Document:

AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT, RICK C. WELKER

Exhibit 10.5 
 
[LETTERHEAD OF WOODWORKERS WAREHOUSE, INC.] 
 
February 27, 2003 
 
Mr. Rick C. Welker 
21 East Bay Lane

Plymouth, MA 02360 
 
Dear Mr. Welker: 
 
Reference is made to the Letter Agreement dated June 21, 2002 (the “Letter Agreement”) regarding your employment with
Woodworkers Warehouse, Inc. (the “Company”). This letter amends the Letter Agreement as follows: 
 
1.    The term of your employment with the Company shall be extended until March 1, 2005 (the
“Term”). In the event that the Company terminates your employment prior to the expiration of the Term (other than for Cause, as such term is defined in the Letter Agreement), you shall be entitled to receive the severance
consideration described in the Letter Agreement; provided, however, that in exchange for and as a condition to the Company’s obligation to pay such severance consideration, you hereby agree to execute and deliver a release, in a
form satisfactory to the Company, of all claims you may have against the Company and its affiliates arising out of your employment with the Company or the termination thereof, including but not limited to a release of all claims of discrimination.
The Company agrees to deliver such release to you at or about the time it delivers the notice of termination and you agree to execute and deliver such release to the Company within twenty-one (21) days thereafter. If you fail to execute and deliver
such release as provided for therein, you will not be eligible to receive any further severance consideration from the Company. 
 
2.    Effective as of March 2, 2003, your Base Salary shall be increased to $195,000. 
 
3.    You hereby agree that you will not,
without the prior written consent of the Company and without limitation as to time, divulge, disclose or make accessible to any other person, any Confidential Information except (a) in the course of carrying out your duties as Vice President and
Chief Financial Officer of the Company or (b) when required to do so by a court of law, by any governmental agency having supervisory authority over the business of the Company or by any administrative or legislative body (including a committee
thereof) with apparent jurisdiction to order you to divulge, disclose or make available such information. For purposes of this paragraph 3, “Confidential Information” means all information that is not known or available to the public
concerning the Company or any subsidiary of the Company including but not limited to its products, product development, trade secrets, customers, suppliers, finances, and business plans and strategies. Information known or available generally within
the trade or industry of the Company shall be deemed to be known or available to the public. 

Exhibit 10.5 
 
The foregoing amendments to the Letter Agreement are conditioned upon your delivery to the undersigned of a
fully-executed copy of this letter, evidencing your acceptance of these terms. 
 
Please contact me directly if you have any questions about the terms of this letter. 
 
Sincerely, 
 
/s/ Walter S. Spokowski 
Walter S. Spokowski 
President and Chief Executive Officer

 
Accepted and Agreed to: 
 
/s/ Rick C. Welker 
Rick C. WelkerEMPLOYMENT AGREEMENT BETWEEN WOODWORKERS AND GEORGE D. PELHAM

Exhibit 10.6 
 

 
 
126 Oxford
Street  ̈ Lynn, MA  ̈ USA 01901-1132  ̈ Tel: 781-598-2000  ̈ Fax: 781-598-6393 
 
February 20, 2003 
 
Mr. Drake Pelham 
1103 Deer Run Place 
Valrico, Florida 33595 
 
Dear Drake: 
 
I am pleased to confirm the terms of your employment offer as follows: 
 

	 TITLE:
	    	 Vice President, Merchandising

	
	 REPORTING TO:
	    	 Walt Spokowski, President and CEO

	
	 BASE SALARY:
	    	 $150,000

	
	 BONUS OPPORTUNITY:
	    	 Eligible for the company’s executive bonus program which provides for a maximum payout of 60% of your base salary
upon attainment of company goals. In the first year $50,000 will be guaranteed, one half payable in six months after your start date and the other half payable after twelve months.

	
	 PERFORMANCE REVIEW:
	    	 Reviews are done annually after the close of the fiscal year. Your first review will take place in
2004.

	
	 VACATION:
	    	 You will be eligible for 2 weeks paid vacation in 2003.

	
	 STOCK OPTIONS:
	    	 You will receive options on 100,000 shares of company stock, which will vest in equal amounts over three years. These
options are subject to formal Board approval at its first meeting after you join the company.

	
	 INTERIM LIVING:
	    	 For the first year, the company will pay for two round trip coach airline tickets from Boston to Tampa each calendar
month. The company will provide the tickets unless you are able to secure lower fares. The company will provide temporary housing costs for three months. Meals and other living expenses are not covered. After the company’s review of the cost,
it will pay to transport your automobile from Tampa to Boston.

	
	 BENEFITS:
	    	 You will be eligible for the company Executive Health and Life Insurance Plan at no cost to you. Rick Welker will
provide you the details.

Exhibit 10.6 
 

	 401K:
	  	 The Company currently matches contributions under the plan up to the first 3% of your income, when you become
eligible.

