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EXHIBIT 10.d
STOCK REPURCHASE AGREEMENT
This Agreement is made as of May 1, 1984 between Masco Corporation, a
Delaware corporation ("Masco"), and Masco Industries, Inc., a Delaware
corporation ("Industries").
WHEREAS, Masco is transferring to Industries certain assets pursuant to
the Masco Corporation Corporate Restructuring Plan (the "Plan") dated as of May
1, 1984 and proposes thereafter, pursuant to the Plan, to distribute as a
dividend (the "Distribution") in excess of 40% of Industries' Common Stock,
$1.00 par value (the "Common Stock"), to the stockholders of Masco;
WHEREAS, as a result of the Distribution, Industries will become a
publicly held corporation and Masco will initially own approximately 50% of the
Common Stock;
WHEREAS, employees of and consultants to Masco and Industries and
their respective subsidiaries may on the date of the Distribution possess share
awards of Common Stock under the Masco Corporation 1984 Restricted Stock
(Industries) Incentive Plan (the "Masco Plan") which are forfeitable to Masco
upon the occurrence of the events specified therein, Industries has established
its own Restricted Stock Incentive Plan and may in the future establish
additional plans (the "Industries Plans") under which shares of Common Stock of
Industries could be awarded to employees of and consultants to Industries and
its
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subsidiaries and affiliated companies subject to forfeiture to Industries, and
Industries may in the future desire to repurchase shares of its outstanding
Common Stock; and
WHEREAS, Masco desires to prevent any of the foregoing events, without
the concurrence of Masco, from resulting in an increase in Masco's percentage
ownership of the outstanding Common Stock as it exists immediately prior to
occurrence of such event;
NOW, THEREFORE, the parties hereby agree as follows:
1. If at any time prior to May 1, 1994, (a) Industries or any of its
subsidiaries shall repurchase any Common Stock or (b) any shares of Common
Stock, which have been awarded to any employees of or consultants to Industries
or its subsidiaries or affiliated companies pursuant to the Industries Plans,
or which have been awarded to any employees of or consultants to Industries or
its subsidiaries or affiliated companies or Masco or its subsidiaries or
affiliated companies pursuant to the Masco Plan, shall be forfeited to
Industries or Masco pursuant to the terms thereof, Industries shall offer to
Masco the opportunity to sell to Industries on the terms and conditions
hereinafter set forth, the number of shares of Common Stock (the "Offered
Shares") necessary to prevent any increase in the percentage of outstanding
shares of Common Stock owned by Masco immediately prior to such repurchase or
forfeiture.
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2. Promptly after any forfeiture pursuant to the Masco Plan should
Masco desire to sell shares of Common Stock to Industries, Masco shall notify
Industries thereof, specifying the number of shares of Common Stock so
forfeited. Promptly after any such repurchase by Industries or forfeiture
pursuant to the Industries Plans, Industries shall notify Masco thereof in
writing, specifying the number of shares of Common Stock so repurchased or
forfeited and the number of shares of Common Stock required to be sold by Masco
to Industries to prevent the increase in percentage ownership as provided in
Paragraph 1. Industries shall thereafter offer Masco the opportunity for 30
days from the date of either of such notices to sell to Industries all (or such
lesser number as is specified by Masco in its acceptance referred to in
Paragraph 3) of the Offered Shares for a purchase price (the "Purchase Price")
equal to (a) in the case of a repurchase of Common Stock by Industries, the
highest repurchase price paid by Industries to a third party during the 30-day
period ending on the date of such repurchase or (b) in the case of the
forfeiture of shares of Common Stock pursuant to the Industries Plans or the
Masco Plan, as the case may be, the fair market value of shares of the Common
Stock at the close of trading on the date of such forfeiture.
3. If Masco shall accept Industries' offer within the 30-day period
specified in Paragraph 2 above by written notice to Industries, then on the date
5 days after the date
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of Masco's acceptance, Masco shall deliver to Industries duly executed
certificates representing the Offered Shares as to which Industries' offer has
been accepted against receipt from Industries of the amount of the Purchase
Price for such Offered Shares.
4. This agreement shall be governed by and construed in accordance with
the laws of the State of Delaware.
5. This Agreement shall not be assigned by either party, except to a
successor to substantially all of the business of a party, without the express
written consent of the other party.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
day and year first above written.
MASCO CORPORATION MASCO INDUSTRIES, INC.
