversion Date and, thereafter, for Units
granted prior to January 1, 2009 shall be denominated in dollars and for Units
granted after December 31, 2008 (for service on or after October 1, 2008) shall be
denominated in shares of Common Stock except any remaining fractional Unit shall
be denominated in Dollars.
	 
	 	 	     “Fair Market Value of Common Stock” means, in respect of any date on
or as of which a determination thereof is being or to be made, the closing market
price of the Common Stock reported on the New York Stock Exchange Composite
Transactions Tape on such date, or, if the Common Stock was not traded on such
date, on the next preceding day on which sales of shares of the Common Stock were
reported on the New York Stock Exchange Composite Transactions tape.
	 
	 	 	     “Interest Equivalent” has the meaning assigned in Section 11(C).
	 
	 	 	     “Outside Director” means and includes each person who, at the time
any determination thereof is being made, is a member of the Board and who is not
and never has been an employee of the Company or any subsidiary or affiliate of
the Company.
	 
	 	 	     “Participant” means and includes, at the time any determination
thereof is being made, each Outside Director and each Retired Outside Director who
has a balance in his or her Accounts.
	 
	 	 	     “Restricted Stock Unit” means the Units issued pursuant to a
Restricted Stock Grant under Section 8 of the Company’s 2008 Performance Plan, or
any successor equity compensation plan, so long as such Units remains subject to
the restrictions and conditions specified in this Plan pursuant to which such
Restricted Stock Grant is made.
	 
	 	 	     “Retainer” means with respect to each Outside Director the retainer
fee payable to such Outside Director by the Company, plus all meeting attendance
fees payable by the Company to such Outside Director, in respect of a calendar
quarter.
	 
	 	 	     “Retainer Deferral Account” means a bookkeeping account maintained by
the Company for a Participant to which Retainer Accruals and Dividend Equivalents
are credited through the Conversion Date and Interest Equivalents on Dollar
denominated amounts are credited subsequent to the Conversion Date, which

2

 

	 	 	Account shall be denominated in Units until the Conversion Date and, thereafter,
for Units created prior to January 1, 2011 shall be denominated in dollars and for
Units created after December 31, 2010 shall be denominated in shares of Common
Stock except any remaining fractional Unit shall be denominated in Dollars.
	 
	 	 	     “Retired Outside Director” means an Outside Director who has
terminated his or her service as a member of the Board and is entitled to receive
distributions in respect of his or her Account or Accounts as provided in Section
10.
	 
	 	 	     “Plan” means The Goodyear Tire & Rubber Company Outside Directors’
Equity Participation Plan, the provisions of which are set forth herein.
	 
	 	 	     “Quarterly Accrual” has the meaning assigned in Section 7.
	 
	 	 	     “Retainer Deferral Accrual” has the meaning assigned in Section 8.
	 
	 	 	     “Special Accrual” has the meaning assigned in Section 7.
	 
	 	 	     “Unit” means an equivalent to a hypothetical share of Common Stock
which is the denomination into which all dollar Accruals (other than Interest
Equivalents) to any Account are to be translated. Upon the Accrual of any dollar
amount to any Account on or prior to the Conversion Date thereof, such dollar
amount shall be translated into Units by dividing the dollar amount of such
Accrual by the Fair Market Value of the Common Stock on the day on or as of which
such Accrual to the Account is made or, if not made on a day on which the New
York Stock Exchange is open for trading, on the trading day next following the
date of the Accrual. Additionally, each Restricted Stock Unit granted is equal
to one Unit. Units, and the translation thereof from dollars, shall be
calculated and recorded in the Accounts rounded to the fourth decimal place.
	 
	 	 	     “Year of Service” means, with respect to each Outside Director, the
twelve month period commencing with the date of the individuals’ election as an
Outside Director or any anniversary thereof.

	3.	 	Effective Date. The Plan is adopted on, and is effective on and after,
February 2, 1996.
	 
	4.	 	Eligibility. Each person who serves as an Outside Director at any time
subsequent to February 1, 1996 is eligible to participate in the Plan.
	 
