Document:

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Exhibit 10(b)

GENERAL MOTORS 2002 ANNUAL INCENTIVE PLAN

As Amended December 4, 2006

     1. The purposes of the General Motors 2002 Annual Incentive Plan (this “Plan”) are to
reward performance and provide incentive for future endeavor to certain employees who contribute to
the success of the business by making them participants in that success.

     2(a). The Executive Compensation Committee of the General Motors Board of Directors (the
“Committee”), as from time to time constituted pursuant to the by-laws of General Motors
Corporation (the “Corporation” or “GM”), may, prior to June 1, 2007, authorize the granting to
employees of the Corporation of annual target awards. The Committee, in its sole discretion, shall
determine the performance levels at which different percentages of such awards shall be earned, the
collective amount for all awards to be granted at any one time, and the individual annual grants
with respect to employees who are officers of the Corporation. The Committee may delegate to the
Chief Executive Officer responsibility for determining, within the limits established by the
Committee, individual award grants for employees who are not executive officers of the Corporation.
All such awards shall be denominated and paid in cash (U.S. dollars or local currency equivalent).

     2(b). Prior to the grant of any target award, the Committee shall establish for each such
award performance levels related to the enterprise (as defined below) at which 100% of the award
shall be earned and a range (which need not be the same for all awards) within which greater and
lesser percentages shall be earned. The term “enterprise” shall mean the Corporation and/or any
unit or portion thereof, and any entities in which the Corporation has, directly or indirectly, a
substantial ownership interest.

     2(c). With respect to the performance levels to be established pursuant to paragraph 2(b), the
specific measures for each grant shall be established by the Committee at the time of such grant.
In creating these measures, the Committee may establish the specific goals based upon or relating
to one or more of the following business criteria: asset turnover, cash flow, contribution margin,
cost objectives, cost reduction, earnings per share, economic value added, increase in customer
base, inventory turnover, market price appreciation of the Corporation’s common stock, market
share, net income, net income margin, operating profit margin, pre-tax income, productivity, profit
margin, quality, return on assets, return on net assets, return on capital, return on equity,
revenue, revenue growth, and/or total shareholder return. The business criteria may be expressed in
absolute terms or relative to the performance of other companies or to an index.

     2(d). If any event occurs during a performance period which requires changes to preserve the
incentive features of this Plan, the Committee may make appropriate adjustments.

     2(e). Except as otherwise provided in paragraph 6, the percentage of each target award to be
distributed to an employee shall be determined by the Committee on the basis of the performance
levels established for such award and the performance of the applicable enterprise or specified
portion thereof, as the case may be, during the performance period. Following determination of the
final payout percentage, the Committee may, upon the recommendation of the Chief Executive Officer,
make adjustments to awards for officers of the Corporation to reflect

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individual performance during such period, which for covered officers will involve only
negative discretion. A covered officer is any individual whose compensation in the year of expected
payment of an award, or in the year in which the Corporation will claim a tax deduction in respect
of such individual’s award thereunder, will be subject to the provisions of Section 162(m) of the
Internal Revenue Code of 1986, as amended from time to time, as determined by the Committee.
Adjustments to awards to reflect individual performance for employees who are not executive officers
of the Corporation may be made by the Chief Executive Officer. Any target award, as determined and
adjusted pursuant to this paragraph 2(e) and paragraph 6, is herein referred to as a “final award.”
The total aggregate final award paid to any employee for any one year shall not exceed $7.5
million. The Committee shall certify the final awards earned by covered officers in writing prior
to any award payments.

     3. Subject to such additional limitations or restrictions as the Committee may impose, the
term “employees” shall mean persons (a) who are employed by the Corporation, or any subsidiary (as
such term is defined below), including employees who are also directors of the Corporation or any
such subsidiary, or (b) who accept (or previously have accepted) employment, at the request of the
Corporation, with any entity not described in 3(a) above but in which the Corporation has, directly
or indirectly, a substantial ownership interest. For purposes of this Plan, the term “subsidiary”
shall mean (i) a corporation of which capital stock having ordinary voting power to elect a
majority of the board of directors of such corporation is owned, directly or indirectly, by the
Corporation, or (ii) any unincorporated entity in respect of which the Corporation can exercise,
directly or indirectly, comparable control. The Committee shall, among other things, determine when
and to what extent individuals otherwise eligible for consideration shall become or cease to be, as
the case may be, employees for purposes of this Plan and shall determine when, and under what
circumstances, any individual shall be considered to have terminated employment for purposes of
this Plan. To the extent determined by the Committee, the term employees shall be deemed to include
former employees and any beneficiaries thereof. For purposes of this Plan, a “participant” shall
mean an employee who receives an award hereunder.

     4(a). Target awards which have become final awards may be subject to a vesting schedule
established by the Committee. Except as otherwise provided in this Plan, no final award (or portion
thereof) subject to a vesting schedule shall be paid prior to vesting and the unpaid portion of any
final award shall be subject to the provisions of paragraph 6. The Committee shall have the
authority to modify a vesting schedule as may be necessary or appropriate in order to implement the
purposes of this Plan. As a condition to the vesting of all or any portion of a final award the
Committee may, among other things, require an employee to enter into such agreements as the
Committee considers appropriate and in the best interests of the Corporation, except for awards
that vest pursuant to paragraph 12 of this Plan.

     4(b). With respect to target awards which have become final awards as provided in paragraph
2(e), the Committee may, in its discretion, pay to the participant interest on all portions thereof
which are unvested. No holder of a target award shall have any rights to interest prior to such
target award becoming a final award. Any interest payable with respect to such unvested final
awards shall be paid at such times, in such amounts, and in accordance with such procedures as the
Committee shall determine.

     5(a). An employee shall be eligible for consideration for a target award based on such
criteria as the Committee shall from time to time determine.

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     5(b). No target award shall be granted to any director of the Corporation who is not an
employee at the date of grant.

