Document:

exv10wc

 

Exhibit 10.c

     The forms of the Masco Corporation Supplemental Executive Retirement and Disability Plan for named
executive officers are filed herewith. The specific terms of individual arrangements for other
executive officers vary, but none are more favorable to an executive than those filed
herewith.

 

 

Form for: Richard A. Manoogian

John R. Leekley

David A. Doran

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 The plan providing such benefits, as originally made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 cashbonuses 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
good faith determination of what your Average Compensation

 

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     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 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,

 

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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 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

 

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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
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.

 

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     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, 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

 

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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 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)

 

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and the annual payments you 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 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

 

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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 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.

 

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     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:

     (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

 

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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 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

 

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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 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

 

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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.

     (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 activities, whether as a
consultant, advisor or otherwise, in which the Company is engaged in any geographic area in
which the products

 

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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.

     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

 

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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 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

 

Page 15

October 2, 2000

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 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 16

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  	 	 
	 	 	Richard A. Manoogian 	 
	 	 	Chief Executive Officer 	 
	 

________________________

DATE: __________________

 

Form of Amendment for: John R. Leekley

David A. Doran

December 5, 2003

[Participant’s Address]

[Dear Participant]

     Masco’s Organization and Compensation Committee over the past several years has approved a
number of major improvements to the benefits for our executives covered by Masco’s program for
supplemental retirement and other benefits (the “SERP Plan”). At its October meeting this
Committee authorized a significant additional enhancement under your agreement pursuant to the SERP
Plan (the “SERP Agreement”) by increasing the percentage of your bonus eligible for inclusion in
the SERP calculation from 50% to 60% of your base salary. (A corresponding change would be made in
the calculation of disability payments by changing the definition of “Total Compensation” to 160%
from 150% of your then current salary.) The provisions in your SERP Agreement, allowing certain
carry-forwards or carry-backs of bonus payments in excess of what was 50% and is now 60%, would be
retained.

     This enhancement was, in part, approved to partially offset the effect of the current freeze
on your salary. Accordingly, the existing provision in your SERP Agreement, which requires a
calculation of benefits on the assumption that all compensation freezes are disregarded, would be
eliminated.

     In order for these changes to be implemented in your SERP Agreement, the definitions of
“Average Compensation” and “Total Compensation” in your SERP Agreement would be amended to read as
follows:

Average Compensation

     “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 (the bonus with respect
to any such year, however, only to be included in an amount not in excess of 60% of the base salary
paid during such year), divided by three, provided, however,  (x) if any portion of a bonus
is excluded by the parenthetical contained in clause (ii) above, the total amount excluded will be
added to one or both of the other two years included in the calculation as long as the amount so
added does not result in a bonus with respect to any year exceeding 60% of the base salary paid
during that year, (y) if you have on the date of determination less than three full years of
employment, the foregoing calculation, including any adjustment required by clause (x) above, shall
be based on the average base salaries and regular year-end cash
bonuses paid to you while so employed.”

 

 

[Participant’s Name]

December 5, 2003

Page Two

Total Compensation

‘If you become Disabled, “Total Compensation” shall mean 160% of your annual base salary rate at
the time of your Disability.”

Should you have any questions regarding this proposed amendment, please feel free to discuss them
with Dan Foley, John Leekley or me. If not, I would appreciate your execution and return of a copy
of this letter to Gene Gargaro, at which time the above described amendment will become effective.

	 	 	 	 	 
	 	Sincerely yours, 
	 
	 	 	 
	 	
Richard A. Manoogian

Chairman

 	 
	 	 	 

I agree to the above amendment

of my SERP Agreement changing

definition of “Average Compensation”

and “Total Compensation” as set

forth above.

_____________________________

 

 

Form of Amendment for: Richard A. Manoogian

Alan Barry

March 31, 2004

[Participant]

Dear [Participant],

     Masco’s Organization and Compensation Committee over the past several years has approved a
number of major improvements to the benefits for our executives covered by Masco’s program for
supplemental retirement and other benefits (the “SERP Plan”). At its October meeting this
Committee authorized a significant additional enhancement under your agreement pursuant to the SERP
Plan (the “SERP Agreement”) by increasing the percentage of your bonus eligible for inclusion in
the SERP calculation from 50% of your base salary to 60% of your maximum bonus opportunity. An
additional change would be made in the calculation of disability payments by changing the
definition of “Total Compensation” from 150% of your then current salary to the sum of your then
current salary and 60% of your then current bonus opportunity.) The provisions in your SERP
Agreement, allowing certain carry-forwards or carry-backs of bonus payments in excess of what was
50% of your base salary would also be modified.

     This enhancement was, in part, approved to partially offset the effect of the current freeze
on your salary. Accordingly, the existing provision in your SERP Agreement, which requires a
calculation of benefits on the assumption that all compensation freezes are disregarded, would be
eliminated.

     In order for these changes to be implemented in your SERP Agreement, the definitions of
“Average Compensation” and “Total Compensation” in your SERP Agreement would be amended to read as
follows:

Average Compensation

     “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 (the bonus with respect
to any such year, however, only to be included in an amount not in excess of 60% of your maximum
bonus opportunity for such year), divided by three, provided, however,  (x) if any portion
of a bonus is excluded by the parenthetical contained in clause (ii) above, the total amount
excluded will be added to one or both of the other two years included in the calculation as long as
the amount so added does not result in a bonus with respect to any year exceeding 60% of your
maximum bonus opportunity for such year, (y) if you have on the date of determination less than
three full years of employment, the foregoing calculation, including any adjustment required by
clause (x) above, shall be based on the average base salaries and regular year-end cash bonuses
paid to you while so employed.”

 

 

[Participant]

March 31, 2004

Page Two

Total Compensation

     If you become Disabled, “Total Compensation” shall mean the sum of your annual base salary
rate and 60% of your then effective bonus opportunity at the time of your Disability.”

     Should you have any questions regarding this proposed amendment, please feel free to discuss
them with Dan Foley, John Leekley or me. If not, I would appreciate your execution and return of a
copy of this letter to Gene Gargaro, at which time the above described amendment will become
effective.

     This letter supersedes the letter agreement of December 5, 2003 between you and the Company.

	 	 	 	 	 
	 	Sincerely yours,

 	 
	 	 	 
	 	 	 
	 	 	 
	 

I agree to the above amendment

of my SERP Agreement changing

definition of “Average Compensation”

and “Total Compensation” as set

forth above.

_____________________________

 

 

Form for: Alan Barry 

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

 

Page 2

October 2, 2000

     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 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,

 

Page 3

October 2, 2000

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 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

 

Page 4

October 2, 2000

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% if at the date of
determination you have completed 15 or more Years of Service, and decreases by increments of
four percentage points for each Year or portion thereof less than 15 that you have
accumulated at the date of determination. The minimum SERP Percentage is 20% after five
Years of Service; prior to completing five Years of Service the SERP Percentage is 0.

     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
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.

 

Page 5

October 2, 2000

     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, 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, (ii) a sum equal to the annual benefit which would be payable to you upon
Retirement if your vested accounts in the Company’s

 

Page 6

October 2, 2000

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, and (iii) unless you have at least 25 Years of Service, any retirement benefits paid or
payable to you by reason of employment by all other employers (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 such other 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.

     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 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.

 

Page 7

October 2, 2000

     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 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 (with your SERP Percentage determined as though you were given credit for
additional Years of Service until age 65 but 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,

 

Page 8

October 2, 2000

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 discounted 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 (with your SERP Percentage determined as
though you were given credit for additional Years of Service but no compensation increases between
the date of your death and the date you would have attained age 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), (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, and (iii) unless you have at least 25 Years of Service, any retirement
benefits paid or payable to you or your Surviving Spouse by reason of your employment by all

 

Page 9

October 2, 2000

other
employers (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 such other 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. 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 and with your SERP Percentage given credit for Years of
Service while you were 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 death and your benefit determined pursuant to paragraph 1, based
upon your Average Compensation as of the date you became Disabled and with your SERP Percentage
given credit for Years of Service from the date you became Disabled to the date you would have
attained age 65.

     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.

 

Page 10

October 2, 2000

     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, (i) your SERP Percentage, if not already
60%, shall be deemed for all purposes of this Agreement to be the lesser of 60% or the
percentage resulting by adding to your SERP Percentage immediately prior thereto the product
obtained by multiplying 4% by the number of Years which would then have to elapse prior to
your attainment of age 65, and (ii) 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:

     (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;

 

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October 2, 2000

     (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 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.

 

Page 12

October 2, 2000

     (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 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

 

Page 13

October 2, 2000

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.

     (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.

 

Page 14

October 2, 2000

     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 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.

 

Page 15

October 2, 2000

     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.

     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.

 

Page 16

October 2, 2000

     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 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
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

 

Page 17

October 2, 2000

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.

