Document:

EX-10.B.IV.II

 Exhibit 10.b.iv(ii) 

[Form for Non-Employee Directors] 
 Stock Option Grant Agreement 
 [Date] 

<Name> 
 <Address1> 

<Address2> 
 <Address3> 

<Address4> 
 Dear <Salutation>:

 On behalf of the Company, I am pleased to inform you that on [date], the Board of Directors granted you a non-qualified stock
option pursuant to the Non-Employee Directors Equity Program (the “Program”) under the Company’s 2005 Long Term Stock Incentive Plan (the “Plan”), subject to the conditions set forth below and in the Appendix attached
hereto. This letter and the attached Appendix (the “Agreement”) state the terms of the option and contain other provisions which on your acceptance commit the Company and you, so I urge you to read them carefully. You should also read the
Program, the Plan and Prospectus dated [date] covering the shares which are the subject of this option. Enclosed are copies of these documents as well as our latest annual report to stockholders and proxy statement to the extent our records indicate
you may not have previously received them. Copies are also available upon request to the Company. We suggest that you review each of these documents. The federal income tax attributes of non-qualified stock options are discussed in the Prospectus.
This option does not qualify for the federal tax benefits of an “incentive stock option” under the Internal Revenue Code. 
 This option, if accepted by you, grants you the right to purchase [no. of shares] shares of Company Common Stock, $1.00 par value, at a price of
[$            ] per share, which the Board has determined is the fair market value of a share of the Company Common Stock on the date of grant. 

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

 Notwithstanding the foregoing or anything in the Plan: 

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

(ii) If you retire on or after normal retirement age as specified in the Company’s Corporate Governance Guidelines, the option shall
continue to become exercisable and shall remain exercisable in accordance with its terms and the provisions of the Program and Plan. 
 (iii) If your service as a Director terminates for any reason other than as a result of death, permanent and total disability or retirement due to age, any portion of the option that is then exercisable
will remain exercisable until the earlier of the expiration of the original option term or one year after death. 
 (iv) If your
service as a Director terminates as a result of death, all unexercisable installments of the option shall thereupon become exercisable and at any time or times within one year after death such options may be exercised as to all or any unexercised
portion of the option. 
 As provided in the Plan, if at any time you engage in an activity following your termination of
service which in the sole judgment of the Board of Directors is detrimental to the interests of the Company, a subsidiary or an affiliated company, all unexercised installments or portions of the option will be forfeited to the Company. You
acknowledge that such activity includes, but is not limited to, “Business Activities” (as defined in the Appendix) for purposes of this option and for purposes of all other outstanding awards of restricted stock and options that are
subject to comparable forfeiture provisions. 
 Acceptance 
 We agree that all of the terms and conditions of this option are reflected in this Agreement and the Program and Plan, and that there are no other commitments or understandings currently outstanding with
respect to any other awards of stock options or restricted stock except as may be evidenced by agreements duly executed by you and the Company. 
 By accepting this option you: (a) represent that you are familiar with the provisions of the Program and Plan and agree to their incorporation in this Agreement; (b) agree to provide promptly
such information with respect to shares acquired pursuant to this option as may be requested by the Company and to comply with any requirements of applicable federal and other laws with respect to withholding or providing for the payment of required
taxes; and (c) acknowledge that all of your rights to this option are embodied herein and in the Program and Plan. 

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

  
 2 

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

 

	
	Very truly yours,
	
	MASCO CORPORATION
	
	[Name]
	[Title]

 I accept and agree to all the foregoing terms and conditions. 

 

	
	  
	(Signature of Recipient)
	
	 
	
	 
	(Mailing Address)
	
	 
	(Social Security Number)
	
	Dated:
                                         
                               

