Document:

Exhibit 101

		

			Exhibit 10.1

		

		
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			AMENDMENT NO. 2
		

		
			TO
		

		
			PRIVATE SHELF AGREEMENT 
		

		
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			Dated as of June 25,  2021
		

		
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			Metropolitan Life Insurance Company and
		

		
			MetLife Investment Management, LLC (formerly 
		

		
			known as MetLife Investment Advisors, LLC)
		

		
			and  each other MetLife Party which becomes
bound by the Agreement (defined below) 
		

		
			c/o MetLife Investment Management, LLC
		

		
			One MetLife Way
		

		
			Whippany, New Jersey 07981
		

		
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			MetLife Investment Management Limited
		

		
			c/o MetLife Investment Management, LLC
		

		
			One MetLife Way
		

		
			Whippany, NJ  07981
		

		
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			Ladies and Gentlemen:
		

		
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			We refer to the Private Shelf Agreement, dated as of September 22, 2016 (as heretofore and as further amended, restated, supplemented or otherwise modified from time to time, the “Agreement”), by and among Graybar Electric Company, Inc., a New York corporation (the “Company”), Metropolitan Life Insurance Company (“MLIC”), MetLife Investment Management, LLC (“MIM LLC”) (formerly known as MetLife Investment Advisors, LLC),  and each MetLife Party which becomes party to the Agreement (each, a “Purchaser” and collectively, the “Purchasers”).  Unless otherwise defined herein, the terms defined in the Agreement shall be used herein as therein defined.
		

		
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			The Company, MLIC, MIM LLC and the Purchasers desire to amend the Agreement to modify certain provisions of the Agreement as set forth below, including adding MetLife Investment Management Limited as a party to the Agreement as set forth below and removing MLIC as a party to the Agreement as set forth below. 
		

		
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			It is hereby agreed by you and us as follows:
		

		

		

		 

		

			 

		

 

		

			Graybar Electric Company, Inc.

		

		

			Amendment No. 2

		

		

			 

		

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			i.Amendments to Agreement.
		

		
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			Subject to the conditions herein (including, without limitation, Section II(b)), effective on the date hereof (the “Effective Date”), the Agreement is hereby amended by this letter amendment (this “Amendment”) as follows:
		

		
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			(a)MetLife Investment Management, LLC. All references to “MetLife Investment Advisors, LLC” in the Agreement shall be replaced with references to “MetLife Investment Management, LLC”.
		

		
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			(b)MetLife Investment Management Limited. All references to “Metropolitan Life Insurance Company” in the Agreement shall be replaced with references to “MetLife Investment Management Limited”.
		

		
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			(c)MetLife. The definition of and all references to “MetLife” in the Agreement shall now refer to MetLife Investment Management, LLC and MetLife Investment Management Limited, collectively (and for the avoidance of doubt, such definition and related references shall no longer include Metropolitan Life Insurance Company).
		

		
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			(d)Facility Amount.  The cover page of the Agreement, the first page of the Agreement and Section 1 of the Agreement are hereby amended by replacing the number “$100,000,000” with the number “$150,000,000”.
		

		
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			(e)Section 2(b). Section 2(b) of the Agreement is hereby amended by replacing the phrase “the third anniversary of the date of this Agreement” with “the third anniversary of the Second Amendment Effective Date”.
		

		
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			(f)Section 17.1(b).    Section 17.1(b) of the Agreement is hereby deleted and replaced in its entirety as follows:
		

		
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			(b)(i) with the written consent of MetLife (and without the consent of any other holder of Notes), the provisions of the first sentence of Section 1 and the provisions of Section 2 may be amended or waived (except insofar as any such amendment or waiver would affect any rights or obligations with respect to the purchase and sale of Notes which shall have become Accepted Notes prior to such amendment or waiver), and (ii) prior to the purchase and sale of a Series of Accepted Notes, with the written consent of all of the Purchasers which shall have become obligated to purchase Accepted Notes of any such Series (and not without the written consent of all such Purchasers), any of the provisions of Sections 2 and 4 may be amended or waived insofar as such amendment or waiver would affect only rights or obligations with respect to the purchase and sale of the Accepted Notes of such Series or the terms and provisions of such Accepted Notes;
		

		
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			(g)Schedule A New Defined Terms.    The following definitions are inserted to Schedule A in their correct alphabetical order to read as follows: 
		

		

		

		 

		

			 

		

		

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			Graybar Electric Company, Inc.

