Document:

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                                                                    EXHIBIT 10.a

                           SUBORDINATED LOAN AGREEMENT

         THIS SUBORDINATED LOAN AGREEMENT, dated as of November 28, 2000
(hereinafter referred to as this "Agreement"), is entered into between
MascoTech, Inc., a Delaware corporation (the "Company"), and Masco Corporation,
a Delaware corporation ("Tailor Shareholder").

         WHEREAS, the Company desires to have the right to sell to Tailor
Shareholder, and Tailor Shareholder is willing to purchase from the Company at
its request, from time to time, up to $100.0 million principal amount of
subordinated debt securities upon the terms and conditions hereinafter set
forth;

         NOW, THEREFORE, the parties agree as follows:

         1. Authorization of Issues of Securities. (a) The Company has
authorized the issuance and delivery of separate series of subordinated debt
securities ("Securities"), such Securities to have substantially the same terms
and provisions as the form of subordinated note attached hereto as Exhibit A.

         (b) The Securities shall be issued in one or more series with the
interest rate on each such series being a rate per annum that is the higher of:
(i) 400 basis points over the average Treasury Rate (as hereinafter defined) for
the week preceding the week in which the notice of purchase referred to in
Paragraph 2 is given to Tailor Shareholder with respect to such series; or (ii)
150 basis points over the Comparable Debt Issuance Rate (as hereinafter defined)
with respect to such series; provided that the interest rate on each series of
the Securities will at the time of issuance not exceed 14.5% per annum;
provided, further, that the applicable interest rate on each series of the
Securities will increase by 1.0% per annum on December 31, 2005 and an
additional 1.5% per annum on December 31, 2007. In the event the Comparable Debt
Issuance Rate is not timely determined with respect to any series of Securities,
the interest rate with respect to such series will be that provided under clause
(i) above until such time as the Comparable Debt Issuance Rate is determined
with respect to such series, whereupon the applicable interest rate will be
retroactively adjusted, if necessary, to be that which would otherwise apply.

         (c) "Treasury Rate" means the rate for noncallable direct obligations
of the United States ("Treasury Notes") having a maturity that ends on June 30,
2009, as published in the Federal Reserve Statistical Release H.15(519) (or any
successor publication provided by the Board of Governors of the Federal Reserve
System) under the heading "Treasury Constant Maturities." If a rate for Treasury
Notes having a maturity that ends on June 30, 2009 has not been so published or
reported for the preceding week as provided above by 1:00 P.M., New York City
time, on the date of a Notice (as hereinafter defined), then the Treasury Rate
shall be calculated by the Company and shall be a yield to maturity (expressed
on a bond
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                                      -2-

equivalent, on the basis of a year of 365 or 366 days, as applicable, and
applied on a daily basis) of the arithmetic mean of the secondary market bid
rates, as of approximately 1:30 P.M., New York City time, on the date of such
Notice, of three leading primary United States government securities dealers
selected by the Company for the purchase of Treasury Notes with a remaining
maturity that ends as nearly close to June 30, 2009 as practicable.

         (d) The "Comparable Debt Issuance Rate" means, with respect to any
series of securities, a per annum rate of interest determined as follows: Each
of the Company and Tailor Shareholder shall select an investment banking firm
within two Business Days from the date the Notice with respect to such series,
and those two investment banking firms shall have one Business Day to select a
third investment banking firm. In the absence of a selection within these
specified time periods, the Company shall be deemed to have selected Donaldson,
Lufkin & Jenrette Securities Corporation and Tailor Shareholder shall be deemed
to have selected Merrill, Lynch & Company and these two investment banking firms
shall be deemed to have selected Salomon Smith Barney Inc. Any other investment
banking firms shall have significant experience and qualifications with respect
to the origination and sale of high yield debt instruments of manufacturing and
industrial companies. Each of the three investment banking firms shall have
until the fifth business day following the date of the Notice to determine, in
its good faith opinion, the per annum rate of interest that the Company would be
required to pay if it were to issue the relevant series of Securities to third
party investors in a transaction negotiated at arm's-length and priced as of the
date of the Notice, and each banker shall set forth its conclusion in a letter
addressed to each of Tailor Shareholder and the Company and delivered to each of
them by 12:00 noon New York City time on the fifth business day from the date of
the Notice given to Tailor Shareholder. The arithmetic mean of the interest
rates determined by each of the three investment banking firms shall be the
Comparable Debt Issuance Rate with respect to the relevant series of Securities.

         (e) Except with respect to voting rights (as specified in Section 7.1
of the form of subordinated note attached hereto as Exhibit A), each issuance of
Securities shall constitute a separate and discrete series of securities and may
be redeemed pursuant to Section 5.1 of the form of subordinated note attached
hereto as Exhibit A without regard to the redemption of any other Securities.

         (f) As used herein, the "date of a Notice" shall mean the date upon
which the Notice has been effectively given under Paragraph 8 hereof.

         2. Obligation to Purchase. (a) Subject to only (i) the accuracy of the
representations and warranties made by the Company pursuant to Paragraph 6
hereof, (ii) the absence of a Bankruptcy Event (as defined below) and (iii)
except as set forth in the proviso to this sentence, the absence of an Event of
Default under the Senior Credit Facilities (collectively, clauses (i), (ii) and
(iii) are referred to as the "Conditions"), Tailor Shareholder agrees to
purchase, at par, at any time or from time to time on or before October 31, 2003
(the "Commitment Expiry Date"), upon written notice delivered by or on behalf of
the Company in the form
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                                      -3-

of Exhibit B hereto (the "Notes"), up to $100.0 million aggregate principal
amount of Securities (the "Commitment"); provided that, notwithstanding the
failure of the condition referred to in clause (iii), Tailor Shareholder shall
be obligated to so purchase Securities to the extent that the Notice includes a
certification to the effect that (1) the Company will use the proceeds from the
issuance of such series of Securities solely to meet cash obligations in respect
of any of the 4-1/2% Convertible Subordinated Debentures Due December 15, 2003
(the "Convertible Debentures") upon maturity, acceleration or exercise of the
conversion privilege in respect thereof (whether before or after the occurrence
of the Event of Default) or (2) if the date of the Notice is on or prior to the
30th day prior to the Commitment Expiry Date, the Company will use the proceeds
from the issuance of such series of securities solely to fund, in whole or in
part, the aggregate amount of cash that is (or will be) payable to holders of
Convertible Debentures that are outstanding on the date of the Notice. In the
event the proviso to the foregoing sentence is applicable, the Condition set
forth in clause (iii) shall be deemed satisfied with respect to the purchase
specified in the Notice for all purposes of this Agreement. Each Notice shall
specify the principal amount of Securities that Tailor Shareholder is required
to purchase (which, other than when the proviso to the second preceding sentence
applies, for each respective issuance of Securities shall be $5.0 million or any
larger multiple of $500,000). The interest rate for such Securities shall be
determined in accordance with the provisions of Paragraph 1(b). For purposes of
this Agreement a Bankruptcy Event shall be defined as the occurrence of either
of the following events:

                           (i) A court having jurisdiction in the premises shall
                  enter a decree or order for relief in respect of the Company
                  in an involuntary case under any applicable bankruptcy,
                  insolvency or other similar law or hereinafter in effect, or
                  appointing a receiver, liquidator, assignee, custodian,
                  trustee, sequestrator or other similar official of the Company
                  or for any substantial part of its property, or ordering the
                  winding-up or liquidation of its affairs, and such decree or
                  order shall remain unstayed and in effect for a period of 90
                  consecutive days, or,

                           (ii) The Company shall commence a voluntary case
                  under any applicable bankruptcy, insolvency or other similar
                  law now or hereafter in effect, shall consent to the entry of
                  an order for relief in an involuntary case under any such law,
                  or shall consent to the appointment of or taking possession by
                  a receiver, liquidator, assignee, trustee, custodian,
                  sequestrator or other similar official of the Company or of
                  any substantial part of its property, or shall make any
                  general assignment for the benefit of creditors.

         (b) "Senior Credit Facilities" means the Credit Agreement, to be dated
as of the date of the Merger (as defined under the Recapitalization Agreement
dated August 1, 2000 between the Company and Riverside Company LLC), among The
Chase Manhattan Bank, Chase Securities Inc., the Company and certain of its
subsidiaries and the other lenders and financial institutions party thereto from
time to time, as the same may be amended, modified,
<PAGE>   4
                                      -4-

waived, refinanced or replaced from time to time (whether under a new credit
agreement or otherwise).

         (c) The Commitment is not revolving in nature, and any Securities
repurchased, redeemed or otherwise acquired by the Company shall not restore the
Commitment. The Company may reduce or terminate the unused portion of the
Commitment at any time by written notice to Tailor Shareholder.

         (d) Notwithstanding the foregoing, upon the occurrence of a Change of
Control as defined in Section 5.2 of Exhibit A, Tailor Shareholder's Commitment
shall terminate.

         3. Closing. (a) Any closing of a sale of Securities to Tailor
Shareholder hereunder shall occur at the Company's offices (or such other place
as may be agreed to by the Company and Tailor Shareholder) on the fifth Business
Day (as hereinafter defined) after the Company gives Tailor Shareholder the
Notice. The term "Business Day" shall mean any day, except a Saturday, Sunday or
other day on which commercial banks in New York City are authorized by law to
close.

         (b) At each closing, subject to the satisfaction of the Conditions,
Tailor Shareholder shall deliver to the Company immediately available funds in
an amount equal to the aggregate principal amount of Securities being purchased.

         (c) At each closing, the Company shall deliver to Tailor Shareholder
one or more certificates for the Securities being issued, registered in the name
of Tailor Shareholder (or such other person as Tailor Shareholder may designate
prior to the closing) with any such legend that may be appropriate and in such
denominations of $1,000 and any multiple thereof as Tailor Shareholder may
specify prior to the closing. The Company's delivery of the certificates
representing the Securities being purchased shall automatically be deemed to be
a representation by the Company that the Conditions are satisfied at such time.
The satisfaction of the Conditions shall be a condition to Tailor Shareholder's
obligation to purchase such Securities.

         4. Commitment Fee. (a) The Company shall pay Tailor Shareholder a
commitment fee for Tailor Shareholder's Commitment hereunder at the rate of
0.125% per annum on the daily average amount by which the Commitment exceeds the
principal amount of Securities purchased by Tailor Shareholder hereunder
(including Securities previously issued and redeemed).

         (b) The commitment fee shall continue to accrue from and including the
date of the Merger to but excluding the date on which the aggregate principal
amount of Securities purchased by Tailor Shareholder hereunder (including
Securities previously issued and redeemed) equals the Commitment (as may be
reduced or terminated pursuant to Paragraph 2(c)) or the date on which the
Commitment is terminated or expires. Such fee shall be
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                                      -5-

computed for the actual number of days elapsed and shall be payable quarterly on
the last day of each calendar quarter and upon fulfillment of the Commitment in
its entirety or the earlier termination of the Commitment.

         5. Representations of Tailor Shareholder. Tailor Shareholder represents
and warrants to the Company that:

                  (a) Tailor Shareholder is a corporation duly incorporated,
         validly existing and in good standing under the laws of the State of
         Delaware and is authorized by its certificate of incorporation to carry
         on its business as now conducted.

                  (b) The execution, delivery and performance by Tailor
         Shareholder of this Agreement and the consummation by Tailor
         Shareholder of the transactions contemplated hereby are within the
         corporate powers of Tailor Shareholder and have been duly authorized by
         all necessary corporate action on the part of Tailor Shareholder. This
         Agreement constitutes a valid and binding agreement of Tailor
         Shareholder, except as the same may be limited by general equity
         principles or laws affecting creditors' rights generally.

                  (c) The execution, delivery and performance of this Agreement
         do not result in any violation by Tailor Shareholder of any indenture,
         mortgage or other agreement or instrument by which Tailor Shareholder
         or any of its Subsidiaries (as hereinafter defined) is bound.