	5.	 	Administration. Except with respect to matters expressly reserved for action by
the Board pursuant to the provisions of the Plan, the Plan shall be administered by the
Committee, which shall have the exclusive authority except as aforesaid to take any action
necessary or appropriate for the proper administration of the Plan, including the full
power and authority to interpret the Plan and to adopt such rules, regulations and
procedures consistent with the terms of the Plan as the Committee deems necessary or
appropriate. The Committee’s interpretation of the Plan, and all actions taken within the
scope of its authority, shall be final and binding on the Company and the Participants.

3

 

	6.	 	Equity Participation Accounts. There shall be established and maintained by the
Company an Equity Participation Account with respect to each Outside Director to which
Accruals or Grants of Restricted Stock Units shall be made from time to time in accordance
with the provisions of the Plan.
	 
	7.	 	(A) Quarterly Accruals. On the first day of each calendar quarter,
commencing April 1, 2007 and ending on October 1, 2008 for service through September 30,
2008, the Company shall credit $23,750 ($20,000 in respect of each quarter during the
period beginning July 1, 2005 and ended on December 31, 2006, $17,500 in respect of each
quarter during the period beginning July 1, 2004 and ended on June 30, 2005, $7,500 in
respect of each quarter during the period beginning January 1, 2003 and ended on June
30, 2004, $2,500 in respect of each quarter during the period beginning July 1, 1998 and
ended on December 31, 2002 and $2,000 in respect of each quarter during the period
beginning April 1, 1996 and ended on June 30, 1998) to the Equity Participation Account
of each Outside Director who is then a member of the Board of Directors and served as a
member of the Board for the entire calendar quarter ended immediately prior to such day
(each a “Quarterly Accrual”).
	 
	 	 	(B) (1) Special Accruals. The Company shall credit to the Equity Participation
Account of each Outside Director who was an Outside Director on January 1, 2007, a $3,750
accrual as of April 2, 2007.
	 
	 	 	(B) (2) Special Accruals. On April 13, 2004, the Company shall credit to the
Equity Participation Account of each Outside Director eligible to receive a quarterly accrual
as of April 1, 2004, an additional credit in the amount of $20,000.
	 
	 	 	(B) (3) Special Accruals. On February 2, 1996, the Company shall credit to the
Equity Participation Account of each Outside Director then serving as a member of the
Board of Directors a special, one-time credit (a “Special Accrual”), the amount of which
shall be determined in accordance with the following formula:

N

SP = [FRPA - FQC] / 1.01943

	 	 	where,
	 
	 	 	SP is the dollar amount of the Special Accrual in respect of a participating Outside
Director at February 2, 1996;
	 
	 	 	FRPA is the future value of an annuity at age 70 under the Retirement Plan for Outside
Directors (as provided by Watson Wyatt and based on the UP-1984 mortality table) that
would be needed to provide a lifetime annuity at age 70 assuming the benefit increases 3%
per year starting in 1997.
	 
	 	 	FQC is the future value of quarterly accruals, calculated on the value at age 70 of
$1,000 quarterly accruals to the Equity Participation Account of the participating
Outside Director starting April 1, 1996, assuming a compound annual growth rate of 8%.
	 
	 	 	N is the number of quarters until the Outside Director retires having attained age 70.

4

 

	 	 	(C) Restricted Stock Units Grant. Effective for service on or after October 1,
2008 to be granted January 1, 2009 and on the first day of each succeeding calendar
quarter, each Outside Director who is then a member of the Board of Directors and served
as a member of the Board for any portion of the calendar quarter ended immediately prior
to such day, will be granted the number of Restricted Stock Units that will be equal to
the applicable Equity Grant Amount (or the pro-rata amount based on the number of days of
service in the quarter if the Outside Director did not serve the whole quarter) divided
by the Fair Market Value of Common Stock for such grant date, or if the New York Stock
Exchange is not open for trading on such date, the grant date shall be the next following
trading date. For the last quarterly grant with respect to the last quarter of Board
service, any fractional amount of the applicable Equity Grant Amount (or the pro-rata
amount based on the number of days of service in the quarter if the Outside Director did
not serve the whole quarter) that is not utilized in converting the grant into whole
 shares of Restricted Stock when added to any outstanding fractional Restricted Stock Unit
shall be paid in cash when the shares are distributed pursuant to 10. (C). Effective for
grants made in respect of service on or after October 1, 2010, the Restricted Stock Units
are further restricted by only ratably vesting over three years, subject to accelerated
full vesting upon becoming a Retired Outside Director.
	 