		

		

			Amendment No. 2

		

		

			 

		

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			“Second Amendment” shall mean Amendment No. 2 to the Agreement, which amendment is dated June 25, 2021.
		

		
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			“Second Amendment Effective Date” shall mean the Effective Date of the Second Amendment (as defined the Second Amendment).”
		

		
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			II.Joinder & RELEASE.  
		

		
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			(a)At the Second Amendment Effective Date, MetLife Investment Management Limited agrees to join the Agreement as “MetLife” for all purposes of the Agreement (the “Joinder”) and to be bound by all provisions applicable to MetLife.  Without limiting the foregoing, MetLife Investment Management Limited hereby,  jointly and severally, with the other MetLife Parties under the Agreement, accepts and agrees to perform and observe all of the covenants set forth therein.    The Company and other parties to the Agreement acknowledge and agree to such Joinder.  
		

		
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			(b)At the Second Amendment Effective Date, Metropolitan Life Insurance Company shall be released from all obligations under the Agreement (the “Release”) and shall no longer be a party thereto. The Company and other parties to the Agreement acknowledge and agree to such Release. 
		

		
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			III.CONDITIONS TO EFFECTIVENESS OF AMENDMENTS, Joinder and Release.  
		

		
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			(a)Representations and Warranties.  The Company represents and warrants that (i) the execution and delivery of this Amendment has been duly authorized by all necessary corporate action of the Company and this Amendment has been executed and delivered by a duly authorized officer of the Company, and all necessary or required consents to this Amendment (other than any consents required to be obtained solely by a Purchaser) have been obtained and are in full force and effect, (ii) the Agreement, as amended by this Amendment, constitutes the legal, valid and binding obligation contract and agreement of the Company enforceable against it in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally, and general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law), (iii) each representation and warranty set forth in Section 5 of the Agreement (as modified by the updated Schedules attached hereto), is true and correct as of the date of execution and delivery of this Amendment by the Company with the same effect as if made on such date (except to the extent such representations and warranties expressly refer to an earlier date, in which case they were true and correct as of such earlier date) and (iv) no Event of Default or Default under the Agreement exists or has occurred and is continuing on the date hereof. 
		

		
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			(b)Effectiveness.  This Amendment shall become effective upon fulfillment of the following conditions: (i) the Company and MetLife shall have executed a copy of this 
		

		 

		

			 

		

		

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			Graybar Electric Company, Inc.

		

		

			Amendment No. 2

		

		

			 

		

		Amendment on or prior to the Second Amendment Effective Date, (ii) MetLife shall have received a copy of the resolutions of the board of the Company authorizing the execution, delivery and performance by the Company of this Amendment, certified by its secretary or assistant secretary, and (iii) MetLife shall have received such other documents and certificates as it may reasonably request relating to the Amendment and the transactions contemplated by the Amendment.  
		

		
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			IV.MISCELLANEOUS.
		

		
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			(a)Reference to and Effect on Agreement.  Upon the effectiveness of this Amendment, each reference to the Agreement in any other document, instrument or agreement shall mean and be a reference to the Agreement as modified by this Amendment.  Except as specifically set forth in Section I and Section II hereof, the Agreement shall remain in full force and effect and is hereby ratified and confirmed in all respects.  The execution, delivery and effectiveness of this Amendment shall not be construed as a course of dealing or other implication that any holder of the Notes has agreed to or is prepared to grant any consents or agree to any waiver to the Agreement in the future, whether or not under similar circumstances.
		

		
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			(b)Expenses.   The Company hereby confirms its obligations under the Agreement, whether or not the transactions hereby contemplated are consummated, to pay, promptly after request by MetLife, all reasonable out-of-pocket costs and expenses, including attorneys' fees and expenses, incurred by them in connection with this Amendment and the transactions contemplated hereby, in enforcing any rights under this Amendment, or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this Amendment or the transactions contemplated hereby.  
		

		
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			(c)Governing Law.    THIS AMENDMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF THE STATE OF NEW YORK (EXCLUDING ANY CONFLICTS OF LAW RULES WHICH WOULD OTHERWISE CAUSE THIS AMENDMENT TO BE CONSTRUED OR ENFORCED IN ACCORDANCE WITH, OR THE RIGHTS OF THE PARTIES TO BE GOVERNED BY, THE LAWS OF ANY OTHER JURISDICTION).
		