                  (d) No authorization, consent or approval of, or registration
         or filing with, any governmental or public body or regulatory authority
         is required on the part of Tailor Shareholder which has not been
         obtained for the purchase by Tailor Shareholder of the Securities
         contemplated by this Agreement, and such a purchase will not result in
         any violation by Tailor Shareholder of any of the terms or provisions
         of its certificate of incorporation or by-laws.

                  (e) Tailor Shareholder has received such information from the
         Company as it deems necessary and sufficient in order to make an
         informed investment decision regarding its commitment to purchase
         Securities hereunder. Tailor Shareholder is a sophisticated investor,
         with such knowledge and experience in financial matters that it is
         capable of evaluating the risks and merits of an investment in the
         Securities, and is purchasing such Securities for its own account for
         investment and (subject, to the extent necessary, to the disposition of
         its property being at all times within its control) not with a view to
         any distribution or other disposition thereof, and is proceeding on the
         assumption that it must bear the economic risk of any such investment
         for an indefinite period since such Securities may not be sold except
         as set forth below. If Tailor Shareholder decides to dispose of any of
         the Securities acquired pursuant to this Agreement or any securities
         issued in exchange or substitution therefor (which it does
<PAGE>   6
                                      -6-

         not presently contemplate), it will not offer, sell or deliver any such
         securities, directly or indirectly, except in compliance with the
         Securities Act of 1933.

         6. Representations of the Company. The Company represents and warrants
to Tailor Shareholder that:

                  (a) As of the date hereof, the Company is a corporation duly
         incorporated, validly existing and in good standing under the laws of
         the State of Delaware and is authorized by its certificate of
         incorporation to carry on its business as now conducted.

                  (b) The execution, delivery and performance by the Company of
         this Agreement and the consummation by the Company of the transactions
         contemplated hereby are within the Company's corporate powers and have
         been duly authorized by all necessary corporate action on the part of
         the Company. This Agreement constitutes a valid and binding agreement
         of the Company, except as the same may be limited by general equity
         principles or laws affecting creditors' rights generally.

                  (c) The Securities issuable from time to time pursuant to this
         Agreement have been duly authorized by all necessary corporate action
         on the part of the Company and, if and when such Securities are issued
         pursuant to this Agreement, such Securities will constitute valid and
         binding obligations of the Company, except as the same may be limited
         by general equity principles or laws affecting creditors' rights
         generally.

                  (d) Assuming the truth and accuracy of Tailor Shareholder's
         representations and warranties set forth in Paragraph 5(e), no
         authorization, consent or approval of, or registration or filing with,
         any governmental or public body or regulatory authority is required on
         the part of the Company for the issuance of the Securities pursuant to
         this Agreement prior to the issuance of Securities hereunder, and such
         issuance will not result in any violation by the Company of any of the
         terms or provisions of the certificate of incorporation or bylaws of
         the Company.

                  (e) The execution, delivery and performance by the Company of
         this Agreement and the issuance of Securities pursuant to this
         Agreement do not result in any violation by the Company of any of the
         terms or provisions of any indenture, mortgage or other agreement or
         instrument by which the Company or any of its Subsidiaries is bound.
         "Subsidiary" means, with respect to any Person, any corporation or
         other entity of which a majority of the capital stock or other
         ownership interests having ordinary voting power to elect a majority of
         the board of directors or other persons performing similar functions
         are at the time directly or indirectly owned by such Person.
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                                      -7-

         7. Miscellaneous. All notices, requests and other communications to
either party hereunder shall be in writing (including telex, telecopy or similar
writing) and shall be delivered by hand and receipted for by the party to whom
such communication shall have been directed or mailed by certified mail return
receipt requested to the following address (or to such other address as the
party receiving such communication has theretofore advised the other party in
the manner provided for herein):

                  (a)      If to Tailor Shareholder, to:

                               21001 Van Born Road
                               Taylor, MI  48180
                               Facsimile:   (313) 792-4107
                               Attention:   Chairman of the Board and
                                            General Counsel

                               with a copy to:

                               Honigman Miller Schwartz and Cohn
                               2290 First National Building
                               Detroit, MI  48226
                               Facsimile:   (313) 465-7575
                               Attention:   Alan Stuart Schwartz, Esq.

                           except in the case of the Notice required under
                           Paragraph 2, in which case each such notice shall be
                           deemed delivered only upon actual receipt (which may
                           be evidenced by a facsimile confirmation), directed
                           to:

                               Masco Corporation
                               21001 Van Born Road
                               Taylor, MI  48180
                               Facsimile:   (313) 792-4107
                               Attention:   Robert Rosowski

                  (b)      If to the Company, to:

                               MascoTech, Inc.
                               21001 Van Born Road
                               Taylor, MI  48180
                               Facsimile:   (313) 792-6940
                               Attention:   President
<PAGE>   8
                                       -8-

                               with a copy to:

                               Cahill Gordon & Reindel
                               80 Pine Street
                               New York, NY  10005
                               Facsimile:   (212) 269-5420
                               Attention:  Jonathan A. Schaffzin, Esq.

         8. Amendments; No Waivers. This Agreement may not be amended or
terminated, nor any condition or term hereof be waived orally, but only by an
instrument in writing duly executed by the parties hereto or, in the case of a
waiver, by the party otherwise entitled to performance. No failure or delay by
either party in exercising any right, power or privilege hereunder shall operate
as a waiver thereof nor shall any single or partial exercise thereof preclude
any other or further exercise thereof or the exercise of any other right, power
or privilege. The rights and remedies herein provided shall be cumulative and
not exclusive of any rights or remedies provided by law.

         9. Expenses. All costs and expenses incurred in connection with this
Agreement shall be paid by the party incurring such cost or expense.

         10. Successors and Assigns. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns; provided that neither party may assign, delegate or
otherwise transfer any of its rights or obligations under this Agreement without
the consent of the other party hereto, except that (1) Tailor Shareholder may
transfer or assign, in whole or from time to time in part, to one or more of its
affiliates, its obligation to purchase all or a portion of the Securities, but
no such transfer or assignment will relieve Tailor Shareholder of its
obligations hereunder in any respect and (2) the Company may assign its rights
to give Notice and to require that Tailor Shareholder meet its obligations
hereunder as collateral security for the obligations of the Company under the
Senior Credit Facilities. Tailor Shareholder hereby agrees to cooperate with the
Company and the lenders under the Senior Credit Facilities in order to effect
the intent of clause (2) of the immediately preceding sentence.

         11. Governing Law. This Agreement shall be construed in accordance with
and governed by the laws of the State of New York.

         12. Counterparts; Effectiveness. This Agreement may be signed in any
number of counterparts, each of which shall be deemed an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument.
This Agreement shall become effective when each party hereto shall have received
a counterpart hereof signed by the other party hereto.
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                                      -9-

         13. Captions. The captions herein are included for convenience of
reference only and shall be ignored in the construction or interpretation
hereof.
<PAGE>   10
                                      -10-

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers as of the day and year
first above written.

                                        MASCO CORPORATION
                                        By:  /s/John R. Leekley
                                           -------------------------------------
                                                Name:  John R. Leekley
                                                Title:    Senior Vice President-
                                                          General Counsel

                                        MASCOTECH, INC.

                                        By:  /s/David B. Liner
                                           -------------------------------------
                                               Name:  David B. Liner
                                               Title:    Vice President
<PAGE>   11
                                                                       Exhibit A

                            FORM OF SUBORDINATED NOTE

            [insert securities law and any other appropriate legends]

No.                                                           $ Principal Amount

                                 MASCOTECH, INC.

         % Subordinated Note Due June 30, 2009, Series [ ]

         MascoTech, Inc., a Delaware corporation (together with its successors
and assigns, the "Issuer"), for value received hereby promises to pay to
                      or registered assigns the principal sum of
on the Stated Maturity Date (as hereinafter defined) or any earlier redemption
date, in such coin or currency of the United States of America as at the time of
payment shall be legal tender for the payment of public and private debts, and
to pay interest, semiannually in arrears, on June 30 and December 31 (unless
such day is not a Business Day (as hereinafter defined), in which event on the
next succeeding Business Day) (each an "Interest Payment Date") of each year in
which this Note remains outstanding, commencing with             , 200[ ]
[INSERT FIRST INTEREST PAYMENT DATE FALLING THREE OR MORE MONTHS AFTER
ISSUANCE], on the unpaid principal sum hereof outstanding in like coin or
currency, at the rates per annum set forth below, by check mailed to the address
of the holder as such address shall appear in the Register (as hereinafter
defined), from the most recent Interest Payment Date to which interest has been
paid on this Note, or if no interest has been paid on this Note, from
              200[ ] [INSERT ISSUE DATE], until payment in full of the principal
sum hereof has been made.

         The interest rate shall be a rate per annum that is specified on the
face hereof (the "Interest Rate"); provided, further, that the Interest Rate on
this Note will increase by 1.0% per annum on December 31, 2005 and an additional
1.5% per annum on December 31, 2007. Further, the Issuer shall pay interest on
overdue principal at a rate per annum 1% above the rate borne by this Note at
the time the same became overdue (the "Overdue Rate"), and interest on overdue
installments of interest, to the extent lawful, at the Overdue Rate. Interest
payments on this Note will include interest accrued to but excluding the
Interest Payment Dates or the Stated Maturity Date (or any earlier redemption or
repayment date), as the case may be, unless previously paid. Interest on this
Note will be calculated on the basis of a 360 day year of twelve 30-day months.
<PAGE>   12
                                      -2-

         Notwithstanding anything herein to the contrary, the interest or any
amount deemed to be interest payable by the Issuer with respect to this Note
shall not exceed the maximum amount permitted by applicable law and, to the
extent that any payments in excess of such permitted amount are received by the
holder, such excess shall be considered payments in respect of the principal
amount of this Note. All sums paid or agreed to be paid to the holder for the
use, forbearance or retention of the indebtedness of the Issuer to the holder
shall, to the extent permitted by applicable law, be deemed to be amortized,
prorated, allocated and spread throughout the full term of such indebtedness
until payment in full of the principal so that the interest on account of such
indebtedness shall not exceed the maximum amount permitted by applicable law.

         This Note is one of a duly authorized issue of subordinated notes
designated as the _____% Subordinated Notes Due June 30, 2009, Series _____ of
the Issuer, limited in aggregate principal amount to $_____ (hereinafter called
the "Notes").

         This Note is transferable and assignable to one or more purchasers (in
any multiple of $100,000 or more), subject to the restrictions on transfer
referred to on the face hereof. The Issuer agrees to issue, from time to time,
replacement Notes in the form hereof to facilitate such transfers and
assignments. In addition, after delivery of an indemnity in form and substance
satisfactory to the Issuer, the Issuer also agrees to issue replacement Notes
for Notes which have been lost, stolen, mutilated or destroyed.

         The Issuer shall keep at its principal office a register (the
"Register") in which shall be entered the names and addresses of the registered
holders of the Notes and particulars of the respective Notes held by them and of
all transfers of such Notes. The ownership of the Notes shall be proven by the
Register. For the purpose of paying interest and principal on the Notes, the
Issuer shall be entitled to rely on the names and addresses in the Register and,
notwithstanding anything to the contrary contained in this Note, no Event of
Default shall occur under Section 4.1(a) or (b) if payment of interest and
principal is made in accordance with the names and addresses and particulars
contained in the Register.

         SECTION 11.  Definitions.

         SECTION 1.1. Certain Terms Defined. The following terms (except as
otherwise expressly provided or unless the context otherwise clearly requires)
for all purposes of this Note shall have the respective meanings specified
below. The terms defined in this Section 1.1 include the plural as well as the
singular.