     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  	 	 
	 	 	Richard A. Manoogian 	 
	 	 	Chief Executive Officer 	 
	 

________________________

DATE: __________________

 

Form for: Timothy Wadhams

[Date]

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
a similar plan maintained by Metaldyne Corporation (formerly known as MascoTech, Inc.)
(“Metaldyne”) upon the terms of a letter agreement signed by you and dated November 21, 2000 as
modified by paragraph 6 of an employment, release and consulting agreement (“the November 22
Agreement”) dated November 22, 2000 (such plan as so modified referred to herein as the “Existing
Agreement”). Concurrently with your execution of this Agreement you have waived and released
Metaldyne Corporation from all rights to which you were previously entitled under the Existing
Agreement. The agreements contained in this letter, once accepted by you, establish your
participation in the Plan as of the date hereof and describe in full your benefits pursuant to the
Plan and all of the Company’s obligations to you, and yours to the Company with respect to the
Plan. 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 year’s 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 (the bonus with respect to any such year, however, only to be included in an amount not
in excess of 60% of the base salary in effect at the end of such year), divided by three,
provided, however, (x) if any portion of a bonus is excluded by the

 

Page 2

parenthetical contained in clause (ii) above, the total amount excluded will be added
to one or both of the other two years included in the calculation as long as the amount so
added does not result in a bonus with respect to any year exceeding 60% of the base salary
in effect at the end of that year, and (y) if you have on the date of determination less
than three full years of employment the foregoing calculation, including any adjustment
required by clause (x) above, shall be based on the average base salaries and regular
year-end cash bonuses paid to you while so employed.

     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.

 

Page 3

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

 

Page 4

PBGC on the first day of the month which is (i) four months
prior to the month in which a Change in Control occurs or (ii) the month in which your death
occurs if the Present Value is being calculated under the proviso in the last sentence of
paragraph 4 (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
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)

 

Page 5

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 160% of your annual base
salary rate at the time of your Disability.

     o. “Vested Percentage” shall mean 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 (including Years of Service for the time you were employed by Metaldyne and its
predecessors but excluding Years of Service with any other 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, (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, and (iii) any retirement benefits paid or payable to you by
reason of employment by all other employers (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 such other
employers); provided, however, in all cases the amount offset

 

Page 6

pursuant to these
subsections (i), (ii) and (iii) 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 employment with the Company due to Retirement or Disability, and
(B) following any other termination of employment with the Company provided 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 and (ii) for your Surviving Spouse for his or her lifetime upon a
termination of your employment with the Company due to your death. In addition to the foregoing,
the Company guarantees the performance by Metaldyne of its obligations under clause (ii) of
paragraph 4(b) of the November 22 Agreement.

     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 and Metaldyne funded qualified
pension plans and the defined benefit (pension) plan provisions of the Company’s and Metaldyne’s
Retirement Benefits Restoration Plan and any similar plan were converted to a life annuity, or if
you are married when you

 

Page 7

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 and Metaldyne’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 and Metaldyne’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 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 (other than Metaldyne), 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), (ii) and (iii) 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 Present Value, determined at the date of your death, of the aggregate payments

 

Page 8

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, 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), (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
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, and (iii) any
retirement benefits paid or payable to you or your Surviving Spouse by reason of your employment by
all other employers (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 such other employers);
provided, however, in all cases the amount offset pursuant to these subsections
(i), (ii) and (iii) 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

 

Page 9

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 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 3, 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%.

 

Page 10

     (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:

     (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 (after giving effect to the last
sentence of paragraph 3 and the provisions of clause (ii) of paragraph 4(b) of the November
22 Agreement)(A) to you and your Surviving Spouse if you or your Surviving Spouse is then

 

Page 11

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 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

 

Page 12

Surviving Spouse, as applicable, from the trust account from time to time amounts,
not exceeding in the 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.

     (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

 

Page 13

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 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

 

Page 14

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.

     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

 

Page 15

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 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

 

Page 16

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 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 17

     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  	 	 
	 	 	Richard A. Manoogian 	 
	 	 	Chief Executive Officer 	 
	 

________________________

DATE: __________________

 

 

Form for: Daniel Foley

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

 

Page 2

October 2, 2000

     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 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,

 

Page 3

October 2, 2000

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 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

 

Page 4

October 2, 2000

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
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,

 

Page 5

October 2, 2000

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 or MascoTech, Inc. (excluding, 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

 

Page 6

October 2, 2000

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 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

 

Page 7

October 2, 2000

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 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

 

Page 8

October 2, 2000

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 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.

 

Page 9

October 2, 2000

     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 death and your benefit determined pursuant to paragraph 1, based
upon your Average Compensation as of the date you became Disabled and with credit for Years of
Service from 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

 

Page 10

October 2, 2000

entitled to benefits hereunder) in the Deferred
Compensation Trust 110% of the sum of the Gross-Up Amount plus:

     (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 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

 

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October 2, 2000

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 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

 

Page 12

October 2, 2000

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.

     (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

 

Page 13

October 2, 2000

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 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

 

Page 14

October 2, 2000

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.

     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

 

Page 15

October 2, 2000

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

 

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October 2, 2000

     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.

 

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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  	 	 
	 	 	Richard A. Manoogian 	 
	 	 	Chief Executive Officer 	 
	 

________________________

DATE: __________________exv10wi

 

Exhibit 10.i

 

AMENDED AND RESTATED

SHAREHOLDERS’ AGREEMENT

BETWEEN

RHJ
INTERNATIONAL SA

ASAHI TEC CORPORATION

and

The PRINCIPAL COMPANY SHAREHOLDERS Listed on Schedule I hereto

Dated as of November 21, 2006

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 	 	 	 	 	 	 
	1.

	 	Definitions
	 	 	3	 
	2.

	 	Board of Directors
	 	 	6	 
	3.

	 	Proxy
	 	 	8	 
	4.

	 	Transfers
	 	 	8	 
	5.

	 	Offering
	 	 	10	 
	6.

	 	Demand Offering
	 	 	16	 
	10.

	 	Informational Rights
	 	 	17	 
	11.

	 	Further Assurances
	 	 	18	 
	12.

	 	Amendments
	 	 	18	 
	13.

	 	Binding Agreement
	 	 	18	 
	14.

	 	Conflicts — Articles
	 	 	18	 
	15.

	 	Entire Agreement
	 	 	18	 
	16

	 	Severability
	 	 	19	 
	17.

	 	Benefits of Agreement: Third-Party Rights
	 	 	19	 
	18.

	 	Governing Law
	 	 	19	 
	19.

	 	No Waiver of Rights
	 	 	19	 
	20.

	 	Submission to Jurisdiction
	 	 	19	 
	21.

	 	Specific Performance
	 	 	20	 
	22.

	 	Costs
	 	 	20	 
	23.

	 	Notices
	 	 	20	 
	24.

	 	Confidentiality
	 	 	21	 
	25.

	 	Definitions Generally
	 	 	22	 
	26.

	 	English Version Authoritative
	 	 	22	 

 

 

 2

     AMENDED AND RESTATED SHAREHOLDERS’
AGREEMENT dated as of November 27, 2006, amoag the Persons listed on
Schedule I hereto, RHJ International SA, a societe anonyms organized under
the laws of Belgium, and Asahi Tec Corporation, a Japanese corporation
(“Argon’’ or the “Company”).

          WHEREAS, Argon, RHJI and the Principal Company Shareholders entered into a Shareholders’
Agreement dated as August 31, 2006 (the “Original Agreement”), and wish to amend and restate the
Original Agreement as set forth herein:

          WHEREAS, Argon, Argon Acquisition Corp., a Delaware corporation (“Acquisition Sub”) and a
wholly owned subsidiary of Argon, and Metaldyne Corporation, a Delaware corporation, have entered
into an amended and restated Agreement and Plan of Merger dated as of the date hereof (as such
agreement may be amended, supplemented or otherwise modified from time to time, the “Merger
Agreement”), whereby (i) Acquisition Sub will merge (the “Merger”) with and into Mercury, (ii)
Mercury will become a wholly owned subsidiary of Argon and (iii) each issued share of Mercury
common stock not owned by Argon, Acquisition Sub or Mercury shall be converted into the right to
receive the applicable Merger Consideration (as defined in the Merger Agreement) set forth in
Section 2.0 l(c) of the Merger Agreement;

          WHEREAS, Argon and the Principal Company Shareholders have entered into an amended and
restated stock purchase agreement (the “Parent Stock Purchase Agreement”) dated as of the
date hereof whereby the Principal Company Shareholders will acquire an aggregate of 36,017,697 newly issued Shares concurrently with the
consummation of the Merger;

          WHEREAS, the Company and HIP, as the holder of the Series B Mercury Preferred Stock (the
“Mercury Preferred Stock”), have entered into an amended and restated agreement (the
*’HIP_Stock Purchase Agreement” and, together with the Parent Stock Purchase Agreement, the
“Stock Purchase Agreements”) dated as of the date of this Agreement, whereby HIP shall
acquire for cash (1) 9,490,893 newly issued Shares in exchange for the Merger Consideration (as
defined in the Merger Agreement) received by HIP as consideration for such Mercury Preferred Stock
and (ii) 8,534,345 newly issued Shares in exchange for $15 million;

          WHEREAS, RHJI and the Principal Company Shareholders wish to agree upon certain matters with
respect to Argon.

 

3

          NOW, THEREFORE, in consideration of the agreements and obligations set forth herein and
intending to be legally bound hereby, RHJI and the Principal Company Shareholders hereby agree as
follows:

          1. Definitions When used herein, the following terms have the following
meanings:

          “Affiliate” means, with respect to any Person, any other Person that directly or indirectly,
through one or more intermediaries, controls, is controlled by, or is
under common control with, such Person, For purposes of this definition, “control” (including, with
correlative meanings, the terms “controlled by” and “under common control with”), as used with
respect to any Person, means the direct or indirect possession of the power to direct or cause the
direction of the management or policies of a Person, whether through the ownership of voting
securities, by contract or otherwise.

          “Agreement” means this Agreement, as amended or restated from time to time.