  
 3 

 Appendix to Option Agreement 

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

By signing the Agreement you acknowledge acceptance of the Option and receipt of the documents referred to in the Agreement and represent
that you have read the Plan, are familiar with its provisions, and agree to its incorporation in the Agreement and all of the other terms and conditions of the Agreement. Such acceptance, moreover, evidences your agreement promptly to provide such
information with respect to shares acquired pursuant to the Option, as may be requested by the Company. 
 In addition you
agree, in consideration for the grant of the Option and regardless of whether the Option becomes exercisable or is exercised, while you are a Director of the Company and for a period of one year following the termination of your term as a Director
of the Company, other than a termination following a Change in Control, not to engage in, and not to become associated in a “Prohibited Capacity” (as hereinafter defined) with any other entity engaged in, any “Business
Activities” (as hereinafter defined) and not to encourage or assist others in encouraging any employee of the Company or any of its subsidiaries to terminate employment or to become engaged in any such Prohibited Capacity with an entity engaged
in any Business Activities. “Business Activities” shall mean the design, development, manufacture, sale, marketing or servicing of any product or providing of services competitive with the products or services of the Company or any
subsidiary at any time the Option is outstanding, to the extent such competitive products or services are distributed or provided either (1) in the same geographic area as are such products or services of the Company or any of its subsidiaries,
or (2) to any of the same customers as such products or services of the Company or any of its subsidiaries are distributed or provided. “Prohibited Capacity” shall mean being associated with an entity as a director, employee,
consultant, investor or another capacity where (1) confidential business information of the Company or any of its subsidiaries could be used in fulfilling any of your duties or responsibilities with such other entity, or (2) an investment
by you in such other entity represents more than 1% of such other entity’s capital stock, partnership or other ownership interests. 
 Should you either breach or challenge in judicial or arbitration proceedings the validity of any of the restrictions contained in the preceding paragraph, by accepting the Option you agree, independent of
any equitable or legal remedies that the Company may have and without limiting the Company’s right to any other equitable or legal remedies, to pay to the Company in cash immediately upon the demand of the Company (1) the amount of income
realized for income tax purposes from the exercise of any portion of the Option, net of all federal, state and other taxes payable on the amount of such income, but only to the extent such exercises occurred on or after the termination of your term
as a Director of the Company or within the two year period prior to the date of such termination, plus (2) all costs and expenses of the Company in any effort to enforce its rights under this or the preceding paragraph. The Company shall have
the right to set off or withhold any amount owed to you by the Company or any of its subsidiaries or affiliates for any amount owed to the Company by you hereunder. 
 By accepting the Option you: (a) agree to comply with the requirements of applicable federal and other laws with respect to withholding or providing for the payment of required taxes; and
(b) acknowledge that all of your rights to the Option are embodied in the Agreement and in the Plan. 

  
 4 

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

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

  
 5EX-10.F.I

 Exhibit 10.f(i) 

MASCO CORPORATION 
 (LETTERHEAD) 
 (date) 

(NAME) 

(ADDRESS) 

(CITY, STATE, ZIP) 
 RE: TERMS AND CONDITIONS OF PERFORMANCE AWARD GRANTED UNDER THE

 MASCO CORPORATION 2005 LONG TERM STOCK
INCENTIVE PLAN 
 DEAR ***************: 

These Terms and Conditions apply to a grant to you of a performance award (the “Grant”) by the Organization and Compensation
Committee (the “Committee”) of the Board of Directors of Masco Corporation (the “Company”), which Grant may entitle you to receive a cash payment. Words capitalized in this Grant shall have the meanings given them in the Plan or
the Program (as hereinafter defined). The date of this Grant is ***********, and your Target Incentive Level is ************* for the period January 1, [year 1] through December 31, [year 3] (a “Performance Period”). Cash payment
pursuant to this Grant will be made after certification of the Company’s financial statements to the Committee after the end of each of the three years in the Performance Period and the Committee’s determination and certification following
December 31, [year 3] that an average Return on Invested Capital (“ROIC”), calculated as the average of the ROICs achieved in each of the three years, was achieved by the Company at the Threshold level (as hereinafter defined) or
greater, as provided below under the terms of the Long-Term Cash Incentive Program (the “Program”). The Program is administered by the Committee as a performance award program under the 2005 Long Term Stock Incentive Plan (the
“Plan”). All calculations under the Program will utilize your annual base salary as in effect on January 1, [year 1]. By signing and returning the enclosed duplicate copy of these Terms and Conditions, you agree to accept the Grant,
and you voluntarily agree to these Terms and Conditions and the provisions of the Plan, and acknowledge that: 
  

	 	•	 	 You have read and understand these Terms and Conditions, and are familiar with the provisions of the Plan. 

 

	 	•	 	 You have received or have access to all of the documents referred to in these Terms and Conditions. 

 

	 	•	 	 In the case of a Change in Control as defined in the Plan, the provisions of subsections 7(f)(ii)(A) and 7(f)(ii)(B) of the Plan (which describe the
Excise Tax Adjustment Payment, or “tax gross-up”) shall be inoperative and unavailable with respect to any payments which may occur as a result of accelerated vesting or otherwise, for the payments which are the subject of this Grant, and
under no circumstances shall there be made any Excise Tax Adjustment Payment or similar tax gross-up payment with respect to the payments which are the subject of this Grant following any Change in Control. 

