Document:

EX-10.3

 Exhibit 10.3 

EXECUTION VERSION 

EMPLOYEE MATTERS AGREEMENT 

THIS EMPLOYEE MATTERS AGREEMENT is made as of December 14, 2022 by and between Fortune Brands Home & Security, Inc., a Delaware
corporation (“Fortune Brands”), and MasterBrand, Inc., a Delaware corporation (“Cabinets”), and, as of the date hereof, a wholly-owned subsidiary of Fortune Brands. 

WHEREAS, Fortune Brands and Cabinets have entered into a Separation and Distribution Agreement dated as of December 14, 2022 (the
“Distribution Agreement”) pursuant to which Fortune Brands will distribute on a pro rata basis to the holders of shares of Fortune Brands’ common stock, par value $0.01 per share
(“Fortune Brands Shares”), without any consideration being paid by the holders of such Fortune Brands Shares, all of the outstanding shares of Cabinets common stock, par value $0.01 per share (“Cabinets
Shares”), owned by Fortune Brands as of the Distribution Date (as defined in the Distribution Agreement); and 
 WHEREAS, in
connection with the Distribution, Fortune Brands and Cabinets desire to enter into this Employee Matters Agreement. 
 NOW, THEREFORE, in
consideration of the mutual promises contained herein and in the Distribution Agreement, the parties hereto agree as follows: 
 Article
I. DEFINITIONS 
 Section 1.01 Definitions. Unless otherwise defined herein, each capitalized term
shall have the meaning specified for such term in the Distribution Agreement. As used in this Agreement: 
  

	 	(a)	 “Adjusted Fortune Brands Option” has the meaning set forth in
Section 6.01(b) of this Agreement. 

  

	 	(b)	 “Adjusted Fortune Brands RSU Award” has the meaning set forth in
Section 6.02(b) of this Agreement. 

  

	 	(c)	 “Agreement” means this Employee Matters Agreement together with
those parts of the Distribution Agreement referenced herein and all schedules hereto and all amendments, modifications and changes hereto and thereto. 

  

	 	(d)	 “Business Employee” means (i) each individual who immediately
prior to the Distribution is employed by a Cabinets Party, including each Fortune Brands Transferred Employee, but excluding any Cabinets Transferred Employee, and (ii) each former employee of a Fortune Brands Party or a Cabinets Party whose
last employment with any of such parties prior to termination was with a Cabinets Party. 

  

	 	(e)	 “Cabinets” has the meaning set forth in the recitals of this Agreement.

  

	 	(f)	 “Cabinets DCP” has the meaning set forth in Section 3.04(a) of this Agreement.

  

	 	(g)	 “Cabinets Employee” means a person who is employed by a Cabinets Party immediately
following the Distribution. 

  

	 	(h)	 “Cabinets Pension Plan” means the MasterBrand Cabinets, Inc. Pension Plan.

  

	 	(i)	 “Cabinets Post-Distribution Stock Price” means the per share price
of Cabinets Shares immediately after the Distribution, which shall be equal to the volume weighted average price of Cabinets common stock on the trading day immediately following the Distribution Date. 

	 	(j)	 “Cabinets RSP” has the meaning set forth in Section 3.01(a) of this Agreement.

  

	 	(k)	 “Cabinets Service Provider” means (i) each Cabinets Employee, and
(ii) each other individual who is engaged to provide services to a Cabinets Party as an individual independent contractor, consultant or director (and not engaged to provide services to a Fortune Brands Party) as of immediately following the
Distribution. 

  

	 	(l)	 “Cabinets Supplemental Plan” means the MasterBrand Cabinets, Inc. Supplemental
Retirement Plan. 

  

	 	(m)	 “Cabinets Transferred Employee” means each employee of a Cabinets
Party listed on Exhibit A hereto whose employment shall be transferred to a Fortune Brands Party immediately prior to the Distribution Date. 

  

	 	(n)	 “Cabinets Union Savings Plan” means the MasterBrand Cabinets, Inc. Union Employees
Savings Plan. 

  

	 	(o)	 “Cafeteria Plan” means any plan or portion of a plan which is intended to be a
cafeteria plan under Section 125 of the Code or is a flexible spending account. 

  

	 	(p)	 “COBRA” has the meaning set forth in Section 4.04 of this Agreement.

  

	 	(q)	 “COBRA Participants” has the meaning set forth in Section 4.04 of
this Agreement. 

  

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

  

	 	(s)	 “Compensation Committee” means the Compensation Committee of the
Fortune Brands Board of Directors or the Compensation Committee of the Cabinets Board of Directors, as the case may be. 

  

	 	(t)	 “DB Master Trust” has the meaning set forth in Section 3.02 of
this Agreement. 

  

	 	(u)	 “DC Master Trust” has the meaning set forth in Section 3.01(b)
of this Agreement. 

  

	 	(v)	 “Director Deferred Shares” has the meaning set forth in
Section 3.04(b) of this Agreement. 

  

	 	(w)	 “Distribution Agreement” has the meaning set forth in the recitals
of this Agreement. 

  

	 	(x)	 “ERISA” means the Employee Retirement Income Security Act of 1974,
as amended. 

  

	 	(y)	 “Former Cabinets Employee” means an individual who (i) experienced a
termination of employment with a Cabinets Party on or prior to the Distribution Date, and (ii) has not been rehired by any Cabinets Party or Fortune Brands Party as of the Distribution Date. 

 

	 	(z)	 “Fortune Brands” has the meaning set forth in the recitals of this
Agreement. 

  

	 	(aa)	 “Fortune Brands DCP” means the Fortune Brands Home & Security,
Inc. Deferred Compensation Plan. 

  

	 	(bb)	 “Fortune Brands Director DCP” means the Fortune Brands Home &
Security, Inc. Directors’ Deferred Compensation Plan. 

  
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	 	(cc)	 “Fortune Brands LTIPs” means the Fortune Brands Home &
Security, Inc. 2011 Long-Term Incentive Plan, the Fortune Brands Home & Security, Inc. 2013 Long-Term Incentive Plan, and the Fortune Brands Home & Security, Inc. 2022 Long-Term Incentive Plan. 

 

	 	(dd)	 “Fortune Brands Non-ERISA Benefit
Arrangement” means any Non-ERISA Benefit Arrangement sponsored or maintained by a Fortune Brands Party. 

 

	 	(ee)	 “Fortune Brands Options” means stock options granted under the
Fortune Brands LTIPs. 

  

	 	(ff)	 “Fortune Brands Plan” means any Pension Plan, Cafeteria Plan or Welfare Plan sponsored
or maintained by a Fortune Brands Party. 

  

	 	(gg)	 “Fortune Brands Post-Distribution Stock Price” means the per share
price of Fortune Brands Shares immediately after the Distribution, which shall be equal to the volume weighted average price of Fortune Brands Shares on the trading day immediately following the Distribution Date. 

 

	 	(hh)	 “Fortune Brands Pre-Distribution Stock
Price” means the per share price of Fortune Brands Shares immediately prior to the Distribution, which shall be equal to the volume weighted average price of Fortune Brand Shares on the trading day immediately prior to the
Distribution Date. 

  

	 	(ii)	 “Fortune Brands RSUs” means restricted stock units granted under any
of the Fortune Brands LTIPs, including any restricted stock unit which has been deferred under the Fortune Brands DCP. 

  

	 	(jj)	 “Fortune Brands Shares” has the meaning set forth in the recitals of
this Agreement. 

  

	 	(kk)	 “Fortune Brands SRP Participant” has the meaning set forth in Section 3.03 of this
Agreement. 

  

	 	(ll)	 “Fortune Brands Supplemental Plan” means the Fortune Brands
Home & Security, Inc. Supplemental Retirement Plan. 

  

	 	(mm)	 “Fortune Brands Transferred Employee” means each employee of a
Fortune Brands Party or any of its Affiliates (other than Cabinets or any Cabinets Subsidiary) listed on Exhibit B hereto whose employment shall be transferred to a Cabinets Party immediately prior to the Distribution Date.

  

	 	(nn)	 “Fortune Brands Welfare Plans” means a Welfare Plan sponsored or
maintained by a Fortune Brands Party. 

  

	 	(oo)	 “Intrinsic Value” means (a) in the case of a Fortune Brands
Option immediately prior to the Distribution, the difference between the Fortune Brands Pre-Distribution Stock Price and the per share exercise price of such Fortune Brands Option, (b) in the case of an
Adjusted Fortune Brands Option immediately after the Distribution, the difference between the Fortune Brands Post-Distribution Stock Price and the per share exercise price of such Adjusted Fortune Brands Option and (c) in the case of a
Substitute Cabinets Option immediately after the Distribution, the difference between the Cabinets Post-Distribution Stock Price and the per share exercise price of such Substitute Cabinets Option, in each case multiplied by the number of Fortune
Brands Shares or Cabinets Shares, as the case may be, subject to such option. 

  
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	 	(pp)	 “Invoiced Amount” has the meaning set forth in the Transition Services
Agreement. 

  

	 	(qq)	 “IRS” means the Internal Revenue Service. 

 

	 	(rr)	 “Non-ERISA Benefit
Arrangement” means any contract, agreement, policy, practice, program, plan, trust or arrangement, other than a Pension Plan, Cafeteria Plan or Welfare Plan, providing for benefits, perquisites or compensation of any nature
to any Cabinets Employee, or to any family member, dependent or beneficiary of any such Cabinets Employee, including tuition reimbursement, supplemental unemployment, vacation, sick, personal or bereavement days, holidays, retirement, deferred
compensation, profit sharing, bonus, stock-based compensation or other forms of incentive compensation. 

  

	 	(ss)	 “Pension Plan” means any pension plan as defined in
Section 3(2) of ERISA. 

  

	 	(tt)	 “Plan Effective Date” means January 1, 2023. 

 

	 	(uu)	 “Record Date” means December 2, 2022. 

 

	 	(vv)	 “Transition Services Agreement” means that Transition Services Agreement,
dated as of the date hereof, by and between Fortune Brands and Cabinets. 

  

	 	(ww)	 “Welfare Plan” means any employee welfare plan as defined in
Section 3(1) of ERISA (other than a plan or any portion of a plan intended to be a cafeteria plan under Section 125 of the Code or is a flexible spending account). 

Section 1.02 Rules of Construction. In this Agreement, unless the context clearly indicates otherwise: 

 

	 	(a)	 words used in the singular include the plural and words used in the plural include the singular;

  

	 	(b)	 reference to any Person includes such Person’s successors and assigns but, if applicable, only if such
successors and assigns are permitted by this Agreement; 

  

	 	(c)	 reference to any Person’s “Affiliates” shall be deemed to mean such Person’s Affiliates
following the Distribution; 

  

	 	(d)	 reference to any gender includes the other gender; 

 

	 	(e)	 the words “include,” “includes” and “including” shall be deemed to be followed by
the words “without limitation;” 

  

	 	(f)	 references to any Article, Section or schedule means such Article or Section of, or such schedule to, this
Agreement, as the case may be; 

  

	 	(g)	 the words “herein,” “hereunder,” “hereof,” “hereto” and words of
similar import shall be deemed references to this Agreement as a whole and not to any particular Section or other provision hereof; 

  

	 	(h)	 reference to any agreement, instrument or other document means such agreement, instrument or other document as
amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and by this Agreement; 

  

	 	(i)	 reference to any law (including statutes and ordinances) means such law (including all rules and regulations
promulgated thereunder) as amended, modified, codified or reenacted, in whole or in part, and in effect at the time of determining compliance or applicability; 

  
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	 	(j)	 relative to the determination of any period of time, “from” means “from and including,”
“to” means “to but excluding” and “through” means “through and including;” 

  

	 	(k)	 accounting terms used herein shall have the meanings ascribed to them by Fortune Brands and its Subsidiaries,
including Cabinets, in its and their internal accounting and financial policies and procedures in effect immediately prior to the date of this Agreement; 

  

	 	(l)	 if there is any conflict between the provisions of the Distribution Agreement and this Agreement, the
provisions of this Agreement shall control with respect to the subject matter hereof; if there is any conflict between the provisions of the body of this Agreement and any schedule hereto, the provisions of the body of this Agreement shall control
unless explicitly stated otherwise in such schedule; 

  

	 	(m)	 titles to Articles and headings of Sections contained in this Agreement have been inserted for convenience of
reference only and shall not be deemed to be a part of or to affect the meaning or interpretation of this Agreement; 

  

	 	(n)	 any portion of this Agreement obligating a party to take any action or refrain from taking any action, as the
case may be, shall mean that such party shall also be obligated to cause its relevant Subsidiaries to take such action or refrain from taking such action, as the case may be; 

 

	 	(o)	 unless otherwise specified in this Agreement, all references to dollar amounts herein shall be in respect of
lawful currency of the United States; and 

  

	 	(p)	 this Agreement shall be construed without regard to any presumption or rule requiring construction or
interpretation against the party drafting an instrument or causing any instrument to be drafted. 