		
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			(d)Counterparts; Section Titles.  This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which when taken together shall constitute but one and the same instrument.  Delivery of an executed counterpart of a signature page to this Amendment by facsimile or electronic transmission shall be effective as delivery of a manually executed counterpart of this Amendment.  The section titles contained in this Amendment are and shall be without substance, meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto.
		

		
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			Graybar Electric Company, Inc.

		

		

			Amendment No. 2

		

		

			 

		

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			[SIGNATURE PAGE TO FOLLOW]
		

		
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			Graybar Electric Company, Inc.

		

		

			Amendment No. 2

		

		

			 

		

		If you agree to the terms and provisions hereof, please evidence your agreement by executing and returning at least one counterpart of this Amendment No. 2 to the other parties hereto.
		

		
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			Very truly yours,
		

		
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			GRAYBAR ELECTRIC COMPANY, INC.
		

			
					
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						By:

					
					
						/s/ T. E. Carpenter

				
	
					
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						Name:

					
					
						Timothy E. Carpenter

				
	
					
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						Title:

					
					
						Vice President - Treasurer

				

		
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			Graybar Electric Company, Inc.

		

		

			Amendment No. 2

		

		

			 

		

		
		

		
			Agreed as of the date first above written:
		

		
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			Metropolitan Life Insurance Company
		

		
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						By:

					
					
						/s/ Jennifer Potenta

				
	
					
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						Name:

					
					
						Jennifer Potenta

				
	
					
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						Title:

					
					
						Authorized Signatory

				

		
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			MetLife Investment Management, LLC
		

		
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						By:

					
					
						/s/ Jennifer Potenta

				
	
					
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						Name:

					
					
						Jennifer Potenta

				
	
					
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						Title:

					
					
						Authorized Signatory

				

		
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			MetLife Investment Management Limited
		

		
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						By:

					
					
						/s/ A. Bannister

				
	
					
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						Name:

					
					
						Annette Bannister

				
	
					
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						Title:

					
					
						Authorized Signatory

				

		
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			Graybar Electric Company, Inc.

		

		

			Amendment No. 2

		

		

			 

		

		
		

		
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			Disclosure Materials
		

		
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						Filing

					
					
						 

					
					
						Filed/Effective

					
					
						File/Film Number

				
	
					
						8-K

					
					
						 

					
					
						6/10/2021

					
					
						000-00255
211007449

				
	
					
						DEFA14C

					
					
						 

					
					
						4/30/2021

					
					
						000-00255
21875243

				
	
					
						DEF 14C

					
					
						 

					
					
						4/30/2021

					
					
						000-00255
21875226

				
	
					
						10-Q

					
					
						 

					
					
						4/26/2021

					
					
						000-00255
21853587

				
	
					
						8-K

					
					
						 

					
					
						3/24/2021

					
					
						000-00255
21768189

				
	
					
						10-K

					
					
						 

					
					
						3/19/2021

					
					
						000-00255
21758011

				
	
					
						10-K

					
					
						 

					
					
						3/10/2021

					
					
						000-00255
21729700

				
	
					
						SC 13G/A

					
					
						 

					
					
						2/12/2021

					
					
						000-00255
21627946

				
	
					
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			All of the above filings by the Company or the Voting Trust with the United States Securities and Exchange Commission are incorporated herein by this reference.
		

		
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		Subsidiaries of the Company and
		

		
			Ownership of Subsidiary Stock
		

		
			(i) Subsidiaries of the Company
		

		
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						Entity Name

					
					
						Jurisdiction of Incorporation, Formation or Organization

					
					
						Percentage of Shares Held or Beneficially Owned (Domestic Subsidiaries Only)

				
	
					
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						Graybar Management Services, LLC

					
					
						Delaware

					
					
						100%

				
	
					
						GRIPP, LLC

					
					
						Missouri

					
					
						100%

				
	
					
						Gnewco, LLC

					
					
						Delaware

					
					
						100%

				
	
					
						GBE Sub, LLC

					
					
						Missouri

					
					
						100%

				
	
					
						GBE2, LLC

					
					
						Delaware

					
					
						100%

				
	
					
						Shingle & Gibb Automation, LLC

					
					
						Delaware

					
					
						100%

				
	
					
						Cape Electrical Supply Holding LLC

					
					
						Delaware

					
					
						100%

				
	
					
						Cape Electrical Supply LLC

					
					
						Delaware

					
					
						100%

				
	
					
						Michigan Utility Supply, LLC

					
					
						Michigan

					
					
						100%

				
	
					
						Advantage Industrial Automation, Inc.