         "Affiliate" of any Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such Person. For the purposes of this definition, "control" when used with
respect to any Person means the possession, directly or indirectly, of the power
to direct or cause the direction of the management and
<PAGE>   13
                                      -3-

policies of such Person, whether through the ownership of voting securities, by
contract or otherwise; and the terms "controlling" and "controlled" have
meanings correlative to the foregoing.

         "Business Day" means any day except a Saturday, Sunday or other day on
which commercial banks in the City of New York are authorized by law to close.

         "Event of Default" means any event or condition specified as such in
Section 4 which shall have continued for the period of time, if any, therein
designated.

         "Person" means an individual, a corporation, a partnership, an
association, a trust or any other entity or organization, including a government
or political subdivision or an agency or instrumentality thereof.

         "Senior Indebtedness" means (a) all indebtedness of the Issuer for
money borrowed (including without limitation obligations of the Issuer in
respect of overdrafts, foreign exchange contracts, swaps, hedging contracts,
letters of credit, bankers' acceptances, or any loan or advance from a bank
whether or not evidenced by promissory notes or other instruments) or incurred
in connection with the acquisition of property, whether outstanding on the date
of execution of this Note or thereafter created, assumed or incurred, including
but not limited to, the Issuer's 4-1/2% Convertible Subordinated Debentures due
December 15, 2003 and indebtedness of the Issuer in respect of the Senior Credit
Facilities (as defined in the Subordinated Loan Agreement pursuant to which this
Note is issued), except (i) other notes issued pursuant to the Subordinated Loan
Agreement between the Issuer and Masco Corporation, a Delaware corporation
("Tailor Shareholder"), dated as of             , 2000, all of which notes shall
rank pari passu with the Notes, (ii) such indebtedness of the Issuer as is by
its terms expressly stated to be not superior in right of payment to the Notes
or to rank pari passu with the Notes, and (iii) indebtedness of the Issuer to a
Subsidiary of the Issuer, (b) any guaranty, endorsement or other contingent
obligation of the Issuer in respect of, or to purchase or otherwise acquire, any
indebtedness of another for money borrowed or incurred in connection with the
acquisition of property, and (c) any deferrals, renewals or extensions of any
such Senior Indebtedness, or debentures, notes or other evidences of
indebtedness issued in exchange for such Senior Indebtedness. The term
"indebtedness of the Issuer for money borrowed" as used in the foregoing
sentence shall mean any obligation of the Issuer for borrowed money, whether or
not evidenced by notes or other written obligations, and any indebtedness of the
Issuer evidenced by bonds, notes or debentures or other similar instruments. The
term "indebtedness of the Issuer incurred in connection with the acquisition of
property" as used in the first sentence of this definition shall mean any
purchase money obligation (whether or not secured by any Lien or other security
interest) created or assumed as all or part of the consideration for the
acquisition of property whether by purchase, merger, consolidation or otherwise
(but not including any account payable or any other obligation created or
assumed by the Issuer in the ordinary course of business in connection with the
obtaining of materials or services) and any indebtedness arising under a lease
of property, equipment or other assets which, pursuant to
<PAGE>   14
                                      -4-

generally accepted accounting principles then in effect, is classified as a
liability on the Issuer's balance sheet.

         "Stated Maturity Date" means June 30, 2009.

         "Subsidiary" means, with respect to any Person, any corporation or
other entity of which a majority of the capital stock or other ownership
interests having ordinary voting power to elect a majority of the board of
directors or other persons performing similar functions are at the time directly
or indirectly owned by such Person.

         SECTION 22.  Payment of Principal and Interest.

         SECTION 2.1. Payment of Principal and Interest. No provision of this
Note shall alter or impair, as between the Issuer and the holder of this Note
the obligations of the Issuer, which are absolute and unconditional, to pay the
principal of and interest on this Note at the place, times, and rate, and in the
currency, herein prescribed.

         SECTION 3.        Covenants.

         SECTION 3.1. Offices for Notices and Transfers, etc. So long as any of
the Notes remain outstanding, the Issuer will maintain an office or agency where
the Notes may be presented for registration of transfer and for exchange and an
office or agency where notices and demands to or upon the Issuer in respect of
the Notes may be served. The Issuer will give to the holders of the Notes
written notice of any change of location of any such office or agency thereof.

         SECTION 3.2. Provision as to Paying Agent. The Issuer shall act as its
own paying agent and will, on or not more than seven days before each due date
of the principal of or interest on the Notes, set aside, segregate and hold in
trust for the benefit of the holders of the Notes of such series a sum
sufficient to pay such principal or interest so becoming due.

         SECTION 3.3. Subordination of Subsidiary Indebtedness. The Issuer shall
obtain an agreement from each of its Subsidiaries to the effect that, so long as
any Notes are outstanding, all indebtedness of the Issuer to such Subsidiary for
money borrowed or incurred in connection with the acquisition of property shall
be subordinated and junior in right of payment to the prior payment in full of
all such Notes in the same manner and to the same extent as such Notes are
subordinated and junior in right of payment to the prior payment in full of all
Senior Indebtedness (as defined herein).

         SECTION 3.4. When Company May Merge, Etc. The Issuer will not, in any
transaction or series of transactions, merge or consolidate with or into, or
sell, assign, convey, transfer, lease or otherwise dispose of all or
substantially all of its properties and assets (each a "Transfer") as an
entirety to, any person or persons, and the Issuer will not permit any of its
<PAGE>   15
                                      -5-

Subsidiaries to enter into any such transaction or series of transactions if
such transaction or series of transactions, in the aggregate, would result in a
sale, assignment, conveyance, transfer, lease or other disposition of all or
substantially all of the properties and assets of the Issuer and its
Subsidiaries, taken as a whole, to any other person or persons other than a
Transfer by the Issuer to a wholly owned Subsidiary of the Issuer as
contemplated by the Commitment Letter for the Senior Credit Facilities, unless
at the time of and after giving effect thereto:

                  (a) either (i) if the transaction or series of transactions is
         a merger or consolidation, the Issuer shall be the surviving person of
         such merger or consolidation, or (ii) the person formed by any such
         consolidation or into which the Issuer or such Subsidiary is merged or
         to which the properties and assets of the Issuer and/or any Subsidiary,
         as the case may be, are transferred (any such surviving person or
         transferee person being a "Surviving Entity") shall be a corporation or
         limited liability company organized and existing under the laws of the
         United States of America, any state thereof or the District of Columbia
         and shall expressly assume all the obligations of the Issuer under this
         Note, and in each case, this Note shall remain in full force and
         effect; and

                  (b) immediately before and immediately after giving effect to
         such transaction or series of transactions on a pro forma basis
         (including, without limitation, any indebtedness incurred or
         anticipated to be incurred in connection with or in respect of such
         transaction or series of transactions), no Default hereunder shall have
         occurred and be continuing.

         Upon any consolidation, or merger or any transfer of all or
substantially all of the assets of the Issuer in accordance with this Section
3.4 in which the Issuer is not the continuing corporation, the Surviving Entity
formed by such consolidation or into which the Issuer is merged to which such
conveyance, lease or transfer is made shall succeed to, and be substituted for,
and may exercise every right and power of, the Issuer under this Note with the
same effect as if such Surviving Entity had been named as such.

         SECTION 4.        Events of Default and Remedies.

         SECTION 4.1. Events of Default. "Event of Default", whenever used
herein with respect to any Note means any one of the following events:

                  (a) default in the payment of interest upon any Note when it
         becomes due and payable and continuance of such default for a period of
         30 days; or

                  (b) default in the payment of all or any part of the principal
         of any Note as and when the same shall become due and payable either at
         maturity, upon redemption, by declaration or otherwise; or
<PAGE>   16
                                      -6-

                  (c) default in the performance, or breach, of any covenant of
         the Issuer in any Note (other than a covenant, a default in whose
         performance or whose breach is elsewhere in this Section or elsewhere
         in the corresponding provision in any such other Note specifically
         dealt with), and continuance of such default or breach for a period of
         90 days after there has been given, by registered or certified mail, to
         the Issuer by the holders of at least 25% in principal amount of the
         outstanding Notes, a written notice specifying such default or breach
         and requiring it to be remedied and stating that such notice is a
         "Notice of Default" under the Notes; or

                  (d) the Event of Default referred to in Section 5.2(c); or

                  (e) default under any mortgage, indenture or other instrument
         or agreement under which there may be issued, or by which there may be
         secured or evidenced, indebtedness of the Issuer in an aggregate
         principal amount of $25.0 million or more, which default (i) is caused
         by a failure to pay such indebtedness on its maturity date within the
         applicable express grace period (and such failure continues for a
         period of 30 days or more) or (ii) results in the acceleration of such
         indebtedness prior to its express final maturity (which acceleration is
         not rescinded, annulled or otherwise cured within 30 days of receipt by
         the Issuer of such notice of acceleration); or

                  (f) a court having jurisdiction in the premises shall enter a
         decree or order for relief in respect of the Issuer in an involuntary
         case under any applicable bankruptcy, insolvency or other similar law
         or hereafter in effect, or appointing a receiver, liquidator, assignee,
         custodian, trustee, sequestrator or other similar official of the
         Issuer or for any substantial part of its property, or ordering the
         winding-up or liquidation of its affairs and such decree or order shall
         remain unstayed and in effect for a period of 90 consecutive days; or

                  (g) the Issuer shall commence a voluntary case under any
         applicable bankruptcy, insolvency or other similar law now or hereafter
         in effect, shall consent to the entry of an order for relief in an
         involuntary case under any such law, or shall consent to the
         appointment of or taking possession by a receiver, liquidator,
         assignee, trustee, custodian, sequestrator or other similar official of
         the Issuer or of any substantial part of its property, or shall make
         any general assignment for the benefit of creditors.

         If an Event of Default described in clause (a), (b), (c), (d) or (e)
occurs and is continuing, then, and in each and every such case, unless the
principal of all of the Notes shall have already become due and payable, the
holders of not less than 25% in aggregate principal amount of the Notes of this
Series then outstanding, by notice in writing to the Issuer, may declare the
entire principal of all of the Notes and the interest accrued and unpaid
thereon, if any, to be due and payable immediately, and upon any such
declaration the same shall become immediately due and payable. If an Event of
Default described in clause (f) or (g) occurs, the
<PAGE>   17
                                      -7-

principal of and accrued interest on the Notes shall become and be immediately
due and payable without any declaration or other act on the part of any holder
of Notes.

         The foregoing provisions, however, are subject to the condition that
if, at any time after the principal of the Notes shall have been so declared due
and payable, and before any judgment or decree for the payment of the moneys due
shall have been obtained or entered as hereinafter provided, the Issuer shall
pay or shall deposit in trust for the benefit of the holders of the Notes a sum
sufficient to pay all matured installments of interest upon all of the Notes and
the principal of the Notes (with interest upon such principal and, to the extent
that payment of such interest is enforceable under applicable law, on overdue
installments of interest to the date of such payment or deposit) and if any and
all Events of Default under this Note other than the non-payment of the
principal shall have been cured, waived or otherwise remedied as provided
herein, then and in every such case the holders of a majority in aggregate
principal amount of the Notes then outstanding, by written notice to the Issuer,
may waive all defaults with respect to the Notes and rescind and annul such
declaration and its consequences, but no such waiver or rescission and annulment
shall extend to or shall affect any subsequent default or shall impair any right
consequent thereon.

         SECTION 4.2. Powers and Remedies Cumulative; Delay or Omission Not
Waiver of Default. All powers and remedies given by this Section 4 to the
holders of Notes shall, to the extent permitted by law, be deemed cumulative and
not exclusive of any thereof or of any other powers and remedies available to
the holders of the Notes, by judicial proceedings or otherwise, to enforce the
performance or observance of the covenants and agreements contained in this Note
and no delay or omission of any holder of any of the Notes to exercise any right
or power accruing upon any default occurring and continuing as aforesaid shall
impair any such right or power, or shall be construed to be a waiver of any such
default or an acquiescence therein; and, every power and remedy given by this
Note or by law to the holders of Notes may be exercised from time to time, and
as often as shall be deemed expedient, by the holders of Notes.

