Document:

Sixth Amendment dated January 1, 2006 to Employment Agreement and Incentive Plan

 EXHIBIT 10.16 
 SIXTH AMENDMENT 
 TO 
 EMPLOYMENT AGREEMENT 
 This Sixth Amendment to Employment Agreement is
made and entered into effective as of January 1, 2006, 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, 2001, January 1, 2002, January 1, 2003, January 1, 2004 and January 1, 2005; and  
 WHEREAS, the Compensation Committee of the Company’s Board of Directors has determined to increase the Employee’s Base Salary from $850,000 to $960,000, effective as of January 1, 2006, and has set the targets for the
performance based compensation payable by the Company to the Employee for the year 2006; and 
 WHEREAS, the Company and the Employee
now desire to amend the Employment Agreement and Exhibit A-1 to the Employment Agreement to reflect the increase in Base Salary and specify the performance based compensation amount payable by the Company to the Employee for the calendar year 2006.

 NOW, THEREFORE, in consideration of the mutual promises and covenants set forth in this Sixth Amendment, and other good and
valuable consideration, the parties to this Sixth Amendment agree as follows: 
 1. All capitalized terms in this Sixth Amendment shall have
the same meaning as in the Employment Agreement, unless otherwise specified. 
 2. The first sentence of Section 4 of the Employment
Agreement is hereby amended to read as follows: 
 “Effective as of January 1, 2006, the Company agrees to pay to
Employee and Employee agrees to accept from the Company a salary at the annual rate of not less than Nine Hundred Sixty Thousand ($960,000) Dollars, payable in bi-weekly or monthly installments.” 
 3. The Employment Agreement is hereby amended by replacing “Exhibit A-1 — 2005 Performance Goals and Performance Based Compensation” with
the attached “Exhibit A-1 — 2006 Performance Goals and Performance Based Compensation” thereto. 
 4. All other terms and
conditions of the Employment Agreement shall remain the same. 

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

			
	COMPANY:
	
	WATSCO, INC.
		
	By:	 	 /s/ Barry S. Logan

		 	Barry S. Logan, Senior Vice President
	
	EMPLOYEE:
	
	 /s/ Albert H. Nahmad

	ALBERT H. NAHMAD

 EXHIBIT A-1 
 2006 Performance Goals and Performance Based Compensation 
  

						
	 IV.
	  	Formula	  		
	 	  	 	  	 Performance
 Based
 Compensation Formula

	A.	  	Earnings Per Share	  		
			
		  	For each $.01 increase	  	$	65,250
			
	 B.
	  	Increase in Common Stock Price	  		
			
		  	(i) If the closing price of a share of Common Stock on 12/31/06 does not exceed $59.81	  	$	0
			
		  	(ii) If the closing price of a share of Common Stock on 12/31/06 exceeds $59.81 but does not equal or exceed $70.25, for each $0.01 increase in per share price of a share of Common Stock above
$59.81	  	$	1,200
			
		  	(iii) If the closing price of a share of Common Stock on 12/31/06 equals or exceeds $70.25, for each $0.01 increase in per share price of a share of Common Stock above $59.81	  	$	1,800
			
	 V.
	  	Method of Payment	  		
		
		  	 A.     Cash. The Performance Based Compensation determined for 2006 under the formula set forth in
Section I above shall be paid in cash if and to the extent such Compensation does not exceed $5,000,000.

		
		  	 B.     Restricted Stock. If the Performance Based Compensation determined for 2006 under the
formula set forth in Section I above exceeds $5,000,000 (such excess amount being referred to as the “Additional Amount”), the Executive shall be granted a number of shares of restricted Class B Common Stock of the Company (the
“Shares”) equal to the amount determined by dividing (i) two times the Additional Amount, by (ii) the closing price for the Class B Common Stock of the Company on the American Stock Exchange as of the close of trading on December 31, 2006.
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, 2018 (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).

		
	 VI.
	  	2001 Incentive Compensation Plan
		
		  	 The performance based award and method of payment specified above (the “Award”) were made by the Compensation Committee in accordance with
Section 8 of the Company’s 2001 Incentive Compensation Plan (the “Incentive Plan”) and are subject to the limitations contained in Section 5 of the Incentive Plan. The Award is intended to qualify as “performance based
compensation” under Section 162(m) of the Internal Revenue Code.

  

			
	Dated: Effective as of January 1, 2006	 	 /s/ Paul F. Manley

		 	Paul F. Manley, Chairman
		 	Compensation Committee
		
		 	Acknowledged and Accepted:
		
