Document:

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                                   RESOLUTIONS
                            OF THE PRICING COMMITTEE
                            OF THE BOARD OF DIRECTORS
                              OF MASCO CORPORATION

                                 August 17, 1993

         In lieu of a meeting, the undersigned being all of the members of the
Pricing Committee of the Board of Directors of Masco Corporation, a Delaware
corporation (the "Company"), adopt the following resolutions:

         WHEREAS, the Company has filed two Registration Statements (Nos.
33-40067 and 33-53330) on Form S-3 with the Securities and Exchange Commission,
which are in effect;

         WHEREAS, the Company desires to create an additional series of
securities under the Indenture dated as of December 1, 1982 (the "Indenture"),
with Morgan Guaranty Trust Company of New York, as trustee (the "Trustee"),
providing for the issuance from time to time of unsecured debentures, notes or
other evidences of indebtedness of this Company ("Securities") in one or more
series under such Indenture; and

         WHEREAS, capitalized terms used in these resolutions and not otherwise
defined are used with the same meaning ascribed to such terms in the Indenture;

         THEREFORE, IT IS RESOLVED, that there is established a series of
Securities under the Indenture, the terms of which shall be as follows:

         1.   The Securities of such series shall be designated as "7 1/8%
              Debentures Due August 15, 2013".

         2.   The aggregate principal amount of Securities of such series which
              may be authenticated and delivered under the Indenture is limited
              to Two Hundred Million Dollars ($200,000,000), except for
              Securities of such series authenticated and delivered upon
              registration of, transfer of, or in exchange for, or in lieu of,
              other Securities of such series pursuant to Sections 2.07, 2.08,
              2.09, 9.04 or 14.03 of the Indenture.

         3.   The date on which the principal of the Securities of such series
              shall be payable is August 15, 2013.

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         4.   The Securities of such series shall bear interest from August 15,
              1993, at the rate of 7 1/8% per annum, payable semi-annually on
              February 15 and August 15 of each year commencing on February 15,
              1994, until the principal thereof is paid or made available for
              payment. The February 1 or August 1 (whether or not a business
              day), as the case may be, next preceding each such interest
              payment date shall be the "record date" for the determination of
              holders to whom interest is payable.

         5.   The principal of and interest on the Securities of such series
              shall be payable at the office or agency of this Company
              maintained for such purpose under Section 3.02 of the Indenture in
              the Borough of Manhattan, The City of New York, or at any other
              office or agency designated by the Company, for such purpose
              pursuant to the Indenture; provided, however, that at the option
              of the Company payment of interest may be made by check mailed to
              the address of the person entitled thereto as such address shall
              appear on the Company's registry books.

         6.   The Securities of such series shall not be redeemable prior to
              maturity.

         7.   The Securities of such series shall be issuable in denominations
              of One Thousand Dollars ($1,000) and any integral multiples
              thereof.

         8.   The Securities shall be issuable at a price such that this Company
              shall receive $197,000,000 (plus accrued interest from August 15,
              1993 to the date of delivery) after an underwriting discount of
              $1,750,000.

         FURTHER RESOLVED, that the Securities of such series are declared to be
issued under the Indenture and subject to the provisions hereof;

         FURTHER RESOLVED, that the Chairman of the Board, the President of any
Vice President is authorized to execute, on the Company's behalf and in its
name, and the Secretary or an Assistant Secretary is authorized to attest to
such execution and under the Company's seal (which may be in the form of a
facsimile of the Company's seal) $200,000,000 aggregate principal amount of the
Securities of such series (and in addition Securities to replace lost, stolen,
mutilated or destroyed Securities and Securities required for exchange,
substitution or transfer, all as provided in the Indenture) in fully registered
form in substantially the form of the debenture filed as an exhibit to the
Company's Registration Statements on Form S-3 (No. 33-40067 and 33-53330), but
with such changes and insertions therein as are appropriate to conform the
Debentures to the terms set forth herein or otherwise as the respective officers
executing the Securities shall approve and as are not inconsistent with these
resolutions, such approval to be conclusively evidenced by such

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officer's execution and delivery of such Securities, and to deliver such
Securities to the Trustee for authentication, and the Trustee is authorized and
directed thereupon to authenticate and deliver the same to or upon the written
order of the Company as provided in the Indenture;

         FURTHER RESOLVED, that the signatures of the Company officers so
authorized to execute the Securities of such series may be the manual or
facsimile signatures of the present or any future authorized officers and may be
imprinted or otherwise reproduced thereon, and the Company for such purpose
adopts each facsimile signature as binding upon it notwithstanding the fact that
at the time the respective Securities shall be authenticated and delivered or
disposed of, the individual so signing shall have ceased to hold such office;

         FURTHER RESOLVED, that Salomon Brothers Inc and Smith Barney Shearson
Inc. are appointed as the underwriters for the issuance and sale of the
Securities of such series, and the Chairman of the Board, the President or any
Vice President of the Company is authorized, in the Company's name and on its
behalf, to execute and deliver and Underwriting Agreement, substantially in the
form heretofore approved by the Company's Board of Directors, with such
underwriters, with such changes and insertions therein as are appropriate to
conform such Underwriting Agreement to the terms set forth herein or otherwise
as the officer executing such Underwriting Agreement shall approve and as are
not inconsistent with these resolutions, such approval to be conclusively
evidenced by such officer's execution and delivery of the Underwriting
Agreement;

         FURTHER RESOLVED, that Morgan Guaranty Trust Company of New York, the
Trustee under the Indenture, is appointed trustee for Securities of such series,
and as Agent of this Company for the purpose of effecting the registration,
transfer and exchange of the Securities of such series as provided in the
Indenture, and the corporate trust office of Morgan Guaranty Trust Company of
New York in the Borough of Manhattan, The City of New York is designated
pursuant to the Indenture as the office or agency of the Company where such
Securities may be presented for registration, transfer and exchange and where
notices and demands to or upon this Company in respect of the Securities and the
Indenture may be served;

         FURTHER RESOLVED, that Morgan Guaranty Trust Company of New York is
appointed Paying Agent of this Company for the payment of interest on and
principal of the Securities of such series, and the corporate trust office of
Morgan Guaranty Trust Company of New York, is designated, pursuant to the
Indenture, as the office or agency of the Company where Securities may be
presented for payment; and

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         FURTHER RESOLVED, that each Company officer is authorized and directed,
on behalf of the Company and in its name, to do or cause to be done everything
such officer deems advisable to effect the sale and delivery of the Securities
of such series pursuant to the Underwriting Agreement and otherwise to carry out
the Company's obligations under the Underwriting Agreement, and to do or cause
to be done everything and to execute and deliver all documents as such officer
deems advisable in connection with the execution and delivery of the
Underwriting Agreement and the execution, authentication and delivery of such
Securities (including, without limiting the generality of the foregoing,
delivery to the Trustee of the Securities for authentication and of requests or
orders for the authentication and delivery of Securities).

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                 Permanent Global Registered Fixed Rate Security

         THIS DEBENTURE IS A GLOBAL SECURITY AND IS REGISTERED IN THE NAME OF A
DEPOSITORY OR A NOMINEE THEREOF. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN
PART FOR DEBENTURES IN CERTIFICATED FORM, THIS DEBENTURE MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
("DTC") TO A NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR
DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY. UNLESS THIS DEBENTURE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO MASCO CORPORATION OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY DEBENTURE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

                                MASCO CORPORATION
                      7 1/8% Debenture Due August 15, 2013

REGISTERED                                                   CUSIP No. 574599AN6
No. R-1

Masco Corporation, a corporation duly organized and existing under the laws of
the State of Delaware (herein referred to as the "Company"), for value received,
hereby promises to pay to CEDE & CO. or registered assigns, at the office or
agency of the Company in the Borough of Manhattan, The City of New York, the
principal sum of TWO HUNDRED MILLION DOLLARS ($200,000,000) on August 15, 2013,
in such coin or currency of the United States of America as at the time of
payment shall be legal tender for the payment of public and private debts, and
to pay interest, semi-annually on February 15 and August 15 of each year, on
said principal sum at said office or agency, in like coin or currency, at the
rate per annum specified in the title of this Debenture, from the February 15 or
August 15, as the case may be, next preceding the date of this Debenture to
which interest has been paid or duly provided for, unless the date hereof is a
date to which interest has been paid or duly provided for, in which case from
the date of this Debenture, or unless no interest has been paid or duly provided
for on the Debentures since the original issue date (as defined in the Indenture
referred to on the reverse hereof) of this Debenture, in which case from the
February 15 or August 15 next preceding such original issue date or if the
original issue date is a February 15 or August 15 then from such original issue
date, until

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payment of said principal sum has been made or duly provided for.
Notwithstanding the foregoing, if the date hereof is after February 1 or August
1, as the case may be, and before the following February 15 or August 15, this
Debenture shall bear interest from such February 15 or August 15; provided,
however, that if the Company shall default in the payment of interest on such
February 15 or August 15, then this Debenture shall bear interest from the next
preceding February 15 or August 15 to which interest has been paid or duly
provided for, or, if no interest has been paid or duly provided for on the
Debentures since the original issue date (as defined in such Indenture) of this
Debenture, from the February 15 or August 15 next preceding such original issue
date unless the original issue date is a February 15 or August 15, in which case
from the original issue date hereof. The interest so payable on any February 15
or August 15 will, subject to certain exceptions provided in such Indenture, be
paid to the person in whose name this Debenture is registered at the close of
business on the February 1 or August 1, as the case may be, next preceding such
February 15 or August 15, whether or not such February 1 or August 1 is a
business day, and may, at the option of the Company, be paid by check mailed to
the registered address of such person.

Reference is made to the further provisions of this Debenture set forth on the
reverse hereof. Such further provisions shall for all purposes have the same
effect as though fully set forth at this place.

This Debenture shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been signed by or on behalf of
the Trustee under such Indenture.

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IN WITNESS WHEREOF, Masco Corporation has caused this instrument to be executed
in its corporate name by the facsimile signature of its Chairman of the Board or
its President and imprinted with a facsimile of its corporate seal, attested by
the facsimile signature of its Secretary or an Assistant Secretary.

Dated: August 18, 1993

Masco Corporation

By /s/Richard A. Manoogian
   -----------------------
      Chairman of the Board

Attest

By /s/ Gerald Bright
   -----------------------
       Assistant Secretary

CERTIFICATE OF AUTHENTICATION

THIS IS ONE OF THE SECURITIES OF THE SERIES DESIGNATED THEREIN REFERRED TO IN
THE WITHIN-MENTIONED INDENTURE.

MORGAN GUARANTY TRUST COMPANY OF NEW YORK,
                                        AS TRUSTEE

BY
   ---------------------------------
     AUTHORIZED OFFICER

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                              REVERSE OF DEBENTURES

         This Debenture is one of a duly authorized issue of debentures, notes,
bonds or other evidences of indebtedness of the Company (hereinafter called the
"Securities") of the series hereinafter specified, all issued or to be issued
under and pursuant to an indenture dated as of December 1, 1982 (herein called
the "Indenture"), duly executed and delivered by the Company to Morgan Guaranty
Trust Company of New York, Trustee (herein called the "Trustee"), to which
Indenture and all indentures supplemental thereto reference is hereby made for a
description of the rights, limitations of rights, obligations, duties and
immunities thereunder of the Trustee, the Company and holders of the Securities.
The Securities may be issued in one or more series, which different series may
be issued in various aggregate principal amounts, may mature at different times,
may bear interest (if any) at different rates, may be subject to different
redemption provisions (if any), may be subject to different sinking, purchase or
analogous funds (if any), may be subject to different covenants and Events of
Default and may otherwise vary as in the Indenture provided. This Debenture is
one of a series designated as the 7 1/8% Debentures Due August 15, 2013 of the
Company, limited in aggregate principal amount to $200,000,000.

         In case an Event of Default with respect to the 7 1/8% Noes Due August
15, 2013 shall have occurred and be continuing, the principal hereof may be
declared, and upon such declaration shall become, due and payable, in the
manner, with the effect and subject to the conditions provided in the Indenture.

         The Indenture contains provisions permitting the Company and the
Trustee, with the consent of the holders of not less than 66 2/3% in aggregate
principal amount of the Securities at the time outstanding of all series to be
affected (voting as a class), evidenced as in the Indenture provided, to execute
supplemental indentures adding any provisions to or changing in any manner or
eliminating any of the provisions of the Indenture or of any supplemental
indenture or modifying in any manner the rights of the holders of the Securities
of each such series; provided, however, that no such supplemental indenture
shall (i) extend the final maturity of any Security, or reduce the rate or
extend the time of payment of interest thereon, or reduce the principal amount
thereof or any premium thereon, or reduce any amount payable on redemption
thereof or make the principal thereof or any interest of premium thereon payable
in any coin or currency other than that hereinbefore provided, or impair or
affect the right of any holder to institute suit for payment thereof or the
right of repayment, if any, at the option of the holder, without the consent of
the holder of each Security so affected, or (ii) reduce the aforesaid principal
amount of Securities of all series to be affected, the holders of which are
required to consent to any such supplemental indenture, without the consent of
the holders of all Securities so affected then outstanding. It is also provided
in the Indenture that, with respect to certain defaults or Events of Default
regarding the Securities of any series, prior to any declaration accelerating
the maturity of such Securities, the holders of a majority in aggregate
principal amount of the Securities of such series at the time outstanding (or,

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in the case of certain defaults or Events of Default, all the Securities) may on
behalf of the holders of all of the Securities of such series (or all the
Securities, as the case may be) waive any such past default or Event of Default
under the Indenture and its consequences except a default in the payment of
principal of, premium, if any, or interest, if any, on any of the Securities.
Any such consent or waiver by the holder of this Debenture (unless revoked as
provided in the Indenture) shall be conclusive and binding upon such holder and
upon all future holders and owners of this Debenture and any Debentures which
may be issued in exchange or transfer hereof or in substitution herefor,
irrespective of whether or not any notation thereof is made upon this Debenture
or such other Debentures.

         No reference herein to the Indenture and no provision of this Debenture
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of and interest on this
Debenture at the place, at the respective times, at the rate and in the coin or
currency herein prescribed.

         The Debentures are issuable in registered form without coupons in
denominations of $1,000 and any multiple of $1,000. Upon due presentment for
registration of transfer of this Debenture at the office or agency of the
Company for such registration in the Borough of Manhattan, The City of New York,
or any other location or locations as may be provided for pursuant to the
Indenture, a new Debenture or Debentures of authorized denominations for an
equal aggregate principal amount will be issued to the transferee in exchange
therefor, subject to the limitations provided in the Indenture, without charge
except for any tax or other governmental charge imposed in connection therewith.

         The Debentures may not be redeemed prior to maturity.

         The Company, the Trustee and any agent of the Company or the Trustee
may deem and treat the holder hereof as the absolute owner of this Debenture
(whether or not this Debenture shall be overdue and notwithstanding any notation
of ownership or other writing hereon), for the purpose of receiving payment of
or on account of the principal hereof and, subject to the provisions on the face
hereof, interest hereon, and for all other purposes, and neither the Company nor
the Trustee nor any such agent shall be affected by any notice to the contrary.
All payments made to or upon the order of such holder shall, to the extent of
the sum or sums paid, effectually satisfy and discharge liability for moneys
payable hereon.

         No recourse for the payment of the principal of, or premium, if any, or
interest on this Debenture, or for any claim based hereon or otherwise in
respect hereof, and no recourse under or upon any obligation, covenant or
agreement of the Company in the Indenture or any indenture supplemental thereto
or in any Debenture, or because of the creation of any indebtedness represented
thereby, shall be had against any incorporator, stockholder, officer or
director, as such, past, present or future, of the Company or of any successor
corporation, either directly or through the Company or

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any successor corporation, whether by virtue of any constitution, statute or
rule of law or by the enforcement of any assessment or penalty or otherwise, all
such liability being, by the acceptance hereof and as part of the consideration
for the issue hereof, expressly waived and released.

         All terms used in this Debenture which are defined in the Indenture
shall have the respective meanings ascribed to them therein.

         This Debenture shall be deemed to be a contract made under the laws of
the State of New York, and for all purposes shall be construed in accordance
with and governed by the laws of that State.

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The following abbreviations, where such abbreviations appear on this
certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship and not as tenants in
common
UNIF GIFT MIN ACT-              Custodian
                  --------------         --------------------------------
                      (Cust)                          (Minor)
                   under Uniform Gifts to Minors Act
                                                     --------------------
                                                             (State)
Additional abbreviations may also be used though not in the above list.

                FOR VALUE RECEIVED, the undersigned hereby sells,
                           assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY OR OTHER
 IDENTIFYING NUMBER OF ASSIGNEE

--------------------------------------------------------------------------------
             PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF ASSIGNEE

--------------------------------------------------------------------------------
              the within Debenture of MASCO CORPORATION and hereby
                     does irrevocably constitute and appoint

                                                                   Attorney
-----------------------------------------------------------------
    to transfer the said Debenture on the books of the within-named Company,
                with full power of substitution in the premises.

Dated
      ---------------------------    -------------------------------------------

                                     NOTICE: THE SIGNATURE TO THIS ASSIGNMENT
                                     MUST CORRESPOND WITH THE NAME AS WRITTEN
                                     UPON THE FACE OF THE CERTIFICATE IN EVERY
                                     PARTICULAR WITHOUT ALTERATION OR
                                     ENLARGEMENT OR ANY CHANGE WHATEVER.

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                                   RESOLUTIONS
                                     OF THE
                                PRICING COMMITTEE
                                     OF THE
                               BOARD OF DIRECTORS
                              OF MASCO CORPORATION
                                 April 16, 1998

     In lieu of a meeting, the undersigned being all of the members of the
Pricing Committee of the Board of Directors of Masco Corporation, a Delaware
corporation (the "Company"), adopt the following resolutions: WHEREAS, the
Company has filed a Registration Statement (No. 33-56043) on Form S-3 with the
Securities and Exchange Commission, which is in effect; WHEREAS, the Company
desires to create an additional series of securities under the Indenture dated
as of December 1, 1982 (as amended to the date hereof, the "Indenture"), with
The First National Bank of Chicago, as successor trustee to Morgan Guaranty
Trust Company of New York (the "Trustee"), providing for the issuance from time
to time of unsecured debentures, notes or other evidences of indebtedness of
this Company ("Securities") in one or more series under such Indenture; and

     WHEREAS, capitalized terms used in these resolutions and not otherwise
defined are used with the same meaning ascribed to such terms in the Indenture;
THEREFORE RESOLVED, that there is established a series of Securities under the
Indenture, the terms of which shall be as follows:

          1. The Securities of such series shall be designated as the "6.625%
     Debentures Due April 15, 2018".

          2. The aggregate principal amount of Securities of such series which
     may be authenticated and delivered under the Indenture is limited to Two
     Hundred Fifty Million Dollars ($250,000,000), expect for Securities of such
     series authenticated and delivered upon registration of, transfer of, or in
     exchange for, or in lieu of, other Securities of such series pursuant to
     Sections 2.07, 2.08, 2.09, 9.04 or 14.03 of the Indenture.

          3. The date on which the principal of the Securities of such series
     shall be payable is April 15, 2018.

          4. The Securities of such series shall bear interest from April 21,
     1998, at the rate of 6.625% per annum, payable semi-annually on April 15
     and October 15 of each year commencing on October 15, 1998, until the
     principal thereof is paid or made available for payment. The April 1 or
     October 1 (whether or not a business day), as the case may be, next

<PAGE>
     preceding each such interest payment date shall be the "record date" for
     the determination of holders to whom interest is payable.

          5. The Securities shall be issued initially in the form of one or more
     global securities registered in the name of Cede & Co., as nominee of The
     Depository Trust Company ("DTC"), and will be held by the Trustee as
     custodian for DTC. The Securities shall be subject to the procedures of DTC
     described in the Company's prospectus supplement dated April 16, 1998
     relating to the Securities and, except as described in such prospectus
     supplement, will not be issued in definitive registered form.

          6. The principal of and interest on the Securities of such series
     shall be payable at the office or agency of this Company maintained for
     such purpose under Section 3.02 of the Indenture in the Borough of
     Manhattan, The City of New York, or at any other office or agency
     designated by the Company, for such purpose pursuant to the Indenture;
     provided, however, that if Securities in definitive registered form are
     issued, then at the option of the Company payment of interest may be made
     by check mailed to the address of the person entitled thereto as such
     address shall appear on the Company's registry books.

          7. The Securities of such series shall not be redeemable prior to
     maturity.

          8. The Securities of such series shall be issuable in denominations of
     One Thousand Dollars ($1,000) and any integral multiples thereof.

          9. The Securities shall be issuable at a price such that this Company
     shall receive $247,460,000 after an underwriting discount of $2,187,500.

          10. The Securities shall be subject to defeasance and discharge and to
     defeasance of certain obligations as set forth in the Indenture.

     FURTHER RESOLVED, that the Securities of such series are declared to be
issued under the Indenture and subject to the provisions hereof; FURTHER
RESOLVED, that the Chairman of the Board, the President or any Vice President of
the Company is authorized to execute, on the Company's behalf and in its name,
and the Secretary or any Assistant Secretary of the Company is authorized to
attest to such execution and under the Company's seal (which may be in the form
of a facsimile of the Company's seal), $250,000,000 aggregate principal amount
of the Securities of such series (and in addition Securities to replace lost,
stolen, mutilated or destroyed Securities and Securities required for

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<PAGE>

exchange, substitution or transfer, all as provided in the Indenture) in fully
registered form in substantially the form of the note filed as an exhibit to the
Company's Registration Statement on Form S-3 (No. 33-56043), but with such
changes and insertions therein as are appropriate to conform the Securities to
the terms set forth herein or otherwise as the respective officers executing the
Securities shall approve and as are not inconsistent with these resolutions,
such approval to be conclusively evidenced by such officer's execution and
delivery of such Securities, and to deliver such Securities to the Trustee for
authentication, and the Trustee is authorized and directed thereupon to
authenticate and deliver the same to or upon the written order of this Company
as provided in the Indenture;

     FURTHER RESOLVED, that the signatures of the Company officers so authorized
to execute the Securities of such series may be the manual or facsimile
signatures of the present or any future authorized officers and may be imprinted
or otherwise reproduced thereon, and the Company for such purpose adopts each
facsimile signature as binding upon it notwithstanding the fact that at the time
the respective Securities shall be authenticated and delivered of disposed of,
the individual so signing shall have ceased to hold such office;

     FURTHER RESOLVED, that Salomon Brothers Inc. and Merrill Lynch, Pierce,
Fenner & Smith Incorporated are appointed as the underwriters for the issuance
and sale of the Securities of such series, and the Chairman of the Board, the
President or any Vice President of the Company is authorized, in the Company's
name and on its behalf, to execute and deliver an Underwriting Agreement,
substantially in the form heretofore approved by the Company's Board of
Directors, with such underwriters, with such changes and insertions therein as
are appropriate to conform such Underwriting Agreement to the terms set forth
herein or otherwise as the officer executing such Underwriting Agreement shall
approve and as are not inconsistent with these resolutions, such approval to be
conclusively evidenced by such officer's execution and delivery of the
Underwriting Agreement;

     FURTHER RESOLVED, that The First National Bank of Chicago, the Trustee
under the Indenture, is appointed trustee for Securities of such series, and as
Agent of this Company for the purpose of effecting the registration, transfer
and exchange of the Securities of such series as provided in the Indenture, and
the corporate trust office of The First National Bank of Chicago in the Borough
of Manhattan, The City of New York is designated pursuant to the Indenture as
the office or agency of the Company where such Securities may be presented for
registration, transfer and exchange and where notices and demands to or upon
this Company in respect of the Securities and the Indenture may be served;

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<PAGE>

     FURTHER RESOLVED, that The First National Bank of Chicago is appointed
Paying Agent of this Company for the payment of interest on and principal of the
Securities of such series, and the corporate trust office of The First National
Bank of Chicago, is designated, pursuant to the Indenture, as the office or
agency of the Company where Securities may be presented for payment; and

     FURTHER RESOLVED, that each of the Company's officers is authorized and
directed, on behalf of the Company and in its name, to do or cause to be done
everything such officer deems advisable to effect the sale and delivery of the
Securities of such series pursuant to the Underwriting Agreement and otherwise
to carry out the Company's obligations under the Underwriting Agreement, and to
do or cause to be done everything and to execute and deliver all documents as
such officer deems advisable in connection with the execution and delivery of
the Underwriting Agreement and the execution, authentication and delivery of
such Securities (including, without limiting the generality of the foregoing,
delivery to the Trustee of the Securities for authentication and of requests or
orders for the authentication and delivery of Securities).

<PAGE>

                 Permanent Global Registered Fixed Rate Security

     THIS DEBENTURE IS A GLOBAL SECURITY AND IS REGISTERED IN THE NAME OF A
DEPOSITORY OR A NOMINEE THEREOF. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN
PART FOR NOTES IN CERTIFICATED FORM, THIS DEBENTURE MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
("DTC") TO A NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR
DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY. UNLESS THIS DEBENTURE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO MASCO CORPORATION OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY DEBENTURE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

                                MASCO CORPORATION
                       6.625% Debenture Due April 15, 2018

REGISTERED                                                  CUSIP No. 574599 AR7
No. R-1

Masco Corporation, a corporation duly organized and existing under the laws of
the State of Delaware (herein referred to as the "Company"), for value received,
hereby promises to pay to CEDE & CO. or registered assigns, at the office or
agency of the Company in the Borough of Manhattan, The City of New York, the
principal sum of TWO HUNDRED MILLION DOLLARS ($200,000,000) on April 15, 2018,
in such coin or currency of the United States of America as at the time of
payment shall be legal tender for the payment of public and private debts, and
to pay interest, semi-annually on April 15 and October 15 of each year, on said
principal sum at said office or agency, in like coin or currency, at the rate
per annum specified in the title of this Debenture, from the April 15 or October
15, as the case may be, next preceding the date of this Debenture to which
interest has been paid or duly provided for, unless the date hereof is a date to
which interest has been paid or duly provided for, in which case from the date
of this Debenture, or unless no Interest has been paid or duly provided for on
the Debentures since the original issue date (as defined in the Indenture
referred to on the reverse hereof) of this Debenture, in which case from the
original issue date, until payment of said principal sum has been made or duly
provided for. Notwithstanding the foregoing, if the date hereof is after April 1
or October 1, as the case may be, and before the following April 15 or October
15, this Debenture shall bear interest from such April 15 or October 15;
provided, however,

                                       1

<PAGE>

that if the Company shall default in the payment of interest on such April 15 or
October 15, then this Debenture shall bear interest from the next preceding
April 15 or October 15 to which interest has been paid or duly provided for, or,
if no interest has been paid or duly provided for on the Debentures since the
original issue date (as defined in such Indenture) of this Debenture, from the
original issue date hereof. The interest so payable on any April 15 or October
15 will, subject to certain exceptions provided in such Indenture, be paid to
the person in whose name this Debenture is registered at the close of business
on the April 1 or October 1, as the case may be, next preceding such April 15 or
October 15, whether or not such April 1 or October 1 is a business day, and may,
at the option of the Company, be paid by check mailed to the registered address
of such person.

Reference is made to the further provisions of this Debenture set forth on the
reverse hereof. Such further provisions shall for all purposes have the same
effect as though fully set forth at this place.

This Debenture shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been signed by or on behalf of
the Trustee under such Indenture.

                             ****[end of page 2]***

                                        2

<PAGE>

IN WITNESS WHEREOF, Masco Corporation has caused this instrument to be executed
in its corporate name by the manual or facsimile signature of its Chairman of
the Board or its President and imprinted with a manual or facsimile of its
corporate seal, attested by the manual or facsimile signature of its Secretary
or an Assistant Secretary.

Dated:    April 21, 1997

Masco Corporation

By /s/Richard A. Manoogian
      Chairman of the Board

Attest

By /s/John R. Leekley
      Assistant Secretary

CERTIFICATE OF AUTHENTICATION

This is one of the securities of the series designated therein referred to in
the within-mentioned indenture.

THE FIRST NATIONAL BANK OF CHICAGO,
                    AS TRUSTEE

BY________________________
AUTHORIZED OFFICER

                                        3

<PAGE>

                                REVERSE OF NOTES

     This Debenture is one of a duly authorized issue of debentures, notes,
bonds or other evidences of indebtedness of the Company (hereinafter called the
"Securities") of the series hereinafter specified, all issued or to be issued
under and pursuant to an indenture dated as of December 1, 1982 (herein called
the "Indenture"), duly executed and delivered by the Company to The First
National Bank of Chicago (as successor trustee to Morgan Guaranty Trust Company
of New York), Trustee (herein called the "Trustee"), to which Indenture and all
indentures supplemental thereto reference is hereby made for a description of
the rights, limitations of rights, obligations, duties and immunities thereunder
of the Trustee, the Company and holders of the Securities. The Securities may be
issued in one or more series, which different series may be issued in various
aggregate principal amounts, may mature at different times, may bear interest
(if any) at different rates, may be subject to different redemption provisions
(if any), may be subject to different sinking, purchase or analogous funds (if
any), may be subject to different covenants and Events of Default and may
otherwise vary as in the Indenture provided. This Debenture is one of a series
designated as the 6.625% Debentures Due April 15, 2018 of the Company, limited
in aggregate principal amount to $250,000,000.

     In case an Event of Default with respect to the 6.625% Debentures Due April
15, 2018 shall have occurred and be continuing, the principal hereof may be
declared, and upon such declaration shall become due and payable, in the manner,
with the effect and subject to the conditions provided in the Indenture.

    The Indenture contains provisions permitting the Company and the Trustee,
with the consent of the holders of not less than 66-2/3% in aggregate principal
amount of the Securities at the time outstanding of all series to be affected
(voting as a class), evidenced as in the Indenture provided, to execute
supplemental indentures adding any provisions to or changing in any manner or
eliminating any of the provisions of the Indenture or of any supplemental
indenture or modifying in any manner the rights of the holders of the Securities
of each such series; provided, however, that no such supplemental indenture
shall (i) extend the final maturity of any Security, or reduce the rate or
extend the time of payment of interest thereon, or reduce the principal amount
thereof or any premium thereon, or reduce any amount payable on redemption
thereof or make the principal thereof or any interest of premium thereon payable
in any coin or currency other than that hereinbefore provided, or impair or
affect the right of any holder to institute suit for payment thereof or the
right of repayment, if any, at the option of the holder, without the consent of
the holder of each Security so affected, or (ii) reduce the aforesaid principal
amount of Securities of all series to be affected, the holders of which are
required to consent to any such supplemental indenture, without the consent of
the holders of all Securities so affected then outstanding. It is also provided
in the Indenture that, with respect to certain defaults or Events of Default
regarding the Securities of any series, prior to any declaration accelerating
the maturity of such Securities, the holders of a majority in aggregate
principal amount of the Securities of such series at the time outstanding

                                        4
<PAGE>

  (or, in the case of certain defaults or Events of Default, all the Securities)
may on behalf of the holders of all of the Securities of such series (or all the
Securities, as the case may be) waive any such past default or Event of Default
under the Indenture and its consequences except a default in the payment of
principal of, premium, if any, or interest, if any, on any of the Securities.
Any such consent or waiver by the holder of this Debenture (unless revoked as
provided in the Indenture) shall be conclusive and binding upon such holder and
upon all future holders and owners of this Debenture and any Debentures which
may be issued in exchange or transfer hereof or in substitution herefor,
irrespective of whether or not any notation thereof is made upon this Debenture
or such other Debentures.

     No reference herein to the Indenture and no provision of this Debenture or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this
Debenture at the place, at the respective times, at the rate and in the coin or
currency herein prescribed.

     The Debentures are issuable in registered form without coupons in
denominations of $1,000 and any multiple of $1,000. Upon due presentment for
registration of transfer of this Debenture at the office or agency of the
Company for such registration in the Borough of Manhattan, The City of New York,
or any other location or locations as may be provided for pursuant to the
Indenture, a new Debenture or Debentures of authorized denominations for an
equal aggregate principal amount will be issued to the transferee in exchange
therefor, subject to the limitations provided in the Indenture, without charge
except for any tax or other governmental charge imposed in connection therewith.

     The Debentures may not be redeemed prior to maturity.

     The Debentures will be subject to defeasance and discharge and to
defeasance of certain obligations as set forth in the Indenture.

     The Company, the Trustee and any agent of the Company or the Trustee may
deem and treat the holder hereof as the absolute hereof (whether or not this
Debenture shall be overdue and notwithstanding any notation of ownership or
other writing hereon), for the purpose of receiving payment of or on account of
the principal hereof and, subject to the provisions on the face hereof, interest
hereon, and for all other purposes, and neither the Company nor the Trustee nor
any such agent shall be affected by any notice to the contrary. All payments
made to or upon the order of such holder shall, to the extent of the sum or sums
paid, effectually satisfy and discharge liability for moneys payable hereon.

