Document:

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                                                                    EXHIBIT 10.c

                                 October 2, 2000

Dear     :

         Our company's Board of Directors has adopted a plan whereby
supplemental retirement and other benefits, in addition to those provided under
the Company's pension and other benefit plans, will be made available to those
Company and subsidiary executives as may be designated from time to time by the
company's Chief Executive Officer. The plan providing such benefits, as
originally made available to designated executives in 1987 and as subsequently
amended from time to time heretofore or in the future, is referred to in this
letter as the "Plan". You are currently a participant in the Plan upon the terms
of a letter agreement signed by you and dated , . This Agreement amends and
replaces in its entirety your previously signed letter agreement and describes
in full your benefits pursuant to the Plan and all of the Company's obligations
to you, and yours to the Company. These benefits as described below are
contractual obligations of the Company.

     For the purposes of this Agreement, words and terms are defined as follows:

                  a. "Average Compensation" shall mean the aggregate of your
         highest three years' total annual cash compensation paid to you by the
         Company, consisting of (i) base salaries and (ii) regular year-end cash
         bonuses paid with respect to the years in which such salaries are paid,
         divided by three, provided, however, (x) if you have on the date of
         determination less than three full years of employment the foregoing
         calculation shall be based on the average base salaries and regular
         year-end cash bonuses paid to you while so employed, and (y) if the
         determination of Average Compensation includes any year in which you
         volunteered to reduce your salary or, as part of a program generally
         applicable to participants in the Plan, you did not receive an increase
         in salary compared with the immediately preceding year, the Committee
         referred to in paragraph 11 shall make a

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                                     Page 2                     October 2, 2000

         good faith determination of what your Average Compensation would have
         been absent such salary reduction and absent such generally applicable
         program.

                  b. A "Change in Control" shall be deemed to have occurred 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) 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. Excluded
         Directors are directors whose election by the Board or approval by the
         Board for stockholder election occurred within one year after any
         "person" or "group of persons" as such terms are used in Sections 13(d)
         and 14(d) of the Securities Exchange Act of 1934 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.

                  c. "Code" means the Internal Revenue Code of 1986, as amended.

                  d. "Company" shall mean Masco Corporation or any corporation
         in which Masco Corporation owns directly or indirectly stock possessing
         in excess of 50% of the total combined voting power of all classes of
         stock.

                  e. The "Deferred Compensation Trust" shall mean any trust
         created by the Company to receive the deposit referred to in clause (2)
         of paragraph 10.

                  f. "Disability" and "Disabled" shall mean your being unable to
         perform your duties as a Company executive by reason

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          of your physical or mental condition, prior to your attaining age 65,
          provided that you have been employed by the Company for two
          consecutive Years or more at the time you first became Disabled.

                  g. The "Gross-Up Amount" (i) shall be determined if any
         payment or distribution by the Company to or for your benefit, whether
         paid, distributed, payable or distributed or distributable pursuant to
         the terms of this Agreement, any stock option or stock award plan,
         retirement plan or otherwise (such payment or distribution, other than
         an Excise Tax Adjustment Payment under clause (ii), is referred to
         herein as a "Payment"), would be subject to the excise tax imposed by
         Section 4999 of the Code (or any successor provision) or any interest
         or penalties with respect to such excise tax (such excise tax together
         with any such interest or penalties are referred to herein as the
         "Excise Tax"), and (ii) shall mean an additional payment (the "Excise
         Tax Adjustment Payment") in an amount such that after subtracting from
         the Excise Tax Adjustment Payment your payment 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, the balance will be equal to the Excise Tax imposed upon the
         Payments. All determinations required to be made with respect to the
         "Gross-Up Amount", 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 national accounting firm
         as the Company may designate prior to a Change in Control, which shall
         provide detailed supporting calculations to the Company and you. Except
         as provided in clause (iv) of paragraph 10, all such determinations
         shall be binding upon you and the Company.

                  h. "PBGC" shall mean the Pension Benefit Guaranty Corporation.

                  i. "Present Value" of future benefits means the discounted
         present value of those benefits (including therein the benefits, if
         any, your Surviving Spouse would be entitled to receive under this
         Agreement upon your death), using the

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          UP-1984 Mortality Table and discounted by the interest rate used, for
          purposes of determining the present value of a lump sum distribution
          on plan termination, by the PBGC on the first day of the month which
          is four months prior to the month in which a Change in Control occurs
          (or if the PBGC has ceased publishing such interest rate, such other
          interest rate as the Board of Directors deems is an appropriate
          substitute). The above PBGC interest rate is intended to be determined
          based on PBGC methodology and regulations in effect on September 1,
          1993 (as contained in 29 CFR Part 2619).

                  j. "Profit Sharing Conversion Factor" shall be a factor equal
         to the present value of a life annuity payable at the later of age 65
         or attained age based on the 1983 Group Annuity Mortality Table using a
         blend of 50% of the male mortality rates and 50% of the female
         mortality rates as set forth in Revenue Ruling 95-6 (or such other
         mortality table that the Internal Revenue Service may prescribe in the
         future) and an interest rate equal to the average yield for 30-year
         Treasury Constant Maturities, as reported in Federal Reserve
         Statistical Releases G.13 and H.15, four months prior to the month of
         the date of determination (or, if such interest rate ceases to be so
         reported, such other interest rate as the Board of Directors deems is
         an appropriate substitute).

                  k. "Retirement" shall mean your termination of employment with
         the Company, on or after you attain age 65. Your acting as a consultant
         shall not be considered employment.

                  l. "SERP Percentage" of your Average Compensation is 60%.