		 	 /s/ Albert H. Nahmad

		 	Albert H. NahmadSecond Amendment to Revenue Interest

 Exhibit 10.16 
 SECOND AMENDMENT 
 TO 
 REVENUE INTERESTS ASSIGNMENT AGREEMENT 
 This SECOND AMENDMENT TO REVENUE
INTERESTS ASSIGNMENT AGREEMENT (this “Amendment”) is dated as of January 9, 2004, and is entered into by and among ORTHOVITA, INC., a Pennsylvania corporation (“Orthovita”), VITA SPECIAL PURPOSE
CORP., a Delaware corporation and wholly-owned subsidiary of Orthovita (“Assignor”), and PAUL ROYALTY FUND, L.P., a Delaware limited partnership (formerly known as Paul Capital Royalty Acquisition Fund, L.P.)
(“Assignee”). 
 RECITALS 
 A. Orthovita, Assignor and Assignee are parties to the Revenue Interests Assignment Agreement, dated as of October 16, 2001, and as amended by the Amendment to Revenue Interests Assignment Agreement and Stock
Purchase Agreement, dated as of March 22, 2002 (as amended, modified or supplemented from time to time, the “Assignment Agreement”). 
 B. The parties hereto desire to amend the Assignment Agreement, subject to the terms and conditions of this Amendment. 
 NOW, THEREFORE, in consideration of the agreements and provisions herein contained and for other valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto do hereby
agree as follows: 
 Section 1. Definitions. Any capitalized term used but not otherwise defined herein shall have the meanings ascribed to
such terms in the Assignment Agreement. 
 Section 2. Amendments to the Assignment Agreement Section 1.01. Section 1.01 of the
Assignment Agreement is hereby amended, effective as of the date this Amendment becomes effective in accordance with Section 3 hereof, by deleting the definition of “Advance Payments” in its entirety and inserting the following
new definition of “Advance Payments” in replacement thereof: 
 “Advance Payments” shall
mean for the calendar year ending December 31, 2003, the first $1.0 million received by Orthovita in the Fiscal Year 2003 in respect of annual Net Sales for Fiscal Year 2003 (including payments under License Agreements and Distribution
Agreements); for the calendar year ending December 31, 2004, the first $1.1 million received by Orthovita in the Fiscal Year 2004 in respect of annual Net Sales for Fiscal Year 2004 (including payments under any License Agreements or
Distribution Agreements); and for each subsequent calendar year thereafter through the year ending December 31, 2016, the first $3.0 million received by Orthovita in respect of annual Net Sales during the applicable Fiscal Year (including
payments under License Agreements or Distribution Agreements). 

 Section 3. Condition Precedent. This Amendment shall be effective as of the date of this Amendment
(the “Effective Date”) upon the satisfaction in full of the following condition precedent: each party hereto shall have executed an original counterpart of this Amendment and shall have delivered (including by way of facsimile
transmission) the same to the other parties hereto. 
 Section 4. General Confirmations. 
 4.01 Continuing Effect. Except as specifically provided herein, the Assignment Agreement and the other Transaction Documents shall
remain in full force and effect in accordance with their respective terms and are hereby ratified and confirmed in all respects. 
 4.02 No Waiver. This Amendment is limited as specified and the execution, delivery and effectiveness of this Amendment shall not operate as a modification, acceptance or waiver of any provision of the Assignment
Agreement and the other Transaction Documents, except as specifically set forth herein. 
 4.03 References. From and
after the Effective Date, (i) all references in the Assignment Agreement to “this Agreement”, “hereto”, “hereof”, “hereunder” or words of like import referring to the Assignment Agreement shall mean the
Assignment Agreement as amended hereby and (ii) all references in the Assignment Agreement, the other Transaction Documents or any other agreement, instrument or document executed and delivered in connection therewith to “Revenue Interests
Assignment Agreement”, “thereto”, “thereof”, “thereunder” or words of like import referring to the Assignment Agreement shall mean the Assignment Agreement as amended hereby. 
 Section 5. Miscellaneous. 
 5.01
Governing Law. This Amendment shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York without giving effect to its conflict of laws provisions. 
 5.02 Severability. If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall
nevertheless be given full force and effect. 
 5.03 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be an original, but all of which together shall constitute one and the same instrument. 
 5.04
Headings. Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose. 
 5.05 Amendments. No provision of this Amendment may be amended, modified, supplemented or waived except in accordance with
Section 8.10(a) of the Assignment Agreement. 
  

 2 

 5.06 Binding Effect; Assignment. This Amendment shall be binding upon and inure to
the benefit of each party hereto and their respective successors and permitted assigns, subject to the provisions of Section 8.05 of the Assignment Agreement. 
 [Signature page follows] 
  

 3 

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

											
	 ASSIGNOR:
	 		 	VITA SPECIAL PURPOSE CORP.
					
		 		 		 	 By:
	 	 /s/ Joseph M. Paiva

		 		 		 		 	 Name:
	 	 JOSEPH M. PAIVA

		 		 		 		 	 Title:
	 	 VICE PRESIDENT

			
	 ORTHOVITA:
	 		 	ORTHOVITA, INC.
					
		 		 		 	 By:
	 	 /s/ Antony Koblish

		 		 		 		 	 Name:
	 	 ANTONY KOBLISH

		 		 		 		 	 Title:
	 	 PRESIDENT & CEO

			
	 ASSIGNEE:
	 		 	PAUL ROYALTY FUND, L.P.
					
		 		 		 	 By:
	 	 Paul Capital Management, LLC,
 its General
Partner

						
		 		 		 		 	 By:
	 	 /s/ Walter Flamenbaum, M.D.

		 		 		 		 		 	 Name: Walter Flamenbaum, M.D.

		 		 		 		 		 	 Title:    Managing Member

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