Document:

Exhibit 10.k.i

 

 

June 29, 2009

 

Mr. Richard A. Manoogian

Executive Chairman

Masco Corporation

21001 Van Born Road

Taylor, MI  48180

 

Dear Richard:

 

This letter will confirm our discussions and understandings with regard to your retirement from a full-time senior executive position with Masco Corporation and will supersede the letter from Peter A. Dow dated April 3, 2007.  This letter agreement has the approval of the Organization and Compensation Committee, the Corporate Governance and Nominating  Committee and the full Board and summarizes our understandings for going forward.

 

Transition.  Following your retirement as a Masco Corporation employee as of June 30, 2009, you have agreed to serve, but at the ongoing pleasure of the Board, as the Company’s non-executive Chairman of the Board.

 

Compensation.  As long as you serve in the capacity as Chairman of the Board, your compensation will consist of the following:

 

·                  As a non-employee director, you will receive the same retainer and other compensation as the other non-employee directors.  (You will not, of course, receive the initial one-time option granted to new non-employee directors.)

·                  You will also receive an additional cash retainer for your service as Chairman of the Board at an annual rate of $350,000.

 

Business support.  In order to assist you in discharging your duties as Chairman of the Board, at no cost to you, the Company will provide for this purpose:

 

·                  Administrative support comparable to that currently provided.

·                  Office space for you and such administrative support comparable to that currently provided.

·                  Reasonable supporting equipment, supplies, subscriptions and other services related to the office space occupied by you and your administrative support comparable to that currently provided.

 

21001 VAN BORN ROAD

TAYLOR, MICHIGAN 48180

313-274-7400

 

 

In addition, to further assist you in discharging such duties, at no cost to you, the Company will make available use of the Company’s car and driver and use of Company aircraft.

 

Other benefits.  In addition to the compensation and business support to be provided above, as long as you serve as Chairman of the Board, the Company will:

 

·                  Provide office space for your personal financial and administrative staff at the Company’s headquarters and provide reasonable supporting equipment, supplies, subscriptions and other services related to the office space occupied by you and such staff, in each case comparable to that currently provided.

·                  You will reimburse the Company for the full cost of such space and other items calculated on the same basis as you are currently charged; and

·                  All such staff will be compensated directly by you (any personnel currently being compensated by the Company and reimbursed by you to the Company are to be transitioned to your personal payroll no later than January 1, 2010).

·                  At no cost to you (other than personal income tax consequences), make available for your reasonable personal use:

·                  The Company’s car and driver; and

·                  Company aircraft, subject to availability of aircraft and flight personnel and the priority use of such aircraft and flight personnel for Company business purposes.

 

After termination of your services as Chairman of the Board, the Company will continue to provide the following for your personal use, on the terms set forth below:

 

·                  At no cost to you (other than personal income tax consequences):

·                  One administrative assistant comparable to that currently provided.

·                  Office space for you and such administrative assistant, whether such office space is provided at the Company’s headquarters or elsewhere as provided below comparable to that currently provided.

·                  Reasonable supporting equipment, supplies, subscriptions and other services related to the office space occupied by you and such administrative assistant comparable to that currently provided.

·                  Provided that you reimburse the Company for the full cost thereof calculated on the same basis as you are currently charged, the Company will provide:

·                  Office space for your personal financial and administrative staff, and

·                  Reasonable supporting equipment, supplies, subscriptions and other services related to the office space occupied by such staff.

·                  Provided that you reimburse the Company for the incremental cost thereof, the Company will continue to make available for your reasonable personal use:

·                  The Company’s car and driver; and

·                  Company aircraft, subject to availability of aircraft and flight personnel and the priority use of such aircraft and flight personnel for Company business purposes.

·                  All such office space to be provided after termination of your services as Chairman of the Board will be provided at the Company’s headquarters, except that if the Company’s headquarters are relocated or if the Company, in its good faith judgment, determines that any such office space in the Company’s headquarters is not available for your use (including office space for you and one personal administrative assistant position), the Company will assist you in the relocation of such office space elsewhere in the Detroit metropolitan area that is convenient to you.

