Document:

exv10wbwiwvi

Exhibit 10.b.i(iv)

[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 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 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 Section 6 of
the Plan.

 

 

					
	 
	 	Page 2
	 	[Date]

     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 provision of the 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 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.

     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 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
Plan and agree to its 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 Plan.

     Section 3 of the Plan provides that the Organization and Compensation Committee shall have the
authority to make all determinations which 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.

 

 

					
	 
	 	Page 3
	 	[Date]

     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	 	 
	 
	 	 	 	 
	 

	 	Richard A. Manoogian	 	 
	 

	 	Chairman of the Board	 	 
	 

	 	and Chief Executive Officer	 	 

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

	 	 	 	 	 

	 

	 	 

	 	 
	 

	 	(Signature of Recipient)	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	(Mailing Address)	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	(Social Security Number)	 	 
	 
	 	 	 	 
	 

	 	Dated:
	 	 

 

 

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.

 

 

     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 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.exv10wcwi

Exhibit
10 c(i)

Form for: William T. Anderson

April 12, 2002

[name]

[address]

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”. I am pleased to inform you that I
have designated you as a participant in the Plan, and this Agreement 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.

     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

 

 

					
	[Name]
	 	Page 2
	 	April 12, 2002

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. For purposes of determining “Average
Compensation”, “Years of Service” and “Years” employed by the Company, Company shall also
include Metaldyne Corporation, a Delaware corporation (formerly
MascoTech, Inc.).

     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, 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

 

 

					
	[Name]
	 	Page 3
	 	April 12, 2002

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 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.

 

 

					
	[Name]
	 	Page 4
	 	April 12, 2002

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.

     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).

 

 

					
	[Name]
	 	Page 5
	 	April 12, 2002

     r. “MascoTech” shall mean Metaldyne Corporation, a Delaware corporation, formerly
incorporated as MascoTech,Inc.

     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 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

 

 

					
	[Name]
	 	Page 6
	 	April 12, 2002

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 and MascoTech funded qualified pension plans and the defined benefit (pension) plan
provisions of the Company’s and MascoTech’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 and MascoTech’s qualified defined
contribution plans (excluding your contributions and earnings thereon in the Company’s and
MascoTech’s 401(k) Savings Plans) and the defined contribution (profit sharing) provisions of the
Company’s and MascoTech’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
(other than MascoTech), 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,

 

 

					
	[Name]
	 	Page 7
	 	April 12, 2002

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) 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) 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

 

 

					
	[Name]
	 	Page 8
	 	April 12, 2002

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.

     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%.

 

 

					
	[Name]
	 	Page 9
	 	April 12, 2002

     (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 (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.

 

 

					
	[Name]
	 	Page 10
	 	April 12, 2002

(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 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

 

 

					
	[Name]
	 	Page 11
	 	April 12, 2002

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.

     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)

 

 

					
	[Name]
	 	Page 12
	 	April 12, 2002

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.

     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

 

 

					
	[Name]
	 	Page 13
	 	April 12, 2002

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. For purposes of paragraphs 1, 4 and 5, benefits “payable” but not paid by a former
employer shall be disregarded in determining the company’s obligations to you hereunder.

     l. 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

 

 

					
	[Name]
	 	Page 14
	 	April 12, 2002

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.

     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
 	 
	 

	 	 	 	 	 
	 	[name] 	 	 

	 	 	 	 
	 	 	 	 
	DATE:  	
 	 	 
	 	 	 	 
	 	 	 	 

 

 

	 	 	 	 	 

	 	 	 

	 

	 	Form of Amendment for: William T. Anderson
	 
	 	 
	 

	 	November 18, 2002

Dear

     As you know the Compensation Committee has approved a revised bonus program for the executive
group allowing year-end bonuses to fluctuate within a wide range above and below the normal 50%
bonus opportunity historically used by the Company. This change, is not, of course, intended to
significantly increase or decrease your retirement or disability benefits under our Supplemental
Executive Retirement Plan and to prevent such an effect a modification of your existing SHIP
Agreement is necessary. The amendment to your SERP Agreement set forth below limits the bonus paid
with respect to any year included in the SERP retirement calculation to 50% of the salary paid
during that year. The amount excluded, however, will be added to the bonus paid for any other year
in the SERP retirement calculation, as long as the amount added does not adjust the bonus to an
amount in excess of 50% of the salary paid during the year for which the adjusted bonus is paid. In
the case of disability payments, in order to avoid a calculation based on a year for which the
bonus was significantly higher or lower than the historical 50% level, the amendment would define
“Total Compensation” as 150% of your then current salary and your overall disability payments would
equal 60% of that amount.