By /s/ [sig] By /s/ [sig]
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Executive Vice President President
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[MASCO INDUSTRIES INC. LETTERHEAD]
September 20, 1985
Xx. Xxxxxxx X. Xxxxxxxxx
Masco Corporation
00000 Xxx Xxxx Xxxx
Xxxxxx, Xxxxxxxx 00000
Re: Restricted Stock Incentive Plans
Dear Xx. Xxxxxxxxx:
This will confirm (i) our arrangements regarding reimbursement of costs
relating to unvested incentive award shares of Masco Corporation ("Masco")
common stock and Masco Industries, Inc. ("Industries") common stock upon
transfers of employment and consulting relationships between Masco and
Industries, (ii) our arrangements regarding reimbursement upon forfeitures of
such shares, and (iii) our prior understandings on the implementation of the
Stock Repurchase Agreement dated May 1, 1984 between Masco and Industries with
respect to Industries' repurchases of its common stock from Masco following the
forfeiture of shares of Industries common stock granted under either Masco's or
Industries' restricted stock incentive plan (the "Industries Stock Incentive
Plans") and following open market repurchases of such stock by Industries.
These procedures have been established in order to attribute the cost of such
incentive shares in respect of the employees of and consultants to Masco and
Industries and to permit Masco, among other things, to achieve its expressed
objective of maintaining its equity ownership in Industries at not more than
50% after any forfeiture of Industries incentive award shares. These procedures
are not intended to alter the rights of the parties under the Corporate
Restructuring Plan or the Stock Repurchase Agreement except as expressly
provided herein, and may be terminated by Masco or Industries at any time
without cause, effective ten days after notice of termination.
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Xx. Xxxxxxx X. Xxxxxxxxx
September 20, 1985
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1. Transfers.
If a person changes employment or a consulting relationship from Masco
to Industries or from Industries to Masco, the new employer will reimburse the
former employer for the cost on the books of the former employer which is
associated with unvested shares of Masco common stock or Industries common
stock awarded under a Masco or Industries incentive plan, to the extent such
shares may continue to vest while the person is engaged by the new employer.
2. Forfeitures By Industries Employees And Consultants.
A. Shares of Industries common stock forfeited by an Industries
employee or consultant which were granted pursuant to either of the Industries
Stock Incentive Plans are deemed automatically acquired by Industries from the
employee or consultant as of the date of the forfeiture notwithstanding any
contrary provision in either of the Industries Stock Incentive Plans.
Industries waives its right under Paragraph 4.02 of the Corporate Restructuring
Plan to require Masco to pay Industries an amount equal to the unamortized cost
of Industries shares forfeited by Industries employees which were granted under
Masco's Industries Stock Incentive Plan and no amount is payable by Industries
to Masco on account of Industries' acquisition of such forfeited shares.
B. Shares of Masco common stock that were granted under the Masco
Restricted Stock Incentive Plan are forfeited by Industries employees and
consultants to Masco upon termination of employment or the consulting
relationship. Masco will reimburse Industries for the cost on Industries' books
which is associated with such forfeited Masco shares.
3. Forfeitures By Masco Employees And Consultants.
If Masco's equity ownership in Industries would exceed 50% at the end
of any month, shares of Industries common stock forfeited by Masco employees
and consultants during such month are deemed automatically acquired by
Industries from those employees and consultants (notwithstanding any contrary
provision in Masco's Industries Stock Incentive Plan) on the last day of such
month to the extent necessary so that Masco's ownership will not exceed 50% as
of such
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Xx. Xxxxxxx X. Xxxxxxxxx
September 20, 1985
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date. Industries will reimburse Masco for its loss arising from such forfeiture
by paying to Masco an amount equal to the fair market value of such shares (as
determined under Paragraph 4 hereof) on the last trading day of such month.
4. Repurchase of Industries Shares On Account Of Forfeitures. If
Masco's equity ownership in Industries would exceed 50% at the end of any month
in which forfeited Industries shares are deemed automatically acquired by
Industries, Industries is deemed to repurchase from Masco, on the last day of
such month, additional shares of Industries common stock to the extent
necessary so that Masco's ownership of Industries common stock does not exceed
50% as of the last day of such month. Pursuant to Paragraph 2(b) of the Stock
Repurchase Agreement, the price for the Industries shares so repurchased from
Masco is the fair market value of such shares at the close of trading on the
last trading day of such month (which is determined by the last sale price for
Industries shares as reported in the NASDAQ National Market System).