     No recourse for the payment of the principal of, or premium, if any, or
interest on this Debenture, or for any claim based hereon or otherwise in
respect hereof, and no recourse under or upon any obligation, covenant or
agreement of the Company in the Indenture or any indenture supplemental thereto
or in any Debenture, or because of the creation of any indebtedness represented
thereby, shall

                                        5
<PAGE>

be had against any incorporator, stockholder, officer or director, as such,
past, present or future, of the Company or of any successor corporation, either
directly or through the Company or any successor corporation, whether by virtue
of any constitution, statute or rule of law or by the enforcement of any
assessment or penalty or otherwise, all such liability being, by the acceptance
hereof and as part of the consideration for the issue hereof, expressly waived
and released.

     All terms used in this Debenture which are defined in the Indenture shall
have the respective meanings ascribed to them therein.

     This Debenture shall be deemed to be a contract made under the laws of the
State of New York, and for all purposes shall be construed in accordance with
and governed by the laws of that State.

                              ***[end of page 6]***
The following abbreviations, where such abbreviations appear on this
certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship and not as tenants
in common UNIF
GIFT MIN ACT-..............Custodian..............

                   (Cust)                    (Minor)
                    under Uniform Gifts to Minors Act........................
                                                                         (State)
Additional abbreviations may also be used though not in the above list.

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
                                      unto

________________________________________________________________________________

PLEASE INSERT SOCIAL SECURITY OR OTHER
 IDENTIFYING NUMBER OF ASSIGNEE
_____________________________________________________

________________________________________________________________________________
             PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF ASSIGNEE

________________________________________________________________________________
      the within Debenture of MASCO CORPORATION and hereby does irrevocably
                             constitute and appoint

                                                         Attorney
 to transfer the said Debenture on the books of the within-named Company, with
                  full power of substitution in the premises.

Dated
     _______________        ____________________________________________________
                            NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST
                            CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF
                            THE CERTIFICATE IN EVERY PARTICULAR WITHOUT
                            ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.

                                        6
<PAGE>

                 Permanent Global Registered Fixed Rate Security

     THIS DEBENTURE IS A GLOBAL SECURITY AND IS REGISTERED IN THE NAME OF A
DEPOSITORY OR A NOMINEE THEREOF. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN
PART FOR NOTES IN CERTIFICATED FORM, THIS DEBENTURE MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
("DTC") TO A NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR
DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY. UNLESS THIS DEBENTURE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO MASCO CORPORATION OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY DEBENTURE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

                                MASCO CORPORATION
                       6.625% Debenture Due April 15, 2018

REGISTERED                                                  CUSIP No. 574599 AR7
No. R-2

Masco Corporation, a corporation duly organized and existing under the laws of
the State of Delaware (herein referred to as the "Company"), for value received,
hereby promises to pay to CEDE & CO. or registered assigns, at the office or
agency of the Company in the Borough of Manhattan, The City of New York, the
principal sum of FIFTY MILLION DOLLARS ($50,000,000) on April 15, 2018, in such
coin or currency of the United States of America as at the time of payment shall
be legal tender for the payment of public and private debts, and to pay
interest, semi-annually on April 15 and October 15 of each year, on said
principal sum at said office or agency, in like coin or currency, at the rate
per annum specified in the title of this Debenture, from the April 15 or October
15, as the case may be, next preceding the date of this Debenture to which
interest has been paid or duly provided for, unless the date hereof is a date to
which interest has been paid or duly provided for, in which case from the date
of this Debenture, or unless no Interest has been paid or duly provided for on
the Debentures since the original issue date (as defined in the Indenture
referred to on the reverse hereof) of this Debenture, in which case from the
original issue date, until payment of said principal sum has been made or duly
provided for. Notwithstanding the foregoing, if the date hereof is after April 1
or October 1, as the case may be, and before the following April 15 or October
15, this Debenture shall bear interest from such April 15 or October 15;
provided, however,

                                       1

<PAGE>

that if the Company shall default in the payment of interest on such April 15 or
October 15, then this Debenture shall bear interest from the next preceding
April 15 or October 15 to which interest has been paid or duly provided for, or,
if no interest has been paid or duly provided for on the Debentures since the
original issue date (as defined in such Indenture) of this Debenture, from the
original issue date hereof. The interest so payable on any April 15 or October
15 will, subject to certain exceptions provided in such Indenture, be paid to
the person in whose name this Debenture is registered at the close of business
on the April 1 or October 1, as the case may be, next preceding such April 15 or
October 15, whether or not such April 1 or October 1 is a business day, and may,
at the option of the Company, be paid by check mailed to the registered address
of such person.

Reference is made to the further provisions of this Debenture set forth on the
reverse hereof. Such further provisions shall for all purposes have the same
effect as though fully set forth at this place.

This Debenture shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been signed by or on behalf of
the Trustee under such Indenture.

                             ****[end of page 2]***

                                        2

<PAGE>

IN WITNESS WHEREOF, Masco Corporation has caused this instrument to be executed
in its corporate name by the manual or facsimile signature of its Chairman of
the Board or its President and imprinted with a manual or facsimile of its
corporate seal, attested by the manual or facsimile signature of its Secretary
or an Assistant Secretary.

Dated:    April 21, 1997

Masco Corporation

By/s/Richard A. Manoogian
     Chairman of the Board

Attest

By/s/John R. Leekley
     Assistant Secretary

CERTIFICATE OF AUTHENTICATION

This is one of the securities of the series designated therein referred to in
the within-mentioned indenture.

THE FIRST NATIONAL BANK OF CHICAGO,
                    AS TRUSTEE

BY________________________
AUTHORIZED OFFICER

                                        3

<PAGE>

                                REVERSE OF NOTES

     This Debenture is one of a duly authorized issue of debentures, notes,
bonds or other evidences of indebtedness of the Company (hereinafter called the
ASecurities@) of the series hereinafter specified, all issued or to be issued
under and pursuant to an indenture dated as of December 1, 1982 (herein called
the "Indenture"), duly executed and delivered by the Company to The First
National Bank of Chicago (as successor trustee to Morgan Guaranty Trust Company
of New York), Trustee (herein called the "Trustee"), to which Indenture and all
indentures supplemental thereto reference is hereby made for a description of
the rights, limitations of rights, obligations, duties and immunities thereunder
of the Trustee, the Company and holders of the Securities. The Securities may be
issued in one or more series, which different series may be issued in various
aggregate principal amounts, may mature at different times, may bear interest
(if any) at different rates, may be subject to different redemption provisions
(if any), may be subject to different sinking, purchase or analogous funds (if
any), may be subject to different covenants and Events of Default and may
otherwise vary as in the Indenture provided. This Debenture is one of a series
designated as the 6.625% Debentures Due April 15, 2018 of the Company, limited
in aggregate principal amount to $250,000,000.

     In case an Event of Default with respect to the 6.625% Debentures Due April
15, 2018 shall have occurred and be continuing, the principal hereof may be
declared, and upon such declaration shall become due and payable, in the manner,
with the effect and subject to the conditions provided in the Indenture.

     The Indenture contains provisions permitting the Company and the Trustee,
with the consent of the holders of not less than 66 2/3% in aggregate principal
amount of the Securities at the time outstanding of all series to be affected
(voting as a class), evidenced as in the Indenture provided, to execute
supplemental indentures adding any provisions to or changing in any manner or
eliminating any of the provisions of the Indenture or of any supplemental
indenture or modifying in any manner the rights of the holders of the Securities
of each such series; provided, however, that no such supplemental indenture
shall (i) extend the final maturity of any Security, or reduce the rate or
extend the time of payment of interest thereon, or reduce the principal amount
thereof or any premium thereon, or reduce any amount payable on redemption
thereof or make the principal thereof or any interest of premium thereon payable
in any coin or currency other than that hereinbefore provided, or impair or
affect the right of any holder to institute suit for payment thereof or the
right of repayment, if any, at the option of the holder, without the consent of
the holder of each Security so affected, or (ii) reduce the aforesaid principal
amount of Securities of all series to be affected, the holders of which are
required to consent to any such supplemental indenture, without the consent of
the holders of all Securities so affected then outstanding. It is also provided
in the Indenture that, with respect to certain defaults or Events of Default
regarding the Securities of any series, prior to any declaration accelerating
the maturity of such Securities, the holders of a majority in aggregate
principal amount of the Securities of such series at the time outstanding

                                        4
<PAGE>

(or, in the case of certain defaults or Events of Default, all the Securities)
may on behalf of the holders of all of the Securities of such series (or all the
Securities, as the case may be) waive any such past default or Event of Default
under the Indenture and its consequences except a default in the payment of
principal of, premium, if any, or interest, if any, on any of the Securities.
Any such consent or waiver by the holder of this Debenture (unless revoked as
provided in the Indenture) shall be conclusive and binding upon such holder and
upon all future holders and owners of this Debenture and any Debentures which
may be issued in exchange or transfer hereof or in substitution herefor,
irrespective of whether or not any notation thereof is made upon this Debenture
or such other Debentures.

     No reference herein to the Indenture and no provision of this Debenture or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this
Debenture at the place, at the respective times, at the rate and in the coin or
currency herein prescribed.

     The Debentures are issuable in registered form without coupons in
denominations of $1,000 and any multiple of $1,000. Upon due presentment for
registration of transfer of this Debenture at the office or agency of the
Company for such registration in the Borough of Manhattan, The City of New York,
or any other location or locations as may be provided for pursuant to the
Indenture, a new Debenture or Debentures of authorized denominations for an
equal aggregate principal amount will be issued to the transferee in exchange
therefor, subject to the limitations provided in the Indenture, without charge
except for any tax or other governmental charge imposed in connection therewith.

     The Debentures may not be redeemed prior to maturity.

     The Debentures will be subject to defeasance and discharge and to
defeasance of certain obligations as set forth in the Indenture.

     The Company, the Trustee and any agent of the Company or the Trustee may
deem and treat the holder hereof as the absolute hereof (whether or not this
Debenture shall be overdue and notwithstanding any notation of ownership or
other writing hereon), for the purpose of receiving payment of or on account of
the principal hereof and, subject to the provisions on the face hereof, interest
hereon, and for all other purposes, and neither the Company nor the Trustee nor
any such agent shall be affected by any notice to the contrary. All payments
made to or upon the order of such holder shall, to the extent of the sum or sums
paid, effectually satisfy and discharge liability for moneys payable hereon.

     No recourse for the payment of the principal of, or premium, if any, or
interest on this Debenture, or for any claim based hereon or otherwise in
respect hereof, and no recourse under or upon any obligation, covenant or
agreement of the Company in the Indenture or any indenture supplemental thereto
or in any Debenture, or because of the creation of any indebtedness represented
thereby, shall

                                        5
<PAGE>

be had against any incorporator, stockholder, officer or director, as such,
past, present or future, of the Company or of any successor corporation, either
directly or through the Company or any successor corporation, whether by virtue
of any constitution, statute or rule of law or by the enforcement of any
assessment or penalty or otherwise, all such liability being, by the acceptance
hereof and as part of the consideration for the issue hereof, expressly waived
and released.

     All terms used in this Debenture which are defined in the Indenture shall
have the respective meanings ascribed to them therein.

     This Debenture shall be deemed to be a contract made under the laws of the
State of New York, and for all purposes shall be construed in accordance with
and governed by the laws of that State.

                              ***[end of page 6]***

                                        6

<PAGE>

The following abbreviations, where such abbreviations appear on this
certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship and not as tenants
in common
UNIF GIFT MIN ACT-..............Custodian..............

                   (Cust)                    (Minor)
                  under Uniform Gifts to Minors Act............................
                                                                         (State)
Additional abbreviations may also be used though not in the above list.

            FOR VALUE RECEIVED, the undersigned hereby sells, assigns
                               and transfers unto

PLEASE INSERT SOCIAL SECURITY OR OTHER
  IDENTIFYING NUMBER OF ASSIGNEE

________________________________________________________________________________
   PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF ASSIGNEE

________________________________________________________________________________
      the within Debenture of MASCO CORPORATION and hereby does irrevocably
                             constitute and appoint

                                                                 Attorney
to transfer the said Debenture on the books of the within named Company, with
full power of substitution in the premises.

Dated
     ___________________    ____________________________________________________
                            NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST
                            CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF
                            THE CERTIFICATE IN EVERY PARTICULAR WITHOUT
                            ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.

                                       7
<PAGE>

                                   RESOLUTIONS
                                     OF THE
                                PRICING COMMITTEE
                                     OF THE
                               BOARD OF DIRECTORS
                              OF MASCO CORPORATION
                                 October 6, 1998

     WHEREAS, Masco Corporation, a Delaware corporation (the "Company") the
Company has filed a Registration Statement (No. 33-56043) on Form S-3 with the
Securities and Exchange Commission, which is in effect;

     WHEREAS, the Company desires to create an additional series of securities
under the Indenture dated as of December 1, 1982 (as amended to the date hereof,
the "Indenture"), with The First National Bank of Chicago, as successor trustee
to Morgan Guaranty Trust Company of New York (the "Trustee"), providing for the
issuance from time to time of unsecured debentures, notes or other evidences of
indebtedness of this Company ("Securities") in one or more series under such
Indenture; and

     WHEREAS, capitalized terms used in these resolutions and not otherwise
defined are used with the same meaning ascribed to such terms in the Indenture;

     THEREFORE RESOLVED, that there is established a series of Securities under
the Indenture, the terms of which shall be as follows:

          1. The Securities of such series shall be designated as the "5.75%
     Notes Due 2008".

          2. The aggregate principal amount of Securities of such series which
     may be authenticated and delivered under the Indenture is limited to One
     Hundred Million Dollars ($100,000,000), except for Securities of such
     series authenticated and delivered upon registration of, transfer of, or in
     exchange for, or in lieu of, other Securities of such series pursuant to
     Sections 2.07, 2.08, 2.09, 9.04 or 14.03 of the Indenture.

          3. The date on which the principal of the Securities of such series
     shall be payable is October 15, 2008.

          4. The Securities of such series shall bear interest from October 9,
     1998, at the rate of 5.75% per annum, payable semi-annually on April 15 and
     October 15 of each year commencing on April 15, 1999, until the principal
     thereof is paid or made available for payment. The April 1 or October 1
     (whether or not a business day), as the case may be, next preceding

<PAGE>
     each such interest payment date shall be the "record date" for the
     determination of holders to whom interest is payable.

          5. The Securities shall be issued initially in the form of one or more
     global securities registered in the name of Cede & Co., as nominee of The
     Depository Trust Company ("DTC"), and will be held by the Trustee as
     custodian for DTC. The Securities shall be subject to the procedures of DTC
     described in the Company's prospectus supplement dated October 6, 1998
     relating to the Securities and, except as described in such prospectus
     supplement, will not be issued in definitive registered form.

          6. The principal of and interest on the Securities of such series
     shall be payable at the office or agency of this Company maintained for
     such purpose under Section 3.02 of the Indenture in the Borough of
     Manhattan, the City of New York, or at any other office or agency
     designated by the Company, for such purpose pursuant to the Indenture;
     provided, however, that if Securities in definitive registered form are
     issued, then at the option of the Company payment of interest may be made
     by check mailed to the address of the person entitled thereto as such
     address shall appear on the Company's registry books.

          7. The Securities of such series shall not be redeemable prior to
     maturity.

          8. The Securities of such series shall be issuable in denominations of
     One Thousand Dollars ($1,000) and any integral multiples thereof.

          9. The Securities shall be issuable at a price such that this Company
     shall receive $99,350,000 after an underwriting discount of $650,000.

          10. The Securities shall be subject to defeasance and discharge and to
     defeasance of certain obligations as set forth in the Indenture.

     FURTHER RESOLVED, that the Securities of such series are declared to be
issued under the Indenture and subject to the provisions hereof;

     FURTHER RESOLVED, that the Chairman of the Board, the President or any Vice
President of the Company is authorized to execute, on the Company's behalf and
in its name, and the Secretary or any Assistant Secretary of the Company is
authorized to attest to such execution and under the Company's seal (which may
be in the form of a facsimile of the Company's seal), $100,000,000 aggregate
principal amount of the Securities of such series (and in addition Securities to
replace lost, stolen, mutilated or destroyed Securities and Securities required
for exchange,

                                        2
<PAGE>

substitution or transfer, all as provided in the Indenture) in fully registered
form in substantially the form of the note filed as an exhibit to the Company's
Registration Statement on Form S-3 (No. 33-56043), but with such changes and
insertions therein as are appropriate to conform the Securities to the terms set
forth herein or otherwise as the respective officers executing the Securities
shall approve and as are not inconsistent with these resolutions, such approval
to be conclusively evidenced by such officer's execution and delivery of such
Securities, and to deliver such Securities to the Trustee for authentication,
and the Trustee is authorized and directed thereupon to authenticate and deliver
the same to or upon the written order of this Company as provided in the
Indenture;

     FURTHER RESOLVED, that the signatures of the Company officers so authorized
to execute the Securities of such series may be the manual or facsimile
signatures of the present or any future authorized officers and may be imprinted
or otherwise reproduced thereon, and the Company for such purpose adopts each
facsimile signature as binding upon it notwithstanding the fact that at the time
the respective Securities shall be authenticated and delivered or disposed of,
the individual so signing shall have ceased to hold such office;

     FURTHER RESOLVED, that Merrill Lynch, Pierce, Fenner & Smith Incorporated
and Salomon Smith Barney Inc. are appointed as the underwriters for the issuance
and sale of the Securities of such series, and the Chairman of the Board, the
President or any Vice President of the Company is authorized, in the Company's
name and on its behalf, to execute and deliver an Underwriting Agreement,
substantially in the form heretofore approved by the Company's Board of
Directors, with such underwriters, with such changes and insertions therein as
are appropriate to conform such Underwriting Agreement to the terms set forth
herein or otherwise as the officer executing such Underwriting Agreement shall
approve and as are not inconsistent with these resolutions, such approval to be
conclusively evidenced by such officer's execution and delivery of the
Underwriting Agreement;

     FURTHER RESOLVED, that The First National Bank of Chicago, the Trustee
under the Indenture, is appointed trustee for Securities of such series, and as
Agent of this Company for the purpose of effecting the registration, transfer
and exchange of the Securities of such series as provided in the Indenture, and
the corporate trust office of The First National Bank of Chicago in the Borough
of Manhattan, The City of New York is designated pursuant to the Indenture as
the office or agency of the Company where such Securities may be presented for
registration, transfer and exchange and where notices and demands to or upon
this Company in respect of the Securities and the Indenture may be served;

     FURTHER RESOLVED, that The First National Bank of Chicago is appointed
Paying Agent of this Company for the payment of interest on and principal of the
Securities of such series, and the corporate trust office of The First National

                                        3
<PAGE>

Bank of Chicago, is designated, pursuant to the Indenture, as the office or
agency of the Company where Securities may be presented for payment; and

     FURTHER RESOLVED, that each of the Company's officers is authorized and
directed, on behalf of the Company and in its name, to do or cause to be done
everything such officer deems advisable to effect the sale and delivery of the
Securities of such series pursuant to the Underwriting Agreement and otherwise
to carry out the Company's obligations under the Underwriting Agreement, and to
do or cause to be done everything and to execute and deliver all documents as
such officer deems advisable in connection with the execution and delivery of
the Underwriting Agreement and the execution, authentication and delivery of
such Securities (including, without limiting the generality of the foregoing,
delivery to the Trustee of the Securities for authentication and of requests or
orders for the authentication and delivery of Securities).

                              4
<PAGE>

                 Permanent Global Registered Fixed Rate Security

     THIS NOTE IS A GLOBAL SECURITY AND IS REGISTERED IN THE NAME OF A
DEPOSITORY OR A NOMINEE THEREOF. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN
PART FOR NOTES IN CERTIFICATED FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS
A WHOLE BY THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC") TO A
NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A
NOMINEE OF SUCH SUCCESSOR DEPOSITORY. UNLESS THIS NOTE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC TO MASCO CORPORATION OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

                                MASCO CORPORATION
                               5.75% Note Due 2008

REGISTERED                                                  CUSIP No. 574599AS5
No. R-1

Masco Corporation, a corporation duly organized and existing under the laws of
the State of Delaware (herein referred to as the "Company"), for value received,
hereby promises to pay to CEDE & CO. or registered assigns, at the office or
agency of the Company in the Borough of Manhattan, The City of New York, the
principal sum of ONE HUNDRED MILLION DOLLARS ($100,000,000) on October 15, 2008,
in such coin or currency of the United States of America as at the time of
payment shall be legal tender for the payment of public and private debts, and
to pay interest, semi-annually on April 15 and October 15 of each year, on said
principal sum at said office or agency, in like coin or currency, at the rate
per annum specified in the title of this Note, from the April 15 or October 15,
as the case may be, next preceding the date of this Note to which interest has
been paid or duly provided for, unless the date hereof is a date to which
interest has been paid or duly provided for, in which case from the date of this
Note, or unless no Interest has been paid or duly provided for on the Notes
since the original issue date (as defined in the Indenture referred to on the
reverse hereof) of this Note, in which case from the original issue date, until
payment of said principal sum has been made or duly provided for.
Notwithstanding the foregoing, if the date hereof is after April 1 or October 1,
as the case may be, and

                                        1
<PAGE>

before the following April 15 or October 15, this Note shall bear interest from
such April 15 or October 15; provided, however, that if the Company shall
default in the payment of interest on such April 15 or October 15, then this
Notes shall bear interest from the next preceding April 15 or October 15 to
which interest has been paid or duly provided for, or, if no interest has been
paid or duly provided for on the Notes since the original issue date (as defined
in such Indenture) of this Note, from the original issue date hereof. The
interest so payable on any April 15 or October 15 will, subject to certain
exceptions provided in such Indenture, be paid to the person in whose name this
Note is registered at the close of business on the April 1 or October 1, as the
case may be, next preceding such April 15 or October 15, whether or not such
April 1 or October 1 is a business day, and may, at the option of the Company,
be paid by check mailed to the registered address of such person.

Reference is made to the further provisions of this Note set forth on the
reverse hereof. Such further provisions shall for all purposes have the same
effect as though fully set forth at this place.

This Note shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been signed by or on behalf of
the Trustee under such Indenture.

                                        2
<PAGE>

IN WITNESS WHEREOF, Masco Corporation has caused this instrument to be executed
in its corporate name by the manual or facsimile signature of its Chairman of
the Board or its President and imprinted with a manual or facsimile of its
corporate seal, attested by the manual or facsimile signature of its Secretary
or an Assistant Secretary.

Dated:    October 9, 1998

Masco Corporation

By /s/Richard A. Manoogian
   -----------------------
      Chairman of the Board

Attest

By  /s/Richard G. Mosteller
    -----------------------
       Assistant Secretary

CERTIFICATE OF AUTHENTICATION

This is one of the securities of the series designated therein referred to in
the within-mentioned indenture.

THE FIRST NATIONAL BANK OF CHICAGO,
                    AS TRUSTEE

BY
  ---------------------
     AUTHORIZED OFFICER

                                        3
<PAGE>
                                REVERSE OF NOTES

     This Note is one of a duly authorized issue of debentures, notes, bonds or
other evidences of indebtedness of the Company (hereinafter called the
"Securities") of the series hereinafter specified, all issued or to be issued
under and pursuant to an indenture dated as of December 1, 1982 (herein called
the "Indenture"), duly executed and delivered by the Company to The First
National Bank of Chicago (as successor trustee to Morgan Guaranty Trust Company
of New York), Trustee (herein called the "Trustee"), to which Indenture and all
indentures supplemental thereto reference is hereby made for a description of
the rights, limitations of rights, obligations, duties and immunities thereunder
of the Trustee, the Company and holders of the Securities. The Securities may be
issued in one or more series, which different series may be issued in various
aggregate principal amounts, may mature at different times, may bear interest
(if any) at different rates, may be subject to different redemption provisions
(if any), may be subject to different sinking, purchase or analogous funds (if
any), may be subject to different covenants and Events of Default and may
otherwise vary as in the Indenture provided. This Note is one of a series
designated as the 5.75% Notes Due 2008 of the Company, limited in aggregate
principal amount to $100,000,000.

     In case an Event of Default with respect to the 5.75% Notes Due 2008 shall
have occurred and be continuing, the principal hereof may be declared, and upon
such declaration shall become due and payable, in the manner, with the effect
and subject to the conditions provided in the Indenture.

     The Indenture contains provisions permitting the Company and the Trustee,
with the consent of the holders of not less than 66-2/3% in aggregate principal
amount of the Securities at the time outstanding of all series to be affected
(voting as a class), evidenced as in the Indenture provided, to execute
supplemental indentures adding any provisions to or changing in any manner or
eliminating any of the provisions of the Indenture or of any supplemental
indenture or modifying in any manner the rights of the holders of the Securities
of each such series; provided, however, that no such supplemental indenture
shall (i) extend the final maturity of any Security, or reduce the rate or
extend the time of payment of interest thereon, or reduce the principal amount
thereof or any premium thereon, or reduce any amount payable on redemption
thereof or make the principal thereof or any interest of premium thereon payable
in any coin or currency other than that hereinbefore provided, or impair or
affect the right of any holder to institute suit for payment thereof or the
right of repayment, if any, at the option of the holder, without the consent of
the holder of each Security so affected, or (ii) reduce the aforesaid principal
amount of Securities of all series to be affected, the holders of which are
required to consent to any such supplemental indenture, without the consent of
the holders of all Securities so affected then outstanding. It is also provided
in the Indenture that, with respect to certain defaults or Events of Default
regarding the Securities of any series, prior to any declaration accelerating
the maturity of such Securities, the holders of a majority in

                                        4
<PAGE>

aggregate principal amount of the Securities of such series at the time
outstanding (or, in the case of certain defaults or Events of Default, all the
Securities) may on behalf of the holders of all of the Securities of such series
(or all the Securities, as the case may be) waive any such past default or Event
of Default under the Indenture and its consequences except a default in the
payment of principal of, premium, if any, or interest, if any, on any of the
Securities. Any such consent or waiver by the holder of this Note (unless
revoked as provided in the Indenture) shall be conclusive and binding upon such
holder and upon all future holders and owners of this Note and any Notes which
may be issued in exchange or transfer hereof or in substitution herefor,
irrespective of whether or not any notation thereof is made upon this Note or
such other Notes.

     No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the place, at the respective times, at the rate and in the coin or currency
herein prescribed.

     The Notes are issuable in registered form without coupons in denominations
of $1,000 and any multiple of $1,000. Upon due presentment for registration of
transfer of this Note at the office or agency of the Company for such
registration in the Borough of Manhattan, The City of New York, or any other
location or locations as may be provided for pursuant to the Indenture, a new
Note or Notes of authorized denominations for an equal aggregate principal
amount will be issued to the transferee in exchange therefor, subject to the
limitations provided in the Indenture, without charge except for any tax or
other governmental charge imposed in connection therewith.

     The Notes may not be redeemed prior to maturity.

     The Notes will be subject to defeasance and discharge and to defeasance of
certain obligations as set forth in the Indenture.

     The Company, the Trustee and any agent of the Company or the Trustee may
deem and treat the holder hereof as the absolute hereof (whether or not this
Note shall be overdue and notwithstanding any notation of ownership or other
writing hereon), for the purpose of receiving payment of or on account of the
principal hereof and, subject to the provisions on the face hereof, interest
hereon, and for all other purposes, and neither the Company nor the Trustee nor
any such agent shall be affected by any notice to the contrary. All payments
made to or upon the order of such holder shall, to the extent of the sum or sums
paid, effectually satisfy and discharge liability for moneys payable hereon.

     No recourse for the payment of the principal of, or premium, if any, or
interest on this Note, or for any claim based hereon or otherwise in respect
hereof, and no recourse under or upon any obligation, covenant or agreement of
the Company in the

                                        5
<PAGE>

Indenture or any indenture supplemental thereto or in any Note, or because of
the creation of any indebtedness represented thereby, shall be had against any
incorporator, stockholder, officer or director, as such, past, present or
future, of the Company or of any successor corporation, either directly or
through the Company or any successor corporation, whether by virtue of any
constitution, statute or rule of law or by the enforcement of any assessment or
penalty or otherwise, all such liability being, by the acceptance hereof and as
part of the consideration for the issue hereof, expressly waived and released.

     All terms used in this Note which are defined in the Indenture shall have
the respective meanings ascribed to them therein.

     This Note shall be deemed to be a contract made under the laws of the State
of New York, and for all purposes shall be construed in accordance with and
governed by the laws of that State.

                                6

<PAGE>

The following abbreviations, where such abbreviations appear on this
certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship and not as tenants
in common
UNIF GIFT MIN ACT-..............Custodian..............

                  (Cust)                    (Minor)
                  under Uniform Gifts to Minors Act.........................
                                                         (State)
Additional abbreviations may also be used though not in the above list.

            FOR VALUE RECEIVED, the undersigned hereby sells, assigns
                               and transfers unto

PLEASE INSERT SOCIAL SECURITY OR OTHER
 IDENTIFYING NUMBER OF ASSIGNEE
____________________________________

________________________________________________________________________________
             PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF ASSIGNEE

________________________________________________________________________________
        the within Note of MASCO CORPORATION and hereby does irrevocably
                             constitute and appoint

                                                                        Attorney
________________________________________________________________________
  to transfer the said Note on the books of the within-named Company, with full
                     power of substitution in the premises.

Dated
     ___________________    ____________________________________________________
                            NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST
                            CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF
                            THE CERTIFICATE IN EVERY PARTICULAR WITHOUT
                            ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.