     6(a). Payment of any final award (or portion thereof) to an individual employee shall be
subject to the satisfaction of the conditions precedent that such employee: (i) continue to render
services as an employee (unless this condition is waived by the Committee), (ii) refrain from
engaging in any activity which, in the opinion of the Committee, is competitive with any activity
of the Corporation or any subsidiary (except that employment at the request of the Corporation with
an entity in which the Corporation has, directly or indirectly, a substantial ownership interest,
or other employment specifically approved by the Committee, shall not be considered to be an
activity which is competitive with any activity of the Corporation or any subsidiary) and from
otherwise acting, either prior to or after termination of employment, in any manner inimical or in
any way contrary to the best interests of the Corporation, and (iii) furnish to the Corporation
such information with respect to the satisfaction of the foregoing conditions precedent as the
Committee shall reasonably request. Except as otherwise provided under paragraph 6(c) below, the
failure by any employee to satisfy such conditions precedent shall result in the immediate
cancellation of the unvested portion of any final award previously made to such employee and such
employee shall not be entitled to receive any consideration in respect of such cancellation.

     6(b). If any employee is dismissed for cause or quits employment without the prior consent of
the Corporation, the unvested portion of any final award previously made to such employee shall be
canceled as of the date of such termination of employment, and such employee shall not be entitled
to receive any consideration in respect of such cancellation.

     6(c). Upon termination of an employee’s employment for any reason other than as described in
(b) above, the Committee may, but shall not in any case be required to, waive the condition
precedent relating to the continued rendering of services in respect of all or any specified
percentage of the unvested portion of any final award, as the Committee shall determine. To the
extent such condition precedent is waived, the Committee may accelerate the vesting of all or any
specified percentage of the unvested portion of any final award.

     6(d). For purposes of this Plan, a qualifying leave of absence, determined in accordance with
procedures established by the Committee, shall not constitute a termination of employment, except
that a final award shall not vest during a leave of absence granted an employee for local, state,
provincial, or federal government service.

     6(e). If employment of an employee is terminated by death, all final awards not currently
vested shall immediately vest.

     7. Subject to paragraph 6, all final awards which have vested in accordance with the
provisions of this Plan shall be paid in cash promptly following the determination of such final
award or such vesting, if applicable, but not later than two and one-half months after the end of
the calendar year in which determination, or vesting, if applicable occurs. If the Corporation
shall have any unpaid claim against an employee arising out of or in connection with the employee’s
employment with the Corporation, such claim may be offset against awards under this Plan. Such
claim may include, but is not limited to, unpaid taxes, the obligation to repay gains pursuant to
paragraph 5(e) of the General Motors 2002 Stock Incentive Plan, or Corporate business credit card
charges.

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     8. To the extent that any employee, former employee, or any other person acquires a right to
receive payments or distributions under this Plan, such right shall be no greater than the right of
a general unsecured creditor of the Corporation. All payments and distributions to be made
hereunder shall be paid from the general assets of the Corporation. Nothing contained in this Plan,
and no action taken pursuant to its provisions, shall create or be construed to create a trust of
any kind or a fiduciary relationship between the Corporation and any employee, former employee, or
any other person.

     9. The expenses of administering this Plan shall be borne by the Corporation.

     10. Except as otherwise determined by the Committee, with the exception of transfer by will or
the laws of descent and distribution, no target or final award shall be assignable or transferable
and, during the lifetime of the employee, any payment in respect of any final award shall be made
only to the employee. An employee shall designate a beneficiary or beneficiaries to receive all or
part of the amounts to be distributed to the employee under this Plan in case of death. A
designation of beneficiary may be replaced by a new designation or may be revoked by the employee
at any time. A designation or revocation shall be on forms prescribed by and filed with the
Secretary of the Committee. In case of the employee’s death, the amounts distributable to the
employee under this Plan with respect to which a designation of beneficiary has been made (to the
extent it is valid and enforceable under applicable law) shall be distributed in accordance with
this Plan to the designated beneficiary or beneficiaries. The amount distributable to an employee
upon death and not subject to such a designation shall be distributed to the employee’s estate or
legal representative. If there shall be any question as to the legal right of any beneficiary to
receive a distribution under this Plan, the amount in question may be paid to the estate of the
employee, in which event the Corporation shall have no further liability to any party with respect
to such amount.

     11. Full power and authority to construe and interpret this Plan shall be vested in the
Committee. To the extent determined by the Committee, administration of this Plan, including, but
not limited to (a) the selection of employees for participation in this Plan, (b) the determination
of the number of installments, and (c) the determination of the vesting schedule for final awards,
may be delegated to the Chief Executive Officer; provided, however, the Committee shall not
delegate to the Chief Executive Officer any powers, determinations, or responsibilities with
respect to executive officers of the Corporation. Any person who accepts any award hereunder agrees
to accept as final, conclusive, and binding all determinations of the Committee and the Chief
Executive Officer. The Committee shall have the right, in the case of participants not employed in
the United States, to vary from the provisions of this Plan in order to preserve the incentive
features of this Plan.

     12.(a) Upon the occurrence of a Change in Control and the termination of the employment of
an employee within three years thereafter (i) by the Corporation other than for gross negligence or
deliberate misconduct which demonstrably harms the Corporation or, (ii) by the participant for Good
Reason, all outstanding awards granted under this Plan shall vest and be paid at the target award
level, or, if greater, at the level resulting from the Corporation’s actual performance based on
the most recent forecast approved by the Executive Compensation Committee. Awards shall be
pro-rated based on the number of days in the performance period occurring prior to such payment as
a percentage of the total number of days in the performance period.

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     12.(b) If a Change in Control shall occur during a performance period, an employee whose
employment terminates during such performance period prior to such Change in Control under
circumstances in which such employee’s award hereunder was prorated and to be paid when final
awards were determined hereunder shall be entitled to receive payment of such final prorated award
at the conclusion of the performance period at the target level or, if greater, at the level
resulting from the Corporation’s actual performance. Any such award shall be prorated in the same
manner as in Paragraph 12(a).

     12.(c) A “Change in Control” shall mean the occurrence of any one of the following:

     (i) any “person” or “group” as those terms are used in the Securities Exchange Act of
1934, as amended, (the “Exchange Act”), other than any employee benefit plan of GM or a
trustee or other administrator or fiduciary holding securities under an employee benefit
plan of the Corporation, is or becomes the current beneficial owner, within the meaning of
Rules 13d-3 and 13d-5 promulgated under the Exchange Act, of GM securities representing in
the aggregate 20% or more of the combined voting power of GM’s then outstanding securities
entitled to vote in general matters coming before stockholders of the Corporation, whether
in a meeting or otherwise; provided, however, that the provisions of this subsection (a) are
not intended to apply to or include as a Change in Control any transaction that is
specifically excepted from the definition of Change in Control under subsection (iii) below.