                  m. "Surviving Spouse" shall be the person to whom you shall be
         legally married (under the law of the jurisdiction of your permanent
         residence) at the date of (i) your Retirement or death after attaining
         age 65 (if death terminated employment with the Company) for the
         purposes of paragraphs 1, 2 and 3, (ii) your death for the purposes of
         paragraph 5 and, if paragraph 5 is applicable, for the purposes of
         paragraph 3,(iii) the commencement of your Disability for the purposes
         of paragraphs 6 and 7 and, as long as paragraphs 6 or 7 are
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          applicable, for the purposes of paragraph 3, (iv) your termination of
          employment for the purposes of paragraph 4 and, if paragraph 4 is
          applicable, for purposes of paragraph 3 and (v) a "Change in Control"
          for the purposes of paragraph 10 if none of clauses (i) through (iv)
          has become applicable prior to the Change in Control and, if this
          clause (v) is applicable, for purposes of paragraph 3. For the
          purposes of paragraphs 11a, 11e, 11f, 11g, 11h, 11i and 11j,
          "Surviving Spouse" shall be any spouse entitled to any benefits
          hereunder.

                  n. If you become Disabled, "Total Compensation" shall mean
         your annual base salary rate at the time of your Disability plus the
         regular year-end cash bonus paid to you for the year immediately prior
         thereto, provided, however, if the determination of Total Compensation
         is for a year in which you volunteered to reduce your salary or, as
         part of a program generally applicable to participants in the Plan, you
         did not receive an increase in salary compared with the immediately
         preceding year, the Committee referred to in paragraph 11 shall make a
         good faith determination of what your Total Compensation would have
         been absent such salary reduction and absent such generally applicable
         program.

                  o. "Vested Percentage" shall mean the sum of the following
         percentages: (i) 2% multiplied by your Years of Service, plus (ii) 8%
         multiplied by the number of Years you have been designated a
         participant in the Plan; provided, however, (w) prior to completing
         five Years of Service the Vested Percentage is 0,(x) on or prior to
         your fiftieth birthday your Vested Percentage may not exceed 50%, (y)
         on or prior to each of your birthdays following your fiftieth birthday
         your Vested Percentage may not exceed the sum of 50% plus the product
         obtained by multiplying 5% by the number of birthdays that have
         occurred following your fiftieth birthday, and (z) your Vested
         Percentage in no event may exceed 100%.

                  p. "Year" shall mean twelve full consecutive months, and
         "year" shall mean a calendar year.

                  q. "Years of Service" shall mean the number of Years during
         which you were employed by the Company (excluding,
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          however, Years of Service with a corporation prior to the time it
          became a subsidiary of or otherwise affiliated with Masco
          Corporation).

     1. In accordance with the Plan, upon your Retirement the Company will pay
you annually during your lifetime, subject to paragraph 8 below, the SERP
Percentage of your Average Compensation, less: (i) a sum equal to the annual
benefit which would be payable to you upon your Retirement if benefits payable
to you under the Company funded qualified pension plans and the defined benefit
(pension) plan provisions of the Company"s Retirement Benefits Restoration Plan
and any similar plan were converted to a life annuity, or if you are married
when you retire, to a 50% joint and spouse survivor life annuity, and (ii) a sum
equal to the annual benefit which would be payable to you upon Retirement if
your vested accounts in the Company's qualified defined contribution plans
(excluding your contributions and earnings thereon in the Company's 401(k)
Savings Plan) and the defined contribution (profit sharing) provisions of the
Company"s Retirement Benefits Restoration Plan and any similar plan were
converted to a life annuity in accordance with the Profit Sharing Conversion
Factor, provided, however, in all cases the amount offset pursuant to these
subsections (i) and (ii) shall be determined prior to the effect of any payments
from the plans and trusts referred to therein which are authorized pursuant to
any Qualified Domestic Relations Order under ERISA, or other comparable order
allocating marital or other rights under state law as applied to retirement
benefits from non-qualified plans.

     2. Upon your death after Retirement or while employed by the Company after
attaining age 65, your Surviving Spouse shall receive for life 75% of the annual
benefit pursuant to paragraph 1 of this Agreement which was payable to you prior
to your death (or, if death terminated employment after attaining age 65, which
would have been payable to you had your Retirement occurred immediately prior to
your death).

     3. The Company will provide, purchase or at its option provide
reimbursement for premiums paid for such supplemental medical insurance as the
Company in its sole discretion may deem advisable from time to time (i) for you
and your Surviving Spouse for the lifetime of each of you (A) following a
termination of your
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employment with the Company due to Retirement or Disability, and (B) following
any other termination of employment with the Company provided (x) you and your
Surviving Spouse are not covered by another medical insurance program
substantially all of the cost of which is paid by another employer, (y) on the
date of such termination your Vested Percentage is not less than 80% and (z) the
benefits under this paragraph 3 shall not commence until you have attained age
60 or your earlier death to the extent you die leaving a Surviving Spouse, and
(ii) for your Surviving Spouse for his or her lifetime upon a termination of
your employment with the Company due to your death.

