Document:

exv10w6

 

Exhibit 10.6

CENTEX CORPORATION LONG TERM INCENTIVE PLAN

(Amended and Restated Effective January 1, 2008)

1. Objectives

     The Centex Corporation Long Term Incentive Plan (the “Plan”) is designed to retain selected
employees of Centex Corporation and all subsidiaries, partnerships and affiliates of Centex
Corporation with regard to which Centex Corporation owns, directly or indirectly, at least 80% of
the ownership interest therein, and reward them for making significant contributions to the success
of Centex Corporation. These objectives are to be accomplished by making awards under the Plan and
thereby providing participants with a financial interest in the growth and performance of Centex
Corporation. The Plan shall not constitute a “qualified plan” subject to the limitations of
Section 401(a) of the Internal Revenue Code of 1986, as amended, nor shall it constitute a “funded
plan” for purposes of such requirements. This Plan shall be exempt from the participation and
vesting requirements of Part 2 of Title I of ERISA, the funding requirements of Part 3 of Title I
of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and the fiduciary
requirements of Part 4 of Title I of ERISA by reason of the exclusions afforded to plans which are
unfunded and maintained by an employer primarily for the purpose of providing deferred compensation
for a select group of highly compensated employees.

     The Plan and Awards granted hereunder are intended to comply with or be exempt from the
requirements of Code Section 409A, and shall be interpreted and administered in a manner consistent
with those intentions. Any provision of this Plan to the contrary notwithstanding, Grandfathered
Awards shall not be governed by the provisions of this amended and restated Plan but instead shall
continue to be governed by the provisions of the Plan as in effect on December 31, 2007.

2. Definitions

     As used herein, the terms set forth below shall have the following respective meanings:

     “Act” means the Securities Exchange Act of 1934, as amended.

     “Administrator” means the Compensation and Management Development Committee of the Board.

     “Affiliate” means any direct or indirect subsidiary or parent of Centex Corporation and any
partnership, joint venture, limited liability company or other business venture or entity in which
Centex Corporation owns directly or indirectly at least 80% of the ownership interest in such
entity, as determined by the Administrator in its sole and absolute discretion (such determination
by the Administrator to be conclusively established by the grant of an Award by the Administrator
to an officer or employee of such an entity); provided, however, that any such entity shall be
considered an Affiliate only if the entity would be aggregated and treated as a single employer
with Centex Corporation under Code Section 414(b) (controlled group of corporations) or Code
Section 414(c) (group of trades or businesses under common control), as applicable.

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     “Award” means an award of Deferred Stock granted to a Participant pursuant to any applicable
terms, conditions and limitations as the Administrator may establish in order to fulfill the
objectives of the Plan, and does not include a Grandfathered Award.

     “Award Agreement” means a written agreement between Centex Corporation and a Participant that
sets forth the terms, conditions and limitations applicable to an Award.

     “Beneficiary” means such person or persons, or the trustee of an inter vivos trust for the
benefit of natural persons, designated by the Participant in a written election filed with the
Administrator as entitled to receive the Participant’s Award(s) in the event of the Participant’s
death, or if no such election shall have been so filed, or if no designated Beneficiary survives
the Participant or can be located by the Administrator, the person or persons entitled thereto
under the last will of such deceased Participant, or if such decedent left no will, to the legal
heirs of such decedent determined in accordance with the laws of intestate succession of the state
of the decedent’s domicile.

     “Board” means the Board of Directors of Centex Corporation as the same may be constituted from
time to time.

     “Centex Corporation” means Centex Corporation, a Nevada corporation, or any successor thereto.

     “Change in Control” shall be deemed to have taken place if:

     (a) a third person, including a “Group” as defined in Section 13(d)(3) of the Act,
becomes the beneficial owner of Shares of Centex Corporation having 50% or more of total
number of votes that may be cast for the election of directors of Centex Corporation; or

     (b) as a result of, or in connection with, a contested election for directors, persons
who were directors of Centex Corporation immediately before such election shall cease to
constitute a majority or the Board;

provided, however, that as to any Award under this Plan that is subject to Code Section 409A, no
“Change in Control” shall be deemed to have occurred with respect to Section 8 unless such event
constitutes an event specified in Code Section 409A(a)(2)(A)(v) and the Treasury Regulations and
other guidance thereunder.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Code Section 409A” means Section 409A of the Code and all applicable regulations and other
guidance issued under or related to Section 409A of the Code.

     “Company” means each of Centex Corporation and every Affiliate.

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     “Deferred Stock” means a right to receive at Payout the number of Shares covered by an Award,
subject to the terms of this Plan and the Award Agreement. Deferred Stock does not represent any
actual legal or beneficial interest in Centex Corporation.

     “Disability” means a disability that entitles the Participant to benefits under the long-term
disability insurance plan or program sponsored by the Company which covers the Participant,
provided that with respect to Awards that are subject to Code Section 409A, the Participant must
also meet one of the following conditions:

     (a) the Participant is unable to engage in any substantial gainful activity by reason
of a medically determinable physical or mental impairment that can be expected to result in
death or can be expected to last for a continuous period of not less than 12 months; or

     (b) the Participant is, by reason of any medically determinable physical or mental
impairment that can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months, receiving income replacement benefits for a
period of not less than three months under an accident and health plan covering employees of
the Participant’s employing Company.

     “Employment” means employment with a Company.

     “Expiration Date” means, as to an Award, that date which is seven years past the Grant Date of
such Award or such other period as the Administrator may determine.

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

     “Full Time Employee” means a person actively and regularly engaged in work at least 40 hours a
week.

     “Grandfathered Awards” means all Awards made pursuant to the Plan that were earned and vested
on or before December 31, 2004. Grandfathered Awards are subject to the provisions of the second
paragraph of Section 1.

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     “Grant Date” means the date an Award is made to a Participant hereunder, which will be April 1
of the year in which such Award is made, or any other date selected by the Administrator.

     “Participant” means an employee of a Company to whom an Award has been made under this Plan.

     “Payout” means the distribution of vested Deferred Stock under the Plan.

     “Payout Date” means the date an Award becomes payable pursuant to Section 8.

     “Plan” means this Centex Corporation Long Term Incentive Plan, as set forth herein and as may
be amended from time to time.

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

     “Separation from Service” means a termination of services provided by a Participant to his or
her Employer (as defined below), whether voluntarily or involuntarily, as determined by the
Administrator in accordance with Treasury Regulation § 1.409A-1(h).  In determining whether a
Participant has incurred a Separation from Service, the following provisions shall apply:

     (a) Except as otherwise provided in this definition, a Separation from Service will
occur when the Participant has experienced a termination of employment with the Employer.  A
Participant will be considered to have experienced a termination of employment when the
facts and circumstances indicate that the Participant and his or her Employer reasonably
anticipate that either (i) no further services will be performed for the Employer after a
certain date, or (ii) that the level of bona fide services the Participant will perform for
the Employer after such date (whether as an employee or as an independent contractor) will
permanently decrease to no more than 331/3% of the average level of bona fide services
performed by the Participant (whether as an employee or an independent contractor) over the
immediately preceding 36-month period (or the full period of services to the Employer if the
Participant has been providing services to the Employer less than 36 months).

       If a Participant is on military leave, sick leave, or other bona fide leave of
absence, the employment relationship between the Participant and the Employer will be
treated as continuing, provided that the period of the leave of absence does not exceed 6
months, or if longer, so long as the Participant has a right to reemployment with the
Employer under an applicable statute or by contract.  If the period of a military leave,
sick leave, or other bona fide leave of absence exceeds 6 months and the Participant does
not have a right to reemployment under an applicable statute or by contract, the employment
relationship will be considered to be terminated for purposes of this Plan as of the first
day immediately following the end of such 6-month period.  In applying the provisions of
this paragraph, a

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leave of absence will be considered a bona fide leave of absence only if there is a
reasonable expectation that the Participant will return to perform services for the
Employer.

     (b) For a Participant who provides services to an Employer as both an employee
and an independent contractor, a Separation from Service generally will not occur until the
Participant has ceased providing services for the Employer both as an employee and as an
independent contractor as determined in accordance with the provisions set forth in
subparagraphs (a) and (b) of this definition, respectively. Except as otherwise provided
herein, in the case of an independent contractor a Separation from Service will occur upon
the expiration of the contract (or in the case of more than one contract, all contracts)
under which services are performed for the Employer, provided that the expiration of such
contract or contracts is determined by Centex Corporation to constitute a good-faith and
complete termination of the contractual relationship between the Participant and the
Employer.  If a Participant ceases providing services for an Employer as an employee and
begins providing services for such Employer as an independent contractor, the Participant
will not be considered to have experienced a Separation from Service until the Participant
has ceased providing services for the Employer in both capacities, as determined in
accordance with the applicable provisions set forth in subparagraphs (a) and (b) of this
definition.

     Notwithstanding the foregoing provisions in this subparagraph, if a Participant
provides services for an Employer as both an employee and as a member of the board of
directors of an Employer, to the extent permitted by Treasury Regulation § 1.409A-1(h)(5),
the services provided by the Participant as a director will not be taken into account in
determining whether the Participant has experienced a Separation from Service as an
employee.

     (c) In addition, notwithstanding the provisions of this definition, where as part of a sale or
other disposition of substantial assets by an Employer to an unrelated buyer, a participant
would otherwise experience a Separation from Service as defined above, the Employer and the
buyer shall retain the discretion to specify, and may specify, that a participant performing
services for an Employer immediately before the asset purchase transaction and providing
services to the buyer after and in connection with the asset purchase transaction shall not
experience a Separation from Service for purposes of this Plan and the participant shall be
bound by same, provided that such transaction and the specification meet the requirements of
Code Section 409A.

     (d) For purposes of this definition, “Employer” means:

     (i) The entity for whom the Participant performs services and with respect to
which the legally binding right to an Award or Payout under an Award arises; and

     (ii) All other entities with which the entity described in subparagraph (d)(i)
of this definition would be aggregated and treated as a single employer under Code
Section 414(b) (controlled group of corporations) and Code Section 414(c)
(group of trades or businesses under common control), as applicable. To
identify the

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group of entities described in the preceding sentence, an ownership
threshold of 50% shall be used as a substitute for the 80% minimum ownership
threshold that appears in, and otherwise must be used when applying, the applicable
provisions of (A) Code Section 1563 and the regulations thereunder for determining a
controlled group of corporations under Code Section 414(b), and (B) Treasury
Regulation § 1.414(c)-2 for determining the trades or businesses that are under
common control under Code Section 414(c).

     “Specified Employee” means any Participant who is determined to be a “key employee” (as
defined under Code Section 416(i) without regard to paragraph (5) thereof) for the applicable
period, as determined by Centex Corporation in accordance with Treasury Regulation § 1.409A-1(i).