     In the event that the application of this subsection (i) to an occurrence that has
taken place or may take place raises interpretive issues regarding the foregoing definitions
of “person,” and “group,” a duly adopted resolution of the Board of Directors of the
Corporation or the Directors & Corporate Governance Committee, or a successor thereof (the
“D&CG Committee”), determining that a Change in Control, as defined in this subsection (i),
has occurred or will occur shall be final, binding and conclusive for all purposes under the
terms of this Plan, and no revocation of that decision, rescission of that resolution or
change to the terms hereof shall alter the effect of the resolution of the Board of
Directors or the D&CG Committee that such occurrence does or will constitute a Change in
Control, unless the effect of such rescission, revocation, change, or alteration shall not
have an adverse effect on employees covered by this Plan to the extent they have benefited
or will benefit by reason of such resolution;

     (ii) during any two-year period, Incumbent Directors, as hereinafter defined, cease for
any reason to constitute a majority of the Board. For purposes of this paragraph,
“Incumbent Director” shall mean the directors of the Corporation on the Effective Date and
any new directors whose election by the Board or nomination for election by the
Corporation’s stockholders was approved by at least two-thirds of the directors still in
office who were Incumbent Directors (including individuals whose appointment or election to
office after the Effective Date satisfied the requirements of this paragraph); provided,
however, that, notwithstanding the foregoing, no individual whose initial assumption of
office occurs as a result of either an actual or threatened election contest (as such terms
are used in Rule 14a-11 or Regulation 14A promulgated under the Exchange Act or successor
statutes or rules containing analogous concepts) or other actual or threatened solicitation
of proxies or consents by or on behalf of an individual, corporation, partnership, group,
associate or other entity or “person” other than the Board, shall in any event be considered
to be an Incumbent Director;

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     (iii) GM merges, consolidates or combines with any other corporation or other entity,
other than a merger, consolidation, combination or any similar transaction, without regard
to the form thereof, (A) that would result in all or a portion of the voting securities of
GM outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity or parent
entity thereof) securities representing more than 50% of the combined voting power of the
voting securities of GM or such surviving entity (or parent entity thereof) outstanding
immediately after such merger or consolidation and (B) by which the corporate existence of
GM is not affected and following which GM’s Chief Executive Officer would retain his or her
position with GM and the GM directors would remain on the Board of the Corporation and
constitute a majority thereof; provided, however, that if GM is not the ultimate parent of
the controlled group of which it is a member, references to GM in clause (B) of this
subsection shall be deemed to refer to such ultimate parent of the Corporation or its
successor;

     (iv) GM sells or otherwise disposes of all or substantially all of its assets; or

     (v) the stockholders of the Corporation approve a plan of complete liquidation of GM.

     12.(d) “Good Reason” for termination by the participant of the participant’s employment shall
mean the occurrence (without the participant’s express written consent) of any one of the following
acts by the Employer, or failures by the Employer to act, following the occurrence of a Change in
Control:

(i) a significant adverse change in the participant’s authority, duties,
responsibilities or position from those in effect immediately prior to the Change in
Control; provided that, notwithstanding the foregoing, the following are not “Good
Reason”: (A) an isolated, insubstantial and inadvertent action not taken in bad
faith and which is remedied by the Employer promptly after receipt of notice thereof
given by the participant, or (B) for employees below the level of Executive Vice
President, a change of less than two levels in the position to which the participant
reports, or (C) a change in the person to whom the participant reports:

(ii) a reduction in the participant’s annual base salary as in effect immediately
prior to the Change in Control or as the same may be increased from time to time
following the Change in Control, or a reduction in the level of the participant’s
incentive opportunity under the incentive plans as in effect immediately prior to
the Change in Control or as the same may be increased from time to time following
the Change in Control;

(iii) the Employer’s requiring the participant to change the principal workplace
location at which the participant is based to a location that is greater than 50
miles distant from such participant’s principal workplace location immediately prior
to the date of such change of location;

(iv) the failure by the Corporation or the Employer (as applicable) to pay to the
participant (A) any portion of the participant’s annual base salary, (B) any awards
earned pursuant to the incentive plans or (C) any portion of an installment of
deferred compensation under any deferred compensation program of the Corporation or any of its Subsidiaries, in each case within seven days of the
date such compensation is due;

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(v) the failure by the Corporation or the Employer (as applicable) to continue in
effect any compensation plan or program in which the participant participates
immediately prior to the Change in Control and which is material to the
participant’s total compensation, including, without limitation, the incentive plans
or any plans or programs adopted in substitution thereof prior to the Change in
Control, unless an equitable arrangement (embodied in an ongoing substitute or
alternative plan or program) has been made with respect to such plan or program, or
the failure by the Corporation or the Employer (as applicable) to continue the
participant’s participation therein (or in such substitute or alternative plan or
program) on a basis not materially less favorable, both in terms of the amount of
opportunities provided and the level of the participant’s participation relative to
other positions, as existed at the time of the Change in Control;

(vi) the failure by the Corporation or the Employer (as applicable) to continue to
provide the participant with benefits substantially similar to those enjoyed by the
participant in the aggregate under any of the Corporation’s or the Employer’s (as
applicable) pension and retirement, fringe benefit and welfare plans, including life
insurance, medical, health and accident, disability, and vacation plans and programs
in which the participant participates immediately prior to the Change in Control or
the taking of any action by the Corporation or the Employer (as applicable) which
would directly or indirectly materially reduce any of such benefits or deprive the
participant of any material fringe benefits enjoyed by the participant immediately
prior to the Change in Control;

(vii) the failure by the Corporation or the Employer (as applicable) to continue to
provide the participant with indemnification and insurance coverage under the
Corporation’s Certificate of Incorporation, Bylaws and any applicable agreement to
which the participant is a party or of which the participant is a beneficiary, which
is substantially the same as that enjoyed by the participant under any such
instruments or arrangements immediately prior to the Change in Control;

(viii) the failure of the Corporation to obtain a satisfactory agreement from any
successor to assume and agree to perform this Plan; or

(ix) any purported termination of the participant’s employment by the Corporation or
the Employer (as applicable) which is not effected pursuant to a Notice of
Termination.