                                       7<PAGE>

                                                                     EXHIBIT 4.d

                                                                  EXECUTION COPY

                                 US $750,000,000

                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT
                          DATED AS OF NOVEMBER 7, 2003

                                      AMONG

                              MASCO CORPORATION AND
                             MASCO EUROPE S.A.R.L.,
                                  AS BORROWERS

                             THE BANKS PARTY HERETO

                                      AND

                                 CITIBANK, N.A.,
                              AS SYNDICATION AGENT

                                      AND

                      COMMERZBANK AG, BARCLAYS BANK PLC AND
                          KEYBANK NATIONAL ASSOCIATION,
                             AS DOCUMENTATION AGENTS

                      BANK ONE, NA (MAIN OFFICE - CHICAGO),
                             AS ADMINISTRATIVE AGENT

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

        BANC ONE CAPITAL MARKETS, INC.      CITIGROUP GLOBAL MARKETS INC.
                              Joint Lead Arrangers

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

                         SIDLEY AUSTIN BROWN & WOOD LLP
                                 Bank One Plaza
                            10 South Dearborn Street
                             Chicago, Illinois 60603
--------------------------------------------------------------------------------

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                Page
                                                                                                                ----
<S>                                                                                                             <C>
ARTICLE I: DEFINITIONS ......................................................................................     1
     SECTION 1.01.   Definitions ............................................................................     1
     SECTION 1.02.   Accounting Terms and Determinations ....................................................    11
     SECTION 1.03.   Types of Borrowings ....................................................................    12
     SECTION 1.04.   Amendment and Restatement ..............................................................    12

ARTICLE II: THE CREDITS .....................................................................................    12
     SECTION 2.01.   Borrowings .............................................................................    12
     SECTION 2.02.   Notice of Borrowing ....................................................................    13
     SECTION 2.03.   Notice to Banks; Funding of Loans ......................................................    13
     SECTION 2.04.   Noteless Agreement; Evidence of Indebtedness ...........................................    15
     SECTION 2.05.   Maturity of Loans ......................................................................    15
     SECTION 2.06.   Interest Rates .........................................................................    15
     SECTION 2.07.   Facility Fees and Utilization Fees .....................................................    16
     SECTION 2.08.   Optional Termination or Reduction of Commitments;
        Conversion to Term Loan .............................................................................    17
     SECTION 2.09.   Mandatory Termination of Commitments ...................................................    18
     SECTION 2.10.   Prepayments ............................................................................    18
     SECTION 2.11.   General Provisions as to Payments ......................................................    18
     SECTION 2.12.   Funding Losses .........................................................................    19
     SECTION 2.13.   Computation of Interest and Fees .......................................................    20
     SECTION 2.14.   Withholding Tax Exemption ..............................................................    20
     SECTION 2.15.   Lending Installations ..................................................................    20

ARTICLE III: CONDITIONS .....................................................................................    21
     SECTION 3.01.   Effectiveness of the Original Credit Agreement .........................................    21
     SECTION 3.02.   Effectiveness of this Agreement ........................................................    21
     SECTION 3.03.   All Borrowings .........................................................................    22

ARTICLE IV: REPRESENTATIONS AND WARRANTIES ..................................................................    22
     SECTION 4.01.   Corporate Existence and Power ..........................................................    22
     SECTION 4.02.   Corporate and Governmental Authorization; No
        Contravention; Filing; No Immunity ..................................................................    23
     SECTION 4.03.   Binding Effect .........................................................................    23
     SECTION 4.04.   Financial Information ..................................................................    24
     SECTION 4.05.   Litigation .............................................................................    24
     SECTION 4.06.   Compliance with ERISA ..................................................................    24
     SECTION 4.07.   Environmental Matters ..................................................................    25
     SECTION 4.08.   Taxes ..................................................................................    25
     SECTION 4.09.   Not an Investment Company ..............................................................    25
     SECTION 4.10.   Compliance with Laws ...................................................................    25
     SECTION 4.11.   Foreign Employee Benefit Matters .......................................................    25

ARTICLE V: COVENANTS ........................................................................................    26
     SECTION 5.01.   Information ............................................................................    26
</TABLE>

                                                  SIDLEY AUSTIN BROWN & WOOD LLP

                                       i
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
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                                                                                                                ----
<S>                                                                                                             <C>
     SECTION 5.02.   Financial Covenants ....................................................................    28
     SECTION 5.03.   Limitations on Debt. ...................................................................    29
     SECTION 5.04.   Negative Pledge ........................................................................    30
     SECTION 5.05.   Consolidations, Mergers and Sale of Assets .............................................    31
     SECTION 5.06.   Compliance with Laws ...................................................................    31
     SECTION 5.07.   Use of Proceeds ........................................................................    32
     SECTION 5.08.   Insurance ..............................................................................    32
     SECTION 5.09.   Inspection .............................................................................    32

ARTICLE VI: DEFAULTS ........................................................................................    32
     SECTION 6.01.   Events of Default ......................................................................    32
     SECTION 6.02.   Notice of Default ......................................................................    35

ARTICLE VII: THE AGENT ......................................................................................    35
     SECTION 7.01.   Appointment and Authorization ..........................................................    35
     SECTION 7.02.   Agent and Affiliates ...................................................................    35
     SECTION 7.03.   Action by Agent ........................................................................    35
     SECTION 7.04.   Consultation with Experts ..............................................................    35
     SECTION 7.05.   Liability of Agent .....................................................................    35
     SECTION 7.06.   Indemnification ........................................................................    36
     SECTION 7.07.   Credit Decision ........................................................................    36
     SECTION 7.08.   Successor Agent ........................................................................    36
     SECTION 7.09.   Agent's and Arrangers' Fees ............................................................    36
     SECTION 7.10.   Agent, Arrangers, Documentation Agents, Syndication Agent,
        Senior Managing Agents, Co-Agent ....................................................................    36

ARTICLE VIII: CHANGE IN CIRCUMSTANCES .......................................................................    36
     SECTION 8.01.   Basis for Determining Interest Rate Inadequate or Unfair ...............................    36
     SECTION 8.02.   Illegality .............................................................................    37
     SECTION 8.03.   Increased Cost and Reduced Return ......................................................    37
     SECTION 8.04.   Substitute Loans .......................................................................    39
     SECTION 8.05.   Substitution of Bank ...................................................................    40

ARTICLE IX: MISCELLANEOUS ...................................................................................    40
     SECTION 9.01.   Notices ................................................................................    40
     SECTION 9.02.   No Waivers .............................................................................    40
     SECTION 9.03.   Expenses; Documentary Taxes; Indemnification ...........................................    41
     SECTION 9.04.   Sharing of Set-Offs ....................................................................    41
     SECTION 9.05.   Amendments and Waivers .................................................................    42
     SECTION 9.06.   Successors and Assigns .................................................................    42
     SECTION 9.07.   Collateral .............................................................................    45
     SECTION 9.08.   Confidentiality ........................................................................    45
     SECTION 9.09.   Severalty of Obligations ...............................................................    46
     SECTION 9.10.   Illinois Law; Submission to Jurisdiction ...............................................    46
     SECTION 9.11.   Counterparts; Integration ..............................................................    46
     SECTION 9.12.   WAIVER OF JURY TRIAL; SERVICE OF PROCESS. ..............................................    46
</TABLE>

                                                  SIDLEY AUSTIN BROWN & WOOD LLP

                                       ii
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                Page
                                                                                                                ----
<S>                                                                                                             <C>
     SECTION 9.13.   USA Patriot Act Notification ...........................................................    46

ARTICLE X: GUARANTY  ........................................................................................    47
     SECTION 10.01.  Guarantee of Obligations ...............................................................    47
     SECTION 10.02.  Nature of Guaranty .....................................................................    48
     SECTION 10.03.  Waivers and Other Agreements ...........................................................    48
     SECTION 10.04.  Obligations Absolute ...................................................................    48
     SECTION 10.05.  No Investigation by Banks or Agent .....................................................    49
     SECTION 10.06.  Indemnity ..............................................................................    49
     SECTION 10.07.  Subordination, Subrogation, Reinstatement, Etc .........................................    49
</TABLE>

EXHIBITS

Exhibit A       -      Form of Note

Exhibit B- 1    -      Form of Opinion of Counsel for the Company

Exhibit B-2     -      Form of Opinion of Counsel for Masco Europe

Exhibit C       -      Form of Assignment and Assumption Agreement

Exhibit D       -      Form of Notice of Borrowing

Exhibit E       -      Form of Designation Agreement

                                    SCHEDULES

Commitment Schedule

Pricing Schedule

                                                  SIDLEY AUSTIN BROWN & WOOD LLP

                                       iii
<PAGE>

             AMENDED AND RESTATED 364-DAY REVOLVING CREDIT AGREEMENT

                  This AMENDED AND RESTATED 364-DAY REVOLVING CREDIT AGREEMENT
dated as of November 7, 2003 is entered into among MASCO CORPORATION and MASCO
EUROPE S.A.R.L., as borrowers, the BANKS party hereto as lenders, CITIBANK,
N.A., as Syndication Agent, COMMERZBANK AG, BARCLAYS BANK PLC and KEYBANK
NATIONAL ASSOCIATION, as Documentation Agents, and BANK ONE, NA (Main Office
-Chicago), as administrative agent. The parties hereto agree as follows:

                             ARTICLE I: DEFINITIONS

                  SECTION 1.01. Definitions. The following terms, as used
herein, have the following meanings:

                  "ACQUIRED DEBT" means, with respect to any Person which
previously became or hereafter becomes a Subsidiary, Debt of such Person which
was outstanding before such Person became a Subsidiary and which was not created
in contemplation of such Person becoming a Subsidiary; provided that such Debt
shall no longer constitute "Acquired Debt" at any time that is more than six
months after such Person becomes a Subsidiary.

                  "ADMINISTRATIVE QUESTIONNAIRE" means, with respect to each
Bank, an administrative questionnaire in the form prepared by the Agent and
submitted to the Agent (with a copy to the Company) duly completed by such Bank.

                  "AFFECTED BANK" has the meaning set forth in Section 8.05.

                  "AFFILIATE" means at any date a Person (other than a
Consolidated Subsidiary) whose earnings or losses (or the appropriate
proportionate share thereof) would be included in determining the Consolidated
Net Income of the Company and its Consolidated Subsidiaries for a period ending
on such date under the equity method of accounting for investments in common
stock (and certain other investments).

                  "AGENT" means Bank One, NA in its capacity as administrative
agent for the Banks hereunder, and its successors in such capacity.

                  "AGGREGATE COMMITMENT" means the aggregate of the Commitments
of all the Banks, as reduced from time to time pursuant to the terms hereof.

                  "AGREEMENT" when used with reference to this Agreement, means
this Amended and Restated 364-Day Revolving Credit Agreement dated as of
November 7, 2003, as amended, modified, supplemented or restated from time to
time after the date hereof.

                  "APPLICABLE LENDING OFFICE" means, with respect to any Bank,
(i) in the case of its Floating Rate Loans, its Domestic Lending Office and (ii)
in the case of its Eurodollar Loans, its Eurodollar Lending Office.

                                                  SIDLEY AUSTIN BROWN & WOOD LLP

                                       1
<PAGE>

                  "APPLICABLE MARGIN" means with respect to any Eurodollar Loan,
Floating Rate Loan or the facility fees payable under Section 2.07, as the case
may be at any time, the percentage which is applicable at such time as set forth
in the Pricing Schedule.

                  "ARRANGERS" means Bane One Capital Markets, Inc. and Citigroup
Global Markets Inc.

                  "ASSIGNEE" has the meaning set forth in Section 9.06(C).

                  "BANK" means each bank listed on the signature pages hereof,
each Assignee which becomes a Bank pursuant to Section 9.06(C), and their
respective successors.

                  "BANK ONE" means Bank One, NA (Main Office Chicago), a
national banking association.

                  "BENEFIT ARRANGEMENT" means at any time an employee benefit
plan within the meaning of Section 3(3) of ERISA which is not a Plan or a
Multiemployer Plan and which is maintained or otherwise contributed to by any
member of the ERISA Group.

                  "BORROWERS" means the Company and Masco Europe, and "Borrower"
means each of them, as the context may require.

                  "BORROWING" has the meaning set forth in Section 1.03.

                  "CHANGE IN LAW" has the meaning set forth in Section 8.03(A).

                  "CLOSING DATE" means November 7, 2003.

                  "CO-AGENT" means Royal Bank of Canada.

                  "COMMITMENT" means (i) with respect to any Bank listed on the
Commitment Schedule, the amount set forth opposite the name of such Bank on the
Commitment Schedule, or (ii) with respect to any Assignee, the amount of the
transferor Bank's Commitment assigned to such Assignee pursuant to Section
9.06(C), in each case as such amount may be reduced from time to time pursuant
to Section 2.08 or 2.09 or changed as a result of an assignment pursuant to
Section 9.06(C).

                  "COMMITMENT PERCENTAGE" means at any date of determination,
with respect to any Bank, that percentage which the Commitment of such Bank then
constitutes of the Aggregate Commitment or, if the Commitments have expired or
been terminated, that percentage which the Commitment of such Bank constituted
of the Aggregate Commitment immediately prior to such expiration or
cancellation.

                  "COMMITMENT SCHEDULE" means the Commitment Schedule attached
hereto.

                  "COMMITMENT TERMINATION DATE" means the earlier to occur of
(a) the Revolving Loan Termination Date, and (b) the date of termination in
whole of the Aggregate

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Commitment pursuant to Section 2.08 or 2.09 hereof or the Commitments pursuant
to Article VI hereof.

                  "COMPANY" means Masco Corporation, a Delaware corporation, and
its successors.

                  "COMPANY'S 2002 FORM 10-K" means the Company's annual report
on Form 10-K for the year ended December 31, 2002, as filed with the Securities
and Exchange Commission pursuant to the Securities Exchange Act of 1934, as
amended.

                  "COMPANY'S EQUITY SECURITIES" means shares of any class of the
Company's capital stock or options, warrants or other equity rights to acquire
such shares.

                  "CONSOLIDATED ADJUSTED NET WORTH" means at any date (i)
Consolidated Net Worth at such date less (ii) the amount (if any) by which the
aggregate amount of all equity and other investments in Affiliates of the
Company reflected in such Consolidated Net Worth exceeds $250,000,000.

                  "CONSOLIDATED CURRENT ASSETS" means at any date the
consolidated current assets of the Company and its Consolidated Subsidiaries
determined as of such date.

                  "CONSOLIDATED DEBT" means at any date the Debt of the Company
and its Consolidated Subsidiaries (other than the guarantee obligations of the
Company pursuant to that certain Facility and Guaranty Agreement, dated as of
July 10, 2000, by and among the Company, Bank One, NA, as agent, and the other
financial institutions from time to time parties thereto), determined on a
consolidated basis as of such date.

                  "CONSOLIDATED NET INCOME" means, for any period, the
consolidated net income of the Company and its Consolidated Subsidiaries for
such period (considered as a single accounting period), but excluding the net
income or deficit of any Person (other than the equity in earnings or losses of
an Affiliate previously included in such consolidated net income determined
under the equity method of accounting for investments) prior to the effective
date on which it becomes a Consolidated Subsidiary or is merged into or
consolidated with the Company or a Consolidated Subsidiary.

                  "CONSOLIDATED NET LOSS" has the meaning set forth in Section
5.02(A).

                  "CONSOLIDATED NET WORTH" means at any date the consolidated
shareholders' equity of the Company and its Consolidated Subsidiaries determined
as of such date.

                  "CONSOLIDATED SUBSIDIARY" means at any date any Subsidiary the
accounts of which would be consolidated with those of the Company in its
consolidated financial statements as of such date.

                  "CONSOLIDATED TOTAL LIABILITIES" means at any date the
aggregate of all liabilities or other items which would appear on the liability
side of a consolidated balance sheet of the Company and its Consolidated
Subsidiaries as of such date, except the amount so appearing which constitutes
Consolidated Net Worth.

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                  "CONTINUING DIRECTOR" means any member of the Company's board
of directors who either (i) was a member of such board as of the Closing Date or
(ii) has been thereafter or hereafter is elected to such board, or nominated for
election by stockholders, by a vote of at least two-thirds of the directors who
are Continuing Directors at the time of such vote; provided that an individual
who is so elected or nominated in connection with a merger, consolidation,
acquisition or similar transaction shall not be a Continuing Director unless
such individual was a Continuing Director prior thereto.

                  "CONVERSION/CONTINUATION NOTICE" is defined in Section
2.03(E).

                  "CONVERSION DATE" is defined in Section 2.08(C).

                  "CONVERTED LOAN TERMINATION DATE" means the date that is one
year after the Conversion Date (or, if such date is not a Domestic Business Day,
on the immediately preceding Domestic Business Day).

                  "DEBT" of any Person means at any date, without duplication,
(i) all obligations of such Person for borrowed money, (ii) all obligations of
such Person evidenced by debentures, notes or other similar instruments, (iii)
all obligations of such Person to pay the deferred purchase price of property,
except trade accounts payable, (iv) all obligations of such Person as lessee
which are capitalized in accordance with generally accepted accounting
principles, (v) all Debt of others secured by a Lien on any asset of such
Person, whether or not such Debt is assumed by such Person, and (vi) all Debt of
others for which such Person is contingently liable. In calculating the amount
of any Debt at any date for purposes of this Agreement, accrued interest shall
be excluded to the extent that it would be properly classified as a current
liability for interest under the heading "Accrued liabilities" (and not under
the heading "Notes payable") in a balance sheet prepared as of such date in
accordance with the accounting principles and practices used in preparing the
balance sheet referred to in Section 4.04(A) and the related footnotes thereto.

                  "DEFAULT" means any condition or event which constitutes an
Event of Default or which with the giving of notice or lapse of time or both
would, unless cured or waived, become an Event of Default.

                  "DESIGNATION AGREEMENT" has the meaning set forth in Section
9.06(F)(i).

                  "DESIGNATED LENDER" means, with respect to each Designating
Lender, each Eligible Designee designated by such Designating Lender pursuant to
Section 9.06(F).

                  "DESIGNATING LENDER" means, with respect to each Designated
Lender, the Bank that designated such Designated Lender pursuant to Section
9.06(F).

                  "DOCUMENTATION AGENT" shall mean the Documentation Agents
named in the first paragraph of this Agreement.

                  "DOLLARS" and "$" shall mean the lawful currency of the United
States of America.

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                  "DOMESTIC BUSINESS DAY" means any day on which banks generally
are open in New York, Detroit and Chicago for the conduct of substantially all
of their commercial lending activities and interbank wire transfers can be made
on the Fedwire system.

                  "DOMESTIC LENDING OFFICE" means, as to each Bank, its office
located at its address set forth in its Administrative Questionnaire (or
identified in its Administrative Questionnaire as its Domestic Lending Office)
or such other office as such Bank may hereafter designate as its Domestic
Lending Office by notice to the Company and the Agent.

                  "DOMESTIC SUBSIDIARY" means a Subsidiary which is incorporated
under the laws of the United States of America or any state thereof.

                  "ELIGIBLE DESIGNEE" means a special purpose corporation,
partnership, limited partnership or limited liability company that is
administered or sponsored by a Bank or an Affiliate of a Bank and (i) is
organized under the laws of the United States or any state thereof, (ii) is
engaged primarily in making, purchasing or otherwise investing in commercial
loans in the ordinary course of its business and (iii) issues (or the parent of
which issues) commercial paper rated at least A-1 or the equivalent thereof by
S&P or P-1 or the equivalent thereof by Moody's.

                  "ENVIRONMENTAL LAWS" means any and all federal, state and
local statutes, laws, judicial decisions, regulations, ordinances, rules,
judgments, orders, decrees, injunctions, permits, concessions, grants,
franchises, licenses, agreements and other governmental restrictions relating to
the environment, the effect of the environment on human health or to emissions,
discharges or releases of pollutants, contaminants, petroleum or petroleum
products, chemicals or industrial, toxic or hazardous substances or wastes into
the environment including, without limitation, ambient air, surface water,
ground water, or land, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of
pollutants, contaminants, petroleum or petroleum products, chemicals or
industrial, toxic or hazardous substances or wastes or the clean-up or other
remediation thereof.

                  "ERISA" means the Employee Retirement Income Security Act of
1974, as amended.

                  "ERISA GROUP" means the Company, any Subsidiary and all
members of a controlled group of corporations and all trades or businesses
(whether or not incorporated) under common control which, together with the
Company or any Subsidiary, are treated as a single employer under Section 414 of
the Internal Revenue Code.

                  "EURODOLLAR BORROWING" is defined in Section 1.03.

                  "EURODOLLAR BUSINESS DAY" means any Domestic Business Day on
which commercial banks are open for international business (including dealings
in dollar deposits) in London.

                  "EURODOLLAR LENDING OFFICE" means, as to each Bank, its
office, branch or affiliate located at its address set forth in its
Administrative Questionnaire (or identified in its Administrative Questionnaire
as its Eurodollar Lending Office) or such other office, branch or

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affiliate of such Bank as it may hereafter designate as its Eurodollar Lending
Office by notice to the Company and the Agent.

                  "EURODOLLAR LOAN" means a Loan to be made by a Bank which is
to bear interest at the Eurodollar Rate in accordance with the applicable Notice
of Borrowing.

                  "EURODOLLAR MARGIN" means a rate per annum determined in
accordance with the Pricing Schedule.

                  "EURODOLLAR RATE" means, with respect to a Eurodollar Loan for
the relevant Interest Period, the sum of (i) the quotient of (a) the Eurodollar
Reference Rate applicable to such Interest Period, divided by (b) one minus the
Eurodollar Reserve Percentage, plus (ii) the Eurodollar Margin.

                  "EURODOLLAR REFERENCE RATE" means, with respect to a
Eurodollar Loan for the relevant Interest Period, the applicable British
Bankers' Association Interest Settlement Rate for deposits in Dollars appearing
on Reuters Screen FRBD as of 11:00 a.m. (London time) two Eurodollar Business
Days prior to the first day of such Interest Period, and having a maturity equal
to such Interest Period, provided that, (i) if Reuters Screen FRBD is not
available to the Agent for any reason, the applicable Eurodollar Reference Rate
for the relevant Interest Period shall instead be the applicable British
Bankers' Association Interest Settlement Rate for deposits in Dollars as
reported by any other generally recognized financial information service as of
11:00 a.m. (London time) two Eurodollar Business Days prior to the first day of
such Interest Period, and having a maturity equal to such Interest Period, and
(ii) if no such British Bankers' Association Interest Settlement Rate is
available, the applicable Eurodollar Reference Rate for the relevant Interest
Period shall instead be the rate determined by the Agent to be the rate at which
Bank One offers to place deposits in Dollars with first-class banks in the
London interbank market at approximately 11:00 a.m. (London time) two Eurodollar
Business Days prior to the first day of such Interest Period, in the approximate
amount of Bank One's relevant Eurodollar Loan and having a maturity equal to
such Interest Period.

                  "EURODOLLAR RESERVE PERCENTAGE" means for any day that
percentage (expressed as a decimal) which is in effect on such day, as
prescribed by the Board of Governors of the Federal Reserve System (or any
successor) for determining the maximum reserve requirement for a member bank of
the Federal Reserve System in New York City with deposits exceeding five billion
dollars in respect of "Eurodollar liabilities" (or in respect of any other
category of liabilities which includes deposits by reference to which the
interest rate on Eurodollar Loans is determined or any category of extensions of
credit or other assets which includes loans by a non-United States office of any
Bank to United States residents).

                  "EVENT OF DEFAULT" has the meaning set forth in Section 6.01.

                  "FEDERAL FUNDS EFFECTIVE RATE" means, for any day, the
interest rate per annum (rounded upward, if necessary, to the nearest 1/100th of
1%) equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published by the Federal Reserve Bank of New York
on the Domestic Business Day next succeeding such day, provided that (i) if such
day

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is not a Domestic Business Day, the Federal Funds Effective Rate for such day
shall be such rate on such transactions on the next preceding Domestic Business
Day as so published on the next succeeding Domestic Business Day, and (ii) if no
such rate is so published on such next succeeding Domestic Business Day, the
Federal Funds Effective Rate for such day shall be the average rate quoted to
Bank One from three Federal funds brokers of recognized standing selected it on
such day on such transactions as determined by the Agent in its sole discretion.

                  "FISCAL QUARTER" means a fiscal quarter of the Company.

                  "FISCAL YEAR" means a fiscal year of the Company.

                  "5-YEAR REVOLVING CREDIT AGREEMENT" means that certain Amended
and Restated 5-Year Revolving Credit Agreement, dated as of November 8, 2002
among the Borrowers, Bank One, NA, as Administrative Agent and the financial
institutions from time to time parties thereto as lenders, as the same may be
amended, restated, supplemented, renewed, extended, refinanced or otherwise
modified from time to time.

                  "FLOATING RATE" means, for any day, a rate per annum equal to
the higher of (i) the Prime Rate for such day and (ii) the Federal Funds
Effective Rate plus 1/2% per annum for such day.

                  "FLOATING RATE LOAN" means a Loan to be made by a Bank which
is to bear interest at the Floating Rate in accordance with the applicable
Notice of Borrowing or otherwise pursuant to this Agreement.

                  "FOREIGN EMPLOYEE BENEFIT PLAN" means any employee benefit
plan as defined in Section 3(3) of ERISA which is maintained or contributed to
for the benefit of the employees of the Company, and of its Subsidiaries or any
members of its ERISA Group and is not covered by ERISA pursuant to ERISA Section
4b)(4).

                  "FOREIGN PENSION PLAN" means any employee pension plan as
described in Section 3(2) of ERISA for which any member of the ERISA Group is a
sponsor or administrator and which (i) is maintained or contributed to for the
benefit of employees of the Company, and of its Subsidiaries or any member of
its ERISA Group, (ii) is not covered by ERISA pursuant to Section 4(b)(4) of
ERISA, and (iii) under applicable local law or terms of such Foreign Pension
Plan, is required to be funded through a trust.

                  "GUARANTEED OBLIGATIONS" has the meaning set forth in Section
10.01(A).

                  "HIGH QUALITY INVESTMENT" means any investment in (i) direct
obligations of the United States of America or any agency thereof, or
obligations guaranteed by the United States of America or any agency thereof,
(ii) commercial paper rated at least A-1 by S&P and at least P-1 by Moody's or
(iii) time deposits with, including certificates of deposit issued by, any Bank
which was a party to this Agreement on the Closing Date or any office located in
the United States of America of any bank or trust company which is organized
under the laws of the United States of America or any State thereof and has
capital, surplus and undivided profits aggregating at least $500,000,000;
provided in each case that such investment matures within six months from the
date of acquisition thereof by the Company or a Subsidiary.

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                  "INTERCOMPANY INDEBTEDNESS" has the meaning set forth in
Section 10.07.

                  "INTEREST PERIOD" means:

                  (A)      with respect to each Eurodollar Borrowing, the period
         commencing on the date of such Borrowing and ending one, two, three or
         six months thereafter (or such longer or shorter period requested by
         the Borrower and acceptable to all of the Banks), as the Borrower may
         elect in the applicable Notice of Borrowing; provided that:

                           (i)      any Interest Period which would otherwise
                  end on a day which is not a Eurodollar Business Day shall be
                  extended to the next succeeding Eurodollar Business Day unless
                  such Eurodollar Business Day falls in another calendar month,
                  in which case such Interest Period shall end on the next
                  preceding Eurodollar Business Day,

                           (ii)     any Interest Period which begins on the last
                  Eurodollar Business Day of a calendar month (or on a day for
                  which there is no numerically corresponding day in the
                  calendar month at the end of such Interest Period) shall end
                  on the last Eurodollar Business Day of a calendar month,

                           (iii)    prior to the Commitment Termination Date, no
                  Borrower may select an Interest Period that ends after the
                  earlier of (a) the Revolving Loan Termination Date and (b) the
                  Conversion Date, and

                           (iv)     from and after the Conversion Date, no
                  Borrower may select an Interest Period that ends after the
                  Converted Loan Termination Date,

                  (B)      with respect to each Floating Rate Borrowing, the
         period commencing on the date of such Borrowing and ending 90 days
         thereafter or other mutually agreeable period acceptable between Agent
         and the Borrower; provided that:

                           (i)      any Interest Period which would otherwise
                  end on a day which is not a Domestic Business Day shall be
                  extended to the next succeeding Domestic Business Day; and

                           (ii)     any Interest Period applicable prior to the
                  occurrence of the Commitment Termination Date which would
                  otherwise end after the Commitment Termination Date shall end
                  on the Commitment Termination Date, and

                           (iii)    any Interest Period applicable after the
                  Conversion Date but prior to the occurrence of the Converted
                  Loan Termination Date which would otherwise end after the
                  Converted Loan Termination Date shall end on the Converted
                  Loan Termination Date.

                  "LENDING INSTALLATION" means, with respect to a Bank or the
Agent, the office, branch, subsidiary or affiliate of such Bank or the Agent
with respect to Floating Rate Loans or Eurodollar Loans listed on the
administrative information sheets provided to the Agent in connection herewith
or otherwise selected by such Bank or the Agent pursuant to Section 2.15.

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                  "LIEN" means, with respect to any asset, any mortgage, lien,
pledge, charge, security interest or similar encumbrance of any kind in respect
of such asset; provided that a subordination agreement shall not be deemed to
create a Lien. For the purposes of this Agreement, the Company or any
Consolidated Subsidiary shall be deemed to own subject to a Lien any asset which
it has acquired or holds subject to the interest of a vendor or lessor under any
conditional sale agreement, capital lease or other similar title retention
agreement relating to such asset.

                  "LOAN" means a loan made by a Bank pursuant to Section 2.01.

                  "MASCO EUROPE" means Masco Europe, S.a.r.l., a wholly-owned
Subsidiary of the Company organized under the laws of the Grand Duchy of
Luxembourg, and its successors.

                  "MATERIAL ADVERSE CHANGE" means a material adverse change in
the business, condition (financial or otherwise), operations, performance,
properties or prospects of the Company and its Subsidiaries, considered as a
whole, from December 31, 2002, as reflected in the financial statements referred
to in Section 4.04(A).

                  "MATERIAL DEBT" means Debt (other than the Loans) of the
Company and/or one or more of its Subsidiaries, arising (i) in one or more
related or unrelated transactions, in an aggregate outstanding principal amount
exceeding $50,000,000 or (ii) under the 5-Year Revolving Credit Agreement.

                  "MATERIAL FOREIGN PENSION PLAN" has the meaning set forth in
Section 6.01(I).

                  "MATERIAL PLAN" has the meaning set forth in Section 6.01(I).

                  "MOODY'S" has the meaning set forth in the Pricing Schedule.

                  "MULTIEMPLOYER PLAN" means at any time an employee pension
benefit plan within the meaning of Section 4001(a)(3) of ERISA to which any
member of the ERISA Group is then making or, pursuant to an applicable
collective bargaining agreement, accruing an obligation to make contributions or
has within the preceding five plan years made contributions, including for these
purposes any Person which ceased to be a member of the ERISA Group during such
five year period.

                  "NOTES" means any promissory notes of the Borrowers,
substantially in the form of Exhibit A hereto, evidencing the obligation of the
Borrowers to repay the Loans, and "Note" means any one of such promissory notes
issued hereunder.

                  "NOTICE OF BORROWING" is defined in Section 2.02.

                  "NOTICE TO CONVERT" is defined in Section 2.08(C).

                  "ORIGINAL CREDIT AGREEMENT" means that certain 364-Day
Revolving Credit Agreement entered into as of the Original Closing Date among
the Borrowers, the financial institutions parties thereto and Bank One, NA, as
administrative agent, as amended or otherwise modified as of the date hereof.

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                  "ORIGINAL CLOSING DATE" means November 8, 2002.

                  "PARENT" means, with respect to any Bank, any Person
controlling such Bank.

                  "PARTICIPANT" has the meaning set forth in Section 9.06(B).

                  "PBGC" means the Pension Benefit Guaranty Corporation or any
entity succeeding to any or all of its functions under ERISA.

                  "PERSON" means an individual, a corporation, a partnership, an
association, a trust or any other entity or organization, including a government
or political subdivision or an agency or instrumentality thereof.

                  "PLAN" means at any time an employee pension benefit plan
(other than a Multiemployer Plan) which is covered by Title IV of ERISA or
subject to the minimum funding standards under Section 412 of the Internal
Revenue Code and either (i) is maintained, or contributed to, by any member of
the ERISA Group for employees of any member of the ERISA Group or (ii) has at
any time within the preceding five years been maintained, or contributed to, by
any Person which was at such time a member of the ERISA Group for employees of
any Person which was at such time a member of the ERISA Group.

                  "PRICING SCHEDULE" means the Pricing Schedule attached hereto.

                  "PRIME RATE" means a rate per annum equal to the prime rate of
interest announced from time to time by Bank One or its Parent (which is not
necessarily the lowest rate charged to any customer), changing when and as said
prime rate changes.

                  "PRIOR PLAN" means at any time (i) any Plan which at such time
is no longer maintained or contributed to by any member of the ERISA Group or
(ii) any Multiemployer Plan to which no member of the ERISA Group is at such
time any longer making contributions or, pursuant to an applicable collective
bargaining agreement, accruing an obligation to make contributions.

                  "REFUNDING BORROWING" means a Borrowing which, after
application of the proceeds thereof, results in no net increase in the aggregate
outstanding principal amount of the Loans made by any Bank.

                  "REGULATION U" means Regulation U of the Board of Governors of
the Federal Reserve System, as in effect from time to time.

                  "REQUIRED BANKS" means at any time Banks having more than 50%
of the aggregate amount of the Commitments or, if the Commitments shall have
terminated, holding more than 50% of the aggregate unpaid principal amount of
the Loans.

                  "REPLACEMENT BANK" has the meaning set forth in Section 8.05.

                  "REVOLVING LOAN TERMINATION DATE" means November 4, 2004.

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                  "S&P" has the meaning set forth in the Pricing Schedule.

                  "SENIOR MANAGING AGENTS" means Comerica Bank and Merrill Lynch
Bank USA

                  "SIGNIFICANT SUBSIDIARIES" means any of Masco Europe or any
one or more Subsidiaries which, if considered in the aggregate as a single
Subsidiary, would be a "significant subsidiary" as defined in Rule 1-02 of
Regulation S-X under the Securities Exchange Act of 1934. For purposes of this
Agreement, a type of event shall not be deemed to have occurred with respect to
Significant Subsidiaries unless such type of event has occurred with respect to
each of the Subsidiaries required to be included to constitute "Significant
Subsidiaries" as defined in the preceding sentence.

                  "SUBSIDIARY" means any corporation or other entity of which
securities or other ownership interests having ordinary voting power to elect a
majority of the board of directors or other persons performing similar functions
are at the time owned by the Company or by the Company and one or more
Subsidiaries or by one or more Subsidiaries.

                  "SYNDICATION AGENT" shall mean the Syndication Agent named in
the first paragraph of this Agreement.

                  "UNFUNDED LIABILITIES" means, with respect to any Plan at any
time, the amount (if any) by which (i) the value of all benefit liabilities
under such Plan, determined on a plan termination basis using the assumptions
prescribed by the PBGC for purposes of Section 4044 of ERISA, exceeds (ii) the
fair market value of all Plan assets allocable to such liabilities under Title
IV of ERISA (excluding any accrued but unpaid contributions), all determined as
of the then most recent valuation date for such Plan, but only to the extent
that such excess represents a potential liability of a member of the ERISA Group
to the PBGC or any other Person under Title IV of ERISA.

