Document:

QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 4.1  

 
 

PACCAR INC
  RESTRICTED STOCK AND DEFERRED COMPENSATION PLAN
  FOR NON-EMPLOYEE DIRECTORS    
    

1.     PURPOSE OF THE PLAN 

        The
COMPANY has established this PLAN to provide NON-EMPLOYEE DIRECTORS with financial incentives to promote the success of the COMPANY'S long-term business
objectives, and to encourage qualified persons to accept nominations as a NON-EMPLOYEE DIRECTOR. The PLAN is unfunded and benefits are payable in the form of shares of PACCAR COMMON STOCK
or cash. 

2.     DEFINITIONS 

        (a)   BOARD
OF DIRECTORS means the Board of Directors of PACCAR Inc. 

        (b)   COMMITTEE
means the Executive Committee of the BOARD OF DIRECTORS or any successor to such committee. 

        (c)   COMMON
STOCK means common shares of PACCAR Inc with $1.00 par value and any class of common shares into which such common shares hereafter may be converted. 

        (d)   COMPANY
means PACCAR Inc, a Delaware corporation. 

        (e)   DEFERRED
ACCOUNTS means either the unfunded Stock Unit or Income Account maintained by the COMPANY into which a NON-EMPLOYEE DIRECTOR may defer payment of
his or her cash compensation (retainer and fees) for service as a COMPANY DIRECTOR. 

        (f)    FAIR
MARKET VALUE means the closing price of the COMMON STOCK on NASDAQ reported for the date specified for determining such value. 

        (g)   GRANT
DATE means the date each year that NON-EMPLOYEE DIRECTORS receive a grant of RESTRICTED STOCK. 

        (h)   GRANTEE
means the NON-EMPLOYEE DIRECTOR receiving the RESTRICTED STOCK or his legal representative, legatees, distributees, or alternate payees, as the case
may be. 

        (i)    MANDATORY
RETIREMENT means retirement as a DIRECTOR at age seventy-two (72) or at such other age as may be specified in the bylaws for the BOARD OF
DIRECTORS in effect at the time of a NON-EMPLOYEE DIRECTOR'S TERMINATION. 

        (j)    NON-EMPLOYEE
DIRECTOR means a member of the COMPANY'S BOARD OF DIRECTORS who is not a current employee of the COMPANY. 

        (k)   PLAN
means this PACCAR Inc Restricted Stock and Deferred Compensation Plan for Non-Employee Directors as it may be amended from time to time, or any
successor plan that the COMMITTEE or BOARD OF DIRECTORS may adopt from time to time with respect to the grant of DIRECTOR RESTRICTED STOCK or other stock-based grants. 

        (l)    RESTRICTED
STOCK means COMMON STOCK that may not be sold, transferred, or otherwise disposed of by the GRANTEE except under such circumstances as may be specified by the
COMMITTEE. 

        (m)  TERMINATION
occurs when a NON-EMPLOYEE DIRECTOR ceases to be a member of the BOARD OF DIRECTORS. 

3.     PARTICIPATION 

        Each
NON-EMPLOYEE DIRECTOR of the COMPANY shall be a participant in the PLAN during his tenure as a DIRECTOR. 

4.     AWARDS OF RESTRICTED STOCK 

        (a)   On
January 1, 2004 and on the first business day of each calendar year thereafter for the duration of the PLAN (the GRANT DATE), each person who is a
NON-EMPLOYEE DIRECTOR shall receive a grant of RESTRICTED STOCK in an amount to be determined in accordance with the following formula: The number of shares of RESTRICTED STOCK granted to
each NON-EMPLOYEE DIRECTOR each calendar year shall be determined by (i) dividing sixty thousand dollars ($60,000) by the FAIR MARKET VALUE of the COMMON STOCK on the GRANT DATE,
and (ii) rounding the resulting number up to the nearest whole share. New PACCAR non-employee directors elected during a year are entitled to an award of restricted stock. The
number of shares of restricted stock granted for their first year of service shall be calculated as follows: (a) $60,000 shall be prorated for the number of calendar quarters of service as a
PACCAR director; (b) that sum shall be divided by the closing price of PACCAR Common Stock on the date the director's board service becomes effective (the Grant Date); (c) the resulting
number shall be rounded up to the nearest whole share. 