         SECTION 4.3. Waiver of Past Defaults by Majority of Holders. Subject to
Section 4.1, the holders of a majority in aggregate principal amount of the
Notes at the time outstanding may on behalf of the holders of all of the Notes
waive such default or Event of Default and its consequences except a default in
the payment of principal of or interest on any of the Notes. Upon any such
waiver the Issuer and the holders of the Notes shall be restored to their former
positions and rights hereunder, but no such waiver shall extend to any
subsequent or other default or Event of Default or impair any right consequent
thereon. Whenever any default or Event of Default shall have been waived as
permitted by this Section 4.3, said default or Event of Default shall for all
purposes of the Notes be deemed to have been cured and to be not continuing.
<PAGE>   18
                                      -8-

         SECTION 5.        Redemption.

         SECTION 5.1. Optional Redemption. The Notes may be redeemed at the
option of the Issuer as a whole, or from time to time in part, at any time prior
to maturity, at a price equal to the principal amount of the Notes so redeemed,
together in each case with accrued and unpaid interest to the date fixed for
redemption, upon mailing notice of such redemption not less than 30 nor more
than 60 days prior to the date fixed for redemption to the holders of Notes at
their last addresses as the same appear on the Register. Such mailing shall be
by first class mail. The notice if mailed in the manner herein provided shall be
conclusively presumed to have been duly given, whether or not the holder
receives such notice. In any case, failure to give such notice by mail or any
defect in the notices to the holder of any Note designated for redemption shall
not affect the validity of the proceedings for the redemption of any other Note.

         If less than all of the Notes are to be redeemed, the Issuer will
select (a) by lot or by such other manner as may be prescribed by resolution of
the Board of Directors of the Issuer and (b) to the extent Tailor Shareholder,
or any Subsidiary thereof, holds Notes, the Issuer shall allow Tailor
Shareholder to select, in its sole discretion, the specific Notes then owned by
Tailor Shareholder or its Subsidiaries to be redeemed (provided that Tailor
Shareholder informs the Issuer no later than the day prior to the date of such
redemption of the specific Notes selected for redemption), the Notes or portions
thereof (in integral multiples of $1,000) to be redeemed in a minimum amount of
$1,000,000 unless less than $1,000,000 of the Notes remain outstanding in which
case all of the Notes must be redeemed.

         Upon presentation of any Note redeemed in part only, the Issuer shall
execute and deliver to the holder thereof, at the expense of the Issuer, a new
Note or Notes of authorized denominations, in principal amount equal to the
unredeemed portion of the Note so presented.

         SECTION 5.2. Change of Control Put. (a) The holder of this Note shall
have the right, at such holder's option, upon the giving of notice of the
occurrence of a Change of Control (as hereinafter defined), and subject to the
terms and provisions hereof, to tender any Note, in whole or in part, without
regard to whether the Note is then otherwise redeemable, for purchase by the
Issuer or a third party designated by the Issuer (but such designation will not
relieve the Issuer from its obligation pursuant to this Section 5.2 until such
obligation is satisfied) for cash in an amount equal to the principal amount of
such Note plus accrued and unpaid interest to the date fixed for purchase. Such
purchase shall occur no later than the 90th day after the date of the notice
provided pursuant to clause (c) below (the "Mandatory Purchase Date"). The
holder's right to tender shall continue up to the 85th day after the date of
such notice and shall be exercised by any surrender of such Note to the office
or agency to be maintained by the Issuer pursuant to Section 3.1, accompanied by
written notice that the holder elects to tender such Note and (if so required by
the Issuer) by a written instrument or instruments of transfer in form
satisfactory to the Issuer duly executed by the holder or such
<PAGE>   19
                                      -9-

holder's duly authorized legal representative and transfer tax stamps or funds
therefor, if required. All Notes surrendered for purchase shall be canceled by
the Issuer.

         (b) The occurrence of any of the following events will constitute a
"Change of Control":

                  (1) if Heartland Industrial Partners, L.P. and its Affiliates
         (collectively "Heartland") cease to directly or indirectly beneficially
         own 30% or more of the outstanding shares of Issuer Common Stock or do
         not have the right or ability by voting power, contract or otherwise to
         elect or designate for election a majority of the Board of Directors of
         the Issuer;

                  (2) any person or group within the meaning of Section 13(d)(3)
         of the Securities Exchange Act of 1934 (the "1934 Act") other than
         Heartland (an "other entity") shall attain beneficial ownership, within
         the meaning of Rule 13d-3 adopted under the 1934 Act, of capital stock
         representing a majority of the voting power for the election of the
         Directors of the Issuer;

                  (3) Issuer, directly or indirectly, consolidates or merges
         with any other entity or sells or leases its properties and assets
         substantially as an entirety to any other entity, provided that this
         clause shall not apply to a transaction if, immediately following such
         transaction, no person or group, within the meaning of Section 13(d)(3)
         of the 1934 Act, other than Heartland beneficially owns capital stock
         representing a majority of the voting power for the election of
         Directors of Issuer; and

                  (4) any event constituting a "change of control" in the Senior
         Credit Facilities, as the same may be amended, waived, modified or
         replaced from time to time.

         (c) The Issuer shall mail to each holder of Notes at such holder's last
address appearing on the Register, as promptly as possible but in any event not
more than 60 days after learning of a Change of Control specified in clause (b)
(1) or (2) above or not more than 60 days after an occurrence specified in
clause (b) (3) or (4) (except to the extent the occurrence referred to in clause
(b)(4) would otherwise have occurred under clause (b)(1) or (2) above), (such
60th day being the "Notice Trigger Date") a notice stating that the event
specified in the notice has occurred and that each holder has the right to
tender such holder's Notes for cash pursuant to the terms hereof.
Notwithstanding the foregoing, prior to making the offer to purchase Notes, but
in any event not later than the Notice Trigger Date, the Issuer covenants to (i)
repay in full all Senior Indebtedness under agreements containing change of
control puts or defaults (and terminate all commitments thereunder) or offer to
repay in full all such Senior Indebtedness (and terminate all commitments) and
to repay the Senior Indebtedness owed to (and terminate the commitments of) each
creditor which has accepted such offer or (ii) obtain the requisite consents in
respect of such Senior Indebtedness to permit the repurchase of the Notes.
Issuer will first comply with the covenant in the preceding sentence before it
will be
<PAGE>   20
                                      -10-

required to repurchase Notes pursuant to the provisions described below;
provided that the Issuer's failure to comply with the covenant described in the
preceding sentence shall constitute an Event of Default.

         (d) On or before the 85th day after the date of the notice provided
pursuant to clause (c) above, the Issuer shall set aside, segregate and hold in
trust for the benefit of the holders of the Notes to be redeemed an amount of
money sufficient to pay the principal of, and accrued interest on, all the Notes
to be redeemed on the Mandatory Purchase Date.

         (e) After making the offer to purchase as provided above, the Notes to
be redeemed shall, on the Mandatory Purchase Date, become due and payable at a
price equal to the principal amount thereof plus accrued and unpaid interest and
from and after such date (unless the Issuer shall default in the payment of
principal and accrued interest thereon) such Notes shall cease to bear interest.
Upon surrender of any such Note for purchase in accordance herewith, such Note
shall be paid on the Mandatory Purchase Date by the Issuer at a price equal to
the principal amount thereof, together with accrued and unpaid interest to the
Mandatory Purchase Date. If any Note to be redeemed shall not be so paid on the
Mandatory Purchase Date, the principal and accrued interest thereon shall, until
paid, bear interest from the Mandatory Purchase Date at the Overdue Rate.

         (f) Notes may be tendered for purchase in whole or in any integral
multiple of $1,000. Any Note which is to be redeemed only in part shall be
surrendered at an office or agency of the Issuer designated for that purpose
(with, if the Issuer so requires, due endorsement by, or a written instrument to
transfer in form satisfactory to the Issuer duly executed by, the holder thereof
or such holder's attorney duly authorized in writing), and the Issuer shall
execute and deliver to the holder of such Note without service charge, a new
Note or Notes, of any authorized denomination in aggregate principal amount
equal to and in exchange for the unredeemed portion of the principal amount.

         SECTION 6.        Subordination of Notes.

         SECTION 6.1. Agreement to Subordinate. The Issuer covenants and agrees,
and each holder of Notes by such holder's acceptance thereof likewise covenants
and agrees, that all Notes shall be issued subject to the provisions of this
Section; and each Person holding any Note, whether upon original issue or upon
transfer or assignment thereof, accepts and agrees to be bound by such
provisions. The provisions of this Section are made for the benefit of the
holders of Senior Indebtedness, and such holders shall, at any time, be entitled
to enforce such provisions against the Issuer or any holders of Notes.

         All Notes shall, to the extent and in the manner hereinafter in this
Section set forth, be subordinate and junior in right of payment to the prior
payment in full of all Senior Indebtedness.
<PAGE>   21
                                      -11-

         SECTION 6.2. No Payment on Notes if Senior Indebtedness in Default. No
payment on account of principal or interest on the Notes shall be made unless
full payment of amounts then due for principal, premium, if any, sinking funds
and interest on all Senior Indebtedness has been made or duly provided for. No
payment on account of principal or interest on the Notes shall be made if, at
the time of such payment or immediately after giving effect thereto, (i) there
shall exist a default in the payment of principal, premium, if any, sinking
funds or interest with respect to any Senior Indebtedness, or (ii) there shall
have occurred an event of default (other than a default in the payment of
principal, premium, if any, sinking funds or interest) with respect to any
Senior Indebtedness, as defined therein or in the instrument under which the
same is outstanding, permitting the holders thereof to accelerate the maturity
thereof, and such event of default shall not have been cured or waived or shall
not have ceased to exist.

         SECTION 6.3. Priority of Senior Indebtedness. In the event of any
insolvency or bankruptcy proceedings, and any receivership, liquidation,
reorganization under the Federal Bankruptcy Code or any other similar applicable
Federal or state law, or other similar proceedings in connection therewith,
relative to the Issuer or to its creditors, as such, or to its property, and in
the event of any proceedings for voluntary liquidation, dissolution or other
winding up of the Issuer or assignment for the benefit of creditors or any other
marshalling of assets of the Issuer, whether or not involving insolvency or
bankruptcy, then the holders of Senior Indebtedness shall be entitled to receive
payment in full of all principal of and premium, if any, and interest on all
Senior Indebtedness (including interest on such Senior Indebtedness after the
date of filing of a petition or other action commencing such proceeding) before
the holders of the Notes are entitled to receive any payment on account of the
principal of or interest on the Notes and any payment or distribution of any
kind or character which may be payable or deliverable in any such proceedings in
respect of the Notes, except securities which are subordinate and junior in
right of payment to the payment of all Senior Indebtedness then outstanding,
shall be paid by the person making such payment or distribution directly to the
holders of Senior Indebtedness to the extent necessary to make payment in full
of all Senior Indebtedness, after giving effect to any concurrent payment or
distribution to the holders of Senior Indebtedness. In the event that any
payment or distribution of cash, property or securities shall be received by the
holders of the Notes in contravention of this Section before all Senior
Indebtedness is paid in full, or provision made for the payment thereof, such
payment or distribution shall be held in trust for the benefit of and shall be
paid over to the holders of such Senior Indebtedness or their representative or
representatives, or to the trustee or trustees under any indenture under which
any instrument evidencing any of such Senior Indebtedness may have been issued,
as their respective interests may appear, to the extent necessary to pay in full
all Senior Indebtedness remaining unpaid, after giving effect to any concurrent
payment or distribution to the holders of such Senior Indebtedness.