                  "WHOLLY-OWNED SUBSIDIARY" of a Person means (i) any Subsidiary
all of the outstanding voting securities of which shall at the time be owned or
controlled, directly or indirectly, by such Person or one or more Wholly-Owned
Subsidiaries of such Person, or by such Person and one or more Wholly-Owned
Subsidiaries of such Person, or (ii) any partnership, limited liability company,
association, joint venture or similar business organization 100% of the
ownership interests having ordinary voting power of which shall at the time be
so owned or controlled.

                  SECTION 1.02. Accounting Terms and Determinations. Unless
otherwise specified herein, all accounting terms used herein shall be
interpreted, all accounting determinations hereunder shall be made, and all
financial statements required to be delivered hereunder shall be prepared in
accordance with generally accepted accounting principles as in effect from time
to time, applied on a basis consistent (except for changes concurred in by the
Company's independent public accountants) with the most recent audited
consolidated financial statements of the Company and its Consolidated
Subsidiaries delivered to the Banks; provided that, if the Company notifies the
Agent (and the Agent shall promptly notify each Bank of the contents of any such
notice) that the Company wishes to amend any covenant in Article V to eliminate
the effect of any change in generally accepted accounting principles on the
operation of

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such covenant (or if the Agent notifies the Company that the Required Banks wish
to amend Article V for such purpose), then the Company's compliance with such
covenant shall be determined on the basis of generally accepted accounting
principles in effect immediately before the relevant change in generally
accepted accounting principles became effective, until either such notice is
withdrawn or such covenant is amended in a manner satisfactory to the Company
and the Required Banks.

                  SECTION 1.03. Types of Borrowings. The term "Borrowing"
denotes the aggregation of Loans of one or more Banks to be made to a Borrower
pursuant to Article II on a single date and for a single Interest Period.
Borrowings are classified for purposes of this Agreement as "types" of
Borrowings either by reference to the pricing of the Loans comprising such
Borrowing (e.g., a "Eurodollar Borrowing" is a Borrowing comprised of Eurodollar
Loans) or by reference to the provisions of Article II under which participation
therein is determined (e.g., a "Borrowing" is a Borrowing under Section 2.01 in
which all Banks participate in proportion to their Commitments).

                  SECTION 1.04. Amendment and Restatement. It is the intent of
the parties hereto that this Agreement (i) shall re-evidence, in part, the
Borrowers' obligations and indebtedness under the Original Credit Agreement,
(ii) is entered into in substitution for, and not in payment of, the obligations
and indebtedness of the Borrowers under the Original Credit Agreement and (iii)
is in no way intended to constitute a novation of any of the Borrowers'
obligations and indebtedness which were evidenced by the Original Credit
Agreement or any of the other instruments, documents or agreements delivered or
executed in connection therewith. Notwithstanding any suggestion herein to the
contrary, all Loans made and obligations incurred under the Original Credit
Agreement which are outstanding on the Closing Date shall continue as Loans and
obligations under (and shall be governed by the terms of) this Agreement. All
references herein to "hereunder," "hereof," or words of like import, and all
references in any other instrument, document or agreement delivered or executed
in connection with the Original Credit Agreement, to the "Credit Agreement" or
words of like import shall mean and be a reference to the Original Credit
Agreement as amended and restated hereby (and any section references in such
instruments, documents or agreements to the Original Credit Agreement shall
refer to the applicable equivalent provision set forth herein although the
section number thereof may have changed).

                             ARTICLE II: THE CREDITS

                  SECTION 2.01. Borrowings. Each Bank severally agrees, on the
terms and conditions set forth in this Agreement, to continue to make loans to
the Company or Masco Europe in Dollars pursuant to this Section 2.01 from time
to time on and after the Closing Date to but excluding the Commitment
Termination Date; provided that the aggregate principal amount of the Loans made
by such Bank at any one time outstanding shall not exceed the amount of its
Commitment at that time. Each Borrowing under this Section 2.01 shall be in an
aggregate principal amount of $10,000,000 or any larger multiple of $1,000,000
and shall be made from the several Banks ratably in proportion to their
respective Commitments. Within the foregoing limits, the Borrowers may borrow
under this Section, repay, or to the extent permitted by Section 2.10, prepay
Loans and reborrow at any time under this Section (it being understood

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and agreed that MASCO Europe shall be liable only to repay the Loans made to
Masco Europe). Amounts repaid pursuant to Section 8.02 shall not be reborrowed
except as provided therein.

                  SECTION 2.02. Notice of Borrowing. Each Borrower shall give
the Agent notice substantially in the form of Exhibit D (a "Notice of
Borrowing") not later than 10:00 a.m. (Detroit time) on (x) the date of each
Floating Rate Borrowing, (y) the third Eurodollar Business Day before each
Eurodollar Borrowing to the Company, and (z) the fifth Eurodollar Business Day
before each Eurodollar Borrowing to Masco Europe, specifying:

                  (A)      the date of such Borrowing, which shall be a Domestic
         Business Day in the case of a Domestic Borrowing or a Eurodollar
         Business Day in the case of a Eurodollar Borrowing,

                  (B)      the aggregate amount of such Borrowing,

                  (C)      whether the Loans comprising such Borrowing are to be
         Floating Rate Loans or Eurodollar Loans, and

                  (D)      in the case of a Eurodollar Borrowing, the duration
         of the Interest Period applicable thereto, subject to the provisions of
         the definition of Interest Period.

                  SECTION 2.03. Notice to Banks; Funding of Loans.

                  (A)      Upon receipt of a Notice of Borrowing, the Agent
         shall promptly notify each Bank of the contents thereof and of such
         Bank's share (if any) of such Borrowing and such Notice of Borrowing
         shall not thereafter be revocable by the Borrower.

                  (B)      Not later than 12:00 Noon (Detroit time) on the date
         of each Borrowing, and not later than 12:00 Noon (London time) on the
         date of each Borrowing requested by Masco Europe, each Bank
         participating therein shall (except as provided in subsection (C) of
         this Section) make available its share of such Borrowing, in Federal or
         other funds immediately available in Detroit or London, as the case may
         be, to the Agent at its relevant address referred to in Section 9.01 or
         otherwise specified in writing by the Agent to the Banks. Unless the
         Agent determines that any applicable condition specified in Article III
         has not been satisfied, the Agent will make the funds so received from
         the Banks available to the Company at the Agent's aforesaid address in
         the United States or, to Masco Europe by wire transfer in immediately
         available funds to Masco Europe's account maintained at Bank One in
         London, as applicable.

                  (C)      If any Bank makes a new Loan hereunder on a day on
         which the Borrower requesting such Loan is to repay all or any part of
         an outstanding Loan from such Bank, such Bank shall apply the proceeds
         of its new Loan to make such repayment and only an amount equal to the
         difference (if any) between the amount being borrowed and the amount
         being repaid shall be made available by such Bank to the Agent as
         provided in subsection (B) of this Section, or remitted by such
         Borrower to the Agent as provided in Section 2.11, as the case may be.

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                  (D)      Unless the Agent shall have received notice from a
         Bank prior to the time of any Borrowing that such Bank will not make
         available to the Agent such Bank's share of such Borrowing, the Agent
         may assume that such Bank has made such share available to the Agent on
         the date of such Borrowing in accordance with subsections (B) and (C)
         of this Section and the Agent may, in reliance upon such assumption,
         make available to the relevant Borrower on such date a corresponding
         amount. If and to the extent that such Bank shall not have so made such
         share available to the Agent, such Bank and the relevant Borrower
         severally agree to repay to the Agent forthwith on demand such
         corresponding amount together with interest thereon, for each day from
         the date such amount is made available to such Borrower until the date
         such amount is repaid to the Agent, at (i) in the case of the Borrower,
         a rate per annum equal to the higher of the Federal Funds Effective
         Rate and the interest rate applicable thereto pursuant to Section 2.06
         and (ii) in the case of such Bank, the Federal Funds Effective Rate. If
         such Bank shall repay to the Agent such corresponding amount, such
         amount so repaid shall constitute such Bank's Loan included in such
         Borrowing for purposes of this Agreement. Nothing in this Section
         2.03(1)) shall relieve such Bank or any other Bank of its obligation to
         make its share of each Borrowing available to the Agent in accordance
         with the terms of this Agreement.

                  (E)      Floating Rate Loans shall continue as Floating Rate
         Loans unless and until such Floating Rate Loans are converted into
         Eurodollar Loans pursuant to this Section 2.03(E) or are repaid in
         accordance with Section 2.10. Each Eurodollar Loan shall continue as a
         Eurodollar Loan until the end of the then applicable Interest Period
         therefor, at which time, each such Eurodollar Loan shall be
         automatically converted into a Floating Rate Loan unless (x) such
         Eurodollar Loan is or was repaid in accordance with Section 2.10 or (y)
         the relevant Borrower shall have given the Agent a
         Conversion/Continuation Notice (as defined below) requesting that, at
         the end of such Interest Period, such Eurodollar Loan either continue
         as a Eurodollar Loan for the same or another Interest Period or be
         converted into a Floating Rate Loan.

                  Subject to the terms of Section 2.01, the Borrowers may elect
         from time to time to convert all or any part of a Loan of any type into
         any other type or types of Loans denominated in Dollars; provided that
         any conversion of any Eurodollar Loan shall be made on, and only on,
         the last day of the Interest Period applicable thereto; provided,
         however, that from and after the Conversion Date, and only so long as
         no Event of Default shall have occurred and be continuing, the
         Borrowers may elect to convert or continue any Loan at any time,
         subject to Section 2.12. The relevant Borrower shall give the Agent
         irrevocable notice (a "Conversion/Continuation Notice") of each
         conversion or continuation of a Loan not later than 10:00 a.m. (Detroit
         time) at least one Domestic Business Day, in the case of a conversion
         into or continuation of a Floating Rate Loan, three Eurodollar Business
         Days, in the case of a conversion into or continuation by the Company
         of a Eurodollar Loan denominated in Dollars, or five Eurodollar
         Business Days, in the case of a conversion or continuation of any
         Eurodollar Loan by Masco Europe, prior to the date of the requested
         conversion or continuation, specifying:

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                                    (a)      the requested date, which shall be
                           a Domestic Business Day or in the case of a
                           conversion into or continuation of a Eurodollar Loan,
                           a Eurodollar Business Day, of such conversion or
                           continuation, and

                                    (b)      the amount and type(s) of Loan(s)
                           into which such Loan is to be converted or continued
                           and, in the case of a conversion into or continuation
                           of a Eurodollar Loan, the duration of the Interest
                           Period applicable thereto.

                  SECTION 2.04. Noteless Agreement; Evidence of Indebtedness.

                  (A)      Each Bank shall maintain in accordance with its usual
         practice an account or accounts evidencing the indebtedness of each
         Borrower to such Bank resulting from each Loan made by such Bank from
         time to time, including the amounts of principal and interest payable
         and paid to such Bank from time to time hereunder.

                  (B)      The Agent shall also maintain accounts in which it
         will record (a) the amount of each Loan made hereunder, the type
         thereof and the Interest Period with respect thereto, (b) the amount of
         any principal or interest due and payable or to become due and payable
         from each Borrower to each Bank hereunder and (c) the amount of any sum
         received by the Agent hereunder from each Borrower and each Bank's
         share thereof.

                  (C)      The entries maintained in the accounts maintained
         pursuant to paragraphs (A) and (B) above shall be prima facie evidence
         of the existence and amounts of the Loans (including the principal and
         interest owing) therein recorded; provided, however, that the failure
         of the Agent or any Bank to maintain such accounts or any error therein
         shall not in any manner affect the obligation of the Borrower to repay
         the Loans (including the principal and interest owing) in accordance
         with their terms.

                  (D)      Any Bank may request that its Loans be evidenced by a
         Note. In such event, each Borrower requested by such Bank shall
         prepare, execute and deliver to such Bank a Note payable to the order
         of such Bank in substantially the form of Exhibit A. Thereafter, the
         Loans evidenced by such Note and interest thereon shall at all times
         (including after any assignment pursuant to this Agreement) be
         represented by one or more Notes payable to the order of the payee
         named therein or any assignee pursuant to this Agreement, except to the
         extent that any such Bank or assignee subsequently returns any such
         Note for cancellation and requests that such Loans once again be
         evidenced as described in paragraphs (A) and (B) above.

                  SECTION 2.05. Maturity of Loans. Each Loan included in any
Borrowing shall mature, and the principal amount thereof shall be due and
payable, on the last day of the Interest Period applicable to such Borrowing.

                  SECTION 2.06. Interest Rates.

                  (A)      Each Floating Rate Loan shall bear interest on the
         outstanding principal amount thereof, for each day from the date such
         Loan is made until it becomes due, at a rate per annum equal to the
         Floating Rate for such day. Such interest shall be payable for

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         each Interest Period on the last day thereof. Any overdue principal of
         or overdue interest on any Floating Rate Loan shall bear interest,
         payable on demand, for each day until paid at a rate per annum equal to
         the sum of 2% plus the Floating Rate for such day.

                  (B)      Each Eurodollar Loan shall bear interest on the
         outstanding principal amount thereof, for each day during the Interest
         Period applicable thereto, at a rate per annum equal to the Eurodollar
         Rate. Such interest shall be payable for each Interest Period on the
         last day thereof and, if such Interest Period is longer than three
         months, at intervals of three months after the first day thereof.

                  (C)      Any overdue principal of or interest on any
         Eurodollar Loan shall bear interest, payable on demand, for each day
         from and including the date payment thereof was due to but excluding
         the date of actual payment, at a rate per annum equal to the sum of 2%
         plus the higher of (i) the Eurodollar Rate applicable to such Loan
         prior to its maturity and (ii) the Eurodollar Rate which would be
         applicable to a Eurodollar Loan to the relevant Borrower hereunder made
         on such date for a period of one day (or, if such amount due remains
         unpaid more than three Eurodollar Business Days, then for such other
         period of time not longer than six months as the Agent may elect, or,
         if the circumstances described in Section 8.01 shall exist, at a rate
         per annum equal to the sum of 2% plus the Floating Rate for such day).

                  (D)      The Agent shall determine each interest rate
         applicable to the Loans hereunder. The Agent shall give prompt notice
         to the relevant Borrowers and the participating Banks by telex, cable
         or facsimile of each rate of interest so determined, and its
         determination thereof shall be conclusive in the absence of manifest
         error (provided that the determination of such amount or amounts is
         made on a reasonable basis).

                  SECTION 2.07. Facility Fees and Utilization Fees.

                  (A)      The Company shall pay to the Agent, for the account
         of the Banks ratably in proportion to their Commitments, a facility fee
         calculated for each day at the facility fee rate for such day
         determined in accordance with the Pricing Schedule. Such facility fee
         shall accrue for each day (i) from and including the Closing Date to
         but excluding the Commitment Termination Date (or earlier date of
         termination of the Commitments in their entirety), on the Aggregate
         Commitment (whether used or unused) in effect on such day and (ii) from
         and including such date of termination of the Commitments to but
         excluding the date the Loans shall be repaid in their entirety, on the
         aggregate principal amount of the Loans outstanding on such day.

                  (B)      Prior to the earlier of (a) the date of termination
         of the "Commitments" and the repayment in full in cash of all of the
         "Loans" and "L/C Obligations" under (and as such terms are defined in)
         the 5-Year Revolving Credit Agreement and (b) the Conversion Date, for
         each day on which the sum of (x) the aggregate principal amount of
         outstanding Loans hereunder plus (y) the aggregate principal amount of
         outstanding "Loans" and "L/C Obligations" under (and as defined in) the
         5-Year Revolving Credit Agreement exceeds 33% of the sum of (i) the
         Aggregate Commitment hereunder plus (ii) the "Aggregate Commitment"
         under (and as defined in) the 5-Year Revolving Credit

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         Agreement, a utilization fee at the applicable per annum rate set forth
         on the Pricing Schedule will accrue on the aggregate principal amount
         of outstanding Loans for the ratable benefit of the Banks. During the
         period from and after the date of termination of the "Commitments" and
         the repayment in full in cash of all of the "Loans" and "L/C
         Obligations" under (and as such terms are defined in) the 5-Year
         Revolving Credit Agreement, but prior to the Commitment Termination
         Date, for each day on which the aggregate principal amount of
         outstanding Loans exceeds 33% of the Aggregate Commitment, a
         utilization fee at the applicable per annum rate set forth on the
         Pricing Schedule will accrue on the aggregate principal amount of the
         Loans. From and after the Commitment Termination Date a utilization fee
         at the applicable per annum rate set forth on the Pricing Schedule will
         accrue on the aggregate principal amount of all outstanding Loans for
         the ratable benefit of the Banks (it being understood that if the
         Commitment Termination Date is caused by a termination in whole of the
         Aggregate Commitment on the Conversion Date pursuant to Section 2.08,
         then from and after the Conversion Date, a premium of 0.25% shall apply
         to the aggregate principal amount of all outstanding Loans, as more
         specifically described in the Pricing Schedule).

                  (C)      Fees accrued under this Section shall be payable
         quarterly in arrears on the date fifteen days after the last day of
         each March, June, September and December, whether occurring prior to or
         after the Conversion Date, and upon the termination of the Commitments
         in their entirety (and, if later, the date the Loans shall be repaid in
         their entirety).

                  SECTION 2.08. Optional Termination or Reduction of
Commitments; Conversion to Term Loan.

                  (A)      The Company may, upon at least three Eurodollar
         Business Days' notice to the Agent, (i) terminate the Commitments at
         any time, if no Loans are outstanding at such time, or (ii) ratably
         reduce from time to time by an aggregate amount of $10,000,000 or any
         larger multiple of $1,000,000, the aggregate amount of the Commitments
         in excess of the aggregate outstanding principal amount of the Loans.

                  (B)      Upon receipt of a notice of termination or reduction
         pursuant to this Section, the Agent shall promptly notify each Bank of
         the contents thereof and of the new amount (if any) of such Bank's
         Commitment and such notice shall not thereafter be revocable by the
         Company.

                  (C)      From and after the Closing Date to and including the
         Commitment Termination Date, at the Company's option upon written
         notice (a "Notice to Convert") to the Agent (who shall promptly notify
         each of the Banks), the Company, on behalf of itself and Masco Europe,
         may convert the then outstanding aggregate principal amount of the
         Borrowings hereunder to a term loan. The Notice to Convert shall (i)
         expressly state the date on which such conversion shall occur (such
         date being the "Conversion Date"), which date shall be a Domestic
         Business Day occurring on or before the Commitment Termination Date,
         (ii) be irrevocable once given and (iii) constitute a representation
         and warranty by the Company that the conditions contained in Section
         3.03 have been satisfied as of the date of such Notice to Convert and
         as of the Conversion Date. Upon

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         delivery of such Notice to Convert, (i) the Borrowers' option to borrow
         and reborrow Revolving Loans hereunder, shall terminate, (ii) the
         Aggregate Commitment shall be reduced to zero, and (iii) the
         outstanding principal balance of all Loans hereunder shall be due and
         payable on the earlier of (a) the Converted Loan Termination Date and
         (b) the date on which all Loans shall become due and payable under
         Article VI.

                  SECTION 2.09. Mandatory Termination of Commitments. The
Commitments shall terminate on the Commitment Termination Date, and any Loans
then outstanding (together with accrued interest thereon) shall be due and
payable on such date, unless the Borrowers shall have elected to convert the
Loans to a term loan in accordance with the provisions of Section 2.08(C), in
which case any Loans (together with all accrued interest thereon) shall be due
and payable on the Converted Loan Termination Date (or such earlier date as the
Loans shall become due and payable pursuant to Article VI).

                  SECTION 2.10. Prepayments.

                  (A)      The Borrowers (i) may prepay any Floating Rate
         Borrowing at any time without penalty on the same day or (ii) upon at
         least five Eurodollar Business Days' notice to the Agent, subject to
         Section 2.12, prepay any Eurodollar Borrowing, in whole at any time, or
         from time to time in part in amounts aggregating $10,000,000 or any
         larger multiple of $1,000,000, by paying the principal amount to be
         prepaid together with accrued interest thereon to the date of
         prepayment. Each such optional prepayment shall be applied to prepay
         ratably the Loans of the several Banks included in such Borrowing.

                  (B)      Upon receipt of a notice of prepayment pursuant to
         this Section, the Agent shall promptly notify each Bank of the contents
         thereof and of such Bank's ratable share (if any) of such prepayment
         and such notice shall not thereafter be revocable by the Borrower.

                  SECTION 2.11. General Provisions as to Payments.

                  (A)      The Borrowers shall make each payment of principal
         of, and interest on, the Loans and of fees hereunder, not later than
         1:00 p.m. (local time) in Dollars on the date when due to the Agent at
         its address referred to in Section 9.01 or at any other Lending
         Installation of the Agent with respect to such obligation as specified
         in writing by the Agent to the Borrowers. Whenever any payment of
         principal of, or interest on, the Floating Rate Loans or of fees shall
         be due on a day which is not a Domestic Business Day, the date for
         payment thereof shall be extended to the next succeeding Domestic
         Business Day. Whenever any payment of principal of, or interest on, the
         Eurodollar Loans shall be due on a day which is not a Eurodollar
         Business Day, the date for payment thereof shall be extended to the
         next succeeding Eurodollar Business Day unless such Eurodollar Business
         Day falls in another calendar month, in which case the date for payment
         thereof shall be the next preceding Eurodollar Business Day. If the
         date for any payment of principal is extended by operation of law or
         otherwise, interest thereon shall be payable for such extended time.

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                  (B)      Unless the Agent shall have received notice from the
         relevant Borrower prior to the date on which any payment is due to the
         Banks hereunder that such Borrower will not make such payment in full,
         the Agent may assume that such Borrower has made such payment in full
         to the Agent on such date and the Agent may, in reliance upon such
         assumption, cause to be distributed to each Bank on such due date an
         amount equal to the amount then due such Bank. If and to the extent
         that such Borrower shall not have so made such payment, each Bank shall
         repay to the Agent forthwith on demand such amount distributed to such
         Bank together with interest thereon, for each day from the date such
         amount is distributed to such Bank until the date such Bank repays such
         amount to the Agent, at the Federal Funds Rate for the first three days
         and at the Floating Rate thereafter.

                  (C)      Each Loan shall be repaid and each payment of
         interest thereon shall be paid in Dollars. All payments required to be
         made by the Borrowers hereunder will be made in immediately available
         funds and shall be applied ratably by the Agent among the Banks. Each
         payment delivered to the Agent for the account of any Bank shall be
         delivered promptly by the Agent to such Bank in the same type of funds
         that the Agent received at its address specified pursuant to Section
         9.01 or at any Lending Installation specified in a notice received by
         the Agent from such Bank. The Agent is hereby authorized to charge any
         account of the relevant Borrower designated by such Borrower as the
         account from which payments are to be made and maintained with Bank One
         or any of its affiliates for each payment of principal, interest and
         fees as it becomes due hereunder.

                  (D)      Subject to Section 2.14, all payments of principal of
         and interest on the Loans and other amounts payable by the Borrowers to
         any Bank hereunder shall be made by the Borrowers without setoff,
         deduction or counterclaim and, subject to the next succeeding sentence,
         free and clear of, and without deduction or withholding for, or on
         account of, any present or future taxes, levies, imposts, duties, fees,
         assessments, or other charges of whatever nature, imposed by any
         governmental authority, or by any department, agency or other political
         subdivision or taxing authority. Subject to Section 2.14, if any such
         taxes, levies, imposts, duties, fees, assessments or other charges are
         imposed, the relevant Borrower will pay such additional amounts as may
         be necessary so that payment of principal of and interest on the Loans
         and other amounts payable hereunder, after withholding or deduction for
         or on account thereof, will not be less than any amount provided to be
         paid hereunder.

                  SECTION 2.12. Funding Losses. If any Borrower makes any
payment of principal with respect to any Eurodollar Loan (pursuant to Section
2.05, Section 2.10, Article VI, Article VIII or otherwise) on any day other than
the last day of the Interest Period applicable thereto, or if any Borrower fails
to borrow any Eurodollar Loan after notice has been given to any Bank in
accordance with Section 2.03(A) or if any Borrower fails to prepay any
Eurodollar Loan after notice has been given to any Bank in accordance with
Section 2.10(B), such Borrower shall reimburse each Bank within 15 days after
demand for any resulting loss or expense incurred by it (or by an existing or
prospective Participant in the related Loan), including (without limitation) any
loss incurred in obtaining, liquidating or employing deposits from third
parties, but excluding loss of margin for the period after any such payment or
failure to borrow,

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provided that such Bank shall have delivered to such Borrower a certificate as
to the amount of such loss or expense, which certificate shall be conclusive in
the absence of manifest error, provided that the determination of such loss or
expense is made on a reasonable basis.

                  SECTION 2.13. Computation of Interest and Fees. Interest on
Floating Rate Loans based on the Prime Rate paid for the actual number of days
elapsed (including the first day but excluding the last day). All other interest
and fees shall be computed on the basis of a year of 360 days and paid for the
actual number of days elapsed (including the first day but excluding the last
day).

                  SECTION 2.14. Withholding Tax Exemption.

                  (A)      At least five Domestic Business Days prior to the
         first date on which interest or fees are payable hereunder for the
         account of any Bank, each Bank that is not incorporated under the laws
         of the United States of America or a state thereof agrees that it will
         deliver to each of the Company and the Agent two duly completed copies
         of United States Internal Revenue Service Form W-8BEN or W-8ECI and any
         additional forms necessary for claiming complete exemption from United
         States withholding taxes (or any successor or substitute forms),
         certifying in either case that such Bank is entitled to receive
         payments under this Agreement and the Loans without deduction or
         withholding of any United States federal income taxes. Each Bank which
         so delivers a Form W-8BEN or W-8ECI and any additional forms necessary
         for claiming complete exemption from United States withholding taxes
         (or any successor or substitute forms) further undertakes to deliver to
         each of the Company and the Agent two additional copies of such forms
         (or any successor or substitute forms) on or before the date that such
         form expires or becomes obsolete or after the occurrence of any event
         requiring a change in the most recent form so delivered by it, and such
         amendments thereto or extensions or renewals thereof as may be
         reasonably requested by the Company or the Agent to the extent it may
         lawfully do so, in each case certifying that such Bank is entitled to
         receive payments under this Agreement and the Loans without deduction
         or withholding of any United States federal income taxes, unless an
         event (including without limitation any change in treaty, law or
         regulation) has occurred prior to the date on which any such delivery
         would otherwise be required which renders all such forms inapplicable
         or which would prevent such Bank from duly completing and delivering
         any such form with respect to it and such Bank advises the Company and
         the Agent that it is not capable of receiving payments without any
         deduction or withholding of United States federal income tax.

                  (B)      For any period with respect to which a Bank has
         failed to provide the Company, the Agent or the relevant Borrower with
         the appropriate form as required by the foregoing subsection (unless
         such failure is due to a change in treaty, law or regulation occurring
         after the date on which such form originally was required to be
         provided), such Bank shall not be entitled to compensation pursuant to
         the last sentence of Section 2. 11(D).

                  SECTION 2.15. Lending Installations. Each Bank will book its
Loans at the appropriate Lending Installation listed on the administrative
information sheets provided to the

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Agent in connection herewith or such other Lending Installation designated by
such Bank in accordance with the penultimate sentence of this Section 2.15. All
terms of this Agreement shall apply to any such Lending Installation and the
Loans and any Notes issued hereunder shall be deemed held by each Bank for the
benefit of any such Lending Installation. Each Bank may, by written notice to
the Agent and the Borrowers in accordance with Article IX, designate replacement
or additional Lending Installations through which Loans will be made by it and
for whose account Loan payments are to be made. To the extent reasonably
possible, each Bank shall designate a Lending Installation to reduce any
liability of a Borrower to such Bank under Article VIII, so long as such
designation is not disadvantageous to such Bank in any material respect.

                             ARTICLE III: CONDITIONS

                  SECTION 3.01. Effectiveness of the Original Credit Agreement.
The Borrowers hereby confirm that on or prior to the Original Closing Date each
of the conditions set forth in Section 3.01 of the Original Credit Agreement
were satisfied (or waived in accordance with Section 9.05 of the Original Credit
Agreement).

                  SECTION 3.02. Effectiveness of this Agreement. The Banks shall
not be required to make any Loans hereunder and this Agreement shall not become
effective, unless the Agent shall have received each of the following (with
sufficient copies for the Banks):

                  (A)      duly executed signature pages to this Agreement from
         each of the parties hereto (or, in the case of any party as to which an
         executed counterpart shall not have been received, receipt by the Agent
         in form satisfactory to it of facsimile or other written confirmation
         from such party that it has executed a counterpart hereof);

                  (B)      written opinions of each of (i) John R. Leekley,
         Senior Vice President- General Counsel of the Company, substantially in
         the form of Exhibit B-l hereto and (ii) Linklaters Loesch, Luxembourg
         counsel of Masco Europe, substantially in the form of Exhibit B-2
         hereto, and, in each case, covering such additional matters relating to
         the transactions contemplated hereby as the Required Banks may
         reasonably request;

                  (C)      receipt by the Agent of a certificate of a duly
         authorized officer of the Company, dated the Closing Date, certifying
         that (i) as of such date no Default shall have occurred and be
         continuing, (ii) as of such date the representations and warranties of
         the Company contained in this Agreement are true in all material
         respects and (iii) as of such date there has been no Material Adverse
         Change;

                  (D)      receipt by the Agent of all documents it reasonably
         requested relating to the existence of the Company and Masco Europe,
         the corporate authority for and the validity of this Agreement and any
         other matters relevant hereto, including, without limitation, (i)
         copies of the Certificate of Incorporation or Articles of Association
         of each Borrower, together with all amendments thereto, each certified
         by the appropriate governmental officer in its respective jurisdiction
         of organization, (ii) (a) in the case of the Company, a certificate of
         good standing certified by the Secretary of State of Delaware and a
         certificate of good standing certified by the Secretary of State of

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         Michigan, and (b) in the case of Masco Europe, a duly certified excerpt
         from the Register of Commerce and Companies in Luxembourg, and a
         non-bankruptcy certificate with respect to Masco Europe, and (iii) a
         secretary certificate of each Borrower certifying (a) resolutions of
         the Board of Directors of such Borrower authorizing the execution,
         delivery and performance of this Agreement and the Notes, (b) the names
         and true signatures of the incumbent officers or Managers of such
         Borrower, as applicable, authorized to sign the Agreement and the
         Notes, (c) that there have been no changes in the Certificate of
         Incorporation or Articles of Association of such Borrower, as
         applicable, since the date of the certification thereof by the
         applicable governmental authority in clause (i) above, and (d) the
         By-laws or similar document as in effect on the date of such
         certification and

                  (E)      such other documents, instruments and agreements as
         the Agent may reasonably request.

                  SECTION 3.03. All Borrowings. The obligation of any Bank to
make a Loan on the occasion of any Borrowing is subject to the satisfaction of
the following conditions:

                  (A)      receipt by the Agent of a Notice of Borrowing as
         required by Section 2.02;

                  (B)      the fact that, immediately after such Borrowing, the
         aggregate outstanding amount of the Loans will not exceed the Aggregate
         Commitment;

                  (C)      the fact that, immediately before and after such
         Borrowing, (i) in the case of a Refunding Borrowing, no Event of
         Default shall have occurred and be continuing and (ii) in the case of
         any other Borrowing, no Default shall have occurred and be continuing;
         and

                  (D)      the fact that the representations and warranties of
         the Borrowers contained in this Agreement (except, in the case of a
         Refunding Borrowing, the representations and warranties set forth in
         Sections 4.04(C), 4.05, 4.06 (other than clause (i) thereof), 4.07,
         4.10 and 4.11) shall be true in all material respects on and as of the
         date of such Borrowing.

                  Each Borrowing hereunder shall be deemed to be a
representation and warranty by the Borrower requesting such Borrowing on the
date of such Borrowing as to the facts specified in clauses (B), (C) and (D) of
this Section.

                   ARTICLE IV: REPRESENTATIONS AND WARRANTIES

                  The Company represents and warrants that:

                  SECTION 4.01. Corporate Existence and Power. The Company and
its Domestic Subsidiaries and Masco Europe are duly organized, validly existing
and in good standing under the laws of their respective jurisdiction of
formation, and have all requisite powers and all material governmental licenses,
authorizations, consents and approvals required to carry on their businesses,
considered as a whole, substantially as now conducted.

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                  SECTION 4.02. Corporate and Governmental Authorization; No
Contravention; Filing; No Immunity.

