EX-10.1(x)




 EXHIBIT 10.1(x) 

TWENTY-THIRD AMENDMENT 

TO 
 EMPLOYMENT
AGREEMENT 
 This Twenty-third Amendment to Employment Agreement is made and entered into effective as of the 1st day of January
2022, by and between WATSCO, INC., a Florida corporation (hereinafter called the “Company”), and ALBERT H. NAHMAD (hereinafter called the “Employee”). 

RECITALS 

WHEREAS, the Company and the Employee entered into an Employment Agreement effective as of January 31, 1996 (the “Employment
Agreement”) pursuant to which the Employee renders certain services to the Company; and 
 WHEREAS, the Compensation Committee
of the Company’s Board of Directors amended the Employment Agreement effective as of January 1, for each of 2001 through 2021; and 

WHEREAS, the Compensation Committee of the Company’s Board of Directors has determined that the Employee’s Base Salary will
be $600,000 for calendar year 2022; and 
 WHEREAS, the Compensation Committee of the Company’s Board of Directors has
determined the Employee’s use of the Company’s airplane for personal purposes for up to seventy (70) hours during the calendar year 2022. The Company shall pay all fuel and operational costs incident thereto. The value of the
Employee’s usage of the Company’s airplane shall be treated as compensation for tax purposes; and 
 WHEREAS, the
Compensation Committee of the Company’s Board of Directors has set the targets for the long-term performance-based compensation payable in the form of restricted shares by the Company to the Employee for the year 2022; and 

WHEREAS, the long-term performance-based compensation payable by the Company to the Employee for the calendar year 2022 shall not
exceed $10 million. 
 NOW, THEREFORE, in consideration of the mutual promises and covenants set forth in this
Twenty-third Amendment, and other good and valuable consideration, the parties to this Twenty-third Amendment agree as follows: 
 1. All
capitalized terms in this Twenty-third Amendment shall have the same meaning as in the Employment Agreement, unless otherwise specified. 

2. The Employment Agreement is hereby amended by replacing “Exhibit A-1 — 2021 Performance
Goals and Long-term Performance Based Compensation” with the attached “Exhibit A-1 — 2022 Performance Goals and Long-term Performance Based Compensation” thereto. 

3. All other terms and conditions of the Employment Agreement shall remain the same. 











 IN WITNESS WHEREOF, the parties have caused this Twenty-third Amendment to be duly
executed effective as of the day and year first above written. 
  

			
	WATSCO, INC.
		
	By:	 	/s/ Barry S. Logan
		 	Barry S. Logan, Executive Vice President


  

			
	EMPLOYEE
		
	By:	 	/s/ Albert H. Nahmad
		 	Albert H. Nahmad













 EXHIBIT A-1 

2022 PERFORMANCE GOALS AND LONG-TERM PERFORMANCE BASED COMPENSATION 

Overview 
 Watsco’s compensation program is
grounded by the guiding principle that compensation should be highly dependent upon long-term shareholder returns. This key tenet of our compensation philosophy has driven the unique design of our program for many years and has enabled our executive
leadership team to stay solidly focused on long-term performance. We have generated a compounded annual growth rate for total shareholder return of 19% over the last 32 years. 

The most unique aspect of the program is the use of restricted stock that requires an executive to spend his or her entire career with the Company in order to
vest. We believe granting restricted stock effectively balances strategic risk-taking and long-term performance, creates an ownership culture, and aligns the interests of high-performing leaders with the interests of our shareholders. Additionally,
we believe these awards help build a sustainable future by ensuring that our executives make the right long-term business decisions that will survive well past their retirement. 

We began granting restricted stock awards in 1997. All the restricted shares we have granted to our leaders throughout the Company vest upon reaching
retirement age (usually 62 or older). Based on data provided by Equilar, the duration of our cliff-vesting period is solely unique to Watsco. Vesting may also occur at an even later date for those who extend their careers beyond age 62. This means
that our key leaders will not know the value and cannot realize the value of their equity awards until they have spent their career with the Company. As it relates to our CEO, none of his restricted share awards have ever vested. On a
weighted-average basis, his awards will vest in approximately 2.3 years. 
 In formulating the amount of a potential award, the Compensation Committee
believes that the ‘present-value’ of an award versus the ‘face-value’ of an award is considerably less due to the unusually long vesting periods and associated risks of forfeiture. 











 Annual Performance-based Restricted Stock Award 

The formula for determining the CEO’s Annual Performance-based Restricted Stock Award has been consistent, and for 2022 is as follows: 

 

					
	 	  	Amount of Restricted
Stock Award	 
	 Earnings Per Share (EPS)
	  			
	 For each $.01 increase if growth is below 5%
	  	$	43,500	 
		
	 For each $.01 increase if growth is at or above 5%
	  	$	65,000	 
		
	 B.        Increase in Common Stock Price
	  			
	 If the closing price of a share of Common Stock on 12/31/22 does not exceed $312.88
	  	$	0	 
		
	 If the closing price of a share of Common Stock on 12/31/22 exceeds $312.88 but does not equal or exceed $375.45, for
each $0.01 increase in per share price of a share of Common Stock above $312.88
	  	$	1,200	 
		
	 If the closing price of a share of Common Stock on 12/31/22 equals or exceeds $375.45, for each $0.01 increase in per
share price of a share of Common Stock above $312.88
	  	$	1,800	 

 Other Considerations 

The amount of Performance-Based Restricted Stock Award shall be subject to a cap of $10 million. The award shall be paid through the
issuance of a number of restricted shares of Class B Common Stock of the Company (the “Shares”) equal to the amount determined by dividing (x) the Performance-Based Restricted Stock Award Amount by (y) the closing price for
the Class B Common Stock of the Company on the New York Stock Exchange as of the close of trading on December 31, 2022. The value of any fractional shares shall be paid in cash. 

The restrictions on the Shares shall lapse on the first to occur of (i) October 15, 2029, (ii) termination of the
Executive’s employment with the Company by reason of Executive’s disability or death, (iii) the Executive’s termination of employment with the Company for Good Reason, (iv) the Company’s termination of Executive’s
employment without Cause, or (v) the occurrence of a Change in Control of the Company (“Good Reason,” “Cause,” and “Change in Control” to be defined in a manner consistent with the most recent grant of Restricted
Stock by the Company to the Executive). 











 The Performance-Based Restricted Stock Award is being made by the Compensation Committee as performance
awards of restricted stock pursuant to the Company’s 2021 Incentive Compensation Plan or any successor plan (the “Incentive Plan”) and are subject to the limitations contained in Section 5 of the Incentive Plan. 

 

			
	 Effective as of January 1, 2022

	
	COMPENSATION COMMITTEE
		
	By:	 	/s/ Denise Dickins
		 	Denise Dickins, Chair


  

			
	ACKNOWLEDGED AND ACCEPTED
		
	By:	 	/s/ Albert H. Nahmad
		 	Albert H. Nahmad