     The amendments would consist of changing the definitions of “Average Compensation” and “Total
Compensation” in your SERP Agreement to read, respectively, 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 50% 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 50% 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,

 

 

November 18, 2002

Page 2

shall be based on the average base salaries and regular year-end cash bonuses paid to you
while so employed, and (z) 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.”

Total Compensation

     “If you become Disabled, “Total Compensation” shall mean 150% of your annual base
salary rate at the time of your Disability, 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.”

     Should you have any questions regarding the proposed amendment, please feel free to discuss
them with Ray Kennedy, Dan Foley, John Leekley or me. If not, I would appreciate your execution and
return of a copy of the enclosed amendment 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 the definition of

“Average Compensation” and -

“Total Compensation” as set

forth above

 

 

 

Form of Amendment for: William T. Anderson

December 5, 2003

Dear          ,

     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.”

 

 

[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: William T. Anderson

November 3, 2008

[Name]

[Address]

Dear [Name]:

     Section 409A of the Internal Revenue Code contains complex provisions
regulating the payment of deferred compensation under non-qualified retirement
programs, including your agreement (the “SERP Agreement”) under Masco’s
supplemental executive retirement plan (the “Plan”). Under recently issued regulations
of the Internal Revenue Service, non-complying payments under the Plan will result in
serious adverse tax consequences to recipients, which include an increase in your
marginal tax rate by 20 percentage points on all Plan payments not in compliance with
Section 409A and an increase in applicable late-payment penalty rates by a full
percentage point. The amendments to your SERP Agreement contained in this letter
agreement are therefore necessary to bring the payment provisions of your SERP
Agreement into compliance with Section 409A.

     The principal changes under Section 409A described in this letter apply only to
benefits accrued or vested after December 31, 2004 (“Covered Benefits”). Covered
Benefits therefore include those under post 2004 SERP Agreements, post 2004
amendments to SERP Agreements and any increase in benefits resulting from higher
compensation paid after 2004. Benefits, to the extent they were accrued and vested prior
to January 1, 2005 (“Grandfathered Benefits”), may be paid without regard to Section
409A provisions. As a result of Section 409A, Masco will be required under the Plan to
determine for each participant the portion of SERP payments attributable to
Grandfathered Benefits and the portion attributable to Covered Benefits and, at times,
treat these payments differently as described in this letter agreement.

     No payment, however, of benefits under your SERP may be made under Section
409A unless a “separation from service” has occurred. Since it is unclear under the Plan
if a “separation from service” has occurred if a participant is rendering services to Masco
following retirement or during a disability, this letter agreement clarifies that a
“separation from service” will have occurred, thereby allowing the commencement of
SERP payments, even if a participant following retirement or during disability is
providing services to Masco which do not exceed 49% of the individual’s prior services
as a full-time employee.

 

 

     Initial monthly payments for Covered Benefits under the Plan must be delayed
until six months have elapsed following a separation from service, after which time the
delayed payments would be paid in a lump sum without interest. Any portion of your
SERP payments represented by Grandfathered Benefits will not be delayed by Section
409A.

     In the unlikely event of a change in control, if such a change satisfies the
requirements of your existing SERP Agreement but not the more stringent requirements
in Section 409A for a change in control, the same seriously adverse tax consequences to
you could occur. In order to eliminate these consequences if a change in control does not
satisfy both tests, this letter agreement would provide that any Grandfathered Benefits
under your SERP Agreement will be paid in a lump sum as currently provided in the
existing SERP Agreement with the Covered Benefits subject to Section 409A paid to the
Deferred Compensation Trust and thereafter distributed by the Trust as though no change
in control has occurred. A new change in control trigger, included in this letter
agreement in clause (iii) of Paragraph 13, has been added to ensure that if the
requirements of Section 409A have been met, payments of your SERP benefits will be
made as currently scheduled in your SERP Agreement.

     Finally, in light of the recent increase in your annual cash bonus opportunity from
100% of your base salary, the Organization and Compensation Committee of our Board
of Directors has approved a change in your SERP Agreement to increase the amount of
your annual bonus which is includible in “Average Compensation”, as that term is used
in your SERP Agreement. A conforming change would also be made in the definition of
‘Total Compensation” for purposes of disability payments. As noted above, the increased
portion of your benefit attributable to these changes will be a Covered Benefit under
Section 409A.

     In order to assure ongoing compliance with these new statutory provisions, to
avoid potentially severe tax consequences to you and to increase the amount of any
bonuses includible in determining payments to be made under your SERP Agreement, we
are requesting that you agree to the amendments to your SERP Agreement set forth
below.