	 	•	 	 In the event the Company has a restatement of its financial statements, other than as a result of changes to accounting rules and regulations, the
Committee shall have the discretion at any time (notwithstanding any expiration of this Agreement or of the rights or obligations otherwise arising hereunder) to require you to return all cash which you may have acquired (or which you are deemed to
have acquired) on or after the date hereof as a result of any cash incentive compensation payment (whether or not you may then be an employee, consultant or director of the Company or any of its affiliates, and whether or not your or any other
person’s misconduct may have caused such restatement), provided that such payment was paid during the three-year period preceding the date of restatement of such restated financial results, and provided, further, that any such recovery shall be
offset by recovery otherwise obtained hereunder. The Committee retains discretion regarding the application of these provisions. 

  

	 	•	 	 At the time of any Change in Control as defined in the Plan, shares awarded under this Grant which have not then become fully vested (“legacy
awards”) shall thereupon become fully vested only if the Committee fails to substitute successor awards as provided in clauses (A), (B) or (C) of subparagraph 7(f)(i) of the Plan which are equal to the then-current value of fully
vested legacy awards and the shares of the acquiring or surviving corporation are marketable securities tradable on any national securities exchange, provided that for legacy awards that do not become fully vested, the vesting schedule applicable to
the legacy awards shall continue for such successor awards; however, such successor awards shall immediately vest if the Committee determines that, within 24 months following the date of Change in Control, any such person shall have been terminated
involuntarily by the Company for a reason other than gross negligence or deliberate misconduct which demonstrably harms the Company, or that any such person shall have resigned for Good Reason as such term has been previously defined, and rules for
its application established, by the Committee. 

  

	 	•	 	 All of your rights to the Grant are embodied in these Terms and Conditions and in the Plan, and there are no other commitments or understandings
currently outstanding with respect to any other grants of options, restricted stock, phantom stock, stock appreciation rights, or performance awards, except as may be evidenced by agreements duly executed by you and the Company.

 The Company and you agree that all of the terms and conditions of the Grant are set forth in these Terms
and Conditions and in the Plan. These Terms and Conditions and the provisions of the Plan constitute your performance award agreement (the “Agreement”). Please read these documents carefully. Copies of the Plan as well as the
Company’s latest annual report to stockholders and proxy statement are available on the Company’s website at www.masco.com, in the “Documents” section of www.cpushareownerservices.com, and from the Stock Plan Services department.

 The use of the words “employment” or “employed” shall be deemed to refer to employment by the Company and
its subsidiaries and shall not include employment by an “Affiliate” (as defined in the Plan) which is not a subsidiary of the Company unless the Committee so determines at the time such employment commences. 

Except at the discretion of the Committee, no cash payments will be made if your employment is terminated prior to the Award Date, as
defined below in the Program. Cash payments (if any) in the case of termination due to a Change in Control, permanent and total disability, death or retirement will be made on a discretionary basis as provided below in the Program. 

  
 2 

 You agree not to engage in certain activities. 

Notwithstanding the foregoing, if at any time you engage in an activity following your termination of employment which in the sole
judgment of the Committee is detrimental to the interests of the Company, a subsidiary or affiliated company, all rights to any cash payment will be forfeited. You acknowledge that such activity includes, but is not limited to, “Business
Activities” (as defined below). 
 In addition you agree, in consideration for the Grant, and regardless of whether a cash
payment has been made, while you are employed or retained as a consultant by the Company or any of its subsidiaries and for a period of one year following any termination of your employment and, if applicable, any consulting relationship with the
Company or any of its subsidiaries other than a termination in connection with a Change in Control (as defined in the Plan), not to engage in, and not to become associated in a “Prohibited Capacity” (as hereinafter defined) with any other
entity engaged in, any Business Activities and not to encourage or assist others in encouraging any employee of the Company or any of its subsidiaries to terminate employment or to become engaged in any such Prohibited Capacity with an entity
engaged in any Business Activities. “Business Activities” shall mean the design, development, manufacture, sale, marketing or servicing of any product or providing of services competitive with the products or services of (x) the
Company or any subsidiary if you are employed by or consulting with the Company at any time while the Grant is outstanding, or (y) the subsidiary employing or retaining you at any time while the Grant is outstanding, to the extent such
competitive products or services are distributed or provided either (1) in the same geographic area as are such products or services of the Company or any of its subsidiaries, or (2) to any of the same customers as such products or
services of the Company or any of its subsidiaries are distributed or provided. “Prohibited Capacity” shall mean being associated with an entity as an employee, consultant, investor or another capacity where (1) confidential business
information of the Company or any of its subsidiaries could be used in fulfilling any of your duties or responsibilities with such other entity, (2) any of your duties or responsibilities are similar to or include any of those you had while
employed or retained as a consultant by the Company or any of its subsidiaries, or (3) an investment by you in such other entity represents more than 1% of such other entity’s capital stock, partnership or other ownership interests.