          “Argon” has the meaning set forth in the preamble to this Agreement.

          “Articles” means the articles of incorporation of Argon, as amended or restated from time
to time.

          “Board of Directors” has the meaning set forth in Section 2 of this
Agreement.

          “Business Day” means any day other than a Saturday or Sunday, on which banks located in
Tokyo or New York are not required or authorized by law to remain closed.

          “Closing Date” means the date of consummation of the transactions described in the
Stock Purchase Agreements.

          “Company” has the meaning set forth in the preamble to this Agreement.

          “CSFB” means Credit Suisse First Boston Equity Partners, L.P., Credit Suisse First Boston
Equity Partners (Bermuda), L.P., Credit Suisse First Boston U.S. Executive Advisors, L.P., EMA
Partners Fund 2000, L.P., EMA Private Equity Fund 2000, L.P., and its Permitted Transferees.

          “Deferral Period” has the meaning set forth in Section 6(e) of this
Agreement.

          “Demand Notice” has the meaning set forth in Section 6(a) of this Agreement.

          “Demand Offering” has the meaning set forth in Section 6(a) of this Agreement.

 

4

          “Demand Offering Expenses” means all expenses incident to the
Company’s performance of or compliance with Section 6, including all fees and expenses of
compliance by the Company with securities laws, printing expenses, messenger and delivery expenses,
fees and disbursements of counsel for Argon and of the independent certified public accountants of
Argon (including the expenses of any annual audit, special audit and “cold comfort” letters
required by or incident to such performance and compliance), the reasonable fees and expenses of
any special experts retained by Argon in connection with such registration, and fees and expenses
of other Persons retained by Argon (but not including any underwriting discounts or commissions or
transfer taxes, if any, attributable to the sale of Shares by holders of such Shares or any
expenses incurred by the Principal Company Shareholders).

          “Designator” has the meaning set forth in Section 2(a){i) of this Agreement.

          “Director” has the meaning set forth in Section 2 of this Agreement.

          “HIP” means HIP means Heartland Industrial Partners, L.P., HIP Side-By-Side Partners, L.P.,
Heartland Industrial Partners (FF), L.P., Heartland Industrial
Partners (C1), L.P, Metaldyne Investment Fund I, LLC and Metaldyne Investment Fund II, LLC and each of their
respective Permitted Transferees.

          “Inspector” has the meaning set forth in Section 6(c)(iii).

          “Institutional Offering” means one private placement by Argon to institutional
investors (with gross proceeds in an aggregate amount of at least $50,000,000) of capital shares of
Argon or any successor in interest of Argon after the Closing Date, other than the Offering.

          “Lead Principal Company Shareholder” means HIP until the date upon which HIP ceases to
own any Shares and thereafter, the Principal Company Shareholder that, together with its
Affiliates, owns in the aggregate the largest number of Shares.

          “Offering” means the first primary public offering by Argon (with gross proceeds in an
aggregate amount of at least $75,000,000) of capital shares of Argon or any successor in interest
of Argon after the Closing Date, other than tie Institutional Offering.

          “Permitted Transferee” means, (i) with respect to RHJI, any Affiliate of RHJI, (ii)
with respect to each Principal Company Shareholder, any Affiliate of such Principal Company
Shareholder and (iii) with respect to any Principal Company Shareholder that is a natural Person,
the estate or administrators of such Person to whom powers over such Person’s properties pass upon
death or incapacity, and the testamentary or intestate beneficiaries of such Person under
applicable estate laws.

          “Person” means any individual, corporation, partnership, trust, association, limited liability
company, limited company, joint venture, joint-stock company or any other entity or organization,
including a government or governmental agency.

 

5

          “Principal Company Shareholders” means the Persons listed on Schedule I hereto
and any of their Permitted Transferees to which a Principal Company Shareholder has Transferred
Shares in accordance with Section 4.

          “Receiving Party” has the meaning set forth in Section 24.

          “Records” has the meaning set forth in Section 6(c)(iii).

          “Restricted Period” has the meaning
set forth in Section 4(b).

          “RHJI” means RHJ International SA and its
Permitted Transferees.

          “SEL” means the Japanese Securities and Exchange Law (Law No. 25 of 1948, as amended)

          “Shareholder” means any of the Principal Company Shareholders or RHJ.

          “Shares”
means the common shares of Argon.

          “Specified Shares” means Shares acquired by a Principal Company Shareholder pursuanno a Stock
Purchase Agreement and any such Shares Transferred by a Principal Company Shareholder to a
Permitted Transferee so long as such Transfer complied with Section 4.

          “Subsidiary” means any Person (i) in which Argon, one or more
Subsidiaries of Argon and one or more Subsidiaries owns capitai stock representing 50% or more of
the capital stock of such Person or (ii) of which Argon or a Subsidiary of Argon is the general
partner, manager or managing member or holds a similar management position,

          “Transfer” means any direct or indirect transfer, sale, conveyance, assignment, gift, pledge
or other disposition of Shares, including any direct or indirect transfer, sale, conveyance,
assignment, gift, pledge or other disposition, whether voluntary or by operation of law (including
any disposition by means of a merger, consolidation or similar transaction), of the stock,
partnership interests, membership interests or any other ownership interests in Argon or any entity
that is a direct or indirect beneficial or record owner of any Shares, or any other transaction
that has the economic effect of Transferring Shares; provided that neither (i) the
Transfer of bona fide publicly traded shares of any holder of Shares (or of the ultimate parent
company of any holder of Shares) nor (ii) the bona fide Transfer by a limited partner of its
limited partnership interests in Heartland Industrial Partners, L.P., HIP Side-By-Side Partners,
L.P., Heartland Industrial Partners (FF), L.P., Heartland Industrial Partners (C l), L.P., Credit
Suisse First Boston Equity Partners, L.P., Credit Suisse First Boston Equity Partners (Bermuda),
L.P., Credit Suisse First Boston Fund Investments VI Holdings, LLC, Credit Suisse First Boston Fund
Investments VI-B (Bermuda), L.P., Credit Suisse First Boston U.S. Executive Advisors, L.P., Masco
Corporation, Richard and Jane Manoogian Foundation, First Union Capital Partners, LLC, BancBoston
Capital Inc., Metropolitan Life Insurance Company, Equity Asset Investment Trust, Annex Holdings I
LP Annex

 

6

Capital Farmers LLC, LongPoint Capita] Fund L.P., LongPoint Capital Partners LLC., EMA
Partners Fund 2000, L.P., EMA Private Equity Fund 2000, L.P., 75 Wall Street Associates LLC, Graham
Partners Investments, L.P., Graham Partners Investments (A), L.P., Graham Partners Investments (B),
L.P., Private Equity Portfolio Fund II, LLC, CRM 1999 Enterprise Fund, LLC and DairoterChryster AG
shall be a Transfer for the purposes of this Agreement,

          “Transferee” means the transferee in a Transfer.

          “Transferor” means the transferor in a Transfer.

          “TSE” means the Tokyo Stock Exchange.

          2. Board of Directors.

          The Shareholders have agreed to exercise their voting rights with respect to the board of
directors (the “Board of Directors” and each director thereof, a “Director”) in accordance with the
provisions of this Section 2, which they consider to be in the best interests of Argon.

                         (a) RHJI, HIP and CSFB (each a “Designator” for the
purposes of this Section 2), each shall be entitled la propose to nominate the following
number of Directors:

               (i) for so long as the Principal Company Shareholders
collectively own at least 10% or more of the outstanding number of Shares,
HIP and CSFB each shall have the right to nominate one (1)
Director;

               (ii) for so long as the Principal Company Shareholders
collectively own at least 5% but less than 10% of the outstanding number of
Shares, HIP shall have the right to nominate one (1) Director; and

               (iii) RHJI shall have the right to nominate all other Directors
nominated by the Shareholders;

which Directors in each case shall be proposed for appointment or removal, as applicable,
at an annual or special meeting of the shareholders of Argon (and its
nomination committee meeting to be held prior to such meeting of shareholders) promptly
following the proposal of the applicable Designator.

                         (b) If a Designator wishes to propose, in accordance with
its rights pursuant to Section 2(a) above, that any Person shall be appointed a
Director, it shall submit a letter to the other Shareholders setting out such
proposal. Each other Shareholders shall (A) cause any member of the
nomination committee of Argon who is a Director nominated by such
Shareholder to vote in favor of such nomination of the proposed Person as a
Director and (B)(x) if any annual or special meeting of the shareholders of

 

7

Argon is held, appear at such meeting or otherwise cause its Shares to be counted as present
thereat for purposes of establishing a quorum, and vote or (y) act by written consent with respect
to (or cause to be voted or acted upon by written consent) all its Shares in favor of such
appointment.

                         (c) If a Designator wishes to remove a Director appointed
following its proposal from the Board of Directors, it shall submit a letter to the
other Shareholders proposing that such Director shall be removed. Each other
Shareholders shall (A) cause any member of the nomination committee of Argon
who is a Director nominated by such Shareholder to vote in favor of such
removal and (B)(x) if any annual or special meeting of the shareholders of
Argon is held, appear at such meeting or otherwise cause its Shares to be
counted as present thereat for purposes of establishing a quorum, and vote or (y)
act by written consent with respect to (or cause to be voted or acted upon by
written consent) all its Shares in favor of such removal. Subject to Sections 2(d)
and 2(e) below, the Shareholders shall not vote in favor of the removal of a
Director, unless the Designator who proposed such Director votes in favor of the
removal.