 Article II.
ASSIGNMENT OF EMPLOYEES 
 Effective immediately prior to the Distribution Date, (i) the employment of the Fortune Brands
Transferred Employees by the Fortune Brands Parties shall be transferred to, and thereupon the employment of the Fortune Brands Transferred Employees shall commence with, a Cabinets Party; and (ii) the employment of the Cabinets Transferred
Employees by the Cabinets Parties shall be transferred to, and thereupon the employment of the Cabinets Transferred Employees shall commence with, a Fortune Brands Party. If it is determined after the Distribution Date that any employees were not
properly assigned and transferred to the appropriate employer prior to the Distribution Date or that it is necessary or appropriate to assign and transfer an employee performing services pursuant to the Transition Services Agreement to the other
group, the Parties shall cooperate in good faith to effect such assignment and transfer after the Distribution Date. Notwithstanding anything to the contrary contained herein, nothing in this Agreement shall create any obligation on the part of any
Fortune Brands Party or Cabinets Party to continue the employment of any employee for any definite period following the Distribution Date or to change the employment status of any employee from “at will.” 

  
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 Article III. PENSION, RETIREMENT AND DEFERRED COMPENSATION PLANS 

Section 3.01 Defined Contribution Plans. 
  

	 	(a)	 Establishment of Cabinets Retirement Savings Plan. On or before, but effective as of the Plan
Effective Date, Cabinets shall adopt, establish and maintain a 401(k) retirement savings plan and trust for the benefit of eligible employees of the Cabinets Parties, which is intended to be qualified under Section 401(a) of the Code and exempt
from federal income tax under Section 501(a) of the Code (the “Cabinets RSP”). As soon as practicable after the adoption of the Cabinets RSP, Cabinets shall, to the extent the Cabinets RSP and related trust are not
eligible to rely upon an existing favorable IRS opinion or advisory letter to such effect, submit an application for determination to the IRS for a determination that the Cabinets RSP is qualified under Section 401(a) of the Code and that the
related trust is exempt from federal income tax under Section 501(a) of the Code, and shall take any actions not inconsistent with Cabinet’s other general commitments contained in this Agreement and make any amendments necessary to receive
such determination. As of the Plan Effective Date, each Cabinets Employee employed by the Cabinets Parties who was, immediately prior to the Distribution, eligible to participate in the Fortune Brands Home & Security Retirement Savings Plan
or the Fortune Brands Home & Security Hourly Retirement Savings Plan shall be eligible to participate in the Cabinets RSP, which shall recognize the service of such Cabinets Employee with Fortune Brands and its Subsidiaries in accordance
with Section 7.05. 

  

	 	(b)	 Transfer from Fortune Brands Trust. On or about the Plan Effective Date , Fortune Brands shall
cause the Fortune Brands Home & Security, Inc. Master Defined Contribution Trust (the “DC Master Trust”) to transfer to the trust established under the Cabinets RSP assets having a value as of the applicable
valuation date that is equal to the value of the account balances of, and liabilities with respect to, all Business Employees with an account balance under the Fortune Brands Home & Security Retirement Savings Plan or the Fortune Brands
Home & Security Hourly Employee Retirement Savings Plan as of such valuation date. In addition, on or about the Plan Effective Date, a pro rata share of all unallocated amounts shall be transferred from the DC Master Trust to the trust
established by Cabinets under the Cabinets RSP, determined based upon the ratio of the sum of the account balances of the Business Employees described in the immediately preceding sentence as of the applicable valuation date to the sum of all
account balances held in the DC Master Trust as of such valuation date. Such transferred assets shall be in cash or in kind, including shares of securities, promissory notes evidencing outstanding plan loans, Fortune Brands Shares or Cabinets
Shares, and such transfer shall be made in accordance with Section 414(l) of the Code. Liabilities under any qualified domestic relations orders (as defined in Section 414(p) of the Code) received with respect to any accounts transferred
to the Cabinets RSP shall be transferred to and assumed by the Cabinets RSP at the time such assets attributable to such accounts are transferred. Cabinets shall assume and thereafter be solely responsible for all then existing and future employer
liabilities related to such Business Employees under the Cabinets RSP and the administration thereof and, except as provided in Section 3.01(a), the Fortune Brands Parties shall have no liability whatsoever therefor. 

  
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	 	(c)	 Cabinets Union Savings Plan. Following the Distribution Date, one of the Cabinets Parties shall continue
to be the plan sponsor of the Cabinets Union Savings Plan. Following the Distribution Date, the Fortune Brands Parties shall have no liability or obligation with respect to the Cabinets Union Savings Plan or any participants or former participants
in the Cabinets Union Savings Plan with respect to their participation therein 

 Section 3.02 Defined
Benefit Pension Plans. Following the Distribution Date, one of the Cabinets Parties shall continue to be the plan sponsor of the Cabinets Pension Plan. Prior to the Distribution Date, (i) the Cabinets Parties shall establish one or more
trusts to be a source of providing benefits under the Cabinets Pension Plan and (ii) Fortune Brands shall cause the assets held in the Fortune Brands Home & Security, Inc. Master Retirement Trust (the “DB Master
Trust”) and allocated to the subaccounts for the Cabinets Pension Plan to be transferred to the trust established by the Cabinets Parties. Following the date of the transfer contemplated by the immediately preceding sentence, the
Fortune Brands Parties shall have no liability or obligation with respect to the Cabinets Pension Plan or any participants or former participants in the Cabinets Pension Plan with respect to their participation therein. 

Section 3.03 Supplemental Retirement Plans. Following the Distribution Date, the Cabinets Parties shall continue
to sponsor and maintain the Cabinets Supplemental Plan. The Cabinets Parties shall be solely responsible for all liabilities and shall fully perform, pay and discharge all obligations, when such obligations become due, to the Business Employees
under the Cabinets Supplemental Plan. With respect to each Cabinets Employee who was a participant in the Fortune Brands Supplemental Plan and has an account under such plan (each, a “Fortune Brands SRP Participant”), (a) no
later than the Distribution Date, Fortune Brands shall provide Cabinets with a list of payment events applicable to each Fortune Brands SRP Participant and (b) on or after the Distribution Date, Cabinets shall, or shall cause the applicable
Cabinets Party to, notify Fortune Brands of the occurrence of (a) any payment event with respect to a Fortune Brands SRP Participant under the Fortune Brands Supplemental Plan, and (b) the “separation from service” under
Section 409A of the Code of any Fortune Brands SRP Participant, whether or not such separation from service is a payment event, in each case, as promptly as practicable but in no event later than thirty (30) days following such the
occurrence of such payment event or separation from service, as applicable, and shall promptly provide to Fortune Brands any other relevant information reasonably requested by Fortune Brands in writing for purposes of administering the Fortune
Brands Supplemental Plan with respect to the Fortune Brands SRP Participants. The Distribution will not constitute a “change in control” for purposes of the Cabinets Supplemental Plan or the Fortune Brands Supplemental Plan. 

Section 3.04 Deferred Compensation Plans. 
  

	 	(a)	 Effective as of the Distribution Date, a member of the Cabinets Parties shall adopt, establish and maintain a
nonqualified deferred compensation plan for the benefit of employees of the Cabinets Parties (the “Cabinets DCP”) which shall have substantially the same terms and conditions as the Fortune Brands DCP. As of the Distribution
Date, Cabinets shall, or shall cause a member of the Cabinets Parties to, assume and thereafter be solely responsible for all existing and future liabilities relating to Cabinets Employees’ (and any beneficiary’s thereof) (i) benefits
and notional account balances accrued under the Fortune Brands DCP as of immediately prior to the Distribution Date, as applicable, and (ii) benefits and notional account balances that accrue under the Cabinets DCP on or after the Distribution
Date, as applicable; provided, that to the extent such an individual’s 

  
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account is invested in notional Fortune Brands Shares, then (x) such individual participant’s account shall be credited with the number of Cabinets Shares equal to the number of
Cabinets Shares that would have been distributed to the individual participant if the notional Fortune Brands Shares held in the individual’s account had been issued and outstanding, and (y) the notional Fortune Brands Shares credited to
such individual participant’s account shall be deemed to have been sold as of the Distribution Date, based on the value of such shares as of the Distribution Date, and reinvested in the default investment fund maintained under the Cabinets DCP.
All deferral and distribution elections made by Cabinets Employees under the Fortune Brands DCP shall, to the extent applicable, be transferred to, and be in full force and effect under, the Cabinets DCP, and for such purpose, and subject to
Section 409A of the Code, any distributions payable upon a Cabinets Employee’s separation from service shall be payable upon his or her separation from service with the Cabinets Parties. All beneficiary designations made by Cabinets
Employees and beneficiaries thereof under the Fortune Brands DCP shall, to the extent applicable, be transferred to, and be in full force and effect under, the Cabinets DCP until such beneficiary designations are replaced or revoked by the Cabinets
Employee (or the beneficiary of such individual) who made the beneficiary designation. Following the Distribution Date, the Fortune Brands Parties shall have no liability or obligation with respect to the benefits accrued by such Cabinets Employees
or by beneficiaries thereof under the Fortune Brands DCP or with respect to any benefits accrued under the Cabinets DCP. 

  

	 	(b)	 Effective as of the Distribution Date, with respect to any Fortune Brands Shares which have been notionally
credited to the account of any non-employee director of the Fortune Brands Board of Directors under the Fortune Brands Director DCP (such shares, the “Director Deferred Shares”), such
Director Deferred Shares shall be adjusted such that (i) any such non-employee director who is a Cabinets Service Provider will be notionally credited with the number of deferred Cabinets Shares equal to
the number of Cabinets Shares that would have been distributed to such non-employee director if the number of Director Deferred Shares had instead been issued and outstanding, and (ii) for any individual
who will serve as a non-employee director on both the Fortune Brands Board of Directors and the Cabinets Board of Directors effective as of the Distribution Date, such individuals will be notionally credited
with deferred Cabinets Shares equivalent to the dividend of one (1) Cabinets Share for each Director Deferred Share held by such individual as of the Record Date, and such deferred Cabinets Shares shall be subject to the same terms and
conditions applicable to the Director Deferred Shares. 

 Article IV. WELFARE PLANS 

Section 4.01 Establishment of Cabinets Welfare Plans. Effective as of the Plan Effective Date, a member of the
Cabinets Parties shall adopt, establish and maintain Welfare Plans for the benefit of Cabinets Employees that have substantially the same terms as conditions as the Fortune Brands Welfare Plans (the “Cabinets Welfare Plans”).

 Section 4.02 Coverage of Cabinets Employees. Fortune Brands shall cause each Cabinets Employee who satisfies
the eligibility requirements of the Fortune Brands Welfare Plans (excluding any portion of such plans which is intended to be a cafeteria plan under Section 125 of the Code or is a flexible spending account) to remain eligible under such plan
through 

  
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December 31, 2022 as long as each such individual otherwise continues to satisfy the eligibility requirements of such plan. As of the Plan Effective Date, each Cabinets Employee, including each
Fortune Brands Transferred Employee, shall become eligible to participate in the Cabinets Welfare Plans established by Cabinets effective as of the Plan Effective Date for their participation, subject to the terms of such plans. To the extent
applicable to any Cabinets Welfare Plans in which Cabinets Employees become eligible as of the Plan Effective Date that provide benefits similar to the benefits that had been provided to such employees under a Fortune Brands Welfare Plan immediately
prior to such date, Cabinets shall cause the Cabinets Welfare Plans to recognize all coverage and contribution elections most recently made by such Cabinets Employees under the Fortune Brands Welfare Plans prior to the Plan Effective Date and shall
apply such elections under the Cabinets Welfare Plans for the plan year beginning as of the Plan Effective Date, in each case to the extent practicable and in accordance with the terms of the Cabinets Welfare Plans. All beneficiary designations made
by Cabinets Employees under the Fortune Brands Welfare Plans shall, to the extent applicable and permitted by applicable law, be transferred to, and be in full force and effect under, the Cabinets Welfare Plans until such beneficiary designations
are replaced or revoked by the Cabinets Employee who made the beneficiary designation. 
 Section 4.03 Welfare Plan
Liabilities. 
  

	 	(a)	 Cabinets Welfare Plans. As of the Plan Effective Date, the Cabinets Parties and the Cabinets Welfare
Plans, as applicable, shall assume, retain and be responsible for all claims for welfare benefits (and for any liabilities arising as a result of such claims) incurred with respect to any Cabinets Employee (and, if applicable, such Cabinets
Employee’s participating spouse and/or dependents) or Former Cabinets Employee on or after the Plan Effective Date under the Cabinets Welfare Plans (the “Welfare Liabilities”), and none of the Fortune Brands Parties or
the Fortune Brands Welfare Plans shall assume or retain any such liabilities. 

  

	 	(b)	 Fortune Brands Welfare Plans. The Fortune Brands Welfare Plans shall continue to be responsible for all
claims for welfare benefits (and for any liabilities arising as a result of such claims) incurred with respect to any Cabinets Employee or Former Cabinets Employee prior to the Plan Effective Date under such plan, whether such claims have been paid
or remain unpaid as of such date, and the Cabinets Welfare Plans shall not assume any such liabilities; provided, however, that with respect to any such liabilities which are incurred under the Fortune Brands Welfare Plans, to the extent unpaid as
of the Distribution Date, the Cabinets Parties shall provide reimbursement for any such amounts which constitute Invoiced Amounts in accordance with the terms of the Transition Services Agreement. 