                  (A)      The execution, delivery and performance by the
         Company and Masco Europe of this Agreement and the Notes are within the
         Company's and Masco Europe's respective corporate powers, have been
         duly authorized by all necessary corporate action, require no action by
         or in respect of, or filing with, any governmental body, agency or
         official (except filings under the Securities Exchange Act of 1934) and
         do not contravene, or constitute a default under, any provision of
         applicable law or regulation or of the certificate of incorporation or
         by-laws or other constitutive documents of the Company or Masco Europe
         or of any agreement, judgment, injunction, order, decree or other
         instrument binding upon the Company or Masco Europe or result in the
         creation or imposition of any Lien on any asset of the Company or any
         of its Subsidiaries.

                  (B)      To ensure the enforceability or admissibility in
         evidence of this Agreement and each Note to which Masco Europe is a
         party in Luxembourg, it is not necessary that this Agreement or any
         such Note to which Masco Europe is a party or any other document be
         filed or recorded with any court or other authority in Luxembourg or
         that any stamp or similar tax be paid to or in respect of this
         Agreement or any such Note. The qualification by any Bank or the Agent
         for admission to do business under the laws of Luxembourg does not
         constitute a condition to, and the failure to so qualify does not
         affect, the exercise by any Bank or the Agent of any right, privilege,
         or remedy afforded to any Bank or the Agent in connection with this
         Agreement or any Note to which such Masco Europe is a party or the
         enforcement of any such right, privilege, or remedy against Masco
         Europe. The performance by any Bank or the Agent of any action required
         or permitted under this Agreement or any Note will not (i) violate any
         law or regulation of Luxembourg or any political subdivision thereof,
         (ii) result in any tax or other monetary liability to such party
         pursuant to the laws of Luxembourg or political subdivision or taxing
         authority thereof (other than taxes on the overall net income of such
         Bank or its Applicable Lending Office or franchise or similar taxes
         imposed by Luxembourg to the extent such Bank or its Applicable Lending
         Office shall be situated in Luxembourg), or (iii) violate any rule or
         regulation of any federation or organization or similar entity of which
         Luxembourg is a member, except such violations or liabilities, or
         increases thereof which individually or in the aggregate could not
         reasonably be expected to have a material adverse effect on the
         business or financial position of the Company and its Consolidated
         Subsidiaries, considered as a whole, or which in any manner draws into
         question the validity of this Agreement or the Notes.

                  (C)      Neither Masco Europe nor any of its assets is
         entitled to immunity from suit, execution, attachment or other legal
         process. Masco Europe's execution and delivery of this Agreement
         constitute, and the exercise of its rights and performance of and
         compliance with its obligations under this Agreement will constitute,
         private and commercial acts done and performed for private and
         commercial purposes.

                  SECTION 4.03. Binding Effect. This Agreement constitutes a
valid and binding agreement of the Company and Masco Europe, enforceable against
them in accordance with its terms, except as the same may be limited by
bankruptcy, insolvency or similar laws affecting

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creditors' rights generally and by general principles of equity, and the Notes
when executed and delivered in accordance with this Agreement will constitute
valid and binding obligations of the Company and Masco Europe enforceable
against it in accordance with their terms, except as the same may be limited by
bankruptcy, insolvency or similar laws affecting creditors' rights generally and
by general principles of equity.

                  SECTION 4.04. Financial Information.

                  (A)      The consolidated balance sheet of the Company and its
         Consolidated Subsidiaries as of December 31, 2002 and the related
         consolidated statements of income and cash flows for the Fiscal Year
         then ended, reported on by PricewaterhouseCoopers LLP and set forth in
         the Company's 2002 Form 10-K, a copy of which has been delivered to
         each of the Banks, fairly present, in conformity with generally
         accepted accounting principles, the consolidated financial position of
         the Company and its Consolidated Subsidiaries as of such date and the
         consolidated results of their operations and their cash flows for such
         Fiscal Year.

                  (B)      The unaudited condensed consolidated balance sheet of
         the Company and its Consolidated Subsidiaries as of June 30, 2003 and
         the related unaudited condensed statements of consolidated income and
         consolidated cash flows for the three months then ended, set forth in
         the Company's quarterly report for the fiscal quarter ended June 30,
         2003 as filed with the Securities and Exchange Commission on Form 10-Q,
         a copy of which has been delivered to each of the Banks, fairly
         present, on a basis consistent with the financial statements referred
         to in subsection (A) of this Section, the consolidated financial
         position of the Company and its Consolidated Subsidiaries as of such
         date and their consolidated results of operations and cash flows for
         such three-month period (subject to normal year-end adjustments).

                  (C)      No Material Adverse Change has occurred or is
         continuing.

                  SECTION 4.05. Litigation. There is no action, suit or
proceeding pending against, or to the knowledge of the Company threatened
against or affecting, the Company or any of its Subsidiaries before any court or
arbitrator or any governmental body, agency or official which, in the reasonable
opinion of the Company, has resulted in or is likely to result in a Material
Adverse Change or which in any manner draws into question the validity of this
Agreement or the Notes.

                  SECTION 4.06. Compliance with ERISA. Each member of the ERISA
Group (i) has fulfilled its obligations under the minimum funding standards of
ERISA and the Internal Revenue Code with respect to each Plan and (ii) is in
compliance in all material respects with the presently applicable provisions of
ERISA and the Internal Revenue Code with respect to each Plan. No member of the
ERISA Group has (x) sought a waiver of the minimum funding standard under
Section 412 of the Internal Revenue Code in respect of any Plan, (y) failed to
make any contribution or payment to any Plan or Multiemployer Plan or in respect
of any Benefit Arrangement, or made any amendment to any Plan or Benefit
Arrangement, which has resulted or could result in the imposition of a Lien or
the posting of a bond or other security under ERISA or the Internal Revenue
Code, in each case securing an amount greater than

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$10,000,000 or (z) incurred any liability under Title IV of ERISA other than a
liability to the PBGC for premiums under Section 4007 of ERISA which could
materially adversely affect the business, consolidated financial position or
consolidated results of operations of the Company and its Consolidated
Subsidiaries, considered as a whole.

                  SECTION 4.07. Environmental Matters. In the ordinary course of
its business, the Company conducts appropriate reviews of the effect of
Environmental Laws on the business, operations and properties of the Company and
its Subsidiaries, in the course of which it identifies and evaluates pertinent
liabilities and costs (including, without limitation, capital or operating
expenditures required for clean-up or closure of properties presently or
previously owned or for the lawful operation of its current facilities, required
constraints or changes in operating activities, and evaluation of liabilities to
third parties, including employees, together with pertinent costs and expenses).
On the basis of this review, the Company has reasonably concluded that
Environmental Laws are not likely to have a material adverse effect on the
business, financial position or results of operations of the Company and its
Consolidated Subsidiaries, considered as a whole.

                  SECTION 4.08. Taxes. United States Federal income tax returns
of the Company and its Subsidiaries have been examined and/or closed through the
Fiscal Year ended December 31,1999. The Company and its Subsidiaries have filed
all United States Federal income tax returns and all other material tax returns
which are required to be filed by them and have paid all taxes shown as due
pursuant to such returns or pursuant to any assessment received by the Company
or any Subsidiary, except such taxes, if any, as are being contested in good
faith and as to which, in the opinion of the Company, adequate reserves have
been provided. The charges, accruals and reserves on the books of the Company
and its Subsidiaries in respect of taxes or other like governmental charges are,
in the opinion of the Company, adequate.

                  SECTION 4.09. Not an Investment Company. The Company is not an
"investment company" or a company "controlled" by an "investment company" within
the meaning of the Investment Company Act of 1940, as amended.

                  SECTION 4.10. Compliance with Laws. The Company complies, and
has caused each Subsidiary to comply, in all material respects with all
applicable laws, ordinances, rules, regulations, and requirements of
governmental authorities (including, without limitation, Environmental Laws and
ERISA and the rules and regulations thereunder), except where (i) the necessity
of compliance therewith is contested in good faith by appropriate proceedings,
(ii) no officer of the Company is aware that the Company or the relevant
Subsidiary has failed to comply therewith or (iii) the Company has reasonably
concluded that failure to comply is not likely to have a material adverse effect
on the business, financial position or results of operations of the Company and
its Consolidated Subsidiaries, taken as a whole.

                  SECTION 4.11. Foreign Employee Benefit Matters. (a) Each
Material Employee Benefit Plan is in compliance with all laws, regulations and
rules applicable thereto and the respective requirements of the governing
documents for such Plan; (b) there are no deficiencies in contributions,
payments or other funding required of the Company and its Subsidiaries by
applicable law or the governing plan documents with respect to any governmental
or statutory Foreign Pension Plan, and the present value of the aggregate
accumulated benefit obligations

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under all other Foreign Pension Plans does not exceed the current fair market
value of the assets held in the trusts for such Plans; (c) with respect to any
Foreign Employee Benefit Plan maintained or contributed to by any member of the
ERISA Group (other than a Foreign Pension Plan), reasonable reserves have been
established in accordance with prudent business practice or where required by
ordinary accounting practices in the jurisdiction in which such Plan is
maintained; and (d) there are no actions, suits or claims pending or, to the
knowledge of the Company and its Subsidiaries, threatened against the Company or
any Subsidiary of it or any member of the ERISA Group with respect to any
Foreign Employee Benefit Plan, except in each case where such failure to comply,
deficiencies, excess obligations, absence of reserves, or actions, suits or
claims would not individually or in the aggregate have a material adverse effect
on the business, consolidated financial position or consolidated results of
operations of the Company and its Consolidated Subsidiaries, considered as a
whole.

                              ARTICLE V: COVENANTS

                  The Company agrees that, so long as any Bank has any
Commitment hereunder or any amount payable under any Loan or otherwise hereunder
remains unpaid:

                  SECTION 5.01. Information. The Company will deliver to each of
the Banks:

                  (A)      as soon as available and in any event within 95 days
         after the end of each Fiscal Year, a consolidated balance sheet of the
         Company and its Consolidated Subsidiaries as of the end of such Fiscal
         Year and the related consolidated statements of income and cash flows
         for such Fiscal Year, setting forth in each case in comparative form
         the corresponding figures for the previous Fiscal Year, all reported on
         by PricewaterhouseCoopers LLP or other independent public accountants
         of nationally recognized standing, whose report shall be without
         material qualification;

                  (B)      as soon as available and in any event within 50 days
         after the end of each of the first three quarters of each Fiscal Year,
         a condensed consolidated balance sheet of the Company and its
         Consolidated Subsidiaries as of the end of such quarter, the related
         condensed consolidated statement of income for such quarter and the
         related condensed consolidated statements of income and cash flows for
         the portion of such Fiscal Year ended at the end of such quarter,
         setting forth in each case in comparative form the corresponding
         figures for the corresponding periods of the previous Fiscal Year, all
         in reasonable detail and certified, to the best of his knowledge
         (subject to normal year-end adjustments), as to fairness of
         presentation, and consistency with generally accepted accounting
         principles (except for changes concurred in by the Company's
         independent public accountants) by the chief financial officer or the
         treasurer of the Company;

                  (C)      simultaneously with the delivery of each set of
         financial statements referred to in clauses (A) and (B) above, a
         certificate of the chief financial officer or the treasurer of the
         Company (x) setting forth in reasonable detail the calculations
         required to establish whether the Company was in compliance with the
         requirements of Sections 5.02 to 5.04, inclusive, on the date of such
         financial statements, (y) stating, to the best of his or her knowledge,
         whether any Default exists on the date of such certificate and (z) if
         any

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         Default then exists, setting forth the details thereof and the action
         which the Company is taking or proposes to take with respect thereto;

                  (D)      within 15 days after any officer of the Company
         becomes aware of the existence of any Default, unless such Default
         shall have been cured before the end of such 15 day period, a
         certificate of the chief financial officer or the treasurer of the
         Company setting forth the details of such Default and the action which
         the Company is taking or proposes to take with respect thereto;

                  (E)      promptly upon the mailing thereof to the shareholders
         of the Company generally, copies of all financial statements, reports
         and proxy statements so mailed;

                  (F)      promptly upon the filing thereof, copies of all
         reports on Forms 10-K, 10-Q and 8-K and similar regular and periodic
         reports which the Company shall have filed with the Securities and
         Exchange Commission;

                  (G)      if and when any member of the ERISA Group (i) gives
         or is required to give notice to the PBGC of any "reportable event" (as
         defined in Section 4043 of ERISA) with respect to any Plan which might
         constitute grounds for a termination of such Plan under Title IV of
         ERISA, or knows that the plan administrator of any Plan has given or is
         required to give notice of any such reportable event, a copy of the
         notice of such reportable event given or required to be given to the
         PBGC; (ii) receives notice of complete or partial withdrawal liability
         under Title IV of ERISA or notice that any Multiemployer Plan is in
         reorganization, is insolvent or has been terminated, a copy of such
         notice, (iii) receives notice from the PBGC under Title IV of ERISA of
         an intent to terminate, impose liability (other than for premiums under
         Section 4007 of ERISA) in respect of, or appoint a trustee to
         administer any Plan, a copy of such notice; (iv) applies for a waiver
         of the minimum funding standard under Section 412 of the Internal
         Revenue Code, a copy of such application; (v) gives notice of intent to
         terminate any Plan under Section 404 l(c) of ERISA, a copy of such
         notice and other information filed with the PBGC; (vi) gives notice of
         withdrawal from any Plan pursuant to Section 4063 of ERISA, a copy of
         such notice; or (vii) fails to make any payment or contribution to any
         Plan or Multiemployer Plan or in respect of any Benefit Arrangement or
         makes any amendment to any Plan or Benefit Arrangement which has
         resulted or could result in the imposition of a Lien or the posting of
         a bond or other security, a certificate of the chief financial officer
         or the treasurer of the Company setting forth details as to such
         occurrence and action, if any, which the Company or applicable member
         of the ERISA Group is required or proposes to take; provided that no
         such certificate shall be required unless the aggregate unpaid actual
         or potential liability of members of the ERISA Group involved in all
         events referred to in clauses (i) through (vii) above of which officers
         of the Company have obtained knowledge and have not previously reported
         under this clause (G) exceeds $25,000,000;

                  (H)      promptly and in any event not more than 5 days after
         any officer of the Company becomes aware of the occurrence of any event
         which would cause the representations and warranties set forth in
         Section 4.11 to be in breach as of such date, a certificate of the
         chief financial officer or treasurer of the Company setting forth
         details

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         as to such occurrence and action, if any, which the Company or
         applicable Subsidiary of the Company is required or proposes to take;

                  (I)      immediately after any officer of the Company obtains
         knowledge of a change in the rating of the Company's outstanding senior
         unsecured long-term debt securities by Moody's or S&P, a certificate of
         the chief financial officer or treasurer of the Company setting forth
         the details thereof; and

                  (J)      from time to time such additional information
         regarding the financial position or business of the Company as the
         Agent, at the request of any Bank, may reasonably request.

                  SECTION 5.02. Financial Covenants.

                  (A)      Minimum Consolidated Net Worth. At no time will
         Consolidated Net Worth be less than Minimum Consolidated Net Worth.
         "Minimum Consolidated Net Worth" means $2,650,000,000, as such amount
         has been adjusted under the Original Credit Agreement at the end of
         each Fiscal Quarter commencing with the Fiscal Quarter ending on March
         31, 2001 and continuing through the Fiscal Quarter Ending on June 30,
         2002, and shall continue to be adjusted at the end of each Fiscal
         Quarter commencing with the Fiscal Quarter ending on September 30,
         2002, as follows:

                           (i)      increased by 33% of Consolidated Net Income
                  for such Fiscal Quarter; provided that, if Consolidated Net
                  Income for such Fiscal Quarter is a negative number (a
                  "Consolidated Net Loss"), an amount up to 33% of such
                  Consolidated Net Loss shall be applied first to reduce Minimum
                  Consolidated Net Worth to the extent of offsetting prior
                  increases (if any) in Minimum Consolidated Net Worth made
                  pursuant to this clause (i) during the same Fiscal Year and
                  second to reduce (but not below zero) any future increase in
                  Minimum Consolidated Net Worth that would otherwise be made
                  pursuant to this clause (i) during the same Fiscal Year; and

                           (ii)     increased by an amount equal to 50% of all
                  increases in Consolidated Net Worth during such Fiscal Quarter
                  attributable to sales or issuances of the Company's Equity
                  Securities; provided that an amount up to 50% of all decreases
                  in Consolidated Net Worth during such Fiscal Quarter
                  attributable to purchases or other retirements of the
                  Company's Equity Securities shall be applied first to offset
                  any increase in Minimum Consolidated Net Worth that would
                  otherwise be made pursuant to this clause (ii) at the end of
                  such Fiscal Quarter, second to reduce Minimum Consolidated Net
                  Worth to the extent of offsetting prior increases (if any) in
                  Minimum Consolidated Net Worth made pursuant to this clause
                  (ii) and third to reduce (but not below zero) any future
                  increase in Minimum Consolidated Net Worth that would
                  otherwise be made pursuant to this clause (ii).

                  (B)      Maximum Debt to Capitalization. At no time will the
         ratio of (i) Consolidated Debt to (ii) the sum of Consolidated Debt and
         Consolidated Adjusted Net

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         Worth exceed 55%; provided, however, that for the purposes of the
         limitations provided in, and computations under, this Section 5.02(B),
         "Debt" shall not include any Debt that is exempt from the incurrence
         tests in Sections 5.03(A) and (B) as a result of the application of
         Section 5.03(C) or (D).

The foregoing covenants will be tested on a consolidated basis as of the end of
each Fiscal Quarter.

                  SECTION 5.03. Limitations on Debt.

                  (A)      The Company will not at any time, and will not suffer
         or permit any Consolidated Subsidiary at any time to, create, incur,
         issue, guarantee or assume any Debt if, immediately after giving effect
         thereto, the ratio of (i) Consolidated Debt to (ii) the sum of
         Consolidated Debt and Consolidated Adjusted Net Worth would exceed 55%.

                  (B)      The Company will not at any time suffer or permit any
         Consolidated Subsidiary to create, incur, issue, guarantee or assume
         any Debt if, immediately after giving effect thereto, the aggregate
         outstanding amount (determined at that time) of Debt of all
         Consolidated Subsidiaries (other than Debt owed to the Company or one
         or more other Consolidated Subsidiaries) would exceed 30% of
         Consolidated Net Worth.

                  (C)      Subsections (A) and (B) above shall not prevent (i)
         the Company from creating, incurring, issuing, guaranteeing or assuming
         Debt for the purpose of extending, renewing or Refunding (as such term
         is defined in this subsection) an equal or greater principal amount of
         Debt then outstanding of the Company or of Debt then outstanding of a
         Consolidated Subsidiary, or (ii) a Consolidated Subsidiary from
         creating, incurring, issuing, guaranteeing or assuming Debt for the
         purpose of extending, renewing or Refunding an equal or greater
         principal amount of Debt then outstanding of such Consolidated
         Subsidiary, or (iii) the creation, incurrence, issuance, guarantee or
         assumption of Debt owed to or owned by the Company or a Consolidated
         Subsidiary; provided, that in no event shall the aggregate principal
         amount of any such extending, renewing or Refunding Debt under clause
         (i) or (ii) above exceed the aggregate principal amount of the Debt
         being extended, renewed or Refunded. For purposes of this subsection
         (C), Debt is deemed to be for the purpose of "Refunding" other Debt if
         and to the extent that (i) no later than 5 Domestic Business Days after
         the refunding Debt is incurred, the Company delivers to the Agent
         written notice stating that the purpose of such Debt is to refund
         outstanding Debt and specifying the Debt to be refunded, (ii) the
         proceeds of such refunding Debt are held in the form of cash or High
         Quality Investments (free of any Lien except a Lien securing the
         specified Debt to be refunded) until such specified Debt is repaid and
         (iii) such specified Debt to be refunded is repaid within 45 days after
         the refunding Debt is incurred.

                  (D)      For purposes of the limitations provided in, and
         computations under, Sections 5.03(A) and (B), (i) when an entity
         becomes a Consolidated Subsidiary it shall be deemed to create at such
         time all the Debt it has outstanding immediately after such time
         (provided that, if after giving effect to this clause (i), the
         aggregate outstanding amount of Debt of all Consolidated Subsidiaries
         (other than Debt owed to the Company

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         or one or more other Consolidated Subsidiaries) would be greater than
         30% but less than 60% of Consolidated Net Worth, this clause (i) shall
         not apply at the time such entity becomes a Consolidated Subsidiary,
         but such entity shall be deemed to create on the 15th day after it
         becomes a Consolidated Subsidiary all the Debt it has outstanding on
         such 15th day), (ii) the disposition (other than to a Consolidated
         Subsidiary or the Company) by the Company or a Subsidiary of capital
         stock of any Consolidated Subsidiary which holds Debt of the Company or
         any other Consolidated Subsidiary so that the Consolidated Subsidiary
         ceases to be a Consolidated Subsidiary after such disposition shall be
         deemed the creation of such Debt, and (iii) the disposition (other than
         to a Consolidated Subsidiary or the Company) of Debt of the Company or
         any Consolidated Subsidiary by any Consolidated Subsidiary or the
         Company shall be deemed the creation of such Debt.

                  SECTION 5.04. Negative Pledge. Neither the Company nor any
Consolidated Subsidiary will create, assume or suffer to exist any Lien on any
asset now owned or hereafter acquired by it, except:

                  (A)      Liens existing on June 30, 2000 securing Debt
         outstanding on June 30, 2000 in an aggregate principal amount not
         exceeding $50,000,000;

                  (B)      any Lien existing on any asset of any entity at the
         time such entity becomes a Consolidated Subsidiary and not created in
         contemplation of such event;

                  (C)      any Lien on any asset securing Debt incurred or
         assumed solely for the purpose of financing all or any part of the cost
         of acquiring such asset (or acquiring a corporation or other entity
         which owned such asset); provided that such Lien attaches to such asset
         concurrently with or within 90 days after such acquisition;

                  (D)      any Lien on any asset of any entity existing at the
         time such entity is merged or consolidated with or into the Company or
         a such Consolidated Subsidiary and not created in contemplation of such
         event;

                  (E)      any Lien existing on any asset prior to the
         acquisition thereof by the Company or a Consolidated Subsidiary and not
         created in contemplation of such acquisition;

                  (F)      any Lien arising out of the refinancing, extension,
         renewal or refunding of any Debt secured by any Lien permitted by any
         of the foregoing clauses of this Section; provided that such Debt is
         not increased and is not secured by any additional assets;

                  (G)      any Lien in favor of the holder of indebtedness (or
         any Person or entity acting for or on behalf of such holder) arising
         pursuant to any order of attachment, distraint or similar legal process
         arising in connection with court proceedings so long as the execution
         or other enforcement thereof is effectively stayed and the claims
         secured thereby are being contested in good faith by appropriate
         proceedings and no Default under Section 6.01 (J) shall have occurred
         and is continuing in connection therewith;

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                  (H)      Liens incidental to the normal conduct of its
         business or the ownership of its assets which (i) do not secure Debt,
         (ii) do not secure any obligation in an amount exceeding $100,000,000
         and (iii) do not in the aggregate materially detract from the value of
         the assets of the Company and its Consolidated Subsidiaries taken as a
         whole or in the aggregate materially impair the use thereof in the
         operation of the business of the Company and its Consolidated
         Subsidiaries taken as a whole; and

                  (I)      Liens securing Debt which are not otherwise permitted
         by the foregoing clauses of this Section; provided that (i) the
         aggregate outstanding principal amount of Debt secured by all such
         Liens on current assets shall not at any time exceed 20% of
         Consolidated Current Assets and (ii) the aggregate outstanding
         principal amount of Debt secured by all such Liens (including Liens
         referred to in clause (i) of this proviso) shall not at any time exceed
         the sum of (A) 20% of Consolidated Current Assets plus (B) 3% of
         Consolidated Net Worth.

                  SECTION 5.05. Consolidations, Mergers and Sale of Assets.

                  (A)      Neither the Company nor Masco Europe will directly or
         indirectly sell, lease, transfer or otherwise dispose of all or
         substantially all of its assets, or merge or consolidate with any other
         Person, or acquire any other Person through purchase of assets or
         capital stock, unless either (i) the Company or Masco Europe, as
         applicable, shall be the continuing or surviving corporation or (ii)
         the successor or acquiring corporation (if other than the Company or
         Masco Europe, as applicable) shall be a corporation organized under the
         laws of (x) one of the States of the United States of America in the
         case of a merger or consolidation of the Company, or (y) the Grand
         Duchy of Luxembourg in the case of a merger or consolidation of Masco
         Europe, and shall assume, by a writing satisfactory in form and
         substance to the Required Banks, all of the obligations of the Company
         or Masco Europe, as applicable, under this Agreement and the Notes,
         including all covenants herein and therein contained, in which case
         such successor or acquiring corporation shall succeed to and be
         substituted for the Company or Masco Europe, as applicable, with the
         same effect as if it had been named herein as a party hereto.

                  (B)      No disposition of assets, merger, consolidation or
         acquisition referred to in subsection (A) of this Section shall be
         permitted if, immediately after giving effect thereto, the Company
         would be in Default under any of the terms or provisions of this
         Agreement.

                  SECTION 5.06. Compliance with Laws. The Company will comply,
and cause each Subsidiary to comply, in all material respects with all
applicable laws, ordinances, rules, regulations, and requirements of
governmental authorities (including, without limitation, Environmental Laws and
ERISA and the rules and regulations thereunder) except where (i) the necessity
of compliance therewith is contested in good faith by appropriate proceedings,
(ii) no officer of the Company is aware that the Company or any Subsidiary has
failed to comply therewith or (iii) the Company has reasonably concluded that
failure to comply is not likely to have a material adverse effect on the
business, financial position or results of operations the Company and its
Consolidated Subsidiaries, taken as a whole.

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                  SECTION 5.07. Use of Proceeds. The Borrowers shall use the
proceeds of the Loans to provide funds for general corporate purposes,
including, commercial paper liquidity, acquisitions, refinancing of Debt and
working capital purposes. None of the proceeds of the Loans made under this
Agreement will be used in violation of any applicable law or regulation
(including, without limitation, Regulation T, U or X of the Board of Governors
of the Federal Reserve System).

                  SECTION 5.08. Insurance. The Company and its Consolidated
Subsidiaries considered as a whole will maintain with financially sound and
reputable insurance companies insurance in such amounts and covering such risks
as is consistent with sound business practice, and the Company will furnish to
the Agent upon request full information as to the insurance carried; provided,
that the Company and its Subsidiaries may self-insure to the extent the Company
reasonably determines that such self insurance is consistent with prudent
business practice.

                  SECTION 5.09. Inspection. The Company will, and will cause
each Subsidiary to, permit the Agent, by its representatives and agents, to
inspect any of the property, books and financial records of the Company and each
Subsidiary, to examine and make copies of the books of accounts and other
financial records of the Company and each Subsidiary, and to discuss the
affairs, finances and accounts of the Company and each Subsidiary with, and to
be advised as to the same by, their respective officers at such times and
intervals, having due regard for the ongoing business of the Company and its
Subsidiaries, as the Agent may reasonably request.

                              ARTICLE VI: DEFAULTS

                  SECTION 6.01. Events of Default. If one or more of the folio
wing events ("Events of Default") shall have occurred and be continuing:

                  (A)      any Borrower shall fail to pay when due any principal
         of any Loan, or shall fail to pay within five days of the due date
         thereof any interest or fees payable under this Agreement;

                  (B)      the Company shall fail to observe or perform any
         covenant contained in Sections 5.02 to 5.05, inclusive;

                  (C)      the Company or Masco Europe shall fail to observe or
         perform any covenant or agreement contained in this Agreement (other
         than those covered by clause (A) or (B) above) for 30 days after
         written notice thereof has been given to the Company by the Agent at
         the request of any Bank;

                  (D)      any representation, warranty, certification or
         statement made by the Company or Masco Europe in this Agreement or any
         amendment hereof or in any certificate, financial statement or other
         document delivered pursuant to this Agreement shall prove to have been
         incorrect in any material respect when made or deemed to have been
         made; provided that, if any representation and warranty deemed to have
         been made by the Company or Masco Europe pursuant to the last sentence
         of Section 3.03 as to the satisfaction of the condition of borrowing
         set forth in clause (C)(i) of Section 3.03 shall have been incorrect
         solely by reason of the existence of an Event of Default of which the

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         Company was not aware when such representation and warranty was deemed
         to have been made and which was cured before or promptly after the
         Company became aware thereof, then such representation and warranty
         shall be deemed not to have been incorrect in any material respect;

                  (E)      the Company or any of its Consolidated Subsidiaries
         shall fail to make one or more payments in respect of any Material Debt
         (other than Acquired Debt in an aggregate outstanding principal amount
         not exceeding $75,000,000) when due or within any applicable grace
         period, and such failure has not been waived;

                  (F)      the Company or any Consolidated Subsidiary shall fail
         to observe or perform any term, covenant or agreement contained in (i)
         any instrument or agreement (other than this Agreement) by which it is
         bound relating to Debt (other than Acquired Debt in an aggregate
         outstanding principal amount not exceeding $75,000,000) or (ii) the
         5-Year Revolving Credit Agreement, or any other event or condition
         referred to therein shall occur (including, without limitation, any
         "Default" or "Termination Event" as defined therein), and the effect of
         all such failures, events and conditions (each a "default") is to cause
         the maturity of any Material Debt to be accelerated or to permit (any
         applicable period of grace having expired and any required notice
         having been given) the holder or holders of any Material Debt (or any
         Person acting on their behalf) to accelerate the maturity thereof;

                  (G)      the Company or any Significant Subsidiary shall
         commence a voluntary case or other proceeding seeking liquidation,
         reorganization or other relief with respect to itself or its debts
         under any bankruptcy, insolvency or other similar law now or hereafter
         in effect or seeking the appointment of a trustee, receiver,
         liquidator, custodian or other similar official of it or any
         substantial part of its property under any such law, or shall consent
         to any such relief or to the appointment of or taking possession by any
         such official in an involuntary case or other proceeding commenced
         against it under any such law, or shall make a general assignment for
         the benefit of creditors, or shall fail generally to pay its debts as
         they become due, or a resolution shall be adopted by either the
         shareholders or the board of directors of such corporation to authorize
         any of the foregoing;

                  (H)      an involuntary case or other proceeding shall be
         commenced against the Company or any Significant Subsidiary in any
         United States Federal court or other court of competent jurisdiction
         seeking liquidation, reorganization or other relief with respect to it
         or its debts under any bankruptcy, insolvency or other similar law now
         or hereafter in effect or seeking the appointment of a trustee,
         receiver, liquidator, custodian or other similar official of it or any
         substantial part of its property under any such law, and in each case
         such involuntary case or other proceeding shall remain undismissed and
         unstayed for a period of 60 days; or an order for relief shall be
         entered against the Company or any Significant Subsidiary as debtors
         under the federal bankruptcy laws as now or hereafter in effect;

                  (I)      any member of the ERISA Group shall fail to pay when
         due an amount or amounts aggregating in excess of $1,000,000 which it
         shall have become liable to pay to

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         the PBGC or to a Plan under Title IV of ERISA; or notice of intent to
         terminate a Plan or Plans having aggregate Unfunded Liabilities in
         excess of $50,000,000 (collectively, a "Material Plan") shall be filed
         under Title IV of ERISA by any member of the ERISA Group, any plan
         administrator or any combination of the foregoing; or the PBGC shall
         institute proceedings under Title IV of ERISA to terminate, to impose
         liability (other than for premiums under Section 4007 of ERISA) in
         respect of, or to cause a trustee to be appointed to administer any
         Material Plan; or a condition shall exist by reason of which the PBGC
         would be entitled to obtain a decree adjudicating that any Material
         Plan must be terminated; or there shall occur a complete or partial
         withdrawal from, or a default, within the meaning of Section 4219(c)(5)
         of ERISA, with respect to, one or more Multiemployer Plans which could
         cause one or more members of the ERISA Group to incur a current payment
         obligation in excess of $50,000,000 or; the institution by the PBGC or
         any similar foreign governmental authority of proceedings to terminate
         a Foreign Pension Plan which could reasonably be expected to subject
         the Company and its Subsidiaries, taken as a whole, to liability in
         excess of $50,000,000 (a "Material Foreign Pension Plan"); or a foreign
         governmental authority shall appoint or institute proceedings to
         appoint a trustee to administer any Material Foreign Pension Plan in
         place of the existing administrator; provided that no Event of Default
         shall exist under this clause (I) with respect to any Prior Plan unless
         it is reasonably likely that one or more members of the ERISA Group is
         liable with respect to the relevant Unfunded Liabilities or current
         payment obligation, as the case may be;

                  (J)      a judgment or order for the payment of money in
         excess of $25,000,000 shall be rendered against the Company or any
         Subsidiary and such judgment or order shall continue unsatisfied and
         unstayed for a period of 45 days; or

                  (K)      any person or group of persons (within the meaning of
         Section 13 or 14 of the Securities Exchange Act of 1934, as amended)
         shall have acquired beneficial ownership (within the meaning of Rule
         13d-3 promulgated by the Securities and Exchange Commission under said
         Act) of 30% or more of the outstanding shares of common stock of the
         Company; or Continuing Directors shall cease to constitute a majority
         of the board of directors of the Company; or the Company shall cease to
         be (directly or through its wholly-owned Subsidiaries) the "beneficial
         owner" (as defined in Rules 13d-3 and 13d-5 promulgated by the
         Securities and Exchange Commission under the Act) directly or
         indirectly of at least 100% of the voting power of the outstanding
         capital stock of Masco Europe ordinarily having the right to vote at an
         election of directors;

then, and in every such event, the Agent shall if requested by the Required
Banks, by notice to the Borrowers, (i) terminate the Commitments and they shall
thereupon terminate, and (ii) declare the Loans (together with accrued interest
thereon) to be, and the Loans shall thereupon become, immediately due and
payable without presentment, demand, protest or other notice of any kind, all of
which are hereby waived by the Borrowers; provided that in the case of any of
the Events of Default specified in clause (G) or (H) above with respect to the
Company or any Significant Subsidiary, without any notice to any Borrower or any
other act by the Agent or the Banks, the Commitments shall thereupon terminate
and the Loans (together with accrued interest

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thereon) shall become immediately due and payable without presentment, demand,
protest or other notice of any kind, all of which are hereby waived by the
Borrowers.