                         (d) If a Director ceases to be a Director for whatever
cause (including resignation or removal), the Designator upon the proposal of which the relevant
Director had been appointed shall be entitled to propose the appointment of a new Director in accordance with, and subject to the provisions of, this Section
2, so long as such Designator continues to be entitled to propose the appointment of such
Director under Section 2(a),

                         (e) The Company has duly called, given notice of,
convened and held on November 16, 2006, a Company Stockholders Meeting (as defined in the Merger
Agreement) and has elected as directors to the Company Board the persons designated by HIP and
CSFB, each of which are effective only so long as the Closing occurs on or prior to January 16,
2007. Subject to the other provisions of this Section 2, in the event that the Closing Date does
not occur on or prior to January 16, 2007, each of the Shareholders undertakes to vote all shares
then held by it in favor of the appointment of the Person nominated by HIP and the Person nominated
by CSFB, in each case nominated promptly following January- 16, 2007, as Directors at a Company
Stockholders Meeting to be held as soon as practicable following such date; provided that
the appointment of such Persons shall not become effective until the consummation of the
transactions described in the Stock Purchase Agreement. The Shareholders undertake to use
commercially reasonable efforts to procure that, until replaced or removed in accordance with this
Section 2, such Persons shall be the Directors designated HIP and CSFB,

                         (f) For so long as either of HIP or CSFB has the right to
propose to nominate a Director pursuant to Section 2(a) above, and subject to applicable law
(including the rules and regulations of the TSE), it shall have the right to appoint one Director
to each committee of or under the Board of Directors, including the audit, nomination and
compensation committees thereof.

 

8

Any Director designated by either of HIP or CSFB shall be promptly reimbursed for
all costs and expenses, including travel and lodging expenses, incurred by such Director
for attending Board of Directors and committee meetings,

                         (g) A Designator may irrevocably waive at any time its rights under this
Section 2 by providing written notice of such waiver to the other Designators.

          3. Proxy. In order to secure RHJI’s rights to vole the Shares of the
Principal Company Shareholders, for so long as this Agreement shall remain in full force
and effect, each Principal Company Shareholder hereby appoints RHJI, as its true and
lawful proxy and attorney-in-fact, with full power of substitution, to vote all of the Shares
owned by such Principal Company Shareholder solely for the purpose of electing
Directors pursuant to the provisions of Section 2 of the Agreement, and in any event,
subject to, and consistent with, the provisions of Section 2 of the Agreement, it being
understood that such proxy extends only to the election of Directors pursuant to the
provisions of Section 2 of the Agreement and in no event shall such proxy extend to any
other matter that may be acted upon at any annual or special meeting of the shareholders
of Argon. RHJI may exercise the irrevocable proxy granted to it hereunder at any time
and from time to time. The proxies and powers granted by each Principal Company
Shareholder pursuant to this Section 3 are coupled with an interest and are given to
secure the performance of the obligations of the Principal Company Shareholders under
Section 2 of this Agreement. Such proxies and powers given by any Principal Company
Shareholder will be irrevocable until the earliest of (i) the termination of this Agreement
and (ii) the sale of the Shares by such Principal Company Shareholder in compliance with
this Agreement (other than to a Permitted Transferee).

          4. Transfers.

                         (a) Generally. A Principal Company Shareholder may
Transfer all or any portion of its Shares so long as (i) such Transfer is not restricted
by Section 4(b), (ii) if such Transfer is during a Restricted Period only, the Transferor
gives Argon and RHJI not less than ten (10) Business Days prior notice of such Transfer,
and if such Transfer is not during a Restricted Period, the Transferor gives Argon and
RHJI notice of such Transfer reasonably promptly after such Transfer, (iii) the
Transferee, if it is a Permitted Transferee of the Transferor, executes and delivers to
RHJI a counterpart of the signature page of this Agreement (or other appropriate
assumption agreement) and any other agreements, documents or instruments as RHJI may
reasonably require and (iv) the Transfer complies with applicable securities laws
(including rules of the stock exchange on which any shares of Argon are listed). Any
Transfer made in violation of this Section 4 shall be null and void.

                         (b) Transfer Restrictions, (i) During the period from the
Closing Date until the consummation of the Institutional Offering (the “Initial Restricted
Period”), a Principal Company Shareholder may not Transfer any Shares except with the
written consent of RHJI provided that the transfer restriction imposed by this Section
(4)(b)(i) shall expire if the Institutional

 

9

Offering has not been consummated within 90 days following the Closing Date. For the
avoidance of doubt, the Initial Restricted Period shall not extend beyond the 90th day
from the Closing Date.

               (ii) If required by the underwriters of the Institutional Offering
or the Offering, and for so long as the Principal Company Shareholders collectively own
at least 5% or more of the outstanding Shares (or 10% or more of the Shares if both HIP and
CSFB have irrevocably waived their right to nominate Directors pursuant to Section 2(g)), a
Principal Company Shareholder may not transfer any Shares for a period (an “Offering
Restricted Period” and, together with the Initial Restricted Period, each, a “Restricted
Period”) of 180 days after the closing of each of (a) the Institutional Offering and (b) the
Offering (or for such shorter lock-up period as the underwriters of the Institutional
Offering or the Offering, as applicable, require of RHJI or the Principal Company
Shareholders); provided that no Restricted Period shall extend beyond 24 months from the
Closing Date.

               (iii) Each Shareholder shall have the right to Transfer at any time, all or any
portion of its Shares to its Permitted Transferees without the prior consent of any other
Shareholder and without having such Transfer subject to Section 4(b){i) or 4(b)(ii);
provided such Transfers otherwise still shall be subject to Section 4(a).

                         (c) For the avoidance of doubt, nothing in this Agreement
shall restrict an Affiliate of a Principal Company Shareholder from making a
market in securities of Argon or from otherwise trading in securities of Argon;
provided that (i) such Affiliate is an entity that is itself not a Principal Company
Shareholder and (ii) such Principal Company Shareholder has in place “Chinese
wall” policies and procedures reasonably adequate to ensure that any such
market making or trading by any such Affiliate shall not be effected in
connection with or in coordination with a Principal Company Shareholder or the
trading of any Shares held by a Principal Company Shareholder.

                         (d) If a Transferor has Transferred all its Shares pursuant
to this Section 4, immediately following such Transfer, such Transferor shall
cease to be a party to this Agreement.

                         (e) RHJI and the Principal Company Shareholders each
shall notify Argon promptly of any acquisition or Transfer of Shares by it or any of its
Affiliates and Argon shall notify the other parties to this Agreement promptly of such acquisition
or Transfer, in each case with information with respect thereto sufficient to permit the parties to
this Agreement to determine the aggregate number of Shares held by each party hereto and its
respective Affiliates in order to comply with their respective reporting and filing requirements
regarding share ownership under Japanese law and the rules and regulations of the TSE,

 

10

          5. Offering.

          (a) The Board of Directors shall determine the timing, scope and other
terms and conditions of the Offering.

          (b) In connection with such Offering:

     (i) the Shareholders, if requested by the applicable underwriters,
will enter into a customary “lockup” agreement with the underwriters of the
Offering for such period as Argon and Argon’s underwriters may agree in connection
with such Offering, provided that such period shall not exceed the Offering
Restricted Period; and

     (ii) Argon and the Shareholders will covenant to reasonably cooperate
with each other in complying with all applicable public reporting requirements and all other applicable securities laws (including rules
of the stock exchange on which any shares of Argon arc listed); provided that the
Principal Company Shareholders shall in no event be liable for any action or
failure 10 act by the Company or any other Shareholder in performance of this
Section 5(b)(ii).

To the extent the underwriters of the Offering exercise an over-allotment option, if any, and all
or any portion of such over-allotment option is made available as a secondary offering of Shares,
the Principal Company Shareholders shall have the right to participate pro rata in such secondary
offering with the other shareholders of the Company participating in such secondary offering,

          (c) In the event that the Company is notified either orally or in writing
that the Tokyo Stock Exchange (the “TSE”) has commenced or intends to commence a
proceeding to delist the Shares from the TSE as a result of the Transactions (as defined in
the Merger Agreement), the Company shall use its reasonable best efforts to prevent the
delisting of the Shares by the TSE or, alternatively, to list the Shares on another stock
exchange or cause the Shares to be authorized for quotation on an automated quotation
system.

          6.
Demand Offering.

          (a) Demand Right.

     (i) Following the earlier of (x) the expiration of the Offering
Restricted Period following the Offering or (y) 24 months following the Closing
Date, upon the written request of the Lead Principal Company Shareholder (a
“Demand Not ice”) (a copy of which shall be provided by tie Lead Principal Company
Shareholder to each other Principal Company Shareholder), Argon shall cooperate to
effect one secondary offering of Specified Shares held by Principal Company
Shareholders (a “Demand Offering”) as to the number of Specified Shares specified
in such request. Such request for a Demand Offering shall specify the number of
Specified

 

11

Shares proposed to be offered for sale (the “Demand Offering Shares’’) and shall also specify
the intended method of distribution thereof. The Lead Principal Company Shareholder shall have the
right to designate any of the following international or Japanese banks as lead underwriters in
a Demand Offering: Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan,
Lazard, Lehman Brothers, Merrill Lynch, Mizuho, Morgan. Stanley, Nikko Citi and Nomura or their
successors.