 

	 	(c)	 Claims Incurred. Claims for health, dental and vision benefits shall be considered to be incurred prior
to the applicable determination date if the services related to such claims were provided prior to such date. Claims for all other welfare benefits (including life, long-term disability, and short-term disability) shall be considered to be incurred
prior to the applicable determination date if the date of loss or the date on which the disability or death occurred was prior to such date. 

  
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 Section 4.04 COBRA and HIPAA Liabilities. From and after the
Plan Effective Date, the Cabinets Parties and the Cabinets Welfare Plans shall be responsible for the continuation coverage requirements under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”),
and the portability requirements under the Health Insurance Portability and Accountability Act of 1996 with respect to all Business Employees and their qualified beneficiaries. Prior to the Plan Effective Date, the Fortune Brands Parties and the
Fortune Brands Welfare Plans shall be solely responsible for providing continued health coverage required by COBRA to (a) Former Cabinets Employees and their qualifying beneficiaries who experience a COBRA qualifying event (as defined in
Section 4980B of the Code) under the applicable Fortune Brands Welfare Plan, and (b) Cabinets Employees and their qualifying beneficiaries who experience a COBRA qualifying event, in each case, under the applicable Fortune Brands Welfare
Plan on or prior to the Plan Effective Date (individuals in (a) and (b) collectively, the “COBRA Participants”), and following the Distribution Date, the Cabinets Parties shall reimburse the Fortune Brands Parties for
any unpaid claims or obligations incurred under the Fortune Brands Welfare Plans as a result of such COBRA coverage, to the extent such amounts constitute Invoiced Amounts, in accordance with the terms of the Transition Services Agreement. 

Section 4.05 Stop Loss Adjustment. Pursuant to the self-funded stop-loss arrangement maintained as of immediately
prior to the Distribution Date among the Fortune Brands Parties and the Cabinets Parties, not later than 60 days after the Distribution Date, Fortune Brands and Cabinets shall determine, for health claims arising prior to the Distribution Date, the
allocation of such claims among the Fortune Brands Parties and the Cabinets Parties, and true up payments shall be made among such parties in accordance with such stop-loss arrangement as though the plan year ended on the Plan Effective Date. Each
of the Fortune Brands Parties and the Cabinets Parties shall be responsible separately for the stop-loss coverage of claims arising under their respective group health plans on and after the Plan Effective Date. 

Article V. NON-ERISA BENEFIT ARRANGEMENTS 

Section 5.01 Cabinets Non-ERISA Benefit Arrangements. Following the
Distribution Date, the Cabinets Parties shall continue to be the plan sponsor of each Non-ERISA Benefit Arrangement sponsored by the Cabinets Parties for the benefit of the Cabinets Employees immediately prior
to the Distribution Date. Following the Distribution Date, the Fortune Brands Parties shall have no liability or obligation with respect to such arrangements or any participants or former participants in such arrangements with respect to their
participation therein. 
 Article VI. EQUITY COMPENSATION PLANS 

Section 6.01 Stock Options. 

(a) Options Held by Cabinets Service Providers. Fortune Brands and Cabinets shall take any and all action as shall be necessary or
appropriate, including approval of the provisions of this Section 6.01(a) by the Cabinets Board of Directors and the Fortune Brands Compensation Committee, so that each Fortune Brands Option, whether vested or unvested, held at the close of
business on the Distribution Date by any Cabinets Service Provider (or any transferee thereof) shall be, pursuant to the terms of the applicable Fortune Brands LTIP and the applicable Cabinets equity compensation plan
(the “Cabinets LTIP”) and this Agreement, replaced with a substitute option to purchase Cabinets Shares granted under the Cabinets LTIP (a “Substitute Cabinets
Option”), pursuant to which: 
  

	 	(i)	 the Intrinsic Value of each Substitute Cabinets Option immediately after the Distribution shall be equal
to the Intrinsic Value of the corresponding Fortune Brands Option immediately prior to the Distribution; 

  
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	 	(ii)	 the ratio of the per share exercise price of each Substitute Cabinets Option to the Cabinets
Post-Distribution Stock Price shall not exceed the ratio of the per share exercise price of the corresponding Fortune Brands Option to the Fortune Brands Pre-Distribution Stock Price; and

  

	 	(iii)	 the Substitute Cabinets Option shall become exercisable and terminate based on the holder’s service
with the Cabinets Parties. 

 Each Substitute Cabinets Option shall have the same terms and conditions as the corresponding Fortune Brands
Option, except as provided herein. It is intended that the adjustment and substitution set forth herein shall satisfy the requirements of Section 424 of the Code and avoid treatment as nonqualified deferred compensation subject to
Section 409A of the Code. 
  

	 	(b)	 Options Held by Persons Other Than Cabinets Service Providers. Fortune Brands shall take any and
all action as shall be necessary or appropriate, including approval of the provisions of this Section 6.01(b) by the Fortune Brands Compensation Committee, so that each Fortune Brands Option held at the close of business on the Distribution
Date by any person who is not a Cabinets Service Provider (or any transferee of such person) shall be replaced pursuant to the terms of the Fortune Brands LTIPs and this Agreement with an adjusted Fortune Brands Option (“Adjusted
Fortune Brands Options”), pursuant to which: 

  

	 	(i)	 the Intrinsic Value of each Adjusted Fortune Brands Option immediately after the Distribution shall be
equal to the Intrinsic Value of the corresponding Fortune Brands Option immediately prior to the Distribution; and 

  

	 	(ii)	 the ratio of the per share exercise price of each Adjusted Fortune Brands Option to the Fortune Brands
Post-Distribution Stock Price shall not exceed the ratio of the per share exercise price of the corresponding Fortune Brands Option to the Fortune Brands Pre-Distribution Stock Price. 

Each Adjusted Fortune Brands Option shall have the same terms and conditions as the corresponding Fortune Brands Option, except as provided herein. It is
intended that the adjustment set forth herein shall satisfy the requirements of Section 424 of the Code and avoid treatment as nonqualified deferred compensation subject to Section 409A of the Code. 

Section 6.02 Restricted Stock Units. 
  

	 	(a)	 RSUs Held by Cabinets Service Providers. Except with respect to Fortune Brands RSUs which have been
deferred under the Fortune Brands DCP, treatment of which is set forth in Section 3.04 above, Fortune Brands and Cabinets shall take any and all action as shall be necessary or appropriate, including approval of the provisions of this
Section 6.02(a) by the Cabinets Board of Directors and the Fortune Brands Compensation Committee pursuant to the terms of the applicable Fortune Brands LTIP, the applicable Cabinets LTIP and this Agreement, so that each Fortune Brands RSU held
at the close of business on the Distribution Date by any Cabinets Service Provider shall be replaced with a substitute Cabinets restricted stock unit award granted under the Cabinets LTIP (“Substitute 

  
 11 

	 	
Cabinets RSU Award”). The number of Cabinets restricted stock units subject to the Substitute Cabinets RSU Award will be equal to the number of Fortune Brands restricted
stock units subject to the Fortune Brands RSU Award held by the participant at the close of business on the Distribution Date multiplied by a fraction, the numerator of which is the Fortune Brands
Pre-Distribution Stock Price, and the denominator of which is the Cabinets Post-Distribution Stock Price. Each Substitute Cabinets RSU Award shall vest and be payable based on the holder’s employment with
the Cabinets Parties. Each Substitute Cabinets RSU Award shall have the same terms and conditions as the corresponding Fortune Brands RSU Award, except as provided herein. 

 

	 	(b)	 RSUs Held by Persons Other Than Cabinets Service Providers. Fortune Brands shall take any and all
action as shall be necessary or appropriate, including approval of the provisions of this Section 6.02(b) by the Fortune Brands Compensation Committee pursuant to the terms of the applicable Fortune Brands LTIP and this Agreement, so that each
Fortune Brands RSU Award held at the close of business on the Distribution Date by any person who is not a Cabinets Service Provider, including any Director Deferred Shares (except as provided in Section 3.04(b)), shall be adjusted
(“Adjusted Fortune Brands RSU Award”). The number of Fortune Brands restricted stock units subject to the Adjusted Fortune Brands RSU Award will be equal to the number of Fortune Brands restricted stock units
subject to the Fortunate Brands RSU Award held by the holder at the close of business on the Distribution Date multiplied by a fraction, the numerator of which is the Fortune Brands Pre-Distribution Stock
Price, and the denominator of which is the Fortune Brands Post-Distribution Stock Price. Each Adjusted Fortune Brands RSU Award shall have the same terms and conditions as the corresponding Fortune Brands RSU Award, except as provided herein.

 Section 6.03 Performance Share Awards. 
  

	 	(a)	 Performance Share Awards Held by Cabinets Service Providers. Fortune Brands and Cabinets shall take
any and all action as shall be necessary or appropriate, including approval of the provisions of this Section 6.03(a) by the Cabinets Board of Directors pursuant to the terms of the applicable Cabinets LTIP and this Agreement, so that each
Fortune Brands performance share award held at the close of business on the Distribution Date by any Cabinets Service Provider will be replaced with a Substitute Cabinets RSU Award granted under the Cabinets LTIP. For purposes of determining the
number of Cabinets restricted stock units subject to the Substitute Cabinets RSU Award, the number of pre-Distribution Fortune Brands RSUs that are considered earned with respect to such performance share
award shall be determined by the Fortune Brands Compensation Committee based upon projected performance results through the end of the applicable performance period, calculated based on actual performance from the beginning of the applicable
performance period through the end of the fiscal quarter immediately preceding the Distribution Date and expected performance, as determined by the Fortune Brands Compensation Committee, through the remainder of the applicable performance period had
the Distribution not occurred. Each Substitute Cabinets RSU Award shall have a vesting period ending on the last day of the performance period applicable to the corresponding Fortune Brands performance share award to which it relates based on the
holder’s service with the Cabinets Parties, and shall have the same terms and conditions as the corresponding Fortune Brands performance share award, except as provided herein. 

  
 12 

	 	(b)	 Performance Share Awards Held by Persons Other Than Cabinets Service Providers. Fortune Brands
shall take any and all action as shall be necessary or appropriate, including approval of the provisions of this Section 6.03(b) by the Fortune Brands Compensation Committee pursuant to the terms of the applicable Fortune Brands LTIP and this
Agreement, so that each Fortune Brands performance share award held at the close of business on the Distribution Date by any person who is not a Cabinets Service Provider will be replaced with an Adjusted Fortune Brands RSU Award granted under the
applicable Fortune Brands LTIP. For purposes of determining the number of Fortune Brands restricted stock units subject to the Adjusted Fortune Brands RSU Award, the number of pre-Distribution Fortune Brands
RSUs that are considered earned with respect to such performance share award shall be determined by the Fortune Brands Compensation Committee based upon projected performance results through the end of the applicable performance period, calculated
based on actual performance from the beginning of the applicable performance period through the end of the fiscal quarter immediately preceding the Distribution Date and expected performance, as determined by the Fortune Brands Compensation
Committee, through the remainder of the applicable performance period had the Distribution not occurred. Each Adjusted Fortune Brands RSU Award shall have a vesting period ending on the last day of the performance period applicable to the
corresponding Fortune Brands performance share award to which it relates based on the holder’s service with the Cabinets Parties, and shall have the same terms and conditions as the corresponding Fortune Brands performance share award, except
as provided herein. 

 Section 6.04 Approval and Terms of Equity Awards. By approval
of the Cabinets Board of Directors and the Fortune Brands Compensation Committee pursuant to Sections 6.01, 6.02, and 6.03, Cabinets, as issuer of substitute and replacement awards provided hereunder, and Fortune Brands, as sole shareholder of
Cabinets, shall adopt and approve, respectively, the issuance of the substitute and replacement options and other awards provided for herein. Except as set forth above, the terms of the Fortune Brands LTIPs and of the outstanding equity compensation
awards held by participants under the Fortune Brands LTIPs and the substitute Cabinets equity awards shall be subject to the terms of such plans and applicable award agreements, except that references in such outstanding substitute and replacement
Cabinets awards to “Board” and “Committee” shall mean the Board, Compensation Committee or any other designated committee of Cabinets (as applicable) and references to the “Company” shall mean Cabinets. Notwithstanding
the foregoing, substitute awards made under the Cabinets LTIP pursuant to Cabinets’ obligations under this Agreement shall take into account all employment and service with both Fortune Brands and Cabinets, and their respective Subsidiaries and
Affiliates, for purposes of determining when such awards vest and terminate. 
 Section 6.05 No Change in
Control. The Distribution will not constitute a “change in control” for purposes of Fortune Brands equity awards that are outstanding as of the Distribution Date. 