     “Termination Date” means the last date on which the Participant is carried on a Company’s
payroll as an employee.

     “Vested Retirement” means the voluntary termination by a Participant who is a Full Time
Employee of all Employment at any time after the Participant is age 55 or older, completes at least
10 Years of Service and the sum of age and Years of Service with one or more Companies equals at
least 70. In no event will the Plan’s Vested Retirement provisions apply to Awards made on or
after April 1, 2006.

     “Years of Service” means the Participant’s years of employment with a Company. A Participant
shall be credited with a Year of Service on each anniversary of the date on which he or she was
first employed with a Company, provided that the Participant continues to be employed by a Company
on such anniversary date.

3. Eligibility

     Only highly compensated employees of a Company are eligible for Awards under this Plan, as
determined in the sole discretion of the Administrator. The Administrator shall select the
Participants in the Plan from time to time as evidenced by the grant of Awards under the Plan.

4. Plan Administration

     The Plan shall be administered by the Administrator, which shall have full and exclusive power
to interpret this Plan and to adopt such rules, regulations and guidelines for carrying out this
Plan as it may deem necessary or appropriate in its sole discretion. The Administrator shall
determine all terms and conditions of the Awards. The Administrator may, in its discretion, after
considering tax and other potential legal implications, accelerate the vesting or Payout of an
Award, eliminate or make less restrictive any restrictions contained in an Award Agreement, waive
any restriction or other provision of this Plan or an Award Agreement or otherwise amend or modify
an Award in any manner that is either (i) not materially adverse to the Participant holding the
Award or (ii) consented to by such Participant; provided, however, that the Payout Date for an
Award may be deferred only as provided in paragraph 8(b) of this Plan. The Administrator may
delegate to one or more employees of Centex Corporation the performance of non-discretionary functions under this
Plan, including distributions of Payouts.

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5. Awards

     (a) The granting of Awards under this Plan shall be entirely discretionary, and nothing in
this Plan shall be deemed to give any employee of a Company any right to participate in this Plan
or to be granted an Award.

     (b) Awards shall be granted to Participants at such times, and subject to paragraph 5(d)
below, in such amounts as the Administrator, in its sole and absolute discretion, shall determine.
No credit for cash dividends on Deferred Stock will be allowed (or accrued) prior to Payout.

     (c) The term of an Award shall run from the Grant Date to the Payout Date as described in
Section 8 below or forfeiture as described in Section 7 below.

     (d) The maximum number of Shares that may be awarded under this Plan, subject to Section 13
below, is 1,110,995. As of March 31, 2006 a total of 123,379 shares were available to be awarded.

     (e) If an Award is forfeited, the number of Shares with respect to which such Award shall not
have been exercised prior to its forfeiture may again be awarded pursuant to the provisions hereof.

6. Vesting of Awards

     (a) Unless different terms are set by the Administrator, an Award shall be immediately 25%
vested on its Grant Date and shall become vested in cumulative 25% increments on each of the first
through third anniversaries of such Grant Date, so that on the third anniversary of the Grant Date
the Award will be 100% vested; provided, however, that the Participant must be in continuous
Employment from the Grant Date through the date of the applicable anniversary in order for the
Award to vest.

     (b) A Participant’s Award shall be fully vested, irrespective of the limitations set forth in
subparagraph (a) above, in the event of (i) a Change in Control, as provided for in Section 13
below, provided that the Participant has been in continuous Employment from the Grant Date until
the date of such Change in Control or (ii) for Awards granted prior to April 1, 2006, Vested
Retirement of the Participant.

7. Forfeiture of Awards

     If a Participant’s Employment is terminated other than through Vested Retirement with respect
to Awards granted prior to April 1, 2006, the Participant shall forfeit his or her Award(s) with
respect to any portion that is not vested as of such Participant’s Termination Date.

8. Payouts of Awards

     (a) Automatic Payout on Vesting Dates. Except as otherwise provided in Section 8(b)
or an Award Agreement, the Payout Date for an Award will be the date on which the payment is no
longer subject to a substantial risk of forfeiture within the meaning of Code Section 409A;

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provided, however, that Payout may be made at a later date for administrative reasons to the extent
permitted by Code Section 409A; provided, further, that the Participant shall not be permitted,
directly or indirectly, to designate the calendar year of Payout.

     (b) Deferred Payout. With the approval of the Administrator, the Payout Date for an
Award may be deferred and Payout may be made in the form of a lump-sum payment. The Administrator
may permit selected Participants to elect to defer the Payout Date in accordance with the
provisions of this Section 8(b) and such other procedures as may be established by the
Administrator. The Administrator also may specify in an Award Agreement or the terms of the Award
that the Payout Date for an Award will be deferred. Any Award with a deferred Payout Date, whether
elected by the Participant or specified by the Award Agreement or the terms of the Award, may be
forfeited if and to the extent that the Award Agreement or the terms of the Award so provide. Any
such deferral will be made in accordance with the following:

     (i) Initial Deferral Elections by Participants. Except as otherwise provided in this
subparagraph (b), the Participant must make a written, irrevocable election as to deferral
of the Payout Date for the Award and the time and form of the Payout on or before the
deadline established by the Administrator, which shall be no later than:

     (A) December 31st of the calendar year preceding the calendar year
during which the Participant will commence performing the services giving rise to
the Award subject to the deferral election; or

     (B) for the first year in which the Participant becomes eligible to participate
in the Plan, 30 days after the date the Participant first becomes eligible to
participate in the Plan, provided that such an election will only be effective with
respect to the portion of the Award related to services performed after the
election.

     (ii) Initial Participant Deferral Elections for Performance-Based Compensation. In the
event that the Administrator determines that a deferral election may be made with respect to
an Award that is Performance-Based Compensation (as defined below), an eligible Participant
may make a written, irrevocable election as to deferral of the Payout Date for the Award and
the time and form of the Payout on or before the deadline established by the Administrator,
which shall not be later than 6 months before the end of the performance period.

     For purposes of this subparagraph, “Performance-Based Compensation” means an Award, the
amount of which, or the entitlement to which, is contingent on the satisfaction of
preestablished organizational or individual performance criteria relating to a performance
period of at least 12 consecutive months, as determined by the Administrator in accordance
with Treasury Regulation § 1.409A-1(e).  Performance criteria are considered
preestablished if established in writing by not later than 90 days after the commencement of
the period of service to which the criteria relates, provided that the outcome is
substantially uncertain at the time the criteria are established.

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     For a Participant to be eligible to make a deferral election in accordance with this
subparagraph (ii), the Participant must have performed services continuously from the later
of (A) the beginning of the performance period for the Performance-Based Compensation or (B)
the date upon which the performance criteria with respect to the Performance-Based
Compensation are established, through the date on which the Participant makes the deferral
election.  In addition, in no event may a deferral election under this subparagraph be made
after the Performance-Based Compensation has become readily ascertainable within the meaning
of Treasury Regulation § 1.409A-2(a)(8).

     (iii) Initial Participant Deferral Elections for Fiscal Year Compensation. In the
event that the Administrator determines that a deferral election may be made with respect to
an Award that is Fiscal Year Compensation (as defined below), the Participant may make a
written, irrevocable election as to the deferral of the Payout Date for the Award and the
time and form of the Payout on or before the deadline established by the Administrator,
which shall not be later than the close of the Employer’s fiscal year immediately preceding
the first fiscal year in which any services are performed for which the Award is payable.
 For purposes of this subparagraph (iii), the term “Fiscal Year Compensation” means an Award
relating to a period of service coextensive with one or more consecutive fiscal years of a
Company, of which no amount is paid or payable during the fiscal year(s) constituting the
period of service.

     (iv) Initial Participant Deferral Elections for Short-Term Deferrals. If a Participant
has a legally binding right to an Award under the Plan or a Payout under an Award in a
subsequent calendar year that, absent a deferral election, would be treated as a short-term
deferral within the meaning of Treasury Regulation § 1.409A-1(b)(4) and the Administrator
determines that a deferral election may be made with respect to the Award, the Participant
may make a written, irrevocable election to defer the Payout Date for the Award in
accordance with the requirements of subparagraph (vii) of this paragraph 8(b), applied as if
the Award provided for a deferral of compensation and the scheduled Payout Date or Dates
were the date(s) the substantial risk of forfeiture lapses. The Administrator may provide
in the deferral election that the deferred Payout Date will be payable upon a Change in
Control without regard to the five-year additional deferral requirement in subparagraph
(vii) of this Section 8(b).

     (v) Initial Participant Deferral Elections for Compensation Subject to a Risk of
Forfeiture. If a Participant has a legally binding right to an Award under the Plan or
Payout under an Award in a subsequent year and Payout of or under the Award is subject to a
forfeiture condition requiring the Participant’s continued services for a period of at least
12 months from the date the Participant obtains the legally binding right, the Administrator
may permit the Participant to make a written, irrevocable election to defer the Payout Date
no later than the 30th day after the Participant obtains the legally binding right,
provided that the election is made at least 12 months in advance of the earliest date at
which the forfeiture condition could lapse, as determined in accordance with Treasury
Regulation § 1.409A-2(a)(5). For purposes of this subparagraph, a condition will not be
treated as failing to require the Participant to continue to provide services for a period
of at least 12 months from

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the date the Participant obtains the legally binding right merely
because the condition immediately lapses upon Disability or death of the Participant or upon
a Change in Control. However, if the Participant’s Disability or death or a Change in
Control event occurs before the end of such 12-month period, a deferral election under this
subparagraph will be effective only if it would be permissible under another subparagraph of
this Section 8(b).

     (vi) Deferrals by Administrator. If an Award is made that provides for the deferral of
compensation for services performed during a Participant’s taxable year and the Participant
is not given an opportunity to elect the time or form of Payout of such Award, the
Administrator must designate the Payout Date and the form of Payout no later than the time
the Participant first has a legally binding right to the Award or, if later, the time the
Participant would be required under this Section 8(b) to make such an election if the
Participant were provided such an election.

     (vii) Subsequent Participant Deferral Elections. Notwithstanding the foregoing
provisions of this Section 8(b), with approval of the Administrator, a Participant may elect
to further delay the Payout Date for an Award or change the form of Payout if:

     (A) the election will not take effect until at least 12 months after the date
on which the election is made;

     (B) for any Payout not made on account of death or Disability, the Payout Date
is deferred for a period of not less than five years from the date Payout would
otherwise have been paid and not later than the Expiration Date; and

     (C) any election related to a Payout to be made at a specified time or pursuant
to a fixed schedule must be made not less than 12 months before the Payout Date is
scheduled to occur.

Notwithstanding the foregoing or any other provision of this Plan to the contrary, the
Administrator may permit Participants to make new payment elections on or before December
31, 2008, with respect to the time and/or form of payment in respect of an Award, provided
that the election applies only to amounts that would not otherwise be payable in year the
election is made and does not cause an amount to be paid in the year the election is made
that would not otherwise be payable in that year.

