Document:

exv10wbwiixiy

 

EXHIBIT
10.b.ii(i)

[Form for Non-Employee Directors]

Restricted Stock Award Agreement

[Date]

<Name>

<Address1>

<Address2>

<Address3>

<Address4>

Dear <Salutation>:

     On behalf of the Company, I am pleased to inform you that on [date] the Board of Directors
granted you an Award of Restricted Stock, pursuant to the Non-Employee Directors Equity Program
(the “Program”) under the Company’s 2005 Long Term Stock Incentive Plan (the “Plan”), of shares of
the Company’s $1.00 par value Common Stock. This letter and the attached Appendix (the
“Agreement”) state the terms of the Award and contain other provisions which on your acceptance
commit the Company and you, so I urge you to read it them carefully. You should also read the
Program, the Plan, and the Prospectus dated [date], which are available from the Company. Enclosed
are copies of these documents as well as our latest annual report to stockholders and proxy
statement to the extent our records indicate you may not have previously received them.

Terms of Award:

     Certificates for the shares of stock evidencing the Restricted Stock will not be issued but
the shares will be registered in your name in book entry form promptly after your acceptance of
this Award. You will be entitled to vote and receive any cash dividends on the Restricted Stock,
but you will not be able to obtain a stock certificate or sell, encumber or otherwise transfer the
shares except in accordance with the Plan.

     The number of shares of Restricted Stock you have been awarded is [number of shares].

     Provided since the date of the Award you have continuously served as an Eligible Director, as
hereinafter defined, the restrictions on 20% of the shares will automatically lapse on January 1, ___ and on each January 1 thereafter until all shares are free of restrictions, in each case based on
the initial number of shares. An Eligible Director is any Director of the Company who is not an
employee of the Company and who receives a fee for services as a Director. If your term as an
Eligible Director should be terminated by reason of your death or permanent and total disability,
or if following retirement from your term as an Eligible Director you thereafter die, the
restrictions on all Restricted Stock will lapse and your rights to the shares will become vested on
the date of such termination. If your term as an Eligible Director terminates by reason of
retirement on or after normal retirement age as specified in the Company’s Corporate Governance
Guidelines, the restrictions contained in the Award shall continue to lapse in the same manner as
though your term had not terminated. If your term as an Eligible Director is terminated for any
reason other than death or permanent and total disability or retirement on or after normal
retirement age as specified in the Company’s Corporate Governance Guidelines, while restrictions
remain in effect, the Restricted Stock that has not vested shall be automatically forfeited and
transferred back to the Company; provided, however, that a pro rata portion of the Restricted Stock
which would have vested on January 1 of the year following the year of such termination shall vest
on the date of termination, based upon the portion of the year during which you served as an
Eligible Director of the Company.

     Notwithstanding the foregoing and as provided in the Plan, if at any time you engage in an
activity following your termination of service which in the sole judgment of the Board of Directors
is detrimental to the interests of the Company, a subsidiary or an affiliated company, all shares
of Restricted Stock which remain subject

 

 

to restrictions shall be forfeited to the Company. You acknowledge that such activity includes,
but is not limited to, “Business Activities” (as defined in the Appendix) for purposes of this
Award and for purposes of all other outstanding awards of restricted stock and options that are
subject to comparable forfeiture provisions.

     As restrictions lapse, a certificate for the number of shares of Restricted Stock as to which
restrictions have lapsed will be forwarded to you or the person or persons entitled to the shares.

Other Terms and Acceptance:

     We agree that all of the terms and conditions of the Award are reflected in this Agreement and
in the Program and Plan, and that there are no other commitments or understandings currently
outstanding with respect to any other awards of restricted stock or stock options except as may be
evidenced by agreements duly executed by you and the Company.

     By accepting this Award you: (a) represent that you are familiar with the provisions of the
Program and Plan and agree to their incorporation in this Agreement; (b) agree to provide promptly
such information with respect to the Restricted Stock as may be requested by the Company and to
comply with any requirements of applicable federal and other laws with respect to withholding or
providing for the payment of required taxes; and (c) acknowledge that all of your rights to this
Award are embodied herein and in the Program and Plan.

     Section 3 of the Plan provides that the Organization and Compensation Committee shall have the
authority to make all determinations that may arise in connection with the Plan. It further
provides that the Organization and Compensation Committee interpretation of the terms and
provisions of the Plan shall be final and conclusive.