Article VII. COMPENSATION MATTERS AND GENERAL BENEFIT MATTERS 

Section 7.01 Cessation of Participation in Fortune Brands Plans and Non-ERISA Benefit
Arrangements. Except as otherwise provided in this Agreement or as required by the terms of any Fortune Brands Plan or Fortune Brands Non-ERISA Benefit Arrangement, or by applicable law,
Fortune Brands and Cabinets shall take any and all action as shall be necessary or appropriate so that participation in Fortune Brands Plans and Fortune Brands Non-ERISA Benefit Arrangements by all Cabinets
Employees shall terminate as of the close of business on the Distribution Date and the Cabinets Parties shall cease to be participating employers under the terms of such Fortune Brands Plans and Fortune Brands
Non-ERISA Benefit Arrangements as of such time. 

  
 13 

 Section 7.02 Assumption of Certain Employee Related
Obligations. Except as otherwise provided in this Agreement, effective as of the close of business on the Distribution Date, Cabinets shall assume, and no Fortune Brands Party shall have any further liability for, the following
agreements, obligations and liabilities, and Cabinets shall indemnify, defend and hold harmless each of the Fortune Brands Indemnified Parties from and against any and all Expenses or Losses incurred or suffered by one or more of the Fortune Brands
Indemnified Parties in connection with, relating to, arising out of or due to, directly or indirectly, any of the following: 
  

	 	(a)	 all agreements entered into between any Fortune Brands Party and any independent contractor providing services
to the extent they are related to the Cabinets Business; 

  

	 	(b)	 all collective bargaining agreements, collective agreements, trade union agreements or works council agreements
entered into between any Fortune Brands Party and any union, works council or other body to the extent they are related to the Business Employees; 

  

	 	(c)	 all wages, salary, incentive compensation, commissions and bonuses payable to Business Employees on or after
the Distribution Date, without regard to when such wages, salary, incentive compensation, commissions or bonuses are or may have been earned; 

  

	 	(d)	 all moving expenses and obligations related to relocation, repatriation, transfers or similar items incurred by
or owed to any Business Employee; 

  

	 	(e)	 all immigration-related, visa, work application or similar rights, obligations and liabilities to the extent
they are related to any Business Employees; and 

  

	 	(f)	 all liabilities and obligations whatsoever of the Transferred Business with respect to claims made by or with
respect to Business Employees, or any other to the extent their employment duties related to the Transferred Business, relating to any employee benefit plan, program or policy not otherwise retained or assumed by Fortune Brands pursuant to this
Agreement, including such liabilities relating to actions or omissions of or by the Cabinets Parties or any officer, director, employee or agent thereof prior to the Distribution Date. 

Section 7.03 Restrictive Covenants in Employment and Other Agreements. To the extent permitted under
applicable law, following the Distribution, the Cabinets Parties shall be considered to be successors to the Fortune Brands Parties for purposes of all agreements containing restrictive covenants (including confidentiality and non-competition provisions) between any Fortune Brands Party and any Business Employee executed prior to the Distribution Date such that each Fortune Brands Party and each Cabinets Party shall all enjoy the rights
and benefits under such agreements, with respect to their respective business operations; provided, however, that (a) in no event shall any Fortune Brands Party be permitted to enforce the restrictive covenant agreements
against any Business Employees in their capacity as employees of any Cabinets Party, and (b) in no event shall any Cabinets Party be permitted to enforce the restrictive covenant agreements against any Fortune Brands employees in their capacity
as employees of any Fortune Brands Party. 

  
 14 

 Section 7.04 Severance. Effective as of the Distribution
Date, Cabinets will establish a severance plan on substantially the same terms and conditions as the Fortune Brands Home & Security, Inc. United States Severance Plan. Effective as of the Distribution Date, Cabinets shall assume, and
Fortune Brands shall have no liability or obligation with respect to the severance benefits provided to Business Employees. Following the Distribution Date, Cabinets shall be solely responsible for administering and paying all benefits under the
applicable severance plans, policies or agreements with Business Employees, including Business Employees whose employment terminated prior to the Distribution Date for an eligible reason under such policies or in accordance with such agreements, and
Cabinets shall indemnify each of the Fortune Brands Parties for any amounts payable to Business Employees under such plans, policies and agreements. It is not intended that any Fortune Brands Transferred Employee or Cabinets Transferred Employee
will be eligible for termination or severance payments or benefits from any Fortune Brands Party as a result of the transfer or change of employment from Fortune Brands to any Cabinets Party or vice versa. Notwithstanding the preceding sentence, in
the event that any such termination or severance payments or benefits become payable on account of such transfer, change or the refusal of a Fortune Brands Transferred Employee to accept employment with any Cabinets Party, Cabinets shall indemnify
each of the Fortune Brands Parties for the amount of such termination or severance payments or benefits. In the event that any such termination or severance payments or benefits become payable on account of such transfer, change or the refusal of a
Cabinets Transferred Employee to accept employment with any Fortune Brands Party, Fortune Brands shall indemnify each of the Cabinets Parties for the amount of such termination or severance payments or benefits. 

Section 7.05 Past Service Credit. With respect to all Business Employees, as of the Distribution Date, the
Cabinets Parties shall recognize all service recognized under the comparable Fortune Brands Plans and Fortune Brands Non-ERISA Benefit Arrangements for purposes of determining eligibility, participation,
vesting and calculation of benefits under comparable plans and programs maintained by the Cabinets Parties, provided that there shall be no duplication of benefits for Business Employees under such Cabinets Party plans and programs. Fortune Brands
will provide to Cabinets copies of any records available to Fortune Brands to document such service, plan participation and membership and cooperate with Cabinets to resolve any discrepancies or obtain any missing data for purposes of determining
benefit eligibility, participation, vesting and calculation of benefits with respect to the Cabinets Employees. With respect to retaining, destroying, transferring, sharing, copying and permitting access to all such information, Fortune Brands and
Cabinets shall each comply with all applicable laws, regulations and internal policies and each party shall indemnify and hold harmless the other party from and against any and all liability, claims, actions and damages that arise from a failure (by
the indemnifying party) to so comply with all applicable laws, regulations and internal policies applicable to such information. 

Section 7.06 Accrued Vacation Days Off. Effective as of the Distribution Date, the Cabinets Parties shall
recognize and assume all liability for all vacation, holiday, sick leave, flex days and personal days off, including banked vacation or sick leave, accrued by Cabinets Employees as of the Distribution Date, and the Cabinets Parties shall credit each
Cabinets Employee with such days off accrual. 
 Section 7.07 Leaves of Absence. The Cabinets Parties
shall continue to apply all leave of absence policies as in effect immediately prior to the Distribution to inactive Cabinets Employees who are on an approved leave of absence as of the Distribution Date. Leaves of absence taken by Cabinets
Employees prior to the Distribution Date shall be deemed to have been taken as employees of Cabinets. 

  
 15 

 Section 7.08 Fortune Brands Assets. Except as otherwise
set forth herein, Fortune Brands shall retain all reserves, bank accounts, trust funds or other balances maintained with respect to Fortune Brands’ Non-ERISA Benefit Arrangements. 

Section 7.09 Further Cooperation; Personnel Records; Data Sharing. The parties shall provide each other
such records and information as reasonably necessary or appropriate to carry out their obligations under law, this Agreement, or for the purposes of administering their respective plans and policies, including without limitation information relating
to the vesting, exercise and employment status of persons holding equity compensation awards in the common stock of the other party. Each party shall be responsible for the accuracy of records and information provided to the other party pursuant to
this Section 7.09, and shall indemnify such other party for any losses caused by inaccurate information that it has provided. Subject to applicable law, all information and records regarding employment and personnel matters of Cabinets
Employees shall be accessed, retained, held, used, copied and transmitted after the Distribution Date by Cabinets in accordance with all laws and policies relating to the collection, storage, retention, use, transmittal, disclosure and destruction
of such records. Access to such records after the Distribution Date will be provided to Fortune Brands in accordance with Article XI of the Distribution Agreement. Notwithstanding the foregoing, Fortune Brands shall retain reasonable access to those
records necessary for Fortune Brands’ continued administration of any plans or programs on behalf of Business Employees after the Distribution Date, and Cabinets shall retain reasonable access to those records necessary for Cabinet’s
administration of any equity award or other compensation or benefit payable or administered by the Cabinets Parties after the Distribution Date, provided that such access shall be limited to individuals who have a
job-related need to access such records. Fortune Brands shall also retain copies of all confidentiality and non-compete agreements with any Cabinets Employee in which
Fortune Brands has a valid business interest. With respect to retaining, destroying, transferring, sharing, copying and permitting access to all such information, Fortune Brands and Cabinets shall each comply with all applicable laws, regulations
and internal policies, and each party shall indemnify and hold harmless the other party from and against any and all liability, claims, actions, and damages that arise from a failure (by the indemnifying party) to so comply with all applicable laws,
regulations and internal policies applicable to such information. 
 Article VIII. GENERAL PROVISIONS 

Section 8.01 Employment and Plan Rights. Notwithstanding anything to the contrary in this Agreement, the
Parties expressly acknowledge and agree that (a) this Agreement is not intended to create an employment-related contract between any of the Fortune Brands Parties or the Cabinets Parties, on the one hand, and any employee or service provider,
on the other, nor may any current or former employee or service provider rely on this Agreement as the basis for any breach of any employment-related contract claim against any of the Fortune Brands Parties or Cabinets Parties, (b) nothing in
this Agreement shall be deemed or construed to require any of the Fortune Brands Parties or Cabinets Parties to continue to employ any particular employee or service provider for any period before or after the Distribution Date, (c) nothing in
this Agreement shall be deemed or construed to limit the right of the Fortune Brands Parties or Cabinets Parties to terminate the employment of any employee or service provider at any time before or after the Distribution Date and (d) nothing
in this Agreement shall be construed as establishing or amending any Pension Plan, Welfare Plan or Non-ERISA Benefit Arrangement, or any other plan, policy, agreement or arrangement for the benefit of any
employee or any other person. 

  
 16 

 Section 8.02 Confidentiality. Each party agrees that any
information conveyed or otherwise received by or on behalf of a party in conjunction herewith is confidential and is subject to the terms of the confidentiality provisions set forth in Section 11.7 of the Distribution Agreement. 

Section 8.03 Administrative Complaints/Litigation. Except as otherwise provided in this Agreement,
following the Distribution Date, the Cabinets Parties shall assume, and be solely liable for, the handling, administration, investigation and defense of actions, including ERISA, occupational safety and health, employment standards, union
grievances, wrongful dismissal, discrimination or human rights and unemployment compensation claims, asserted at any time against the Fortune Brands Parties or the Cabinets Parties by any Business Employee (including any dependent or beneficiary of
any Business Employee), or any other person to the extent such actions or claims arise out of or relate to employment or the provision of services (whether as an employee, contractor, consultant or otherwise) to or with the Cabinets Business. 

Section 8.04 Reimbursement and Indemnification. Except as otherwise set forth herein, the parties hereto
agree to reimburse each other, within 30 days of receipt from the other party of appropriate verification, for all costs and expenses which each may incur on behalf of the other as a result of any of the Welfare Plans, Pension Plans and Non-ERISA Benefit Arrangements and, as contemplated by Section 7.04, any termination or severance payments or benefits. All liabilities retained, assumed or indemnified against by Cabinets pursuant to this
Agreement, and all liabilities retained, assumed or indemnified against by Fortune Brands pursuant to this Agreement, shall in each case shall be subject to the indemnification procedures set forth in Article X of the Distribution Agreement. 

Section 8.05 Entire Agreement. This Agreement, including any schedules hereto and the sections of the
Distribution Agreement referenced herein, constitutes the entire agreement between the Parties with respect to the subject matter contained herein, and supersedes all prior agreements, negotiations, discussions, understandings, writings and
commitments between the Parties with respect to such subject matter. 
 Section 8.06 Choice of Law. This
Agreement shall be governed by and construed and enforced in accordance with the substantive laws of the State of Delaware, as though all acts and omissions related hereto occurred in Delaware. 

Section 8.07 Amendment. This Agreement shall not be amended, modified or supplemented except by a written
instrument signed by an authorized representative of each of Fortune Brands and Cabinets. 
 Section 8.08
Waiver. Any term or provision of this Agreement may be waived, or the time for its performance may be extended, by the party or parties entitled to the benefit thereof. Any such waiver shall be validly and sufficiently
given for the purposes of this Agreement if, as to any party, it is in writing signed by an authorized representative of such party. The failure of any party to enforce at any time any provision of this Agreement shall not be construed to be a
waiver of such provision, or in any way to affect the validity of this Agreement or any part hereof or the right of any party thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall be held to constitute
a waiver of any other or subsequent breach. 