     (viii) Acceleration of Payout. Notwithstanding any provision of this Plan, an Award
Agreement or a deferral election to the contrary, the Administrator, in its discretion, may
accelerate Payout of an Award in accordance with the provisions of Treasury Regulation §
1.409A-3(j)(4)(ii) through (xiv).

     (ix) Delay of Payout. Notwithstanding any provision of this Plan, an Award Agreement
or a deferral election to the contrary, Payout of an Award may be delayed by the
Administrator under the circumstances described in Treasury Regulation § 1.409A-2(b)(7),
provided that the Administrator treats all Payouts to similarly situated Participants on a
reasonably consistent basis.

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     (c) Permissible Payment Events/Times. The Administrator may specify any one or more
of the following as an event upon or a time at which the Payout Date for the vested portion of an
Award may occur pursuant to a deferral election under Section 8(b): (i) Separation from Service,
(ii) Disability, (iii) death, (iv) a specified date or pursuant to a fixed schedule, or (v) a
Change in Control. The Administrator may provide for a Payout Date upon the earliest or latest of
more than one such event or time. Notwithstanding the foregoing, the Payout Date may not occur
later than the Expiration Date.

9. Time and Form of Payout

     As soon as practicable following a determination that Payout of a Participant’s Award shall be
made as described in Section 8, but not later than five business days after the required Payout
Date, Centex Corporation shall make a Payout to the Participant; provided, however, that Payout may
be made at a later date for administrative reasons to the extent permitted by Code Section 409A;
provided, further, that the Participant shall not be permitted, directly or indirectly, to
designate the calendar year of Payout. Payouts shall be made in Shares except that no fractional
shares will be issued and in lieu thereof cash will be paid to the Participant.

     Any provision of the Plan to the contrary notwithstanding, if an Award provides for a deferral
of compensation under Code Section 409A and the Participant is a Specified Employee as of the date
of his or her Separation from Service, no Payout on account of the Participant’s Separation from
Service may be made with respect to such Participant before the date that is six months after the
Participant’s Separation from Service (or, if earlier than the end of the six-month period, the
date of the Participant’s death). In such case, any Payout that would be made within such
six-month period will be accumulated and paid in a single lump sum on the earliest business day
that complies with the requirements of Code Section 409A.

10. Delivery of Share Certificates

     As promptly as may be administratively practicable following a Payout, Centex Corporation
shall make delivery of one or more Share certificates, and, at the election of the Participant,
either by delivery of a physical certificate or an electronic transfer to a broker, for the
appropriate number of Shares.

11. Tax Withholding

     Centex Corporation shall deduct applicable taxes with respect to any Award or Payout and
withhold, at the time of vesting, Award or Payout, as appropriate, a number of Shares, based on the
Fair Market Value on such date, for payment of taxes required by law.

12. Non-Assignability

     Unless otherwise determined by the Administrator, no Award or Payout or any other benefit
under this Plan shall be assignable or otherwise transferable except to a Beneficiary or by will,
the laws of descent and distribution or a domestic relations order. The Administrator may prescribe

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other restrictions on transfer. Any attempted assignment of an Award or any other benefit under
this Plan in violation of this Section 12 shall be null and void.

13. Changes in Shares and Certain Corporate Transactions

     (a) In the event of any subdivision or consolidation of outstanding Shares, declaration of a
dividend payable in Shares or other stock split, then (i) the number of Shares available for Awards
under this Plan, and (ii) the number of Shares covered by outstanding Awards, shall each be
proportionately adjusted by the Board as appropriate to reflect such transaction. In the event of
any other recapitalization or capital reorganization of the Centex Corporation, any consolidation
or merger of the Centex Corporation with another corporation or entity, the adoption by the Centex
Corporation of any plan of exchange affecting Shares or any distribution to holders of Shares of
securities or property (other than normal cash dividends or dividends payable in Shares), the Board
shall make appropriate adjustments to (i) the number of Shares available for Awards under this
Plan, and (ii) the number of Shares covered by outstanding Deferred Awards, to reflect such
transaction; provided that such adjustment under (ii) shall only be such as are necessary to
maintain the proportionate interest of the holders of the Awards and preserve, without increasing,
the value of such Awards.

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

     (b) Notwithstanding anything to the contrary above, a dissolution or liquidation of Centex
Corporation, a merger (other than a merger effecting a reincorporation of Centex Corporation in
another state) or consolidation in which Centex Corporation is not the surviving corporation (or
survives only as a subsidiary of another corporation in a transaction in which the stockholders of
the parent of Centex Corporation and their proportionate interests therein immediately after the
transaction are not substantially identical to the stockholders of Centex Corporation and
their proportionate interests therein immediately prior to the transaction), a transaction in which
another corporation becomes the owner of 50% or more of the total combined voting power of all
classes of stock of Centex Corporation, or a Change in Control shall cause every Award then
outstanding to become fully vested immediately prior to such dissolution, liquidation,

12

 

merger,
consolidation, transaction, or Change in Control event, without regard to the determination as to
the periods and installments of vesting contained in the Agreements if (and only if) such Awards
have not at that time expired or been terminated. Payout of Awards that vest under this Section
13(b) shall be made in accordance with Sections 8 and 9 of this Plan. Notwithstanding the
foregoing provisions of this paragraph, in the event of such dissolution, liquidation, merger,
consolidation, transaction, or Change in Control, the Board may completely satisfy all obligations
of Centex Corporation and its Affiliates with respect to any Award that is not subject to Code
Section 409A and outstanding on the date of such event by delivering to the Participant cash in an
amount equal to the Fair Market Value of such Shares on the date of such event, such payment to be
made within a reasonable time but no later than 60 days after such event; provided, however, that
this sentence shall apply only if a Payout Date occurs upon a Change in Control with respect to a
Participant in accordance with Section 8.

14. Plan Year

     The Plan, as amended and restated, shall be effective as of October 1, 2001 and will continue
in effect until the Administrator terminates the same. The Plan year will be April 1 through
March 31 while this Plan is in effect.

15. Requirements of Law

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

16. Amendment, Suspension or Termination

     The Board may amend, suspend or terminate the Plan at any time for the purpose of meeting or
addressing any changes in legal requirements or for any other purpose permitted by law, except that
no amendment, suspension or termination shall be made that would impair the rights of any
Participant as to a vested Award previously granted to such Participant without his or her written
consent.

17. Unfunded Plan

     This Plan shall be unfunded. Although bookkeeping accounts may be established with respect to
Participants representing Awards, any such accounts shall be used merely as a bookkeeping
convenience. Centex Corporation shall not be required to segregate any assets that may
at any time be represented by Awards, nor shall this Plan be construed as providing for such
segregation, nor shall Centex Corporation, the Board or the Administrator (or any delegate
thereof) be deemed to be a trustee of any Awards to be granted under this Plan. Any
liability or obligation of Centex Corporation to any Participant with respect to a grant of Awards
under this Plan shall be based solely upon any contractual obligations that may be created under
this Plan, and no such

13

 

liability or obligation of Centex Corporation shall be deemed to be secured
by any pledge or other encumbrance on any property of Centex Corporation. None of Centex
Corporation or any other Company, the Board or the Administrator (or any delegate thereof) shall be
required to give any security or bond for the performance of any obligation that may be created by
this Plan.

     Notwithstanding the foregoing, upon the occurrence of a Change in Control, each Company whose
employees are Participants with respect to whom a Payout Date does not occur as a result of the
Change in Control with respect to any outstanding Awards shall, as soon as possible, but in no
event longer than 15 days following the Change in Control, make an irrevocable contribution to a
trust established by Centex Corporation in an amount sufficient to fully pay the entire benefit to
which each such Participant employed by such Company would be entitled pursuant to the terms of
this Plan as of the date on which such Change in Control occurs. In its sole discretion, Centex
Corporation may establish such a trust at any time prior to a Change in Control and may make
contributions to such trust in Shares or in cash which would be used to acquire Shares to transfer
to such Participant. Any such trust shall be designed to assist Centex Corporation in satisfying
its obligations under this Plan; but it shall remain subject to the claims of its creditors.

18. No Employment Guaranteed

     No provision of this Plan or any Award Agreement hereunder shall confer any right upon any
employee to continued employment with a Company.

19. No Stockholder Rights

     A Participant shall have no rights as a holder of Shares with respect to Awards granted
hereunder. In particular, no Award shall entitle a Participant to be considered a holder of Shares
or to have any rights to dividends or other distributions made to holders of Shares prior to the
Payout of such Award.

20. Governing Law

     This Plan and all determinations made and actions taken pursuant hereto, to the extent not
otherwise governed by mandatory provisions of the Act or other securities laws of the United
States, shall be governed by and construed in accordance with the laws of the State of Texas,
without reference to any conflicts of law principles thereof that would require the application of
the laws of another jurisdiction.

21. Indemnification

     Neither the members of the Board, any member of the Compensation and Management Development
Committee, acting in the capacity of Administrator, nor any delegates of the
Administrator, shall be liable for any act, omission or determination taken or made in good
faith with respect to the Plan or any Award granted under it, and the members of the Board and the
Compensation and Stock Option Committee (or its delegate) shall be entitled to indemnification and
reimbursement by Centex Corporation in respect of any claim, loss, damage or expense (including

14

 

counsel fees) arising therefrom to the full extent permitted by law and under any directors and
officers liability or similar insurance coverage that may be in effect from time to time.

22. Release

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

15exv10w7

 

Exhibit 10.7

CENTEX CORPORATION

DEFERRED COMPENSATION PLAN

Amended and Restated Effective January 1, 2008

 

 

CENTEX CORPORATION

DEFERRED COMPENSATION PLAN

Amended and Restated Effective January 1, 2008

Table of Contents

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	ARTICLE I. NATURE OF PLAN	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE II. DEFINITIONS AND CONSTRUCTION	 	 	1	 
	 	2.1	 	 	Definitions

	 	 	1	 
	 	2.2	 	 	Word Usage

	 	 	7	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE III. ELIGIBILITY TO PARTICIPATE	 	 	8	 
	 	3.1	 	 	Date of Participation

	 	 	8	 
	 	3.2	 	 	Resumption of Participation Following Re-employment

	 	 	8	 
	 	3.3	 	 	Change in Employment Status

	 	 	8	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE IV. CONTRIBUTIONS	 	 	8	 
	 	4.1	 	 	Election by Participant to Defer Compensation

	 	 	8	 
	 	4.2	 	 	Crediting of Amounts to a Participant’s Account

	 	 	10	 
	 	4.3	 	 	Employer Contributions

	 	 	10	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE V. PARTICIPANT ACCOUNTS	 	 	10	 
	 	5.1	 	 	Participant Accounts

	 	 	10	 
	 	5.2	 	 	Accounting for Distributions

	 	 	11	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE VI. INVESTMENT OF CONTRIBUTIONS	 	 	11	 
	 	6.1	 	 	Manner of Investment

	 	 	11	 
	 	6.2	 	 	Investment Decisions

	 	 	11	 
	 	6.3	 	 	Adjustment for Investment Experience

	 	 	11	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE VII. DISTRIBUTION OF BENEFITS	 	 	12	 
	 	7.1	 	 	Election for Form of Distribution of Benefits

	 	 	12	 
	 	7.2	 	 	Time of Distribution.