 

2

 

·                  The Company’s obligation to provide each of the foregoing  benefits shall continue only so long as the Company is legally permitted to provide you with such benefit  and to accept  reimbursement (if the Company is not legally permitted to provide such benefit or accept reimbursement, the Company will have no further obligation to make such benefit available or to compensate you for your loss of the benefit).

 

You understand that future interpretations of Section 409A of the Internal Revenue Code may result in a delay of six months in your receipt of benefits under the preceding paragraph.  If that occurs, the Company will make you whole, to the extent legally permitted, for the temporary loss of such benefits.

 

If the understandings expressed above conform with your own understanding of the results of our discussions, please sign and return a copy of this letter to us, at which time it will become an agreement binding upon you and the Company and the Company’s successors and assigns.

 

Agreed:

 

 

	
/s/ RICHARD A. MANOOGIAN
    	
 
    	
MASCO CORPORATION
    
	
Richard A. Manoogian
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ MARY ANN VAN LOKEREN
    
	
 
    	
 
    	
Mary Ann Van Lokeren
    
	
 
    	
 
    	
Chair,
    
	
 
    	
 
    	
Organization and Compensation Committee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ VERNE G. ISTOCK
    
	
 
    	
 
    	
Verne G. Istock
    
	
 
    	
 
    	
Presiding Director,
    
	
 
    	
 
    	
Masco Corporation Board of Directors, and
    
	
 
    	
 
    	
Chair,
    
	
 
    	
 
    	
Corporate Governance and Nominating   Committee
    

 

3Exhibit 10.m

 

	

    	

    

 

October 23, 2014

 

RE: Revised Employment Offer

 

Christopher Kastner

[Home address removed]

 

Dear Chris:

 

I am pleased to confirm your acceptance of our offer of employment for the position of Vice President, Masco Operating System for Masco Corporation, reporting to Keith Allman.  This offer includes:

 

Cash Compensation

 

Your rate of pay is $13,461.54 bi-weekly.   Projected on an annualized basis, it amounts to $350,000 with your first salary review to be in April 2016.

 

You will also be eligible to participate in our discretionary annual bonus program.  Your target bonus opportunity is 50% of your annual base salary.  In a typical year, your bonus percent can range from 0% to 100% of your annual base salary depending on Company and individual performance.  Bonuses are determined after year-end and are normally paid out in February.  Contingent on your employment beginning by no later than December 1, 2014, your bonus for 2014 will be guaranteed at $137,000 to be paid in February of 2015.

 

Effective January 1, 2015, you will be eligible to participate in our discretionary long term cash incentive plan.  Your target award percent is 50% of your annual base salary.  In a typical year, your award can range from 0% to 100% of your annual base salary depending on Company and individual performance.  Awards are determined at the end of the three-year performance period.

 

Non-Cash Compensation

 

As part of your hiring package, we will recommend to the Organization and Compensation Committee of the Masco Board of Directors eligibility to participate in the Company’s discretionary annual incentive stock program.   Your target stock award opportunity is 50% of your annual base salary.  In a typical year, your stock award can range from 0% to100% of your annual base salary depending on Company and individual performance.  Stock awards are determined at year-end and are normally communicated in February.  All awards and aspects of Masco’s incentive stock program have a 20%, five-year vesting schedule.  Currently, all unvested shares also pay a dividend

 

 

if declared by the company. You will be eligible for a full year stock award for 2014 based upon Company performance.

 

An initial stock award will be recommended in the amount of 27,000 shares of Masco Corporation common stock.  Up to a four (4) month waiting period (from start of employment) may be required prior to submission to the Organization and Compensation Committee for approval.  All stock grants, including this initial award, are governed by plan documents that are provided at the time the grant is issued, and require your acceptance of the terms of these documents.  This initial award, and generally all awards under Masco’s incentive stock program, will have a 20%, five-year vesting schedule.  Currently, all unvested shares receive dividends if declared by the Company.

 

Masco considers the granting of stock options annually to motivate key executives to improve our share price and to align their long-term interests with those of shareholders.  You will be eligible for participation in this program.