         4. If your employment with the Company is for any reason terminated
prior to Retirement, other than as a result of circumstances described in
paragraphs 2, 5 or 6 of this Agreement or following a Change in Control, and if
prior to the date of termination you have completed 5 or more Years of Service,
upon your attaining age 65 the Company will pay to you annually during your
lifetime, subject to paragraph 8 below, the Vested Percentage of the result
obtained by (1) multiplying your SERP Percentage at the date your employment
terminated by your Average Compensation, less (2) the sum of the following: (i)
a sum equal to the annual benefit which would be payable to you upon your
attaining age 65 if benefits payable to you under the Company funded qualified
pension plans and the defined benefit (pension) plan provisions of the Company"s
Retirement Benefits Restoration Plan and any similar plan were converted to a
life annuity, or if you are married when you attain age 65, to a 50% joint and
spouse survivor life annuity, (ii) a sum equal to the annual benefit which would
be payable to you upon your attaining age 65 if an amount equal to your vested
accounts at the date of your termination of employment with the Company in the
Company"s qualified defined contribution plans (excluding your contributions and
earnings thereon in the Company's 401(k) Savings Plan) and the defined
contribution (profit sharing) provisions of the Company"s Retirement Benefits
Restoration Plan and any similar plan (in each case increased from the date of
termination to age 65 at the imputed rate of 4% per annum) were converted to a
life annuity in accordance with the Profit Sharing Conversion Factor, and (iii)
to the extent the annual payments described in this clause (iii) and the annual
payments you
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would otherwise be entitled to receive under this paragraph 4 would, in the
aggregate exceed (the "excess amount") the annual payments you would have
received under paragraph 1 had you remained employed by the Company until
Retirement (assuming for purposes of this clause no compensation increases), any
retirement benefits paid or payable to you by reason of employment by all other
previous or future employers, but only to the extent of such excess amount (the
amount of such deduction, in the case of benefits paid or payable other than on
an annual basis, to be determined on an annualized basis by the Committee
referred to in paragraph 11 and excluding from such deduction any portion
thereof, and earnings thereon, determined by such Committee to have been
contributed by you rather than your prior or future employers), provided,
however, in all cases the amount offset pursuant to these subsections (i) and
(ii) shall be determined prior to the effect of any payments from the plans and
trusts referred to therein which are authorized pursuant to any Qualified
Domestic Relations Order under ERISA, or other comparable order allocating
marital or other rights under state law as applied to retirement benefits from
non-qualified plans. Upon your death on or after age 65 should you be survived
by your Surviving Spouse, your Surviving Spouse shall receive for life,
commencing upon the date of your death, 75% of the annual benefit payable to you
under the preceding sentence following your attainment of age 65; provided,
further, if your death should occur prior to age 65, your Surviving Spouse shall
receive for life, commencing upon the date of your death, 75% of the annual
benefit which would have been payable to you under the preceding sentence
following your attainment of age 65, reduced by a factor of actuarial
equivalence as determined by the Committee, such that the Present Value of the
aggregate payments to be received by your Surviving Spouse based on his or her
life expectancy as of the date of your death is equal to the discounted Present
Value, determined at the date of your death, of the aggregate payments estimated
to be received by your Surviving Spouse based on his or her life expectancy at
an age, and as if your Surviving Spouse had begun receiving payments, when you
would have attained age 65.

     5. If while employed by the Company you die prior to your attaining age 65
leaving a Surviving Spouse, and provided you shall have been employed by the
Company for two consecutive Years or more, your Surviving Spouse shall receive
annually for life, subject to paragraph 8 below, 75% of the SERP Percentage of
your Average Compensation (assuming no compensation increases between the date
of your death and the date you would have attained age
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65), less: (i) a sum equal to the annual benefit which would be payable to your
Surviving Spouse under the Company funded qualified pension plans and the
defined benefit (pension) plan provisions of the Company's Retirement Benefits
Restoration Plan and any similar plan if such benefit were converted to a life
annuity (such deduction, however, only to commence on the date such benefit is
first payable), and (ii) a sum equal to the annual payments which would be
received by your Surviving Spouse as if your spouse were designated as the
beneficiary of your vested accounts in the Company's qualified defined benefit
contribution plans (excluding your contributions and earnings thereon in the
Company's 401(k) Savings Plan) and the defined contribution (profit sharing)
provisions of the Company"s Retirement Benefits Restoration Plan and any similar
plan and such accounts were converted to a life annuity at the time of your
death in accordance with the Profit Sharing Conversion Factor, provided,
however, in all cases the amount offset pursuant to these subsections (i) and
(ii) shall be determined prior to the effect of any payments from the plans and
trusts referred to therein which are authorized pursuant to any Qualified
Domestic Relations Order under ERISA, or other comparable order allocating
marital or other rights under state law as applied to retirement benefits from
non-qualified plans. No death benefits are payable except to your Surviving
Spouse.

     6. If you shall have been employed by the Company for two Years or more and
while employed by the Company you become Disabled prior to your attaining age
65, until the earlier of your death, termination of Disability or attaining age
65 the Company will pay you an annual benefit, subject to paragraph 8 below,
equal to 60% of your Total Compensation less any benefits payable to you
pursuant to long-term disability insurance under programs provided by the
Company. If your Disability continues until you attain age 65, you shall be
considered retired and you shall receive retirement benefits pursuant to
paragraph 1 above, based upon your Average Compensation as of the date it is
determined you became Disabled.

     7. If you die leaving a Surviving Spouse while receiving Disability
benefits pursuant to paragraph 6 of this Agreement, you will be deemed to have
retired on your death and your Surviving Spouse shall receive for life 75% of
the annual benefit which would have been payable to you if you had retired on
the date of your
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death and your benefit determined pursuant to paragraph 1, based upon your
Average Compensation as of the date you became Disabled.

     8. If the age of your Surviving Spouse is more than 20 years younger than
your age, then the annual benefit payable under paragraphs 1, 4, 5 and 6 of this
Agreement and the benefit payable as "the SERP Percentage of your Average
Compensation", as that phrase is used in paragraph 5 of this Agreement, shall be
reduced by the percentage obtained by multiplying 1.5% times the number of Years
or portion thereof by which your Surviving Spouse is more than 20 years younger
than you.

         9. If you or your Surviving Spouse is eligible to receive benefits
hereunder, unless otherwise specifically agreed by the Company in writing, you
and your Surviving Spouse will not be able to receive benefits under any other
Company sponsored non-qualified retirement plans other than the Company"s
Retirement Benefits Restoration Plan. For this purpose benefits received under
the Company's non-qualified stock option or stock award plans will not be
considered to have been received under a Company sponsored non-qualified
retirement plan even though such benefits are received after retirement. Except
as provided in the last sentence of paragraph 4 and in paragraph 10 of this
Agreement, no benefits will be paid to your Surviving Spouse pursuant to this
Agreement unless upon your death you were employed by the Company, Disabled or
had taken Retirement from the Company.