					
					
						Georgia

					
					
						100%

				
	
					
						Graybar Business Services, Inc.

					
					
						Missouri

					
					
						100%

				
	
					
						Distribution Associates Incorporated

					
					
						Missouri

					
					
						100%

				
	
					
						Graybar Electric Limited

					
					
						Nova Scotia

					
					
						 

				
	
					
						Graybar Electric Canada Limited

					
					
						Nova Scotia

					
					
						 

				
	
					
						Graybar Canada Limited

					
					
						Nova Scotia

					
					
						 

				
	
					
						Graybar Energy Limited

					
					
						Ontario

					
					
						 

				
	
					
						Graybar Financial Services, Inc.

					
					
						Missouri

					
					
						100%

				
	
					
						Graybar Aus. Pty Ltd.

					
						Graybar de México S. de RL de CV

					
					
						Australia (Victoria)

					
						Mexico

					
					
						 

				
	
					
						Graybar International, Inc.

					
					
						Missouri

					
					
						100%

				
	
					
						Graybar Newfoundland Limited

					
					
						Newfoundland & Labrador

					
					
						*

				

		
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			Schedule 5.4

		

		

			(to Private Shelf Agreement)

		

 

		

			 

		

		(ii)Affiliates of the Company
		

		
			The Affiliates of the Company are as follows:
		

		
			(1)Graybar Voting Trust. The Graybar Voting Trust, pursuant to the Voting Trust Agreement dated as of March 3, 2017, holds approximately 83% of the outstanding shares of the Company at March 31, 2021.
		

		
			(2)Graybar Newfoundland Limited is the 49% general partner in Innunuk Traders Limited Partnership.
		

		
			(iii)Directors and Executive Officers of the Company
		

		
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						K. M. Mazzarella

					
					
						Chairman, President and Chief Executive Officer and Director

				
	
					
						D. A. Bender

					
					
						Vice President – Business Performance and Director

				
	
					
						S. S. Clifford

					
					
						Senior Vice President and Chief Financial Officer and Director

				
	
					
						D. E. DeSousa

					
					
						Senior Vice President and General Manager and Director

				
	
					
						M. W. Geekie

					
					
						Senior Vice President, Secretary and General Counsel and Director

				
	
					
						R. H. Harvey

					
					
						District Vice President, New York and Director

				
	
					
						W. P. Mansfield

					
					
						Senior Vice President – Marketing and Director

				
	
					
						D. G. Maxwell

					
					
						Senior Vice President – Sales, and Director

				
	
					
						B. L. Propst

					
					
						Senior Vice President – Human Resources and Director

				
	
					
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		Financial Statements
		

		
			See unaudited Company financial statements for and as of the period ended March 31, 2021 as filed by the Company with the Securities and Exchange Commission in its Form 10-Q filed on April 26, 2021.
		

		
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			Schedule 5.5

		

		

			(to Private Shelf Agreement)

		

 

		

			 

		

		Most Recent Closed Tax Year
		

		
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			December 31, 2016
		

		
			 
		

		

		

		 

		

			Schedule 5.9

		

		

			(to Private Shelf Agreement)

		

 

		

			 

		

		Existing Indebtedness
		

		
			Indebtedness Existing on March 31, 2021
		

		
			(Stated in thousands)
		

		
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						Debt Source

					
					
						Obligor

					
					
						Balance Outstanding as of March 31, 2021

				
	
					
						Long Term Debt:

					
					
						 

					
					
						 

				
	
					
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						Graybar Electric Company, Inc., Cape Electrical Supply LLC, & Cape Electrical Supply Holdings, LLC

					
					
						 

				
	
					
						Total Long Term Debt:

					
					
						 

					
					
						$7,500

				
	
					
						Undrawn letters of credit issued by Bank of America and Commerce Bank 

					
					
						 

					
					
						$6,286

				

		
			(1)There are various inter-company notes that are eliminated in consolidation.
		