     Please complete your mailing address and social security number as indicated below, sign, date
and return the copy of this Award Agreement to Eugene A. Gargaro, Jr., our Vice President and
Secretary, as soon as possible in order that this Award may become effective. Since the Restricted
Stock cannot be registered in your name until we receive the signed copies of this Agreement, and
since dividend, voting and other rights will only become effective at that time, your prompt
attention and acceptance will be greatly appreciated.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	MASCO CORPORATION	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	[Name]	 	 
	 

	 	[Title]	 	 
	 
	 	 	 	 	 	 
	I accept and agree to the foregoing.
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Signature of Recipient)	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Mailing Address)	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Social Security Number)	 	 
	 
	 	 	 	 	 	 
	 

	 	Dated:	 	 	 	 
	 

	 	 	 	 
	 	 

2

 

Appendix to Award Agreement

     Masco Corporation (the “Company”) and you agree that all of the terms and conditions of the
award of Restricted Shares (the “Grant”) contained in the foregoing letter agreement into which
this Appendix is incorporated (the “Agreement”) are reflected in the Agreement and in the 2005 Long
Term Stock Incentive Plan (the “Plan”), and that there are no other commitments or understandings
currently outstanding with respect to any awards except as may be evidenced by agreements duly
executed by you and the Company.

     By signing the Agreement you acknowledge acceptance of the Grant and receipt of the documents
referred to in the Agreement and represent that you have read the Plan, are familiar with its
provisions, and agree to its incorporation in the Agreement and all of the other terms and
conditions of the Agreement. Such acceptance, moreover, evidences your agreement promptly to
provide such information with respect to shares acquired pursuant to the Grant, as may be requested
by the Company.

     In addition you agree, in consideration for the Grant, and regardless of whether restrictions
on shares subject to the Grant have lapsed, while you are a Director of the Company and for a
period of one year following any termination of your term as a Director of the Company, other than
a termination following a Change in Control, not to engage in, and not to become associated in a
“Prohibited Capacity” (as hereinafter defined) with any other entity engaged in, any “Business
Activities” (as hereinafter defined) and not to encourage or assist others in encouraging any
employee of the Company or any of its subsidiaries to terminate employment or to become engaged in
any such Prohibited Capacity with an entity engaged in any Business Activities. “Business
Activities” shall mean the design, development, manufacture, sale, marketing or servicing of any
product or providing of services competitive with the products or services of the Company or any
subsidiary at any time while the Grant is outstanding, to the extent such competitive products or
services are distributed or provided either (1) in the same geographic area as are such products or
services of the Company or any of its subsidiaries, or (2) to any of the same customers as such
products or services of the Company or any of its subsidiaries are distributed or provided.
“Prohibited Capacity” shall mean being associated with an entity as a director, employee,
consultant, investor or another capacity where (1) confidential business information of the Company
or any of its subsidiaries could be used in fulfilling any of your duties or responsibilities with
such other entity, or (2) an investment by you in such other entity represents more than 1% of such
other entity’s capital stock, partnership or other ownership interests.

     Should you either breach or challenge in judicial, arbitration or other proceedings the
validity of any of the restrictions contained in the preceding paragraph, by accepting this Grant
you agree, independent of any equitable or legal remedies that the Company may have and without
limiting the Company’s right to any other equitable or legal remedies, to pay to the Company in
cash immediately upon the demand of the Company (1) the amount of income realized for income tax
purposes from this Grant, net of all federal, state and other taxes payable on the amount of such
income, but only to the extent such income is realized from restrictions lapsing on shares on or
after the termination of your term as a Director of the Company or within the two year period prior
to the date of such termination, plus (2) all costs and expenses of the Company in any effort to
enforce its rights under this or the preceding paragraph. The Company shall have the right to set
off or withhold any amount owed to you by the Company or any of its subsidiaries or affiliates for
any amount owed to the Company by you hereunder.

     By accepting this Grant you: (a) agree to comply with the requirements of applicable federal
and other laws with respect to withholding or providing for the payment of required taxes; and (b)
acknowledge that all of your rights to the Grant are embodied in the Agreement and in the
Plan.

