exv10wxcy






EXHIBIT 10(C)




THE SHERWIN-WILLIAMS COMPANY

2006 EQUITY AND PERFORMANCE INCENTIVE PLAN

(Amended and Restated as of April 21, 2010)




Restricted Stock Grant



	 	 	 	 	 	 	 	 	 

	Grantee:

	 	 	 	Date of Grant:	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 
	 

	 	 	 	Date of Vesting:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 






	 	 	 	 	 

	Number of Time-Based Restricted Shares:
	 	 	 	 
	 

	 	 

	 	 
	Number of Performance-Based Restricted Shares:
	 	 	 	 
	 

	 	 

	 	 
	Total Number of Restricted Shares:
	 	 	 	 
	 

	 	 

	 	 






     1. Grant of Restricted Shares. The Board of Directors (the “Board”) of The Sherwin-Williams
Company (the “Company”) grants to you (the “Grantee”) the aggregate number of shares of Common
Stock, $1.00 par value, of the Company set forth above (the “Restricted Shares”) in accordance with
the terms hereof and of The Sherwin-Williams Company 2006 Equity and Performance Incentive Plan, as
amended and restated as of April 21, 2010 (the “Plan”). Capitalized terms used herein without
definition shall have the meanings assigned to them in the Plan.



     2. (A) Vesting of Performance-Based Restricted Shares. Provided Grantee is continuously
employed from the Date of Grant through the Date of Vesting, inclusive (the “Restriction Period”)
with the Company or a Subsidiary, in Grantee’s present position or in such other position as the
Board may determine entitles Grantee to retain the rights under this grant (such positions being
hereinafter referred to as a “Participating Position”), a percentage ranging from 0% to 100% of the
Performance-Based Restricted Shares shall vest in accordance with the Management Objectives set
forth below. The determination of the percentage of the Performance-Based Restricted Shares that
will vest shall be made after such time as the Board has obtained the information, made the
decisions, and completed the calculations necessary. The percentage of the Performance-Based
Restricted Shares that will vest is based upon (i) the Company achieving a specified Average Return
on Average Equity during the three year period ending on December 31 of the most recently completed
fiscal year prior to the Date of Vesting (“Measurement Period”), and (ii) the Company’s Earnings
Per Share (EPS) during the Measurement Period, as determined in accordance with the following
table:



Percentage of Shares Vesting

Average Return on Average Equity




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cumulative	 	 	 	 	 	15% to less	 	12% to less	 	 
	EPS	 	Above 18%	 	than 18%	 	than 15%	 	Below 12%
	$15.92
	 	 	100	%	 	 	88	%	 	 	75	%	 	 	0	%
	$15.39
	 	 	88	%	 	 	75	%	 	 	63	%	 	 	0	%
	$14.86
	 	 	75	%	 	 	63	%	 	 	50	%	 	 	0	%
	$14.35
	 	 	63	%	 	 	50	%	 	 	44	%	 	 	0	%
	$13.86
	 	 	50	%	 	 	44	%	 	 	38	%	 	 	0	%
	$13.75
	 	 	44	%	 	 	38	%	 	 	31	%	 	 	0	%
	$13.65
	 	 	38	%	 	 	31	%	 	 	25	%	 	 	0	%
	$13.55
	 	 	31	%	 	 	25	%	 	 	19	%	 	 	0	%
	$13.45
	 	 	25	%	 	 	19	%	 	 	13	%	 	 	0	%
	$13.34
	 	 	19	%	 	 	13	%	 	 	7	%	 	 	0	%
	$13.22
	 	 	13	%	 	 	7	%	 	 	0	%	 	 	0	%






 









 





When the Cumulative EPS results during the Measurement Period are between the table values, an
interpolation will be made to determine the vesting percentage calculated to the nearest hundredth
of a percentage. The manner in which the Board will determine Average Return on Average Equity and
EPS during the Measurement Period is set forth on Exhibit A.




          (B) Vesting of Time-Based Restricted Shares. Provided Grantee is continuously employed during
the Restriction Period with the Company or a Subsidiary in Grantee’s present position or in a
different Participating Position, the Time-Based Restricted Shares shall immediately vest in full
on the Date of Vesting.