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

  
 3 

 You agree to the application of the Company’s Dispute Resolution Policy. 

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

The Grant does not imply any employment or consulting commitment by the Company. 

You agree that the Grant and acceptance of the Grant does not imply any commitment by the Company, a subsidiary or affiliated company to
your continued employment or consulting relationship, and that your employment status is that of an employee-at-will and in particular that the Company, its subsidiary or affiliated company has a continuing right with or without cause (unless
otherwise specifically agreed to in writing executed by you and the Company) to terminate your employment or other relationship at any time. You agree that your acceptance represents your agreement not to terminate voluntarily your current
employment (or consulting arrangement, if applicable) for at least one year from the date of grant unless you have already agreed in writing to a longer period. 

  
 4 

 You agree to comply with applicable tax requirements and to provide information as requested.

 You agree to comply with the requirements of applicable federal and other laws with respect to withholding or providing
for the payment of required taxes. 
 THE LONG-TERM CASH INCENTIVE PROGAM 
 Purpose of the Program 
 The purpose of the Program is to provide a meaningful
incentive for you to contribute to the achievement of the Company’s long-term growth and profitability goals established at the beginning of three-year measurement periods. You will have the opportunity to earn a performance award
(“Award”) pursuant to this Grant based on the Company’s financial results over the three-year Performance Period specified above. The Program is in all respects subject to the Plan, and is intended to comply with the provisions of
Internal Revenue Code Section 162(m). 
 Performance Period 
 A three-year Performance Period begins on January 1 of a given year, and ends on the December 31 which is 36 months thereafter, unless otherwise determined by the Committee. Subsequent
Performance Periods may be declared from time to time by the Committee, but in no case may a Grant be made on a date after the effective date of termination of the Plan. 
 Participants 
 The Committee has selected you to be a participant in the first
Performance Period (a “Participant”) and has specified your Target Incentive Level as set forth above, which is expressed as a percent of your annual base salary as of January 1 coincident with the beginning of the Performance Period
(“Annual Salary”). In general, Participants are part of Masco’s executive officer group. An individual’s eligibility to participate will be determined by the Committee at the beginning of each Performance Period. 

Summary of the Program 
 The
Company’s performance over the Performance Period will be evaluated against key ROIC goals established by the Committee no later than March 31 following the beginning of the Performance Period. Following the completion of each year during
the Performance Period the Company shall certify to the Committee that year’s financial results and the Committee shall thereupon determine such year’s ROIC. Upon completion of the Performance Period, the Committee will evaluate and
certify the Company’s performance by calculating the three-year average ROIC. The attainment of the Program’s goals will result in the granting of cash to you under the provisions of the Plan. If the minimum level of three-year average
ROIC (“Threshold”) for the Performance Period is not attained, no Award of cash will be made. 

  
 5 

 For the [year 1] through [year 3] Performance Period, the Committee has set the ROIC goals at levels that
are consistent with the Company’s long range business plan at the beginning of the Performance Period. The achievement of these ROIC goals will require a high level of performance over the Performance Period. 

Goals for [year 1] through [year 3] Performance Period 
 The following average ROIC goals and corresponding Performance Scores have been established by the Committee for the [year 1] through [year 3] Performance Period: 

 

													
	 Performance Scores
	  	Threshold
40%	 	 	Target
100%	 	 	Maximum
200%	 
	 Three-Year Average ROIC Goal
	  	 	*****	% 	 	 	#####	% 	 	 	*****	% 

 ROIC levels that are between the goals shown in the chart above will be ratably straightline interpolated to yield
comparably interpolated Performance Scores. 
 Example Calculation 
 As an example, if Three-Year Average ROIC for [year 1] through [year 3] is ######%, then the Performance Score would be equal to 100% of the goal. Awards are determined by multiplying your Target
Incentive Level by the Performance Score for the Performance Period. Thus, based on a Performance Score of 100%, a Participant with a 65% Target Incentive Level and an Annual Salary of $300,000 would be eligible to receive 65% of his Annual Salary,
for a cash Award of $195,000. 
  