		
			(2)Graybar Canada Limited overdraft line
		

		
			(3)Indebtedness under the Third Amendment to Credit Agreement, dated August 10, 2018, by and among, the Company, Graybar Canada Limited and the lenders from time to time party thereto, Bank of America, N.A. as Domestic Administrative Agent, Domestic Swing Line Lender and Domestic L/C Issuer, and Bank of America, N.A., acting through its Canada Branch, as Canadian Administrative Agent, Canadian Swing Line Lender and Canadian L/C Issuer.
		

		
			(4)Notes issuable under the Senior Notes (none outstanding at Third Amendment Effective Date)
		

		
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			Schedule 5.15

		

		

			(to Private Shelf Agreement)

		

 

		

			Graybar Electric Company, Inc.

		

		

			Amendment No. 2

		

		

			

		

		

			

		

		

			 

		

		Existing Investments
		

		
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			Graybar Management Services, LLC
		

		
			GBE Sub, LLC
		

		
			GBE2, LLC
		

		
			Advantage Industrial Automation, Inc.
		

		
			Graybar Electric Limited
		

		
			Graybar International, Inc.
		

		
			Graybar Services, Inc.
		

		
			Distribution Associates, Inc.
		

		
			Graybar Financial Services, Inc.
		

		
			Graybar Business Services, Inc.
		

		
			In addition to the subsidiaries listed above, the Company (and its subsidiaries) have outstanding investments in the subsidiaries and affiliates set forth in Schedule 5.4, which are incorporated by reference.
		

		
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			Schedule 10.6

		

		

			(to Private Shelf Agreement)Exhibit 102

		

			Exhibit 10.2

		

		
			G. I. 16.3
		

		
			July 7,  2021
(Effective January 1, 2021)
		

		
			 
		

		
			MANAGEMENT INCENTIVE PLAN
		

		
			1.GENERAL
		

		
			1.1The purpose of the Management Incentive Plan (MIP) is to focus management attention on the planning and execution of activities that are critical to Graybar's success and to reward individuals and units that contribute to improved Corporate performance.
		

		
			1.2The manner in which MIP is determined and distributed to participants is set forth in this Instruction.
		

		
			1.3This plan shall be referred to as the Management Incentive Plan or MIP; however, since it covers Corporate, district and branch participants, it may be helpful to refer to the Corporate, district or branch incentive portion of the plan when discussing specific units or report measurements.
		

		
			2.PARTICIPATION IN THE PLAN
		

		
			2.1Employees who are in positions that have MIP Guideline Incentives (as defined in the Company compensation structure) are eligible to participate in the plan and to receive an annual Incentive Award payment, with the following exceptions and limitations:
		

		
			2.1.1To qualify for an Incentive Award for any calendar year, the employee must remain in the service of the Company through December 31 of that calendar year. If an employee terminates before December 31, that employee will forfeit his/her MIP payment for that year. Payment of the employee's salary through the last day of employment with the Company fully discharges the Company's obligation with respect to compensation. Exceptions will be made in the event of death or Retirement (as defined in the amended Restated Certificate of Incorporation of the Company).
		

		
			2.1.2An employee on an unpaid leave of absence will cease to be a participant during the leave.  An employee who returns from the leave to an eligible position outlined in paragraph 2.1 above will continue participation upon their return.  Applicable legal regulations and requirements will be followed.   
		

		
			2.1.3An employee who ceases to be a participant because of demotion or leaves of absence during the calendar year will have no claim to an Incentive Award, except for the period of active participation during the incentive year, or as granted in accordance with paragraph 2.1.2 above.  
		

		

		

		 

 

		

			 

		

		2.1.4Participants in MIP are eligible to earn an Incentive Award beginning with the first day of assignment.
		

		
			2.1.4.1Employees who participate in MIP and whose job/position assignment changes will continue participation in their former position through the last day of assignment and begin MIP participation in the new position on the first day of reassignment.
		

		
			2.1.5In cases of death or Retirement, MIP will be based on eligible compensation earned prior to the effective date of the applicable event.
		