  
 17 

 Section 8.09 Partial Invalidity. Wherever possible, each
provision hereof shall be interpreted in such a manner as to be effective and valid under applicable law, but in case any one or more of the provisions contained herein shall, for any reason, be held to be invalid, illegal or unenforceable in any
respect, such provision or provisions shall be ineffective to the extent, but only to the extent, of such invalidity, illegality or unenforceability without invalidating the remainder of such provision or provisions or any other provisions hereof,
unless such a construction would be unreasonable. 
 Section 8.10 Execution in Counterparts. This
Agreement may be executed in two or more counterparts, each of which shall be deemed an original instrument, but all of which shall be considered one and the same agreement, and shall become binding when one or more counterparts have been signed by
and delivered to each of the Parties. Execution and delivery of this Agreement or any other documents pursuant to this Agreement by facsimile or other electronic means, including DocuSign or scanned pages, shall be deemed to be, and shall have the
same legal effect as, execution by an original signature and delivery in person. 
 Section 8.11 Successors and
Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their successors and permitted assigns; provided, however, that the rights and obligations of either party under
this Agreement shall not be assignable by such party without the prior written consent of the other party. The successors and permitted assigns hereunder shall include any permitted assignee as well as the successors in interest to such permitted
assignee (whether by merger, liquidation (including successive mergers or liquidations) or otherwise). 
 Section 8.12
Notices. All notices or other communications under this Agreement shall be in writing and shall be deemed to be duly given when delivered or mailed in accordance with the terms of Section 13.10 of the Distribution
Agreement. 
 Section 8.13 Performance. Each party shall cause to be performed, and hereby guarantees
the performance of, all actions, agreements and obligations set forth herein to be performed by any Affiliate of such party. 

Section 8.14 No Public Announcement. Neither Fortune Brands nor Cabinets shall, without the approval of
the other, make any press release or other public announcement concerning the transactions contemplated by this Agreement, except as and to the extent that either party shall be so obligated by law or the rules of any regulatory body, stock exchange
or quotation system, in which case the other party shall be advised and the parties shall use commercially reasonable efforts to cause a mutually agreeable release or announcement to be issued; provided, however, that the
foregoing shall not preclude communications or disclosures necessary to implement the provisions of this Agreement or to comply with applicable law, accounting and SEC disclosure obligations or the rules of any stock exchange. 

Section 8.15 Limited Liability. Notwithstanding any other provision of this Agreement, no individual who
is a stockholder, director, employee, officer, agent or representative of a Cabinets Party or a Fortune Brands Party, in its capacity as such, shall have any liability in respect of or relating to the covenants or obligations of such party under
this Agreement, and, to the fullest extent legally permissible, each of Cabinets and Fortune Brands, for itself and its respective stockholders, directors, employees, officers and Affiliates, waives and agrees not to seek to assert or enforce any
such liability that any such Person otherwise might have pursuant to applicable law. 

  
 18 

 Section 8.16 Mutual Drafting. This Agreement
shall be deemed to be the joint work product of Fortune Brands and Cabinets and any rule of construction that a document shall be interpreted or construed against a drafter of such document shall not be applicable. 

Section 8.17 Dispute Resolution. The Parties agree that any dispute, controversy or claim between them
with respect to the matters covered hereby shall be governed by and resolved in accordance with the procedures set forth in Article XII of the Distribution Agreement. 

Section 8.18 No Third-Party Beneficiaries. No Business Employee or other current or former employee of the
Fortune Brands Parties or Cabinets Parties (or his/her spouse, dependent or beneficiary), or any other person not a party to this Agreement, shall be entitled to assert any claim hereunder. The provisions of this Agreement are solely for the benefit
of the Parties and their respective Affiliates, successors and permitted assigns and shall not confer upon any third Person any remedy, claim, liability, reimbursement or other right in excess of those existing without reference to this Agreement.

 Section 8.19 Effect if Distribution Does Not Occur. Notwithstanding anything in this Agreement to the
contrary, if the Distribution Agreement is terminated prior to the Distribution Date, this Agreement shall be of no further force and effect. 

* * * * * 

  
 19 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed in
their names by a duly authorized officer as of the date first written above. 
  

			
	FORTUNE BRANDS HOME & SECURITY, INC.
		
	By:	 	/s/ Nicholas I. Fink
	Name:	 	Nicholas I. Fink
	Title:	 	Chief Executive Officer
	
	MASTERBRAND, INC.
		
	By:	 	/s/ R. David Banyard, Jr.
	Name:	 	R. David Banyard, Jr.
	Title:	 	President

  
 [Signature Page to
Employee Matters Agreement]EX-10.4

 Exhibit 10.4 

MASTERBRAND, INC. 
 2022
LONG-TERM INCENTIVE PLAN 
 I. INTRODUCTION 

1.1 Purposes. The purposes of the MasterBrand, Inc. 2022 Long-Term Incentive Plan (this “Plan”) are (i) to align the
interests of the Company’s stockholders and the recipients of awards under this Plan by increasing the proprietary interest of such recipients in the Company’s growth and success, (ii) to advance the interests of the Company by
attracting and retaining directors, officers, other employees and independent contractors, and (iii) to motivate such persons to act in the long-term best interests of the Company and its stockholders. 

1.2 Certain Definitions 
 “Agreement”
means the agreement between the Company and the recipient of an award setting forth the terms and conditions of the award (which may be in written or electronic form). 

“Board” means the board of directors of the Company. 

“Change in Control” has the meaning set forth in Section 5.8(b). 

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

“Committee” means the committee or committees, designated by the Board, consisting of two or more members of the Board, each of whom is
intended to be (i) a “non-employee director” within the meaning of Rule 16b-3 under the Exchange Act and (ii) “independent” within the
meaning of the rules of New York Stock Exchange or any other stock exchange on which the Common Stock is then traded; provided, however, that the Board may, in its discretion, serve as the Committee under the Plan. 

“Common Stock” means the common stock, par value $0.01 per share, of the Company, and all appurtenant rights. 

“Company” means MasterBrand, Inc., a Delaware corporation, or any successor. 

“Continuing Directors” has the meaning set forth in Section 5.8(b)(ii). 

“Effective Date” has the meaning set forth in Section 5.1. 

“Employee Matters Agreement” means the Employee Matters Agreement by and between the Company and Fortune Brands. 

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

“Fair Market Value” means a price that is based on the opening, closing, actual, high, low, or average selling prices of a share of Common
Stock reported on the New York Stock Exchange or such other established stock exchange on which the shares are principally traded on the applicable date, the preceding trading day, the next succeeding trading day, or an average of trading days, as
determined by the Committee in its discretion. Unless the Committee determines otherwise, Fair Market Value shall be deemed to be equal to the reported closing sales price of a share of Common Stock on the date as of which such value is being
determined or, if there shall be no reported transactions for such date, on the preceding date for which transactions were reported; provided, however, that if the shares of Common Stock are not publicly traded at the time a determination of their
value is required to be made hereunder, the determination of their Fair Market Value shall be made by the Committee in such manner as it deems appropriate and in accordance with Section 409A of the Code. 

“Fortune Brands” means Fortune Brands Home & Security, Inc. a Delaware corporation, or any successor thereto. 

“Incentive Stock Option” means an option to purchase shares of Common Stock that meets the requirements of Section 422 of the Code, or
any successor provision, which is intended by the Committee to constitute an Incentive Stock Option. 

 “Newco” has the meaning set forth in Section 5.8(b)(iii). 

“Nonqualified Stock Option” means an option to purchase shares of Common Stock which is not an Incentive Stock Option. 

“Other Stock-Based Award” means an award granted pursuant to Section 3.4. 

“Option” means an Incentive Stock Option or a Nonqualified Stock Option. 

“Performance Award” means an award of Performance Shares or Performance Units. 

“Performance Measures” means the criteria and objectives, established by the Committee, which shall be satisfied or met (i) as a
condition to the grant or exercisability of all or a portion of an option or SAR or (ii) during the applicable Restriction Period or Performance Period as a condition to the vesting of the holder’s interest, in the case of a Restricted
Stock Award, of the shares of Common Stock subject to such award, or, in the case of a Restricted Stock Unit Award, Other Stock Award or Performance Award, to the holder’s receipt of the shares of Common Stock subject to such award or of
payment with respect to such award. Such criteria and objectives may include one or more of the following corporate-wide or Subsidiary, division, joint venture, operating unit or individual measures: (i) net earnings; (ii) operating
earnings or income; (iii) earnings growth; (iv) net income; (v) net income applicable to shares; (vi) gross revenue or revenue by pre-defined business segment; (vii) ratio of operating
expenses to operating revenues; (viii) margins realized on delivered services; (ix) cash flow, including operating cash flow, free cash flow, discounted cash flow return on investment, and cash flow in excess of cost of capital;
(x) earnings per share; (xi) return on stockholders’ equity; (xii) stock price; (xiii) return on common stockholders’ equity; (xiv) return on capital; (xv) return on assets; (xvi) economic value added
(income in excess of cost of capital); (xvii) customer satisfaction; (xviii) cost control or expense reduction; (xix) operating company contribution; (xx) income before income taxes; (xxi) total return to stockholders, in
each case, absolute or relative to peer-group comparative; (xxii) earnings before interest, depreciation and/or amortization and (xxiii) strategic business criteria, which may consist of one or more objectives based on meeting goals
relating to market penetration, geographic business expansion, cost targets, customer satisfaction, reductions in errors and omissions, reductions in lost business, management of employment practices and employee benefits, supervision of litigation
and information technology, quality and quality audit scores, acquisitions or divestitures, and such other goals as the Committee may determine whether or not listed herein, or any combination of the foregoing. Such Performance Measures may also be
based upon the attainment by the Company, a Subsidiary division, joint venture or operating unit of specified levels of performance under one or more of the measures described above relative to the performance of other companies. The applicable
Performance Measures may be applied on a pre- or post-tax basis and may be adjusted to include or exclude components of any performance measure, including, without
limitation: extraordinary, unusual, infrequently occurring or non-recurring items; changes in law or accounting principles; currency fluctuations; financing activities (e.g., effect on earnings per share of
issuance of convertible debt securities); realized or unrealized gains and losses on securities; expenses, charges or credits for restructuring initiatives, productivity initiatives or for impaired assets;
non-cash items (e.g., amortization, depreciation or reserves); other non-operating items; write downs of intangible assets, property, plant or equipment, investments in
business units and securities resulting from the sale of business units; spending for acquisitions; and effects of any recapitalization, reorganization, merger, acquisition, divestiture, consolidation,
spin-off, split-off, combination, liquidation, dissolution, sale of assets, or other similar items determined by the Committee (“Adjustment Events”). In the
sole discretion of the Committee, the Committee may amend or adjust the Performance Measures or other terms and conditions of an outstanding award in recognition of any Adjustment Events. Performance goals shall be subject to such other special
rules and conditions as the Committee may establish. 
 “Performance Period” means any period designated by the Committee during which the
Performance Measures applicable to an award shall be measured. 
 “Performance Share” means a right to receive, contingent upon the
attainment of specified Performance Measures within a specified Performance Period, a specified number of shares of Common Stock (which may be shares of Restricted Stock). 

 “Performance Unit” means a right to receive, contingent upon the attainment of specified
Performance Measures within a specified Performance Period, a specified cash amount. 
 “Replacement and Substitute Award” means an Option
or Restricted Stock Unit Award granted to certain current and former employees and directors of the Company, Fortune Brands and their respective subsidiaries in connection with the spin-off of the Company to
the stockholders of Fortune Brands, pursuant to the terms of the Employee Matters Agreement. 
 “Restricted Stock” means shares of Common
Stock which are subject to a Restriction Period and which may also be subject to the attainment of specified Performance Measures within a specified Performance Period. 

“Restricted Stock Award” means an award of Restricted Stock under this Plan. 

“Restricted Stock Unit” means a right to receive one share of Common Stock or, to the extent set forth in the applicable award Agreement, the
Fair Market Value of a share of Common Stock in cash, which is contingent upon the expiration of a specified Restriction Period and which may also be contingent upon the attainment of specified Performance Measures within a specified Performance
Period. 
 “Restricted Stock Unit Award” means an award of Restricted Stock Units under this Plan. 

“Restriction Period” means any period designated by the Committee during which (i) shares of Common Stock subject to a Restricted Stock
Award or Other Stock-Based Award may not be sold, transferred, assigned, pledged, hypothecated or otherwise encumbered or disposed of, except as provided in this Plan or the Agreement relating to such award, or (ii) the conditions to vesting
applicable to a Restricted Stock Unit Award or Other Stock-Based Award shall remain in effect. 
 “SAR” means a stock appreciation right
which entitles the holder to receive, upon exercise, shares of Common Stock (which may be Restricted Stock) with an aggregate value equal to the excess of the Fair Market Value of one share of Common Stock on the date of exercise over the base price
of such SAR or, to the extent permitted by an Agreement, cash equal to the excess of the Fair Market Value of one share of Common Stock on the date of exercise over the base price of such SAR or a combination of both. 

“Stock Award” means a Restricted Stock Award, a Restricted Stock Unit Award or an Other Stock-Based Award. 

“Subsidiary” means any corporation, limited liability company, partnership, joint venture or similar entity in which the Company owns,
directly or indirectly, an equity interest possessing more than 20% of the combined voting power of the total outstanding equity interests of such entity, except that with respect to Incentive Stock Options, “Subsidiary” means
“subsidiary corporation” as defined in Section 424(f) of the Code. 
 “Substitute Award” means an award granted under
this Plan upon the assumption of, or in substitution for, outstanding equity awards previously granted by a company or other entity in connection with a corporate transaction, including a merger, combination, consolidation or acquisition of property
or stock; provided, however, that in no event shall the term “Substitute Award” be construed to refer to an award made in connection with the cancellation and repricing of an Option or SAR.  