                  SECTION 6.02. Notice of Default. The Agent shall give notice
to the Company under Section 6.01 (C) promptly upon being requested to do so by
any Bank and shall thereupon notify all the Banks thereof.

                             ARTICLE VII: THE AGENT

                  SECTION 7.01. Appointment and Authorization. Each Bank
irrevocably appoints and authorizes the Agent to take such action as agent on
its behalf and to exercise such powers under this Agreement and the Notes as are
delegated to the Agent by the terms hereof or thereof, together with all such
powers as are reasonably incidental thereto.

                  SECTION 7.02. Agent and Affiliates. Bank One shall have the
same rights and powers under this Agreement as any other Bank and may exercise
or refrain from exercising the same as though it were not the Agent, and Bank
One and its affiliates may accept deposits from, lend money to, and generally
engage in any kind of business with the Company or any Subsidiary or affiliate
of the Company as if it were not the Agent hereunder.

                  SECTION 7.03. Action by Agent. The obligations of the Agent
hereunder are only those expressly set forth herein. Without limiting the
generality of the foregoing, the Agent shall not be required to take any action
with respect to any Default, except as expressly provided in Article VI.

                  SECTION 7.04. Consultation with Experts. The Agent may consult
with legal counsel (who may be counsel for the Company), independent public
accountants and other experts selected by it and shall not be liable for any
action taken or omitted to be taken by it in good faith in accordance with the
advice of such counsel, accountants or experts.

                  SECTION 7.05. Liability of Agent. Neither the Agent nor any of
its directors, officers, agents or employees shall be liable (i) to the Banks
for any action taken or not taken by such Person in connection herewith with the
consent or at the request of the Required Banks or all Banks, if applicable, or
(ii) to the Banks or any Borrower for any action taken or not taken by such
Person in the absence of such Person's own gross negligence or willful
misconduct. Neither the Agent, the Arrangers nor any of their directors,
officers, agents or employees shall be responsible for or have any duty to
ascertain, inquire into or verify (i) any statement, warranty or representation
made in connection with this Agreement or any borrowing hereunder; (ii) the
performance or observance of any of the covenants or agreements of the
Borrowers; (iii) the satisfaction of any condition specified in Article III,
except receipt of items required to be delivered to the Agent; or (iv) the
validity, effectiveness or genuineness of this Agreement, the Notes or any other
instrument or writing furnished in connection herewith. The Agent shall not
incur any liability by acting in reliance upon any notice, consent, certificate,
statement or other writing (which may be a bank wire, telex or similar writing)
believed by it to be genuine or to be signed by the proper party or parties.

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                  SECTION 7.06. Indemnification. Each Bank shall, ratably in
accordance with its Commitment, indemnify the Agent (to the extent not
reimbursed by the Borrowers) against any cost, expense (including counsel fees
and disbursements), claim, demand, action, loss or liability (except such as
result from the Agent's gross negligence or willful misconduct) that the Agent
may suffer or incur in connection with this Agreement or any action taken or
omitted by the Agent hereunder.

                  SECTION 7.07. Credit Decision. Each Bank acknowledges that it
has, independently and without reliance upon the Agent or any other Bank, and
based on such documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Agreement. Each Bank also
acknowledges that it will, independently and without reliance upon the Agent or
any other Bank, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking any action under this Agreement.

                  SECTION 7.08. Successor Agent. The Agent may resign at any
time by giving written notice thereof to the Banks and the Borrowers. Upon any
such resignation, the Required Banks shall have the right to appoint a successor
Agent. If no successor Agent shall have been so appointed by the Required Banks,
and shall have accepted such appointment, within 30 days after the retiring
Agent gives notice of resignation, then the retiring Agent may, on behalf of the
Banks, appoint a successor Agent, which shall be a commercial bank organized or
licensed under the laws of the United States of America or of any State thereof
and having a combined capital and surplus of at least $250,000,000. Upon the
acceptance of its appointment as Agent hereunder by a successor Agent, such
successor Agent shall thereupon succeed to and become vested with all the rights
and duties of the retiring Agent, and the retiring Agent shall be discharged
from its duties and obligations hereunder. After any retiring Agent's
resignation hereunder as Agent, the provisions of this shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was Agent.

                  SECTION 7.09. Agent's and Arrangers' Fees. The Company shall
pay to each of the Agent and the Arrangers for their own account such fees as
agreed upon between the Company, the Agent and the Arrangers and set forth in a
separate fee letter among the Agent, the Syndication Agent, the Arrangers and
the Company.

                  SECTION 7.10. Agent, Arrangers, Documentation Agents,
Syndication Agent, Senior Managing Agents, Co-Agent. None of the Agent, the
Arrangers, the Documentation Agents, Syndication Agent, Senior Managing Agents
or Co-Agent shall have any right, power, obligation, liability, responsibility
or duty under this Agreement other than those applicable to all Banks as such.
Without limiting the foregoing, none of such Banks or the Agent shall have or be
deemed to have a fiduciary relationship with any Bank. Each Bank hereby makes
the same acknowledgments with respect to such Banks as it makes with respect to
the Agent in Section 7.07.

                      ARTICLE VIII: CHANGE IN CIRCUMSTANCES

                  SECTION 8.01. Basis for Determining Interest Rate Inadequate
or Unfair. If on or prior to the first day of any Interest Period for any
Eurodollar Borrowing:

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                  (A)      the Agent determines that deposits in Dollars (in the
         applicable amounts) are not being offered in the relevant market for
         such Interest Period, or

                  (B)      the Required Banks advise the Agent that the
         Eurodollar Reference Rate, as determined by the Agent, will not
         adequately and fairly reflect the cost to such Banks of funding their
         Eurodollar Loans for such Interest Period,

the Agent shall forthwith give notice thereof to the Borrowers and the Banks,
whereupon until the Agent notifies the Borrowers that the circumstances giving
rise to such suspension no longer exist, (x) the obligations of the Banks to
make, continue or convert Eurodollar Loans shall be suspended, and (y) each
affected Loan shall be converted into a Floating Rate Loan on the last day of
the then current Interest Period applicable thereto. Unless the relevant
Borrower notifies the Agent at least two Domestic Business Days before the date
of any such Eurodollar Borrowing for which a Notice of Borrowing has previously
been given that it elects not to borrow on such date, such Borrowing shall
instead be made as a Floating Rate Borrowing.

                  SECTION 8.02. Illegality. If, after the Closing Date, the
adoption of any applicable law, rule or regulation, or any change therein, or
any change in the interpretation or administration thereof by any governmental
authority, central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by any Bank (or its Eurodollar Lending
Office) with any request or directive (whether or not having the force of law)
of any such authority, central bank or comparable agency shall make it unlawful
or impossible for any Bank (or its Eurodollar Lending Office) to honor its
binding legal obligation hereunder to make, maintain or fund its Eurodollar
Loans to any Borrower and such Bank shall so notify the Agent, the Agent shall
forthwith give notice thereof to the other Banks and the Borrowers, whereupon
until such Bank notifies the Borrowers and the Agent that the circumstances
giving rise to such suspension no longer exist, the obligation of such Bank to
make Eurodollar Loans to such Borrower or to continue outstanding Loans to such
Borrower as Eurodollar Loans shall be suspended. Before giving any notice to the
Agent pursuant to this Section, such Bank shall designate a different Eurodollar
Lending Office if such designation will avoid the need for giving such notice
and will not, in the judgment of such Bank, be otherwise disadvantageous to such
Bank. After giving such notice, such Loan of such Bank then outstanding shall be
converted to a Floating Rate Loan either (a) on the last day of the then current
Interest Period applicable to such Loan if such Bank may lawfully continue to
maintain and fund such Loan as a Eurodollar Loan in Dollars to such day or (b)
immediately if such Bank shall determine that it may not lawfully continue to
maintain and fund such loan as a Eurodollar Loan in Dollars to such day.
Interest and principal on any such Floating Rate Loan shall be payable on the
same dates as, and on a pro rata basis with, the interest and principal payable
on the related Eurodollar Loans of the other Banks.

                  SECTION 8.03. Increased Cost and Reduced Return.

                  (A)      If on or after the Closing Date, the adoption of any
         applicable law, rule or regulation, or any change therein, or any
         change in the interpretation or administration thereof by any
         governmental authority, central bank or comparable agency charged with
         the interpretation or administration thereof, or compliance by any Bank
         (or its Applicable

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         Lending Office) with any request or directive (whether or not having
         the force of law) of any such authority, central bank or comparable
         agency (a "Change in Law"):

                           (i)      shall subject any Bank (or its Applicable
                  Lending Office) to any tax, duty or other charge with respect
                  to its Eurodollar Loans, its Note or its obligation to make
                  Eurodollar Loans, or shall change the basis of taxation of
                  payments to any Bank (or its Applicable Lending Office) of the
                  principal of or interest on its Eurodollar Loans, or any other
                  amounts due under this Agreement in respect of its Eurodollar
                  Loans, or its obligation to make Eurodollar Loans (except for
                  changes in the rate of tax on the overall net income of such
                  Bank or its Applicable Lending Office or franchise or similar
                  taxes imposed by the United States of America or any State or
                  political subdivision thereof or imposed by the jurisdiction
                  in which such Bank's principal executive office or Applicable
                  Lending Office is located); or

                           (ii)     shall impose, modify or deem applicable any
                  reserve (including, without limitation, any such requirement
                  imposed by the Board of Governors of the Federal Reserve
                  System, but excluding, with respect to any Eurodollar Loan,
                  any such requirement included in an applicable Eurodollar
                  Reserve Percentage, associated cost rate or other applicable
                  reserve rate), special deposit, insurance assessment or
                  similar requirement against assets of, deposits with or for
                  the account of, or credit extended by, any Bank (or its
                  Applicable Lending Office) or shall impose on any Bank (or its
                  Applicable Lending Office) or on the United States market for
                  certificates of deposit or the London interbank market any
                  other condition affecting its Eurodollar Loans, its Note or
                  its obligation to make Eurodollar Loans;

         and the result of any of the foregoing is to increase the cost to such
         Bank (or its Applicable Lending Office) of making or maintaining any
         Eurodollar Loan, or to reduce the amount of any sum received or
         receivable by such Bank (or its Applicable Lending Office) under this
         Agreement or under its Note with respect thereto, by an amount deemed
         by such Bank to be material, then, within 15 days after demand by such
         Bank (with a copy to the Agent), the relevant Borrower shall pay to
         such Bank such additional amount or amounts as will compensate such
         Bank for such increased cost or reduction; provided that, such Bank
         shall not be entitled to such compensation for increased costs or
         reductions incurred more than 90 days prior to the date on which it
         actually demands (or notifies the relevant Borrower that it will
         demand) such compensation, provided, further that if the Change in Law
         giving rise to such increased costs or reductions is retroactive, then
         the 90-day period referred to above shall be extended to include the
         period of retroactive effect. If any Bank demands compensation under
         this subsection (A), the relevant Borrower may at any time, upon at
         least five Eurodollar Business Days' prior notice to such Bank through
         the Agent, prepay in full each then outstanding affected Eurodollar
         Loan of such Bank, together with accrued interest thereon to the date
         of prepayment. Concurrently with prepaying each such Eurodollar Loan of
         such Bank, such Borrower shall borrow a Floating Rate Loan in an equal
         principal amount from such Bank for an Interest Period coinciding with
         the remaining term of the Interest Period

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         applicable to such Eurodollar Loan, and such Bank shall make such a
         Loan notwithstanding any provision herein to the contrary.

                  (B)      If any Bank shall have determined that, after the
         Closing Date, the adoption of any applicable law, rule or regulation
         regarding capital adequacy, or any change therein, or any change in the
         interpretation or administration thereof by any governmental authority,
         central bank or comparable agency charged with the interpretation or
         administration thereof, or any request or directive regarding capital
         adequacy (whether or not having the force of law) of any such
         authority, central bank or comparable agency, has or would have the
         effect of reducing the rate of return on capital of such Bank (or its
         Parent) as a consequence of such Bank's obligations hereunder to a
         level below that which such Bank (or its Parent) could have achieved
         but for such adoption, change, request or directive (taking into
         consideration its policies with respect to capital adequacy) by an
         amount deemed by such Bank to be material, then from time to time,
         within 15 days after demand by such Bank (with a copy to the Agent),
         the Company shall pay to such Bank such additional amount or amounts as
         will compensate such Bank (or its Parent) for such reduction; provided
         that such Bank shall not be entitled to such compensation for
         reductions incurred more than 90 days prior to the date on which it
         actually demands (or notifies the Company that it will demand) such
         compensation, provided, further that if the Change in Law giving rise
         to such reductions in retroactive, then the 90-day period referred to
         above shall be extended to include the period of retroactive effect
         thereof.

                  (C)      Each Bank will promptly notify the Borrowers and the
         Agent of any event of which it has knowledge, occurring after the
         Closing Date, which will entitle such Bank to compensation pursuant to
         this Section and will designate a different Applicable Lending Office
         if such designation will avoid the need for, or reduce the amount of,
         such compensation and will not, in the judgment of such Bank, be
         otherwise disadvantageous to such Bank. A certificate of any Bank
         claiming compensation under this Section and setting forth the
         additional amount or amounts to be paid to it hereunder shall be
         conclusive in the absence of manifest error, provided that the
         determination of such amount or amounts is made on a reasonable basis.
         In determining such amount, such Bank may use any reasonable averaging
         and attribution methods.

                  SECTION 8.04. Substitute Loans. If (i) the obligation of any
Bank to make Eurodollar Loans has been suspended pursuant to Section 8.02 or
(ii) any Bank has demanded compensation under Section 8.03 and the Company
shall, by at least five Eurodollar Business Days' prior notice to such Bank
through the Agent, have elected that the provisions of this Section 8.04 shall
apply to such Bank, then, unless and until such Bank notifies the Company and
the Agent that the circumstances giving rise to such suspension or demand for
compensation no longer apply, all Loans which would otherwise be made by such
Bank as (or continued as or converted to) Eurodollar Loans shall be made instead
as Floating Rate Loans (on which interest and principal shall be payable
contemporaneously with the related Eurodollar Loans of the other Banks, as
applicable). If such Bank notifies the Company that the circumstances giving
rise to such suspension or demand for compensation no longer exist, the
principal amount of each such Floating Rate Loan made in substitution of a
Eurodollar Loan shall be converted into a

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Eurodollar Loan on the first day of the next succeeding Interest Period
applicable to the related Eurodollar Loans of the other Banks.

                  SECTION 8.05. Substitution of Bank. If (i) any Bank shall have
failed to fund its pro rata share of any Loan requested by any Borrower
hereunder which such Bank is obligated to fund under the terms of this Agreement
and which failure has not been cured, (ii) the obligation of any Bank to make
Eurodollar Loans has been suspended pursuant to Section 8.02 or (iii) any Bank
has demanded compensation under Section 2.11(D) or Section 8.03, (any such Bank
affected by clauses (i), (ii) or (iii), herein an "Affected Bank"), the Company
shall have the right, with the assistance of the Agent, to seek a mutually
satisfactory substitute financial institution or institutions (which may be one
or more of the Banks) to purchase the Loans and Notes and assume the Commitment
of such Bank in accordance with the provisions of Section 9.06(C) and the
Company may make written demand on such Affected Bank (with a copy to the Agent)
for the Affected Bank to assign, and such Affected Bank shall use commercially
reasonable efforts to assign pursuant to one or more duly executed Assignment
and Assumption Agreements five (5) Eurodollar Business Days after the date of
such demand, to one or more financial institutions which the Company or the
Agent, as the case may be, shall have engaged for such purpose ("Replacement
Bank"), all of such Affected Bank's rights and obligations under this Agreement
and the other instruments, documents and agreements delivered or executed from
time to time in connection herewith (including, without limitation, its
Commitment and all Loans owing to it) in accordance with Section 9.06(C). No
such assignment by an Affected Bank shall be required unless with respect to
such assignment the Affected Bank shall have concurrently received, in cash, all
amounts due and owing to the Affected Bank hereunder or under any other
instruments, documents and agreements delivered or executed from time to time in
connection herewith, including, without limitation, the aggregate outstanding
principal amount of the Loans owed to such Bank, together with accrued interest
and fees through the date of such assignment, amounts payable under Sections
2.11(D), 2.12, 8.03 and 9.03 with respect to such Affected Bank and compensation
payable under Section 2.07.

                            ARTICLE IX: MISCELLANEOUS

                  SECTION 9.01. Notices. All notices, requests and other
communications to any party hereunder shall be in writing (including bank wire,
telex, facsimile or similar writing) and shall be given to such party: (x) in
the case of any Borrower or the Agent, at its address or its facsimile or telex
number set forth on the signature pages hereof, (y) in the case of any Bank, at
its address or its facsimile or telex number set forth in its Administrative
Questionnaire or (z) in the case of any party, such other address or facsimile
or telex number as such party may hereafter specify for the purpose by notice to
the Agent and the Borrowers. Each such notice, request or other communication
shall be effective (i) if given by telex, when such telex is transmitted to the
telex number specified in this Section 9.01 and the appropriate answerback is
received, (ii) if given by mail, 72 hours after such communication is deposited
in the mails with first class postage prepaid, addressed as aforesaid or (iii)
if given by any other means, when delivered at the address specified in this
Section 9.01: provided that notices to the Agent under Article II or Article
VIII shall not be effective until received.

                  SECTION 9.02. No Waivers. No failure or delay by the Agent or
any Bank in exercising any right, power or privilege hereunder or under any Note
shall operate as a waiver

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thereof nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right, power or privilege.
The rights and remedies herein provided shall be cumulative and not exclusive of
any rights or remedies provided by law.

                  SECTION 9.03. Expenses; Documentary Taxes; Indemnification.

                  (A)      The Company shall pay (i) all reasonable
         out-of-pocket expenses of the Agent and the Arrangers, including
         reasonable fees and disbursements of counsel for the Agent and the
         Arrangers, in connection with the preparation of this Agreement, any
         waiver or consent hereunder or any amendment hereof or any Default
         hereunder and (ii) if an Event of Default occurs, all reasonable
         out-of-pocket expenses incurred by the Agent, the Arrangers and each
         Bank, including reasonable fees and disbursements of counsel, in
         connection with such Event of Default and collection, bankruptcy,
         insolvency and other enforcement proceedings resulting therefrom. The
         Company shall indemnify each Bank against any transfer taxes,
         documentary taxes, assessments or charges made by any governmental
         authority by reason of the execution and delivery of this Agreement or
         the Notes.

                  (B)      The Company agrees to indemnify and defend the Agent,
         the Arrangers and each Bank and their respective directors, officers,
         agents, employees and affiliates from, and hold each of them harmless
         against, any and all losses, liabilities, claims, damages or expenses
         substantially relating to or arising out of this Agreement or any
         Borrower's actual or proposed use of proceeds of Loans hereunder,
         including but not limited to reasonable attorney's fees and settlement
         costs; provided that (x) the foregoing indemnity shall not apply to any
         losses, liabilities, claims, damages or expenses that (i) do not relate
         to or arise out of this Agreement or (ii) relate to the activities of
         the parties hereto (other than the Company and its Affiliates) in
         connection herewith and (y) neither the Agent, the Arrangers nor any
         Bank shall have the right to be indemnified hereunder for its own gross
         negligence or willful misconduct as determined by a court of competent
         jurisdiction.

                  (C)      In the event that any action taken by any Bank or
         Agent under this Agreement or any Note results in any tax or other
         monetary liability to such party pursuant to the laws of Luxembourg or
         political subdivision or taxing authority thereof (other than taxes on
         the overall net income of such Bank or its Applicable Lending Office or
         franchise or similar taxes imposed by Luxembourg to the extent such
         Bank or its Applicable Lending Office shall be situated in Luxembourg),
         Masco Europe hereby agrees to indemnify such Bank or the Agent, as the
         case may be, against (x) any such tax or other monetary liability and
         (y) any increase in any tax or other monetary liability which results
         from such action by such Bank or the Agent and, to the extent Masco
         Europe makes such indemnification, the incurrence of such liability by
         the Agent or any Bank will not constitute a Default.

                  SECTION 9.04. Sharing of Set-Offs. Each Bank agrees that if it
shall, by exercising any right of set-off or counterclaim or otherwise, receive
payment of a proportion of the aggregate amount of principal and interest due
with respect to any Loan held by it which is greater than the proportion
received by any other Bank in respect of the aggregate amount of

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principal and interest due with respect to any Loan held by such other Bank, the
Bank receiving such proportionately greater payment shall purchase such
participations in the Loans held by the other Banks, and such other adjustments
shall be made, as may be required so that all such payments of principal and
interest with respect to the Loans held by the Banks shall be shared by the
Banks pro rata; provided that nothing in this Section shall impair the right of
any Bank to exercise any right of set-off or counterclaim it may have and to
apply the amount subject to such exercise to the payment of indebtedness of any
Borrower other than its indebtedness under the Loans. Each Borrower agrees, to
the fullest extent it may effectively do so under applicable law, that any
holder of a participation in a Loan, whether or not acquired pursuant to the
foregoing arrangements, may exercise rights of set-off or counterclaim and other
rights with respect to such participation as fully as if such holder of a
participation were a direct creditor of the Borrower in the amount of such
participation.

                  SECTION 9.05. Amendments and Waivers. Any provision of this
Agreement or the Notes may be amended or waived if, but only if, such amendment
or waiver is in writing and is signed by the Borrowers and the Required Banks
(and, if the rights or duties of the Agent are affected thereby, by the Agent
and no amendment of any provision of this Agreement which subjects any
Designated Lender to any additional obligation hereunder shall be effective with
respect to such Designated Lender without the written consent of such Designated
Lender or its Designating Lender), provided that no such amendment or waiver
shall, unless signed by all the Banks, (i) increase or decrease the Commitment
of any Bank (except for a ratable decrease in the Commitments of all the Banks)
or subject any Bank to any additional obligation, (ii) reduce the principal of
or rate of interest on any Loan or any fees hereunder, (iii) postpone the date
fixed for any payment of principal of or interest on any Loan or any fees
hereunder or for the termination of the Commitments, (iv) change the percentage
of the Commitments or of the aggregate unpaid principal amount of the Loans, or
the number of Banks, which shall be required for the Banks or any of them to
take any action under this Section or any other provision of this Agreement, (v)
amend Article X, or (vi) amend this Section 9.05.

                  SECTION 9.06. Successors and Assigns.

                  (A)      The provisions of this Agreement shall be binding
         upon and inure to the benefit of the parties hereto and their
         respective successors and assigns; provided that no Borrower may assign
         or otherwise transfer any of its rights under this Agreement without
         the prior written consent of all Banks, except as provided in Section
         5.05.

                  (B)      Any Bank may at any time grant to one or more banks
         or other institutions, including a Designated Lender, (each a
         "Participant") participating interests in its Commitment or any or all
         of its Loans. In the event of any such grant by a Bank of a
         participating interest to a Participant, whether or not upon notice to
         the Borrowers and the Agent, such Bank shall remain responsible for the
         performance of its obligations hereunder, and the Borrowers and the
         Agent shall continue to deal solely and directly with such Bank in
         connection with such Bank's rights and obligations under this
         Agreement. Any agreement pursuant to which any Bank may grant such a
         participating interest shall provide that such Bank shall retain the
         sole right and responsibility to enforce the obligations of the
         Borrowers hereunder including, without limitation, the right to approve
         any amendment modification or waiver of any provision of this

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         Agreement; provided that such participation agreement may provide that
         such Bank will not agree to any modification, amendment or waiver of
         this Agreement described in clause (i), (ii) or (iii) of Section 9.05
         without the consent of the Participant. The Borrowers agree that each
         Participant shall, to the extent provided in its participation
         agreement, be entitled to the benefits of Article VIII with respect to
         its participating interest. An assignment or other transfer which is
         not permitted by subsection (C) or (D) below shall be given effect for
         purposes of this Agreement only to the extent of a participating
         interest granted in accordance with this subsection (B).

                  (C)      Any Bank may at any time assign to one or more banks
         or other institutions (each an "Assignee") all, or a proportionate part
         of all, but not less than the lesser of (i) (x) $10,000,000 and in
         multiples of $1,000,000 or (y) if the Assignee is a Bank or an
         affiliate of such transferor Bank that is a financial institution,
         $5,000,000 and in multiples of $1,000,000 (or, in either case, such
         lesser amounts as shall be consented to by the Agent and the Company,
         which consents will not unreasonably be withheld or delayed) or (ii)
         the remaining amount of the assigning Bank's commitment (calculated as
         at the date of such assignment) of its rights and obligations under
         this Agreement and the Notes, and such Assignee shall assume such
         rights and obligations, pursuant to an Assignment and Assumption
         Agreement in substantially the form of Exhibit C hereto executed by
         such Assignee and such transferor Bank, with (and subject to) the
         subscribed consent of the Company and the Agent (which consents will
         not unreasonably be withheld or delayed); provided that (a) if an
         Assignee is a Bank or an affiliate of such transferor Bank that is a
         financial institution, no such consent of the Company or the Agent
         shall be required so long as the Agent and the Company are provided
         with prior written notice of the applicable assignment, and (b) if an
         Event of Default has occurred and is continuing, no such consent of the
         Company shall be required. Upon execution and delivery of such
         instrument and payment by such Assignee to such transferor Bank of an
         amount equal to the purchase price agreed between such transferor Bank
         and such Assignee, such Assignee shall be a Bank party to this
         Agreement and shall have all the rights and obligations of a Bank with
         a Commitment as set forth in such instrument of assumption, and the
         transferor Bank shall be released from its obligations hereunder to a
         corresponding extent, and no further consent or action by any party
         shall be required. Upon the consummation of any assignment pursuant to
         this subsection (C), the transferor Bank, the Agent and the Company
         shall make appropriate arrangements so that, if required, a new Note is
         issued to the Assignee. In connection with any such assignment, the
         transferor Bank shall pay to the Agent an administrative fee for
         processing such assignment in the amount of $4,000. If the Assignee is
         not incorporated under the laws of the United States of America or a
         state thereof, it shall, prior to the first date on which interest or
         fees are payable hereunder for its account, deliver to the Company and
         the Agent certification as to exemption from deduction or withholding
         of any United States federal income taxes in accordance with Section
         2.14.

                  (D)      Any Bank may at any time assign all or any portion of
         its rights under this Agreement and its Loans and Notes, if any, to a
         Federal Reserve Bank. No such assignment shall release the transferor
         Bank from its obligations hereunder.

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                  (E)      No Assignee, Participant or other transferee of any
         Bank's rights shall be entitled to receive any greater payment under
         Section 8.03 than such Bank would have been entitled to receive with
         respect to the rights transferred, unless such transfer is made with
         the Company's prior written consent or by reason of the provisions of
         Section 8.02 or 8.03 requiring such Bank to designate a different
         Applicable Lending Office under certain circumstances or at a time when
         the circumstances giving rise to such greater payment did not exist.

                  (F)      Designated Lender.

                           (i)      Subject to the terms and conditions set
                  forth in this Section 9.06, any Bank may from time to time
                  elect to designate an Eligible Designee to provide all or any
                  part of the Loans to be made by such Bank pursuant to this
                  Agreement; provided the designation of an Eligible Designee by
                  any Bank for purposes of this Section 9.06 shall be subject to
                  the approval of the Borrowers and the Agent (which consents
                  shall not be unreasonably withheld or delayed). Upon the
                  execution by the parties to each such designation of an
                  agreement in the form of Exhibit E hereto (a "Designation
                  Agreement") and the acceptance thereof by the Borrowers and
                  the Agent, the Eligible Designee shall become a Designated
                  Lender for purposes of this Agreement. The Designating Lender
                  shall thereafter have the right to permit the Designated
                  Lender to provide all or a portion of the Loans to be made by
                  the Designating Lender pursuant to the terms of this Agreement
                  and the making of such Loans or portion thereof shall satisfy
                  the obligation of the Designating Lender to the same extent,
                  and as if, such Loan was made by the Designating Lender. As to
                  any Loan made by it, each Designated Lender shall have all the
                  rights a Bank making such Loan would have under this Agreement
                  and otherwise; provided, (x) that all voting rights under this
                  Agreement shall be exercised solely by the Designating Lender
                  and (y) each Designating Lender shall remain solely
                  responsible to the other parties hereto for its obligations
                  under this Agreement, including the obligations of a Bank in
                  respect of Loans made by its Designated Lender. No additional
                  Notes shall be required with respect to Loans provided by a
                  Designated Lender; provided, however, to the extent any
                  Designated Lender shall advance funds, the Designating Lender
                  shall be deemed to hold the Notes in its possession as an
                  agent for such Designated Lender to the extent of the Loan
                  funded by such Designated Lender; provided, further, that any
                  Designated Lender may request a Note in accordance with
                  Section 2.05(.D). Such Designating Lender shall act as
                  administrative agent for its Designated Lender and give and
                  receive notices and communications hereunder. Any payments for
                  the account of any Designated Lender shall be paid to its
                  Designating Lender as administrative agent for such Designated
                  Lender and neither the Borrowers nor the Agent shall be
                  responsible for any Designating Lender's application of any
                  such payments. In addition, any Designated Lender may (i) with
                  notice to, but without the consent of the Borrowers and the
                  Agent, assign all or portions of its interests in any Loans to
                  its Designating Lender or to any financial institution
                  consented to by the Borrowers and the Agent providing
                  liquidity and/or credit facilities to or for the account of
                  such Designated Lender and (ii) subject to advising any such
                  Person that such

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                  information is to be treated as confidential in accordance
                  with such Person's customary practices for dealing with
                  confidential, non-public information, disclose on a
                  confidential basis any non-public information relating to its
                  Loans to any rating agency, commercial paper dealer or
                  provider of any guarantee, surety or credit or liquidity
                  enhancement to such Designated Lender.

                           (ii)     Each party to this Agreement hereby agrees
                  that it shall not institute against, or join any other person
                  in instituting against any Designated Lender any bankruptcy,
                  reorganization, arrangements, insolvency or liquidation
                  proceeding or other proceedings under any federal or state
                  bankruptcy or similar law for one year and a day after the
                  payment in full of all outstanding senior indebtedness of any
                  Designated Lender; provided that the Designating Lender for
                  each Designated Lender hereby agrees to indemnify, save and
                  hold harmless each other party hereto for any loss, cost,
                  damage and expense arising out of their inability to institute
                  any such proceeding against such Designated Lender. This
                  Section 9.06(F) shall survive the termination of this
                  Agreement.

                  SECTION 9.07. Collateral. Each of the Banks represents to the
Agent and each of the other Banks that it in good faith is not relying upon any
"margin stock" (as defined in Regulation U) as collateral in the extension or
maintenance of the credit provided for in this Agreement.