        (b)   Shares
of RESTRICTED STOCK shall become unrestricted on the third anniversary of the applicable GRANT DATE subject to the provisions of Section 10. Shares of
RESTRICTED STOCK may not be resold or otherwise transferred by a GRANTEE until such shares become unrestricted in accordance with the provisions of this Section 4(b). 

        (c)   Each
RESTRICTED STOCK grant shall be evidenced by a written RESTRICTED STOCK GRANT AGREEMENT that shall be executed by the GRANTEE and an authorized COMPANY
representative which shall indicate the date of the RESTRICTED STOCK award, the number of shares of COMMON STOCK awarded, and contain such terms and conditions as the COMMITTEE shall determine with
respect to such RESTRICTED STOCK grant consistent with the PLAN. 

5.     SHARES OF STOCK SUBJECT TO THE PLAN 

        There
shall be reserved for use under the PLAN (subject to the provisions of Section 8 hereof) a total of 487,500 shares of COMMON STOCK, which shares may be authorized but
unissued shares of COMMON STOCK, treasury shares, or issued shares of COMMON STOCK that shall have been reacquired by the COMPANY. 

6.     DIVIDEND, VOTING, AND OTHER SHAREHOLDER RIGHTS 

        Except
as otherwise provided in the PLAN, each GRANTEE shall have all of the rights of a shareholder of the COMPANY with respect to all outstanding shares of RESTRICTED STOCK registered
in his name, including the right to receive dividends and other distributions paid or made with respect to such shares and the right to vote such shares. 

7.     DEFERRAL OF COMPENSATION 

        In
addition to the grant of RESTRICTED STOCK a NON-EMPLOYEE DIRECTOR may elect, on or before December 31 of any year, to defer payment of at least 25% of the cash
compensation to be paid to the NON-EMPLOYEE DIRECTOR for services as a COMPANY director during the following calendar year. Before the term of a new NON-EMPLOYEE DIRECTOR
begins, he may elect to defer payment for the remainder of the first calendar year of his term. 

        Each
participating NON-EMPLOYEE DIRECTOR may elect to have all or a portion of his cash compensation placed into one or both of two unfunded accounts maintained by the
COMPANY (hereafter DEFERRED ACCOUNTS). 

        (a)    Stock Unit Account.    The initial account balance will be equal to the number of shares of COMMON STOCK that
the amount deferred could have purchased at the FAIR MARKET VALUE on the date the NON-EMPLOYEE DIRECTOR'S cash compensation is payable. Thereafter any dividends earned will be treated as
if those dividends had been invested in additional shares of COMMON STOCK at the FAIR MARKET VALUE on the date the dividend is payable. Payment from the PACCAR Stock Unit Account will be in shares of
COMMON STOCK from those authorized under Section 5 of this PLAN. Fractional shares will be paid in cash. 

        (b)    Income Account.    Interest shall accrue on the balance in the account commencing as of the date the
NON-EMPLOYEE DIRECTOR'S cash compensation is payable. Interest is credited at a rate equal to the simple combined average of the monthly Aa Industrial Bond yield averages for the
immediately preceding calendar quarter as reported in Moody's Bond Record. Interest is compounded quarterly. 

8.     ADJUSTMENTS TO THE NUMBER OR VALUE OF SHARES OF COMMON STOCK 

        If
there are any changes in the number or value of shares of COMMON STOCK by reason of stock dividends, stock splits, reverse stock splits, recapitalizations, mergers, consolidations, or
other events that increases or decreases the number or value of issued and outstanding shares of COMMON STOCK, the BOARD OF DIRECTORS or COMMITTEE may make such adjustments as it shall deem
appropriate, in order to prevent dilution or enlargement of rights. This provision does not, however, authorize the delivery of a fractional share of COMMON STOCK under the PLAN. 