“Tax Date” has the meaning set forth in Section 5.5. 

“Ten Percent Holder” has the meaning set forth in Section 2.1(a). 

“Voting Securities” has the meaning set forth in Section 5.8(b)(i). 

1.3 Administration. This Plan shall be administered by the Committee. Any one or a combination of the following awards may be made under this Plan to
eligible persons: (i) Incentive Stock Options or Nonqualified Stock Options, (ii) SARs, (iii) Stock Awards in the form of Restricted Stock, Restricted Stock Units or Other Stock-Based Awards and (iv) Performance Awards. The
Committee shall, subject to the terms of this Plan, select eligible persons for participation in this Plan and determine the form, amount and timing of each award to such persons and, if applicable, the number of shares of Common Stock, the number
of SARs, the number of Restricted Stock Units and the number of Performance Units subject to such an award, the exercise price or base price associated with the award, the time and conditions of exercise or settlement of the award and all

 
other terms and conditions of the award, including, without limitation, the form of the Agreement evidencing the award. The Committee may, in its sole discretion and for any reason at any time,
take action such that (i) any or all outstanding Options and SARs shall become exercisable in part or in full, (ii) all or a portion of the Restriction Period applicable to any outstanding Stock Award shall lapse, (iii) all or a
portion of the Performance Period applicable to any outstanding award shall lapse and (iv) the Performance Measures (if any) applicable to any outstanding award shall be deemed to be satisfied at the target, maximum or any other interim level.
The Committee shall, subject to the terms of this Plan, interpret this Plan, establish rules and regulations it deems necessary or desirable for the administration of this Plan and may impose, incidental to the grant of an award, conditions with
respect to the award, such as limiting competitive employment or other activities. All such interpretations, rules, regulations and conditions shall be conclusive and binding on all parties. 

The Committee may delegate some or all of its power and authority hereunder to the Board (or any members thereof) or, subject to applicable law, to a
subcommittee of the Board, a member of the Board, the Chief Executive Officer or other executive officer of the Company as the Committee deems appropriate; provided, however, that the Committee may not delegate its power and authority to a member of
the Board, the Chief Executive Officer or other executive officer of the Company with regard to the selection for participation in this Plan of an officer, director or other person subject to Section 16 of the Exchange Act or decisions
concerning the timing, pricing or amount of an award to such an officer, director or other person. 
 No member of the Board or Committee, and neither the
Chief Executive Officer nor any other executive officer to whom the Committee delegates any of its power and authority, shall be liable for any act, omission, interpretation, construction or determination made in connection with this Plan in good
faith, and the members of the Board and the Committee and the Chief Executive Officer or other executive officer shall be entitled to indemnification and reimbursement by the Company for any claims, losses, damages or expenses (including
attorneys’ fees) arising from any such act, omission, interpretation, construction or determination to the full extent permitted by law (except as otherwise may be provided in the Company’s Restated Certificate of Incorporation and/or
Amended and Restated Bylaws) and under any directors’ and officers’ liability insurance that may be in effect from time to time. 
 1.4
Eligibility. Participants in this Plan shall consist of such officers, other employees, non-employee directors, independent contractors and persons expected to become officers, other employees, non-employee directors, and independent contractors of the Company or any of its Subsidiaries, as the Committee in its sole discretion may select from time to time. The Committee’s selection of a person to
participate in this Plan at any time shall not require the Committee to select such person to participate in this Plan at any other time. In connection with the spin-off of the Company and pursuant to the
Employee Matters Agreement, certain current and former employees and directors of the Company, Fortune Brands and their respective subsidiaries will receive Replacement and Substitute Awards and shall be participants in the Plan. Except as otherwise
provided in an Agreement, for purposes of this Plan, references to employment by the Company shall also mean employment by a Subsidiary, and references to employment shall include service as a non-employee
director or independent contractor. Except as otherwise determined by the Committee, an employee who is granted a leave of absence in writing shall be deemed to be employed during such leave of absence. The aggregate value of cash compensation and
the grant date fair value of shares of Common Stock that may be awarded or granted during any fiscal year of the Company to any Non-Employee Director, for his or her services as a Non-Employee Director, shall
not exceed $750,000; provided, further, that this limit shall not apply to (i) distributions of previously deferred compensation under a deferred compensation plan maintained by the Company or compensation received by the director in his or her
capacity as an executive officer or employee of the Company or (ii) with respect to the grant of Replacement and Substitute Awards. 
 1.5 Shares
Available. Subject to adjustment as provided in Section 5.7 and excluding Substitute Awards, the total number of shares of Common Stock initially available under the Plan for the grant of new awards shall be 12,900,000 shares of Common
Stock, all of which may be granted as Incentive Stock Options. To the extent that the Company grants awards under the Plan, the number of shares of Common Stock that remain available 

 
for future grants under the Plan shall be reduced by one share for each share subject to such awards. To the extent that shares of Common Stock subject to an outstanding Option, SAR, Stock Award
or Performance Award granted under this Plan, other than Substitute Awards, are not issued or delivered by reason of: (a) the expiration, termination, cancellation or forfeiture of such award; (b) the settlement of such award in
cash; (c) the use of shares to pay for the exercise price or purchase price or to satisfy withholding taxes related to an award; or (d) shares that were subject to an Option or SAR and were not issued upon the net settlement of
such award, then such shares of Common Stock shall again be available under this Plan on a one-for-one basis. Notwithstanding anything in this Section 1.5 to the
contrary, shares of Common Stock subject to an award under this Plan may not again be made available for issuance under this Plan if such shares are shares repurchased by the Company on the open market with the proceeds of an option exercise. 

The number of shares of Common Stock available for awards under this Plan shall not be reduced by (i) the number of shares of Common Stock subject to
Substitute Awards, (ii) the number of shares of Common Stock subject to Replacement and Substitute Awards or (iii) available shares under a stockholder approved plan of a company or other entity which was a party to a corporate transaction
with the Company (as appropriately adjusted to reflect such corporate transaction) which become subject to awards granted under this Plan (subject to applicable stock exchange requirements). 

Shares of Common Stock to be delivered under this Plan shall be made available from authorized and unissued shares of Common Stock, or authorized and issued
shares of Common Stock reacquired and held as treasury shares or otherwise or a combination of both. 
 II. STOCK OPTIONS AND STOCK
APPRECIATION RIGHTS 
 2.1 Stock Options. The Committee may, in its discretion, grant Options to such eligible persons as may be selected by the
Committee; provided that Incentive Stock Options may be granted only to employees. Any portion of an Option that is not an Incentive Stock Option shall be a Nonqualified Stock Option. To the extent that the aggregate Fair Market Value (determined as
of the date of grant) of shares of Common Stock with respect to which Options designated as Incentive Stock Options are exercisable for the first time by the holder during any calendar year (under this Plan or any other plan of the Company, or any
parent or Subsidiary) exceeds the amount established by the Code (currently $100,000), such Options shall constitute Nonqualified Stock Options. 
 Options
shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms and conditions of this Plan, as the Committee shall deem advisable: 

(a) Number of Shares and Purchase Price. The number of shares of Common Stock subject to an Option and the purchase price per share of Common Stock
purchasable upon exercise of the Option shall be determined by the Committee; provided, however, that the purchase price per share of Common Stock purchasable upon exercise of an Option shall not be less than 100% of the Fair Market Value of a share
of Common Stock on the date of grant of such Option; and provided further, that if an Incentive Stock Option shall be granted to any person who, at the time such Option is granted, owns capital stock possessing more than ten (10) percent of the
total combined voting power of all classes of capital stock of the Company (or of any parent or Subsidiary) (a “Ten Percent Holder”), the purchase price per share of Common Stock shall not be less than the price required by the Code
(currently 110% of Fair Market Value) in order to constitute an Incentive Stock Option. 
 Notwithstanding the foregoing, in the case of an Option that is a
Substitute Award or a Replacement and Substitute Award, the purchase price per share of the shares subject to such Option may be less than 100% of the Fair Market Value per share on the date of grant, provided, that the excess of: (a) the
aggregate Fair Market Value (as of the date such Substitute Award or Replacement and Substitute Award is granted) of the shares subject to the Substitute Award or the Replacement and Substitute Award, over (b) the aggregate purchase price
thereof does not exceed the excess of: (x) the aggregate fair market value (as of the time immediately preceding the transaction giving rise to the Substitute Award or the Replacement and Substitute Award, such

 
fair market value to be determined by the Committee) of the shares of the predecessor company or other entity that were subject to the grant assumed or substituted for by the Company, over
(y) the aggregate purchase price of such shares. 
 (b) Option Period and Exercisability. The period during which an Option may be exercised
shall be determined by the Committee; provided, however, that no Option (other than a Nonqualified Stock Option exercisable by an optionee’s executor, administrator, legal representative, guardian or similar person after the optionee’s
death, to the extent permitted in the Agreement) shall be exercised later than ten (10) years after its date of grant; and provided further, that if an Incentive Stock Option shall be granted to a Ten Percent Holder, such Option shall not be
exercised later than five (5) years after its date of grant. The Committee may, in its discretion, determine that an Option is to be granted as a performance-based Option and may establish an applicable Performance Period and Performance
Measures which shall be satisfied or met as a condition to the grant of such Option or to the exercisability of all or a portion of such Option. The Committee shall determine whether an Option shall become exercisable in cumulative or non-cumulative installments and in part or in full at any time. An Option may be exercised only with respect to whole shares of Common Stock. 

(c) Method of Exercise. An Option may be exercised (i) by specifying the number of whole shares of Common Stock to be purchased in the manner
prescribed by the Company, accompanied by full payment (or by arranging for full payment to the Company’s satisfaction) either (A) in cash, (B) by delivery to the Company (either actual delivery or by attestation procedures
established by the Company) of shares of Common Stock having an aggregate Fair Market Value, determined as of the date of exercise, equal to the aggregate purchase price payable pursuant to the Option, (C) authorizing the Company to sell shares
of Common Stock subject to the option exercise and withhold from the proceeds an amount equal to the option exercise price, (D) authorizing the Company to withhold whole shares of Common Stock which would otherwise be delivered having an
aggregate Fair Market Value, determined as of the date of exercise, equal to the amount necessary to satisfy such obligation, (E) in cash by a broker-dealer acceptable to the Company to whom the participant has submitted an irrevocable notice
of exercise, (F) by a combination of (A), (B), (C) and (D), or (G) by any other method established by the Committee and set forth in an Agreement; and (ii) by executing such documents as the Company may reasonably request. Any
fraction of a share of Common Stock which would be required to pay such purchase price shall be disregarded, and the remaining amount due shall be paid in cash by the optionee. No shares of Common Stock shall be issued or delivered until the full
purchase price and any related withholding taxes, as described in Section 5.5, have been paid (or arrangement made for such payment to the Company’s satisfaction). 

2.2 Stock Appreciation Rights. The Committee may, in its discretion, grant SARs to such eligible persons as may be selected by the Committee. SARs
shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms and conditions of this Plan, as the Committee shall deem advisable: 

(a) Number of SARs and Base Price. The number of SARs subject to an award shall be determined by the Committee. The base price of an SAR shall be
determined by the Committee; provided, however, that such base price shall not be less than 100% of the Fair Market Value of a share of Common Stock on the date of grant of such SAR. The Agreement relating to an SAR shall specify whether the SAR may
be settled in shares of Common Stock (including Restricted Stock), cash or a combination of both shares and cash. 
 Notwithstanding the foregoing, in the
case of an SAR that is a Substitute Award or a Replacement and Substitute Award, the base price per share of the shares subject to such SAR may be less than 100% of the Fair Market Value per share on the date of grant, provided, that the excess of:
(a) the aggregate Fair Market Value (as of the date such Substitute Award or Replacement and Substitute Award is granted) of the shares subject to the Substitute Award or Replacement and Substitute Award, over (b) the aggregate base price
thereof does not exceed the excess of: (x) the aggregate fair market value (as of the time immediately preceding the transaction giving rise to the Substitute Award or Replacement and Substitute Award, such fair market value to be determined by
the Committee) of the shares of the predecessor company or other entity that were subject to the grant assumed or substituted for by the Company, over (y) the aggregate base price of such shares. 