     The definition of “Average Compensation” in clause (a) of your SERP Agreement
shall be amended to read as follows:

     “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.

     The definition of Total Compensation in clause (n) of your SERP Agreement shall
be amended to read as follows:

     “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”.

     The definition of “Surviving Spouse” in clause (m) of your SERP Agreement
shall be amended by substituting for the words “the commencement of your Disability”
the words “the termination of your employment as a result of Disability”.

     The definition of “Retirement” in clause (l) of your SERP Agreement shall be
amended to read as follows:

     “Retirement” shall mean your termination of employment with the
Company on or after you attain age 65. Termination of employment for all
purposes under this Agreement shall mean a “separation from service” under
Section 409A of the Code which shall only occur if any services which you may
continue to provide to the Company as an employee or as a consultant after
termination of employment are not in excess of 49% of your prior service level,
all as determined in accordance with the regulations under Section 409A of the
Code.

     Paragraph 6 of your SERP Agreement shall be amended to insert the phrase
“resulting in a termination of employment” following the first occurrence of the word
“Disabled” and thereby read as follows:

     6. If you shall have been employed by the Company for two Years or
more and while employed by the Company you become Disabled resulting in a
termination of employment 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.

 

 

     Paragraph 9 of your SERP Agreement shall be amended by substituting for the
word “Disabled” in the last sentence thereof the words “terminated from employment by
reason of Disability”.

     Paragraph 10(iii) of your SERP Agreement shall be amended by deleting the word
“Disabled” in clause (1) thereof and substituting therefore the phrase “are terminated as a
result of Disability”.

     A new or modified Paragraph 13 for your SERP Agreement shall read as follows
and replace any existing Paragraph 13 in your SERP Agreement:

     13. Section 409A (i) This Agreement shall be administered so as to
impose (if required in order to avoid a violation of Section 409A (a)(2)(B)(i) of
the Code) a six-month waiting period for payments of Covered Benefits
(hereinafter defined), to begin following your termination of employment. If such
waiting period is applicable, the first payment following the waiting period shall
include any payments (with no payment for interest) delayed under this provision.

     (ii) If a “Change in Control” has occurred which is also a “Change of
Control” as defined in Section 13(iii) below, then all of the provisions of the
Agreement, including the provisions of Paragraph 10, shall apply without change.
However, if there is a “Change in Control” which is not a “Change of Control” as
defined in Section 13(iii) then (A) as to that portion of your benefits under this
Agreement which is not subject to the provisions of Section 409A of the Code
(the “Grandfathered Benefits”), all of the provisions of this Agreement, including
Section 10, shall apply without change, and (B) as to that portion of your benefits
under this Agreement which is subject to Section 409A of the Code (the “Covered
Benefits”), the only provisions of Paragraph 10 which shall be applicable thereto
are clauses (1), (2) and (3) of Paragraph 10(i) and Paragraphs 10(ii), 10(iv) and
10(v). The amount deposited in the Deferred Compensation Trust representing
110% of the Gross-Up Amount attributable to the Grandfathered Benefits, the
Covered Benefits or otherwise shall be held in and distributed from the Deferred
Compensation Trust in accordance with the provisions of Paragraph 10. The
amount so deposited representing the Covered Benefits shall be held and invested
by the Deferred Compensation Trust and paid to you or your Surviving Spouse as
an annuity under the applicable circumstances of Paragraphs 1, 2, 4 (disregarding
the inapplicability of Paragraph 4 in the event of a “Change in Control”), 5, 6 or 7
of this Agreement. If, for any reason, the monthly benefit paid by the Deferred
Compensation Trust to you or your Surviving Spouse is less than the monthly
benefit used to calculate the amount deposited under the next preceding sentence,
the Company shall pay the deficiency directly to you or your Surviving Spouse.

     (iii) A “Change of Control” for purposes of Section 409A of the Code
shall be deemed to have occurred if during any period of twelve 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 a majority 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 30 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 30 percent or more of such combined voting power.

     Should you have any questions regarding these proposed amendments, please feel
free to discuss them with Chuck Greenwood, 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 amendments will become effective.

Sincerely yours,

Timothy Wadhams

President and Chief Executive Officer

I agree to the above-described

Amendments to my SERP

Agreement.

          
                   
                   
                   
             

                         [Name]

 

 

As to William T. Anderson

October 26, 2009

Mr. William T. Anderson

Dear Bill:

     As you know, the Organization and Compensation Committee of the Company’s Board
of Directors has determined that benefit accruals under your Supplemental Executive Retirement
Plan are to be frozen effective January 1, 2010. In order to implement this change, the
definitions of “Average Compensation,” “Total Compensation,” and several other relevant
definitions must be changed.