         10. Change in Control. (i) Immediately upon the occurrence of any
Change in Control:

                  (1) If you are then employed by the Company, your Vested
         Percentage, if not already 100%, shall be deemed for all purposes of
         this Agreement to be 100%.

                  (2) If the Deferred Compensation Trust has theretofore been
         established or is established within thirty days after the Change in
         Control, the Company shall forthwith deposit to an account in your name
         (or that of your Surviving Spouse if you are then deceased and your
         Surviving Spouse is entitled to benefits hereunder) in the Deferred
         Compensation Trust 110% of the sum of the Gross-Up Amount plus:
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                           (A) If you are then employed by the Company, an
                  amount equal to the discounted Present Value of the benefits
                  which would have been payable under paragraphs 1 and 2 of this
                  Agreement upon Retirement at age 65 or attained age if
                  greater, assuming for purposes of this clause, no compensation
                  increases and that if younger than age 65 you and your
                  Surviving Spouse had attained such age;

                           (B) If employment has previously been terminated but
                  you or your Surviving Spouse is then entitled in the future to
                  receive benefits under paragraph 4 of this Agreement, an
                  amount equal to the discounted Present Value of the benefits
                  which would have been payable under such paragraph;

                           (C) If you or your Surviving Spouse is then receiving
                  payments under paragraphs 1, 2, 4, 5 or 7 of this Agreement,
                  an amount equal to the Present Value of those benefits payable
                  in the future to you and your Surviving Spouse; and

                           (D) If you are then receiving payments under
                  paragraph 6 of this Agreement, an amount equal to the Present
                  Value of the benefits which would have been payable under
                  paragraphs 6 and 7 on the assumption you would have continued
                  to receive benefits under paragraph 6 until you had attained
                  age 65 and thereafter continued to receive benefits as though
                  you were deemed to have retired.

                  (3) The Company shall thereafter be obligated to provide such
          supplemental medical insurance as has theretofore in the discretion of
          the Company been generally provided to participants and their
          Surviving Spouses under the Plan (A) to you and your Surviving Spouse
          if you or your Surviving Spouse is then receiving benefits under
          paragraph 3, (B) to you and your Surviving Spouse if you become
          Disabled if you are employed by the Company at the time of the Change
          in Control, (C) to your Surviving Spouse upon your death if you are
          employed by the Company at the time of the Change in Control and (D)
          to you and your Surviving Spouse upon any
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         termination of employment following any Change in Control but only
         during the periods when you and your Surviving Spouse are not covered
         by another medical insurance program substantially all of the cost of
         which is paid by another employer. The obligations of the Company under
         this clause (i)(3) shall remain in effect for the lifetime of both you
         and your Surviving Spouse.

                  (4) If the Deferred Compensation Trust is not established
          prior to or within thirty days after the Change in Control, all
          payments which would have otherwise have been made to you or your
          Surviving Spouse from the Deferred Compensation Trust shall
          immediately after such thirty day period be made to you or your
          Surviving Spouse by the Company.

         (ii) Any deposit by the Company to an account in your name or that of
your Surviving Spouse in the Deferred Compensation Trust prior to the occurrence
of the Change in Control, together with all income then accrued thereon (but
only to the extent of the value of such deposited amount and the income accrued
thereon on the day of any deposit under clause (i)(2) of this paragraph 10),
shall reduce by an equal amount the obligations of the Company to make the
deposit required under clause (i)(2) of this paragraph 10.

         (iii) At or prior to making the deposit required by clause (i)(2) of
this paragraph 10, the Company shall deliver to the Trustee under the Deferred
Compensation Trust a certificate specifying that portion, if any, of the amount
in the trust account, after giving effect to the deposit, which is represented
by the Gross-Up Amount. Payment of 90.91% of the amount required by clause
(i)(2) of this paragraph 10 to be paid to the trust account, together with any
income accrued thereon from the date of the Change in Control, is to be made to
you or your Surviving Spouse, as applicable, under the terms of the Deferred
Compensation Trust, at the earlier of (1) immediately upon a Change in Control
if you then are deceased or have attained age 65 or are Disabled, (2) your death
subsequent to the Change in Control, or (3) the date which is one year after the
Change in Control; provided, however, that the Trustee under the Deferred
Compensation Trust is required promptly to pay to you or your Surviving Spouse,
as applicable, from the trust account from time to time amounts, not exceeding
in the
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aggregate the Gross-Up Amount, upon your or your Surviving Spouse's
certification to the Trustee that the amount to be paid has been or within 60
days will be paid by you or your Surviving Spouse to a Federal, state or local
taxing authority as a result of the Change in Control and the imposition of the
excise tax under Section 4999 of the Code (or any successor provision) on the
receipt of any portion of the Gross-Up Amount. All amounts in excess of the
amount required to be paid from the trust account by the preceding sentence,
after all expenses of the Deferred Compensation Trust have been paid, shall
revert to the Company provided that the Company has theretofore expressly
affirmed its continuing obligations under clause (i)(3) of this Paragraph 10.