	 	 	(D) Translation of Accruals into Units. Each Accrual (other than Interest
Equivalents) to an Equity Participation Account shall be translated into Units by
dividing the dollar amount thereof by the Fair Market Value of the Common Stock on the
day as of which such Accrual is made, or, if the date on or as of which such Accrual is
made is not a day on which the New York Stock Exchange is open for trading, on the next
following trading day. Upon such translation of an Accrual into Units, the resulting
number of Units shall be credited to the relevant Equity Participation Account (in lieu
of the dollar amount of such Accrual) and such Accrual shall continue to be denominated
in such number of Units until the Conversion Date for such Account, when those Units
derived from Accruals (as compared to Units from Restricted Stock Unit Grants) will be
converted into a dollar amount equal to the product of (i) the number of Units credited
to such Account on such Conversion Date, multiplied by (ii) the Fair Market Value of the
Common Stock on such Conversion Date.
	 
	8.	 	Retainer Deferral Accounts. Each Outside Director may, at his or her sole
election, defer receipt of 25%, 50%, 75% or 100% of his or her Retainer payable in
respect of and during any calendar year by electing to have such amount credited to his
or her Retainer Deferral Account (herein referred to as a “Retainer Account Accrual”).
Each deferral election, if any, shall be made by an Outside Director annually, must be in
respect of an entire calendar year and shall be made not later than, and shall become
irrevocable as of, June 30th of the year prior to the calendar year in respect of which
such election is being made. The dollar amount of each Retainer Account Accrual shall be
translated (in the manner specified in Section 7(D)) into Units on the date such Retainer
Account Accrual is credited to the relevant Retainer Deferral Account, which shall be the
day on which the payment of such portion of the Retainer would have been made absent the
election of the Outside Director to defer the payment of all or a portion thereof. Upon
such translation into Units, the resulting number of Units shall be credited to the
relevant Retainer Deferral Account (in lieu of the dollar amount of such Accrual) and
such Accrual shall continue to be denominated in such number of Units until the
Conversion Date, when for Units in respect of deferrals elected

5

 

	 	 	prior to January 1, 2011 applicable to plans years through December 31, 2010, the Units
will be converted into a dollar amount equal to the product of (i) the number of Units
credited to such Retainer Deferral Account on such Conversion Date, multiplied by (ii) the
Fair Market Value of the Common Stock of such Conversion Date. For Units relating to
deferrals effective on or after January 1, 2011, each Unit will be converted to a share of
Common Stock and all such shares of Common Stock will be delivered on the fifth business
day of the calendar quarter following the quarter of his or her separation from Board
service with any remaining fractional Unit paid in cash at that time.
	 
	9.	 	Dividend Equivalents. With respect to each Account and Restricted Stock Unit,
from time to time through the relevant Conversion Date each Unit in such Account and
Restricted Stock Unit shall be credited with a Dividend Equivalent at the same time as
cash dividends are paid on shares of the Common Stock. Dividend Equivalents credited to
each Account and Restricted Stock Unit shall be automatically translated into Units or
Restricted Stock Units by dividing the dollar amount of such Dividend Equivalents by the
Fair Market Value of the Common Stock on the date the relevant Dividend Equivalent is
accrued to such Account and Restricted Stock Unit. The number of Units or Restricted
Stock Units resulting shall be credited to such Account and Restricted Stock Unit (in
lieu of the dollar amount of such Accrual) and such Accrual shall be denominated in Units
until the Conversion Date.
	 