 
Rick Welker, Jack
Bransfield, Bill Kearney and I all are looking forward to your joining our executive team. We all are totally committed to making the company profitable. I am confident with your joining us we will be successful. On a more personal note, Janice and
I are also looking forward to the opportunity to renew our friendship. 
 
If you need additional information, call me. 
 
Sincerely, 
 
/s/  Walter S.
Spokowski 
Walt Spokowski 
President & CEO 
 

	
	 I accept the terms of this offer and agree to
 report for work on March 10, 2003.
  
 /s/    George D. Pelham

	
	 DRAKE PELHAMUNSECURED TERM NOTE PAYABLE TO PORTER-CABLE CORPORATION

Exhibit 10.13 
 
TERM NOTE 
 
January 30, 2003 
 
FOR VALUE RECEIVED, Woodworkers Warehouse, Inc., a corporation organized under the laws of the State of Delaware (the
“Borrower”), promises to pay to the order of Porter-Cable Corporation, a Delaware Corporation, (the “Lender”), the principal sum of Two Million dollars ($2,000,000) (the “Principal Sum”), together with interest thereon
at the rate hereinafter provided, in accordance with the following: 
 
1.    Interest. 
 
Commencing as of the date hereof and continuing until repayment in full of all sums due hereunder, the unpaid Principal sum shall bear interest at The rate of five percent (5%) per as 
 
2.    Payments and Maturity.

 
The unpaid Principal Sum, together with interest
thereon at the rate provided above, shall be payable as follows: 
 
(a)    Interest on the unpaid principal sum shall be due and payable monthly, commencing February 1, 2003, and on the first day of each month thereafter to maturity; 
 
(b)    The Principal Sum shall be paid in
twelve (12) equal, successive monthly installments of $166,666.67 each commencing on February 1, 2003; and 
 
(c)    Unless sooner paid, the unpaid principal Sum, together with interest accrued and unpaid thereon, shall be due
and payable in full on January 1, 2004. 
 
3.    Application of Payments. 
 
All payments, made on account of this Note shall be applied first to the payment of accrued and unpaid interest then due hereunder, and the remainder; if any, shall be applied to the unpaid Principal sum, with application
first made total principal installments then due hereunder and thereafter to the principal payments due in the inverse order of maturities. All payments on account of this Note shall be paid in lawful money of the United Stales of America in
immediately available funds during regular business hours of the Lender at its office at 4825 Highway 45, North, Jackson, TN 38305 or at such other times and places as the Lender may at any time and from time to time designate in writing to the
Borrower. 
 
4.    Prepayment. 
 
The Borrower may prepay the Principal Sum in whole or in part without premium or penalty. 

 
5.    Default and Remedies. 
 
Should the Borrower fail to pay any installment of interest or principal when due, at the option of the Lender, all amounts payable by the Borrower to the Lender under the terms of this Note shall immediately become due and
payable by the borrower to the Lender upon five (5) days written notice to the Borrower or another person, and the Lender shall have all of the rights, powers, and remedies available under the terms of this Note and all applicable laws. The Borrower
hereby waives presentment protest and demand, notice of protest, notice of demand and of dishonor and non-payment of this Note (except as provided above) and expressly agrees that this Note or any payment hereunder may be extended from time to time
without in any way affecting the liability of the Borrower. 
 
6.    Expenses. 
 
The Borrower promises to pay to the Lender on demand by the Lender all reasonable costs and expenses incurred by the Lender in connection with the collection and enforcement of this Note, including, without limitation, reasonable
attorneys’ fees and expenses and all court costs. 
 
7.    Miscellaneous. 
 
Each right, power; and remedy of the Lender as provided for in this Note, or now or hereafter existing under any applicable law or otherwise shall be cumulative and concurrent and shall be in addition to every other right, power, or
remedy provided for in this Note or now or hereafter existing under any applicable law, and the exercise or beg of the exercise by the Lender of any one or more of such rights, powers, or remedies shall not preclude the simultaneous or later
exercise byte lender of any or all such other rights, powers, or remedies. No failure or delay by the Lender to insist upon the strict performance of any term, condition, covenant, or agreement of this Note to exercise any right, power, or remedy
consequent upon a breach thereof, shall constitute a waiver of any such term, condition, covenant, or agreement or of any such breach, or preclude the Lender from exercising any such right, power, or remedy at a later time or times. By accepting
payment after the due date of any amount payable under the terms of this Note, the Lender shall not be deemed to waive the right either to require prompt payment when due of all other amounts payable under the terms of this Note or to declare an
Event of Default for the failure to effect such prompt payment of any such other amount. No course of dealing or conduct shall be effective to amend, modify, waive, release, or change any provisions of this Note. 
 