3

 

     Section 3 of the Plan provides, in part, that the Committee appointed by the Company’s Board
of Directors to administer the Plan shall have the authority to interpret the Plan and Grant
agreements, and decide all questions and settle all controversies and disputes relating thereto. It
further provides that the determinations, interpretations and decisions of the Committee are within
its sole discretion and are final, conclusive and binding on all persons. In addition, you and the
Company agree that if for any reason a claim is asserted against the Company or any of its
subsidiaries or affiliated companies or any officer, employee or agent of the foregoing which (1)
is within the scope of the Company’s Dispute Resolution Policy (the terms of which are
incorporated herein); (2) subverts the provisions of Section 3 of the Plan; or (3) involves any of
the provisions of the Agreement or the Plan or the provisions of any other restricted stock awards
or option or other agreements relating to Company Common Stock or the claims of yourself or any
persons to the benefits thereof, in order to provide a more speedy and economical resolution, the
Dispute Resolution Policy shall be the sole and exclusive remedy to resolve all disputes, claims or
controversies which are set forth above, and you shall be deemed to be an employee within the scope
of the Dispute Resolution Policy and you and the Company shall be bound as if you were an employee
for all claims within the scope of the Dispute Resolution Policy, except as otherwise agreed in
writing by you and the Company. It is our mutual intention that any arbitration award entered under
the Dispute Resolution Policy will be final and binding and that a judgment on the award may be
entered in any court of competent jurisdiction. Notwithstanding the provisions of the Dispute
Resolution Policy, however, the parties specifically agree that any mediation or arbitration
required by this paragraph shall take place at the offices of the American Arbitration Association
located in the metropolitan Detroit area or such other location in the metropolitan Detroit area as
the parties might agree. The provisions of this paragraph: (a) shall survive the termination or
expiration of this Agreement, (b) shall be binding upon the Company’s and your respective
successors, heirs, personal representatives, designated beneficiaries and any other person
asserting a claim based upon the Agreement, (c) shall supersede the provisions of any prior
agreement between you and the Company with respect to any of the Company’s option, restricted stock
or other stock-based incentive plans to the extent the provisions of such other agreement requires
arbitration between you and the Company, and (d) may not be modified without the consent of the
Company. Subject to the exception set forth above, you and the Company acknowledge that neither of
us nor any other person asserting a claim described above has the right to resort to any federal,
state or local court or administrative agency concerning any such claim and the decision of the
arbitrator shall be a complete defense to any action or proceeding instituted in any tribunal or
agency with respect to any dispute.

     The Agreement shall be governed by and interpreted in accordance with Michigan law.

4exv10wbwiixiiy

 

Exhibit
10.b.ii(ii)

[Form for Non-Employee Directors]

Stock Option Grant Agreement

[Date]

<Name>

<Address1>

<Address2>

<Address3>

<Address4>

Dear <Salutation>:

     On behalf of the Company, I am pleased to inform you that on [date], the Board of Directors
granted you a non-qualified stock option pursuant to the Non-Employee Directors Equity Program (the
“Program”) under the Company’s 2005 Long Term Stock Incentive Plan (the “Plan”), subject to the
conditions set forth below and in the Appendix attached hereto. This letter and the attached
Appendix (the “Agreement”) state the terms of the option and contain other provisions which on your
acceptance commit the Company and you, so I urge you to read them carefully. You should also read
the Program, the Plan and Prospectus dated [date] covering the shares which are the subject of this
option. Enclosed are copies of these documents as well as our latest annual report to stockholders
and proxy statement to the extent our records indicate you may not have previously received them.
Copies are also available upon request to the Company. We suggest that you review each of these
documents. The federal income tax attributes of non-qualified stock options are discussed in the
Prospectus. This option does not qualify for the federal tax benefits of an “incentive stock
option” under the Internal Revenue Code.

     This option, if accepted by you, grants you the right to purchase [no. of shares] shares of
Company Common Stock, $1.00 par value, at a price of [$                    ] per share, which the Board has
determined is the fair market value of a share of the Company Common Stock on the date of grant.

When the Option is Exercisable and Termination

     This option is exercisable cumulatively in installments of 20% commencing as of [date], 20% as
of [date], 20% as of [date], 20% as of [date] and 20% as of [date]; provided that, subject to the
last sentence of this paragraph, on each date of exercise you are an Eligible Director, as
hereinafter defined. An Eligible Director is any Director of the Company who is not an employee of
the Company and who receives a fee for services as a Director. All installments of the option as
above described must be exercised no later than [expiration date]; all unexercised installments or
portions thereof shall lapse and the right to purchase shares pursuant to this option shall be of
no further effect after such date. If during the option exercise periods your term as an Eligible
Director is terminated for any reason, this option shall terminate in accordance with the following
paragraph, the Program and Section 6 of the Plan.