		
			3.DETERMINATION OF INCENTIVE AWARDS
		

		
			3.1Each member's Guideline Incentive will be expressed in dollars computed by multiplying the member's guideline percentage (indicated in the Company compensation structure) by the member's eligible annual base salary earnings for the incentive year. MIP employees receiving overtime will have MIP based on eligible base pay and overtime earnings. Actual incentives paid may vary from Guideline Incentive amounts based on the performance of the branch, district, or corporation.
		

		
			3.2Incentive Awards described in Section 5 will be based on individual guideline incentives and the performance of the employee's organizational unit. For branch participants, the organizational unit will be the branch including its sub-branch(es) or branch group. Branch, district and Corporate participants will be compensated under the Management Incentive Plan as outlined in the following paragraphs.
		

		
			3.3Participants having responsibility in more than one district or branch will have their Guideline Incentive allocated to districts or branches based on either budgeted sales or as directed by the District Vice President or appropriate Senior Vice President. (See paragraph 5.5.)  
		

		
			3.4Upon the recommendation of the District Vice President and approval by the Senior Vice President and General Manager and the President, certain expenses related to specific customer market expansion may be adjusted from a location's actual net profit when making incentive award calculations. 
		

		
			3.4.1Such expenses shall be submitted in writing by the District Vice President to the Senior Vice President and General Manager along with the market expansion plan for the applicable location. 
		

		
			3.4.2No expenditure to be considered for adjustment shall be made by the district until the plan has been approved by the Senior Vice President and General Manager  and the President.
		

		
			3.4.3Expenses eligible for adjustment shall be limited to the current year. Expenses associated with multi-year initiatives are reviewed and approved annually by the Senior Vice President and General Manager for the current year.
		

		

		

		 

 

		

			 

		

		3.4.4The Manager Accounting & Financial Analysis shall keep complete details of eligible expenses and submit them to the Controller with a copy to the Senior Vice President and General Manager as part of the year-end closing work. The Company reserves the right to reject any or all expenses submitted by the district, if it is determined by the Senior Vice President and General Manager that the district has failed to adequately implement the approved market expansion plan(s).
		

		
			3.4.5The amount of the MIP adjustment shall be limited to the total amount approved. 
		

		
			3.4.6After review by the Controller, details outlining the adjustment shall be forwarded to the Employee Resources Center for adjustment to the applicable location's actual net profit for MIP calculation purposes. Approved adjustments may be included in branch, district and Corporate MIP calculations.
		

		
			3.5Upon the recommendation of the District Vice President and approval by the Senior Vice President and General Manager and the President, net profits for Districts opening a new branch(es) may be adjusted to exclude the net profits of the new branch house(s) if they have an adverse effect on MIP awards.
		

		
			4.FINAL PERFORMANCE INDEX FOR NET PROFIT, GROSS MARGIN, AND SALES PERFORMANCE
		

		
			4.1For all participants, the Final Performance Index shall be calculated as determined from time to time by the Board of Directors (see G. I. 16.3 Supplement 1), provided that such calculations are communicated in accordance with Section 8 when applicable.
		

		
			5.DETERMINATION OF INDIVIDUAL INCENTIVE AWARDS
		

		
			5.1Corporate  
		

		
			5.1.1Awards to Corporate participants will be based on their Guideline Incentive (eligible salary multiplied by the applicable guideline percentage) multiplied by the Corporate Final Performance Index. The Corporate Final Performance Index shall be based on the consolidated financial performance of the Company including Graybar Corporate, districts, zones and all subsidiaries as determined from time to time in accordance with guidelines adopted by the Board.
		

		
			5.2District
		

		
			5.2.1Awards to district participants will be based on their Guideline Incentive (eligible salary multiplied by guideline percentage) multiplied by the Final Performance Index for their respective district(s).
		

		
			5.3Branch
		

		
			5.3.1Awards to branch participants will be based on their Guideline Incentive (eligible salary multiplied by guideline percentage) multiplied by the Branch Final Performance Index for their respective branch(es). MIP 
		

		 

 

		

			 

		

		eligible earnings include overtime for MIP participants who receive overtime.
		

		
			5.4Participants who transfer between branches or districts will be paid the greater of the actual MIP earned or the MIP that would have been earned had they remained in the old unit for the entire year.
		