	 	 	13	 
	 	7.3	 	 	Subsequent Deferral Elections

	 	 	15	 
	 	7.4	 	 	Distribution In the Event of the Participant’s Death

	 	 	15	 
	 	7.5	 	 	Withdrawals in the Event of an Unforeseeable Financial Emergency

	 	 	16	 
	 	7.6	 	 	Notice to Trustee

	 	 	17	 
	 	7.7	 	 	Change in Control

	 	 	17	 

i

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	7.8	 	 	Accelerated Distribution Under Certain Circumstances

	 	 	17	 
	 	7.9	 	 	Delay of Distribution Under Certain Circumstances

	 	 	17	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE VIII. AMENDMENTS, TERMINATION AND ADOPTION BY RELATED EMPLOYERS	 	 	17	 
	 	8.1	 	 	Amendment by Company

	 	 	17	 
	 	8.2	 	 	Plan Termination

	 	 	17	 
	 	8.3	 	 	Adoption by Related Employers

	 	 	18	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE IX. TRUST	 	 	18	 
	 	9.1	 	 	Establishment of Trust

	 	 	18	 
	 	9.2	 	 	Funding

	 	 	18	 
	 
	ARTICLE X. PLAN ADMINISTRATION	 	 	18	 
	 	10.1	 	 	Powers and Responsibilities of the Administrative Committee

	 	 	18	 
	 	10.2	 	 	Establishment of the Administrative Committee

	 	 	19	 
	 	10.3	 	 	Claims and Review Procedures

	 	 	19	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE XI. MISCELLANEOUS	 	 	20	 
	 	11.1	 	 	Communication to Participants

	 	 	20	 
	 	11.2	 	 	Limitation of Rights

	 	 	21	 
	 	11.3	 	 	Spendthrift Provision

	 	 	21	 
	 	11.4	 	 	Spousal Claims

	 	 	21	 
	 	11.5	 	 	Withholding

	 	 	21	 
	 	11.6	 	 	Facility of Payment

	 	 	21	 
	 	11.7	 	 	Overpayment and Underpayment of Benefits

	 	 	21	 
	 	11.8	 	 	Governing Law

	 	 	22	 

ii

 

CENTEX CORPORATION

DEFERRED COMPENSATION PLAN

Amended and Restated Effective January 1, 2008

ARTICLE I.

NATURE OF PLAN

     Centex Corporation (the “Company”) established the Centex Corporation Deferred Compensation
Plan (the “Plan”) effective January 1, 2000, for the benefit of certain of its Employees. The
purpose of the Plan is to provide supplemental retirement income and to permit Eligible Employees
the option to defer receipt of Compensation.

     The Plan was amended and restated, effective January 1, 2003, to make certain changes.
Effective January 1, 2008, the Plan is amended and restated to document that the portion of the
Plan applicable to amounts deferred and vested prior to January 1, 2005 has been segregated from
the portion of the Plan applicable to amounts deferred or vested after December 31, 2004, to make
certain changes designed to comply with the requirements of Section 409A of the Internal Revenue
Code of 1986, as amended, and the final regulations thereunder with respect to amounts deferred or
vested after December 31, 2004, and to make certain other changes.

     The Plan is intended to be an unfunded deferred compensation plan maintained for the benefit
of a select group of management or highly compensated employees under sections 201(2), 301(a)(3)
and 401(a)(1) of ERISA.

     The portion of each Participant’s Account under the Plan as of December 31, 2004 that was
earned and vested as of that date shall be segregated into a separate account under the Plan to be
known as the Grandfathered Account. The Grandfathered Account will be adjusted for any earnings or
losses on amounts credited to such account. The Grandfathered Accounts shall be subject to the
terms and conditions of the Plan as in effect on December 31, 2007 (the “Superseded Plan”).
Notwithstanding any provision of this Plan to the contrary, the Grandfathered Accounts shall not be
subject to the terms and conditions of this amended and restated Plan, as provided below.

     NOW, THEREFORE, Centex Corporation hereby authorizes the amendment and restatement of the
Plan, effective as of January 1, 2008, to read as follows:

ARTICLE II.

DEFINITIONS AND CONSTRUCTION

     2.1 Definitions. Wherever used herein, the following terms have the meanings set
forth below, unless a different meaning is clearly required by the context:

          “Account” means an account established on the books of the Employer for the purpose of
recording amounts credited on behalf of a Participant and any income, expenses,

1

 

gains or losses included thereon as described in Article V, and does not include any Grandfathered Account.

          “Administrative Committee” means the Plan Administrative Committee as from time to time
constituted.

          “Base Salary” means the Participant’s base salary otherwise payable prior to reduction for any
elective deferrals pursuant to Section 401(k) of the Code, salary reduction elections pursuant to
Section 125 of the Code, or the Participant deferrals of Base Salary under this Plan.

          “Beneficiary” means the person or persons entitled under Section 7.4 to receive benefits under
the Plan upon the death of a Participant.

          “Board” means the Board of Directors of the Company.

          “Bonus” means any bonus payable to a Participant prior to reduction for any elective deferrals
pursuant to Section 401(k) of the Code, salary reduction elections pursuant to Section 125 of the
Code, or the Participant deferrals of Bonus under this Plan.

          “Change in Control” means, unless otherwise defined by the independent Compensation Committee
of the Board, a change in control of a nature that would be required to be reported in response to
Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of 1934,
as amended (the “Act”), whether or not the Company is then subject to such reporting requirement;
provided, that, without limitation, such a change in control shall be deemed to have occurred if:

          (1) a third person, including a “Group” as defined in Section 13(d)(3) of the Act,
becomes the beneficial owner of Company common stock, par value $.25 per share, having fifty
(50) percent or more of total number of votes that may be cast for the election of directors
on the Board; or

          (2) as a result of, or in connection with, a contested election for director on the
Board, persons who were directors immediately before such election shall cease to constitute
a majority of the Board;

provided, however, that no Change in Control shall be deemed to have occurred unless such event
constitutes an event specified in Code Section 409A(a)(2)(A)(v) and the Treasury Regulations and
other guidance issued under or related to Section 409A of the Code.

          “Code” means the Internal Revenue Code of 1986, as amended from time to time.

          “Code Section 409A” means Section 409A of the Code and all applicable regulations and other
guidance issued under or related to Section 409A of the Code.

          “Commissions” means the cash commissions earned by a Participant during a Plan Year, as
determined in accordance with Code Section 409A prior to reduction for any

2

 

elective deferrals
pursuant to Section 401(k) of the Code, salary reduction elections pursuant to Section 125 of the
Code, or the Participant deferrals of Commissions under this Plan.

          “Company” means Centex Corporation, a Nevada corporation, or any successor thereto which shall
adopt this Plan.

          “Compensation” shall mean compensation payable to an Eligible Employee by the Employer as Base
Salary, Bonus, or Commissions.

          “Deferred Compensation Agreement” means an “Enrollment/Deferral Form” pursuant to which an
Eligible Employee elects to defer part of his Compensation under this Plan, and acknowledge his
election to participate in the Plan, in accordance with, and subject to, the provisions of the
Plan, and which specifies:

          (1) that the Eligible Employee agrees to participate in this Plan in accordance with
its provisions; and

          (2) that this Plan is incorporated by reference and the Deferred Compensation Agreement
shall be subject to this Plan in all respects.

          “Disability” means a disability which entitles a Participant to benefits under the Employer’s
long-term disability insurance plan or program, provided that the Participant also meets one of the
following conditions:

          (1) the Participant is unable to engage in any substantial gainful activity by reason
of a medically determinable physical or mental impairment that can be expected to result in
death or can be expected to last for a continuous period of not less than 12 months; or

          (2) the Participant is, by reason of any medically determinable physical or mental
impairment that can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months, receiving income replacement benefits for a
period of not less than three months under an accident and health plan covering employees of
the Participant’s Employer.

          “Election Period” means the period specified by the Administrative Committee at least once a
year during which Eligible Employees may enter into Deferred Compensation Agreements to apply for
the next Plan Year. The Administrative Committee may also establish procedures for (1) initial
Election Periods for Mid-Year Eligible Employees, each such initial Election Period to begin on the
Mid-Year Eligible Employee’s first day of employment and extend for 30 days thereafter, (2) an
Election Period with respect to Fiscal Year Compensation as provided in Section 4.1(b)(i)(B),
and/or (3) an Election Period with respect to Performance-Based Compensation as provided in Section
4.1(b)(i)(C).

          “Eligible Employee” means an Employee of the Employer who is determined by the Administrative
Committee to be a member of a select group of management or highly

3

 

compensated Employees and who is designated by the Administrative Committee as eligible to defer Compensation under the Plan during
a Plan Year, including Mid-Year Eligible Employees.

          “Employee” means any employee of the Employer.

          “Employer” means, except as defined below with respect to Separation from Service, (1) the
Company, (2) any Related Employer that is treated as a single employer with the Company under
Section 414(b) or (c) of the Code, and (3) any Related Employer not described in clause (2) that
adopts the Plan pursuant to the provisions of Section 8.3.

          “Entry Date” means the first day of the Plan Year after the Employee both becomes an Eligible
Employee and enters into a Deferred Compensation Agreement, except as otherwise provided with
respect to a Mid-Year Eligible Employee, Fiscal Year Compensation, and Performance-Based
Compensation.

          “ERISA” means the Employee Retirement Income Security Act of 1974, as from time to time
amended.

          “Fiscal Year Compensation” means a Bonus relating to a period of service coextensive with one
or more consecutive fiscal years of the Employer, of which no amount is paid or payable during the
fiscal year(s) constituting the period of service.

          “Form of Distribution” means one of the distribution options set forth in Section 7.1.

          “Grandfathered Account” is defined in Article I.

          “Mid-Year Eligible Employee” means any Employee who is hired during a Plan Year whom the
Administrative Committee designates, in its sole and absolute discretion, as first eligible to
defer Compensation under the Plan during the Plan Year in which the Employee is hired.

          “Participant” means any Eligible Employee who participates in the Plan in accordance with
Article III hereof.

          “Performance-Based Compensation” means a Bonus, the amount of which, or the entitlement to
which, is contingent on the satisfaction of preestablished organizational or individual performance
criteria relating to a performance period of at least 12 consecutive months, as determined by the
Administrative Committee in accordance with Treasury Regulation § 1.409A-1(e).  Performance
criteria are considered preestablished if established in writing by not later than 90 days after
the commencement of the period of service to which the criteria relates, provided that the outcome
is substantially uncertain at the time the criteria are established.