 

 

     Notwithstanding the foregoing or anything in the Plan:

     (i) If your service as a Director is terminated by reason of permanent and total
disability, any portion of the option that is not then exercisable shall become fully exercisable
and shall remain exercisable in accordance with its terms and the provisions of the Program and
Plan until the earlier of the expiration of the original option term or one year after death.

     (ii) If you retire on or after normal retirement age as specified in the Company’s Corporate
Governance Guidelines, the option shall continue to become exercisable and shall remain exercisable
in accordance with its terms and the provisions of the Program and Plan.

     (iii) If your service as a Director terminates for any reason other than as a result of
death, permanent and total disability or retirement due to age, any portion of the option that is
then exercisable will remain exercisable until the earlier of the expiration of the original option
term or one year after death.

     (iv) If your service as a Director terminates as a result of death, all unexercisable
installments of the option shall thereupon become exercisable and at any time or times within one
year after death such options may be exercised as to all or any unexercised portion of the option.

     As provided in the Plan, if at any time you engage in an activity following your termination
of service which in the sole judgment of the Board of Directors is detrimental to the interests of
the Company, a subsidiary or an affiliated company, all unexercised installments or portions of the
option will be forfeited to the Company. You acknowledge that such activity includes, but is not
limited to, “Business Activities” (as defined in the Appendix) for purposes of this option and for
purposes of all other outstanding awards of restricted stock and options that are subject to
comparable forfeiture provisions.

Acceptance

     We agree that all of the terms and conditions of this option are reflected in this Agreement
and the Program and Plan, and that there are no other commitments or understandings currently
outstanding with respect to any other awards of stock options or restricted stock except as may be
evidenced by agreements duly executed by you and the Company.

     By accepting this option you: (a) represent that you are familiar with the provisions of the
Program and Plan and agree to their incorporation in this Agreement; (b) agree to provide promptly
such information with respect to shares acquired pursuant to this option as may be requested by the
Company and to comply with any requirements of applicable federal and other laws with respect to
withholding or providing for the payment of required taxes; and (c) acknowledge that all of your
rights to this option are embodied herein and in the Program and Plan.

     Section 3 of the Plan provides that the Organization and Compensation Committee shall have the
authority to make all determinations that may arise in connection with the Plan. It further
provides that the Organization and Compensation Committee’s interpretation of the terms and
provisions of the Plan shall be final and conclusive.

2

 

     Please complete your mailing address and Social Security number as indicated below and sign,
date and return the copy of this Agreement to Eugene A. Gargaro, Jr., our Vice President and
Secretary, as soon as possible in order that this option grant may become effective.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	MASCO CORPORATION	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	[Name]	 	 
	 

	 	[Title]	 	 
	 
	 	 	 	 	 	 
	I accept and agree to all the foregoing terms and conditions.
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Signature of Recipient)	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Mailing Address)	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Social Security Number)	 	 
	 
	 	 	 	 	 	 
	 

	 	Dated:	 	 	 	 
	 

	 	 	 	 
	 	 

3

 

	 	 	 	 	 

Appendix to Option Agreement

     Masco Corporation (the “Company”) and you agree that all of the terms and conditions of the
grant of the option (the “Option”) contained in the foregoing letter agreement into which this
Appendix is incorporated (the “Agreement”) are reflected in the Agreement and in the 2005 Long
Term Stock Incentive Plan (the “Plan”), and that there are no other commitments or understandings
currently outstanding with respect to any other awards except as may be evidenced by agreements
duly executed by you and the Company.

     By signing the Agreement you acknowledge acceptance of the Option and receipt of the documents
referred to in the Agreement and represent that you have read the Plan, are familiar with its
provisions, and agree to its incorporation in the Agreement and all of the other terms and
conditions of the Agreement. Such acceptance, moreover, evidences your agreement promptly to
provide such information with respect to shares acquired pursuant to the Option, as may be
requested by the Company.