         (iv) Subject to the next sentence of this clause (iv), the payment of
the Gross-Up Amount to you or your Surviving Spouse or the account in your or
your Surviving Spouse"s name in the Deferred Compensation Trust will thereby
discharge the Company from any obligations it may have under any present or
future stock option or stock award plan, retirement plan or otherwise, to make
any other payment as a result of your income becoming subject to the excise tax
imposed by Section 4999 of the Code (or any successor provision) or any interest
or penalties with respect to such excise tax. As a result of the uncertainty
which will be present in the application of Section 4999 of the Code (or any
successor provision) at the time of the determination of the Gross-Up Amount and
the possibility that between the date of determination of the Gross-Up Amount
and the dates payments are to be made to you or your Surviving Spouse under this
Agreement, changes in applicable tax laws will result in an incorrect
determination of the Gross-Up Amount having been made, it is possible that (1)
payment of a portion of the Gross-Up Amount will not have been made by the
Company which should have been made (an "Underpayment"), or (2) payment of a
portion of the Gross-Up Amount 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 your benefit. In the event that you or your
Surviving Spouse discover that an Overpayment shall have occurred, the amount
thereof shall be promptly repaid by you or your Surviving Spouse to the Company.
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                              Page 14                            October 2, 2000

         (v) Prior to the occurrence of a Change in Control, any deposits made
by the Company to an account in the Deferred Compensation Trust may be withdrawn
by the Company. Upon the occurrence of a Change in Control, all further
obligations of the Company under this Agreement (other than under this Paragraph
10 to the extent not theretofore performed) shall terminate in all respects.

     11.  We also agree upon the following:

                  a. Prior to the occurrence of a Change in Control, the
         Compensation Committee of the Company's Board of Directors, or any
         other committee however titled which shall be vested with authority
         with respect to the compensation of the Company's officers and
         executives (in either case, the "Committee"), shall have the exclusive
         authority to make all determinations which may be necessary in
         connection with this Agreement including the dates of and whether you
         are or continue to be Disabled, the amount of annual benefits payable
         hereunder by reason of offsets hereunder due to employment by other
         employers, the interpretation of this Agreement, and all other matters
         or disputes arising under this Agreement. The determinations and
         findings of the Committee shall be conclusive and binding, without
         appeal, upon both of us.

                  b. You will not during your employment or Disability, and
         after Retirement or the termination of your employment, for any reason
         disclose or make use of for your own or another person's benefit under
         any circumstances any of the Company's Proprietary Information.
         Proprietary Information shall include trade secrets, secret processes,
         information concerning products, developments, manufacturing
         techniques, new product or marketing plans, inventions, research and
         development information or results, sales, pricing and financial data,
         information relating to the management, operations or planning of the
         Company and any other information treated as confidential or
         proprietary.

                  c. You agree that you will not following your termination of
         employment for any reason (whether on Retirement, Disability or
         termination prior to attaining age 65) thereafter directly or
         indirectly engage in any business
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                              Page 15                            October 2, 2000

         activities, whether as a consultant, advisor or otherwise, in which the
         Company is engaged in any geographic area in which the products or
         services of the Company have been sold, distributed or provided during
         the five year period prior to the date of your termination of
         employment. In light of ongoing payments to be received by you and your
         Surviving Spouse for your respective lives, the restrictions contained
         in the preceding sentence shall be unlimited in duration provided no
         Change in Control has occurred and, in the event of a Change in
         Control, all such restrictions shall terminate one year thereafter.

                  In addition to the foregoing and provided no Change in Control
         has occurred, if while you or your Surviving Spouse is receiving
         retirement or other benefits pursuant to this Agreement, in the
         judgment of the Committee you or your Surviving Spouse directly or
         indirectly engage in activity or act in a manner which can be
         considered adverse to the interest of the Company or any of its direct
         or indirect subsidiaries or affiliated companies, the Committee may
         terminate rights to any further benefits hereunder.

                  d. Except as may be provided to the contrary in a duly
         authorized written agreement between you and the Company you
         acknowledge that the Company has made no commitments to you of any kind
         with respect to the continuation of your employment, which we expressly
         agree is an employment at will, and you or the Company shall have the
         unrestricted right to terminate your employment with or without cause,
         at any time in your or its discretion.

                  e. At the Company's request, expressed through a Company
         officer, you agree to provide such information with respect to matters
         which may arise in connection with this Agreement as may be deemed
         necessary by the Company or the Committee, including for example only
         and not in limitation, information concerning benefits payable to you
         from third parties, and you further agree to submit to such medical
         examinations by duly licensed physicians as may be requested by the
         Company from time to time. You also agree to direct third parties to
         provide such information, and your Surviving Spouse's cooperation in
         providing such information is a condition to the receipt of survivor's
         benefits under this Agreement.
<PAGE>   16
                              Page 16                            October 2, 2000

                  f. To the extent permitted by law, no interest in this
         Agreement or benefits payable to you or to your Surviving Spouse shall
         be subject to anticipation, or to pledge, assignment, sale or transfer
         in any manner nor shall you or your Surviving Spouse have the power in
         any manner to charge or encumber such interest or benefits, nor shall
         such interest or benefits be liable or subject in any manner for the
         liabilities of you or your Surviving Spouse's debts, contracts, torts
         or other engagements of any kind.

                  g. No person other than you and your Surviving Spouse shall
         have any rights or property interest of any kind whatsoever pursuant to
         this Agreement, and neither you nor your Surviving Spouse shall have
         any rights hereunder other than those expressly provided in this
         Agreement. Upon the death of you and your Surviving Spouse no further
         benefits of whatsoever kind or nature shall accrue or be payable
         pursuant to this Agreement.

                  h. All benefits payable pursuant to this Agreement, other than
         pursuant to paragraph 10, shall be paid in installments of one-twelfth
         of the annual benefit, or at such shorter intervals as may be deemed
         advisable by the Company in its discretion, upon receipt of your or
         your Surviving Spouse's written application, or by the applicant's
         personal representative in the event of any legal disability.

                  i. Except as provided in paragraph 10, all benefits under this
         Agreement shall be payable from the Company's general assets, which
         assets (including all funds in the Deferred Compensation Trust) are
         subject to the claims of the Company"s general creditors, and are not
         set aside for your or your Surviving Spouse's benefit.

                  j. You agree that, if the Company establishes the Deferred
         Compensation Trust, the Company is entitled at any time prior to a
         Change in Control to revoke such trust and withdraw all funds
         theretofore deposited in such trust. You acknowledge that although this
         Agreement refers from time to
<PAGE>   17
                              Page 17                            October 2, 2000

         time to your or your Surviving Spouse"s trust account, no separate
         trust will be created and all assets of any Deferred Compensation Trust
         will be commingled.

                  k. This Agreement shall be governed by the laws of the State
         of Michigan.