     The participant’s right to terminate the participant’s employment for Good Reason shall not be
affected by the participant’s incapacity due to physical or mental illness.

     The participant’s continued employment shall not constitute consent to, or a waiver of rights
with respect to, any act or failure to act constituting Good Reason hereunder. Notwithstanding the
foregoing, the occurrence of an event that would otherwise constitute Good Reason hereunder shall
cease to be an event constituting Good Reason if (i) the participant fails to provide the
Corporation with notice of the occurrence of any of foregoing within the ninety-day period
immediately following the date on which the participant first becomes aware (or reasonably should
have become aware) of the occurrence of such event, (ii) the participant fails

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to provide the Corporation with a period of at least thirty days from the date of such notice
to cure such event prior to terminating his or her employment for Good Reason or (iii) Notice of
Termination is not provided to the Corporation by the participant within ninety days following the
day on which the thirty-day period set forth in the preceding clause (ii) expires; provided, that
the notice period required by clause (ii) and referred to in clause (iii) shall end two days prior
to the third anniversary of the Change in Control in the event that the third anniversary of the
Change in Control would occur during such thirty-day period.

     12.(e) “ Employer” shall mean, as applicable to any Participant, the Corporation or Subsidiary
that employs the Participant.

     12.(f) “Notice of Termination” shall mean a notice that indicates the basis for any
termination of employment and sets forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of a participant’s employment.

     12.(g) “Person” shall mean any individual, corporation, partnership, association, limited
liability corporation, joint-stock corporation, trust, unincorporated organization or government or
political subdivision thereof, including any employee or participant of the Corporation and its
Subsidiaries.

     12.(h) “Subsidiary” shall mean (i) a corporation in which capital stock having ordinary voting
power to elect a majority of the board of directors is owned, directly or indirectly, by the
Corporation and (ii) any unincorporated entity in respect of which the Corporation can exercise,
directly or indirectly, control comparable to that described in clause (i).

     12.(i) The preceding provisions of this Section 12 shall apply notwithstanding any other
provision of the Plan to the contrary, unless the Committee shall have expressly provided in any
applicable award for different provisions to apply in the event of a Change in Control. For the
avoidance of doubt, any such different provisions may be more or less favorable to either of the
parties to the award, but if the application of such different provisions is unclear, uncertain, or
ambiguous, the provisions of this Section 12 shall govern.

     13. If the implementation of any of the foregoing provisions of this Plan would cause an
employee or participant to incur adverse tax consequences under Section 409A of the Internal
Revenue Code of 1986, as amended from time to time, the implementation of such provision shall be
delayed until, or otherwise modified to occur on, the first date on which such implementation would
not cause adverse tax consequences under Section 409A.

     14. Notwithstanding anything in this Plan to the contrary, any award made to a participant
under this Plan on or after January 1, 2007 is subject to being called for repayment to the
Corporation in any situation where the Board of Directors or a committee thereof determines that
fraud, negligence, or intentional misconduct by the Participant was a significant contributing
factor to the Corporation having to restate all or a portion of its financial statement(s). The
determination regarding employee conduct and repayment under this provision shall be within the
sole discretion of the Committee and shall be final and binding on the Participant and the
Corporation.

     15. The Committee, in its sole discretion, may, at any time, amend, modify, suspend, or
terminate this Plan provided that no such action shall (a) adversely affect the rights of an
employee with respect to previous target awards or final awards under this Plan (except as

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otherwise permitted under paragraphs 2(d), 4, or 6), and this Plan, as constituted prior to
such action, shall continue to apply with respect to target awards previously granted and final
awards which have not been paid, or (b) without the approval of the stockholders, (i) increase the
limit on the maximum amount of final awards provided in paragraph 2(e), or (ii) render any director
of the Corporation who is not an employee at the date of grant or any member of the Executive
Compensation Committee or the Audit Committee, eligible to be granted a target award, or (iii)
permit any target award to be granted under this Plan after May 31, 2007. For the avoidance of
doubt, the provisions of Section 12(c) may be amended by the Board if necessary or desirable to be
compliant or consistent with, or to avoid adverse consequences to Participants under Section 409A
of the Code.

     16. Every right of action by, or on behalf of, the Corporation or by any stockholder against
any past, present, or future member of the Board of Directors, officer, or employee of the
Corporation or its subsidiaries arising out of or in connection with this Plan shall, irrespective
of the place where action may be brought and irrespective of the place of residence of any such
director, officer, or employee, cease and be barred by the expiration of three years from the date
of the act or omission in respect of which such right of action arises. Any and all right of action
by any employee (past, present, or future) against the Corporation arising out of or in connection
with this Plan shall, irrespective of the place where an action may be brought, cease and be barred
by the expiration of three years from the date of the act or omission in respect of which such
right of action arises. This Plan and all determinations made and actions taken pursuant hereto
shall be governed by the laws of the State of Delaware and construed accordingly.

     17. This Plan shall be effective on June 4, 2002, if approved by the stockholders of the
Corporation at the 2002 annual meeting.

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Exhibit 10(c)

GENERAL MOTORS 2002 STOCK INCENTIVE PLAN

As Amended February 5, 2007

     1. The purposes of the General Motors 2002 Stock Incentive Plan (this “Plan”) are to
provide incentive for the creation of stockholder value and provide employees with the opportunity
for long-term capital accumulation through the grant of options and restricted stock units to
acquire shares of Common Stock, $12/3 par value (“Common Stock”) of General Motors
Corporation (the “Corporation”). Subject to such additional limitations or restrictions as may be
imposed as provided below, the term “employees” shall mean persons (a) who are employed by the
Corporation or any “subsidiary” (as such term is defined below), including employees who are also
directors of the Corporation or any such subsidiary, or (b) who accept (or previously have
accepted) employment, at the request of the Corporation, with any entity not described in (a) above
but in which the Corporation has, directly or indirectly, a substantial ownership interest. For
purposes of this Plan, the term “subsidiary” means (i) a corporation of which capital stock having
ordinary voting power to elect a majority of the board of directors of such corporation is owned,
directly or indirectly, by the Corporation or (ii) any unincorporated entity in respect of which
the Corporation can exercise, directly or indirectly, comparable control. The rights reserved
herein shall, among other things, permit the Executive Compensation Committee of the General Motors
Board of Directors (the “Committee”), as from time to time constituted pursuant to the by-laws of
the Corporation, to determine when, and to what extent, individuals otherwise eligible for
consideration shall become or cease to be, as the case may be, employees for purposes of this Plan
and to determine when, and under what circumstances, any individual shall be considered to have
terminated employment for purposes of this Plan. To the extent determined by the Committee, the
term employees shall be deemed to include former employees and any beneficiaries thereof.