9.     NON-TRANSFERABILITY 

        Shares
of RESTRICTED STOCK and any DEFERRED ACCOUNTS shall not be assigned, attached, or otherwise subject to any creditor's process or transferred by the GRANTEE except by will or the
laws of descent and distribution, or pursuant to a trust created for the benefit of the NON-EMPLOYEE DIRECTOR or his family or pursuant to a qualified domestic relations order as defined
by the Internal Revenue Code, Title I of ERISA or the rules thereunder. The restrictions set forth in Section 4(b) shall apply to the shares of RESTRICTED STOCK in the hands of the trustee or
NON-EMPLOYEE DIRECTOR'S former spouse. 

10.   TERMINATION OF STATUS AS A NON-EMPLOYEE DIRECTOR 

        (a)   In
the event of a TERMINATION by reason of MANDATORY RETIREMENT, disability, or death all shares of RESTRICTED STOCK held by the GRANTEE shall become fully vested,
notwithstanding the provisions of Section 4(b) hereof, and the GRANTEE (or the GRANTEE'S estate or a person who acquired the shares of RESTRICTED STOCK by bequest or inheritance) shall have the
right to resell or transfer such shares at any time. 

        (b)   In
the event of a TERMINATION for any reason other than those specified in subparagraph (a) above, any shares of RESTRICTED STOCK granted hereunder shall be
forfeited and the GRANTEE shall return to the COMPANY for cancellation any stock certificates representing such forfeited shares which shall be deemed to be canceled and no longer outstanding as of
the date of TERMINATION; and from and after the date of TERMINATION, the GRANTEE shall cease to be a shareholder with respect to such forfeited shares and shall have no dividend, voting, or other
rights with respect thereto. 

        (c)   Upon
TERMINATION for any reason, any balance in the deferred Stock Unit Account in Section 7(a) will be paid in shares of COMMON STOCK. Payment from the Income
Account in Section 7(b) will be paid in a lump sum or, if the NON-EMPLOYEE DIRECTOR elects, in quarterly, semi-annual, or annual installments over a period not in excess
of 15 years. 

        (d)   Notwithstanding
the provisions of subparagraphs (a) through (c) above, the BOARD OF DIRECTORS may, in its sole discretion, establish different terms and
conditions pertaining to the effect of TERMINATION to the extent permitted by applicable federal and state law. 

11.   CHANGE IN CONTROL 

        Upon
the occurrence of a change in control of the Company, all time periods relating to shares of RESTRICTED STOCK becoming unrestricted shall be accelerated so that all such shares
immediately become unrestricted. Any DEFERRED ACCOUNTS will be payable within 30 days of the change in control in a lump sum. 

12.   PLAN ADMINISTRATION 

        The
PLAN will be administered by the Executive Committee of the BOARD OF DIRECTORS (the COMMITTEE). The COMPANY will pay all costs of administration of the PLAN. The COMMITTEE shall have
sole discretion to interpret the PLAN, amend and rescind rules relating to its implementation and make all determinations necessary for administration of the PLAN. Any determination, decision, or
action of the COMMITTEE in connection with the interpretation, administration, or application of the PLAN shall be final, conclusive, and binding on all persons. The COMMITTEE may employ consultants
or other persons and rely upon their advice. All elections taken and all determinations made by the COMMITTEE in good faith shall be final and binding upon all GRANTEES, the COMPANY, and all
interested persons. No member of the COMMITTEE shall be personally liable for any action, determination, or interpretation made in good faith with respect to the PLAN. 

        The
COMMITTEE may make such amendments or modifications in the terms and conditions of any grant of RESTRICTED STOCK as it may deem advisable, or cancel or annul any grant of RESTRICTED
STOCK, provided, however, that no such amendment, modification, cancellation or annulment may, without the consent of the GRANTEE, adversely affect his rights with respect to such grant. 