          “Plan” means the Centex Corporation Deferred Compensation Plan as set forth herein and as may
be amended from time to time.

4

 

          “Plan Year” means the 12-consecutive month period beginning January 1 and ending December 31
or, with respect to a Mid-Year Eligible Employee who executes a Deferred Compensation Agreement
during the 30-day initial Election Period, the period beginning on the first day after the Election
Period and ending on December 31 of that year.

          “Related Employer” means any employer other than the Company named herein, if the Company and
such other employer are members of a controlled group of corporations (as defined in Section 414(b)
of the Code) or an affiliated service group (as defined in Section 414(m)), or are trades or
businesses (whether or not incorporated) which are under common control (as defined in Section
414(c)), or such other employer is required to be aggregated with the Company pursuant to
regulations issued under Code Section 414(o). Related Employer shall also include any joint
venture in which the Company is a partner, if the Company manages such joint venture, and any
Affiliated Business Arrangement. For purposes of this definition of Related Employer, an
“Affiliated Business Arrangement” means any entity in which either CTX Mortgage Ventures
Corporation, a Nevada corporation, CTX Mortgage Ventures, LLC, a Delaware limited liability
company, or a subsidiary of the Company owns an interest and in which a non-Company owned entity
also owns an interest, and may take the form of a limited partnership, a limited liability limited
partnership, a limited liability company or such other ownership and management structure as CTX
Mortgage Ventures Corporation, CTX Mortgage Ventures, LLC, or a subsidiary of the Company, as
applicable, may deem appropriate.

          “Retirement” means the Participant’s Separation from Service at any time after (1) the
Participant has attained age 50 and (2) the sum of his attained age and his Years of Service equal
or exceed 60. Calculation of eligibility for Retirement shall be based on whole years of age and
Years of Service on the date as of which the calculation is being made. Any partial years shall be
disregarded.

          “Separation from Service” means a termination of services provided by a Participant to his or
her Employer (as defined below), whether voluntarily or involuntarily, as determined by the
Administrative Committee in accordance with Treasury Regulation § 1.409A-1(h).  In determining
whether a Participant has incurred a Separation from Service, the following provisions shall apply:

          (1) Except as otherwise provided in this definition, a Separation from Service will
occur when the Participant has experienced a termination of employment with the Employer.  A
Participant will be considered to have experienced a termination of employment when the
facts and circumstances indicate that the Participant and his or her Employer reasonably
anticipate that either (i) no further services will be performed for the Employer after a
certain date, or (ii) that the level of bona fide services the Participant will perform for
the Employer after such date (whether as an employee or as an independent contractor) will
permanently decrease to no more than 331/3 percent of the average level of bona fide services
performed by the Participant (whether as an employee or an independent contractor) over the
immediately preceding 36-month period (or the full period of services to the Employer if the
Participant has been providing services to the Employer less than 36 months).

5

 

            If a Participant is on military leave, sick leave, or other bona fide leave of
absence, the employment relationship between the Participant and the Employer will be
treated as continuing, provided that the period of the leave of absence does not exceed 6
months, or if longer, so long as the Participant has a right to reemployment with the
Employer under an applicable statute or by contract.  If the period of a military leave,
sick leave, or other bona fide leave of absence exceeds 6 months and the Participant does
not have a right to reemployment under an applicable statute or by contract, the employment
relationship will be considered to be terminated for purposes of this Plan as of the first
day immediately following the end of such 6-month period.  In applying the provisions of
this paragraph, a leave of absence will be considered a bona fide leave of absence only if
there is a reasonable expectation that the Participant will return to perform services for
the Employer.

            (2) For a Participant who provides services to an Employer both as an employee
and as an independent contractor, a Separation from Service generally will not occur until
the Participant has ceased providing services for the Employer as both as an employee and as
an independent contractor. Except as otherwise provided herein, in the case of an
independent contractor a Separation from Service will occur upon the expiration of the
contract (or in the case of more than one contract, all contracts) under which services are
performed for the Employer, provided that the expiration of such contract or contracts is
determined by the Company to constitute a good-faith and complete termination of the
contractual relationship between the Participant and the Employer.  If a Participant ceases
providing services for an Employer as an employee and begins providing services for such
Employer as an independent contractor, the Participant will not be considered to have
experienced a Separation from Service until the Participant has ceased providing services
for the Employer in both capacities, as determined in accordance with the applicable
provisions set forth in subparagraphs (1) and (2) of this definition.

          Notwithstanding the foregoing provisions in this subparagraph, if a Participant
provides services for an Employer both as an employee and as a member of the board of
directors of an Employer, to the extent permitted by Treasury Regulation § 1.409A-1(h)(5),
the services provided by the Participant as a director will not be taken into account in
determining whether the Participant has experienced a Separation from Service as an
employee.

          (3) In addition, notwithstanding the provisions of this definition, where as part of a
sale or other disposition of substantial assets by an Employer to an unrelated buyer, a
Participant would otherwise experience a Separation from Service as defined above, the
Employer and the buyer shall retain the discretion to specify, and may specify, that a
Participant performing services for an Employer immediately before the asset purchase
transaction and providing services to the buyer after and in connection with the asset
purchase transaction shall not experience a Separation from Service for purposes of this
Plan and the Participant shall be bound by same, provided that such transaction and the
specification meet the requirements of Code Section 409A.

6

 

          (4) For purposes of this definition, “Employer” means:

               (a) The entity for whom the Participant performs services and with respect to
which the legally binding right to a benefit under this Plan arises; and

               (b) All other entities with which the entity described in subparagraph (4)(a)
of this definition would be aggregated and treated as a single employer under Code
Section 414(b) (controlled group of corporations) and Code Section 414(c) (group of
trades or businesses under common control), as applicable. To identify the group of
entities described in the preceding sentence, an ownership threshold of 50% shall be
used as a substitute for the 80% minimum ownership threshold that appears in, and
otherwise must be used when applying, the applicable provisions of (i) Code Section
1563 and the regulations thereunder for determining a controlled group of
corporations under Code Section 414(b), and (ii) Treasury Regulation § 1.414(c)-2
for determining the trades or businesses that are under common control under Code
Section 414(c).

          “Specified Employee” means any Participant who is determined to be a “key employee” (as
defined under Code Section 416(i) without regard to paragraph (5) thereof) for the applicable
period, as determined by the Company in accordance with Treasury Regulation § 1.409A-1(i).

          “Trust” means a trust fund established pursuant to the terms of the Plan.

          “Trustee” means the corporation or individuals named in the agreement establishing a Trust and
such successor and/or additional trustees as may be named in accordance with the Trust Agreement.

          “Unforeseeable Financial Emergency” means a severe financial hardship to the Participant
resulting from (i) a sudden and unexpected illness or accident of the Participant, the
Participant’s beneficiary, or the Participant’s dependent (as defined in Code Section 152 without
regard to paragraphs (b)(1), (b)(2) and (d)(1)(B) thereof), (ii) a loss of the Participant’s
property due to casualty, or (iii) such other similar extraordinary and unforeseeable circumstances
arising as a result of events beyond the control of the Participant, all as determined in the sole
discretion of the Administrative Committee.

          “Valuation Date” means the last day of the Plan Year and such other date(s) as designated by
the Company.

          “Years of Service” means the Participant’s years of employment with an Employer. A
Participant shall be credited with a Year of Service on each anniversary of the date on which he
was first employed with an Employer, provided that the Participant continues to be employed by an
Employer on such anniversary date.

     2.2 Word Usage. Words used in the masculine shall apply to the feminine where
applicable, and wherever the context of the Plan dictates, the plural shall be read as the singular
and the singular as the plural. The words “herein,” “hereof,” “hereinafter” and other conjunctive
uses of the word “here” shall be construed as reference to another portion of this Plan document. The terms
“Section” or “Article” when used as a cross-reference shall refer to other Sections or

7

 

Articles contained in the Plan and not to another instrument, document or publication unless specifically
stated otherwise.

ARTICLE III.

ELIGIBILITY TO PARTICIPATE

     3.1 Date of Participation. Except as provided in Section 4.1(b)(i)(B) with respect to
Fiscal Year Compensation and in Section 4.1(b)(i)(C) with respect to Performance-Based
Compensation, an Eligible Employee shall become a Participant in the Plan as of the first Entry
Date following his designation as an Eligible Employee by the Administrative Committee, or, with
respect to an Eligible Employee with respect to whom an initial Election Period during mid-year is
provided, on the first day after the 30-day initial Election Period, provided he executes a
Deferred Compensation Agreement during the applicable Election Period pursuant to Section 4.1. If
the Eligible Employee does not execute a Deferred Compensation Agreement during such Election
Period, then the Eligible Employee will become a Participant in the Plan as of the next Entry Date
with respect to which he continues to be an Eligible Employee, provided he has executed a Deferred
Compensation Agreement during the applicable Election Period.

     3.2 Resumption of Participation Following Re-employment. If a Participant experiences
a Separation from Service and thereafter returns to the employ of the Employer he will again become
a Participant as of an Entry Date following his date of reemployment, provided he is again
designated as an Eligible Employee and has executed a Deferred Compensation Agreement in accordance
with Section 4.1.

     3.3 Change in Employment Status. If any Participant has not experienced a Separation
from Service but he ceases to be an Eligible Employee, the individual shall continue to be a
Participant until the entire amount of his Account is distributed; provided, however, the
individual shall not be entitled to execute a Deferred Compensation Agreement during the period
that he is not an Eligible Employee and thus shall not be permitted to make deferrals of
Compensation to the Plan on and after the end of the Plan Year (or performance period) in which he
ceases to be an Eligible Employee.

ARTICLE IV.

CONTRIBUTIONS

     4.1 Election by Participant to Defer Compensation. Except as provided in Section
4.1(b)(i)(B) with respect to Fiscal Year Compensation and in Section 4.1(b)(i)(C) with respect to
Performance-Based Compensation, an Eligible Employee may elect to defer the receipt of a portion of
his cash Compensation for a Plan Year, not to
exceed 75% of such Compensation, by executing a Deferred Compensation Agreement during the Election
Period for such Plan Year. Such elections shall be made separately with respect to Base Salary,
Bonus and Commissions, subject to the following:

          (a) Base Salary. An Eligible Employee may elect during the Election Period for
such Plan Year either to defer a whole percentage of Base Salary or to specify a dollar

8

 

amount to be deferred from each semi-monthly payment of Base Salary to be made during such
Plan Year.

          (b) Bonus and Commissions.

               (i) Bonus.