																	
	 	  	Annual
Salary	 	  	Target
Incentive
Level %	 	 	Performance
Score	 	 	Award Amount	 
	 Participant (Example)
	  	$	300,000	  	  	 	x 65	% 	 	 	x 100	% 	 	= $	195,000	  

 Eligibility for Award Payment 
 Subject in each case to the provisions of the Plan: 
  

	 	•	 	 Your rights to any Award payment under the Program shall be forfeited at the time of termination of employment prior to the Award Date, as defined
below (except where termination is due to retirement, a Change in Control, death or permanent and total disability, in which cases proportionally adjusted Awards may be granted by the Committee following case-by-case consideration); and

  

	 	•	 	 You will be subject to all recapture, forfeiture and other provisions of the Plan; and 

  
 6 

	 	•	 	 Notwithstanding the foregoing, in the event that you transfer employment within the Company or its Affiliates, as defined in the Plan, to a position in
which you are no longer eligible to participate in the Program, such transfer will not be considered termination for purposes of an Award payment under the Program, unless and to the extent that you terminate employment with the Company (or said
Affiliate) following the transfer. 

 Timing of Award Payment 

To qualify for prompt payment of a cash Award following the Committee’s certification of performance after the completion of a Performance Period,
you must be employed by the Company or an Affiliate as of the date that the Award payment is approved by the Committee (“Award Date”), other than in the case of retirement, Change in Control, death or disability, each of which will be
treated by the Committee on a case-by-case basis. 
  

	 	•	 	 If you retire at age 65 (the normal retirement date under the Company’s retirement plans), prior to the Award Date, payment for any prorated Award
under the Program may continue to be made at the same time as other payments are made following the time of the Committee’s certification of Awards following the end of such Performance Period. 

 

	 	•	 	 In the event you are terminated due to a Change in Control or you die or become permanently disabled prior to the end of a Performance Period, you (or,
in the case of death, your estate or designated beneficiary) may be eligible to receive a cash payment equal to a prorated Award under the Program, prior to the end of such Performance Period, as determined by the Committee.

  

	 	•	 	 If you transfer within the Company or to an Affiliate, you will continue to receive your Award (pro-rated or not, as the case may be) following the
Committee’s certification of such Award, as if the transfer had not occurred. 

 Miscellaneous 

The Company is making the Program available to certain Company employees only for designated Performance Periods. Subject to its right to terminate the
Program at any time, the Company has no obligation to make the Program (in whole or in part), or any other program, available to you or to any other employee after any Performance Period. In all other respects the Program is subject to, and shall be
governed by, provisions of the Plan. Capitalized terms not otherwise defined herein shall have the meaning given them in the Plan. 

Modification and/or Termination 

The Committee may terminate or amend the Program, in whole or in part, (including without limitation the Performance Goals), in its sole discretion upon
30 days’ prior written notice given to Program Participants. 
 Administration 

The Committee has the sole authority and discretion to interpret the terms and conditions and to administer this Program. No provisions of this Program
shall control the administration and provisions of the Plan. 

  
 7 

 The Company’s Chief Executive Officer may recommend to the Committee the suspension or reduction of
Award payments to Participants who fail to achieve an acceptable level of personal performance and professionalism. 
 Any alteration,
modification, or termination of the Program shall be accomplished by action of the Committee. 
 Definitions 

Definitions to be used herein will include, but will not be limited to, the following terms, which will be construed consistent with generally accepted
accounting principles where applicable. 
 1) The ROIC for each year within a Performance Period will be determined by dividing the year’s
Operating Income After Tax by Shareholders’ Equity (as each such term is hereinafter defined and adjusted). The annual ROIC percentages so determined will be aggregated and divided by the number of years in the Performance Period to determine
the average ROIC for use in the LTCIP Award calculations. 
 2) Operating Income After Tax for the year is equal to reported operating income of
the Company multiplied by (1.00 minus the decimal equivalent of the then-applicable nominal corporate tax rate) (as determined by the Committee from time to time). 
 3) Shareholders’ Equity is average reported shareholders’ equity plus average short-term and long-term debt minus average cash and cash investments, where each such component’s average is
determined by combining the current year’s and prior year’s respective amounts and dividing each resulting sum by two. 
 4) The
Committee will adjust the foregoing components of ROIC, to exclude, as applicable, the following unusual items: impairment charges, rationalization charges, gains and losses from discontinued operations and other unusual, non-recurring gains and
losses that are separately identified and reported. 
 This Agreement shall be governed by and interpreted in accordance with
Michigan law. The headings set forth herein are for information purposes only and are not a substantive part of these Terms and Conditions. 
  

	
	Very truly yours,
	
	MASCO CORPORATION
	
	 Timothy Wadhams
 President
and Chief Executive Officer

  

	
	
	 AGREED TO THE FOREGOING TERMS AND CONDITIONS:

 
  

	Participant
	
	  
	Date

  
 8

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