     (ii) Argon shall use reasonable efforts to prepare and file offering materials, including
a statutory prospectus, for any Demand Offering as promptly as reasonably practicable following
delivery of the Demand Notice, and shall use reasonable efforts to make such offering materials
effective with the applicable regulatory authorities and under applicable law and shall make any
other filings required under applicable Jaws and regulations to be made by the Company in
connection with the Demand Offering, including the filing of securities notices, Argon shall
supplement or make amendments to such offering materials as may be necessary to correct any
material misstaternent or omission contained therein, until such time as the Demand Offering is
completed. Argon shall furnish to the Principal Company Shareholders copies of any such supplement
or amendment prior to its being used,

     (iii) Any Principal Company Shareholder that elects to
participate in a Demand Offering (including any Demand Offering exercised pursuant to Section
6(a)(v)) may withdraw its Shares from such Demand Offering at any time prior to the commencement of
the Demand Offering; provided, however, that such Demand Offering shall nonetheless count
as the Demand Offering for the purpose of this Section 6(a) unless the Lead Principal Company
Shareholder withdraws its Shares in such a manner prior to the commencement of the marketing for
such Demand Offering, in which case such Demand Offering shall be terminated and shall not count as
the Demand Offering for the purpose of this Section 6(a).

     (iv) Argon shall be required to effect only one Demand Offering pursuant to this Section
6(a) (including any Demand Offering exercised pursuant to Section 6(a)(v)), except that if the lead
underwriter participating in the Demand Offering shall cut back by more than 30% the number of
Demand Offering Shares to be offered in the Demand Offering as provided in Section 6{b) below, the
Lead Principal Company Shareholder shall have one additional right to make a Demand Offering as
provided in this Section 6(a); provided, however, that in no event shall Argon be required
to effect more than two Demand Offerings pursuant to this Section 6(a) (including any Demand
Offering exercised pursuant to Section 6(a)(v)).

     (v) In addition to the right of the Lead Principal Company Shareholder to effect
up to two Demand Offerings pursuant to this Section

 

12

6(a), each of Masco Corporation (“Masco”) and DaimJerChrysler Corporation
(“DCX”‘) has a similar right to effect up to two demand offerings of either Shares
or shares of Argon preferred stock pursuant to its respective Other Preferred Stock
Purchase Agreement (collectively, each an “Other Demand Right”). If (i) one of the
foregoing parties validly exercises an Other Demand Right in respect of Shares and
(ii) the Lead Principal Company Shareholder at such time continues to have the
right under this Section 6(a) to effect a Demand Offering, then Argon promptly
shall notify the Lead Principal Company Shareholder of the exercise of such Other
Demand Right and she Principal Company Shareholders shall have the right to
participate in the offering of Shares being effected thereby by the Lead Principal
Company Shareholder delivering written notice to Argon within ten business days of
receipt thereof of its election to so offer Shares; provided that any such
election, to so participate shall be deemed an exercise by the Lead Principal
Company Shareholder of its right under this Section 6 (a) to effect a Demand
Offering and otherwise shall be effected in accordance with this Section 6(a). The
holders of Other Demand Rights also shall have a similar right to participate in a
Demand Offering effected by the Principal Company Shareholders pursuant to this
Agreement. In no event shall Shares and shares of Argon preferred stock be offered
in the same Demand Offering except with the approval of Argon and the Lead
Principal Company Shareholder. ''Priority Shares” means fur purposes of this
Agreement, as applicable, any Shares offered by the Principal Company Shareholders.
Masco or DCX, in each case in an offering effected cither pursuant to this Section
6(a) or pursuant to the exercise of an Other Demand Right by Masco or DCX.

          (b) Reduction of Offering.  Notwithstanding anything contained herein, if the
lead underwriter of an underwritten offering described in Section 6(a) (including any offering
being effected in connection with the exercise of an Other Demand right as provided in Section
6(a)(v)) (collectively, a “Specified Offering”) delivers a written opinion to Argon that the number
of Shares that the holders of Shares intend to include in any Demand Offering is such that the
success of any such offering would be materially and adversely affected, including the price at
which the Shares can be sold, then the number of Shares to be included in the Demand Offering for
the account of the holders of Shares shall be reduced pro rata to the extent necessary to reduce
the total amount of Shares to be included in any such Demand Offering to the amount recommended by
such lead underwriter, provided, however, that priority shall be (i) first, the Priority
Shares requested to be included in the Demand Offering for the account of the holders of Priority
Shares, allocated pro rata among them in accordance with the number of Priority Shares held by each
of them until all of such Shares have been included, (ii) second, Shares proposed to be offered by
Argon for its own account until all of such Shares have been included and (iii) third, pro rata
among any other Shares of Argon requested to be included in the Demand Offering by the holders
thereof pursuant to a contractual right, so that the total number of Shares to be included in any
such

 

13

offering for the account of all such Persons will not exceed the number recommended by such lead
underwriter.

     (c) Demand
Offering Procedures. Subject to the provisions of Section 6(a),
in connection with the Demand Offering, Argon will as promptly as reasonably practicable:

     (i) Furnish to the Principal Company Shareholders, if requested, prior
to such offering, copies of such offering material for such Demand Offering, and
thereafter such number of copies of each amendment and supplement (hereto (in each
case including all exhibits thereto and documents incorporated by reference
therein), and such other documents in such quantities as the Principal Company
Shareholders may reasonably request from time to time in order to facilitate the
disposition of the Shares,

     (ii) Promptly notify the Principal Company Shareholders of the happening
of any event as a result of which the offering memorandum included in such offering
materials or amendment contains an untrue statement of a material fact or omits to
state any material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were made,
not misleading, and Argon will promptly prepare a supplement or amendment to such
offering materials so that such offering memorandum will not contain an untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading,

     (iii) Make available for inspection by the Principal Company Shareholders,
any underwriter participating in any disposition pursuant to such Demand Offering,
any attorney for the Principal Company Shareholders or the underwriter and any
accountant or other agent retained by the Principal Company Shareholders or any
such underwriter (collectively, the “Inspectors”), all financial and other records,
pertinent corporate documents and properties of Argon (collectively, the “Records”)
as shall be reasonably necessary to enable each of them to exercise its due
diligence responsibility, and cause the officers, directors and employees of Argon
and its Subsidiaries to supply all information reasonably requested by any such
Inspector in connection with such Demand Offering; provided, however, that
(i) Records and information obtained hereunder shall be used by such Inspector only
to exercise its due diligence responsibility, (ii) Records or information that
Argon determines, in good faith, to be confidential shall not be disclosed by the
Inspectors unless (x) the disclosure of such Records or information is necessary to
avoid or correct a material misstatement or omission in the offering materials for
such Demand Offering or (y) the release of such Records or information is ordered
pursuant to a subpoena or other order from a court or governmental authority of
competent jurisdiction and (iii) Argon may

 

14

require, as a condition to the provision to any Inspector of any Records,
that such Inspector execute and deliver to Argon a written agreement, in form
and substance reasonably satisfactory to Argon, pursuant to which such
Inspector agrees to the confidential treatment of such Records.

     (iv) Cause members of senior management of Argon to prepare materials for
and participate in a customary road show in connection with the Demand Offering.

          (d) Conditions to Demand Offerings. The obligations of Argon to take
the actions contemplated by Sections 6(a) and 6(c) with respect to a Demand Offering are
subject to the following conditions:

     (i) The Principal Company Shareholders shall conform to all applicable
requirements of the SEL and TSE with respect to the offering and sale of
securities.

     (ii) The Principal Company Shareholders shall advise each underwriter
through which any of the Shares are offered that the Shares are part of a
distribution that is subject to the offering materials delivery requirements of the
SEL and TSE.

     (iii) Argon may require the Principal Company Shareholders to furnish to
Argon such information regarding the Principal Company Shareholders or the
distribution of the Shares as Argon may from time to time reasonably request in
writing, in each case only as required by the SEL or TSE,

     (iv) Upon receipt of any notice from Argon of the happening of any event
of the kind described in Section 6(c)(ii) or a condition described in Section 6(e),
the Principal Company Shareholders will forthwith discontinue disposition of Shares
pursuant to the Demand Offering until the Principal Company Shareholders receives
copies of the supplemented or amended offering materials contemplated by Section
6(c)(ii) or notice from Argon of the termination of the Deferral Period (as defined
in Section 6(e)) and, if so directed by Argon, will promptly deliver to Argon all
copies (other than any permanent file copies then in the Principal Company
Shareholders’ possession) of the most recent offering materials covering such
Shares that were current at the time of receipt of such notice.

          (e) Black-out Period. Argon’s obligations pursuant to Sections 6 (a)
shall be suspended if compliance with such obligations would (a) in Argon’s good faith
determination based upon the advice of outside legal counsel, violate applicable law or
(b) require Argon to disclose a material financing, material acquisition or other material
corporate development, and the proper officers of Argon have determined, in the good
faith exercise of their reasonable business judgment, that such disclosure is not in the best
interests of Argon, provided, however, that any such suspension shall not exceed 90 days

 

15

with respect to any single event or series of related events and all such suspensions shall not
exceed 180 days in any twelve-month period (the “Deferral Period”). Argon shall promptly give the
Principal Company Shareholders written notice of any such suspension containing the approximate
length of the anticipated delay, and Argon shall notify the Principal Company Shareholders upon the
termination of the Deferral Period.

          (f) Demand Offering Expenses, Argon shall pay all of its Demand
Offering Expenses incident to its performance of, and compliance with, the Demand
Offering pursuant to Section 6- Each Person who included Shares in any Demand
Offering shall pay all discounts and commissions payable to underwriters, selling
brokers, managers or other similar Persons related to the sale or disposition of such
Person’s Shares pursuant to any Demand Offering in proportion to the amount of such
Person’s Shares included in such Demand Offering and all of its other expenses in
connection therewith.