     2. Subject to the provisions of paragraph 10, the aggregate number of shares of stock with
respect to which options and restricted stock units may be granted under this Plan shall not exceed
27,400,000 shares of Common Stock; provided, however, subject to the provisions of paragraph 10,
the maximum number of shares of stock which may be granted in the form of restricted stock units
under this Plan shall not exceed 1,000,000 shares of Common Stock. Subject to the provisions of
paragraph 10, no individual may be granted options in any calendar year covering more than
1,000,000 shares of Common Stock, and no individual may be granted restricted stock units in any
calendar year covering more than 250,000 shares of Common Stock. If, prior to June 1, 2007, all or
any portion of an option granted under this Plan or the 1997 Plan shall have expired or terminated
for any reason without having been exercised in full or all or any portion of a restricted stock
unit shall have failed to vest, the corresponding unpurchased or undelivered shares shall (unless
this Plan shall have been terminated) again become available for grant under the terms of this
Plan. In the event that any option granted hereunder or under the 1997 Plan is exercised through
the delivery of shares or in the event that withholding tax liabilities arising from any award are
satisfied by the withholding of shares by the Corporation, the number of shares available for
awards under the Plan shall be increased by the number of shares so surrendered or withheld.

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     3. The Committee may, at such time or times as it may determine prior to June 1, 2007,
establish for any calendar year a maximum number of shares, consistent with the provisions of
paragraph 2, to be awarded as stock options and restricted stock units for such year. To the extent
authorized by the Committee, the Chief Executive Officer may grant options and restricted stock
units, within the maximum number of shares established by the Committee, to employees selected by
him or her, except that no such grant may be made by the Chief Executive Officer to employees who
are executive officers of the Corporation or members of the Board of Directors. The Committee shall
make all grants of stock options and restricted stock units to employees who are executive officers
of the Corporation. Determinations as to whether the options granted shall be “incentive stock
options” within the meaning of Section 422, or any successor provision, of the Internal Revenue
Code of 1986, as amended (the “Code”), or non-qualified options, and as to any restrictions which
shall be placed on options and restricted stock units, shall be made by the Committee under such
procedures as it may, from time to time, determine.

     4. Except as provided in paragraph 9, the purchase price of the shares of stock under each
option shall be not less than 100% of the fair market value (but in no event less than the par
value) of such stock at the time the option is granted, such fair market value to be determined
based on the mean of the highest and lowest sales prices as reported for such class of stock in The
Wall Street Journal, or if such prices are not reported in The Wall Street Journal, in another
reliable, widely available source of such prices as designated by the Committee for the date of
grant. In accordance with such rules and procedures as the Committee may establish, the aggregate
fair market value (determined as of the time of option grant) of the stock with respect to which
incentive stock options granted and held by an employee which are exercisable for the first time by
such employee during any calendar year under this Plan and all other plans of the Corporation (and
any subsidiary or any parent corporation within the meaning of Section 424 of the Code, or any
successor provision), shall not exceed $100,000 (except that such amount may be adjusted by the
Committee as appropriate to reflect any amendment of Section 422 of the Code). The terms of any
incentive stock option granted hereunder shall comply in all respects with the provisions of
Section 422 of the Code, or any successor provision, and any regulations promulgated thereunder.

     5. Options granted under this Plan shall be subject to the following provisions, except as
otherwise determined by the Committee:

     5(a). Vesting and Exercise. Except in the case of death or except as set forth in
paragraph 5(d)(ii) or Paragraph 14, no option shall vest or become exercisable prior to the first
anniversary date of the date of the option grant (or such later date as may be established by the
Committee or its delegate(s)); and after such date options shall be exercisable only in accordance
with the terms and conditions established at the time of grant. Beginning on the first anniversary
date of the option grant, stock options will become exercisable in one-third increments. Subject to
paragraph 5(d), the first increment may be exercised on or after the first anniversary date and the
second and third increments may be exercised on or after the second and third anniversaries of the
date of grant. As a condition to the exercise of any option, an employee may be required, among
other things, to enter into such agreements as are considered by the Committee to be appropriate
and in the best interests of the Corporation.

2

 

     5(b).
Term of the Option. The normal expiration date of the option shall be determined at the
time of grant, provided that each such option shall expire not more than ten years and two days
after the date the option was granted or, in the case of an “incentive stock option,” ten years
after the date such option was granted.

     5(c).Conditions
Precedent. Except for options that vest pursuant to paragraph 14, the
exercise of any option shall be subject to satisfaction of the following conditions precedent: (i)
that the employee refrain from engaging in any activity which, in the opinion of the Committee, is
competitive with any activity of the Corporation or any subsidiary, except that employment at the
request of the Corporation or with the specific approval of the Corporation, shall not be
considered to be an activity which is competitive with any activity of the Corporation or any
subsidiary; (ii) that the employee refrain from otherwise acting in any manner inimical or in any
way contrary to the best interests of the Corporation; and (iii) that the employee furnish to the
Corporation such information with respect to the satisfaction of the foregoing conditions precedent
as the Committee shall reasonably request. In addition, by accepting the grant of an option, the
employee will thereby agree to remain in the employment of the Corporation for a period of one year
after the date of exercise of any such option, unless such employment is terminated by death or
retirement.

     5(d).
Termination of Employment. Notwithstanding the following provisions, the Committee may
at any time prior to any termination of employment under circumstances covered by this clause,
determine that options shall vest or terminate on the date of notice of termination of employment,
or such later date as it may deem appropriate. In addition, the Committee may from time to time
determine in its discretion that optionees retiring from the organization during specified time
periods under specified circumstances may vest and retain some portion of those options granted in
the year the retirement occurs.

	 	(i)	 	If an employee is terminated for cause or quits employment without the prior
written consent of the Corporation, all options (both vested and unvested) shall be
forfeited and terminate on the date of termination of employment or, if earlier, the
date cause exists.
	 
