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pmpg_ex101.htm

EXHIBIT 10.1
  
  
  
  
 	 
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 	 5EX-10.1(w)

 EXHIBIT 10.1(w) 

TWENTY-SECOND AMENDMENT 

TO 
 EMPLOYMENT
AGREEMENT 
 This Twenty-second Amendment to Employment Agreement is made and entered into effective as of the 1st day of January
2021, 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 2020; 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 2021; 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 2021. 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 2021; and 

WHEREAS, the long-term performance-based compensation payable by the Company to the Employee for the calendar year 2021 shall not
exceed $10 million. 
 NOW, THEREFORE, in consideration of the mutual promises and covenants set forth in this
Twenty-second Amendment, and other good and valuable consideration, the parties to this Twenty-second Amendment agree as follows: 
 1. All
capitalized terms in this Twenty-second 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 — 2020 Performance
Goals and Long-term Performance Based Compensation” with the attached “Exhibit A-1 — 2021 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-second 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 

2021 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 30 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 3.5 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 2021 is as follows: 

 

					
	 	  	Amount of Restricted
Stock Award	 
	 A. Earnings Per Share (EPS)
	  			
	 For each $.01 increase if growth is below 5%

For each $.01 increase if growth is at or above 5%
	  	$
 $
	43,500
 65,000
	 
  

	 B. Increase in Common Stock Price
	  			
	 If the closing price of a share of Common Stock on 12/31/21 does not exceed $226.55
	  	$	0	 
	 If the closing price of a share of Common Stock on 12/31/21 exceeds $226.55 but does not equal or exceed $271.86, for
each $0.01 increase in per share price of a share of Common Stock above $226.55
	  	$	1,200	 
	 If the closing price of a share of Common Stock on 12/31/21 equals or exceeds $271.86, for each $0.01 increase in per
share price of a share of Common Stock above $226.55
	  	$	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, 2021. 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, 2028, (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 are being made by the Compensation Committee as performance
awards of restricted stock pursuant to Section 8 of the Company’s 2014 Incentive Compensation Plan or any successor plan (the “Incentive Plan”) and are subject to the limitations contained in Section 5(b)(ii) of the
Incentive Plan. 
  

			
	Effective as of January 1, 2021
	
	COMPENSATION COMMITTEE
		
	By:	 	 /s/ Denise Dickins

		 	Denise Dickins, Chair
	
	ACKNOWLEDGED AND ACCEPTED
		
	By:	 	 /s/ Albert H. Nahmad

		 	Albert H. NahmadDocument

Exhibit 10.7

The following current executive officers have entered into Executive Severance Agreements with the Company in the form filed herewith. The information listed below is inserted into the blanks for the respective executive officer’s Executive Severance Agreement.
																					
			Salary Multiplier Rate		Termination Period		Change of Control
Continuation Period
			(Section 4(a)(4))		(Section 1(n))		(Section 2)
							
	Blake W. Krueger		3		3 years		36 months
	James D. Zwiers		2		2 years		24 monthsDocument

Exhibit 10.8

The following current executive officers have entered into Executive Severance Agreements with the Company in the form filed herewith. The information listed below is inserted into the blanks for the respective executive officer’s Executive Severance Agreement.
																					
			Salary Multiplier Rate		Termination Period		Change of Control
Continuation Period
			(Section 4(a)(4))		(Section 1(n))		(Section 2)
							
	Joelle Grunberg		2		2 years		24 months
	Kyle L. Hanson		2		2 years		24 months
	Brendan L. Hoffman		2		2 years		24 months
	Chris E. Hufnagel		2		2 years		24 months
	Michael Jeppesen		2		2 years		24 months
	Amy M. Klimek		2		2 years		24 months
	Michael D. Stornant		2		2 years		24 monthsDocument

Exhibit 10.28

The following executive officers have a percentage benefit multiplier under the Supplemental Executive Retirement Plan (the “Plan” of 2.4% or 2.0%, as indicated below, in lieu of the 1.6% of final average monthly remuneration benefit multiplier described in the Plan:
						
	2.4%	2.0%
	Blake W. Krueger
	Michael Jeppesen

		Michael D. Stornant

		James D. ZwiersDocument

Exhibit 10.35

FIRST AMENDMENT
TO THE
Wolverine World Wide, Inc.
Deferred Compensation Plan

This is an Amendment made this 29th day of December, 2020, by Wolverine World Wide, Inc. ("Wolverine").

W I T N E S S E T H :

WHEREAS, Wolverine amended and restated the Wolverine World Wide, Inc. Deferred Compensation Plan ("plan") effective as of February 7, 2018; and 

WHEREAS, the plan gives Wolverine the discretion to delay payments not deductible due to Code Section 162(m); and

WHEREAS, the Tax Cuts and Jobs Act of 2017 (“Act”) amended Code Section 162(m) to eliminate the deductibility of certain compensation that could lead to an indefinite delay of plan payments; and

WHEREAS, the Proposed Treasury Regulations published on December 20, 2019, to implement the Act permit the plan to be amended this year to remove any provision allowing for a delay due to non-deductibility under Code Section 162(m);

WHEREAS, Article 9 empowers Wolverine to amend the plan;

NOW, THEREFORE, Wolverine amends the plan, effective immediately, to remove Section 7.10 (Code Section 162(m)).

Except as herein amended, Wolverine ratifies the plan.

IN WITNESS WHEREOF, Wolverine has caused this instrument to be executed by a proper officer the day and year first above written.

			
	WOLVERINE WORLD WIDE, INC.

	By: /s/ David A. Latchana
	Title: Assoc. Gen. Counsel and Asst. Secretary

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