     In addition you agree, in consideration for the grant of the Option and regardless of whether
the Option becomes exercisable or is exercised, while you are a Director of the Company and for a
period of one year following the termination of your term as a Director of the Company, other than
a termination following a Change in Control, not to engage in, and not to become associated in a
“Prohibited Capacity” (as hereinafter defined) with any other entity engaged in, any “Business
Activities” (as hereinafter defined) and not to encourage or assist others in encouraging any
employee of the Company or any of its subsidiaries to terminate employment or to become engaged in
any such Prohibited Capacity with an entity engaged in any Business Activities. “Business
Activities” shall mean the design, development, manufacture, sale, marketing or servicing of any
product or providing of services competitive with the products or services of the Company or any
subsidiary at any time the Option is outstanding, to the extent such competitive products or
services are distributed or provided either (1) in the same geographic area as are such products or
services of the Company or any of its subsidiaries, or (2) to any of the same customers as such
products or services of the Company or any of its subsidiaries are distributed or provided.
“Prohibited Capacity” shall mean being associated with an entity as a director, employee,
consultant, investor or another capacity where (1) confidential business information of the
Company or any of its subsidiaries could be used in fulfilling any of your duties or
responsibilities with such other entity, or (2) an investment by you in such other entity
represents more than 1% of such other entity’s capital stock, partnership or other ownership
interests.

     Should you either breach or challenge in judicial or arbitration proceedings the validity of
any of the restrictions contained in the preceding paragraph, by accepting the Option you agree,
independent of any equitable or legal remedies that the Company may have and without limiting the
Company’s right to any other equitable or legal remedies, to pay to the Company in cash immediately
upon the demand of the Company (1) the amount of income realized for income tax purposes from the
exercise of any portion of the Option, net of all federal, state and other taxes payable on the
amount of such income, but only to the extent such exercises occurred on or after the termination
of your term as a Director of the Company or within the two year period prior to the date of such
termination, plus (2) all costs and expenses of the Company in any effort to enforce its rights
under this or the preceding paragraph. The Company shall have the right to set off or withhold any
amount owed to you by the Company or any of its subsidiaries or affiliates for any amount owed to
the Company by you hereunder.

     By accepting the Option you: (a) agree to comply with the requirements of applicable federal
and other laws with respect to withholding or providing for the payment of required taxes; and (b)
acknowledge that all of your rights to the Option are embodied in the Agreement and in the Plan.

4

 

     Section 3 of the Plan provides, in part, that the Committee appointed by the Company’s Board
of Directors to administer the Plan shall have the authority to interpret the Plan and award
agreements, and decide all questions and settle all controversies and disputes relating thereto.
It further provides that the determinations, interpretations and decisions of the Committee are
within its sole discretion and are final, conclusive and binding on all persons. In addition, you
and the Company agree that if for any reason a claim is asserted against the Company or any of its
subsidiaries or affiliated companies or any officer, employee or agent of the foregoing which (1)
is within the scope of the Company’s Dispute Resolution Policy (the terms of which are incorporated
herein); (2) subverts the provisions of Section 3 of the Plan; or (3) involves any of the
provisions of the Agreement or the Plan or the provisions of any other option agreements relating
to Company Common Stock or restricted stock awards or other awards or the claims of yourself or any
persons to the benefits thereof, in order to provide a more speedy and economical resolution, the
Dispute Resolution Policy shall be the sole and exclusive remedy to resolve all disputes, claims or
controversies which are set forth above, and you shall be deemed to be an employee within the scope
of the Dispute Resolution Policy and you and the Company shall be bound as if you were an employee
for all claims within the scope of the Dispute Resolution Policy, except as otherwise agreed in
writing by you and the Company. It is our mutual intention that any arbitration award entered
under the Dispute Resolution Policy will be final and binding and that a judgment on the award may
be entered in any court of competent jurisdiction. Notwithstanding the provisions of the Dispute
Resolution Policy, however, the parties specifically agree that any mediation or arbitration
required by this paragraph shall take place at the offices of the American Arbitration Association
located in the metropolitan Detroit area or such other location in the metropolitan Detroit area as
the parties might agree. The provisions of this paragraph: (a) shall survive the termination or
expiration of this Agreement, (b) shall be binding upon the Company’s and your respective
successors, heirs, personal representatives, designated beneficiaries and any other person
asserting a claim based upon the Agreement, (c) shall supersede the provisions of any prior
agreement between you and the Company with respect to any of the Company’s option or restricted
stock incentive plans or other awards to the extent the provisions of such other agreement requires
arbitration between you and the Company, and (d) may not be modified without the consent of the
Company. Subject to the exception set forth above, you and the Company acknowledge that neither of
us nor any other person asserting a claim described above has the right to resort to any federal,
state or local court or administrative agency concerning any such claim and the decision of the
arbitrator shall be a complete defense to any action or proceeding instituted in any tribunal or
agency with respect to any dispute.

     The Agreement shall be governed by and interpreted in accordance with Michigan law.

5

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