                  SECTION 9.08. Confidentiality. The Agent and each Bank agree
that all documentation and other information made available by the Borrowers to
the Agent or such Bank, whether under the terms of this Agreement or any other
loan agreement, shall (except to the extent required by legal or governmental
process or otherwise by law, or if such documentation and other information is
publicly available or hereafter becomes publicly available other than by action
of the Agent or any Bank, or was theretofore known to the Agent or such Bank
independent of any disclosure thereto by the Borrowers) be held in the strictest
confidence by Agent or such Bank and used solely in connection with
administration of loans from time to time outstanding from Agent or such Bank to
the Borrowers; provided that (i) such Bank may disclose such documentation and
other information to its affiliates or any other bank or other institution to
which such Bank sells or proposes to sell a participation in its Loans
hereunder, if such affiliate or other bank or institution, prior to such
disclosure, agrees for the benefit of the Borrowers to comply with the
provisions of this Section, (ii) such Bank may disclose the provisions of this
Agreement and the Notes and the amounts, maturities and interest rates of its
Loans to any purchaser or potential purchaser of such Bank's interest in any
Loan and (iii) such Bank may disclose such documentation and other information
to the extent required, in such Bank's good faith judgment, to enforce its
rights under this Agreement and the Notes. The Borrowers agree that the terms of
this Section 9.08 shall set forth the entire agreement between the Borrowers,
the Agent and each Bank with respect to any confidential information previously
or hereafter received by the Agent or such Bank in connection with this
Agreement, and this Section 9.08 shall supersede any and all prior
confidentiality agreements entered into by the Agent or such Bank with respect
to such confidential information. Notwithstanding anything herein to the
contrary, confidential information shall not include, and each party hereto (and
each employee, representative or other agent of any party hereto) may disclose
to any and all Persons, without limitation of any kind, the U.S. federal income
tax treatment and U.S. federal income tax

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structure of the transactions contemplated hereby and all materials of any kind
(including opinions or other tax analyses) that are or have been provided to
such party relating to such tax treatment or tax structure, and it is hereby
confirmed that each party hereto has been authorized to make such disclosures
since the commencement of discussions regarding the transactions contemplated
hereby.

                  SECTION 9.09. Severalty of Obligations. The obligations of the
Banks hereunder are several. No failure by any Bank to perform its obligations
hereunder shall relieve any other Bank of its obligations hereunder, and no Bank
shall be responsible for the performance of any other Bank's obligations
hereunder or for any action taken or omitted by any other Bank hereunder.

                  SECTION 9.10. Illinois Law; Submission to Jurisdiction. This
Agreement and each Note shall be construed in accordance with and governed by
the laws of the State of Illinois. Each Borrower hereby submits to the
nonexclusive jurisdiction of the United States District Court for the Northern
District of Illinois and of any Illinois State court sitting in Chicago for
purposes of all legal proceedings arising out of or relating to this Agreement
or the transactions contemplated hereby. Each Borrower irrevocably waives, to
the fullest extent permitted by law, any objection which it may now or hereafter
have to the laying of the venue of any such proceeding brought in such a court
and any claim that any such proceeding brought in such a court has been brought
in an inconvenient forum.

                  SECTION 9.11. Counterparts; Integration. This Agreement may be
signed in any number of counterparts, each of which shall be an original, with
the same effect as if the signatures thereto and hereto were upon the same
instrument. This Agreement constitutes the entire agreement and understanding
among the parties hereto and supersedes any and all prior agreements and
understandings, oral or written, relating to the subject matter hereof.

                  SECTION 9.12. WAIVER OF JURY TRIAL; SER VICE OF PROCESS.

                  (A)      EACH OF THE BORROWERS, THE AGENT AND THE BANKS HEREBY
         IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
         PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
         TRANSACTIONS CONTEMPLATED HEREBY.

                  (B)      EACH BORROWER IRREVOCABLY CONSENTS TO SERVICE OF
         PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 9.01. AND MASCO
         EUROPE HEREBY IRREVOCABLY APPOINTS THE COMPANY AT THE ADDRESS SET FORTH
         ON THE SIGNATURE PAGES HEREOF AS ITS AGENT FOR SERVICE OF PROCESS OUT
         OF ANY OF THE COURTS REFERRED TO IN SECTION 9.10. NOTHING IN THIS
         AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE
         PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

                  SECTION 9.13. USA Patriot Act Notification. The following
notification is provided to the Borrowers pursuant to Section 326 of the USA
Patriot Act of 2001, 31 U.S.C. Section 5318:

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IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To help the
government fight the funding of terrorism and money laundering activities,
Federal law requires all financial institutions to obtain, verify, and record
information that identifies each person or entity that opens an account,
including any deposit account, treasury management account, loan, other
extension of credit, or other financial services product. What this means for
the Borrowers: When any Borrower opens an account, the Agent and the Banks will
ask for such Borrower's name, tax identification number, business address, and
other information that will allow the Agent and the Banks to identify such
Borrower. The Agent and the Banks may also ask to see such Borrower's legal
organizational documents or other identifying documents.

                               ARTICLE X: GUARANTY

                  As an inducement to the Banks and the Agent to enter into the
transactions contemplated by this Agreement, the Company agrees with the Banks
and the Agent as follows:

                  SECTION 10.01. Guarantee of Obligations.

                  (A)      The Company hereby (i) guarantees, as principal
         obligor and not as surety only, to the Banks the prompt payment of the
         principal of and any and all accrued and unpaid interest (including
         interest which otherwise may cease to accrue by operation of any
         insolvency law, rule, regulation or interpretation thereof) on the
         Loans and all other obligations of Masco Europe to the Banks and the
         Agent under this Agreement when due, whether by scheduled maturity,
         acceleration or otherwise, all in accordance with the terms of this
         Agreement and the Notes, including, without limitation, fees,
         reimbursement obligations, default interest, indemnification payments
         and all reasonable costs and expenses incurred by the Banks and the
         Agent in connection with enforcing any obligations of Masco Europe
         hereunder, including without limitation the reasonable fees and
         disbursements of counsel, (ii) guarantees the prompt and punctual
         performance and observance of each and every term, covenant or
         agreement contained in this Agreement and the Notes to be performed or
         observed on the part of Masco Europe and (iii) agrees to make prompt
         payment, on demand, of any and all reasonable costs and expenses
         incurred by the Banks or the Agent in connection with enforcing the
         obligations of the Company hereunder, including, without limitation,
         the reasonable fees and disbursements of counsel (all of the foregoing
         being collectively referred to as the "Guaranteed Obligations").

                  (B)      If for any reason any duty, agreement or obligation
         of Masco Europe contained in this Agreement shall not be performed or
         observed by Masco Europe as provided therein, or if any amount payable
         under or in connection with this Agreement shall not be paid in full
         when the same becomes due and payable, the Company undertakes to
         perform or cause to be performed promptly each of such duties,
         agreements and obligations and to pay forthwith each such amount to the
         Agent for the account of the Banks regardless of any defense or setoff
         or counterclaim which Masco Europe may have or assert, and regardless
         of any other condition or contingency.

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                  SECTION 10.02. Nature of Guaranty. The obligations of the
Company hereunder constitute an absolute and unconditional and irrevocable
guaranty of payment and not a guaranty of collection and are wholly independent
of and in addition to other rights and remedies of the Banks and the Agent and
are not contingent upon the pursuit by the Banks and the Agent of any such
rights and remedies, such pursuit being hereby waived by the Company.

                  SECTION 10.03. Waivers and Other Agreements. The Company
hereby unconditionally (a) waives any requirement that the Banks or the Agent,
upon the occurrence of an Event of Default first make demand upon, or seek to
enforce remedies against Masco Europe before demanding payment under or seeking
to enforce the obligations of the Company hereunder, (b) covenants that the
obligations of the Company hereunder will not be discharged except by complete
performance of all obligations of Masco Europe contained in this Agreement and
the Notes, (c) agrees that the obligations of the Company hereunder shall remain
in full force and effect without regard to, and shall not be affected or
impaired, without limitation, by any invalidity, irregularity or
unenforceability in whole or in part of this Agreement or the Notes, or any
limitation on the liability of Masco Europe thereunder, or any limitation on the
method or terms of payment thereunder which may or hereafter be caused or
imposed in any manner whatsoever (including, without limitation, usury laws),
(d) waives diligence, presentment and protest with respect to, and any notice of
default or dishonor in the payment of any amount at any time payable by Masco
Europe under or in connection with this Agreement or the Notes, and further
waives any requirement of notice of acceptance of, or other formality relating
to, the obligations of the Company hereunder and (e) agrees that the Guaranteed
Obligations shall include any amounts paid by Masco Europe to the Banks or the
Agent which may be required to be returned to Masco Europe or to their
representative or to a trustee, custodian or receiver for Masco Europe.

                  SECTION 10.04. Obligations Absolute. The obligations,
covenants, agreements and duties of the Company under this Agreement shall not
be released, affected or impaired by any of the following whether or not
undertaken with notice to or consent of the Company: (a) an assignment or
transfer, in whole or in part, of the Loans made to Masco Europe or of this
Agreement or any Note although made without notice to or consent of the Company,
or (b) any waiver by any Bank or the Agent or by any other person, of the
performance or observance by Masco Europe of any of the agreements, covenants,
terms or conditions contained in this Agreement or in the Notes, or (c) any
indulgence in or the extension of the time for payment by Masco Europe of any
amounts payable under or in connection with this Agreement or any Note, or of
the time for performance by Masco Europe of any other obligations under or
arising out of this Agreement or any Note, or the extension or renewal thereof,
or (d) the modification, amendment or waiver (whether material or otherwise) of
any duty, agreement or obligation of Masco Europe set forth in this Agreement or
any Note (the modification, amendment or waiver from time to time of this
Agreement and the Notes being expressly authorized without further notice to or
consent of the Company), or (e) the voluntary or involuntary liquidation, sale
or other disposition of all or substantially all of the assets of Masco Europe
or any receivership, insolvency, bankruptcy, reorganization, or other similar
proceedings, affecting Masco Europe or any of its assets, or (f) the merger or
consolidation of Masco Europe or the Company with any other person, or (g) the
release of discharge of Masco Europe or the Company from the performance or
observance of any agreement, covenant, term or condition contained in this
Agreement or any Note, by operation of law, or (h) any other cause whether
similar or dissimilar

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to the foregoing which would release, affect or impair the obligations,
covenants, agreements or duties of the Company hereunder.

                  SECTION 10.05. No Investigation by Banks or Agent. The Company
hereby waives unconditionally any obligation which, in absence of such
provision, the Banks or the Agent might otherwise have to investigate or to
assure that there has been compliance with the law of any jurisdiction with
respect to the Guaranteed Obligations recognizing that, to save both time and
expense, the Company has requested that the Banks and the Agent not undertake
such investigation. The Company hereby expressly confirms that the obligations
of the Company hereunder shall remain in full force and effect without regard to
compliance or noncompliance with any such law and irrespective of any
investigation or knowledge of any Bank or the Agent of any such law.

                  SECTION 10.06. Indemnity. As a separate, additional and
continuing obligation, the Company unconditionally and irrevocably undertakes
and agrees with the Banks and the Agent that, should the Guaranteed Obligations
not be recoverable from the Company under Section 10.01 for any reason
whatsoever (including, without limitation, by reason of any provision of this
Agreement or the Notes or any other agreement or instrument executed in
connection herewith being or becoming void, unenforceable, or otherwise invalid
under any applicable law) then, notwithstanding any knowledge thereof by any
Bank or the Agent at any time, the Company as sole, original and independent
obligor, upon demand by the Agent, will make payment to the Agent for the
account of the Banks and the Agent of the Guaranteed Obligations by way of a
full indemnity in such currency and otherwise in such manner as is provided in
this Agreement and the Notes.

                  SECTION 10.07. Subordination, Subrogation, Reinstatement, Etc.
The Company agrees that any present or future indebtedness, obligations or
liabilities of Masco Europe to Company (the "Intercompany Indebtedness") shall
be fully subordinate and subject in right of payment to the prior payment, in
full and in cash, of any and all present or future indebtedness, obligations or
liabilities of Masco Europe to the Banks and the Agent; provided, that, and not
in contravention of the foregoing, so long as no Default has occurred and is
continuing the Company may make loans to and receive payments in the ordinary
course with respect to such Intercompany Indebtedness to the extent not
otherwise prohibited by the terms of this Agreement. Notwithstanding any right
of the Company to ask, demand, sue for, take or receive any payment from Masco
Europe, all rights, liens and security interests of the Company, whether now or
hereafter arising and howsoever existing, in any assets of Masco Europe shall be
and are subordinated to the rights of the Banks and the Agent in those assets.
The Company agrees that until the Guaranteed Obligations (other than contingent
indemnity obligations) have been paid in full (in cash) and satisfied and all
financing arrangements pursuant to this Agreement have been terminated, the
Company will not assign or transfer to any Person (other than the Agent) any
claim the Company has or may have against Masco Europe. The Company waives any
right of subrogation to the rights of any Bank or the Agent against Masco Europe
or any other person obligated for payment of the Guaranteed Obligations and any
right of reimbursement or indemnity whatsoever arising or accruing out of any
payment which the Company may make pursuant to this Agreement and the Notes, and
any right of recourse to security for the debts and obligations of Masco Europe,
unless and until the entire principal balance of and interest on the Guaranteed
Obligations shall have been paid in full, and to the

                                                  SIDLEY AUSTIN BROWN & WOOD LLP

                                       49
<PAGE>

extent the Company is an "insider" as defined in Section 101(2) of the United
States Bankruptcy Code, such waiver shall be permanent and shall not be revoked
or terminated in any event, including payment in full and in cash of the
principal and interest of the Guaranteed Obligations. If at any time any payment
of any Guaranteed Obligations by Masco Europe is rescinded or must be otherwise
restored or returned upon the insolvency, bankruptcy or reorganization of Masco
Europe or otherwise, each of the Company's obligations hereunder with respect to
such payment shall be reinstated as though such payment had been due but not
made at such time.

                                                  SIDLEY AUSTIN BROWN & WOOD LLP

                                       50
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers as of the day and year
first above written.

                                         MASCO CORPORATION, as a Borrower

                                         By: /s/ Robert B. Rosowski
                                             -----------------------------------
                                             Name: Robert B. Rosowski
                                             Title: Vice President and Treasurer
                                         21001 Van Born Road
                                         Taylor, Michigan 48180
                                         Attention: President and Senior Vice
                                                    President General Counsel

                                         Telecopy Number: (313) 792-6135
                                         MASCO EUROPE S.A.R.L., as a Borrower

                                         By: /s/ Robert B. Rosowski
                                             -----------------------------------
                                             Name: Robert B. Rosowski
                                             Title: Manager
                                         c/o Masco Corporation
                                         21001 Van Born Road
                                         Taylor, Michigan 48180
                                         Attention: President and Senior Vice
                                                    President General Counsel
                                         Telecopy Number: (313) 792-6135

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         BANK ONE, NA, as Agent and as a Bank

                                         By: /s/ Joseph Perdenza
                                             -----------------------------------
                                             Name: Joseph Perdenza
                                             Title: Director

                                         333 South Grand Avenue
                                         Los Angeles, CA 90071
                                         Attention: Joseph Perdenza
                                         Telephone Number: (213) 576-1523
                                         Telecopy Number: (213) 576-1566
                                         E-Mail: joe_perdenza@bankone.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         CITIBANK, N.A., as a Bank and as
                                         Syndication Agent

                                         By: /s/ Carolyn Kee
                                             -----------------------------------
                                             Name: Carolyn Kee
                                             Title: Vice President

                                         388 Greenwich Street, 21st Floor
                                         New York, NY 10013
                                         Attention: Robert Kane
                                         Telephone Number: (212)816-8133
                                         Telecopy Number: (212)816-8301
                                         E-Mail: robert.j.kane@citigroup.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         COMMERZBANK AG, NEW YORK AND GRAND
                                         CAYMAN BRANCHES, as a Bank and as a
                                         Documentation Agent

                                         By: /s/ Graham Warning
                                             -----------------------------------
                                             Name: Graham Warning
                                             Title: Assistant Treasurer

                                         By: /s/ John Marlatt
                                             -----------------------------------
                                             Name: John Marlatt
                                             Title: Senior Vice President

                                         20 South Clark Street, Suite 2700
                                         Chicago, IL 60603
                                         Attention: John Marlatt
                                         Telephone Number: (312) 795-1625
                                         Telecopy Number: (312) 236-2827
                                         E-Mail: jmarlatt@cbkna.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                        BARCLAYS BANK PLC, as a Bank and as a
                                        Documentation Agent

                                        By: /s/ Nicholas Bell
                                            ------------------------------------
                                            Name: Nicholas Bell
                                            Title: Director

                                        200 Park Avenue, 4th Floor
                                        New York, NY 10166
                                        Attention: David Barton
                                        Telephone Number: (212) 412-7693
                                        Telecopy Number: (212) 412-7511
                                        E-Mail: david.barton@barclayscapital.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         KEYBANK NATIONAL ASSOCIATION, as a Bank
                                         and as a Documentation Agent

                                         By: /s/ Thomas J. Purcell
                                             -----------------------------------
                                             Name: Thomas J. Purcell
                                             Title: Senior Vice President

                                         127 Public Square
                                         OH-01-27-0606
                                         Cleveland, OH 44114
                                         Attention: Joshua Mayers
                                         Telephone Number: (216) 689-0213
                                         Telecopy Number: (216) 689-0489
                                         E-Mail: joshua_mayers@keybank.com

                                SIGNATURE PAGE TO
                              AMENDED AMD RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         COMERICA BANK, as a Bank and as a
                                         Senior Managing Agent

                                         By: /s/ Chris Stergiadis
                                             -----------------------------------
                                             Name: Chris Stergiadis
                                             Title: Assistant Vice President

                                         Comerica Tower
                                         500 Woodward Avenue
                                         MC 3265
                                         Detroit, MI 48226
                                         Attention: Chris Stergiadis
                                         Telephone Number: (313) 222-9030
                                         Telecopy Number: (313) 222-3776
                                         E-Mail: chris_stergiadis@comerica.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         MERRILL LYNCH BANK USA, as a Bank and
                                         as a Senior Managing Agent

                                         By: /s/ Louis Alder
                                             -----------------------------------
                                             Name: Louis Alder
                                             Title: Vice President

                                         15 W. South Temple, Ste. 300
                                         Salt Lake City, UT 84101
                                         Attention: Derek Befus
                                         Telephone Number: (801) 526-6814
                                         Telecopy Number: (801) 531-7470
                                         E-Mail: derek_befus@ml.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         ROYAL BANK OF CANADA, as a Bank and as
                                         Co-Agent

                                         By: /s/ Suzanne Kaicher
                                             -----------------------------------
                                             Name: Suzanne Kaicher
                                             Title: Manager

                                         One Liberty Plaza, 4th Floor
                                         New York, NY 10006-1404
                                         Attention: Nigel Delph
                                         Telephone Number: (212) 428-6249
                                         Telecopy Number: (212) 428-2319
                                         E-Mail: nigel.delph@rbccm.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         BANK HAPOALIM B.M., as a Bank

                                         By: /s/ James P. Surless
                                             -----------------------------------
                                             Name: JAMES P. SURLESS
                                             Title: VICE PRESIDENT

                                         By: /s/ Laura Anne Raffa
                                             -----------------------------------
                                             Name: LAURA ANNE RAFFA
                                             Title: SENIOR VICE PRESIDENT &
                                                     CORPORATE MANAGER

                                         225 N. Michigan Avenue, Suite 900
                                         Chicago, IL 60601-7601
                                         Attention: Thomas J. Hepperle
                                         Telephone Number: (312) 228-6420
                                         Telecopy Number: (312) 228-6490
                                         E-Mail: thepperle@hapoalimusa.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                   SVENSKA HANDELSBANKEN AB (publ), as a
                                   Bank

                                   By: /s/ Nancy Carney
                                       -----------------------------------------
                                       Name: Nancy Carney
                                       Title: Vice President

                                   By: /s/ Jonas Daun
                                       -----------------------------------------
                                       Name: Jonas Daun
                                       Title: Senior Vice President

                                   153 East 53rd Street
                                   New York, NY 10033
                                   Attention: Nancy Carney and David Caceres
                                   Telephone Number: (D. Caceres) (212) 326-5171
                                   Telephone Number: (N. Carney) (212) 326-5125
                                   Telecopy Number: (212) 326-2705
                                   E-Mail: naca01@handelsbanken.se
                                           dacaOl@handelsbanken.se

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         THE BANK OF TOKYO-MITSUBISHI, LTD.,
                                         CHICAGO BRANCH, as a Bank

                                         By: /s/ Shinichiro Munechika
                                             -----------------------------------
                                             Name: Shinichiro Munechika
                                             Title: Deputy General Manager

                                         227 W. Monroe Street, Suite 2300
                                         Chicago, IL 60606
                                         Attention: Thomas Denio
                                         Telephone Number: (312) 696-4665
                                         Telecopy Number: (312) 696-4535
                                         E-Mail: tdenio@btmna.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                  BNP PARIBAS, as a Bank

                                  By: /s/ Rosalie Hawley
                                      ------------------------------------------
                                      Name: Rosalie Hawley
                                      Title: Director

                                  By: /s/ Peter Labrie
                                      ------------------------------------------
                                      Name: Peter Labrie
                                      Title: Central Region Manager

                                  209 S. LaSalle Street
                                  Chicago, IL 60604
                                  Attention: Rosalie Hawley
                                  Telephone Number: (312) 977-2203
                                  Telecopy Number: (312) 977-1380
                                  E-Mail: rosalie.hawley@americas.bnpparibas.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         PNC BANK, NATIONAL ASSOCIATION, as a
                                         Bank

                                         By: /s/ Philip K. Liebscher
                                             -----------------------------------
                                             Name: Philip K. Liebscher
                                             Title: Vice President

                                         249 Fifth Avenue
                                         Pittsburgh, PA 15222-2707
                                         Attention: Philip K. Liebscher
                                         Telephone Number: (412) 762-3202
                                         Telecopy Number: (412) 762-6484
                                         E-Mail: philip.liebscher@pncbank.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         DEXIA BANQUE INTERNATIONALE A
                                         LUXEMBOURG societe anonyme, as a Bank

                                         By: /s/ Marc Schronen
                                             -----------------------------------
                                             Name: Marc Schronen
                                             Title: Assistant Vice President

                                         By: /s/ Charles Gosselin
                                             -----------------------------------
                                             Name: Charles Gosselin
                                             Title: Senior Vice President

                                         Grandes Enterprises & Collectivites
                                         69, route d'Esch
                                         L-2953 Luxembourg
                                         Europe
                                         Attention: Marc Schronen
                                         Telephone Number: (352) 4590 2705
                                         Telecopy Number: (352) 4590 3444
                                         E-Mail: marc.schronen@dexis-bil.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         DANSKE BANK AKTIESELSKAB, as a Bank

                                         By: /s/ John O'Neill
                                             -----------------------------------
                                             Name: John O'Neill
                                             Title: Vice President

                                         By: /s/ Peter L. Hargraves
                                             -----------------------------------
                                             Name: Peter L. Hargraves
                                             Title: Vice President

                                         299 Park Avenue
                                         New York, NY 10017
                                         Attention: Peter L. Hargraves
                                         Telephone Number: (212) 984-8433
                                         Telecopy Number: (212) 984-9567
                                         E-Mail: harg@us.danskebank.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         STANDARD FEDERAL BANK, N.A., as a Bank

                                         By: /s/ Andrew R. Craig
                                             -----------------------------------
                                             Name: Andrew R. Craig
                                             Title: First Vice President

                                         2600 W. Big Beaver Road
                                         Mailcode MO900-290
                                         Troy, MI 48084
                                         Attention: Andrew R. Craig
                                         Telephone Number: (248) 822-5701
                                         Telecopy Number: (248) 816-4364
                                         E-Mail: andy.craig@abnamro.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         WELLS FARGO BANK, N.A., as a Bank

                                         By: /s/ Melissa F. Nachman
                                             -----------------------------------
                                             Name: Melissa F. Nachman
                                             Title: Vice President

                                         By: /s/ Mary D. Falck
                                             -----------------------------------
                                             Name: Mary D. Falck
                                             Title: Senior Vice President

                                         230 West Monroe Street, Suite 2900
                                         Chicago, IL 60606
                                         Attention: Melissa Nachman
                                         Telephone Number: (312) 553-2353
                                         Telecopy Number: (312) 553-4783
                                         E-Mail: mnachman@wellsfargo.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         KBC BANK, N.V., as a Bank

                                         By: /s/ Jean-pierre Diels
                                             -----------------------------------
                                             Name: JEAN-PIERRE DIELS
                                             Title: First Vice President

                                         By: /s/ William Cavanaugh
                                             -----------------------------------
                                             Name: William Cavanaugh
                                             Title: VICE PRESIDENT

                                         125 West 55th Street
                                         New York, NY 10019
                                         Attention: William Cavanaugh
                                         Telephone Number: (212) 541-0761
                                         Telecopy Number: (212) 541-0793
                                         E-Mail: william.cavanaugh@kbc.be

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         U.S. BANK, N.A., as a Bank

                                         By: /s/ Jeff Janza
                                             -----------------------------------
                                             Name: Jeff Janza
                                             Title: Vice President

                                         777 E. Wisconsin Avenue
                                         Galleria Level, MK-WI-TGCB
                                         Milwaukee, WI 53202
                                         Attention: Jeff Janza
                                         Telephone Number: (414) 765-6999
                                         Telecopy Number: (414) 765-4632
                                         E-Mail: jeff.janza@usbank.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                       SUMITOMO MITSUI BANKING CORPORATION,
                                       as a Bank

                                       By: /s/ Peter R. C. Knight
                                           -------------------------------------
                                           Name: Peter R. C. Knight
                                           Title: Joint General Manager

                                       277 Park Avenue - 6th Floor
                                       New York, NY 10172
                                       Attention: Rohn M. Laudenschlager
                                       Telephone Number: (212) 224-4226
                                       Telecopy Number: (212) 224-4384
                                       E-Mail: rohn_laudenschlager@smbcgroup.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         THE NORTHERN TRUST COMPANY, as a Bank

                                         By: /s/ Russ Rockenbach
                                             -----------------------------------
                                             Name: Russ Rockenbach
                                             Title: Vice President

                                         50 S. LaSalle Street, L-8
                                         Chicago, IL 60675
                                         Attention: Russ Rockenbach
                                         Telephone Number: (312) 630-6414
                                         Telecopy Number: (312) 444-4906
                                         E-Mail: rrrl@ntrs.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         FIFTH THIRD BANK, Eastern Michigan,
                                         as a Bank

                                         By: /s/ Andre A. Nazareth
                                             -----------------------------------
                                             Name: Andre A. Nazareth
                                             Title: Vice President

                                         1000 Town Center, Suite 1500
                                         Southfield, MI 48075
                                         Attention: Andre A. Nazareth
                                         Telephone Number: (248) 603-0535
                                         Telecopy Number: (248) 603-0548
                                         E-Mail: andre.nazareth@53.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         NORDEA BANK FINLAND PLC, as a Bank

                                         By: /s/ Gerald Chelius
                                             -----------------------------------
                                             Name: Gerald Chelius
                                             Title: Senior Vice President

                                         By: /s/ Thomas P. Hickey
                                             -----------------------------------
                                             Name: Thomas P. Hickey
                                             Title: Vice President

                                         437 Madison Avenue
                                         New York, NY 10022
                                         Attention: Thomas P. Hickey
                                         Telephone Number: (212) 318-9306
                                         Telecopy Number: (212) 318-9318
                                         E-Mail: thomas.hickey@nordea.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         THE BANK OF NEW YORK, as a Bank

                                         By: /s/ Kenneth McDonnell
                                             -----------------------------------
                                             Name: Kenneth McDonnell
                                             Title: Vice President

                                         1 Wall Street, 21st Floor
                                         New York, NY 10286
                                         Attention: Kenneth McDonnell
                                         Telephone Number: (212)635-1066
                                         Telecopy Number: (212)635-7970
                                         E-Mail: kmcdonnell@bankofny.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         UFJ BANK LIMITED, as a Bank

                                         By: /s/ Stephen C. Small
                                             -----------------------------------
                                             Name: Stephen C. Small
                                             Title: Senior Vice President and
                                                    Area Manager

                                         55 East 52nd Street
                                         New York, NY 10055
                                         Attention: Stephen Small
                                         Telephone Number: (212) 339-6201
                                         Telecopy Number: (212) 754-1304
                                         E-Mail: stephen_small@ufjbank.co.jp

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         BANCA DI ROMA - CHICAGO BRANCH,
                                         as a Bank

                                         By: /s/ James Semonchik
                                             -----------------------------------
                                             Name: James Semonchik
                                             Title: Vice President

                                         By: /s/ Enrico Verdoscia
                                             -----------------------------------
                                             Name: Enrico Verdoscia
                                             Title: Senior Vice President

                                         225 W. Washington, Suite 1200
                                         Chicago, IL 60606
                                         Attention: James Semonchik
                                         Telephone Number: (312) 704-2629
                                         Telecopy Number: (312) 726-3058
                                         E-Mail: bdrchjs@ameritech.net
                                                 bdrchjb@ameritech.net

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         TAIPEI BANK, New York Agency, as a Bank

                                         By: /s/ Sophia Jing
                                             -----------------------------------
                                             Name: Sophia Jing
                                             Title: Vice President and
                                                    General Manager

                                         100 Wall Street, 14th Floor
                                         New York, NY 10005
                                         Attention: Dan Xu
                                         Telephone Number: (212) 968-9888 Ext.31
                                         Telecopy Number: (212) 968-9800
                                         E-Mail: danfxu@yahoo.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         BANCA NAZIONALE DEL LAVORO S.p.A.,
                                         New York Branch, as a Bank

                                         By: /s/ Francesco Di Mario
                                             -----------------------------------
                                             Name: Francesco Di Mario
                                             Title: Vice President

                                         By: /s/ Carlo Vecchi
                                             -----------------------------------
                                             Name: Carlo Vecchi
                                             Title: Senior Vice President

                                         25 West 51st Street
                                         New York, NY 10019
                                         Attention: Franco Di Mario
                                         Telephone Number: (212) 314-0239
                                         Telecopy Number: (212) 765-2978
                                         E-Mail: francodimario@bnlmail.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                         MANUFACTURERS AND TRADERS TRUST
                                         COMPANY, as a Bank

                                         By: /s/ Stewart Shettle
                                             -----------------------------------
                                             Name: Stewart Shettle
                                             Title: Vice President

                                         National Division, 18th Floor
                                         25 S. Charles Street
                                         Baltimore, MD 21201
                                         Attention: John-Paul Purssord
                                         Telephone Number: (410) 244-4208
                                         Telecopy Number: (410) 244-4239
                                         E-Mail: jpurssord@mandtbank.com

                                SIGNATURE PAGE TO
                              AMENDED AND RESTATED
                       364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                               COMMITMENT SCHEDULE

            (AMENDED AND RESTATED 364-DAY REVOLVING CREDIT AGREEMENT)

<TABLE>
<CAPTION>
           Name of Bank                                   Commitment
           ------------                                   ----------
<S>                                                      <C>
Bank One, NA (Main Office Chicago)                       $ 52,500,000
Citibank, N.A.                                           $ 52,500,000
Commerzbank AG                                           $ 42,500,000
Barclays Bank Plc                                        $ 42,500,000
KeyBank National Association                             $ 42,500,000
Comerica Bank                                            $ 36,500,000
Merrill Lynch Bank USA                                   $ 36,500,000
Royal Bank of Canada                                     $ 32,333,334
Bank Hapoalim B.M.                                       $ 30,000,000
Svenska Handelsbanken AB                                 $ 27,500,000
The Bank of Tokyo-Mitsubishi, LTD                        $ 24,500,000
BNP Paribas                                              $ 24,500,000
PNC Bank, National Association                           $ 24,500,000
Dexia Banque Internationale a Luxembourg                 $ 24,500,000
Danske Bank                                              $ 24,500,000
Standard Federal Bank                                    $ 24,500,000
Wells Fargo Bank, National Association                   $ 24,500,000
KBC Bank, N.V.                                           $ 24,500,000
U.S. Bank, National Association                          $ 24,500,000
Sumitomo Mitsui Banking Corporation                      $ 24,500,000
The Northern Trust Company                               $ 20,000,000
Fifth Third Bank                                         $ 15,000,000
Nordea Bank Finland Plc                                  $ 15,000,000
The Bank of New York                                     $ 15,000,000
UFJ Bank Limited                                         $ 10,000,000
Banca Di Roma                                            $ 10,000,000
Taipeibank                                               $ 10,000,000
Banca Nazionale Del Lavoro S.p.A.                        $  8,000,000
M & T Bank                                               $  6,666,666
                                                         ------------
TOTAL COMMITMENTS:                                       $750,000,000
                                                         ------------
</TABLE>

                                                  SIDLEY AUSTIN BROWN & WOOD LLP

<PAGE>

                                PRICING SCHEDULE

The Applicable Margin shall be as determined by the matrix below (expressed as
basis points):

<TABLE>
<CAPTION>
                        Level I     Level II     Level III     Level IV     Level V
                         Status      Status       Status        Status       Status
                         ------      ------       ------        ------       ------
<S>                     <C>         <C>          <C>           <C>          <C>
Facility Fee               7.0         9.0         12.5          15.0         17.5
Eurodollar Margin         30.5        38.5         47.5          60.0         77.5
All-In Drawn Cost         37.5        47.5         60.0          75.0         95.0
Utilization Fee
(>33%)(1)                 12.5        15.0         15.0          15.0         20.0
</TABLE>

(1) Should the Company exercise its option to convert the then outstanding
aggregate principal amount of the Borrowings hereunder to a term loan, then
pricing on the term loan will be increased to reflect the applicable utilization
fee plus an additional 0.25% term loan premium, regardless of the amount
converted to the term loan.