 

An initial stock option grant will be recommended in the amount of 27,000 shares.  Up to a four (4) month waiting period (from start of employment) may be required prior to submission to the Organization and Compensation Committee for approval.  All stock option grants, including this initial award, are governed by plan documents that are provided at the time the grant is issued, and require your acceptance of the terms of these documents.  This initial award, and generally all awards under Masco’s incentive stock program, will have a 20%, five-year vesting schedule.

 

Benefits

 

You will also be eligible to participate in all of the health and welfare benefit programs of Masco Corporation as a full-time regular employee. Your health insurance begins on the first of the month following 30 days of employment.  You will also be eligible to participate in the 401(k) plan immediately.  The match formula is 100% of the first 4% of your compensation deferred to the plan, subject to IRS 401(k) plan contribution limits.  Company matching contributions are immediately 100% vested.

 

Assuming you begin your employment in calendar year 2014, you will also participate in the Masco Corporation discretionary profit sharing plan beginning January 1, 2015 with your eligibility for the initial contribution based on 2015 results.  After the end of each year, our Organization and Compensation Committee approves the Company contribution percentage based on the profitability of Masco Corporation for the preceding year.  For 2013, the profit sharing contribution was 8.5% of annual earnings (salary and cash bonus).  You will become 100% vested in this benefit after completing three years of service.

 

In addition to the qualified Profit Sharing and 401(k) Plans, Masco provides a Benefit Restoration Plan designed to restore profit sharing and 401(k) benefits that you would otherwise lose due to IRS compensation limits that apply to these qualified plans.  You will become 100% vested in this benefit after completing three years of service.

 

You will also be eligible for four weeks of Company paid time off each service year, in addition to the normal holiday schedule for Masco Corporate.  These benefits along with additional health, welfare, and other Company-sponsored benefits, will be explained in detail on your start date.

 

 

Relocation Assistance

 

Your continued employment is contingent upon relocating to the Detroit, Michigan area within the first twelve (12) months of your employment with Masco.  To assist you with your move, you will be eligible for the Relocation Assistance benefits described in the attached guidelines.  If you have relocation concerns that you believe are not addressed by the guidelines, please discuss them with me.  The relocation guidelines include a miscellaneous moving allowance equaling two bi-weekly pay periods to cover the cost of miscellaneous moving expenses not specifically listed as reimbursable in the guidelines. As an exception to the guidelines, this relocation assistance payment will be increased to $50,000.

 

If you have relocation concerns that you believe are not addressed by the guidelines, please discuss them with Paul Wagner (313.792.6418) or me.  In the event you should leave Masco Corporation within two years of your start date for reasons other than ours, you will reimburse Masco Corporation for the monies associated with your relocation benefits, including the relocation assistance payment noted above.

 

This letter is intended to answer many of the questions that you may have concerning your employment, but should not be construed as a contract of employment or a binding obligation without unrestricted right of the Company to modify or terminate the provisions provided herein.  In any case, at all times during your employment you will be an “at will” employee, which means that your employment may be terminated at any time with or without cause.  Upon your start date, you will be required to sign Confidentiality and Non-Compete Agreements, and Masco’s Legal and Ethical Standards Compliance Program.  Additionally, your employment is contingent on the successful completion of a pre-employment background investigation and drug screen.

 

If the terms of our offer meet with your approval, please sign the second copy of this letter and return to me via email at renee_straber@mascohq.com.

 

Chris, we believe we can offer you an exciting and challenging opportunity for your personal and professional growth and are convinced you can make a significant contribution in this leadership role for Masco!  If you have any questions, please call me at 313.792.6467.

 

	
Welcome   onboard!!
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Sincerely,
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   RENEE STRABER
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Renee   Straber
    
	
 
    	
 
    	
Chief   Human Resource Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Cc:   Keith   Allman
    	
 
    
	
 
    	
 
    
	
Offer Accepted:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/   CHRISTOPHER KASTNER
    	
 
    	
Date:
    	
10/23/14

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