         In the event that any Note is declared due and payable before its
expressed maturity because of the occurrence of an Event of Default (under
circumstances when the provisions of
<PAGE>   22
                                      -12-

the first paragraph of this Section shall not be applicable), the holders of the
Senior Indebtedness outstanding at the time the Notes so become due and payable
because of such occurrence of such an Event of Default shall be entitled to
receive payment in full of all principal of and premium, if any, and interest on
all Senior Indebtedness before the holders of the Notes are entitled to receive
any payment on account of the principal of or interest on the Notes.

         SECTION 6.4. Subrogation of Notes. Subject to the payment in full of
all Senior Indebtedness, the holders of the Notes shall be subrogated to the
rights of the holders of Senior Indebtedness to receive payments or
distributions of assets of the Issuer made on the Senior Indebtedness until the
principal of and interest on the Notes shall be paid in full; and, for the
purposes of such subrogation, no payments or distributions to the holders of
Senior Indebtedness of any cash, property or securities to which the holders of
the Notes would be entitled except for the provisions of this Section, and no
payment over pursuant to the provisions of this Section to the holders of Senior
Indebtedness by holders of the Notes, shall, as between the Issuer, its
creditors other than the holders of Senior Indebtedness, and the holders of
Notes, be deemed to be a payment by the Issuer to or on account of Senior
Indebtedness, and no payments or distributions to the holders of the Notes of
cash, property or securities payable or distributable to the holders of the
Senior Indebtedness to which the holders of the Notes shall become entitled
pursuant to the provisions of this Section, shall, as between the Issuer, its
creditors other than the holders of Senior Indebtedness, and the holders of the
Notes, be deemed to be a payment by the Issuer to the holders of or on account
of the Notes.

         SECTION 6.5. Issuer Obligation to Pay Unconditional. The provisions of
this Section are solely for the purpose of defining the relative rights of the
holders of Senior Indebtedness on the one hand, and the holders of the Notes on
the other hand, and nothing herein shall impair, as between the Issuer and the
holders of the Notes, the obligation of the Issuer, which is unconditional and
absolute, to pay to the holders thereof the principal thereof and interest
thereon in accordance with the terms of the Notes nor shall anything herein
prevent the holders of the Notes from exercising all remedies otherwise
permitted by applicable law or under the Notes upon default under the Notes,
subject to the rights of holders of Senior Indebtedness under the provisions of
this Section to receive cash, property or securities otherwise payable or
deliverable to the holders of the Notes.

         SECTION 7.        Miscellaneous.

         SECTION 7.1. Modification of Notes. The Notes may be modified without
prior notice to any holder but with the written consent of the holders of a
majority in principal amount of the Notes or with the written consent of the
holders of a majority in principal amount of all notes issued under the
Subordinated Loan Agreement between the Issuer and Tailor Shareholder, as the
same may be amended or modified from time to time in accordance with its terms
(the "Loan Agreement"). Subject to Section 4.1 and Section 4.3, the holders of a
majority in principal amount of the Notes or a majority of principal amount of
all notes issued under the Loan Agreement may waive compliance by the Issuer
with any provision of the
<PAGE>   23
                                      -13-

Notes without prior notice to any holder. However, without the consent of each
holder affected, an amendment, supplement or waiver may not (1) reduce the
amount of Notes whose holders must consent to an amendment, supplement or
waiver, (2) reduce the rate or extend the time for payment for interest on any
Notes, (3) reduce the principal amount of or extend the fixed maturity of any
Notes or alter the redemption or repurchase provisions with respect thereto or
(4) make any Notes payable in money or property other than as stated in the
Notes. Notwithstanding the foregoing, amendments, supplements and waivers of
Section 5 may be obtained with the written consent of a majority in principal
amount of the Notes or a majority of principal amount of all notes issued under
the Loan Agreement prior to the occurrence of a Change of Control.

         The Issuer will use its best efforts to qualify an indenture with
respect to this Note at or prior to the time, if any, such qualification is
required under the Trust Indenture Act of 1939, as amended or similar law then
in effect.

         SECTION 7.2. Miscellaneous. This Note shall be deemed to be a contract
under the laws of the State of New York and for all purposes shall be construed
in accordance with the laws of said State, except as may otherwise be required
by mandatory provisions of law. The parties hereto, including all guarantors or
endorsers, hereby waive presentment, demand, notice, protest and all other
demands and notices in connection with the delivery, acceptance, performance and
enforcement of this Note, except as specifically provided herein, and assent to
extensions of the time of payment, or forbearance or other indulgence without
notice. The holder of this Note by acceptance of this Note agrees to be bound by
the provisions (including the subordination provisions) of this Note which are
expressly binding on such holder. In determining whether the holders of the
requisite aggregate principal amount of Notes have concurred in any direction,
consent or waiver as provided under the Notes, Notes which are owned by the
Issuer or any Subsidiary of the Issuer shall be disregarded and deemed not to be
outstanding for the purpose of any such determination. The Section headings
herein are for convenience only and shall not affect the construction hereof.
<PAGE>   24
                                      -14-

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed.

Dated:

                                                     MASCOTECH, INC.

                                                     By:
                                                        -----------------------
                                                            Name:
                                                            Title:
<PAGE>   25
                                                                       Exhibit B

                           FORM OF NOTICE OF ISSUANCE
MASCO CORPORATION
21001 Van Born Road
Taylor, MI  48180

Attention:  [                       ]

Ladies and Gentlemen:

         The undersigned, MascoTech, Inc., a Delaware corporation (the
"Company"), refers to the Subordinated Loan Agreement, dated as of [      ],
2000 (the "Subordinated Loan Agreement"), among the Company and Masco
Corporation, a Delaware corporation ("Tailor Shareholder"). Capitalized terms
used herein and not defined shall have the meanings assigned to them in the
Subordinated Loan Agreement. The Company hereby gives you notice pursuant to
Paragraph 2 of the Subordinated Loan Agreement that it desires to issue
Securities (the "Proposed Issuance") that Tailor Shareholder is required to
purchase under the Subordinated Loan Agreement, and in that connection sets
forth below the information relating to the Proposed Issuance:

         Proposed Issuance:

         The date of the Proposed Issuance is [                      ].

         The aggregate principal amount of the Proposed Issuance is [          ]
Dollars ($[ ]).

         1. The Company hereby certifies and represents that the following
statements are true as of the date hereof, and will be true on the date of the
Proposed Issuance:

         All representations and warranties made by the Company in Paragraph 6
of the Subordinated Loan Agreement are true and correct in all material
respects, with the same effect as though made on and as of the date of the
Proposed Issuance;

         2.       A Bankruptcy Event does not exist;

         3. [No Event of Default under the Senior Credit Facilities has occurred
and is continuing, or would result from the Proposed Issuance or would otherwise
exist immediately after giving effect to the Proposed Issuance.] [An Event of
Default under the Senior Credit Facilities has occurred and is continuing, or
would result from the Proposed Issuance or would otherwise exist immediately
after giving effect to the Proposed Issuance and the proceeds from the issuance
of the Securities will be used solely [to meet cash obligations in respect of
any of the Convertible Debentures upon maturity, acceleration or exercise of the
conversion privilege in respect thereof (whether before or after the occurrence
of the Event of
<PAGE>   26
                                      -16-

Default)] [to fund, in whole or in part, the aggregate amount of cash that is
(or will be) payable to holders of Convertible Debentures that are outstanding
on the date of this Notice].(1)

Dated:

                                             MASCOTECH, INC.

                                             By:
                                                --------------------------------
                                             Name:
                                             Title:

------------------------------------
(1)    Strike inapplicable language.<PAGE>   1
                                                                    Exhibit 10.b

                                MASCO CORPORATION
                       1991 LONG TERM STOCK INCENTIVE PLAN
                    (Amended and Restated September 13, 2000)

SECTION 1.  PURPOSES

     The purposes of the 1991 Long Term Stock Incentive Plan (the "Plan") are to
encourage selected employees of and consultants to Masco Corporation (the
"Company") and its Affiliates to acquire a proprietary interest in the Company
in order to create an increased incentive to contribute to the Company's future
success and prosperity, and enhance the ability of the Company and its
Affiliates to attract and retain exceptionally qualified individuals upon whom
the sustained progress, growth and profitability of the Company depend, thus
enhancing the value of the Company for the benefit of its stockholders.

SECTION 2.  DEFINITIONS

     As used in the Plan, the following terms shall have the meanings set forth
below:

     (a) "Affiliate" shall mean any entity in which the Company's direct or
indirect equity interest is at least twenty percent, and any other entity in
which the Company has a significant direct or indirect equity interest, whether
more or less than twenty percent, as determined by the Committee.

     (b) "Award" shall mean any Option, Stock Appreciation Right, Restricted
Stock, Restricted Stock Unit, Performance Award, Dividend Equivalent or Other
Stock-Based Award granted under the Plan.

     (c) "Award Agreement" shall mean any written agreement, contract or other
instrument or document evidencing any Award granted under the Plan.

     (d) "Code" shall mean the Internal Revenue Code of 1986, as amended from
time to time.

     (e) "Committee" shall mean a committee of the Company's directors
designated by the Board of Directors to administer the Plan and composed of not
less than two directors, each of whom is a "non-employee director" within the
meaning of Rule 16b-3.

     (f) "Dividend Equivalent" shall mean any right granted under Section 6(e)
of the Plan.

     (g) "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

     (h) "Incentive Stock Option" shall mean an Option granted under Section
6(a) of the Plan that is intended to meet the requirements of Section 422 of the
Code, or any successor provision thereto.

     (i) "Non-Qualified Stock Option" shall mean an Option granted under Section
6(a) of the Plan that is not intended to be an Incentive Stock Option.

     (j) "Option" shall mean an Incentive Stock Option or a Non-Qualified Stock
Option.

     (k) "Other Stock-Based Award" shall mean any right granted under Section
6(f) of the Plan.

     (l) "Participant" shall mean an employee of or consultant to the Company or
any Affiliate or a director of the Company designated to be granted an Award
under the Plan.

     (m) "Performance Award" shall mean any right granted under Section 6(d) of
the Plan.
<PAGE>   2
     (n) "Prior Plans" shall mean the Company's 1988 Restricted Stock Incentive
Plan and 1988 Stock Option Plan.

     (o) "Restricted Period" shall mean the period of time during which Awards
of Restricted Stock or Restricted Stock Units are subject to restrictions.

     (p) "Restricted Stock" shall mean any Share granted under Section 6(c) of
the Plan.

     (q) "Restricted Stock Unit" shall mean any right granted under Section 6(c)
of the Plan that is denominated in Shares.

     (r) "Rule 16b-3" shall mean Rule 16b-3 promulgated by the Securities and
Exchange Commission under the Exchange Act, or any successor rule or regulation.

     (s) "Section 16" shall mean Section 16 of the Exchange Act, the rules and
regulations promulgated by the Securities and Exchange Commission thereunder, or
any successor provision, rule or regulation.

     (t) "Shares" shall mean the Company's common stock, par value $1.00 per
share, and such other securities or property as may become the subject of
Awards, or become subject to Awards, pursuant to an adjustment made under
Section 4(c) of the Plan.

     (u) "Stock Appreciation Right" shall mean any right granted under Section
6(b) of the Plan.