	10.	 	Eligibility For Benefits. (A) Equity Participation Accounts. (1) For
all balances that were earned and vested prior to January 1, 2005, each Retired Outside
Director shall be entitled to receive the balance of his or her Equity Participation
Account in accordance with the provisions of Section 11 of the Plan, unless the Board of
Directors acts to reduce the amount of, or to deny the payment of, the Equity
Participation Account of such Retired Outside Director; provided,
however, that the Board of Directors shall not have the authority to reduce the
amount of, or to deny the payment of, the Equity Participation Account of any Outside
Director who terminates his or her service on the Board of Directors if (i) prior to such
termination of service, the Retired Outside Director either (x) had five or more years of
service and had attained age 70, or (y) had ten or more years of service and had attained
age 65, or (ii) such termination was due to the death of the Outside Director.
Notwithstanding the foregoing, the Board may at any time deny the payment of, or reduce
the amount of, the Equity Participation Account of any Participant if, in the opinion of
the Board, such Participant was engaged in an act of misconduct or otherwise engaged in
conduct contrary to the best interest of the Company. (2) For all balances that are
earned or vested after December 31, 2004, each Retired Outside Director shall be entitled
to receive the balance of his or her Equity Participation Account in accordance with the
provisions of Section 11 of the Plan for Units that are to be paid in Dollars (Units
granted from Accruals prior to January 1, 2009). Notwithstanding the foregoing, the
Board may at any time deny the payment of, or reduce the amount of, the Equity
Participation Account of any Participant if, in the opinion of the Board, such
Participant was engaged in an act of misconduct or otherwise engaged in conduct
detrimental to the Company.

	 	(B)	 	Retainer Deferral Accounts. Each Retired Outside Director shall be
entitled to receive the balance, if any, of his or her Retainer Deferral Account in
accordance with the provisions of Section 11 of the Plan.

6

 

	 	(C)	 	Restricted Stock Units. Each Outside Director will receive shares of Common
Stock for their Restricted Stock Units on the fifth business day of the calendar
quarter following the quarter of his or her separation from Board service.
Notwithstanding the foregoing, the Board may at any time deny the payment of, or
reduce the amount of, the Restricted Stock Units of any Participant if, in the
opinion of the Board, such Participant was engaged in an act of misconduct or
otherwise engaged in conduct detrimental to the Company.

	11.	 	Payment of Accounts. (A) All distributions of Equity Participation Accounts and
Retainer Deferral Accounts to Participants shall be made in cash or Common Stock pursuant
to the terms of the Accrual, Grant or deferral according to the provisions of the Plan.
	 
	 	 	(B) In the case of each Retired Outside Director, the Units credited to his or her Equity
Participation Account and Retainer Deferral Account, respectively, shall, on the
Conversion Date for such Retired Outside Director, be converted to a dollar denominated
amount by multiplying the number of Units that are to be paid in Dollars in each of the
Accounts by the Fair Market Value of the Common Stock on such Conversion Date and for
Units that are to be paid in Common Stock, each Unit is equal to one share.
	 
	 	 	(C) For all balances that were earned and vested prior to January 1, 2005, from and
after the Conversion Date until paid, the balance (expressed in dollars) of the Equity
Participation Account, and, if any, of the Retainer Deferral Account, of each Retired
Outside Director shall be credited monthly until paid with “Interest Equivalents”, which
shall be equal to one-twelfth (1/12th) of the product of (x) the dollar balance of such
Account, multiplied by (y) the sum (expressed as a decimal to six places) of the rate
equivalent to the prevailing annual yield of United States Treasury obligations having a
maturity of ten years (or, if not exactly ten years, as close to ten years as possible
without exceeding ten years) at the Conversion Date, plus one percent (1%).
	 
	 	 	(D) (1) For all balances that were earned and vested prior to January 1, 2005, the
Accounts of each Retired Outside Director will be paid in ten (10) annual installments
commencing on the fifth business day following the Conversion Date with respect to such
Accounts, and thereafter on each anniversary of such Conversion Date; each installment to
be in an amount equal to the total dollar balance of such Accounts on the fifth business
day prior to the date such annual installment is due and payable divided by the number of
installments remaining (including the annual installment then being calculated for
payment) to be paid.
	 