	 	(ii)	 	(A) This sub-paragraph (ii)(A) shall apply to options granted prior to
February 5, 2007. If an employee retires from the Corporation at age 62 or older with
ten or more years of credited service, subject to the other terms and conditions of
the Plan, all vested options granted prior to February 5, 2007 will remain exercisable
for the full remaining term.

(B) This sub-paragraph (ii)(B) shall apply to options granted on or after February
5, 2007. If an employee retires from the Corporation at age 55 or older with ten
or more years of credited service, subject to the other terms and conditions of the
Plan, all options granted on or after February 5, 2007 will vest immediately and
will remain exercisable until the expiration date of such option, including options
granted within the prior 12 months, provided that such employee shall have remained
employed until December 31 of the year of grant.

	 	(iii)	 	If employment is terminated by reason of death, all options shall
immediately vest and remain exercisable until the third anniversary of the date of
death or, if earlier, the expiration date of such option.

3

 

	 	(iv)	 	If an employee becomes disabled, unvested options will continue to vest while
the employee remains on the disability leave and, subject to the other terms and
conditions of the Plan, vested options will remain exercisable for the full remaining
term.
	 
	 	(v)	 	If employment terminates for any reason other than as set forth above
(including, for the avoidance of doubt, retirement not meeting the conditions set
forth in paragraph 5(d)(ii) or the voluntary termination of the employee with the
specific written agreement of the Corporation that options do not terminate on or
prior to the termination of employment), subject to the other terms and conditions of
the Plan, all vested options will remain exercisable until the third anniversary of
the date of termination of employment or, if earlier, the expiration date of such
option.
	 
	 	(vi)	 	If employment terminates for any reason (other than death) prior to the first
anniversary of the date an option is granted, except as provided in paragraph
5(d)(ii)(B) the option shall be forfeited and terminate on the date of termination of
employment.

     5(e). Forfeiture of Gains on Exercise. If the employee terminates employment in breach
of the covenants and conditions precedent set forth in Section 5(c) within one year after the date
of exercise of any stock option, the employee shall pay to the Corporation an amount equal to any
gain from such exercise, determined by multiplying the difference between the mean of the highest
and lowest market price as reported in The Wall Street Journal, or if such prices are not reported
in The Wall Street Journal, in another reliable, widely available source of such prices as
designated by the Committee for the date of the option exercise and the exercise price of the
option (without regard to any subsequent market price decrease or increase) by the number of option
shares exercised. Any such option gain realized by the employee from exercising an option shall be
paid by the employee to the Corporation within thirty days of the employment termination date. By
accepting an option grant under this Plan, the employee consents, to the extent permitted by law,
to a deduction of an amount equal to such option gain from any amounts the Corporation owes the
employee, including, but not limited to, amounts owed as wages or other compensation, fringe
benefits, or vacation pay.

     5(f).
Leave of Absence. For purposes of this Plan, a qualifying leave of absence shall not
constitute a termination of employment, except that an option shall not be exercisable during a
leave of absence granted an employee for local, state, provincial, or federal government service.

     5(g). Payment of Exercise Price; Withholding Taxes. All shares purchased upon exercise
of any option shall be paid for in full at the time of purchase. Such payment shall be made (i) in
cash, (ii) through delivery of shares (provided that the shares, other than shares purchased on the
open market, must be held for at least six months) of the same class of stock as the option shares,
or (iii) a combination of cash and stock. Any shares delivered pursuant to subsection (ii) or (iii)
of the preceding sentence shall be valued at their fair market value based on the mean of the
highest and lowest sales prices as reported in The Wall Street Journal, or if such prices are not
reported in The Wall Street Journal, in another reliable, widely available source of such prices as
designated by the Committee for the date of exercise of the option. If payment of federal,

4

 

state, and/or local withholding taxes is required in connection with the exercise of an
option, the optionee will, at the time of exercise, pay such taxes in cash or stock (including
shares obtained from the exercise and delivery of option shares up to the statutory minimum
required withholding amount). To the extent authorized by the Committee, any exercise of an option
granted under this Plan may be made in accordance with any cashless exercise program approved by
the Committee.

     5(h).
Dividends. No holder of any option shall have any rights to dividends or other rights of
a stockholder with respect to shares subject to the option prior to purchase of such shares upon
exercise of the option.

     5(i). Transferability. With the exception of transfer by will or the laws of descent
and distribution, or as otherwise provided in paragraph 7, no option shall be assignable or
transferable, and an option shall be exercisable during the life of an employee only by such
employee.

     6. Restricted stock units (sometimes referred to herein as “RSUs” or “Units”) granted under
this Plan shall be subject to the following provisions:

     6(a). Subject to adjustments contemplated under paragraph 10 of this Plan, (i) a Unit granted
hereunder shall relate to one share of Common Stock (a “Corresponding Share”), as the Committee
shall determine, and (ii) the value of a Unit at any time shall be the fair market value of the
Corresponding Share, determined in accordance with procedures established by the Committee.

     6(b). Subject to the terms of this Plan, the Committee shall determine the number of Units to
be granted to an employee and the terms and conditions applicable to the grant (a “Unit Grant”) of
such Units. Subject to the terms of this Plan, the Committee may impose different terms and
conditions on any particular Unit Grant made to any particular employee.

     6(c). Subject to the satisfaction of the conditions precedent set forth under paragraph 6(d)
below and such additional conditions as may be imposed by the Committee, each Unit Grant shall vest
at the time or times determined by the Committee, provided that the Committee, in making such
determination, shall establish the vesting increments (including their number, amounts, and timing)
so as to carry out the purposes of this Plan. Within the limitations specified in the preceding
sentence, the Committee may, in its sole discretion, modify vesting provisions with respect to the
unvested portion of any Unit Grant if, in the judgment of the Committee, circumstances outside the
control of the Corporation have so changed as to make such modifications necessary or advisable in
order to preserve the reward and incentive purposes of this Plan. As a condition to the vesting of
all or any portion of a Unit Grant, the Committee may, among other things, require an employee to
enter into such agreements as the Committee considers appropriate and in the best interests of the
Corporation. In addition, the Committee may establish performance vesting criteria with respect to
all or any portion of a Unit Grant which relate to and are contingent upon the satisfaction of
specific goals established by the Committee at the time of the Unit Grant. Such goals may be based
upon or relate to one or more of the following business criteria: asset turnover, cash flow,
contribution margin, cost objectives, cost reduction, earnings per share, economic value added,
increase in customer base, inventory turnover, market price appreciation of one or more of the
Corporation’s common stocks, market share, net
income, net income margin, operating profit margin, pre-tax income, productivity, profit
margin, quality, return on assets, return on net assets, return on capital, return on equity,

5

 

revenue, revenue growth, and/or total shareholder return. The business criteria may be expressed in
absolute terms or relative to the performance of other companies or to an index. With respect to
any Unit Grant which is subject to performance vesting, the Committee shall establish for each such
award performance levels related to the enterprise (as defined below) at which 100% of the award
shall be earned and a range (which need not be the same for all awards) within which greater and
lesser percentages shall be earned. The term “enterprise” shall mean the Corporation and/or any
unit or portion thereof, and any entities in which the Corporation has, directly or indirectly, a
substantial ownership interest.