SECTION 3.  ADMINISTRATION

     The Committee shall administer the Plan, and subject to the terms of the
Plan and applicable law, the Committee's authority shall include without
limitation the power to:

              (i) designate Participants;

              (ii) determine the types of Awards to be granted;

              (iii) determine the number of Shares to be covered by Awards and
         any payments, rights or other matters to be calculated in connection
         therewith;

              (iv) determine the terms and conditions of Awards and amend the
         terms and conditions of outstanding Awards;

              (v) determine how, whether, to what extent, and under what
         circumstances Awards may be settled or exercised in cash, Shares, other
         securities, other Awards or other property, or canceled, forfeited or
         suspended;

              (vi) determine how, whether, to what extent, and under what
         circumstances cash, Shares, other securities, other Awards, other
         property and other amounts payable with respect to an Award shall be
         deferred either automatically or at the election of the holder thereof
         or of the Committee;

              (vii) determine the methods or procedures for establishing the
         fair market value of any property (including, without limitation, any
         Shares or other securities) transferred, exchanged, given or received
         with respect to the Plan or any Award;

              (viii) prescribe and amend the forms of Award Agreements and other
         instruments required under or advisable with respect to the Plan;

                                     - 2 -
<PAGE>   3

              (ix) designate Options granted to key employees of the Company or
         its subsidiaries as Incentive Stock Options;

              (x) interpret and administer the Plan, Award Agreements, Awards
         and any contract, document, instrument or agreement relating thereto;

              (xi) establish, amend, suspend or waive such rules and regulations
         and appoint such agents as it shall deem appropriate for the
         administration of the Plan;

              (xii) decide all questions and settle all controversies and
         disputes which may arise in connection with the Plan, Award Agreements
         and Awards;

              (xiii) delegate to directors of the Company the authority to
         designate Participants and grant Awards, and to amend Awards granted to
         Participants;

              (xiv) make any other determination and take any other action that
         the Committee deems necessary or desirable for the interpretation,
         application and administration of the Plan, Award Agreements and
         Awards.

     All designations, determinations, interpretations and other decisions under
or with respect to the Plan, Award Agreements or any Award shall be within the
sole discretion of the Committee, may be made at any time and shall be final,
conclusive and binding upon all persons, including the Company, Affiliates,
Participants, beneficiaries of Awards and stockholders of the Company.

SECTION 4.  SHARES AVAILABLE FOR AWARDS

     (a)  Shares Available.  Subject to adjustment as provided in Section 4(c):

         The maximum number of Shares available for issuance in respect of
Awards made under the Plan on or after May 17, 2000 shall be 20,000,000 Shares
plus up to an additional 20,000,000 Shares to the extent Shares are acquired by
the Company, including Shares purchased in the open market, on or after May 17,
2000 in connection with awards made under the Plan, provided, however, that in
the event (i) an Award in respect of Shares under the Plan or the Prior Plans is
settled for cash or expires or is terminated unexercised as to any Shares
covered thereby, (ii) any Award under the Plan or the Prior Plans in respect of
shares is cancelled or forfeited for any reason without the delivery of Shares,
(iii) any Option or other Award granted is exercised through the surrender of
Shares, or (iv) tax obligations are satisfied through the surrender or
withholding of Shares, the number of Shares available for issuance in respect of
Awards under the Plan shall be increased by the number of Shares not delivered
in connection with any such Award or so surrendered or withheld. Not more than
20,000,000 shares may be awarded as incentive stock options on or after May 17,
2000. Subject to the foregoing, Shares may be made available from the authorized
but unissued Shares of the Company or from Shares reacquired by the Company,
including but not limited to Shares purchased in the open market.

     (b) Individual Stock-Based Awards. Subject to adjustment as provided in
Section 4(c), no Participant may receive Options or Stock Appreciation Rights
under the Plan in any calendar year that relate to more than 4,000,000 Shares in
the aggregate; provided, however, that such number may be increased with respect
to any Participant by any Shares available for grant to such Participant in
accordance with this Paragraph 4(b) in any prior years that were not granted in
such prior year beginning on or after January 1, 2000. No provision of this
Paragraph 4(b) shall be construed as limiting the amount of any other
stock-based or cash-based Award which may be granted to any Participant.

     (c) Adjustments. Upon the occurrence of any dividend or other distribution
(whether in the form of cash, Shares, other securities or other property),
change in the capital or shares of capital stock, recapitalization, stock split,
reverse stock split, reorganization, merger, consolidation, split-up, spin-off,

                                     - 3 -
<PAGE>   4

combination, repurchase, or exchange of Shares or other securities of the
Company, issuance of warrants or other rights to purchase Shares or other
securities of the Company or extraordinary transaction or event which affects
the Shares, then the Committee shall have the authority to make such adjustment,
if any, in such manner as it deems appropriate, in (i) the number and type of
Shares (or other securities or property) which thereafter may be made the
subject of Awards, (ii) outstanding Awards including without limitation the
number and type of Shares (or other securities or property) subject thereto, and
(iii) the grant, purchase or exercise price with respect to outstanding Awards
and, if deemed appropriate, make provision for cash payments to the holders of
outstanding Awards; provided, however, that the number of Shares subject to any
Award denominated in Shares shall always be a whole number.

SECTION 5.  ELIGIBILITY

     Any employee of or consultant to the Company or any Affiliate, or any
director of the Company, is eligible to be designated a Participant.

SECTION 6.  AWARDS

     (a)  Options. The Committee is authorized to grant Options to Participants.

              (i) Committee Determinations. Subject to the terms of the Plan,
         the Committee shall determine:

                  (A) the purchase price per Share under each Option, provided,
              however, that such price shall be not less than 100% of the fair
              market value of the Shares underlying such Option on the date of
              grant;

                  (B) the term of each Option; and

                  (C) the time or times at which an Option may be exercised, in
              whole or in part, the method or methods by which and the form or
              forms (including, without limitation, cash, Shares, other Awards
              or other property, or any combination thereof, having a fair
              market value on the exercise date equal to the relevant exercise
              price) in which payment of the exercise price with respect thereto
              may be made or deemed to have been made. The terms of any
              Incentive Stock Option granted under the Plan shall comply in all
              respects with the provisions of Section 422 of the Code, or any
              successor provision thereto, and any regulations promulgated
              thereunder.

         Subject to the terms of the Plan, the Committee may impose such
conditions or restrictions on any Option as it deems appropriate.

              (ii) Other Terms.  Unless otherwise determined by the Committee:

                  (A) A Participant electing to exercise an Option shall give
              written notice to the Company, as may be specified by the
              Committee, of exercise of the Option and the number of Shares
              elected for exercise, such notice to be accompanied by such
              instruments or documents as may be required by the Committee, and
              shall tender the purchase price of the Shares elected for
              exercise.

                  (B) At the time of exercise of an Option payment in full in
              cash or in Shares (that have been held by the Participant for at
              least six months) or any combination thereof, at the option of the
              Participant, shall be made for all Shares then being purchased.

                  (C) The Company shall not be obligated to issue any Shares
              unless and until:

                                     - 4 -
<PAGE>   5

                           (I) if the class of Shares at the time is listed upon
                  any stock exchange, the Shares to be issued have been listed,
                  or authorized to be added to the list upon official notice of
                  issuance, upon such exchange, and

                           (II) in the opinion of the Company's counsel there
                  has been compliance with applicable law in connection with the
                  issuance and delivery of Shares and such issuance shall have
                  been approved by the Company's counsel.

         Without limiting the generality of the foregoing, the Company may
require from the Participant such investment representation or such agreement,
if any, as the Company's counsel may consider necessary in order to comply with
the Securities Act of 1933 as then in effect, and may require that the
Participant agree that any sale of the Shares will be made only in such manner
as shall be in accordance with law and that the Participant will notify the
Company of any intent to make any disposition of the Shares whether by sale,
gift or otherwise. The Participant shall take any action reasonably requested by
the Company in such connection. A Participant shall have the rights of a
stockholder only as and when Shares have been actually issued to the Participant
pursuant to the Plan.

                  (D) If the employment of or consulting arrangement with a
              Participant terminates for any reason (including termination by
              reason of the fact that an entity is no longer an Affiliate) other
              than the Participant's death, the Participant may thereafter
              exercise the Option as provided below, except that the Committee
              may terminate the unexercised portion of the Option concurrently
              with or at any time following termination of the employment or
              consulting arrangement (including termination of employment upon a
              change of status from employee to consultant) if it shall
              determine that the Participant has engaged in any activity
              detrimental to the interests of the Company or an Affiliate. If
              such termination is voluntary on the part of the Participant
              (other than retirement on or after normal retirement date), the
              Option may be exercised only within ten days after the date of
              termination. If such termination is involuntary on the part of the
              Participant, the Option may be exercised within three months after
              the date of termination. If an employee retires on or after normal
              retirement date or if the employment or consulting relationship is
              terminated by reason of permanent and total disability, Options
              shall continue to become exercisable and shall remain exercisable
              in accordance with their terms and the provisions of this Plan.
              Unless the Committee determines otherwise, a change in a
              Participant's status from employee to consultant shall be
              considered a voluntary termination of employment as to any Option
              granted on or after September 13, 2000 (other than restoration
              Options granted with respect to Options granted prior to September
              13, 2000). For purposes of this Paragraph (D), a Participant's
              employment or consulting arrangement shall not be considered
              terminated (i) in the case of approved sick leave or other bona
              fide leave of absence (not to exceed one year), (ii) in the case
              of a transfer of employment or the consulting arrangement among
              the Company and Affiliates, or (iii) by virtue of a change of
              status from employee to consultant or from consultant to employee,
              except as provided above.

                  (E) If a Participant dies, all unexercisable installments of
              the Option shall thereupon become exercisable and, at any time or
              times within one year after death such Option may be exercised, as
              to all or any unexercised portion of the Option. The Company may
              decline to deliver Shares to a designated beneficiary until it
              receives indemnity against claims of third parties satisfactory to
              the Company. Except as so exercised such Option shall expire at
              the end of such period.

                  (F) Except as provided above, an Option may be exercised only
              if and to the extent such Option was exercisable at the date of
              termination of employment or the consulting arrangement, and an
              Option may not be exercised at a time when the Option would not
              have been exercisable had the employment or consulting arrangement
              continued.

                                     - 5 -
<PAGE>   6
                  (G) The foregoing provisions of clauses (ii)(D) and (ii)(E)
              with respect to death, disability and retirement shall apply to
              all outstanding Options granted prior to September 13, 2000 other
              than substitute Options granted in replacement of options issued
              by a company prior to its acquisition by the Company.

              (iii) Restoration Options. The Committee may grant a Participant
         the right to receive a restoration Option with respect to an Option or
         any other stock option granted by the Company. Unless the Committee
         shall otherwise determine, a restoration Option shall provide that the
         underlying option must be exercised while the Participant is an
         employee of or, with respect to Options granted prior to September 13,
         2000, a consultant to the Company or an Affiliate and the number of
         Shares which are subject to a restoration Option shall not exceed the
         number of whole Shares exchanged in payment for the exercise of the
         original option.

     (b) Stock Appreciation Rights. The Committee is authorized to grant Stock
Appreciation Rights to Participants. Subject to the terms of the Plan, a Stock
Appreciation Right granted under the Plan shall confer on the holder thereof a
right to receive, upon exercise thereof, the excess of (i) the fair market value
of one Share on the date of exercise or, if the Committee shall so determine in
the case of any such right other than one related to any Incentive Stock Option,
at any time during a specified period before or after the date of exercise over
(ii) the grant price of the right as specified by the Committee. Subject to the
terms of the Plan, the Committee shall determine the grant price, term, methods
of exercise and settlement and any other terms and conditions of any Stock
Appreciation Right and may impose such conditions or restrictions on the
exercise of any Stock Appreciation Right as it may deem appropriate.

     (c)  Restricted Stock and Restricted Stock Units.

              (i) Issuance. The Committee is authorized to grant to Participants
         Awards of Restricted Stock, which shall consist of Shares, and
         Restricted Stock Units which shall give the Participant the right to
         receive cash, other securities, other Awards or other property, in each
         case subject to the termination of the Restricted Period determined by
         the Committee.

              (ii) Restrictions. The Restricted Period may differ among
         Participants and may have different expiration dates with respect to
         portions of Shares covered by the same Award. Subject to the terms of
         the Plan, Awards of Restricted Stock and Restricted Stock Units shall
         have such restrictions as the Committee may impose (including, without
         limitation, limitations on the right to vote Restricted Stock or the
         right to receive any dividend or other right or property), which
         restrictions may lapse separately or in combination at such time or
         times, in installments or otherwise. Unless the Committee shall
         otherwise determine, any Shares or other securities distributed with
         respect to Restricted Stock or which a Participant is otherwise
         entitled to receive by reason of such Shares shall be subject to the
         restrictions contained in the applicable Award Agreement. Subject to
         the aforementioned restrictions and the provisions of the Plan,
         Participants shall have all of the rights of a stockholder with respect
         to Shares of Restricted Stock.