     12. We have agreed that the determinations of the Committee described in
paragraph 11a shall be conclusive as provided in such paragraph, but if for any
reason a claim is asserted which subverts the provisions of paragraph 11a, we
agree that, except for causes of action which may arise under paragraph 11b and
the first paragraph of paragraph 11c and provided no Change in Control has
occurred, arbitration shall be the sole and exclusive remedy to resolve all
disputes, claims or controversies which could be the subject of litigation
(hereafter referred to as "dispute") involving or arising out of this Agreement.
It is our mutual intention that the arbitration award will be final and binding
and that a judgment on the award may be entered in any court of competent
jurisdiction and enforcement may be had according to its terms.

     The arbitrator shall be chosen in accordance with the commercial
arbitration rules of the American Arbitration Association and the expenses of
the arbitration shall be borne equally by the parties to the dispute. The place
of the
<PAGE>   18
                              Page 18                            October 2, 2000

arbitration shall be the principal offices of the American Arbitration
Association in the metropolitan Detroit area.

     The arbitrator's sole authority shall be to apply the clauses of this
Agreement.

          We agree that the provisions of this paragraph 12, and the decision of
     the arbitrator with respect to any dispute, with only the exceptions
     provided in the first paragraph of this paragraph 12, shall be the sole and
     exclusive remedy for any alleged cause of action in any manner based upon
     or arising out of this Agreement. Subject to the foregoing exceptions, we
     acknowledge that since arbitration is the exclusive remedy, neither of us
     or any party claiming under this Agreement has the right to resort to any
     federal, state or local court or administrative agency concerning any
     matters dealt with by this Agreement and that the decision of the
     arbitrator shall be a complete defense to any action or proceeding
     instituted in any tribunal or agency with respect to any dispute. The
     arbitration provisions contained in this paragraph shall survive the
     termination or expiration of this Agreement, and shall be binding on our
     respective successors, personal representatives and any other party
     asserting a claim based upon this Agreement.

     We further agree that any demand for arbitration must be made within one
year of the time any claim accrues which you or any person claiming hereunder
may have against the Company; unless demand is made within such period, it is
forever barred.
<PAGE>   19
                              Page 19                            October 2, 2000

     We are pleased to be able to make this supplemental plan available to you.
Please examine the terms of this Agreement carefully and at your earliest
convenience indicate your assent to all of its terms and conditions by signing
and dating where provided below and returning a signed copy to me.

                                            Sincerely,

                                            MASCO CORPORATION

                                            By/s/Richard A. Manoogian
                                              -------------------------
                                               Richard A. Manoogian
                                               Chief Executive Officer

------------------------

DATE:
     ----------------------<PAGE>   1
                                                                 EXHIBIT 10.e

                                MASCO CORPORATION
                     1997 NON-EMPLOYEE DIRECTORS STOCK PLAN
                     (Amended and Restated December 6, 2000)

SECTION 1.  PURPOSE

         The purpose of this Plan is to ensure that the non-employee Directors
of Masco Corporation (the "Company") have an equity interest in the Company and
thereby have a direct and long term interest in the growth and prosperity of the
Company by payment of part of their compensation in the form of common stock of
the Company.

SECTION 2.  ADMINISTRATION OF THE PLAN

         This Plan will be administered by the Company's Board of Directors (the
"Board"). The Board shall be authorized to interpret the Plan, to establish,
amend, and rescind any rules and regulations relating to the Plan and to make
all other determinations necessary or advisable for the administration of the
Plan. The Board's interpretation of the terms and provisions of this Plan shall
be final and conclusive. The Secretary of the Company shall be authorized to
implement the Plan in accordance with its terms and to take such actions of a
ministerial nature as shall be necessary to effectuate the intent and purposes
thereof. 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.

SECTION 3.  ELIGIBILITY

         Participation will be limited to individuals who are Eligible
Directors, as hereinafter defined. Eligible Director shall mean any Director of
the Company who is not an employee of the Company and who receives a fee for
services as a Director.

SECTION 4.  SHARES SUBJECT TO THE PLAN

         (a) Subject to the adjustments set forth below, the aggregate number of
shares of Company Common Stock, par value $1.00 per share ("Shares"), which may
be the subject of awards issued under the Plan shall be 1,000,000.

         (b) Any Shares to be delivered under the Plan shall be made available
from newly issued Shares or from Shares reacquired by the Company, including
Shares purchased in the open market.

         (c) To the extent a Stock Option award, as hereinafter defined,
terminates without having been exercised, or an award of Restricted Stock, as
hereinafter defined, is forfeited, the Shares subject to such Stock Option or
Restricted Stock award shall again be available for distribution in connection
with future awards under the Plan. Shares equal in number to the Shares
surrendered to the Company in payment of the option price or withholding taxes
(if any) relating to or arising in connection with any Restricted Stock or Stock
Option hereunder shall be added to the number of Shares then available for
future awards under clause (a) above.

         (d) In the event of any merger, reorganization, consolidation,
recapitalization, stock split, stock dividend, or other change in corporate
structure affecting the Shares, the aggregate number of Shares which may be
issued under the Plan, the number of Shares subject to Stock Options to be
granted under Section 6(a) hereof and the number of Shares subject to any
outstanding award of Restricted Stock or unexercised Stock Option shall be
adjusted to avoid enhancement or diminution of the benefits intended to be made
available hereunder.