	 	 	(D) (2) For all balances that are earned or vested after December 31, 2004, the payment
of such balance for Units that are to be paid in Dollars (Units created from Accruals
prior to January 1, 2009) shall be made in a lump sum payment on the fifth business day
following the Conversion Date in respect of such Retired Outside Director. For Units
relating to deferrals effective on or after January 1, 2011, each Unit will be converted
to a share of Common Stock and all such shares of Common Stock will be delivered on the
fifth business day of the calendar quarter following the quarter of his or her separation
from Board service with any remaining fractional Unit paid in cash at that time.
	 
	 	 	(E) (1) For all balances that were earned and vested prior to January 1, 2005, the
Committee may, in its sole discretion, elect to pay the Equity Participation Account or
the

7

 

	 	 	Retainer Deferral Account, or both, of any Retired Outside Director in a lump sum or in
fewer than ten installments. In the event that the Committee shall elect to make a lump
sum payment of an Account of any Retired Outside Director (or to make payment thereof in
fewer than ten annual installments), the payment of such lump sum shall be made (or such
installments shall commence) on the fifth business day following the Conversion Date in
respect of such Retired Outside Director.
	 
	 	 	(F) In the event of the death of an Outside Director, the entire balance of his or her
Accounts shall be eligible for payment which shall be made in a lump sum on the
Conversion Date for his or her Accounts.
	 
	 	 	(G) In the event of the death of a Retired Outside Director, the entire balance of his
or her Accounts(s) shall be paid on the Conversion Date for his or her Accounts (if it
has not occurred) or on the next occurring anniversary thereof.
	 
	12.	 	Designation of Beneficiary. A Participant may designate a person or persons
(the “Beneficiary”) to receive, after the Participant’s death, any remaining benefits
payable under the Plan. Such designation shall be made by the Participant on a form
prescribed by the Committee. The Participant may at any time change or revise such
designation by filing a new form with the Committee. The person or persons named as
beneficiary in the designation of beneficiary form duly completed and filed with the
Company bearing the most recent date will be the Beneficiary. All payments due under the
Plan after the death of a Participant shall be made to his or her Beneficiary, except
that (i) if the Participant does not designate a Beneficiary or the Beneficiary
predeceases the Participant, any remaining benefits payable under the Plan after the
Participant’s death shall be paid to the Participant’s estate, and (ii) if the
Beneficiary survives the Participant but dies prior to receiving the benefits payable
under the Plan, the benefits under the Plan shall be paid to the Beneficiary’s estate.
	 
	13.	 	Amendment and Termination. The Board may at any time, or from time to time,
amend or terminate the Plan; provided, however, that no such amendment or termination
shall reduce Plan benefits which accrued prior to such amendment or termination without
the prior written consent of each person entitled to receive benefits under the Plan who
is adversely affected by such action; and, provided further, that the Plan shall not be
amended more frequently than once every six months, other than to comply with changes in
the Internal Revenue Code, the Employee Retirement Income Security Act, or the rules
promulgated thereunder.
	 
	 	 	Notwithstanding the foregoing, no termination or amendment of this Plan may accelerate
payment of post-2004 benefits to any Participant except under the following conditions:
	 
	 	 	     (1) The Company may terminate and liquidate the Plan within 12 months of a
corporate dissolution taxed under section 331 of the Internal Revenue Code, or with the
approval of a bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A), provided that the
amounts deferred under the Plan are included in the Participants’ gross incomes in the
latest of the following years (or, if earlier the taxable year in which the amount is
actually or constructively received): (a) the calendar year in which the Plan termination
and liquidation occurs; (b) the first calendar year in which the amount is no longer
subject to a

8

 

	 	 	substantial risk of forfeiture; or (c) the first calendar year in which the payment
is administratively practicable.
	 