          (C) Notwithstanding Section 2(A) above, in the event of a “Change of Control” of the Company,
as defined in Section 2(f) of the Plan, any unvested number of shares shall vest and become
exercisable in accordance with Section 12 of the Plan.




     3. Termination of Right to Restricted Shares. (A) On the date Grantee ceases to be
continuously employed in any Participating Position(s) at any time during the Restriction Period,
Grantee shall forfeit and lose all rights to the Restricted Shares, except as otherwise provided
below:




     (i) In the event of the death of Grantee during the Restriction Period, the full
number of Restricted Shares shall immediately vest.




     (ii) In the event Grantee is terminated by the Company or a Subsidiary as a result
of expiration of available disability leave of absence pursuant to applicable Company
policy due to sickness or bodily injury during the Restriction Period, the full number
of Restricted Shares shall immediately vest.




     (iii) In the event Grantee’s employment terminates as a result of normal
retirement age as defined under the applicable retirement plan of the Company or a
Subsidiary, all rights of Grantee under this grant shall continue as if Grantee had
continued employment in a Participating Position. The determination of the percentage
of the number of Restricted Shares that will vest will be made as if Grantee had
remained employed in a Participating Position throughout the Restriction Period.




     (iv) In the event Grantee’s employment terminates as a result of early retirement
(retirement on or after the earliest voluntary retirement age but before normal
retirement age as provided for in the applicable retirement plan of the Company or a
Subsidiary or retirement at an earlier age with the consent of the Board), the Board
shall have the right to cancel Grantee’s rights hereunder, continue Grantee’s rights
hereunder in full, or prorate the number of Restricted Shares granted hereunder for the
portion of the Restriction Period completed as of the date of such retirement or as the
Board may otherwise deem appropriate. In the event Grantee’s rights hereunder continue
in full or the number of Restricted Shares is prorated, determination of the percentage
of the number of Restricted Shares that will vest will be made as if Grantee had
remained employed in a Participating Position throughout the Restriction Period.



          (B) In the event Grantee is transferred from a Participating Position, the Board shall have
the right to cancel Grantee’s rights hereunder, continue Grantee’s rights hereunder in full, or
prorate the number of Restricted Shares granted hereunder for the portion of the Restriction Period
completed




2









 







as of the date of such transfer or as the Board may otherwise deem appropriate. In the
event Grantee’s rights hereunder continue in full or the number of Restricted Shares is prorated,
determination of the percentage of the number of Restricted Shares that will vest will be made as
if Grantee had remained employed in a Participating Position throughout the Restriction Period.




          (C) In the event that Grantee knowingly or willfully engages in misconduct during the
Restriction Period, which is materially harmful to the interests of the Company or a Subsidiary as
determined by the Board, all rights of Grantee in the Restricted Shares shall terminate.




     4. Book Entry Account; Stockholder Rights. Within a reasonable time following the Date of
Grant, the Company shall instruct its transfer agent to establish a book entry account representing
the Restricted Shares in Grantee’s name effective as of the Date of Grant, provided that the
Company shall retain control over the account until the Restricted Shares have vested. On the Date
of Grant, ownership of the Restricted Shares shall immediately transfer to Grantee and, except for
the substantial risk of forfeiture and the restrictions on transfer expressly set forth herein,
Grantee shall be entitled to all voting, dividend, distribution and other ownership rights as may
apply to the Common Stock generally. Notwithstanding the foregoing, any stock dividends or other
in-kind dividends or distributions with respect to Performance-Based Restricted Stock shall be held
by the Company until the related Performance-Based Restricted Shares have become vested in
accordance with this grant and shall remain subject to the forfeiture provisions applicable to the
Performance-Based Restricted Shares to which such dividends or distributions relate.



     5. Transferability. During the Restriction Period, Grantee shall not be permitted to sell,
transfer, pledge, encumber, assign or dispose of the Restricted Shares. The
Restricted Shares granted hereunder shall be deemed to be subject to a substantial risk of
forfeiture within the meaning of Section 83 of the Internal Revenue Code.