              (iii) Registration. Restricted Stock granted under the Plan may be
         evidenced in such manner as the Committee may deem appropriate,
         including, without limitation, book-entry registration or issuance of
         stock certificates.

              (iv) Forfeiture.  Except as otherwise determined by the Committee:

                  (A) If the employment of or consulting arrangement with a
              Participant terminates for any reason (including termination by
              reason of the fact that any entity is no longer an Affiliate),
              other than the Participant's death or permanent and total
              disability or, in the case of an employee, retirement on or after
              normal retirement date, all Shares of Restricted Stock theretofore
              awarded to the Participant which are still subject to restrictions
              shall upon

                                     - 6 -
<PAGE>   7
               such termination of employment or the consulting relationship be
               forfeited and transferred back to the Company. Unless the
               Committee determines otherwise, a change in a Participant's
               status from employee to consultant shall be considered a
               termination of employment as to any Award of Restricted Stock
               granted on or after September 13, 2000. Notwithstanding the
               foregoing or Paragraph (C) below, if a Participant continues to
               hold an Award of Restricted Stock following termination of the
               employment or consulting arrangement (including retirement), the
               Shares of Restricted Stock which remain subject to restrictions
               shall nonetheless be forfeited and transferred back to the
               Company if the Committee at any time thereafter determines that
               the Participant has engaged in any activity detrimental to the
               interests of the Company or an Affiliate. For purposes of this
               Paragraph (A), a Participant's employment or consulting
               arrangement shall not be considered terminated (i) in the case of
               approved sick leave or other bona fide leave of absence (not to
               exceed one year), (ii) in the case of a transfer of employment or
               the consulting arrangement among the Company and Affiliates, or
               (iii) by virtue of a change of status from employee to consultant
               or from consultant to employee, except as provided above.

                  (B) If a Participant ceases to be employed or retained by the
              Company or an Affiliate by reason of death or permanent and total
              disability or if following retirement a Participant continues to
              have rights under an Award of Restricted Stock and thereafter
              dies, the restrictions contained in the Award shall lapse with
              respect to such Restricted Stock.

                  (C) If an employee ceases to be employed by the Company or an
              Affiliate by reason of retirement on or after normal retirement
              date, the restrictions contained in the Award of Restricted Stock
              shall continue to lapse in the same manner as though employment
              had not terminated.

                  (D) At the expiration of the Restricted Period as to Shares
              covered by an Award of Restricted Stock, the Company shall deliver
              the Shares as to which the Restricted Period has expired, as
              follows:

                      (1) if an assignment to a trust has been made in
                  accordance with Section 6(g)(iv)(B)(2)(c), to such trust; or

                      (2) if the Restricted Period has expired by reason of
                  death and a beneficiary has been designated in form approved
                  by the Company, to the beneficiary so designated; or

                      (3) in all other cases, to the Participant or the legal
                  representative of the Participant's estate.

     (d) Performance Awards. The Committee is authorized to grant Performance
Awards to Participants. Subject to the terms of the Plan, a Performance Award
granted under the Plan (i) may be denominated or payable in cash, Shares
(including, without limitation, Restricted Stock), other securities, other
Awards, or other property and (ii) shall confer on the holder thereof rights
valued as determined by the Committee and payable to, or exercisable by, the
holder of the Performance Award, in whole or in part, upon the achievement of
such performance goals during such performance periods as the Committee shall
establish. Subject to the terms of the Plan, the performance goals to be
achieved during any performance period, the length of any performance period,
the amount of any Performance Award granted, the amount of any payment or
transfer to be made pursuant to any Performance Award and other terms and
conditions shall be determined by the Committee.

      (e) Dividend Equivalents. The Committee is authorized to grant to
Participants Awards under which the holders thereof shall be entitled to receive
payments equivalent to dividends or interest with respect to a number of Shares
determined by the Committee, and the Committee may provide that such amounts (if
any) shall be deemed to have been reinvested in additional Shares or otherwise
reinvested.

                                     - 7 -
<PAGE>   8

Subject to the terms of the Plan, such Awards may have such terms and conditions
as the Committee shall determine.

     (f) Other Stock-Based Awards. The Committee is authorized to grant to
Participants such other Awards that are denominated or payable in, valued in
whole or in part by reference to or otherwise based on or related to Shares
(including, without limitation, securities convertible into Shares), as are
deemed by the Committee to be consistent with the purposes of the Plan,
provided, however, that such grants to persons who are subject to Section 16
must comply with the provisions of Rule 16b-3. Subject to the terms of the Plan,
the Committee shall determine the terms and conditions of such Awards. Shares or
other securities delivered pursuant to a purchase right granted under this
Section 6(f) shall be purchased for such consideration, which may be paid by
such method or methods and in such form or forms, including, without limitation,
cash, Shares, other securities, other Awards or other property or any
combination thereof, as the Committee shall determine.

     (g)  General.

         (i) No Cash Consideration for Awards. Awards may be granted for no cash
     consideration or for such minimal cash consideration as may be required by
     applicable law.

         (ii) Awards May Be Granted Separately or Together. Awards may, in the
     discretion of the Committee, be granted either alone or in addition to, in
     tandem with or in substitution for any other Award or any award granted
     under any other plan of the Company or any Affiliate. Awards granted in
     addition to or in tandem with other Awards or in addition to or in tandem
     with awards granted under another plan of the Company or any Affiliate, may
     be granted either at the same time as or at a different time from the grant
     of such other Awards or awards.

         (iii) Forms of Payment Under Awards. Subject to the terms of the Plan
     and of any applicable Award Agreement, payments or transfers to be made by
     the Company or an Affiliate upon the grant, exercise, or payment of an
     Award may be made in such form or forms as the Committee shall determine,
     including, without limitation, cash, Shares, other securities, other
     Awards, or other property, or any combination thereof, and may be made in a
     single payment or transfer, in installments, or on a deferred basis, in
     each case in accordance with rules and procedures established by the
     Committee. Such rules and procedures may include, without limitation,
     provisions for the payment or crediting of reasonable interest on
     installment or deferred payments or the grant or crediting of Dividend
     Equivalents in respect of installment or deferred payments.

         (iv) Limits on Transfer of Awards.

                  (A) Except as the Committee may otherwise determine, no Award
              or right under any Award may be sold, encumbered, pledged,
              alienated, attached, assigned or transferred in any manner and any
              attempt to do any of the foregoing shall be void and unenforceable
              against the Company.

                  (B) Notwithstanding the provisions of Paragraph (A) above:

                      (1) An Option may be transferred:

                           (a) to a beneficiary designated by the Participant in
                      writing on a form approved by the Committee;

                           (b) by will or the applicable laws of descent and
                      distribution to the personal representative, executor or
                      administrator of the Participant's estate; or

                                     - 8 -
<PAGE>   9

                           (c) to a revocable grantor trust established by the
                      Participant for the sole benefit of the Participant during
                      the Participant's life, and under the terms of which the
                      Participant is and remains the sole trustee until death or
                      physical or mental incapacity. Such assignment shall be
                      effected by a written instrument in form and content
                      satisfactory to the Committee, and the Participant shall
                      deliver to the Committee a true copy of the agreement or
                      other document evidencing such trust. If in the judgment
                      of the Committee the trust to which a Participant may
                      attempt to assign rights under such an Award does not meet
                      the criteria of a trust to which an assignment is
                      permitted by the terms hereof, or if after assignment,
                      because of amendment, by force of law or any other reason
                      such trust no longer meets such criteria, such attempted
                      assignment shall be void and may be disregarded by the
                      Committee and the Company and all rights to any such
                      Options shall revert to and remain solely in the
                      Participant. Notwithstanding a qualified assignment, the
                      Participant, and not the trust to which rights under such
                      an Option may be as signed, for the purpose of determining
                      compensation arising by reason of the Option shall
                      continue to be considered an employee or consultant, as
                      the case may be, of the Company or an Affiliate, but such
                      trust and the Participant shall be bound by all of the
                      terms and conditions of the Award Agreement and this Plan.
                      Shares issued in the name of and delivered to such trust
                      shall be conclusively considered issuance and delivery to
                      the Participant.

                      (2) A Participant may assign or transfer rights under an
              Award of Restricted Stock or Restricted Stock Units:

                           (a) to a beneficiary designated by the Participant in
                  writing on a form approved by the Committee;

                           (b) by will or the applicable laws of descent and
                  distribution to the personal representative, executor or
                  administrator of the Participant's estate; or

                           (c) to a revocable grantor trust established by the
                  Participant for the sole benefit of the Participant during the
                  Participant's life, and under the terms of which the
                  Participant is and remains the sole trustee until death or
                  physical or mental incapacity. Such assignment shall be
                  effected by a written instrument in form and content
                  satisfactory to the Committee, and the Participant shall
                  deliver to the Committee a true copy of the agreement or other
                  document evidencing such trust. If in the judgment of the
                  Committee the trust to which a Participant may attempt to
                  assign rights under such an Award does not meet the criteria
                  of a trust to which an assignment is permitted by the terms
                  hereof, or if after assignment, because of amendment, by force
                  of law or any other reason such trust no longer meets such
                  criteria, such attempted assignment shall be void and may be
                  disregarded by the Committee and the Company and all rights to
                  any such Awards shall revert to and remain solely in the
                  Participant. Notwithstanding a qualified assignment, the
                  Participant, and not the trust to which rights under such an
                  Award may be assigned, for the purpose of determining
                  compensation arising by reason of the Award shall continue to
                  be considered an employee or consultant, as the case may be,
                  of the Company or an Affiliate, but such trust and the
                  Participant shall be bound by all of the terms and conditions
                  of the Award Agreement and this Plan. Shares issued in the
                  name of and delivered to such trust shall be conclusively
                  considered issuance and delivery to the Participant.

                   (3) The Committee shall not permit directors or officers of
              the Company for purposes of Section 16 to transfer or assign
              Awards except as permitted under Rule 16b-3.

                                     - 9 -
<PAGE>   10
              (C) The Committee, the Company and its officers, agents and
         employees may rely upon any beneficiary designation, assignment or
         other instrument of transfer, copies of trust agreements and any other
         documents delivered to them by or on behalf of the Participant which
         they believe genuine and any action taken by them in reliance thereon
         shall be conclusive and binding upon the Participant, the personal
         representatives of the Participant's estate and all persons asserting a
         claim based on an Award. The delivery by a Participant of a beneficiary
         designation, or an assignment of rights under an Award as permitted
         hereunder, shall constitute the Participant's irrevocable undertaking
         to hold the Committee, the Company and its officers, agents and
         employees harmless against claims, including any cost or expense
         incurred in defending against claims, of any person (including the
         Participant) which may be asserted or alleged to be based on an Award
         subject to a beneficiary designation or an assignment. In addition, the
         Company may decline to deliver Shares to a beneficiary until it
         receives indemnity against claims of third parties satisfactory to the
         Company.

      (v) Share Certificates. All certificates for Shares or other securities
delivered under the Plan pursuant to any Award or the exercise thereof shall be
subject to such stop transfer orders and other restrictions as the Committee may
deem advisable under the Plan or the rules, regulations and other requirements
of the Securities and Exchange Commission, any stock exchange upon which such
Shares or other securities are then listed and any applicable Federal or state
securities laws, and the Committee may cause a legend or legends to be put on
any such certificates to make appropriate reference to such restrictions.

     (vi) Change in Control.