13.   TAX WITHHOLDING 

        To
the extent required by law, the GRANTEE may make such arrangements satisfactory to the COMPANY to satisfy any tax withholding or employment tax obligations resulting from the grant of
RESTRICTED STOCK. 

14.   AMENDMENT AND TERMINATION OF THE PLAN 

        The
BOARD OF DIRECTORS or the COMMITTEE may at any time suspend, terminate, modify or amend the PLAN in any respect; provided, however, shareholder approval of any PLAN amendment shall
be obtained only if required by law or the requirements of any stock exchange on which the COMMON STOCK is listed or quoted. No suspension, termination, modification, or amendment of the PLAN may,
without the consent of the GRANTEE, adversely affect his rights with respect to the RESTRICTED STOCK granted to such GRANTEE or his DEFERRED ACCOUNTS. 

15.   BENEFICIARY DESIGNATION 

        Each
NON-EMPLOYEE DIRECTOR may designate a beneficiary for each outstanding grant of RESTRICTED STOCK and for payment of his DEFERRED ACCOUNTS in the event of his death. If
no beneficiary is designated or the beneficiary does not survive the NON-EMPLOYEE DIRECTOR, the award shall be made to the NON-EMPLOYEE DIRECTOR'S surviving spouse or, if there
is none, to his estate. 

16.   EFFECTIVE DATE OF THE PLAN AND DURATION 

        This
PLAN, as amended, will become effective January 1, 2004 upon approval by the shareholders of the COMPANY and will remain in effect until terminated by the COMMITTEE or the
BOARD OF DIRECTORS. 

QuickLinks

PACCAR INC RESTRICTED STOCK AND DEFERRED COMPENSATION PLAN FOR NON-EMPLOYEE DIRECTORSQuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.1  

STATE STREET CORPORATION

225 Franklin Street

Boston, MA 02110  

  
 

    Notification of Grant of Performance Award    
    

March 3,
2004 

	Re:
	Performance Award

Dear                        :

This
letter shall serve as an agreement between you and State Street Corporation (the "Company") setting forth the terms and conditions relating to the Performance Award granted to you under the
Company's 1997 Equity Incentive Plan, as amended (the "Plan"), if certain performance targets are met during designated performance periods. 

1.     Grant of Performance Award.

You
have been granted an Award consisting of            units (a "Performance Award") entitling you to payment as described below upon satisfaction of the terms and conditions of this Award. The
Award has been granted with respect to the performance period (the "Performance Period") commencing January 1, 2004 and ending on December 31, 2005 (the "Maturity Date"). 

2.     Performance Targets: Committee Certification.

Your
Performance Award shall be earned as follows: 

(a)
Earnings Per Share (EPS). Seventy percent (70%) of the Performance Awards granted (            ) shall be earned based upon the Company's fully diluted aggregated earnings per share (EPS),
as
reported, during the Performance Period. 

(b)
Return on Equity (ROE). Thirty percent (30%) of the Performance Awards granted (            ) shall be based on the Company's average return on common stockholders' equity (ROE), as reported,

during the Performance Period. 

The
specific EPS and ROE targets were established by the Committee on March 3, 2004 and are attached. Achievement of the specific performance target(s) will be a condition to the earning of any
payment under this Award. The earning of the Award is also conditioned upon Committee certification, following the close of the Performance Period, that the specific performance targets have been
achieved. 

3.     Form of Payment.

(a)
Each Performance Award is payable in cash, on or before the March 31st next following the end of the Performance Period, in an amount equal to the fair market value of one share of the
Company's common stock, $1.00 par value (the "Common Stock"). For this purpose, fair market value shall mean the average of the closing high and low prices of the Common Stock on the ten trading days
preceding the end of the Performance Period. 

(b)
Upon your request made prior to January 1st of the year of the end of the Performance Period, payment under this Award may be deferred on such terms and for such period as the Committee may
approve. The deferred amount will be credited to the Restoration & Voluntary Deferral Plan. 