SECTION 5.  DIRECTOR STOCK COMPENSATION

         (a) The compensation of each Eligible Director for the five year period
beginning January 1, 1997 shall be payable in part with an award of Restricted
Stock determined as set forth below, and in part in cash. Compensation for this
purpose means annual retainer fees but does not include supplemental retainer
fees for committee positions or fees for attendance at meetings, which shall be
paid in cash. The portion of compensation payable in Restricted Stock during the
five year period shall be equal to one-half of the annual compensation paid to
Eligible Directors in the year immediately prior to the award multiplied by
five, and the balance of compensation, unless otherwise determined by the Board,
shall be payable in cash. Each award of Restricted Stock shall vest in twenty
percent annual installments (disregarding fractional shares) on January 1 of
each of the five consecutive years following the year in which the award is
made. Subject to the approval of this Plan by the Company's stockholders, each
Eligible

                                       1
<PAGE>   2
Director on February 18, 1997 is awarded as of that date 6,940 Shares of
Restricted Stock, based on the closing price of the Shares as reported on the
New York Stock Exchange Composite Tape (the "NYSE") on February 18, 1997. Cash
shall be paid to an Eligible Director in lieu of a fractional share.

         (b) Subject to the approval of this Plan by the Company's stockholders,
each Eligible Director who is first elected or appointed to the Board on or
after the date of the Company's 1997 annual meeting of stockholders shall
receive, as of the date of such election or appointment, an award of Restricted
Stock determined in accordance with Section 5(a) for the five year period
beginning on January 1 of the year in which such election or appointment
occurred; provided, however, that the price of the Shares used in determining
the number of Shares of Restricted Stock which shall be issued to such Eligible
Director shall be the closing price of the Shares as reported on the NYSE on the
date on which such Eligible Director is elected or appointed, and provided,
further, that the amount of Restricted Stock awarded to any Eligible Director
who begins serving as a Director other than at the beginning of a calendar year
shall be prorated to reflect the partial service of the initial year of the
Director's term, such proration to be effected in the initial vesting.

         (c) Upon the full vesting of any award of Restricted Stock awarded
pursuant to Section 5(a) or 5(b), each affected Eligible Director shall be
eligible to receive a new award of Restricted Stock, subject to Section 4. The
number of Shares subject to such award shall be determined generally in
accordance with the provisions of Section 5(b); provided, however, that the
Board shall have sole discretion to adjust the amount of compensation then to be
paid in the form of Shares and the terms of any such award of Shares. Except as
the Board may otherwise determine, any increase or decrease in an Eligible
Director's annual compensation during the period when such Director has an
outstanding award of Restricted Stock shall be implemented by increasing or
decreasing the cash portion of such Director's compensation.

         (d) Each Eligible Director shall be entitled to vote and receive
dividends on the unvested portion of his or her Restricted Stock, but will not
be able to obtain a stock certificate or sell, encumber or otherwise transfer
such Restricted Stock except in accordance with the terms of the Company's 1991
Long Term Stock Incentive Plan (the "Long Term Plan"). If an Eligible Director's
term is terminated by reason of death or permanent and total disability, the
restrictions on the Restricted Stock will lapse and such Eligible Director's
rights to the Shares will become vested on the date of such termination. If an
Eligible Director's term is terminated for any reason other than death or
permanent and total disability, the Restricted Stock that has not vested shall
be forfeited and transferred back to the Company; provided, however, that a pro
rata portion of the Restricted Stock which would have vested on January 1 of the
year following the year of the Eligible Director's termination shall vest on the
date of termination, based upon the portion of the year during which the
Eligible Director served as a Director of the Company.

SECTION 6.  STOCK OPTION GRANT

         (a) Subject to approval of this Plan by the Company's stockholders,
each Eligible Director on the date of such approval will be granted on such date
a stock option to purchase 8,000 Shares (the "Stock Option"). Thereafter, on the
date of each of the Company's subsequent annual stockholders meetings, each
person who is or becomes an Eligible Director on that date and whose service on
the Board will continue after such date shall be granted a Stock Option, subject
to Section 4, effective as of the date of such meeting.

         (b) Stock Options granted under this Section 6 shall be non-qualified
stock options and shall have the following terms and conditions.

         1. Option Price. The option price per Share shall be equal to the
closing price of the Shares as reflected on the NYSE on the date of grant (or if
there were no sales on such date, the most recent prior date on which there were
sales).

         2. Term of Option. The term of the Stock Option shall be ten years from
the date of grant, subject to earlier termination in the event of termination of
service as an Eligible Director. If an Eligible Director's term is terminated
for any reason other than death or permanent and total disability at a time when
such Director is entitled to exercise an outstanding Stock Option, then at any
time or times within three months after termination such Stock Option may be
exercised as to all or any of the Shares which the Eligible Director was
entitled to purchase at the date of termination. That portion of the Stock
Option not exercisable at the time of such termination shall be forfeited and
transferred back to the Company on the date of such termination. If an Eligible
Director's term is terminated by reason of permanent and total disability, such
Stock Option shall continue to become exercisable and shall remain exercisable
in accordance with its terms and the provisions of this Plan. If an Eligible
Director dies, all

                                       2
<PAGE>   3
unexercisable installments of the Stock Option shall thereupon become
exercisable and at any time or times within one year after death such Stock
Option may be exercised as to all or any unexercised portion of the Stock
Option. Except as so exercised, such Stock Option shall expire at the end of
such period. Except as provided above, a Stock Option may be exercised only if
and to the extent such Stock Option was exercisable at the date of termination
of service as an Eligible Director, and a Stock Option may not be exercised at a
time when the Stock Option would not have been exercisable had the service as an
Eligible Director continued.