		
			5.5In exceptional circumstances a participant may receive a guaranteed MIP for the year, upon recommendation to and pre-approval by the Senior Vice President HR.  Such participant will receive the greater of their MIP guarantee or their incentive earned under the terms of the plan.  In all cases, participants must meet eligibility requirements of the MIP for payment.
		

		
			5.6A district or branch participant who has responsibility in more than one district or branch will have his/her Guideline Incentive allocated to the district or branch on the basis of either budgeted sales or as directed by the District Vice President or Senior Vice President and General Manager. (See paragraph 3.3.)
		

		
			5.7No participant will receive an award in excess of the maximum of applicable total points multiplied by his/her Guideline Incentive.
		

		
			5.8Awards for each year, subject to the provisions of this Plan, will be paid no later than March 15 of the following year.
		

		
			5.9A District Vice President and the Senior Vice President and General Manager or appropriate Senior Vice President will approve all individual awards. The President will also approve all awards and may make any adjustments deemed appropriate.
		

		
			6.PRESIDENT'S DISCRETIONARY FUNDS
		

		
			6.1The President will have an MIP Discretionary Fund equivalent to a set percentage of the total Guideline Incentives for all participants.
		

		
			6.2The President shall annually request of the Senior Vice President and General Manager and the Senior Vice Presidents recommendations for discretionary payments to any MIP participant or group of MIP participants.
		

		
			6.3The Senior Vice President and General Manager or appropriate Senior Vice President may recommend discretionary payments to any participant or group of participants. Such awards shall not cause any individual to exceed the maximum of applicable total points multiplied by his/her Guideline Incentive.
		

		
			6.4The Senior Vice President and General Manager may recommend that a discretionary award, subject to limitations, be awarded to a Branch to cover unusual situations or exceptional performance.
		

		
			6.5It is not required that any or all Discretionary Funds be awarded. The total amount disbursed by the President will be reported to the Board of Directors.
		

		
			7.MODIFICATION OF THE PLAN  
		

		

		

		 

 

		

			 

		

		7.1The Company reserves the right to withdraw from this Plan, at any time, any line of merchandise that it sees fit for any reason. In case of the withdrawal of any line as provided for above, sales and profits will be adjusted to eliminate the line or lines of merchandise withdrawn and the adjusted sales and profits as approved by the Controller will be the sales and profits on which compensation will be based.
		

		
			7.2The Company reserves the right to establish different incentive targets for districts and branches that budget to produce negative or marginal net profit. Such special arrangements will be recommended by the Compensation Committee for approval by the President. Affected personnel will be notified in writing of the revised plan by January 31 of the incentive year.
		

		
			7.3The awards as computed under this Plan will be reviewed by the appropriate District Vice President, Senior Vice President and General Manager and Senior Vice Presidents, who may recommend adjustments to the President. The President is authorized to make any adjustments necessary to correct distortions in unit or individual awards.
		

		
			7.4Notwithstanding any of the provisions of this Plan, the Company reserves the right to withdraw or to modify in whole or in part this Management Incentive Plan at any time. Notice of such modification or withdrawal would be given in writing to the employees covered by the Plan.
		

		
			8.COMMUNICATION OF THE PLAN
		

		
			8.1District Vice Presidents will communicate this Plan to all employees who come under its provisions. As soon as the Plan has been read to or by an employee, the employee will sign a statement acknowledging that he/she fully understands the Management Incentive Plan and agrees to its provisions. Such statements will be signed on G. I. 16.3 Attachment A and will be retained in the District Vice President's files for review by Internal Auditors.
		

		
			8.2It is important that all participants fully understand both how their incentive pay is determined and how their performance can affect the performance of the unit. Whether understanding is achieved through group or individual meetings is at the discretion of the District Vice President.
		

		
			9.TERM OF PLAN
		

		
			9.1This Plan supersedes and replaces all Management Incentive Plans previously issued. It will remain effective for each succeeding year until terminated. The procedure outlined in Section 8 above will be followed with the issuance of this Instruction and whenever a new member comes under its provisions.
		

		
			9.2Questions regarding interpretation or application of these instructions should be referred to the Senior Vice President-Human Resources.
		

		
			 
		

		
			 
		

		

		

		 

 

		

			 

		

		K. M. MAZZARELLA
President
		

		
			 
		

		
			Approved by the Board of Directors June 10, 2021
		

		
			 
		

		
			﻿

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