                    (A) An Eligible Employee may elect during the Election Period for such Plan
Year to (i) defer a whole percentage of any Bonus that is to begin to be earned in
such Plan Year or (ii) to specify a dollar amount to be deferred from any Bonus that
is to begin to be earned in such Plan Year.

                    (B) In the event that the Administrative Committee determines that a Deferred
Compensation Agreement may be may be executed with respect to a Bonus that is Fiscal
Year Compensation, an Eligible Employee may make a written, irrevocable election as
to the deferral of a whole percentage or dollar amount of such Bonus, not to exceed
75% of such Bonus, on or before the deadline established by the Committee, which
shall not be later than the close of the Employer’s fiscal year immediately
preceding the first fiscal year in which any services are performed for which the
Bonus is payable.

                    (C) Notwithstanding subsections (b)(ii)(A) and (B), if the Administrative
Committee determines that a Deferred Compensation Agreement may be executed with
respect to a Bonus that is Performance-Based Compensation, an Eligible Employee may
make a written, irrevocable election as to the deferral of a whole percentage or
dollar amount of such Bonus, not to exceed 75% of such Bonus, on or before the
deadline established by the Administrative Committee, which shall not be later than
six months before the end of the performance period. For an Eligible Employee to be
eligible to execute a Deferred Compensation Agreement in accordance with this
subsection, the Eligible Employee must have performed services continuously from the
later of (1) the beginning of the performance period for the Performance-Based
Compensation or (2) the date upon which the performance criteria with respect to the
Performance-Based Compensation are established, through the effective date of the
Deferred Compensation Agreement.  In addition, in no event may an Eligible Employee
execute a Deferred Compensation Agreement under this subsection after the
Performance-Based Compensation has become readily ascertainable within the meaning
of Treasury Regulation § 1.409A-2(a)(8).

               (ii) Commissions. An Eligible Employee may elect during the Election Period
for a Plan Year to defer a whole percentage or dollar amount of
Commissions to be paid during each pay period in such Plan Year; provided, however,
that Commissions shall be eligible for deferral only to the extent customers’
payments giving rise to the Commissions are remitted to an Employer during such Plan
Year.

9

 

If an Eligible Employee elects a specific dollar amount to be deferred each pay period from
Base Salary or Commissions and/or to be deferred from Bonus and such dollar amount is
greater than 75% of such Base Salary or Commission amounts for that pay period or of such
Bonus amounts, the Eligible Employee shall be deemed to have elected to defer 75% of such
Base Salary, Commission or Bonus amounts.

          (c) Effectiveness of Deferred Compensation Agreement. The Deferred
Compensation Agreement shall become effective on the Entry Date following the Election
Period during which the agreement is executed, or with respect to a Mid-Year Eligible
Employee who executes a Deferred Compensation Agreement during a 30-day initial Election
Period, the first day after such initial Election Period and only with respect to
Compensation to be earned beginning on the first day after such initial Election Period as
provided in Treasury Regulations § 1.409A-2(a)(7). Notwithstanding the foregoing, a
Deferred Compensation Agreement with respect to (i) Fiscal Year Compensation shall become
effective as of the first day of the fiscal year related to the Fiscal Year Compensation and
(ii) Performance-Based Compensation shall become effective as of the first day of the
performance period for the Performance-Based Compensation. A Deferred Compensation
Agreement shall be irrevocable and shall continue in effect throughout such Plan Year (or
fiscal year or years, as applicable, with respect to Fiscal Year Compensation or performance
period with respect to Performance-Based Compensation). Notwithstanding the foregoing, a
separate Deferred Compensation Agreement shall be required for each succeeding Plan Year (or
fiscal year or years, as applicable, with respect to Fiscal Year Compensation or performance
period with respect to Performance-Based Compensation) for which the Employee continues as
an Eligible Employee.

     4.2 Crediting of Amounts to a Participant’s Account. The Employer shall credit a
Participant’s Account with the amount of Compensation the Participant has elected to defer. Such
amount shall be credited as of the date the Compensation subject to the Deferred Compensation
Agreement otherwise would have been paid to the Participant in the absence of the Deferred
Compensation Agreement.

     4.3 Employer Contributions. The Employer may, but shall not be required to, credit a
Participant’s Account with an amount determined in the sole and absolute discretion of the
Employer. In crediting such amounts, the Employer may, but shall not be required to, take into
consideration any contributions to which the Participant would be entitled under the Centex
Corporation Saving for Retirement Plan but for the limitations under section 401(a)(17), 415 or
other sections of the Code, or because of deferrals made by such Participant under this Plan.

ARTICLE V.

PARTICIPANT ACCOUNTS

     5.1 Participant Accounts. The Company will establish and maintain an Account for each
Participant to which shall be credited or debited all contributions and any earnings, losses and
expenses attributable to the Participant’s Account. The Administrative Committee will establish
and maintain such other accounts and records as it decides in its discretion to be

10

 

reasonably required or appropriate in order to discharge its duties under the Plan. Participants will be
furnished statements of their Account values at least once each Plan Year.

          Subject to the distribution provisions and other requirements of this Plan, a Participant
shall at all times have a fully vested and nonforfeitable right to the amounts credited to his
Account.

     5.2 Accounting for Distributions. As of any date of a distribution to a Participant or a
Beneficiary hereunder, the distribution to the Participant or to the Participant’s Beneficiary(ies)
shall be charged to the Participant’s Account.

ARTICLE VI.

INVESTMENT OF CONTRIBUTIONS

     6.1 Manner of Investment. All amounts credited to the Accounts of Participants shall be
valued as though invested and reinvested only in eligible investments as selected by the Company.

          (a) All dividends, interest, gains and distributions of any nature earned in respect of
an investment alternative in which the Account is treated as invested shall be credited to
the Account in an amount equal to the net increase or decrease in the net asset value of
each investment option since the preceding Valuation Date in accordance with the ratio that
the portion of the Account of each Participant that is treated as invested in the designated
investment option bears to the aggregate of all amounts treated as invested in the same
investment option.

          (b) Expenses attributable to the acquisition of investments shall be charged to the
Account of the Participant for which such investment is made.

     6.2 Investment Decisions. Investments in which the Accounts of Participants shall be
treated as invested and reinvested shall be directed by the Company. A Participant may provide
direction to the Company with respect to the eligible investments selected by the Company with
respect to which amounts in his
Account shall be valued; provided, however, that such direction shall be advisory and shall not
obligate the Company to provide that amounts shall be so invested.

     6.3 Adjustment for Investment Experience. If any distribution under Article VII is not
made in a single payment, the amount remaining in the Account after the distribution will be
subject to adjustment until distributed to reflect the income and gain or loss on the investments
in which such amount is treated as invested and any expenses properly charged to such amounts.

11

 

ARTICLE VII.

DISTRIBUTION OF BENEFITS

     7.1 Election for Form of Distribution of Benefits.

          (a) Each individual who will be an Eligible Employee as of January 1, 2008 and who has
executed a Deferred Compensation Agreement to be effective as of January 1, 2008 or who has
executed a Deferred Compensation Agreement at any time between January 1, 2005 and December
31, 2007 and to whom the amounts credited to his Account have not been fully distributed as
of December 31, 2007 shall, on or before January 1, 2008 (or such earlier date as the
Administrative Committee prescribes), elect the time of distribution and Form of
Distribution from among the options set forth in this Section for the amounts credited to
his Account effective for distribution events on or after January 1, 2008. Each other
individual who has not executed a Deferred Compensation Agreement under the Plan to be
effective as of January 1, 2008 but who executes a Deferred Compensation Agreement
subsequent to January 1, 2008 to commence deferring part of his Compensation under the Plan
shall, on or before the deadline applicable to such Deferred Compensation Agreement, elect
the time of distribution and Form of Distribution from among the options set forth in this
Section for the amounts credited to his Account. Such election shall remain in effect until
an effective subsequent election regarding time of distribution and/or Form of Distribution
is made pursuant to Section 7.3.

          (b) Participants may elect to receive distribution of their Account from among the
following Forms of Distribution, subject to Section 7.2:

               (1) For a distribution on account of Retirement:

                    (A) a lump sum in cash; or

                    (B) a series of substantially equal quarterly, semi-annual, or annual
installments, in cash, over a period certain which does not exceed 15 years.

               (2) For a distribution on account of Separation from Service for a reason other
than Retirement or for a distribution on account of Disability: a lump sum in cash.

               (3) For a Scheduled Distribution: a lump sum in cash. In a Participant’s
Deferred Compensation Agreement, the Administrative Committee may, but is not
required to, permit a Participant to elect a Scheduled Distribution of either a
percentage of the amounts deferred from Compensation for the Plan Year to which the
Deferred Compensation Agreement relates or a dollar amount of such deferred amounts,
in either case, as adjusted for income, expenses, gains or losses thereon as
provided in Article VI. Amounts subject to the Scheduled Distribution will be
credited to a subaccount within the Participant’s Account. If a Participant
specifies a partial distribution by dollar amount, then in the event

12

 

that the amount
credited to the Participant’s subaccount attributable to deferred Compensation for
such Plan Year is less than that amount at the time of distribution, the Participant
shall be deemed to have elected a full distribution of such subaccount.

          (c) Notwithstanding an election to receive installment payments under subsection
(b)(1)(B) of this Section, if the total amount credited to a Participant’s Account and any
other plans required to be aggregated with this Plan, including all agreements, methods,
programs, or other arrangements with respect to which deferrals of compensation are treated
as having been deferred under a single nonqualified deferred compensation plan under
Treasury Regulations § 1.409A-1(c)(2) as of the date the Participant experiences a
Separation from Service is less than the applicable dollar amount under Code Section
402(g)(1)(B), the Administrative Committee may require a distribution of the entire Account
in the form of a single lump sum payment. Any payment made pursuant to this provision must
result in the termination and liquidation of the entirety of the Participant’s interest
under the Plan and any other plans required to be aggregated with this Plan, including all
agreements, methods, programs, or other arrangements with respect to which deferrals of
compensation are treated as having been deferred under a single nonqualified deferred
compensation plan under Treasury Regulations § 1.409A-1(c)(2). Any determination by the
Administrative Committee to require a distribution pursuant to this Section 7.1(c) must be
evidenced in writing no later than the date of any payment hereunder.

          (d) If no Form of Distribution election is made by a Participant, the Participant’s
Account shall be distributed in a lump sum in cash.

7.2 Time of Distribution.

          (a) A Participant’s Account shall be distributed as soon as administratively
practicable but no later than 60 days after the Participant’s Separation from Service or
Disability; provided, however, that except as provided in Section 7.2(b), the Account of a
Participant who experiences a Separation from Service due to Retirement shall be distributed
in accordance with the Participant’s time of distribution election pursuant to Section
7.2(b).