	 	 	     (2) The Company may terminate and liquidate the Plan pursuant to irrevocable action
taken by the Board of Directors within the 30 days preceding or the 12 months following a
change in control event (as defined in Treasury Regulation §1.409A-3(i)(5)), provided
that this paragraph will only apply to a payment under a plan if all agreements, methods,
programs, and other arrangements sponsored by the Company immediately after the time of
the change in control event with respect to which deferrals of compensation are treated
as having been deferred under a single plan under Treasury Regulation §1.409A-1(c)(2) are
terminated and liquidated with respect to each Participant that experienced the change in
control event, so that under the terms of the termination and liquidation all such
participants are required to receive all amounts of compensation deferred under the
terminated agreements, methods, programs and other arrangements within 12 months of the
date the Company irrevocably takes all necessary action to terminate and liquidate the
agreements, methods, programs, and other arrangements.
	 
	 	 	     (3) The Company may terminate and liquidate the Plan, provided that (a) the
termination and liquidation does not occur proximate to a downturn in the financial
health of the Company; (b) the Company terminates and liquidates all agreements, methods,
programs, and other arrangements sponsored by the Company that would be aggregated with
any terminated and liquidated agreements, methods, programs, and other arrangements under
Treasury Regulation §1.409-1(c) if any Participant had deferrals of compensation under
all of the agreements, methods, programs, and other arrangements that are terminated and
liquidated; (c) no payments in liquidation of the Plan are made within 12 months of the
date the Company takes all necessary action to irrevocably terminate and liquidate the
Plan other than payments that would be payable under the terms of the Plan if the action
to terminate and liquidate the Plan had not occurred; (d) all payments are made within 24
months of the date the Company takes all necessary action to irrevocably terminate and
liquidate the Plan; and (e) the Company does not adopt a new plan that would be
aggregated with any terminated and liquidated plan under Treasury Regulation §1.409A-1(c)
if the same service provider participated in both plans, at any time within three years
following the date the service recipient takes all necessary action to irrevocably
terminate and liquidate the Plan.
	 
	14.	 	Plan Unfunded, Rights Unsecured. With respect to the Equity Participation
Account and the Retainer Deferral Account, the Plan is unfunded. Each Account under the
plan represents only a general contractual conditional obligation of the Company to pay
in cash or shares of Common Stock the balance thereof in accordance with the provisions
of the Plan. All Restricted Stock Units or shares of Common Stock granted or payable
under the Plan will be made from and pursuant to the Company’s 2008 Performance Plan, or
any successor equity compensation plan.
	 
	15.	 	Assignability. All payments under the Plan shall be made only to the
Participant or his or her duly designated Beneficiary (in the event of his or her death). Except pursuant to
Section 12 or the laws of descent and distribution and except as may be required by law,
the right to receive payments under the Plan may not be assigned or transferred by, and
are not subject to the claims of creditors of, any Participant or his or her Beneficiary
during his or her lifetime.

9

 

	16.	 	Change in the Common Stock. In the event of any stock dividend, stock split,
recapitalization, merger, split-up or other change affecting the Common Stock of the
Company, the Units in each Account shall be adjusted in the same manner and proportion as
the change to the Common Stock.
	 
	17.	 	Quarterly Statements of Accounts – Valuation. Each calendar quarter the Company
will prepare and send to each Participant a statement reporting the status of his or her
Account or Accounts and Restricted Stock Units as of the close of business on the last
business day of the prior calendar quarter. To the extent an Account is denominated in
Units, the value of the Units and Restricted Stock Units will be reported at the Fair
Market Value of the Common Stock on the relevant valuation date.
	 
	18.	 	No Other Rights. Neither the establishment of the Plan, nor any action taken
thereunder, shall in any way obligate the Company to nominate an Outside Director for
re-election or continue to retain an Outside Director on the Board or confer upon any
Outside Director any other rights in respect of the Company.
	 
	19.	 	Successors of the Company. The Plan shall be binding upon any successor to the
Company, whether by merger, acquisition, consolidation or otherwise.
	 
	20.	 	Law Governing. The Plan shall be governed by the laws of the State of Ohio.

10

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