4.     Non-Transferability, Etc.

The
Award, including Performance Awards represented thereby, shall not be transferable otherwise than by will or the laws of descent and distribution. 

5.     Termination of Employment

	(a)
	No
amount shall be paid in respect of the Award in the event that you cease to be employed by the Company prior to the end of the Performance Period, except as the Committee may
otherwise determine.

	(b)
	Any
payment under the Award pursuant to an exercise by the Committee of its discretion under (a) above will take into account the time between the date your employment so
terminated and the end of the Performance Period. In addition, payment to you of any unearned Performance Awards after termination of your employment otherwise than by reason of your death shall be
subject to the conditions that until the Maturity Date you shall (i) not engage whether directly or indirectly, in any manner or capacity as advisor, principal, agent, partner, officer,
director, employee, member of any association, or otherwise, in any business or activity which is at the time competitive with any business or activity conducted by the Company or any of its direct or
indirect subsidiaries, and (ii) be available at reasonable times for consultations at the request of the Company's management with respect to phases of the business with which you were actively
connected during your employment. In the event that either of the above conditions is not fulfilled, you shall receive no payment of the unearned Performance Award. Any determination by the Board of
Directors [Committee] that you are, or have engaged in a competitive business or activity as aforesaid or not have been available for consultations as aforesaid shall be
conclusive. Notwithstanding the foregoing this paragraph 5(c) shall be inapplicable following a Change of Control. 

6.     Acceleration of Performance Award.

Notwithstanding
anything in this Agreement to the contrary, in the event of a Change of Control occurring prior to the Maturity Date, you shall be entitled at the time of such Change of Control to
receive a cash payment per Performance Award equal to the adjusted fair market value of a share of the Common Stock. For purposes of the preceding sentence, "adjusted fair market value" shall mean the
higher of the (i) the highest average of the reported daily high and low prices per share of the Common Stock during the 60 day period prior to the first date of actual knowledge by the
Board of Directors of a Change of Control, and (ii) if the Change of Control is the result of a transaction or series of transactions described in Section 7.4(b)(1) or (3) of the
Plan, the highest price per share of the Common Stock paid in such transaction series of transactions (which in the case of a transaction described in Section 7.4(b)(1) of the Plan shall be the
highest price per share of the Common Stock as reflected in a Schedule 13D filed by the person having made the acquisition. 

7.     Changes in Capitalization or Corporate Structure.

The
aggregate number of Performance Awards reflected in the Award shall be appropriately adjusted pursuant to Section 8.6 of the Plan to reflect transactions, events or circumstances described
in said Section 8.6. 

8.     Amendments to Performance Units.

Subject
to the specific limitations set forth in the Plan, the Board of Directors [Committee] may at any time suspend or terminate any rights or obligations relating to
Performance Awards prior to their Maturity Date without your consent. 

9.     Compliance with Section 162(m).

The
Committee shall exercise its discretion with respect to this award in all cases so as to preserve the deductibility of payments under the Award against disallowance by reason of
Section 162(m) of the Internal Revenue Code of 1986, as amended (the "Code). 

10.   Provisions of the Plan.

The
provisions of the Plan are incorporated herein by reference, and all terms not other wise defined herein shall have the meaning given to them in the Plan. In the event of any conflict between the
provisions of this Agreement and the provisions of the Plan, the provisions of the Plan shall control. You acknowledge that you have received a copy of the Plan [and a copy of the
Prospectus for the Plan]. 

If
the Award and the foregoing terms and conditions are acceptable to you, please sign the enclosed counterpart of this letter and return the same to the undersigned. 

	 	 	Very Truly Yours,
	

 	
 	

STATE STREET CORPORATION
	

 	
 	

By	

 Boon Ooi

Senior Vice President

The
undersigned hereby accepts the Award and the Performance Awards represented thereby on the terms and subject to the conditions set forth above. 

	

 	
 	

 	

	

Dated:	
 	

QuickLinks

Notification of Grant of Performance Award

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00073-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00073-of-00352.parquet"}]]