          (b) A Participant may elect to receive or begin receiving a distribution on account of
Retirement as follows:

               (1) If the Participant elects a lump sum distribution, he can elect that the
distribution be made:

                    (A) as soon as administratively practicable but no later than 60 days
following his Retirement;

                    (B) in January of the year following his Retirement;

                    (C) with respect to an election to change the time of distribution
and/or Form of Distribution under Section 7.3, an elected date

13

 

that is five
years after the date such distribution otherwise would have been made in
accordance with the time of distribution election previously made by the
Participant under clause (A) or (B) of this subsection (b)(1).

               (2) If the Participant elects a distribution in quarterly, semi-annual, or
annual installments following his Retirement, the distribution will commence (A) in
January of the year following his Retirement or (B) with respect to an election to
change the time of distribution and/or Form of Distribution under Section 7.3, an
elected date that is five years after the date such distribution otherwise would
have been made in accordance with the time of distribution provided in clause (A) of
this subsection (b)(2).

               (3) If the Participant elects a Scheduled Distribution, he can elect that the
distribution be made on a specified distribution date after a set number of Plan
Years after the Plan Year with respect to which the Participant’s Deferred
Compensation Agreement relates and the Scheduled Distribution shall be made within
60 days following the specified distribution date. Notwithstanding the foregoing,
if the Participant experiences a Separation from Service (by reason of Retirement or
otherwise) or a Disability or a Change in Control occurs prior to such specified
distribution date, then the Scheduled Distribution election shall not apply and the
Participant’s elections with respect to distribution following Retirement, if
applicable, or the provisions of this Plan related to distribution upon Separation
from Service for reasons other than Retirement, Disability, or
Change in Control, as applicable, shall control the distribution of his
subaccount of his Account to which his Scheduled Distribution amount is credited.

An election pursuant to this Section shall be made by the Participant when the Participant
first enters into a Deferred Compensation Agreement in the manner and form specified by the
Administrative Committee. Such election shall remain in effect until a subsequent election
regarding the timing of distribution becomes effective in accordance with Section 7.3. If
no time of distribution election is made by a Participant, distribution shall be made as
soon as practicable but no later than 60 days after the distribution event.

          (c) Notwithstanding a Participant’s election regarding time of distribution of his
Account or a Scheduled Distribution, in the event that a Participant experiences a
Separation from Service other than due to Retirement or if the Participant incurs a
Disability, the Participant’s Account shall be distributed in a lump sum as soon as
administratively practicable following but no later than 60 days following his Separation
from Service or Disability, as applicable.

          (d) Except as otherwise provided herein, in no event will distribution to a Participant
be made later than the date specified by the Participant in his election to defer
Compensation; provided, however, that payment may be made at a later date for administrative
reasons to the extent permitted by Code Section 409A; provided, further, that the
Participant shall not be permitted, directly or indirectly, to designate the calendar year
of the payment.

14

 

          (e) Any provision of the Plan and any Deferred Compensation Agreement (or other
distribution election) to the contrary notwithstanding, if a Participant is a Specified
Employee as of the date of his or her Separation from Service, no distribution on account of
the Participant’s Separation from Service (including Separation from Service on account of
Retirement) may be made with respect to such Participant before the date that is six months
after the Participant’s Separation from Service (or, if earlier than the end of the
six-month period, the date of the Participant’s death). In such case, any payment that
would be made within such six-month period will be accumulated and paid in a single lump sum
on the earliest business day that complies with the requirements of Code Section 409A.

     7.3
Subsequent Deferral Elections. If permitted by the Administrative Committee, a
Participant may change his election under his Deferred Compensation Agreement regarding the time at
which his Account will be distributed or begin to be distributed, or the Form of Distribution, or
both, after commencing participation in the Plan, provided that (a) no such change shall be
effective until 12 months after the date such modified election is made, (b) no change may be made
less than 12 months prior to the date the distribution is scheduled to be made or, in the case of
installments, 12 months prior to the date the first amount was scheduled to be distributed, and (c)
the distribution to be made pursuant to any such subsequent election is deferred for a period of
not less than five years from the date such distribution would otherwise have been made or, in the
case of installments, five years from the date the first amount was scheduled to be distributed.
For purposes of this subsection, the
date a distribution is scheduled to be made in the case of a distribution period that is longer
than one day shall be the first day of such period. Notwithstanding the foregoing or any other
provision of this Plan to the contrary, the Committee may permit Participants to make new
distribution elections on or before December 31, 2008, with respect to the time and/or form of
distribution in respect of distributions from his or her Account provided that the election applies
only to amounts that would not otherwise be payable in the year in which the election is made and
does not cause an amount to be paid in the year in which the election is made that would not
otherwise be payable in that year.

     7.4 Distribution In the Event of the Participant’s Death. If a Participant dies before the
distribution of his Account has commenced, or before such distribution has been completed, his
designated Beneficiary or Beneficiaries will be entitled to receive the balance or remaining
balance of his Account, plus any amounts thereafter credited to his Account, in a lump sum in cash.
The distribution date upon a Participant’s death shall be the date of the Participant’s death;
provided, however, that distribution may be made at a later date for administrative reasons to the
extent permitted by Code Section 409A; provided, further, that the Beneficiary or Beneficiaries
shall not be permitted, directly or indirectly, to designate the calendar year of the distribution.

          If a Participant is married, his Beneficiary is his spouse at the time of his death. A
Participant may designate a Beneficiary or Beneficiaries other than his spouse, provided that his
spouse either consents to such designation or the Participant establishes to the satisfaction of
the Administrative Committee that the spouse’s consent cannot be obtained because the spouse cannot
be located. Spousal consent must be in writing, must acknowledge the effect of the designation,
and must be witnessed by a Plan representative or a notary public. Any consent by

15

 

a spouse (or the
establishment that a spouse cannot be located) shall be valid only with respect to that spouse.
The designation of a nonspousal Beneficiary or a change in any prior designation of Beneficiary or
Beneficiaries shall be made by giving notice to the Administrative Committee on a form designated
by the Administrative Committee.

          If a Participant is not married, he may designate a Beneficiary or Beneficiaries or change any
prior designation of Beneficiary or Beneficiaries by giving notice to the Administrative Committee
on a form designated by the Administrative Committee.

          If more than one person is designated as the Beneficiary, their respective interests shall be
as indicated on the designation form.

          A copy of the death notice or other sufficient documentation must be filed with and approved
by the Administrative Committee. If upon the death of the Participant there is, in the opinion of
the Administrative Committee, no designated Beneficiary for part or all of the Participant’s
Account, such amount will be paid to his surviving spouse or, if none, to his estate (such spouse
or estate shall be deemed to be the Beneficiary for purposes of the Plan).

     7.5 Withdrawals in the Event of an Unforeseeable Financial Emergency.

          (a) If the Participant experiences an Unforeseeable Financial Emergency, the
Participant may petition the Administrative Committee to receive a partial or full
distribution of his Account. A distribution under this Section shall not exceed the lesser
of the balance in the Participant’s Account at that time or the amount reasonably needed to
satisfy the Unforeseeable Financial Emergency, and shall be made as soon as administratively
practicable after the Administrative Committee makes its determination as to the
Unforeseeable Financial Emergency but no later than 60 days after such date; provided,
however, that the Participant shall not be permitted, directly or indirectly, to designate
the calendar year of the payment. The circumstances that will constitute an Unforeseeable
Financial Emergency will depend upon the facts of each case, but in any case, distribution
may not be made to the extent that such hardship is or may be relieved (i) through
reimbursement or compensation by insurance or otherwise, (ii) by liquidation of the
Participant’s assets, to the extent liquidation of such assets would not itself cause severe
financial hardship, or (iii) by cessation of deferrals under the Plan. No distribution
shall be made to a Participant pursuant to this Section unless such Participant requests
such a distribution in writing and provides to the Administrative Committee such information
and documentation with respect to his or her Unforeseeable Financial Emergency as may be
requested by the Administrative Committee. Approval of such a request shall be made by the
Administrative Committee in its sole discretion.

          (b) In the event that a Participant receives a distribution in connection with an
Unforeseeable Financial Emergency under subsection (a) of this Section, the Administrative
Committee may cancel the deferrals otherwise required under the Deferred Compensation
Agreement of the Participant then in effect.

          (c) This Section shall be interpreted in a manner consistent with the distribution
requirements and cancellation of deferral provisions of Code Section 409A.

16

 

     7.6 Notice to Trustee. The Administrative Committee will notify the Trustee, if
applicable, in writing whenever any Participant or Beneficiary is entitled to receive benefits
under the Plan. The Administrative Committee’s notice shall indicate the form, amount and
frequency of benefits that such Participant or Beneficiary shall receive.

     7.7 Change in Control. Unless a Deferred Compensation Agreement expressly provides
otherwise, in the event of a Change in Control, the amount (or remaining amount) credited to each
Participant’s Account shall become immediately payable and shall be paid in a lump sum in cash
(regardless of the otherwise applicable distribution and timing provided for under a Deferred
Compensation Agreement) as soon as administratively practicable but no later than 60 days following
the Change in Control; provided, however, that payment may be made at a later date for
administrative reasons to the extent permitted by Code Section 409A; provided, further, that the
Participant shall not be permitted, directly or indirectly, to designate the calendar year of the
distribution.

     7.8 Accelerated Distribution Under Certain Circumstances. Notwithstanding any provision of
this Plan or a Deferred Compensation Agreement (or other distribution election) to the contrary,
the Administrative Committee, in its discretion, may accelerate distribution of the amount credited
to a Participant’s Account in accordance with the provisions of Treasury Regulation §
1.409A-3(j)(4)(ii) through (xiv).

     7.9 Delay of Distribution Under Certain Circumstances. Notwithstanding any provision
of this Plan or a Deferred Compensation Agreement (or other distribution election) to the contrary,
distribution of the amount credited to a Participant’s Account may be delayed by the Administrative
Committee under the circumstances described in Treasury Regulation § 1.409A-2(b)(7), provided that
the Administrative Committee treats all distributions to similarly situated Participants on a
reasonably consistent basis.

ARTICLE VIII.

AMENDMENTS, TERMINATION AND ADOPTION BY RELATED EMPLOYERS

     8.1 Amendment by Company. The Company reserves the authority to amend the Plan at any time
and in any manner, except that no amendment shall apply retroactively to alter or change the rights
of Participants or their Beneficiaries with respect to past deferrals, nor shall any such amendment
divest any Participant of any deferral made prior to the amendment. Amendments may be made as
necessary or appropriate to enable the Plan to satisfy the applicable requirements of the Code or
ERISA or to conform the Plan to any change in federal law or to any regulations or rulings
thereunder.