 (b) Exercise Period and Exercisability. The period for the exercise of an SAR shall be
determined by the Committee; provided, however, that no SAR (other than an SAR exercisable by a holder’s executor, administrator, legal representative, guardian or similar person after the holder’s death, to the extent permitted in the
Agreement) shall be exercised later than ten (10) years after its date of grant. The Committee may, in its discretion, establish Performance Measures which shall be satisfied or met as a condition to the grant of an SAR or to the exercisability
of all or a portion of an SAR. The Committee shall determine whether an SAR may be exercised in cumulative or non-cumulative installments and in part or in full at any time. SARs may be exercised only with
respect to a whole number of SARs. If an SAR is exercised for shares of Restricted Stock, such shares shall be transferred to the holder in book entry form with restrictions on the Shares duly noted, and the holder of such Restricted Stock shall
have the same rights of a stockholder of the Company as a holder of a Restricted Stock Award would have pursuant to Section 3.2(d). Prior to the exercise of an SAR, the holder of such SAR shall have no rights as a stockholder of the Company
with respect to the shares of Common Stock subject to such SAR. 
 (d) Method of Exercise. SARs may be exercised (i) by specifying
the whole number of SARs which are being exercised in the manner prescribed by the Company and (ii) by executing such documents as the Company may reasonably request. No shares of Common Stock shall be issued and no certificate representing
Common Stock or cash payment shall be delivered until any withholding taxes thereon, as described in Section 5.5, have been paid (or arrangement made for such payment to the Company’s satisfaction). 

2.3 Termination of Employment or Service. All of the terms relating to the exercise, cancellation or other disposition of an Option or SAR upon a
termination of employment or service with the Company of the holder of such Option or SAR, as the case may be, whether by reason of disability, retirement, death or any other reason, shall be determined by the Committee and set forth in the
applicable award Agreement. 
 2.4 No Repricing. The Committee shall not, without the approval of stockholders of the Company, (a) reduce the
purchase price or base price of any outstanding Option or SAR, (b) cancel any outstanding Option or SAR in exchange for another Option or SAR with a lower purchase price or base price, (c) cancel any outstanding Option or SAR in exchange
for cash or another award if the purchase price of the Option or the base price of the SAR exceeds the Fair Market Value of a share of Common Stock on the date of such cancellation, or (d) take any other action that would constitute a
“repricing,” as such term is used in Section 303A.08 of the New York Stock Exchange Listed Company Manual, in each case other than in connection with a Change in Control or the adjustment provisions set forth in Section 5.7. 

2.5 No Dividend Equivalents. Notwithstanding anything in this Plan or an Agreement to the contrary, no Option or SAR shall be eligible to earn dividend
equivalents with respect any shares of Common Stock subject to the Option or SAR. 
 III. STOCK AWARDS 

3.1 Stock Awards. The Committee may, in its discretion, grant Stock Awards to such eligible persons as may be selected by the Committee. The Agreement
relating to a Stock Award shall specify whether the Stock Award is a Restricted Stock Award, a Restricted Stock Unit Award or an Other Stock-Based Award. 

3.2 Terms of Restricted Stock Awards. Restricted Stock Awards shall be subject to the following terms and conditions and shall contain such additional
terms and conditions, not inconsistent with the terms and conditions of this Plan, as the Committee shall deem advisable. 
 (a) Number of Shares and
Other Terms. The number of shares of Common Stock subject to a Restricted Stock Award and the Restriction Period, Performance Period (if any) and Performance Measures (if any) applicable to a Restricted Stock Award shall be
determined by the Committee. 
 (b) Vesting and Forfeiture. The Agreement relating to a Restricted Stock Award shall provide, in the
manner determined by the Committee, in its discretion, and subject to the provisions of this Plan, for the vesting of the 

 
shares of Common Stock subject to such award (i) if the holder of such award remains continuously in the employment or service of the Company during the specified Restriction Period and
(ii) if specified Performance Measures (if any) are satisfied or met during a specified Performance Period, and for the forfeiture of the shares of Common Stock subject to such award (x) if the holder of such award does not remain
continuously in the employment or service of the Company during the specified Restriction Period or (y) if specified Performance Measures (if any) are not satisfied or met during a specified Performance Period. 

(c) Stock Issuance. During the Restriction Period, the shares of Restricted Stock shall be held by a custodian in book entry form with restrictions on
such shares duly noted. Upon termination of any applicable Restriction Period (and the satisfaction or attainment of any applicable Performance Measures), subject to the Company’s right to require payment of any taxes in accordance with
Section 5.5, the restrictions shall be removed from the requisite number of any shares of Common Stock that are held in book entry form. 
 (d)
Rights with Respect to Restricted Stock Awards. Unless otherwise set forth in the Agreement relating to a Restricted Stock Award, and subject to the terms and conditions of a Restricted Stock Award, the holder of such award shall have all rights
as a stockholder of the Company, including, but not limited to, voting rights, the right to receive dividends and the right to participate in any capital adjustment applicable to all holders of Common Stock; provided, however, that a distribution or
dividend with respect to shares of Common Stock, including a regular cash dividend, shall be deposited with the Company and shall be subject to the same restrictions as the shares of Common Stock with respect to which such distribution was made.

3.3 Terms of Restricted Stock Unit Awards. Restricted Stock Unit Awards shall be subject to the following terms and conditions and shall contain such
additional terms and conditions, not inconsistent with the terms and conditions of this Plan, as the Committee shall deem advisable. 
 (a) Number of
Shares and Other Terms. The number of shares of Common Stock subject to a Restricted Stock Unit Award and the Restriction Period, Performance Period (if any) and Performance Measures (if any) applicable to a Restricted Stock Unit
Award shall be determined by the Committee. 
 (b) Vesting and Forfeiture. The Agreement relating to a Restricted Stock Unit Award shall
provide, in the manner determined by the Committee, in its discretion, and subject to the provisions of this Plan, for the vesting of such Restricted Stock Unit Award (i) if the holder of such award remains continuously in the employment or
service of the Company during the specified Restriction Period and (ii) if specified Performance Measures (if any) are satisfied or met during a specified Performance Period, and for the forfeiture of the shares of Common Stock subject to such
award (x) if the holder of such award does not remain continuously in the employment or service of the Company during the specified Restriction Period or (y) if specified Performance Measures (if any) are not satisfied or met during a
specified Performance Period. 
 (c) Settlement of Vested Restricted Stock Unit Awards. The Agreement relating to a Restricted Stock Unit Award shall
specify (i) whether such award may be settled in shares of Common Stock or cash or a combination of both and (ii) whether the holder shall be entitled to receive dividend equivalents, and, if determined by the Committee, interest on, or
the deemed reinvestment of, any dividend equivalents, with respect to the number of shares of Common Stock subject to such award. Any dividend equivalents with respect to Restricted Stock Units that are subject to vesting conditions shall be subject
to the same vesting conditions as such Restricted Stock Units. Prior to the settlement of a Restricted Stock Unit Award, the holder of such award shall have no rights as a stockholder of the Company with respect to the shares of Common Stock subject
to such award. 
 3.4 Other Stock-Based Awards. The Committee may grant other awards under the Plan pursuant to which shares of Common Stock (which
may, but need not, be shares of Restricted Stock) are or may in the future be acquired, or awards denominated in stock units (which may, but need not, be Restricted Stock Units), including awards valued using measures other than market value. Such
Other Stock-Based Awards may be granted alone, in addition to or in tandem with any award of any type granted under this Plan and must be consistent with the purposes of this Plan. The Committee shall determine the terms and conditions of such
awards, which may include the right to elective deferral thereof, subject to such terms and conditions as the Committee may specify in its discretion. Any distribution, dividend or dividend equivalents with respect to Other Stock-Based Awards
that are subject to vesting conditions shall be subject to the same vesting conditions as the underlying awards. 

 3.5 Termination of Employment or Service. All of the terms relating to the satisfaction of
Performance Measures and the termination of the Restriction Period or Performance Period relating to a Stock Award, or any forfeiture and cancellation of such award upon a termination of employment or service with the Company of the holder of such
award, whether by reason of disability, retirement, death or any other reason, shall be determined by the Committee and set forth in the applicable award Agreement. 

IV. PERFORMANCE AWARDS 
 4.1
Performance Awards. The Committee may, in its discretion, grant Performance Awards to such eligible persons as may be selected by the Committee. 

4.2 Terms of Performance Awards. Performance Awards shall be subject to the following terms and conditions and shall contain such additional terms and
conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable. 
 (a) Number of Performance Shares or Performance Units
and Performance Measures. The number of Performance Shares or Performance Units subject to, or the specified amount of cash payable under, a Performance Award and the Performance Measures and Performance Period applicable to a
Performance Award shall be determined by the Committee. 
 (b) Vesting and Forfeiture. The Agreement relating to a Performance Award
shall provide, in the manner determined by the Committee, in its discretion, and subject to the provisions of this Plan, for the vesting, settlement or payment of such Performance Award if the specified Performance Measures are satisfied or met
during the specified Performance Period and for the forfeiture of such award if the specified Performance Measures are not satisfied or met during the specified Performance Period. 

(c) Settlement of Performance Awards. The Agreement relating to a Performance Award shall specify whether such award shall be for Performance Shares or
Performance Units and whether (i) Performance Shares shall be settled in shares of Common Stock, shares of Restricted Stock, or a combination of both and (ii) Performance Units shall be settled in shares of Common Stock, cash or a
combination of both. If a Performance Award is settled in shares of Restricted Stock, such shares of Restricted Stock shall be issued to the holder in book entry form and the holder of such Restricted Stock shall have the same rights of a
stockholder of the Company as a holder of a Restricted Stock Award would have pursuant to Section 3.2(d). Prior to the settlement of a Performance Award in shares of Common Stock, including Restricted Stock, the holder of such award shall have
no rights as a stockholder of the Company. Any distribution, dividend or dividend equivalents with respect to Performance Awards that are subject to vesting conditions shall be subject to the same vesting conditions as the underlying awards. 

4.3 Termination of Employment or Service. All of the terms relating to the satisfaction of Performance Measures and the termination of the Performance
Period relating to a Performance Award, or any forfeiture and cancellation of such award upon the holder’s termination of employment or service with the Company, whether by reason of disability, retirement, death or any other reason, shall be
determined by the Committee and set forth in the applicable award Agreement. 
 V. GENERAL 

5.1 Effective Date and Term of Plan. This Plan shall be submitted to the stockholders of the Company for approval and, if so approved, shall become
effective as of the date of Board approval of the Plan (the “Effective Date”). This Plan shall terminate as of the first annual meeting of the Company’s stockholders to occur on or after the tenth anniversary of the Effective Date,
unless terminated earlier by the Board. Termination of this Plan shall not affect the terms or conditions of any award granted prior to termination. Awards may be made at any time prior to the termination of this Plan. 

 5.2 Amendments. The Board may amend this Plan as it shall deem advisable; provided, however, that no
amendment to the Plan shall be effective without the approval of the Company’s stockholders if (i) stockholder approval is required by applicable law, rule or regulation, including any rule of the New York Stock Exchange, or any other
stock exchange on which the Common Stock is then traded, or (ii) such amendment seeks to modify the Non-Employee Director compensation limit set forth in Section 1.3 hereof or the prohibition on
repricing set forth in Section 2.4 hereof; provided further, that no amendment may materially impair the rights of a holder of an outstanding award without the consent of such holder. 

5.3 Agreement. Each award to a recipient other than a non-employee director under this Plan shall be evidenced
by an Agreement setting forth the terms and conditions applicable to such award and, if required by the Company, executed by the Company and/or executed or electronically accepted by the recipient of such award. Awards shall be effective as of the
effective date set forth in the Agreement. 
 5.4 Non-Transferability. No award shall be
transferable other than by will, the laws of descent and distribution or pursuant to beneficiary designation procedures approved by the Company or, to the extent expressly permitted in the Agreement relating to such award, to the holder’s
family members, a trust or entity established by the holder for estate planning purposes or a charitable organization designated by the holder, in each case, without consideration. Except to the extent permitted by the foregoing sentence or the
Agreement relating to an award, each award may be exercised or settled during the holder’s lifetime only by the holder or the holder’s legal representative or similar person. Except as permitted by the first sentence of this
Section 5.4, no award may be sold, transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by operation of law or otherwise) or be subject to execution, attachment or similar process. Upon any attempt to so
sell, transfer, assign, pledge, hypothecate, encumber or otherwise dispose of any award, such award and all rights under the award shall immediately become null and void. 

5.5 Tax Withholding. The Company shall have the right to require, prior to the issuance or delivery of any shares of Common Stock or the payment of any
cash pursuant to an award, payment by the holder of such award of any Federal, state, local or other taxes which may be required to be withheld or paid in connection with such award. An Agreement may provide that (a) the Company shall withhold
whole shares of Common Stock which would otherwise be delivered to a holder, having an aggregate Fair Market Value determined as of the date the obligation to withhold or pay taxes arises in connection with an award (the “Tax Date”), or
withhold an amount of cash which would otherwise be payable to a holder, in the amount necessary to satisfy any such obligation or (b) the holder may satisfy any such obligation by any of the following means: (i) a cash payment to the
Company; (ii) delivery to the Company (either actual delivery or by attestation procedures established by the Company) of previously owned whole shares of Common Stock having an aggregate Fair Market Value, determined as of the Tax Date, equal
to the amount necessary to satisfy any such obligation; (iii) authorizing the Company to withhold whole shares of Common Stock which would otherwise be delivered having an aggregate Fair Market Value, determined as of the Tax Date, or withhold
an amount of cash which would otherwise be payable to a holder, in either case equal to the amount necessary to satisfy any such obligation; (iv) a cash payment by a broker-dealer acceptable to the Company to whom the participant has submitted
an irrevocable notice of exercise or notice of same-day sale or (v) any combination of (i), (ii) and (iii) or by any other method established by the Committee and set forth in an Agreement, in
each case to the extent set forth in the Agreement relating to the award. Shares of Common Stock to be delivered or withheld may not have an aggregate Fair Market Value in excess of the amount determined by applying the minimum statutory withholding
rate (or, if permitted by the Company, such other rate as will not cause adverse accounting consequences under the accounting rules then in effect, and is permitted under applicable IRS withholding rules). Any fraction of a share of
Common Stock which would be required to satisfy such an obligation shall be disregarded and the remaining amount due shall be paid in cash by the holder. 