          (g) Indemnification, (i)If required by the underwriters participating in
the Demand Offering, Argon will execute and deliver a customary indemnity agreement,
with respect to the information regarding the Company and its subsidiaries (but not the
Principal Company Shareholders) included in the offering materials prepared by Argon
and used for such Demand Offering, in favor of the underwriters participating in the
Demand Offering and their Affiliates.

     (ii) Argon will execute and deliver a customary indemnity agreement,
with respect to the information regarding the Company and its subsidiaries (but
not the Principal Company Shareholders) included in the offering materials
prepared by Argon and used for such Demand Offering, in favor of the Principal
Company Shareholders participating in the Demand Offering

          7. Termination; Effectiveness.

          (a) This Agreement shall terminate (i) with respect to any Shareholder
on the date that such Shareholder no longer holds any Shares or (ii) with respect to all
Shareholders on the date that the Principal Company Shareholders collectively own less
than 5% of the then outstanding Shares,

          (b) Termination or expiration of this Agreement shall not relieve the
parties of any obligation accruing prior to such termination or expiration and shall be
without prejudice to the rights and remedies of any party with respect to the antecedent
breach of any of the provisions of this Agreement. The provisions of Sections 18. 20 and 24 shall
survive any termination hereof.

          (c) Notwithstanding anything else to the contrary in this Agreement,
this Agreement shall not have any force or effect unless and until the Merger and the
other transactions described in the Merger Agreement and Parent Stock Purchase
Agreement are consummated.

 

16

          8. Representations and Warranties of Shareholders. Each
Shareholder, severally and not jointly, represents and warrants to each other Shareholder that:

          (a) the Shareholder has the power, authority and capacity to execute
and deliver this Agreement and all other documents and instruments executed or to be
executed pursuant to this Agreement. The execution and delivery of this Agreement and
all other documents and instruments executed or to be executed by the Shareholder
pursuant to this Agreement and the consummation of the transactions contemplated
hereby and thereby, have been (July authorized by all necessary action on the part of the
Shareholder. This Agreement and all other documents and instruments executed or to be
executed by the Shareholder pursuant to this Agreement have been, or will have been, at
the time of their respective execution and delivery, duly executed and delivered by a
Person duly authorized to execute and deliver this Agreement and such other documents
and instruments on behalf of the Shareholder;

          (b) this Agreement has been duly and validly executed and delivered
by such Shareholder and constitutes a valid and legally binding obligation of such
Shareholder, enforceable in accordance with its terms;

          (c) the execution and delivery of this Agreement and all other
documents and instruments executed or to be executed by the Shareholder pursuant to this
Agreement, and the consummation of the transactions contemplated hereby and thereby, will not
conflict with or result in any violation of or default under any provision of (i) the
organizational documents of the Shareholder or (ii) any mortgage, indenture, trust, lease,
partnership or other agreement or other instrument, permit, concession, grant, franchise, license,
judgment, order, decree, statute, law, ordinance, rule or regulation applicable to the Shareholder
or any of its properties or assets, the result of which would materially impair the Shareholder’s
ability to consummate the transactions contemplated hereby,

          (d) no consent, approval or authorization is required to be obtained or
made by the Shareholder in connection with its execution, delivery or performance of this Agreement
or the validity and enforceability of this Agreement, other than under circumstances where the
failure to obtain such consent, approval or authorization would not have a material adverse effect
on the validity or enforceability of this Agreement; and

          (b) as of the date of this Agreement, no action, suit, proceeding or governmental
investigation is pending against the Shareholder at law or in equity or before any
governmental authority that seeks to question, delay or prevent the consummation of the
transactions contemplated hereby.

          9. Representations and Warranties of Argon. Argon represents and warrants, to the
Shareholders that:

          (a) Argon has the power, authority and capacity to execute and deliver this Agreement
and all other documents and instruments executed or to be executed pursuant to this Agreement. The
execution and delivery of this Agreement and all other

 

17

documents and instruments executed or to be executed by Argon pursuant to this Agreement, and
the consummation of the transactions contemplated hereby and thereby, have been duly authorized by
all necessary action on the part of Argon. This Agreement and all other documents and instruments
executed or to be executed by Argon pursuant to this Agreement have been, or will have been, at the
time of their respective execution and delivery, duly executed and delivered by a Person duly
authorised to execute and deliver this Agreement and such other documents and instruments, on
behalf of Argon;

          (b) this Agreement has been duly and validly executed and delivered
by Argon and constitutes a valid and legally binding obligation of Argon, enforceable in accordance
with its terms;

          (c) the execution and delivery of this Agreement and all other
documents and instruments executed or to be executed by Argon pursuant to this
Agreement, and the consummation of the transactions contemplated hereby and thereby,
will not conflict with or result in any violation of or default under any provision of (i) the
organizational documents of Argon or (ii) any mortgage, indenture, trust, lease,
partnership or other agreement or other instrument, permit, concession, grant, franchise,
license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to
Argon or any of its properties or assets, the result of which would materially impair
Argon’s ability to consummate the transactions contemplated hereby;

          (d) no consent, approval or authorization is required to be
obtained or made by Argon in connection with its execution, delivery or performance of
this Agreement or the validity and enforceability of this Agreement, other than under
circumstances where the failure to obtain such consent, approval or authorization would
not have a material adverse effect on the validity or enforceability of this Agreement; and

          (e) as of the date of this Agreement, no action, suit, proceeding or
governmental investigation is pending against Argon at law or in equity or before any
governmental authority that seeks to question, delay or prevent the consummation of the
transactions contemplated hereby,

          10.
Informational Rights. (a) The Principal Company Shareholders shall be
entitled to receive, in an English language version, (if otherwise available), as promptly as
practicable after such information is available (i) quarterly consolidated unaudited financial
statements and reports of Argon, (ii) consolidated annual audited financial statements and reports
of Argon, and (iii) such other information relating to the business, affairs, (including any matter
customarily requiring the approval of the Board of Directors), prospects or condition (financial or
otherwise) of Argon as is available to Argon and that such Principal Company Shareholder may
reasonably request or that customarily is provided to RHJI; provided that any Principal Company
Shareholder may waive its rights under this Section 10 at any time in its sole discretion.

          (b) Argon recognizes that a Principal Company Shareholder may have one or more limited
partners that require certain information and consultation rights from Argon in order for such
limited partner to continue to qualify as a “venture capital operating company” (“VCOC”), as that
term is commonly referred to under ERISA (as

 

18

defined in the Parent Stock Purchase Agreement). Argon hereby agrees to provide
promptly any such requesting limited partner of a Principal Company Shareholder (which limited
partner can substantiate a legitimate requirement to Argon’s reasonable satisfaction) with a VCOC
letter substantially consistent with similar VCOC letters
previously issued by Argon to HIP and CSFB (but excluding any right to have observation
rights at the Board of Directors),

          11. Further Assurances. Each Shareholder shall endeavor to take or
cause to be taken all actions, and to do or cause to be done all other things, necessary,
proper or advisable in order to fulfill and perform its obligations in respect of this
Agreement. From time to time, each Shareholder shall, in cooperation with the other
parties hereto, as appropriate, execute and deliver, or cause to be executed and delivered,
such additional documents and instruments, and take such, other actions as may be
reasonably requested by the other party or parties to render effective or otherwise cany
out the intent and purposes of this Agreement.

          12. Amendments. This Agreement may be amended only by a written
instrument executed by RHJI and the Principal Company Shareholders holding a majority
of all the Shares then held by all Principal Company Shareholders; provided, however,
notwithstanding anything to the contrary in this Agreement, no amendment or change to (i) any
representation and warranty in this agreement that is adverse to the Principal Company Shareholders
may be made without the approval of each Principal Company Shareholder, (ii) the existing
liabilities or obligations of any Principal Company Shareholder under this Agreement that is
adverse to such Principal Company Shareholder may be made without the approval of such Principal
Company Shareholder or (iii) provide any additional benefit or right to HIP or RHJI under this
Agreement (other than as provided as of the date hereof) may be made without the approval of each
Principal Company Shareholder.

          13. Binding Agreement. This Agreement and the rights and duties of
(he parties hereto shall be binding upon and shall inure to the benefit of the parties hereto
and their respective executors, administrators, heirs, successors and permitted assigns;
provided that such rights and duties may not he assigned by any party hereto (and any such
assignment shall be void) except that any Permitted Transferee acquiring any Shares shall became a
“Shareholder” in accordance with Section 4(a).

          14. Conflicts — Articles. Each of the Shareholders shall take all action
necessary, including but not limited to the voting of their Shares, to ensure that the
Articles of Argon and the Articles and by-laws or other governing documents of Argon’s
Subsidiaries are consistent with, and do not conflict with, the terras of this Agreement
and undertake to amend the Articles to incorporate some or all of the provisions of this
Agreement, to the extent reasonably determined by RHJI. The Shareholders undertake to
sign any other document reasonably deemed necessary by Argon to give effect to this
Agreement. To the extent legally permissible, in the case of conflict between the
Shareholders, the provisions of this Agreement shall take precedence over the Articles.