5. Repurchase of Industries Shares On Account Of Open Market Purchases.
If Masco's equity ownership in Industries would exceed 50% at the end of any
month in which Industries makes open market purchases of its common stock in
connection with awards of shares under its Industries Stock Incentive Plan or
in connection with employee stock options, Industries is deemed to repurchase
from Masco, on the last day of such month, shares of Industries common stock to
the extent necessary so that Masco's ownership of Industries common stock does
not exceed 50% as of the last day of such month. Notwithstanding Paragraph 2(a)
of the Stock Repurchase Agreement, the price for the Industries shares so
repurchased from Masco is the weighted average price paid by Industries for its
open market share purchases during such month. If Masco's equity ownership of
Industries would exceed 50% at the end of any month in which forfeited
Industries shares are deemed automatically acquired by Industries and in which
Industries makes open market purchases of the types contemplated under
Paragraph 5 hereof, shares shall be deemed to be repurchased by Industries
first pursuant to Paragraph 4. If, after such repurchases pursuant to Paragraph
4, Masco's equity ownership would still exceed 50%, shares shall then be deemed
to be repurchased by Industries pursuant to this Paragraph 5.
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Xx. Xxxxxxx X. Xxxxxxxxx
September 20, 1985
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6. Quarterly Settlement. Masco and Industries will effect a quarterly
settlement of the amounts required hereunder to be (i) reimbursed upon the
transfer of employment or a consulting relationship between Masco and
Industries, (ii) reimbursed to Masco upon the forfeiture of Industries shares
by Masco employees and consultants, (iii) reimbursed to Industries upon the
forfeiture of Masco shares by Industries employees and consultants, and (iv)
paid to Masco for any repurchase of Industries shares pursuant to Paragraphs 4
and 5 hereof.
7. Additional Provisions.
A. Appropriate instructions will be given to Industries' transfer agent
to reflect Industries' ownership of forfeited Industries shares and repurchase
of additional Industries shares.
X. Xxxxx and Industries will promptly notify each other of forfeitures
of shares which are subject to these procedures.
C. These procedures are deemed to be effective as of May 1, 1984,
notwithstanding the fact that certain reports prepared prior to the date hereof
are inconsistent herewith, and this letter supersedes any prior arrangements
with respect to such procedures.
Please confirm your agreement with the foregoing procedures.
Sincerely,
/s/ Xxxxx X. Xxxxxxx
Xxxxx X. Xxxxxxx
Vice President - Finance
Confirmed by Masco Corporation:
By /s/ Xxxxxxx X. Xxxxxxxxx
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Xxxxxxx X. Xxxxxxxxx
Senior Vice President
- Finance
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AMENDMENT TO STOCK REPURCHASE AGREEMENT
AMENDMENT dated as of December 20, 1990 between Masco Corporation, a
Delaware corporation ("Masco"), and Masco Industries, Inc., a Delaware
corporation ("Industries").
WHEREAS, Masco and Industries are parties to a Stock Repurchase
Agreement dated as of May 1, 1984 and a related letter agreement dated
September 20, 1985; and
WHEREAS, Masco and Industries desire to amend the Stock Repurchase
Agreement in connection with the transactions contemplated by the Exchange
Agreement dated as of December 18, 1990 between Masco and Industries;
NOW, THEREFORE, the parties agree that Paragraph 1 of the Stock
Repurchase Agreement dated as of May 1, 1984 is amended to read as follows:
"1. If at any time prior to May 1, 1994, (a) Industries or any of its
subsidiaries shall repurchase any Common Stock or (b) any shares of Common
Stock, which have been awarded to any employees of or consultants to Industries
or its subsidiaries or affiliated companies pursuant to the Industries Plans,
or which have been awarded to any employees of or consultants to Industries or
its subsidiaries or affiliated companies or Masco or its subsidiaries or
affiliated companies pursuant to the Masco Plan, shall be forfeited to
Industries or Masco pursuant to the terms thereof, and as a result of such
repurchase or forfeiture the percentage of outstanding shares of Common Stock
owned by Masco would increase to an amount in excess of 49%, Industries shall
offer to Masco the opportunity to sell to Industries on the terms and
conditions hereinafter set forth, the number of shares of Common Stock (the
"Offered Shares") necessary to reduce the percentage of outstanding shares of
Common Stock owned by Masco to 49%."
Except as specifically amended hereby, the Stock Repurchase Agreement
and related letter agreement referred to above remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Amendment as of the
day and year first above written.
MASCO CORPORATION MASCO INDUSTRIES, INC.
By /s/ [sig] By /s/ [sig]
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Vice President and Secretary President and Chief Operating Officer