 5.6 Restrictions on Shares. Each award shall be subject to the requirement that if at any time the
Company determines that the listing, registration or qualification of the shares of Common Stock subject to such award upon any securities exchange or under any law, or the consent or approval of any governmental body, or the taking of any other
action is necessary or desirable as a condition of, or in connection with, the delivery of shares, such shares shall not be delivered unless such listing, registration, qualification, consent, approval or other action shall have been effected or
obtained, free of any conditions not acceptable to the Company. 
 5.7 Adjustment. In the event of any equity restructuring (within the meaning of
Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation—Stock Compensation or any successor or replacement accounting standard) that causes the per share value of shares of Common Stock to change, such as
a stock dividend, stock split, spinoff, rights offering or recapitalization through an extraordinary cash dividend, the number and class of securities available under this Plan, the terms of each outstanding Option and SAR (including the number and
class of securities subject to each outstanding Option or SAR and the purchase price or base price per share), the terms of each outstanding Stock Award (including the number and class of securities subject thereto), and the terms of each
outstanding Performance Award (including the number and class of securities subject thereto, if applicable), shall be appropriately adjusted by the Committee, such adjustments to be made in the case of outstanding Options and SARs in accordance with
Section 409A of the Code. In the event of any other change in corporate capitalization, including a merger, consolidation, reorganization, or partial or complete liquidation of the Company, such equitable adjustments described in the foregoing
sentence may be made as determined to be appropriate and equitable by the Committee to prevent dilution or enlargement of rights of participants. In either case, the decision of the Committee regarding any such adjustment shall be final, binding and
conclusive. 
 5.8 Change of Control. 
 (a)
Notwithstanding any provision in this Plan or any Agreement, in the event of a Change in Control, the Board (as constituted prior to such Change in Control) may, in its discretion: 

(i) require that (A) some or all outstanding Options and SARs shall immediately become exercisable in full or in part, either immediately or upon a
subsequent termination of employment, (B) the Restriction Period applicable to some or all outstanding Stock Awards shall lapse in full or in part, either immediately or upon a subsequent termination of employment, (C) the Performance
Period applicable to some or all outstanding awards shall lapse in full or in part, and (D) the Performance Measures applicable to some or all outstanding awards shall be deemed to be satisfied at the target, maximum or any other interim level;

 (ii) require that shares of stock of the corporation resulting from or succeeding to the business of the Company pursuant to such Change in Control, or a
parent corporation, or other property with an equivalent Fair Market Value, be substituted for some or all of the shares of Common Stock subject to an outstanding award, with an appropriate and equitable adjustment to such award as determined by the
Board in accordance with Section 5.7; and/or 
 (iii) require outstanding awards, in whole or in part, to be surrendered to the Company by the holder,
and to be immediately cancelled by the Company, and to provide for the holder to receive (A) a cash payment or other property in an amount equal to (1) in the case of an Option or an SAR, the number of shares of Common Stock then subject
to the portion of such Option or SAR surrendered, to the extent such Option or SAR is then exercisable or becomes exercisable pursuant to Section 5.8(a)(i), multiplied by the excess, if any, of the Fair Market Value of a share of Common Stock
as of the date of the Change in Control, over the purchase price or base price per share of Common Stock subject to such Option or SAR, (2) in the case of a Stock Award, the number of shares of Common Stock then subject to the portion of such
award surrendered, to the extent the Restriction Period and Performance Period, if any, on such Stock Award have lapsed or will lapse pursuant to Section 5.8(a)(i) and to the extent that the Performance Measures, if any, have been satisfied or
are deemed satisfied pursuant to Section 5.8(a)(i), multiplied by the Fair Market Value of a share of Common Stock as of the date of the Change in Control, and (3) in the case of a Performance Award, the value of the Performance Shares or
Performance Units then subject to the portion of such award surrendered, to the extent the Performance Period applicable to such award has lapsed or will lapse pursuant to Section 5.8(a)(i) and to the

 
extent the Performance Measures applicable to such award have been satisfied or are deemed satisfied pursuant to Section 5.8(a)(i), (B) shares of capital stock of the corporation
resulting from or succeeding to the business of the Company pursuant to such Change in Control, or such entity’s parent corporation, having a fair market value not less than the amount determined under clause (A) above; or (C) a
combination of the payment of cash or other property pursuant to clause (A) above and the issuance of shares pursuant to clause (B) above. 
 (b)
A “Change in Control” shall be deemed to have occurred if: 
 (i) any person (as that term is used in Sections 13(d) and 14(d) of the
Exchange Act ) (1) is or becomes the beneficial owner (as that term is used in Section 13(d) of the Exchange Act, and the rules and applicable regulations) of 50% or more of the total fair market value or total voting power of the Company
(“Voting Securities”) or (2) acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person) ownership of the stock of the Company
possessing 30% or more of the Voting Securities, excluding, in each case, however, the following: (A) any acquisition directly from the Company, other than an acquisition by virtue of the exercise of a conversion privilege unless the security
being so converted was itself acquired directly from the Company; (B) any acquisition by the Company; (C) any acquisition by an employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the
Company; (D) the acquisition of additional stock or voting power by a person considered to own more than 50% of the total fair market value or Voting Securities in the case of clause (1) of this clause (i) or by a person considered to
own more than 30% of the Voting Securities in the case of clause (2) of this clause (i) or (E) any acquisition pursuant to a transaction that complies with clauses (A), (B) and (C) of clause (iii) below; 

(ii) more than 50% of the members of the Board shall, during a 12-month period, cease to be Continuing Directors
(which term, as used in this Plan, means the directors of the Company: (A) who were members of the Board on the Effective Date; or (B) who subsequently became directors of the Company and who were elected or designated to be candidates for
election as nominees of the Board, or whose election or nomination for election by the Company’s stockholders was otherwise approved, by a vote of a majority of the Continuing Directors then on the Board but shall not include, in any event, any
individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14(a)-11 of Regulation 14A promulgated under the
Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a person other than the Board); or 
 (iii) there is
consummated a merger or consolidation of the Company with, or, any transaction or series of transactions in which, substantially all of the business or assets of the Company shall be sold or otherwise acquired by, another corporation or entity
unless, as a result of the transaction(s): (A) the stockholders of the Company immediately prior to the transaction(s) shall beneficially own, directly or indirectly, at least 60% of the combined Voting Securities of the surviving, resulting or
transferee corporation or entity (including, without limitation, a corporation that as a result of such transaction owns the Company or all or substantially all of the assets of the Company, either directly or through one or more subsidiaries)
(“Newco”) immediately after in substantially the same proportions as their ownership immediately prior to such corporate transaction; (B) no person beneficially owns (as such terms are used in Sections 13(d) and 14(d) of the Exchange
Act, and the rules and applicable regulations), directly or indirectly, 30% or more of the combined Voting Securities of Newco immediately after such corporate transaction except to the extent that such ownership of the Company existed prior to such
corporate transaction, and (C) more than 50% of the members of the board of directors of Newco shall be Continuing Directors. 
 (iv) the stockholders
of the Company approve a complete liquidation or dissolution of the Company; provided, that with respect to any nonqualified deferred compensation that becomes payable on account of the Change in Control, the transaction or event described in
clause (i), (ii), (iii) or (iv) shall also constitute a “change in control event,” as defined in Treasury Regulation § 1.409A-3(i)(5) if required in order for the payment not
to violate Section 409A of the Code. 
 5.9 Deferrals. The Committee may determine that the delivery of shares of Common Stock or the payment of
cash, or a combination of both, upon the settlement of all or a portion of any award shall be deferred, or the Committee may, in its sole discretion, approve deferral elections made by holders of awards. Deferrals shall be for such periods and upon
such terms as the Committee may determine in its sole discretion, subject to the requirements of Section 409A of the Code. 

 5.10 No Right of Participation, Employment or Service. Unless otherwise set forth in an employment
agreement, no person shall have any right to participate in this Plan. Neither this Plan nor any award shall confer upon any person any right to continued employment by or service with the Company, any Subsidiary or any affiliate of the Company or
affect in any manner the right of the Company, any Subsidiary or any affiliate of the Company to terminate the employment or service of any person at any time without liability. 

5.11 Rights as Stockholder. No person shall have any right as a stockholder of the Company with respect to any shares of Common Stock or other equity
security of the Company which is subject to an award unless and until such person becomes a stockholder of record with respect to such shares of Common Stock or equity security. 

5.12 Designation of Beneficiary. To the extent permitted by the Company and in accordance with the requirements any third-party stock plan
administrator, a holder of an award may file with the Company a written designation of one or more persons as such holder’s beneficiary or beneficiaries (both primary and contingent) in the event of the holder’s death or incapacity. To the
extent an outstanding Option or SAR granted is exercisable, such beneficiary or beneficiaries shall be entitled to exercise such Option or SAR pursuant to procedures prescribed by the Company. Each beneficiary designation shall become effective only
when filed in writing with the Company during the holder’s lifetime on a form prescribed by the Company. The spouse of a married holder domiciled in a community property jurisdiction shall join in any designation of a beneficiary other than
such spouse. The filing with the Company of a new beneficiary designation shall cancel all previously filed beneficiary designations. If a holder fails to designate a beneficiary, or if all designated beneficiaries of a holder predecease the holder,
then each outstanding award held by such holder, to the extent vested or exercisable, shall be payable to or may be exercised by such holder’s executor, administrator, legal representative or similar person. 

5.13 Awards Subject to Clawback. The awards granted under this Plan and any cash payment or shares of Common Stock delivered pursuant to such an award
are subject to forfeiture, recovery by the Company or other action pursuant to the applicable award Agreement or any clawback or recoupment policy which the Company may adopt from time to time, including without limitation any such policy which the
Company may be required to adopt under the Dodd-Frank Wall Street Reform and Consumer Protection Act and implementing rules and regulations thereunder, or as otherwise required by law. 

5.14 Governing Law. This Plan, each award and the related Agreement, and all determinations made and actions taken under the Plan, each award and
related Agreement, to the extent not otherwise governed by the Code or the laws of the United States, shall be governed by, and construed in accordance with, the laws of the State of Delaware without giving effect to principles of conflicts of laws.

 5.15 Compliance with Section 409A of the Code. To the extent that the Board determines that any award granted hereunder is
subject to Section 409A of the Code, the Plan and applicable Agreement will be interpreted in accordance with Section 409A of the Code. Notwithstanding anything to the contrary in the Plan (and unless the Agreement specifically provides
otherwise), if the shares of Common Stock are publicly traded, and if a holder holding an award that constitutes “deferred compensation” under Section 409A of the Code is a “specified employee” for purposes of
Section 409A of the Code, no distribution or payment of any amount that is due upon a “separation from service” (as defined in Section 409A of the Code without regard to alternative definitions thereunder) will be issued or paid
before the date that is six months following the date of such holder’s “separation from service” (as defined in Section 409A of the Code without regard to alternative definitions thereunder) or, if earlier, the date of the
holder’s death, unless such distribution or payment can be made in a manner that complies with Section 409A of the Code, and any amounts so deferred will be paid in a lump sum on the day after such six month period elapses, with the
balance paid thereafter on the original schedule. 

 5.16 Replacement and Substitute Awards. Notwithstanding anything in this Plan to the contrary,
each Option and Restricted Stock Unit Award that is intended to be a Replacement and Substitute Award granted in connection with the spin-off of the Company from Fortune Brands shall be subject to the terms
and conditions of the Fortune Brands award to which it relates, subject to the adjustment of such award by the Compensation Committee of the Board of Directors of Fortune Brands and the terms of the Employee Matters Agreement; provided that
following the date of such spin-off, each such award shall be administered by the Committee pursuant to the terms of this Plan and any performance metrics applicable to the awards prior to the spin-off shall cease to be applicable and the vesting level of such awards shall be determined by the Compensation Committee of the Board of Directors of Fortune Brands. 

5.17 Foreign Employees. Without amending this Plan, the Committee may grant awards to eligible persons who are foreign nationals and/or reside
outside the U.S. on such terms and conditions different from those specified in this Plan as may in the judgment of the Committee be necessary or desirable to foster and promote achievement of the purposes of this Plan, and, for this purpose, the
Committee may make such modifications, amendments, procedures, subplans and the like as may be necessary or advisable to comply with provisions of laws in other countries or jurisdictions in which the Company or its Subsidiaries operates or has
employees.

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