         3. Exercisability. Subject to clause 2 above, each Stock Option shall
vest and become exercisable with respect to twenty percent of the underlying
Shares on each of the first five anniversaries of the date of grant, provided
that the optionee is an Eligible Director on such date.

         4. Method of Exercise. A Stock Option may be exercised in whole or in
part during the period in which such Stock Option is exercisable by giving
written notice of exercise to the Company specifying the number of shares to be
purchased, accompanied by payment of the purchase price. Payment of the purchase
price shall be made in cash, by delivery of Shares, or by any combination of the
foregoing.

         5. Forfeiture. If a Director's term is terminated for any reason other
than death, permanent and total disability or following a Change in Control, as
hereinafter defined, and if any installments of a Stock Option granted upon any
exercise of the Stock Option became exercisable within the two year period prior
to the date of such termination (such installments being referred to as the
"Subject Options"), by accepting the Stock Option each Director agrees that the
following provisions will apply:

         (1)      Upon the demand of the Company such individual will pay to the
                  Company in cash within 30 days after the date of such
                  termination the amount of income realized for income tax
                  purposes from the exercise of any Subject Options, net of all
                  federal, state and other taxes payable on the amount of such
                  income, plus all costs and expenses of the Company in any
                  effort to enforce its rights hereunder; and

         (2)      Any right such individual would otherwise have, pursuant to
                  the terms of the Plan and the applicable Award Agreement, to
                  exercise any Subject Options on or after the date of such
                  termination, shall be extinguished as of the date of such
                  termination.

The Company shall have the right to set off or withhold any amount owed to such
individual by the Company or any of its subsidiaries or affiliates for any
amount owed to the Company by such individual hereunder.

         6. Non-Transferability. Unless otherwise provided by the terms of the
Long Term Plan or the Board, (i) Stock Options shall not be transferable by the
optionee other than by will or by the laws of descent and distribution, and (ii)
during the optionee's lifetime, all Stock Options shall be exercisable only by
the optionee or by his or her guardian or legal representative.

         7. Stockholder Rights. The holder of a Stock Option shall, as such,
have none of the rights of a stockholder.

SECTION 7.  GENERAL

         (a) Plan Amendments. The Board may amend, suspend or discontinue the
Plan as it shall deem advisable or to conform to any change in any law or
regulation applicable thereto; provided, that the Board may not, without the
authorization and approval of the stockholders of the Company: (a) modify the
class of persons who constitute Eligible Directors as defined in the Plan; or
(b) increase the total number of Shares available under the Plan. In addition,
without the consent of affected participants, no amendment of the Plan or any
award under the Plan may impair the rights of participants under outstanding
awards.

         (b) Listing and Registration. If at any time the Board shall determine,
in its discretion, that the listing, registration or qualification of the Shares
under the Plan upon any securities exchange or under any state or Federal law,
or the consent or approval of any governmental regulatory body, is necessary or
desirable as a condition of, or in connection with, the granting of any award
hereunder, no Shares may be delivered or disposed of unless such listing,
registration, qualification, consent or approval shall have been effected or
obtained free of any condition not acceptable to the Board.

                                       3
<PAGE>   4
         (c) Award Agreements. Each award of Restricted Stock and Stock Option
granted hereunder shall be evidenced by the Eligible Director's written
agreement with the Company which shall contain such terms and conditions not
inconsistent with the provisions of the Plan as shall be determined by the Board
in its discretion.

         (d)   Change in Control.

         1.       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 Directors under outstanding awards of
                  Restricted Stock and Stock Options 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 Stock Options and the
                  termination of restrictions on Restricted Stock. Further, in
                  addition to the Board's authority set forth in Section 4(d),
                  the Board, 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 Board
                  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. A Change in Control
                  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 Securities
                  Exchange Act of 1934, 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.

         2.       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 2 (a "Payment"), would be subject to the excise
                  tax imposed by Section 4999 of the Internal Revenue Code of
                  1986, as amended from time to time (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 subparagraph 3 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.

              3.  All determinations required to be made under this Section
                  7(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

                                       4
<PAGE>   5
                  national accounting firm, shall be binding upon the 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.

         (e)      Non-compete. Each award of Restricted Stock and Stock Option
                  granted hereunder shall contain a provision whereby the award
                  holder shall agree, in consideration for the award and
                  regardless of whether restrictions on shares of Restricted
                  Stock have lapsed or whether the Stock Option becomes
                  exercisable or is exercised, as the case may be, as follows:

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

              (ii) Should the award holder either breach or challenge in
                   judicial or arbitration proceedings the validity of any of
                   the restrictions contained in the preceding paragraph, by
                   accepting an award each award holder shall agree, independent
                   of any equitable or legal remedies that the Company may have
                   and without limiting the Company's right to any other
                   equitable or legal remedies, to pay to the Company in cash
                   immediately upon the demand of the Company (1) the amount of
                   income realized for income tax purposes from an award of
                   Restricted Stock and/or the exercise of a Stock Option, net
                   of all federal, state and other taxes payable on the amount
                   of such income (and, in the case of a Stock Option, reduced
                   by any amount already paid to the Company under Section 5(e)
                   hereof), but only to the extent such income is realized from
                   restrictions lapsing on shares or exercises occurring, as the
                   case may be, on or after the termination of the award
                   holder's term as a Director of the Company or within the two
                   year period prior to the date of such termination, plus (2)
                   all costs and expenses of the Company in any effort to
                   enforce its rights under this or the preceding paragraph. The
                   Company shall have the right to set off or withhold any
                   amount owed to the award holder by the Company or any of its
                   subsidiaries or affiliates for any amount owed to the Company
                   by the award holder hereunder.

         (f) Applicability. The provisions of this Plan as amended and restated
December 6, 2000 shall apply to all outstanding Stock Options and awards of
Restricted Stock granted prior to December 6, 2000.

                                       5

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