          15. Entire Agreement This Agreement constitutes the entire
agreement and understanding among the parties hereto with respect to the matters

 

19

referred to herein (other than with respect to a certain agreement between HIP and CSFB
regarding the exercise of their rights as Principal Company Shareholders under this Agreement) and
supersedes all prior agreements and understandings (including the Original Agreement) among the
parties hereto with respect to the matters referred to herein.

          16. Severability. If any term, provision covenant or restriction of this
Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement
shall remain in full force and effect and shall in no way be affected, impaired or invalidated so
long as the economic or legal substance of the agreement contemplated hereby is not affected in any
manner materially adverse to any party. Upon such a determination, the parties shall negotiate in
good faith to modify this Agreement so as to effect the original intent of the parties as closely
as possible in an acceptable manner in order that the agreement contemplated hereby be governed as
originally contemplated to the fullest extent possible.

          17. Benefits of Agreement; Third-Party Rights. None of the
provisions of this Agreement shall be for the benefit of or enforceable by any creditor of any
party to this Agreement. Nothing in this Agreement shall be deemed to create any right in any
Person not a party hereto and no Person not a party hereto shall have any right to compel
performance by any parry hereto of its obligations hereunder.

          18. Governing Law. This Agreement and all actions contemplated
hereby shall be governed by and construed and enforced in accordance with the laws of
Japan.

          19. No Waiver of Rights. No failure or delay on the part of any party
in the exercise of any power or right hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of any such power or right preclude any other or further
exercise thereof or of any other right or power, The waiver by any party or parties hereto
of a breach of any provision of this Agreement shall not operate or be construed as a
waiver of any other or subsequent breach hereunder, All rights and remedies existing
under this Agreement are cumulative and are not exclusive of any rights or remedies
otherwise available.

          20. Submission to Jurisdiction. Any and all suits, legal actions or
proceedings arising out of this Agreement shall be brought either in the courts of Japan or
in U.S. Federal court located in the Southern District of New York, and each party hereto
hereby submits to and accepts the exclusive jurisdiction of such courts for the purpose of
such suits, legal actions or proceedings. To the fullest extent permitted by law, each
party hereto hereby irrevocably waives any objection which it may now or hereafter have
to the laying of venue of any such suit, legal action or proceeding in any such court and
hereby further waives any claim that any suit, legal action or proceeding brought in any
such court has been brought in an inconvenient forum.

 

20

          21. Specific Performance. The parties hereby declare that irreparable
damage would occur as a result of the failure of any party hereto to perform any of its
obligations under this Agreement in accordance with the specific terms hereof.
Therefore, all parties hereto shall have the right to specific performance of the obligations
of the other parlies under this Agreement, and if any party hereto shall institute any action
or proceeding to enforce the provisions hereof, any Person against whom such action or
proceeding is brought hereby waives the claim or defense therein that such party has or
have an adequate remedy by the payment of a financial compensation. The right to
specific performance should be in addition to any other remedy to which a party hereto
may be entitled.

          22. Costs. Save as otherwise provided in this Agreement or in the
Stock Purchase Agreement, the parties shall be responsible for and shall bear their own
costs (including those of their respective external advisors) in connection with this
Agreement and their participation in Argon.

          23. Notices. All notices and other communications required or
permitted by this Agreement shall be made in writing and any such notice or
communication shall be deemed delivered when delivered in person, transmitted by
telecopier, or one business day after it has been sent by a nationally recognized overnight
courier, at the following address or addresses, or at the address or addresses of the
recipient designated at the time it became a parry hereto:

if to RHJl:

RHJ International SA

Avenue Louise 326

1050 Brussels

Belgium

Attention: Robert E, Ewers, Jr., General Counsel

Facsimile No.: +32 (0)2 648 99 38

with a copy to:

Cravaih, Swaine & Moore LLP

Worldwide Plaza

825 Eighth Avenue

New York, NY 10019

United States of America

Attention: Thomas E. Dunn

Facsimile No.: +1 -212-474-3 700

if to the Principal Company Shareholders, to:

As set forth on Schedule II.

 

21

Communications by telecopier also shall be sent concurrently by an internationally recognized
overnight courier, but shall in any event be effective as stated above. Each party hereto may
from time to time change its address for notices under this Section 23 by giving at least five
Business Days’ notice of such changed address to the other parlies hereto.

          24. Confidentiality, Each party undertakes to take all necessary measures to
keep the contents of this Agreement strictly confidential and not to disclose it to third
parties, provided that each Shareholder shall be permitted to disclose (he contents of
this Agreement if required or advisable as a matter of applicable law (including rules of the
stock exchange on which any shares of Argon are listed) or to any entity which it believes in
good faith to be seriously considering a significant investment in or loan to Argon so long as
such entity has executed a confidentiality agreement and, with respect to any disclosure by a
Principal Company Shareholder or Transferee thereof, either (i) Argon reasonably determines that
such entity will be able to meet its obligations under such confidentiality agreement or (ii)
such Principal Company Shareholder agrees to be liable for the obligations of such entity under
such confidentiality agreement, Each Shareholder undertakes to take all necessary measures to
keep any confidential information of Argon and its Subsidiaries strictly confidential and not to
disclose it to third parties without the consent of Argon. The foregoing restrictions on
disclosure shall not apply to information that (a) can be demonstrated to have already been known
to (he receiving party (the ''Receiving Party”), without restriction as to confidentiality or
use, prior to disclosure of same by Argon; (b) is received from a third party without restriction
as to confidentiality or use, by a third party lawfully entitled to possession of such
information and who does not violate any contractual, legal or fiduciary obligation, direct or
indirect, to keep such information confidential; (c) was in or becomes part of the public domain
through no fault of the Receiving Party; (d) the Receiving Party is legally compelled to
disclose; (e) is disclosed as required to enforce this Agreement; or (f) is to be disclosed to
any prospective Transferee; provided that (i) the prospective Transfer must be permitted
under this Agreement, (ii) the prospective Transferee enters into a written confidentiality
agreement with Argon reasonably satisfactory to Argon and (iii) either (A) Argon approves the
prospective Transferee which enters into such confidentiality agreement, which approval shall not
be unreasonably withheld (the poor creditworthiness and/or negative business reputation of such
prospective Transferee being a reasonable basis for Argon to refuse its approval) or (B) the
Receiving Party agrees to be liable for such prospective Transferee’s obligations under such
confidentiality agreement, In the event that the Receiving Party becomes legally compelled (by
deposition, interrogatory, request for documents, subpoena, civil investigative demand or similar
process or otherwise) to disclose any of the information, the Receiving Party shall provide Argon
with prompt prior written notice of such disclosure requirement (which shall include a copy of
any applicable subpoena or order) so that Argon may seek a protective order or other appropriate
remedy and/or waive compliance with the terms of this Section 24. In the event that such
protective order or other remedy is not obtained, or that Argon waives compliance with the
provisions hereof, the Receiving Party agrees to furnish only that portion of the information
which the Receiving Party is advised by written opinion of counsel is legally required and to
exercise best efforts to obtain assurance that confidential treatment will be accorded such

 

22

informat ion. Each party further agrees not to make any public announcement or press
release relating to this Agreement without the prior written consent of the other parties
hereto and without an agreement on the content of such disclosure.

          25. Definitions Generally. Definitions in this Agreement apply
equally to both the singular and plural forms of the defined terms. The words
“include"51
and “including” shall be deemed to be followed by the phrase “without limitation” when
such phrase does not otherwise appear. The terms “herein”, “hereof and “hereunder”
and other words of similar import refer to this Agreement as a whole and not to any
particular section, paragraph or subdivision. The section titles appear as a matter of
convenience only and shall not affect the interpretation of this Agreement. All section,
paragraph or clause references not attributed to a particular document shall be references
to such parts of this Agreement.

          26. Eng1ish Version Authoritative. The Shareholders agree that any
dispute shall be resolved solely based on the English language version of the definitive
documentation.

[Signature page follows.]

 

 

          IN “WITNESS WHEREOF, five original copies of (he Agreement are signed and each of the
undersigned, intending to be legally bound hereby, has duly executed this Agreement as of the date
first above written and acknowledges the receipt of an original and signed copy of the Agreement

	 	 	 	 	 	 	 
	 	 	ASAHI TEC CORPORATION,
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Akira NaKamura
 

Name: Akira NaKamura
	 	 
	 

	 	 	 	Title: President	 	 

 

 

 

	 	 	 	 	 	 	 
	 	 	RHJ INTERNATIONAL S.A.,
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ [ILLEGIBLE]	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

Shareholders’ Agreement

 

 

	 	 	 	 	 	 	 
	 	 	HEARTLAND INDUSTRIAL PARTNERS, L.P,
	 
	 	 	 	 	 	 
	 

	 	By:
	 	HEARTLAND INDUSTRIAL	 	 
	 

	 	 	 	ASSOCIATES, L.L.C.	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ [ILLEGIBLE]
 

Name:
	 	 
	 

	 	 	 	Title:	 	 

Amended and Restated Shareholders’ Agreement

 

 

	 	 	 	 	 
	 	METALDYNE INVESTMENT FUND I, LLC

 	 
	 	By:  	/s/ [ILLEGIBLE]
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Amended and Restated Shareholders’ Agreement

 

 

	 	 	 	 	 
	 	METALDYNE INVESTMENT FUND II, LLC 

 	 
	 	By:  	/s/ [ILLEGIBLE]
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Amended and Restated Shareholders’ Agreement

 

 

	 	 	 	 	 	 	 
	 	 	HIP SIDE-BY-SIDE PARTNERS, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	HEARTLAND INDUSTRIAL
ASSOCIATES. LL.C.	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ [ILLEGIBLE]
 