8.    Partial Invalidity.

 
In the event any provision of this Note (or any
part of any provision) is held by a court of competent jurisdiction to be invalid, illegal, or unenforceable in any respect such invalidity, illegality, or unenforceablilty shall not affect any other provision (or remaining part of the affected
provision) of this Note; but this Note shall be construed as if such invalid, illegal, or unenforceable provision (or part thereof) had not been contained in this Note, but only to the extent it is invalid illegal, or unenforceable. 
 

2 

 
9.    Captions 
 
The captions herein set forth are for convenience only and shall not be deemed to define, limit, or describe the scope or intent of this Note. 
 
10.    Applicable Law. 
 
The Borrower acknowledges and agrees that this Note shall be governed by the laws of the State of Minnesota
even though for the convenience and at the request of the Borrower, this Note may be executed elsewhere. 
 
IN WITNESS WHEREOF, the Borrower has caused this Note to be executed under seal by its duly authorized partners/officers as of the date
first written above. 
 

	 ATTEST:
	 	 Woodworkers Warehouse, Inc.

	
	     /s/    Rick C. Welker
	 	 By:    /s/    Walter S. Spokowski

	 Name: Rick C. Welker
	 	 Name: Walter S. Spokowski

	 Title: Vice President
	 	 Title: President

	
	 ATTEST:
	 	 Porter-Cable Corporation

	
	     /s/    Edward H. Ogle
	 	 By:    /s/    Tom W. DeWitt        
..

	 Name: Edward H. Ogle
	 	 Name: Tom W. DeWitt

	 Title: Director of Credit
	 	 Title: Sr. Vice President – Finance

 

3 

PORTER-CABLE/DELTA 
 
RESCHEDULE        $2,000,000 OVER 12 EQUAL PAYMENTS 
INTEREST AT 5% ON DECLINING BALANCE 
 

	 	  	 PRINCIPAL

	  	 	  	 INTEREST

	  	 	  	 TOTAL

	  	 	  	 REMAINDER

	 FEB 1, 2003
	  	 $
	 166,666.67
	  	 	  	 $
	 0.00
	  	 	  	 $
	 166,666.67
	  	 	  	 $
	 1,833,333.33

	 MARCH 1, 2003
	  	 $
	 166,666.67
	  	 	  	 $
	 7,638.89
	  	 	  	 $
	 174,305.56
	  	 	  	 $
	 1,666.666.66

	 APRIL 1, 2003
	  	 $
	 166,666.67
	  	 	  	 $
	 6,944.44
	  	 	  	 $
	 173,611.11
	  	 	  	 $
	 1,499,999.99

	 MAY 1, 2003
	  	 $
	 166,666.67
	  	 	  	 $
	 6,250.00
	  	 	  	 $
	 172,916.67
	  	 	  	 $
	 1,333,333.32

	 JUNE 1, 2003
	  	 $
	 166,666.67
	  	 	  	 $
	 5,555.56
	  	 	  	 $
	 172,222.23
	  	 	  	 $
	 1,166,666.65

	 JULY 1, 2003
	  	 $
	 166,666.67
	  	 	  	 $
	 4,86.11
	  	 	  	 $
	 171,527.78
	  	 	  	 $
	 999,999.98

	 AUGUST 1, 2003
	  	 $
	 166,666.67
	  	 	  	 $
	 4,166.67
	  	 	  	 $
	 170,833.34
	  	 	  	 $
	 833,333.31

	 SEPTEMBER 1, 2003
	  	 $
	 166,666.67
	  	 	  	 $
	 3,472.22
	  	 	  	 $
	 170,138.89
	  	 	  	 $
	 666,666.84

	 OCTOBER 1, 2003
	  	 $
	 166,666.67
	  	 	  	 $
	 2,777.78
	  	 	  	 $
	 169,444.45
	  	 	  	 $
	 499,999.97

	 NOVEMBER 1, 2003
	  	 $
	 166,666.67
	  	 	  	 $
	 2,083.33
	  	 	  	 $
	 168,750.00
	  	 	  	 $
	 333,333.30

	 DECEMBER 1, 2003
	  	 $
	 166,666.67
	  	 	  	 $
	 1,388.89
	  	 	  	 $
	 168,055.56
	  	 	  	 $
	 166,666.63

	 JANUARY 1, 2004
	  	 $
	 166,666.63
	  	 	  	 $
	 694.44
	  	 	  	 $
	 167,361.07
	  	 	  	 $
	 0.00

	 	  	
	
	  	 	  	
	
	  	 	  	
	
	  	 	  	
	

	 	  	 $
	 2,000,000.00
	  	 	  	 $
	 45,833.33
	  	 	  	 $
	 2,045,833.33
	  	 	  	 	 
	 	  	
	
	  	 	  	
	
	  	 	  	
	
	  	 	  	
	

 

4

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