     6. Withholding Taxes. If the Company shall be required to withhold any federal, state, local
or foreign tax in connection with the Restricted Shares, Grantee shall pay or make provision
satisfactory to the Company for payment of all such taxes.



     7. No Right to Future Awards or Employment. The grant is a voluntary, discretionary bonus
being made on a one-time basis and it does not constitute a commitment to make any future awards.
The grant and any related payments made to Grantee will not be considered salary or other
compensation for purposes of any severance pay or similar allowance, except as otherwise required
by law. Nothing contained herein will not confer upon Grantee any right with respect to
continuance of employment or other service with the Company or any Subsidiary, nor will it
interfere in any way with any right the Company or any Subsidiary would otherwise have to terminate
Grantee’s employment or other service at any time.



     8. Severability. If any provision of this grant or the application of any provision hereof to
any person or circumstances is held invalid, unenforceable or otherwise illegal, the remainder of
this grant and the application of such provision to any other person or circumstances shall not be
affected, and the provisions so held to be invalid, unenforceable or otherwise illegal shall be
reformed to the extent (and only to the extent) necessary to make it enforceable, valid and legal.



     9. Governing Law. This grant shall be governed by and construed with the internal substantive
laws of the State of Ohio, without giving effect to any principle of law that would result in the
application of the law of any other jurisdiction.



3









 





     10. Application of The Sherwin-Williams Company Executive Compensation Adjustment and
Recapture Policy. Grantee acknowledges and agrees that the terms and conditions set forth in The
Sherwin-Williams Company Executive Compensation Adjustment and Recapture Policy (“Policy”) are
incorporated in this Restricted Stock Grant by reference. To the extent the Policy is applicable
to Grantee, it creates additional rights for the Company with respect to Grantee’s Restricted
Shares.



4









 





Exhibit A




Average Return on Average Equity





	1.	 	Add the beginning and ending shareholder’s equity (less those items relating to extraordinary
events or which result in a distortion of comparative results) with respect to each fiscal
year of the Company beginning with or immediately prior to each year of the Measurement Period
and divide by two to arrive at the Average Equity for each such year.
	 
	2.	 	Divide the Net Income as determined for each such year by the Average Equity of the Company
for each such year to arrive at the Return on Average Equity. Net Income equals Reported Net
Income (less those items relating to extraordinary events or which result in a distortion of
comparative results).
	 
	3.	 	Add the Return on Average Equity for each year of the Measurement Period as determined above
and divide by the number of years in the Measurement Period to arrive at the Average Return on
Average Equity during the Measurement Period.





Example 1:




     (Assuming a three year Measurement Period)



	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Year 3	 	Year 2	 	Year 1
	Beginning Equity
	 	 	465	 	 	 	404	 	 	 	370	 
	Ending Equity
	 	 	492	 	 	 	465	 	 	 	404	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	957	 	 	 	869	 	 	 	774	 
	 
	 	 	 ̧2	 	 	 	 ̧2	 	 	 	 ̧2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Average Equity
	 	 	478.5	 	 	 	434.5	 	 	 	387	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income
	 	 	86	 	 	 	75	 	 	 	65	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Return on
	 	 	86 =18.0	%	 	 	75 =17.3	%	 	 	65 =16.8	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Average Equity
	 	 	478.5	 	 	 	434.5	 	 	 	387	 






	 	 	 	 	 
	Year	 	Return on Average Equity
	 
	 	 	 	 
	Year 1
	 	 	16.8	%
	Year 2
	 	 	17.3	%
	Year 3
	 	 	18.0	%
	 
	 	 	 	 
	 
	 	52.1   ̧  3  = 17.3%  Average Return on Average Equity






5









 






Cumulative Earnings Per Share



Add the Earnings Per Share (EPS) with respect to each fiscal year of the Company beginning with or
immediately prior to each year of the Measurement Period.




Example 2:




	 	 	 	 	 	 	 
	Year 1 EPS	 	Year 2 EPS	 	Year 3 EPS	 	Cumulative EPS
	 
	 	 	 	 	 	 
	$4.00
	 	$4.20
	 	$4.40
	 	$12.60






6