     8.2 Plan Termination. The Company has adopted the Plan with the intention and expectation
that the Plan will be continued indefinitely. However, the Company has no obligation or liability
whatsoever to maintain the Plan for any length of time and may discontinue contributions under the
Plan or terminate the Plan at any time. In the event of such discontinuance, Accounts of
Participants maintained under the Plan at the time of termination shall continue to be governed by
the terms of the Plan until paid out in accordance with the terms of the Plan; provided, however,
that the
Administrative Committee may in its discretion provide

17

 

for accelerated distribution of all amounts
credited to Accounts upon a termination of the Plan in a manner that satisfies the requirements of
Treasury Regulation § 1.409A-3(j)(4)(ix).

     8.3 Adoption by Related Employers. It is contemplated that Related Employers that are not
treated as a single employer with the Company under Section 414(b) or (c) of the Code may adopt
this Plan and thereby become an Employer hereunder. With the consent of the Administrative
Committee, any such entity, whether or not presently existing, may become a party hereto by
appropriate action of its board of directors or noncorporate counterpart. Any Employer may, by
appropriate action of its board of directors or noncorporate counterpart, terminate its
participation in the Plan. Moreover, the Board may, in its discretion, terminate an Employer’s
Plan participation at any time.

ARTICLE IX.

TRUST

     9.1 Establishment of Trust. Benefits hereunder shall constitute an unfunded, general
obligation of the Company. The Company may, but shall not be required to, establish a Trust
between the Company and the Trustee, in accordance with the terms and conditions as set forth in a
separate agreement, under which assets are held, administered and managed, subject to the claims of
the Company’s creditors in the event of the Company’s insolvency, until paid to Participants and
their Beneficiaries as specified in the Plan. Any such Trust shall be treated as a grantor trust
under the Code, and the establishment of any such Trust is not intended to cause Participants to
realize current income on amounts contributed thereto. If a Trust is established under this
Section 9.1, then benefits may be paid by the Company or from the Trust.

     9.2 Funding. Notwithstanding the ability or obligation, as applicable, of the Company to
establish a Trust under this Article IX, or to take other action to create reserves or funds,
benefits under this Plan shall constitute an unfunded and unsecured promise to pay benefits. A
Participant and his Beneficiary(ies) shall be general creditors of the Employers with respect to
the payment of any benefit under this Plan.

ARTICLE X.

PLAN ADMINISTRATION

     10.1 Powers and Responsibilities of the Administrative Committee. The Administrative
Committee has the full power and discretion and the full responsibility to interpret the Plan and
to administer the Plan in all of its details, subject, however, to the applicable requirements of
ERISA. The Administrative Committee’s powers and responsibilities include, but are not limited to,
the following:

          (a) To make and enforce such rules and regulations as it deems necessary or proper for
the efficient administration of the Plan;

          (b) To interpret the Plan, its interpretation thereof in good faith and discretion to
be final and conclusive on all persons claiming benefits under the Plan;

18

 

          (c) To decide all questions concerning the Plan and the eligibility of any person to
participate in the Plan;

          (d) To administer the claims and review procedures specified in Section 10.3;

          (e) To compute the amount of benefits which will be payable to any Participant, former
Participant or Beneficiary in accordance with the provisions of the Plan;

          (f) To determine the person or persons to whom such benefits will be paid;

          (g) To authorize the payment of benefits;

          (h) To comply with the reporting and disclosure requirements of Part 1 of Subtitle B of
Title I of ERISA;

          (i) To appoint such agents (which may include employees of the Company), counsel,
accountants, and consultants as may be required to assist in administering the Plan; and

          (j) To allocate and delegate its responsibilities as it deems appropriate, including
the formation of any other committees as appropriate to the administration of the Plan.

     10.2 Establishment of the Administrative Committee. The Administrative Committee shall be
a committee of one or more members appointed by the Board or an appropriate committee thereof.
Action of such Administrative Committee shall be by a majority of the persons so appointed;
provided, however, that action may be taken by the Administrative Committee at a meeting or without
a meeting by resolution or memorandum signed by all the persons then appointed to the
Administrative Committee. No member of the Administrative Committee shall be entitled to vote or
decide upon any matter pertaining to himself individually, but such matter shall be determined by
the remaining member of the Administrative Committee or by a majority of the remaining members of
the Committee.

          The members of the Administrative Committee and employees, officer and directors of the
Company who are designated as administrators with respect to this Plan shall serve without
compensation for their services as such, but all reasonable expenses of the Administrative
Committee, the members thereof and of such other individuals incurred in the performance of their
duties and responsibilities under this Plan shall be paid by the Company.

     10.3 Claims and Review Procedures.

          (a) Claims Procedure. If any person believes he is entitled to any rights or
benefits under the Plan, such person may file a claim in writing with the Administrative
Committee. If any such claim is wholly or partially denied, the Administrative Committee
will notify such person of its decision in writing. Such notification will contain
(i) specific reasons for the denial, (ii) specific reference to pertinent Plan provisions,
(iii) a description of any additional material or information necessary for such

19

 

person to
perfect such claim and an explanation of why such material or information is necessary, and
(iv) information as to the steps to be taken if the person wishes to submit a request for
review, the time limits applicable to such procedures, and a statement of the person’s
rights following an adverse benefit determination on review, including a statement of his
right to file a lawsuit under ERISA if the claim is denied on appeal. Such notification
will be given within 90 days after the claim is received by the Administrative Committee (or
within 180 days, if special circumstances require an extension of time for processing the
claim, and if written notice of such extension and circumstances is given to such person
within the initial 90-day period). If such notification is not given within such period,
the claim will be considered denied as of the last day of such period and such person may
request a review of his claim.

          (b) Review Procedure. Within 60 days after the date on which a person receives
a notice of denial (or within 60 days after the date on which such denial is considered to
have occurred), such person (or his duly authorized representative) may (i) file a written
request with the Administrative Committee for a review of his denied claim; (ii) review
pertinent documents; and (iii) submit issues and comments in writing. The decision on
review will be made within 60 days after the request for review is received by the
Administrative Committee (or within 120 days, if special circumstances require an extension
of time for processing the request, such as an election by the Administrative Committee to
hold a hearing, and if written notice of such extension and circumstances is given to such
person within the initial 60-day period). The decision on review shall be in written or
electronic notice of the final determination. If the claim is denied in whole or part, such
notice, which shall be in a manner calculated to be understood by the person receiving such
notice, shall include the specific reasons for the decision, the specific references to the
pertinent plan provisions on which the decision is based, that the person is entitled to
receive, upon request and free of charge, reasonable access to, and copies of, all
documents, records, and other information relevant to the claim for benefits, a description
of any voluntary appeal procedures offered by the Plan and the person’s right to obtain
further information about any such procedures, and a statement of the person’s right to file
a lawsuit under ERISA. If the decision on review is not made within such period, the claim
will be considered denied.

          Benefits under this Plan will only be paid if the Administrative Committee decides, in
its discretion, that a person is entitled to them. Moreover, no action at law or in equity
shall be brought to recover benefits under this Plan prior to the date the claimant has
exhausted the administrative process of appeal available under the Plan.

ARTICLE XI.

MISCELLANEOUS

     11.1 Communication to Participants. The Administrative Committee shall communicate the
terms of the Plan to each Eligible Employee as soon as practicable after such Employee is
designated as an Eligible Employee.

20

 

     11.2 Limitation of Rights. Neither the establishment of the Plan and, if applicable, the
Trust, nor any amendment thereof, nor the creation of any fund or account, nor the payment of any
benefits, will be construed as giving to any Participant or other person any legal or equitable
right against the Employer, Administrative Committee (or its delegates) or Trustee, except as
provided herein. The Plan is not an employment contract, and in no event will the terms of
employment or service of any Participant be modified or in any way affected hereby.

     11.3 Spendthrift Provision. Except as otherwise provided in Section 11.4, the benefits
provided hereunder will not be subject to alienation, assignment, garnishment, attachment,
execution or levy of any kind, either voluntarily or involuntarily, and any attempt to cause such
benefits to be so subjected will not be recognized, except to such extent as may be required by
law.

     11.4 Spousal Claims. Subject to the requirements of Code Section 409A, any claim against
benefits under this Plan for child support, spousal maintenance, alimony, property division or
other matrimonial or dependent obligations shall be paid in a single lump sum payment in cash as
soon as administratively practicable after the Administrative Committee (or its delegate) approves
such payment. Except as provided herein, such a claim under this Plan shall be subject to the
Plan’s claims procedures, provisions and restrictions.

     11.5 Withholding. Any taxes required to be withheld from distributions or benefits
hereunder shall be deducted and withheld by the Employer, benefit provider or funding agent.

     11.6 Facility of Payment. In the event the Administrative Committee determines, on the
basis of medical reports or other evidence satisfactory to the Administrative Committee, that the
recipient of any benefit payments under the Plan is incapable of handling his affairs by reason of
minority, illness, infirmity or other incapacity, the Administrative Committee may, but is not
obligated to, provide for disbursement of such payments to such person’s spouse or to any person or
institution designated by a court which has jurisdiction over such recipient or a person or
institution otherwise having the legal authority under State law for the care and control of such
recipient. The receipt by any such person or institution of any such payments therefore, and any
such payment to the extent thereof, shall discharge the liability of the Plan for the payment of
benefits hereunder to such recipient.

     11.7 Overpayment and Underpayment of Benefits. The Administrative Committee may adopt, in
its sole discretion, whatever rules, procedures and accounting practices that comply with Code
Section 409A and are appropriate in providing for the collection of any overpayment of benefits.
To the extent permitted by Code Section 409A, if an overpayment is made to a Participant, spouse,
other Beneficiary or alternate payee, for whatever reason, the Administrative Committee may, in its
sole discretion, withhold payment of any further benefits under the Plan until the overpayment has
been collected or may require repayment of benefits paid under this Plan, without regard to further
benefits to which the person may be entitled and, to the extent deemed necessary by the
Administrative Committee, in its sole discretion, the Administrative Committee may seek repayment
of such overpaid amounts through any and all available legal actions, including, but not limited
to, filing suit in a court with appropriate jurisdiction. If a Participant, spouse, alternate
payee, or other Beneficiary receives an underpayment of benefits, the Administrative Committee
shall direct that immediate payment be

21

 

made to make up for the underpayment; provided, however,
that such payment shall be made in a manner that complies with Code Section 409A.

     11.8 Governing Law. The Plan will be construed, administered and enforced according to
ERISA, and to the extent not preempted thereby, the laws of the State of Texas.

          IN WITNESS WHEREOF, Centex Corporation has executed these presents as evidenced by the
signature of its officer affixed hereto, in a number of copies, all of which shall constitute but
one and the same instrument, which may be sufficiently evidenced by any executed copy hereof, this
15th day of February, 2008, to be effective as of January 1, 2008.

	 	 	 	 	 
	 

	CENTEX CORPORATION
	 	 
	 
	 	 	 	 
	 

	By:  	/s/ Michael S. Albright	 	 
	 

	 	 	 	 
	 

	Name: Michael S. Albright	 	 
	 

	Its: Senior Vice President – Administration	 	 

22

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