	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

Amended and Restated Shareholders’ Agreement

 

 

	 	 	 	 	 	 	 
	 	 	CREDIT SUISSE FIRST BOSTON EQUITY
PARTNERS, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Hemisphere Private Equity Partners, Ltd.,	 	 
	 

	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kenneth Lohsen	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Kenneth Lohsen	 	 
	 

	 	 	 	Titie: Authorized Signatory	 	 

Amended and Restated Shareholders’ Agreement

 

 

	 	 	 	 	 	 	 
	 	 	CREDIT SUISSE FIRST BOSTON EQUITY
PARTNERS 

     (BERMUDA), L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Hemisphere Private Equity Partners, Ltd,

its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kenneth Lohsen
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Kenneth Lohsen	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 

Amended and Restated Shareholders’ Agreement

 

 

	 	 	 	 	 	 	 	 	 
	 	 	CREDIT SUISSE FIRST BOSTON FUND	 	 
	 	 	     INVESTMENTS
VI HOLDINGS, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By: 	 	Credit Suisse First Boston Fund Investments 
  

VI, L.P., Its Managing Member	 	 
	 

	 	 	 	     By: 
	 	Merchant Capital, Inc., Its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Credit Suisse First Boston Fund Investments 

Vl-Side Partnership, L.P., Its Managing Member	 	 
	 

	 	 	 	     By: 
	 	Merchant Capital, Inc., Its General
Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Credit Suisse First Boston Investment	 	 
	 	 	 	 	Partnership VI (Bermuda), L.P., Its Managing Member	 	 
	 

	 	 	 	     By: 
	 	Merchant Capital, Inc., Its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Kenneth Lohsen	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: Kenneth Lohsen	 	 
	 	 	 	 	Title: Vice President	 	 

Amended and Restated Shareholders’ Agreement

 

 

	 	 	 	 	 	 	 
	 	 	CREDIT SUISSE FIRST BOSTON FUND	 	 
	 	 	     INVESTMENTS VI-B (BERMUDA), L.P.,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Merchant Capital, Inc, Its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kernneth Lohsen
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Kernneth Lohsen	 	 
	 

	 	 	 	Title: Vice President	 	 

Amended and Restated Shareholders’ Agreement

 

 

	 	 	 	 	 	 	 
	 	 	CREDIT SUISSE FIRST BOSTON U.S.
EXECUTIVE 

ADVISORS, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Hemisphere Private Equity Partners, Ltd,

Its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kenneth Lohsen
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Kenneth Lohsen	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 

Amended and Restated Shareholders’ Agreement

 

 

	 	 	 	 	 	 	 
	 	 	EMA PARTNERS FUND 2000, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Credit Suisse (Bermuda) Limited, Its

General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kenneth Lohsen
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Kenneth Lohsen	 	 
	 

	 	 	 	Title: Vice President	 	 

Amended and Restated Shareholders’ Agreement

 

 

	 	 	 	 	 	 	 
	 	 	EMA PRIVATE EQUITY FUND 2000, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Credit Suisse (Bermuda) Limited, Its

Gentral Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kenneth Lohsen
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Kenneth Lohsen	 	 
	 

	 	 	 	Title: Vice President	 	 

Amended and Restated Shareholders’ Agreement

 

 

	 	 	 	 	 	 	 
	 	 	MASCO CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ [ILLEGIBLE]
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

Amended and Restated Shareholders’ Agreement

 

 

	 	 	 	 	 	 	 
	 	 	RICHARD AND JANE MANOOG1AN

       FOUNDATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Richard A. Manooglan
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Richard A. Manooglan	 	 
	 

	 	 	 	Title: President	 	 

Amended and Restated Shareholders’ Agreement

 

 

	 	 	 	 	 	 	 
	 	 	RICHARD MANOOG1AN	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Richard A. Manoog1an
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Richard A. Manoog1an	 	 
	 

	 	 	 	Title: Trustee, Richard A. Manoog1an	 	 
	 

	 	 	 	Trust Dated February 15, 2006	 	 
	 

	 	 	 	as Amended and Restated	 	 

Amended and Restate Shareholders’ Agreement

 

 

	 	 	 	 	 	 	 
	 	 	WACHOVIA CAPITAL PARTNERS 2000, LLC,	 	 
	 	 	(formerly First Union Capital Partners, LLC)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ [ILLEGIBLE]
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: [ILLEGIBLE]	 	 
	 

	 	 	 	Title: Vice President	 	 

Amended and Restate Shareholders’ Agreement

 

 

	 	 	 	 	 
	 	BANCBOSTON CAPITAL INC.

 	 
	 	By:  	/s/ [ILLEGIBLE]
 	 
	 	 	Name:  	[ILLEGIBLE] 	 
	 	 	Title:  	Vice President 	 
	 

Amended and Restate Shareholders’ Agreement

 

 

	 	 	 	 	 
	 	METROPOLITAN LIFE INSURANCE

COMPANY

 	 
	 	By:  	/s/
Christopher Farrington
 	 
	 	 	Name:  	Christopher Farrington	 
	 	 	Title:  	Director 	 
	 

Amended and Restate Shareholders’ Agreement

 

 

	 	 	 	 	 
	 	EQUITY ASSET INVESTMENT TRUST 

 	 
	 	By:  	/s/
Ron Herman
 	 
	 	 	Name:  	Ron Herman	 
	 	 	Title:  	Attorney in Fact 	 
	 

Amended and Restate Shareholders’ Agreement

 

 

	 	 	 	 	 	 	 
	 	 	ANNEX HOLDINGS ILP	 	 
	 
	 	 	 	 	 	 
	 	 	By: Annex Capital Partners, LLC, its	 	 
	 	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Alexander P. Coleman
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Alexander P. Coleman	 	 
	 

	 	 	 	Title: Managing Member	 	 

Amended and Restate Shareholders’ Agreement

 

 

	 	 	 	 	 	 	 
	 	 	LONG POINT CAPITAL FUND, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Long Point Capital Partners, LLC, its	 	 
	 	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Ira Starr
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Ira Starr	 	 
	 

	 	 	 	Managing Director	 	 

Amended and Restate Shareholders’ Agreement

 

 

	 	 	 	 	 
	 	LONG POINT CAPITAL PARTNERS, L.L.C. 

 	 
	 	By:  	/s/   Ira Starr
 	 
	 	 	Ira Starr  	 
	 	 	Managing Director 	 
	 

Amended and Restate Shareholders’ Agreement

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	75 WALL STREET ASSOCI ATES LLC	 	 	 	 
	 	 	By:	 	ALLIANZ LEBEN PRIVATE EQUITY FUNDS PLUS GmbH	 	 	 	 
	 	 	Its:	 	Member	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Wanching Ang
	 	/s/ Claus Zeliner
	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name: Wanching Ang
	 	Claus Zeliner	 	 	 	 
	 

	 	 	 	Title: Managing Director
	 	Director	 	 	 	 

Amended and Restate Shareholders’ Agreement

 

 

	 	 	 	 	 	 	 
	 	 	GRAHAM PARTNERS INVESTMENTS, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	GRAHAM PARTNERS GENERAL	 	 
	 

	 	 	 	PARTNER, L.P.	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	GRAHAM PARTNERS INVESTMENTS	 	 
	 

	 	 	 	(GP2), L.P.	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	GRAHAM PARTNERS INVESTMENTS	 	 
	 

	 	 	 	(GP), LLC	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Steven C. Graham
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Steven C. Graham	 	 
	 

	 	 	 	Title: Managing Member	 	 

Amended and Restate Shareholders’ Agreement

 

 

	 	 	 	 	 	 	 
	 	 	GRAHAM PARTNERS INVESTMENTS (A), L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	GRAHAM PARTNERS GENERAL	 	 
	 

	 	 	 	PARTNER, L.P.,	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	GRAHAM PARTNERS INVESTMENTS	 	 
	 

	 	 	 	(GP2), L.P.	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	GRAHAM PARTNERS INVESTMENTS (GP), LLC	 	 
	 

	 	Its:
	 	General partner 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Steven C. Graham
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Steven C. Graham	 	 
	 

	 	 	 	Title: Managing Member	 	 

Amended and Restate Shareholders’ Agreement

 

 

	 	 	 	 	 	 	 
	 	 	GRAHAM PARTNERS
INVESTMENTS (B), L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	GRAHAM PARTNERS GENERAL PARTNER, L.P.	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	GRAHAM PARTNERS INVESTMENTS (GP2), L.P.	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	GRAHAM PARTNERS INVESTMENTS (GP), LLC	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Steven C. Graham
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Steven C. Graham	 	 
	 

	 	 	 	Title: Managing Member	 	 

Amended and Restate Shareholders’ Agreement

 

 

	 	 	 	 	 
	 	PRIVATE EQUITY PORTFOLIO FUND II, LLC 

 	 
	 	By:  	/s/ Matthew J. Ahern
 	 
	 	 	Name:  	Matthew J. Ahern  	 
	 	 	Title:  	VlCE PRESIDENT 	 
	 

Amended and Restate Shareholders’ Agreement

 

 

	 	 	 	 	 
	 	CRM 1999 ENTERPRISE FUND, LLC 

 	 
	 	By:  	/s/ Carlos Leal
 	 
	 	 	Name:  	Carlos Leal 	 
	 	 	Title:  	CFO 	 
	 

Amended and Restate Shareholders’ Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]