              (A) Notwithstanding any of the provisions of this Plan or
         instruments evidencing Awards granted hereunder, upon a Change in
         Control of the Company (as hereinafter defined) the vesting of all
         rights of Participants under outstanding Awards shall be accelerated
         and all restrictions thereon shall terminate in order that Participants
         may fully realize the benefits thereunder. Such acceleration shall
         include, without limitation, the immediate exercisability in full of
         all Options and the termination of restrictions on Restricted Stock and
         Restricted Stock Units. Further, in addition to the Committee's
         authority set forth in Section 4(c), the Committee, as constituted
         before such Change in Control, is authorized, and has sole discretion,
         as to any Award, either at the time such Award is made hereunder or any
         time thereafter, to take any one or more of the following actions: (i)
         provide for the purchase of any such Award, upon the Participant's
         request, for an amount of cash equal to the amount that could have been
         attained upon the exercise of such Award or realization of the
         Participant's rights had such Award been currently exercisable or
         payable; (ii) make such adjustment to any such Award then outstanding
         as the Committee deems appropriate to reflect such Change in Control;
         and (iii) cause any such Award then outstanding to be assumed, or new
         rights substituted therefor, by the acquiring or surviving corporation
         after such Change in Control.

              (B) With respect to any Award granted hereunder prior to December
         6, 1995, a Change in Control shall occur if:

                  (1) any "person" or "group of persons" as such terms are used
              in Sections 13(d) and 14(d) of the Exchange Act, other than
              pursuant to a transaction or agreement previously approved by the
              Board of Directors of the Company, directly or indirectly
              purchases or otherwise becomes the "beneficial owner" (as defined
              in Rule 13d-3 under the Exchange Act) or has the right to acquire
              such beneficial ownership (whether or not such right is
              exercisable immediately, with the passage of time, or subject to
              any condition) of voting securities representing 25 percent or
              more of the combined voting power of all outstanding voting
              securities of the Company; or

                                     - 10 -
<PAGE>   11
                  (2) during any period of twenty-four consecutive calendar
              months, the individuals who at the beginning of such period
              constitute the Company's Board of Directors, and any new directors
              whose election by such Board or nomination for election by
              stockholders was approved by a vote of at least two-thirds of the
              members of such Board who were either directors on such Board at
              the beginning of the period or whose election or nomination for
              election as directors was previously so approved, for any reason
              cease to constitute at least a majority of the members thereof.

              (C) Notwithstanding the provisions of subparagraph (B), with
         respect to Awards granted hereunder on or after December 6, 1995, a
         Change in Control shall occur only if the event described in this
         subparagraph (C) shall have occurred. With respect to any other Award
         granted prior thereto, a Change in Control shall occur if any of the
         events described in subparagraphs (B) or (C) shall have occurred,
         unless the holder of any such Award shall have consented to the
         application of this subparagraph (C) in lieu of the foregoing
         subparagraph (B). A Change in Control for purposes of this subparagraph
         (C) shall occur if, during any period of twenty-four consecutive
         calendar months, the individuals who at the beginning of such period
         constitute the Company's Board of Directors, and any new directors
         (other than Excluded Directors, as hereinafter defined), whose election
         by such Board or nomination for election by stockholders was approved
         by a vote of at least two-thirds of the members of such Board who were
         either directors on such Board at the beginning of the period or whose
         election or nomination for election as directors was previously so
         approved, for any reason cease to constitute at least a majority of the
         members thereof. For purposes hereof, "Excluded Directors" are
         directors whose election by the Board or approval by the Board for
         stockholder election occurred within one year of any "person" or "group
         of persons", as such terms are used in Sections 13(d) and 14(d) of the
         Exchange Act, commencing a tender offer for, or becoming the beneficial
         owner of, voting securities representing 25 percent or more of the
         combined voting power of all outstanding voting securities of the
         Company, other than pursuant to a tender offer approved by the Board
         prior to its commencement or pursuant to stock acquisitions approved by
         the Board prior to their representing 25 percent or more of such
         combined voting power.

              (D) (1) In the event that subsequent to a Change in Control it is
         determined that any payment or distribution by the Company to or for
         the benefit of a Participant, whether paid or payable or distributed or
         distributable pursuant to the terms of this Plan or otherwise, other
         than any payment pursuant to this subparagraph (D) (a "Payment"), would
         be subject to the excise tax imposed by Section 4999 of the Code or any
         interest or penalties with respect to such excise tax (such excise tax,
         together with any such interest and penalties, are hereinafter
         collectively referred to as the "Excise Tax"), then such Participant
         shall be entitled to receive from the Company, within 15 days following
         the determination described in (2) below, an additional payment
         ("Excise Tax Adjustment Payment") in an amount such that after payment
         by such Participant of all applicable Federal, state and local taxes
         (computed at the maximum marginal rates and including any interest or
         penalties imposed with respect to such taxes), including any Excise
         Tax, imposed upon the Excise Tax Adjustment Payment, such Participant
         retains an amount of the Excise Tax Adjustment Payment equal to the
         Excise Tax imposed upon the Payments.

                  (2) All determinations required to be made under this Section
         6(g)(vi)(D), including whether an Excise Tax Adjustment Payment is
         required and the amount of such Excise Tax Adjustment Payment, shall be
         made by PricewaterhouseCoopers LLP, or such other national accounting
         firm as the Company, or, subsequent to a Change in Control, the Company
         and the Participant jointly, may designate, for purposes of the Excise
         Tax, which shall provide detailed supporting calculations to the
         Company and the affected Participant within 15 business days of the
         date of the applicable Payment. Except as hereinafter provided, any
         determination by PricewaterhouseCoopers LLP, or such other national
         accounting firm, shall be binding upon the

                                     - 11 -
<PAGE>   12
         Company and the Participant. As a result of the uncertainty in the
         application of Section 4999 of the Code that may exist at the time of
         the initial determination hereunder, it is possible that (x) certain
         Excise Tax Adjustment Payments will not have been made by the Company
         which should have been made (an "Underpayment"), or (y) certain Excise
         Tax Adjustment Payments will have been made which should not have been
         made (an "Overpayment"), consistent with the calculations required to
         be made hereunder. In the event of an Underpayment, such Underpayment
         shall be promptly paid by the Company to or for the benefit of the
         affected Participant. In the event that the Participant discovers that
         an Overpayment shall have occurred, the amount thereof shall be
         promptly repaid to the Company.

                  (3) This Section 6(g)(vi)(D) shall not apply to any Award (x)
         that was granted prior to February 17, 1993 and (y) the holder of which
         is an executive officer of the Company, as determined under the
         Exchange Act.

(vii) Cash Settlement. Notwithstanding any provision of this Plan or of any
Award Agreement to the contrary, any Award outstanding hereunder may at any time
be cancelled in the Committee's sole discretion upon payment of the value of
such Award to the holder thereof in cash or in another Award hereunder, such
value to be determined by the Committee in its sole discretion.

     (viii)Replacement Options. No outstanding option may be cancelled and
replaced with an option having a lower exercise price.

SECTION 7.  AMENDMENT AND TERMINATION

     Except to the extent prohibited by applicable law and unless otherwise
expressly provided in an Award Agreement or in the Plan:

     (a) Amendments to the Plan. The Board of Directors of the Company may amend
the Plan and the Board of Directors or the Committee may amend any outstanding
Award; provided, however, that (i) no Plan amendment shall be effective until
approved by stockholders of the Company insofar as stockholder approval thereof
is required in order for the Plan to continue to satisfy the conditions of Rule
16b-3, and (ii) without the consent of affected Participants no amendment of the
Plan or of any Award may impair the rights of Participants under outstanding
Awards, and (iii) no Option may be amended to reduce its initial exercise price
other than in connection with an event described in Section 4(c) hereof.

     (b) Waivers. The Committee may waive any conditions or rights under any
Award theretofore granted, prospectively or retroactively, without the consent
of any Participant.

     (c) Adjustments of Awards Upon the Occurrence of Certain Unusual or
Nonrecurring Events. The Committee shall be authorized to make adjustments in
the terms and conditions of, and the criteria included in, Awards in recognition
of unusual or nonrecurring events (including, without limitation, the events
described in Section 4(c) hereof) affecting the Company, any Affiliate, or the
financial statements of the Company or any Affiliate, or of changes in
applicable laws, regulations, or accounting principles, whenever the Committee
determines that such adjustments are appropriate in order to prevent dilution or
enlargement of the benefits or potential benefits to be made available under the
Plan.

     (d) Correction of Defects, Omissions, and Inconsistencies. The Committee
may correct any defect, supply any omission or reconcile any inconsistency in
the Plan or any Award in the manner and to the extent it shall deem desirable to
effectuate the Plan.

SECTION 8.  GENERAL PROVISIONS

     (a) No Rights to Awards. No Participant or other person shall have any
claim to be granted any Award under the Plan, and there is no obligation for
uniformity of treatment of Participants or holders or

                                     - 12 -
<PAGE>   13
beneficiaries of Awards under the Plan. The terms and conditions of Awards of
the same type and the determination of the Committee to grant a waiver or
modification of any Award and the terms and conditions thereof need not be the
same with respect to each Participant.

     (b) Withholding. The Company or any Affiliate shall be authorized to
withhold from any Award granted or any payment due or transfer made under any
Award or under the Plan the amount (in cash, Shares, other securities, other
Awards or other property) of withholding taxes due in respect of an Award, its
exercise or any payment or transfer under such Award or under the Plan and to
take such other action as may be necessary in the opinion of the Company or
Affiliate to satisfy all obligations for the payment of such taxes.

     (c) No Limit on Other Compensation Arrangements. Nothing contained in the
Plan shall prevent the Company or any Affiliate from adopting or continuing in
effect other or additional compensation arrangements, including the grant of
options and other stock-based awards, and such arrangements may be either
generally applicable or applicable only in specific cases.

     (d) No Right to Employment. The grant of an Award shall not be construed as
giving a Participant the right to be retained in the employ of the Company or
any Affiliate. Further, the Company or an Affiliate may at any time dismiss a
Participant from employment, free from any liability, or any claim under the
Plan, unless otherwise expressly provided in the Plan or in any Award Agreement
or other written agreement with the Participant.

     (e) Governing Law. The validity, construction and effect of the Plan and
any rules and regulations relating to the Plan shall be determined in accordance
with the laws of the State of Michigan and applicable Federal law.

     (f) Severability. If any provision of the Plan or any Award is or becomes
or is deemed to be invalid, illegal or unenforceable in any jurisdiction or as
to any person or Award, or would disqualify the Plan or any Award under any law
deemed applicable by the Committee, such provision shall be construed or deemed
amended to conform to applicable laws, or if it cannot be so construed or deemed
amended without, in the determination of the Committee, materially altering the
intent of the Plan or the Award, such provision shall be stricken as to such
jurisdiction, person or Award, and the remainder of the Plan and any such Award
shall remain in full force and effect.

     (g) No Trust or Fund Created. Neither the Plan nor any Award shall create
or be construed to create a trust or separate fund of any kind or a fiduciary
relationship between the Company or any Affiliate and a Participant or any other
person. To the extent that any person acquires a right to receive payments from
the Company or any Affiliate pursuant to an Award, such right shall be no
greater than the right of any unsecured general creditor of the Company or any
Affiliate.

     (h) No Fractional Shares. No fractional Shares shall be issued or delivered
pursuant to the Plan or any Award, and the Committee shall determine whether
cash, other securities, or other property shall be paid or transferred in lieu
of any fractional Shares, or whether such fractional Shares or any rights
thereto shall be cancelled, terminated or otherwise eliminated.

     (i) Headings. Headings are given to the Sections and subsections of the
Plan solely as a convenience to facilitate reference. Such headings shall not be
deemed in any way material or relevant to the construction or interpretation of
the Plan or any provision thereof.

SECTION 9.  EFFECTIVE DATE OF THE PLAN

     The Plan shall be effective as of the date of its approval by the Company's
stockholders.

                                     - 13 -

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