For the purposes of this Schedule, the following terms have the following
meanings, subject to the final paragraph of this Schedule:

"LEVEL I STATUS" exists at any date if, on such date, the Company's Moody's
Rating is A2 or better and the Company's S&P Rating is A or better.

"LEVEL II STATUS" exists at any date if, on such date, (i) the Company has not
qualified for Level I Status and (ii) the Company's Moody's Rating is A3 or
better and the Company's S&P Rating is A- or better.

"LEVEL III STATUS" exists at any date if, on such date, (i) the Company has not
qualified for Level I Status or Level II Status and (ii) the Company's Moody's
Rating is Baal or better and the Company's S&P Rating is BBB+ or better.

"LEVEL IV STATUS" exists at any date if, on such date, (i) the Company has not
qualified for Level I Status, Level II Status or Level III Status and (ii) the
Company's Moody's Rating is Baa2 or better and the Company's S&P rating is BBB
or better.

"LEVEL V STATUS" exists at any date if, on such date, the Company has not
qualified for Level I Status, Level II Status, Level III Status or Level IV
Status.

                                                  SIDLEY AUSTIN BROWN & WOOD LLP

<PAGE>

"MOODY'S RATING" means, at any time, the rating issued by Moody's Investors
Service, Inc. and then in effect with respect to the Company's senior unsecured
long-term debt securities without third-party credit enhancement.

"S&P RATING" means, at any time, the rating issued by Standard and Poor's Rating
Services, a division of The McGraw Hill Companies, Inc., and then in effect with
respect to the Company's senior unsecured long-term debt securities without
third-party credit enhancement.

"STATUS" means either Level I Status, Level II Status, Level III Status, Level
IV Status or Level V Status.

         The credit ratings to be utilized for purposes of this Schedule are the
ratings assigned to outstanding senior unsecured long-term debt securities of
the Company without third party credit support. Ratings assigned to any
obligation of the Company which is secured or which has the benefit of third
party credit support shall be disregarded.

         The Applicable Margin shall be determined in accordance with the
foregoing table based on the Company's Status as determined from its
then-current Moody's and S&P Ratings. The credit rating in effect on any date
for the purposes of this Schedule is that in effect at the close of business on
such date. If at any time the Company has no Moody's Rating and no S&P Rating,
Level V Status shall exist. Notwithstanding the foregoing, if at any time there
exists a difference between the Moody's Rating and the S&P Rating, the rating
corresponding to the lower of the two ratings shall apply; provided, however,
that if the difference is greater than one level, the Status shall be determined
based upon the rating one level above the lower of the two ratings.

                                                  SIDLEY AUSTIN BROWN & WOOD LLP

<PAGE>

                                    EXHIBIT A

                        FORM OF AMENDED AND RESTATED NOTE

                                                                   _______,_____
                                                                   _____________

         For value received, MASCO CORPORATION, a Delaware corporation MASCO
EUROPE S.A.R.L., a corporation organized under the laws of Luxembourg (the
"Borrower"), promises to pay to the order of____________________(the "Bank"),
for the account of its Applicable Lending Office, the unpaid principal amount of
each Loan made by the Bank to the Borrower pursuant to the Credit Agreement
referred to below on the last day of the Interest Period relating to such Loan.
The Borrower promises to pay interest on the unpaid principal amount of each
such Loan on the dates and at the rate or rates provided for in the Credit
Agreement. All such payments of principal and interest shall be made in Dollars
at the relevant office of the Agent and as required under the Credit Agreement
referenced below.

         All Loans made by the Bank, the respective types and maturities thereof
and all repayments of the principal thereof shall be recorded by the Bank and,
prior to any transfer hereof, appropriate notations to evidence the foregoing
information with respect to each such Loan then outstanding shall be endorsed by
the Bank on the schedule attached hereto, or on a continuation of such schedule
attached to and made a part hereof, provided that the failure of the Bank to
make any such recordation or endorsement shall not affect the obligations of the
Borrower hereunder or under the Credit Agreement.

         It is expressly understood and agreed by the Borrower that (a) the
original principal balance of this note may have been evidenced by a "Note"
under and as defined in the Original Credit Agreement (the "Original Note")
executed by the Borrower and payable to the Bank, and (b) in such event, this
note (i) re-evidences a portion of the payment obligations previously evidenced
by the Original Note, which obligations remain outstanding, (ii) is given in
substitution for and not in repayment of the Original Note and (iii) is in no
way intended to constitute a novation of the Original Note.

         This note is one of the Notes referred to in the Amended and Restated
364-Day Revolving Credit Agreement dated as of November 7, 2003 among the
Borrower, Masco Corporation Masco Europe S.a.r.l. the banks party thereto and
Bank One, NA (Main Office - Chicago), as Agent (as the same may be amended,
modified, supplemented or restated from time to time, the "Credit Agreement").
Terms defined in the Credit Agreement are used herein with the same meanings.

                                                  SIDLEY AUSTIN BROWN & WOOD LLP

                                       1
<PAGE>

         This note shall be construed in accordance with and governed by the
laws of the State of Illinois. Reference is made to the Credit Agreement for
provisions for the prepayment hereof and the acceleration of the maturity
hereof.

                                         MASCO CORPORATION MASCO EUROPE
                                         S.A.R.L.
                                         By: ___________________________________
                                             Title _____________________________

                                                  SIDLEY AUSTIN BROWN & WOOD LLP

                                       2
<PAGE>

                                  Note (cont'd)
                         LOANS AND PAYMENTS OF PRINCIPAL

<TABLE>
<CAPTION>
                                         Amount of
         Amount of                       Principal     Maturity       Notation
Date       Loan        Type of Loan       Repaid         Date         Made By
--------------------------------------------------------------------------------
<S>      <C>           <C>               <C>           <C>            <C>
________________________________________________________________________________
________________________________________________________________________________
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________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
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________________________________________________________________________________
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</TABLE>

                                                  SIDLEY AUSTIN BROWN & WOOD LLP

                                       3
<PAGE>

                                   EXHIBIT B-1
                                   OPINION OF
                             COUNSEL FOR THE COMPANY

                                                                    Closing Date

To the Banks and the Agent
 Referred to Below
c/o Bank One, NA (Main Office - Chicago), as Agent
Bank One Plaza
Chicago, Illinois 60670

Dear Sirs:

         I am Senior Vice President-General Counsel of Masco Corporation (the
"Company") and in that capacity have responsibility for the general legal
affairs of the Company, Masco Europe S.a.r.l., a Wholly-Owned Subsidiary of the
Company organized under the laws of Luxembourg ("Masco Europe") and the other
Subsidiaries of the Company. I am familiar with the Amended and Restated 364-Day
Revolving Credit Agreement dated as of November 7, 2003 (the "Credit Agreement")
among the Company, Masco Europe, the Banks party thereto as lenders, Citibank,
N.A., as Syndication Agent, Commerzbank AG, Barclays Bank Plc and KeyBank
National Association, as Documentation Agents, and Bank One, NA (Main Office -
Chicago), as Administrative Agent. Terms defined in the Credit Agreement are
used herein as therein defined. This opinion is being rendered to you pursuant
to Section 3.02(B) of the Credit Agreement.

         I, or members of the Company's legal staff, have examined originals or
copies, certified or otherwise, identified to my or their satisfaction, of such
documents, corporate records, certificates of public officials and other
instruments and have conducted such other investigations of fact and law as I
have deemed necessary or advisable for purposes of this opinion.

         Upon the basis of the foregoing, I am of the opinion that:

         1. The Company is a corporation duly incorporated, validly existing and
in good standing under the laws of Delaware, and has all corporate powers and
all material governmental licenses, authorizations, consents and approvals
required to carry on its businesses substantially as now conducted.

         2. The execution, delivery and performance by the Company of the Credit
Agreement and the Notes are within the Company's corporate powers, have been
duly authorized by all necessary corporate action of the Company, require no
action in respect of the Company by, or filing in respect of the Company with,
any governmental body, agency or official (except filings under the Securities
Exchange Act of 1934) and do not contravene, or constitute a default under any
provision of applicable law or regulation or of the certificate or by-laws of
the Company or of any agreement, judgment, injunction, order, decree or other
instrument known to

                                                  SIDLEY AUSTIN BROWN & WOOD LLP

                                       1
<PAGE>

me to be binding upon the Company or result in the creation or imposition of any
Lien on any asset of the Company or any of its Subsidiaries under any such
agreement or instrument.

         3. The Credit Agreement constitutes a valid and binding agreement of
the Company and Masco Europe and the Notes constitute valid and binding
obligations of the Company and Masco Europe, in each case enforceable in
accordance with its terms except as the same may be limited by bankruptcy,
insolvency or similar laws affecting creditors' rights generally and by general
principles of equity.

         4. There is no action, suit or proceeding pending against, or to the
best of my knowledge threatened against or affecting, the Company or any of its
Subsidiaries before any court or arbitrator or any governmental body, agency or
official which, in my opinion, has resulted in or is likely to result in a
Material Adverse Change, or which in any manner draws into question the validity
of the Credit Agreement or the Notes.

         My opinion in paragraph 3 as it relates to Masco Europe is based solely
on the opinion of Linklaters Loesch, Luxembourg counsel of Masco Europe, and is
limited, qualified and conditioned as provided therein.

                                                   Very truly yours,

                                                   John R. Leekley
                                                   Senior Vice President-
                                                   General Counsel

                                                  SIDLEY AUSTIN BROWN & WOOD LLP

                                       2
<PAGE>

                                   EXHIBIT B-2
                                   OPINION OF
                            COUNSEL FOR MASCO EUROPE

                                    Attached

                                                  SIDLEY AUSTIN BROWN & WOOD LLP

                                       1
<PAGE>
[LINKLATERS LOESCH LETTERHEAD]

To the Banks and the Agents referred to below

c/o Bank One, NA (Main Office - Chicago), as Agent

7 November 2003

RE:     MASCO EUROPE S.A.R.L. - USD $750,000,000 AMENDED AND RESTATED 364-DAY
        REVOLVING CREDIT AGREEMENT

Dear Sirs,

1       INTRODUCTION

        We have acted as counsel to Masco Europe S.A.R.L., a corporation
        organized under the laws of the Grand-Duchy of Luxembourg (the
        "BORROWER") in connection with the Amended and Restated 364-Day
        Revolving Credit Agreement dated 7 November 2003 (the "AGREEMENT") among
        Masco Corporation ("MASCO"), the Borrower, the Banks party thereto as
        lenders, Citibank N.A. as Syndication Agent, Commerzbank AG, Barclays
        Bank PLC and Keybank National Association, as Documentation Agents, and
        Bank One, NA (Main Office - Chicago) as Administrative Agent.

        Terms defined in the Agreement are used herein as therein defined.

        This opinion is being rendered to you pursuant to Section 3.02 (B) of
        the Agreement.

2       LUXEMBOURG LAW

        This opinion is limited to Luxembourg law as applied by the Luxembourg
        courts and published and in effect on the date of this opinion. It is
        given on the basis that all matters relating to it will be governed by,
        and that it (including all terms used in it) will be construed in
        accordance with, Luxembourg law. In this opinion, Luxembourg legal
        concepts are expressed in English terms and not in their original French
        terms. The concepts concerned may not be identical to the concepts
        described by the same English terms as they exist under the law of other
        jurisdictions.

3       SCOPE OF INQUIRY

        For the purpose of this opinion, we have examined the following
        documents:

        3.1 a final draft of the Agreement dated as of 7 November 2003;

        3.2 certified coordinated Articles of Incorporation of the
        Borrower dated 23 January 2003;

Linklaters is a partnership under English law. A list of the partners in
Linklaters is available on request from the above address.

Please refer www.linklaters.com/regulation for important information on the
regulatory position of the firm

<PAGE>
LINKLATERS LOESCH

        3.3 an excerpt from the Luxembourg Register of Commerce and Companies
            concerning the Borrower dated 26 August 2003;

        3.4 minutes of resolutions of the Board of Managers of the Borrower
            dated 4 November 2003; and

        3.5 a certificate signed by Mr. Andre Pesch on behalf of the Board of
            Managers of the Borrower dated 4 November 2003.

4       ASSUMPTIONS

        For the purpose of this opinion, we have made the following assumptions;

        4.1 All copy and draft documents conform to the originals and all
            originals are genuine and complete.

        4.2 Each signature on the originals is the genuine signature of the
            individual concerned.

        4.3 The Agreement constitutes valid and binding obligations of the
            Borrower under the laws of the State of Illinois applicable thereto.

        4.4 The resolutions referred to in paragraph 3.4 have been duly and
            validly taken and remain in full force and effect without
            modification.

        4.5 The Agreement has been executed in or substantially in the form of
            the draft examined by us.

        4.6 The facts stated in the certificate referred to in paragraph 3.5
            are correct.

5       OPINION

        Based on the documents referred to and the assumptions in paragraph 4
        and subject to the qualifications in paragraph 6 and to any matters not
        disclosed to us, we are of the following opinion:

        5.1 The Borrower has been duly incorporated and is existing as a
            "societe a responsabilite limitee" under the laws of the Grand-Duchy
            of Luxembourg.

        5.2 The Borrower has the corporate power to enter into the Agreement and
            to execute the Notes.

        5.3 The execution, delivery and performance by the Borrower of the
            Agreement and the Notes have been duly authorised by all necessary
            corporate action of the Borrower and do not contravene, or
            constitute a default under any provision of applicable law or
            regulation or of the Articles of Incorporation of the Borrower.

        5.4 Under Luxembourg law, there are no governmental or regulatory
            filings, consents, approvals or authorisations required by the
            Borrower for the entering into of the Agreement or the execution of
            the Notes.

        5.5 The execution, delivery and performance of the Agreement and the
            Notes do not violate Luxembourg law.

        5.6 The courts of Luxembourg will recognise and give effect to the
            jurisdiction clause contained in section 9.10 of the Agreement.

                                                                     Page 2 of 5

<PAGE>
LINKLATERS LOESCH

        5.7  A judgment of a State or Federal Court located in the State of
             Illinois would be recognised and enforced by the Courts of
             Luxembourg subject to applicable exequatur proceedings and the
             satisfaction of the following criteria:

             -   The foreign Court must properly have had jurisdiction to hear
                 and determine the matter,

             -   The decision of the foreign Court must have been final and
                 conclusive,

             -   The decision of the foreign Court must not have been obtained
                 by fraud, and

             -   The decision of the foreign Court must not be contrary to
                 public policy or have been given in proceedings of criminal
                 nature.

        5.8  The courts of Luxembourg will recognise and give effect to the
             choice of the laws of the State of Illinois as the governing law of
             the Agreement.

        5.9  No stamp duty or registration or similar tax is payable under
             Luxembourg law in connection with the parties entering into the
             Agreement or the Borrower executing the Notes, save that
             registration may be ordered and a registration fee might become
             payable if and when the Agreement were adduced as evidence in a
             Luxembourg court or submitted to another Luxembourg public
             authority ("autorite constituee").

        5.10 It is not necessary under the laws of Luxembourg in order to
             enable the Agent or the Banks to enforce their rights under the
             Agreement or any Notes to which the Borrower is a party against the
             Borrower that the Agent or the Banks should be licensed, qualified
             or otherwise entitled to carry on business in Luxembourg. By reason
             of the execution, delivery and performance of the Agreement and the
             Notes to which it is a party, neither the Agent nor any Bank will
             be deemed to be resident domiciled or carrying out business in
             Luxembourg or the subject of taxation under the laws of Luxembourg.

        5.11 Neither the Borrower nor any of its properties or assets have any
             immunity from the jurisdiction of any court or from legal process
             under the laws of Luxembourg.

        5.12 The Borrower is not required by the existing laws of Luxembourg to
             make any deduction or withholding from any amount due under the
             Agreement or the Notes.

6       QUALIFICATIONS

        This opinion is subject to the following qualifications:

        6.1 This opinion is subject to all limitations arising from bankruptcy,
            insolvency, liquidation, moratorium, reorganisation and other laws
            of general application relating to or affecting the rights of
            creditors.

        6.2 In Luxembourg, remedies such as specific performance and injunction
            may not be available.

        6.3 In Luxembourg, enforcement may be limited by general principles of
            good faith.

        6.4 Claims may become barred under the statutes of limitation or may be
            or become subject to defences of set-off and counterclaim.

                                                                     Page 3 of 5

<PAGE>
LINKLATERS LOESCH

        6.5  Where obligations are to be performed in a jurisdiction  outside
             Luxembourg, they may not be enforceable in Luxembourg to the extent
             that performance would be illegal under the laws of that other
             jurisdiction.

        6.6  Any obligation to pay a sum of money in a currency other than the
             EURO will be enforceable in Luxembourg in terms of Luxembourg
             francs or EURO only. Monetary judgments may be expressed in a
             foreign currency or its EURO equivalent at the time of judgment or
             payment.

        6.7  Obligations to make payments that may be regarded as penalties
             might not be enforceable under Luxembourg law.

        6.8  The admissibility in evidence of the Agreement and/or the Notes
             before a Luxembourg court or another Luxembourg public authority
             ("autorite constituee") may require a complete or partial
             translation of such document into French or German.

        6.9  Contractual provisions allowing the service of process against the
             Borrower could not prevent a Luxembourg court from holding as valid
             the service of process against the Borrower in accordance with
             applicable laws at the registered office of the Borrower.

        6.10 Luxembourg courts will not necessarily award costs and
             disbursements in litigation in accordance with contractual
             provisions in this regard.

        6.11 A certificate, determination, calculation or designation of any
             party to the Agreement as to any matter provided therein might be
             held by a Luxembourg court not to be conclusive, final and binding
             if, for example, it could be shown to have an unreasonable or
             arbitrary basis or in the event of manifest error.

        6.12 Any term of the Agreement may be amended orally by the parties
             thereto or by the conduct of the parties thereto, notwithstanding
             any provision to the contrary contained therein.

        6.13 We reserve our opinion as to the extent to which a Luxembourg court
             would, in the event of any relevant illegality, sever the offending
             provisions and enforce the remainder of the transaction of which
             such provisions form a part, notwithstanding any express
             contractual provisions in this regard.

        6.14 Our opinion that the Borrower is existing is based on the excerpt
             from the Register of Commerce and Companies. It should be noted
             that a search in such Register is not capable of revealing
             conclusively whether or not a winding up petition has been
             presented because notice of a winding up order or a winding up
             resolution passed may not be filed immediately with the Register of
             Commerce and Companies.

        6.15 We have not been instructed to review any tax matters (other than
             those matters expressly mentioned in this opinion) and any
             reference to Luxembourg law herein shall exclude the laws relating
             to such matters.

        6.16 We express no opinion as to the accuracy of any warranties and
             representations given on made by the Borrower (expressly or
             impliedly), save and insofar as the matters warranted are the
             subject matter of specific opinions in this letter.

                                                                     Page 4 of 5

<PAGE>
LINKLATERS LOESCH

7       RELIANCE

        This opinion is solely for your benefit and the benefit of the Banks and
        solely for the purpose of the execution and performance of the Agreement
        and/or the Notes. It is not to be transmitted to anyone else nor is it
        to be relied upon by anyone else or for any other purpose or quoted or
        referred to in any public document or filed with anyone without our
        written consent; provided, that notwithstanding anything in this opinion
        letter to the contrary, (a) the Borrower and Masco may refer to and file
        a copy of this opinion as required by applicable securities laws and
        (b) you may disclose this opinion (i) to prospective successors and
        assigns of the addressees hereof, (ii) to regulatory authorities having
        jurisdiction over any of the addressees hereof or their successors and
        assigns, and (iii) pursuant to valid legal process, in each case without
        our prior consent.

                                Yours faithfully,
                                Linklaters Loesch

                                /s/ Janine Biver

                                Janine BIVER

                                                                     Page 5 of 5

<PAGE>

                                    EXHIBIT C
                       ASSIGNMENT AND ASSUMPTION AGREEMENT

         AGREEMENT dated as of__________ ______,______, among ASSIGNOR (the
"Assignor"), ASSIGNEE (the "Assignee"), MASCO CORPORATION (the "Company") and
Bank One, NA (Main Office - Chicago), as Agent (the "Agent").

                                   WITNESSETH

         WHEREAS, this Assignment and Assumption Agreement (the "Agreement")
relates to the Amended and Restated 364-Day Revolving Credit Agreement dated as
of November 7, 2003 among the Company, Masco Europe S.a.r.l., a wholly-owned
subsidiary of the Company organized under the laws of Luxembourg, the Banks
party thereto as lenders, Citibank, N.A., as Syndication Agent, Commerzbank AG,
Barclays Bank Pic and KeyBank National Association, as Documentation Agents, and
Bank One, NA (Main Office - Chicago), as Administrative Agent (the "Credit
Agreement").

         WHEREAS, as provided under the Credit Agreement, the Assignor has a
Commitment to make Loans to the Borrowers in an aggregate principal amount at
any time outstanding not to exceed $__________________;

         WHEREAS, Loans made to the Borrowers by the Assignor under the Credit
Agreement in the aggregate principal amount of $_____________________are
outstanding at the date hereof; and

         WHEREAS, the Assignor proposes to assign to the Assignee all of the
rights of the Assignor under the Credit Agreement in respect of a portion of its
Commitment thereunder in an amount equal to $________________________(the
"Assigned Amount"), together with a corresponding portion of its outstanding
Loans, and the Assignee proposes to accept assignment of such rights and assume
the corresponding obligations from the Assignor on such terms;

         NOW, THEREFORE, in consideration of the foregoing and the mutual
agreements contained herein, the parties hereto agree as follows:

         SECTION 1. Definitions. All capitalized terms not otherwise defined
herein have the respective meanings set forth in the Credit Agreement.

         SECTION 2. Assignment. The Assignor hereby assigns and sells to the
Assignee all of the rights of the Assignor under the Credit Agreement to the
extent of the Assigned Amount, and the Assignee hereby accepts such assignment
from the Assignor and assumes all of the obligations of the Assignor under the
Credit Agreement to the extent of the Assigned Amount, including the purchase
from the Assignor of the corresponding portion of the principal amount of the
Loans made by the Assignor outstanding at the date hereof. Upon the execution
and delivery hereof by the Assignor, the Assignee, the Company and the Agent and
the payment of the amount specified in Section 3 required to be paid on the date
hereof (1) the Assignee shall, as of the date hereof, succeed to the rights and
be obligated to perform the obligations of a Bank under the Credit Agreement
with a Commitment in an amount equal to the Assigned Amount,

                                                  SIDLEY AUSTIN BROWN & WOOD LLP

                                       1
<PAGE>

and (ii) the Commitment of the Assignor shall, as of the date hereof, be reduced
by a like amount and the Assignor released from its obligations under the Credit
Agreement to the extent such obligations have been assumed by the Assignee. The
assignment provided for herein shall be without recourse to the Assignor.

         SECTION 3. Payments. As consideration for the assignment and sale
contemplated in Section 2 hereof, the Assignee shall pay to the Assignor on the
date hereof in Federal funds an amount equal to $___________________.(1) It is
understood that facility fees accrued to the date hereof are for the account of
the Assignor and such fees accruing from and including the date hereof in
respect of the Assigned Amount, are for the account of the Assignee. Each of the
Assignor and the Assignee hereby agrees that if it receives any amount under the
Credit Agreement which is for the account of the other party hereto, it shall
receive the same for the account of such other party to the extent of such other
party's interest therein and shall promptly pay the same to such other party.

         SECTION 4. Consent of the Company and the Agent. This Agreement is
conditioned upon the consent of the Company and the Agent pursuant to Section
9.06(C) of the Credit Agreement, the execution of this Agreement by the Company
and the Agent is evidence of this consent. Pursuant to Section 9.06(C) the
Company agrees to execute and deliver or cause to be executed and delivered a
Note payable to the order of the Assignee to evidence the assignment and
assumption provided for herein.

         SECTION 5. Non-Reliance on Assignor. The Assignor makes no
representation or warranty in connection with, and shall have no responsibility
with respect to, the solvency, financial condition, or statements of the
Company, or the validity and enforceability of the obligations of the Company in
respect of the Credit Agreement or any Note. The Assignee acknowledges that it
has, independently and without reliance on the Assignor, the Agent or any other
Bank, and based on such documents and information as it has deemed appropriate,
made its own credit analysis and decision to enter into this Agreement and will
continue to be responsible for making its own independent appraisal of the
business, affairs and financial condition of the Company.

         SECTION 6. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Illinois.

         SECTION 7. Counterparts. This Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.

-------------------
(1)      Amount should combine principal together with accrued interest and
breakage compensation, if any, to be paid by the Assignee. It may be preferable
in an appropriate case to specify these amounts generically or by formula rather
than as a fixed sum.

                                                  SIDLEY AUSTIN BROWN & WOOD LLP

                                       2
<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed and delivered by their duly authored officers as of the date first
above written.

                                             ASSIGNOR

                                             By_________________________________
                                                Title:__________________________

                                             ASSIGNEE

                                             By_________________________________
                                                Title:__________________________

                                             MASCO CORPORATION

                                             By_________________________________
                                                Title:__________________________

                                             BANK ONE, NA (MAIN OFFICE-CHICAGO),
                                             as Agent

                                             By_________________________________
                                                Title:__________________________

                                                  SIDLEY AUSTIN BROWN & WOOD LLP

                                       3
<PAGE>

                                    EXHIBIT D
                               NOTICE OF BORROWING
                                      Date

To each Bank party to the referenced
Credit Agreement
c/o Bank One, NA (Main Office - Chicago),
as Administrative Agent for the Banks
611 Woodward Avenue
Detroit, MI 48226
Attention:    ______________________

         The Borrower (as hereinafter named), hereby requests a Borrowing
pursuant to Section 2.01 of the Amended and Restated 364-Day Revolving Credit
Agreement, dated as of November 7, 2003, as amended, supplemented or otherwise
modified from time to time (the "Credit Agreement"), by and among Masco
Corporation, a Delaware corporation, Masco Europe S.a.r.l., a wholly-owned
subsidiary of Masco Corporation organized under the laws of Luxembourg, the
Banks party thereto, Citibank, N.A., as Syndication Agent, Commerzbank AG,
Barclays Bank Plc and KeyBank National Association, as Documentation Agents, and
Bank One, NA (Main Office - Chicago), as Administrative Agent (the "Agent").
Capitalized terms used but not defined herein shall have the respective meanings
ascribed thereto in the Credit Agreement. Such Borrowing shall be evidenced by
the Borrower's Note, as applicable.

    (i)  Borrower's Name:_______________________________________________________

    (ii) The Borrowing is in Dollars in the amount of:__________________________
         Existing Loan amount:__________________________________________________
         Repayment:_____________________________________________________________
         Continuation of Eurodollar Loan (Interest Period ending:______________)

         Increased amount:______________________________________________________
         Total Loan amount:_____________________________________________________

    (iii)The Borrowing is to be funded on:_____________________________________

    (iv) The Loans comprising such Borrowing shall be made as Floating Rate
         Eurodollar Loans,

    (v)  In the case of a Eurodollar Borrowing, the Interest Period shall be____
         _______________________________________________________________________
         _______________________________________________________________________
         ______________________________________________________________________.

                         _____________________________
                                  as Borrower

                                                  SIDLEY AUSTIN BROWN & WOOD LLP

                                       1
<PAGE>

                                    EXHIBIT E
                         FORM OF DESIGNATION AGREEMENT

                           Dated_______________, 200_

         Reference is made to the $750,000,000 Amended and Restated 364-Day
Revolving Credit Agreement dated as of November 7, 2003 (as amended, modified,
supplemented or restated from time to time, the "Credit Agreement") among Masco
Corporation, a Delaware corporation (the "Company"), Masco Europe S.a.r.l., a
wholly-owned subsidiary of the Company organized under the laws of Luxembourg
(together with the Company, the "Borrowers"), the Banks party thereto, Citibank,
N.A., as Syndication Agent, Commerzbank AG, Barclays Bank Plc and KeyBank
National Association, as Documentation Agents, and Bank One, NA (Main Office -
Chicago), as Administrative Agent. Terms defined in the Credit Agreement are
used herein as therein defined.

         ________________(the "Designator"), _________________(the "Designee"),
and the Borrowers, agree as follows:

         1.       The Designator hereby designates the Designee, and the
Designee hereby accepts such designation, as its Designated Lender under the
Credit Agreement.

         2.       The Designator makes no representations or warranty and
assumes no responsibility with respect to the financial condition of the
Borrowers or the performance or observance by the Borrowers of any of its
obligations under the Credit Agreement or any other instrument or document
furnished pursuant thereto.

         3.       The Designee (i) confirms that it has received a copy of the
Credit Agreement, together with copies of the financial statements referred to
in Article IV thereof and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Designation Agreement; (ii) agrees that it will, independently and without
reliance upon the Agent, the Designator or any other Bank and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking any action it may be
permitted to take under the Credit Agreement; (iii) confirms that it is an
Eligible Designee; (iv) appoints and authorizes the Designator as its
administrative agent and attorney-in-fact and grants the Designator an
irrevocable power of attorney to receive payments made for the benefit of the
Designee under the Credit Agreement and to deliver and receive all
communications and notices under the Credit Agreement, if any, that Designee is
obligated to deliver or has the right to receive thereunder; (v) acknowledges
that it is subject to and bound by the confidentiality provisions of the Credit
Agreement (except as permitted under Section 9.08 thereof); and (vi)
acknowledges that the Designator retains the sole right and responsibility to
vote under the Credit Agreement, including, without limitation, the right to
approve any amendment, modification or waiver of any provision of the Credit
Agreement, and agrees that the Designee shall be bound by all such votes,
approvals, amendments, modifications and waivers and all other agreements of the
Designator pursuant to or in connection with the Credit Agreement, all subject
to Section 9.05 of the Credit Agreement.

                                                  SIDLEY AUSTIN BROWN & WOOD LLP

                                       1
<PAGE>

         4.       Following the execution of this Designation Agreement by the
Designator, the Designee and the Borrowers, it will be delivered to the Agent
for acceptance and recording by the Agent. The effective date of this
Designation Agreement shall be the date of acceptance thereof by the Agent,
unless otherwise specified on the signature page hereto (the "Effective Date").

         5.       Upon such acceptance and recording by the Agent, as of the
Effective Date (a) the Designee shall have the right to make Loans as a Bank
pursuant to Section 2.01 of the Credit Agreement and the rights of a Bank
related thereto and (b) the making of any such Loans by the Designee shall
satisfy the obligations of the Designator under the Credit Agreement to the same
extent, and as if, such Loans were made by the Designator.

         6.       This Designation Agreement shall be governed by, and construed
in accordance with, the laws of the State of Illinois.

                                                  SIDLEY AUSTIN BROWN & WOOD LLP

                                       2
<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Designation Agreement
to be executed by their respective officers hereunto duly authorized, as of the
date first above written.

Effective Date(2):

                                             NAME OF DESIGNATOR

                                             By: _______________________________
                                             Name: _____________________________
                                             Title: ____________________________

                                             NAME OF DESIGNEE

                                             By: _______________________________
                                             Name: _____________________________
                                             Title: ____________________________

                                             MASCO CORPORATION

                                             By: _______________________________
                                             Name: _____________________________
                                             Title: ____________________________

                                             MASCO EUROPE S.A.R.L.

                                             By: _______________________________
                                             Name: _____________________________
                                             Title: ____________________________

Accepted and Approved this
_____day of________, _____

BANK ONE, NA (MAIN OFFICE - CHICAGO), as Agent

By: _______________________________
Title: ____________________________

_________________
(2)      This date should be no earlier than the date of acceptance by the
Administrative Agent.

                                                  SIDLEY AUSTIN BROWN & WOOD LLP

                                       3

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