     6(d). (i) Except for Unit Grants that vest pursuant to paragraph 14 of this Plan, the vesting
of each Unit Grant shall be subject to the satisfaction of the conditions precedent that: (A) the
employee continue to render services as an employee (unless waived by the Committee), (B) the
employee refrain from engaging in any activity which, in the opinion of the Committee, is
competitive with any activity of the Corporation or any subsidiary (except that employment at the
request of the Corporation with an entity in which the Corporation has, directly or indirectly, a
substantial ownership interest, or other employment specifically approved by the Committee, shall
not be considered to be an activity which is competitive with any activity of the Corporation or
any subsidiary) and from otherwise acting, either prior to or after termination of employment, in
any manner inimical or in any way contrary to the best interests of the Corporation, and (C) the
employee furnish to the Corporation such information with respect to the satisfaction of the
foregoing conditions precedent as the Committee shall reasonably request. Except as otherwise
provided under (iii) below, the failure by any employee to satisfy such conditions precedent shall
result in the immediate cancellation of any unvested or unpaid portion of any Unit Grant previously
made to such employee and all Units still covered by such Unit Grant, and such employee shall not
be entitled to receive any consideration in respect of such cancellation. (ii) If any employee is
dismissed involuntarily or quits employment without the prior written consent of the Corporation,
the unvested or unpaid portion of any Unit Grant previously made to such employee, and all Units
still covered thereby shall be canceled as of the date of such termination of employment, and such
employee shall not be entitled to receive any consideration in respect of such cancellation. (iii)
Upon termination of an employee’s employment for any reason other than as described in (ii) above,
the Committee may, but shall not in any case be required to, waive the condition precedent relating
to the continued rendering of services in respect of all or any specified percentage of the
unvested portion of any Unit Grant, as the Committee in its discretion shall determine. To the
extent such condition precedent is waived, the Committee may, in its discretion, accelerate the
vesting of all or any specified percentage of the unvested portion of any Unit Grant. (iv) For
purposes of this Plan, a qualifying leave of absence, determined in accordance with procedures
established by the Committee, shall not constitute a termination of employment, except that a Unit
Grant shall not vest during a leave of absence granted an employee for civilian, local, state,
provincial, or federal government service.

     6(e). With respect to any dividend or other distribution on any Corresponding Shares, the
Committee may, in its discretion, authorize current or deferred payments (payable in cash or stock
or a combination thereof, as determined by the Committee) or appropriate adjustments to outstanding
Unit Grants to reflect such dividend or distribution.

6

 

     6(f). (i) Upon vesting of all or any portion of a Unit Grant, the percentage of the Unit Grant
then vesting will be applied to the total number of Units then covered by such Unit Grant, and the
proportionate number of Units so computed, disregarding fractional Units, will be paid to such
Participant in the form of the respective Corresponding Shares of General Motors Common Stock, or
in cash based on the fair market value of the Corresponding Shares on the vesting date, or partly
in cash and partly in the applicable Corresponding Shares of General Motors stock as the Committee
in its sole discretion shall determine. Such stock, or the related cash payment, will be delivered,
in accordance with procedures to be established by the Committee, and upon satisfaction of the
applicable withholding requirements, as soon as practicable after such vesting date, but not later
than two and one-half months after the end of the calendar year in which vesting occurs. (ii) In
the discretion of, and in accordance with procedures to be established by the Committee,
Corresponding Shares up to the statutory minimum, or cash of equivalent value, may be designated
for, and delivered to, the Corporation in satisfaction of any federal, state and/or local
withholding taxes applicable to the payment of Units.

     6(g). Unless otherwise determined by the Committee, no holder of a Unit Grant shall have any
rights to dividends (other than as provided in paragraph 6(e) above) or other rights of a
stockholder with respect to Units and Corresponding Shares relating to such Unit Grant prior to the
delivery of such Corresponding Shares pursuant to the vesting of such Unit Grant.

     6(h). Unless otherwise determined by the Committee, with the exception of transfer by will or
the laws of descent and distribution or as otherwise provided in paragraph 7, no Unit Grant shall
be assignable or transferable and, during the lifetime of the grantee thereof, any payment in
respect of such Unit Grant shall be made only to such grantee.

     7. An employee holding an option or Unit Grant under this Plan may make a written designation
of beneficiary or beneficiaries on a form prescribed by and filed with the Secretary of the
Committee. Such beneficiary or beneficiaries or, if no such designation of any beneficiary or
beneficiaries has been made, the employee’s legal representative(s) or such other person(s)
entitled thereto as determined by a court of competent jurisdiction, (i) may exercise, in
accordance with and subject to the provisions of paragraph 5, any unterminated and unexpired option
granted to such employee and (ii) receive payment, in accordance with and subject to the provisions
of paragraph 6, pursuant to the vesting of all or any portion of a Unit Grant. A designation of
beneficiary may be replaced by a new designation or may be revoked by the employee at any time.

     8. The shares to be delivered upon exercise of an option or vesting of a Unit Grant shall be
made available, at the discretion of the Board of Directors or a Committee of the Board of
Directors as designated by the Board, either from authorized but previously unissued shares or from
shares reacquired by the Corporation, including shares purchased in the open market. If shares are
purchased in the open market for delivery upon the exercise of an option or vesting of a Unit
Grant, they shall be held in a treasury account specifically designated for such awards.

