Masco Cabinetry Pricing Approvals 8/4/2010

1. Masco Cabinetry Pricing Approvals8/4/2010

2. Pricing Approval Transition • Meeting Goal • Present and gain alignment with CFO on pricing approvals transitioning from Mark Oleskiewicz and John Peterson • Purpose is to facilitate the transition, additional work will be done to change and streamline processes over the next year

3. RCG Pricing Approvals – New Customer Pricing Standard New Customer going through setup process Customer is approved by sales Salesperson generally adds a multiplier to setup request (standard factor) Account setup validates factor based on channel and location Factor approved by J Peterson Frequency - HIGH Transition to D Bennett from J Peterson Longer term we question if a Finance approval is required Follow up: determine review/approval level currently in place for BCG. Who signs the letters? Present Future

4. RCG Pricing Approvals – Factor Change Change requested to give an account a non-standard multiplier Most common is a competitive situation regarding geography (boundary areas for freight) – Dealer A is in Kansas City, MO and Dealer B is in Kansas City, KS May be a new multiplier for a customer based on a negotiation – Direct Buy, Carter, Consumers Currently goes to Sales Leadership and M Oleskiewicz for approval Frequency - LOW Transition to D Bennett from M Oleskiewicz Top 50 customers (need threshold $) will go to Jay, John, and Tina for Approval Present Future

5. RCG Pricing Approvals – Pricing Concessions One-off requests to extend promotions or meet competition for specific orders Home center – e-mail approval of R Minogue or K Williams – followed by M Oleskiewicz approval Dealer – Workflow approval of sales leadership followed by M Oleskiewicz approval After the Fact Credits – e-mail approval of sales leadership followed by M Oleskiewicz approval Frequency - MEDIUM D Bennett replaces M Oleskiewicz approval Follow up: work on a report of the exceptions, or $ subject to exceptions (PE code) Present Future

6. RCG Pricing Approvals – New Product Pricing Stage – Gate VP Marketing and M Oleskiewicz collaborate on acceptable pricing. Presented high level group of SKU’s and new styles with profitability and positioning to M Newton for approval. Detailed SKU pricing followed strategy approved and approved by VP Marketing and M Oleskiewicz. Pricing Load M Oleskiewicz approval of detailed list Replacement Parts M Oleskiewicz approval Frequency- LOW Stage – Gate Follow Stage – Gate process with top management approval Detailed SKU pricing approval by Brand VP and S McNeil Pricing Load S McNeil approval of detailed list Replacement Parts S McNeil approval Present Future

7. RCG Pricing Approvals – Ad Hoc Requests This category covers a broad array of situations whereby the customer or sales brings an idea to the table to address a specific need – usually a permanent change Example: Direct Buy response to BMSM Requires specific analysis Analysis done by S McNeil, D Rogers, B Stadler, and/or others based on request Usually followed by a number of meetings to get to a final point Mediated and approved by President for final direction Frequency - LOW Continue to do Ad Hoc analysis and seek approval of Jay, John, and Tina Similar to the OI process, but may vary based on the situation Present Future

8. RCG Pricing Approvals – Project Accounts New account request to support a special customer or project Generally allow discount on price in lieu of programs like coop 5% is around breakeven Frequency - LOW Shawn approve up to 5% discount Doug approve below top 50 customers (need $ amount for threshold) Above top 50 to be approved by Jay, John, and Tina Present Future

9. RCG Pricing Approvals – Commodity Increases Analysis done by Pricing with input from Cost Frequency - LOW N/A for 2011 May be an opportunity with soft/close Present Future

10. RCG Pricing Approvals – Misc Intercompany price setting Bruno approves Issue resolution Account maintenance or list price errors S McNeil approves Frequency - MEDIUM All to be approved by S McNeil Present Future