     In addition, language must be added to the definition of “Profit Sharing Conversion
Factor” and to Paragraphs 1, 4 and 5 to provide that the offsets to your SERP which are derived
from Company contributions to the Future Service Profit Sharing Plan and other similar sources
are also frozen, with provision for future account growth using imputed interest.

     Consequently, in order to implement this change, effective January 1, 2010, the following
provisions of your SERP are amended to read as follows:

     The definition of Average Compensation in paragraph (a) of your SERP Agreement is
changed to read 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
(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. Notwithstanding the foregoing, any base
salary paid after December 31, 2009, and any bonus earned (or maximum bonus opportunity for)
any period after that date, shall be disregarded.

 

 

Mr. William T. Anderson

October 26, 2009

Page 2

     The definition of Profit Sharing Conversion Factor in clause (j) of your SERP Agreement
shall be amended to read as follows:

     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 of January, 2010 as reported in Federal Reserve
Statistical Release G.13 and H.15 (or, if such interest rate ceases to be so reported prior to
January, 2010, such other interest rate as the Board of Directors deems is an appropriate
substitute).

     The definition of Total Compensation in clause (n) of your SERP Agreement shall be
amended to read as follows:

     n. 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 earlier of the
time of your Disability or January 1, 2010.

     The definition of Year in clause (p) of your SERP Agreement shall be amended to read as
follows:

     p. “Year”
shall mean twelve full consecutive months, and “year” shall mean a calendar
year; provided, however, to the extent required to determine your SERP Percentage, “year” and
“Year” shall include only time periods prior to and including January 1, 2010.

     The definition of Years of Service in clause (q) of your SERP Agreement shall be
amended to read as follows:

     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); provided,
however, to the extent required to determine your SERP Percentage, “Year of Service” shall
include only time periods prior to and including January 1, 2010.

     Paragraph 1 of your SERP Agreement shall be amended to read as follows:

     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

 

 

Mr. William T. Anderson

October 26, 2009

Page 3

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 pursuant to these subsections (i), (ii) and (iii) shall be
determined (x) 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 and (y) if Retirement occurs on or after January 1, 2010, based
on offsetting values as of January 1, 2010, except that any defined contribution individual
account values as of January 1, 2010 (including any pro forma, rather than actual, account
balance at such date, including imputed interest thereon with respect to amounts previously
withdrawn, and including any Company contribution or allocation with respect to 2009 which is
made on or after January 1, 2010) utilized under subsections (ii) and (iii) above shall be
projected to the date of determination at the imputed rate of 4% per annum prior to application of
the Profit Sharing Conversation Factor.

     Paragraph 4 of your SERP Agreement shall be amended to read as follows:

     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 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

 

 

Mr. William T. Anderson

October 26, 2009

Page 4

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, 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
(x) 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 and (y) if termination occurs on or after January 1, 2010, based
on offsetting values as of January 1, 2010, except that any defined contribution individual
account values as of January 1, 2010 (including any pro forma, rather than actual, account
balance at such date, including imputed interest thereon with respect to amounts previously
withdrawn, and including any Company contribution or allocation with respect to 2009 which is
made on or after January 1, 2010) utilized under above subsections (ii) and (iii) shall be
projected to the date of determination at the imputed rate of 4% per annum prior to application of
the Profit Sharing Conversation Factor. 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 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.

 

 

Mr. William T. Anderson

October 26, 2009

Page 5

     Paragraph 5 of your SERP Agreement shall be amended to read as follows:

     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 (x) 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 and (y) if death occurs on or after January 1, 2010, based on off-setting values as
of January 1, 2010, except that any defined contribution individual account values as of
January 1, 2010 (including any pro forma, rather than actual, account balance at such date,
including imputed interest thereon with respect to amounts previously withdrawn, and including
any Company contribution or allocation with respect to 2009 which is made on or after January
1, 2010) utilized under above subsections (ii) and (iii) shall be projected to the date of
determination at the imputed rate of 4% per annum prior to application of the Profit Sharing
Conversion Factor. No death benefits are payable except to your Surviving Spouse.

 

 

Mr. William T. Anderson

October 26, 2009

Page 6

     In order to make these changes effective, please sign the enclosed copy of this letter
agreement and return it to Barry Silverman.

Sincerely yours,

Timothy Wadhams

President and Chief Executive Officer

I agree to the above-described amendments

to my Supplemental Executive Retirement

Plan with the Company.

          
                   
                   
                   
             

William T. Anderson

Date:

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