     9. If the Corporation acquires an entity which has issued and outstanding stock options or
other rights, the Corporation may substitute an appropriate number of stock
options or Units under this Plan for options or rights of such entity, including options to

7

 

acquire stock at less than 100% of the fair market price of the stock at the time of grant, as
determined by the Committee in its sole discretion and such awards will not count against this Plan
reserve of available shares.

     10. In the event of any merger, reorganization, consolidation, recapitalization, stock
dividend, extraordinary cash dividend, or other change in Corporate structure affecting General
Motors Common Stock the Committee shall make such adjustments in the aggregate number of shares
which may be delivered under this Plan, the individual award maximums, number, and option price of
shares subject to outstanding options and the number of shares subject to Units granted under this
Plan (provided the number of shares subject to any award shall always be a whole number), as may be
determined to be appropriate by the Committee in order to prevent unintended enhancement or
diminution of the benefit intended to be provided under this Plan.

     11. To the extent determined by the Committee, any subsidiary may, without regard to the
limitations under this Plan, have a separate incentive plan or program. The Committee shall have
exclusive jurisdiction and sole discretion to approve or disapprove any such plan or program and,
from time to time, to amend, modify, or suspend any such plan or program. Individuals eligible for
grants under any such plan or program shall not be considered employees eligible for grants under
this Plan, unless otherwise determined by the Committee. No provision of any such plan or program
shall be included in or considered a part of this Plan, and any awards made under any such plan or
program shall not be charged against the aggregate number of shares of stock available for grant
under this Plan, unless otherwise determined by the Committee.

     12. The expenses of administering this Plan shall be borne by the Corporation.

     13. Full power and authority to construe and interpret this Plan shall be vested in the
Committee. To the extent determined by the Committee, administration of this Plan, including, but
not limited to (a) the selection of employees for participation in this Plan and (b) the grant
amounts and the vesting schedules for options and RSUs, may be delegated to the Chief Executive
Officer; provided, however, the Committee shall not delegate to the Chief Executive Officer any
powers, determinations, or responsibilities with respect to executive officers of the Corporation.
The instruments evidencing options and RSUs and documentation with respect to the exercise of
options and payment of RSUs, if any, shall be in such form, consistent with this Plan, as may be
determined by the Committee. Any person who accepts any award hereunder agrees to accept as final,
conclusive, and binding all determinations of the Committee and the Chief Executive Officer. The
Committee shall have the right, in the case of participants not employed in the United States, to
vary from the provisions of this Plan in order to preserve the incentive features of this Plan.

     14.(a) Upon the effective date of any Change in Control of the Corporation as defined in this
paragraph all outstanding stock options granted prior to January 1, 2007, under this Plan shall
vest, and all outstanding Unit Grants shall vest on a pro rata basis based on the number of days in
the vesting period occurring prior to the Change in Control. Such prorated Unit Grants shall be
paid as if the vesting period had ended on the date of Change In Control.

     14.(b) For options or awards granted after January 1, 2007, upon the occurrence of a Change
in Control and the termination of the employment of an employee within

8

 

three years thereafter (i)
by the Corporation other than for gross negligence or deliberate misconduct which demonstrably
harms the Corporation or (ii) by the participant for Good Reason, all outstanding options and RSU
grants under this Plan shall vest on a pro rata basis based on the number of days in the vesting
period occurring prior to the Change in Control. Such prorated Unit Grants shall be paid as if the
vesting period had terminated as of the date of Change in Control.

     14.(c) A “Change in Control”, “Good Reason”, “Employer”, “Notice of Termination”, “Person”,
and “Subsidiary” shall have the same meanings as those contained in the General Motors 2002 Annual
Incentive Plan, as amended December 4, 2006.

     15. If the implementation of any of the foregoing provisions of this Plan would cause an
employee to incur adverse tax consequences under Section 409A of the Code, the implementation of
such provision shall be delayed until, or otherwise modified to occur on, the first date on which
such implementation would not cause adverse tax consequences under Section 409A.

     16. Notwithstanding anything in this Plan to the contrary, any award of cash, stock, stock
options (or otherwise) made to a Participant under this Plan on or after January 1, 2007 or any
unvested award previously granted is subject to being called for repayment to the Corporation in
any situation where the Board of Directors or a committee thereof determines that fraud,
negligence, or intentional misconduct by the Participant was a significant contributing factor to
the Corporation having to restate all or a portion of its financial statement(s). The
determination regarding employee conduct and repayment under this provision shall be within the
sole discretion of the Committee and shall be final and binding on the Participant and the
Corporation.

    17. The Committee, in its sole discretion, may, at any time, amend, modify, suspend, or
terminate this Plan provided that no such action without the approval of the stockholders shall
increase the maximum number of shares for which, or with respect to which, options or restricted
stock units may be granted to employees under this Plan (except as permitted by paragraph 10), or
permit the granting of options under this Plan with an option price of less than 100% of the fair
market value of the applicable class of stock at the time the options are granted (except as
permitted in paragraphs 9 and 10 of this Plan), or permit re-pricing of outstanding stock options
(except as otherwise permitted by paragraphs 9 and 10 of this Plan), or permit exercise of the
options unless full payment is made at the time of exercise, or, except as contemplated by the
Plan, extend the period during which options may be exercised, or render any member of the
Executive Compensation Committee or the Audit Committee, or any director who is not an employee,
eligible to be granted an option or Unit, or grant any option or Unit under this Plan after May 31,
2007.

    18. Every right of action by, or on behalf of, the Corporation or by any stockholder against
any past, present, or future member of the Board of Directors, officer, or employee of the
Corporation or its subsidiaries arising out of or in connection with this Plan shall, irrespective
of the place where action may be brought and irrespective of the place of residence of any such
director, officer, or employee, cease and be barred by the expiration of three years from the date
of the act or omission in
respect of which such right of action arises. Any and all right of action by any employee
(past, present, or future) against the Corporation arising out of or in connection with this

9

 

Plan
shall, irrespective of the place where an action may be brought, cease and be barred by the
expiration of three years from the date of the act or omission in respect of which such right of
action arises. This Plan and all determinations made and actions taken pursuant hereto shall be
governed by the laws of the State of Delaware and construed accordingly.

    19. This Plan shall be effective on June 4, 2002, if approved by the stockholders of the
Corporation at the 2002 annual meeting.

10

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