Document:

Twelfth Amendment to Employment Agreement

 Exhibit 10.1 
 TWELFTH AMENDMENT 
 TO 

EMPLOYMENT AGREEMENT 
 This Twelfth Amendment to Employment Agreement is made and entered into on this 1st day of January, 2011, 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, January 1, 2005, January 1, 2006, January 1, 2007, January 1, 2008, December 10,
2008, January 1, 2009 and January 1, 2010; and  
 WHEREAS, the Compensation Committee of the
Company’s Board of Directors has set the targets for the performance based compensation payable by the Company to the Employee for the year 2011; and 
 WHEREAS, the Company and the Employee now desire to amend the Employment Agreement and Exhibit A-1 to the Employment Agreement to specify the performance based compensation amount payable by the
Company to the Employee for the calendar year 2011. 
 NOW, THEREFORE, in consideration of the mutual promises and
covenants set forth in this Twelfth Amendment, and other good and valuable consideration, the parties to this Twelfth Amendment agree as follows: 
 1. All capitalized terms in this Twelfth 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 — 2010 Performance Goals and Performance Based
Compensation” with the attached “Exhibit A-1 — 2011 Performance Goals and 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 Twelfth 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 
 2011 Performance Goals and Performance Based Compensation 
  

			
	 I.       Formula

		
	A.     Earnings Per Share	  	Performance
Based
Compensation Amount
		
	 For each $0.01 increase
	  	$65,250
	  

B.     Increase in Common Stock Price
	  	
	 (i) If the closing price of a share of Common Stock on 12/31/11 does not exceed $63.08
	  	$0
	 (ii) If the closing price of a share of Common Stock on 12/31/11 exceeds $63.08 but does not equal or exceed $73.00, for each $0.01 increase in per
share price of a share of Common Stock above $63.08
	  	$1,200
	 (iii) If the closing price of a share of Common Stock on 12/31/11 equals or exceeds $73.00, for each $0.01 increase in per share price of a share of
Common Stock above $63.08
	  	$1,800
	  

II.     Method of Payment

	
	 The Performance Based Compensation determined for 2011 under the formula in Section I (the “Performance Based Compensation
Amount”) shall be paid in the form of the Company’s grant of a number of shares of Class B Common Stock of the Company (the “Shares”) equal to the amount determined by dividing (x) two times the Performance Based
Compensation Amount by (y) the closing price for the Class B Common Stock of the Company on the NYSE Amex Exchange as of the close of trading on December 31, 2011. The value of any fractional shares shall be paid in cash. The Compensation
Committee may, in its sole discretion, exercise negative discretion to reduce the Performance Based Compensation Amount by any amount and instead pay the amount by which the Performance Based Compensation Amount has been reduced in cash on a 1 for 1
basis, rather than converting that amount into Shares on a 2 for 1 basis as described above. The restrictions on the Shares shall lapse on the first to occur of (i) October 15, 2022 (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).

	  

III.    2001 Amended and Restated 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 Amended and Restated 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, 2011	 	 /s/ Paul Manley

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

		 	Albert H. NahmadExecutive Bonus Plan

 EXHIBIT 10.3 
 Executive Bonus Plan 
 Page 1 

Executive Bonus Plan 
 (EBP) 
 Amended and Restated 

as of February 10, 2011 

 Executive Bonus Plan 
 Page 2 
  

	1.	PLAN OBJECTIVE 

 The Executive Bonus Plan
(“EBP” or “the Plan”) has been designed to reward and incent the efforts of the executive officers of CB Richard Ellis (“CBRE” or “the Company”) to successfully attain the
Company’s goals by directly tying the Participant’s compensation to Company and individual results. The EBP is also designed to: 
  

	 	(a)	provide competitive compensation opportunities for executive officers; and 

 

	 	(b)	assist in retaining and attracting key employees for CBRE. 

  

	2.	EFFECTIVE DATE AND PLAN YEAR 

 This
amended Plan shall be effective January 1, 2011 and supersedes and replaces, in total, all prior versions of this Plan or any other bonus guarantees. A “Plan Year” starts on January 1 and ends December 31 of the same
year. 
  

	3.	PLAN ADMINISTRATION 

 Human Resources will
administer the Plan, including participation, eligibility criteria and payment of Awards, subject to final review and approval by the Chief Executive Officer and the Board of Directors. The Board of Directors may delegate any of its duties hereunder
in its discretion to its Compensation Committee. 
  

	4.	ELIGIBILITY 

  

	4.1	Eligibility for participation in the EBP and receipt of bonus awards pursuant to the terms and conditions of the Plan (“Awards”) will be limited to the
Chief Executive Officer and other executive officers specifically designated and approved by the Chief Executive Officer and the Board of Directors each year (“Participants”). Unless otherwise specifically approved by the Chief
Executive Officer and the Board of Directors, employees who participate in any other Company bonus plan and employees who are paid on a commission basis or participate in the bonus plan for commissioned salespersons, are not eligible to participate
in the EBP. 

  

	4.2	Participation for a Participant begins the first day of employment or the designated effective date of an employee’s eligibility to participate in the Plan.
Eligibility for the Plan does not guarantee payment of an Award, since payment is dependent upon earning the Award and the other provisions of the Plan, including both individual and Company performance. 

 

	4.3	Participants who are newly hired, transfer to a new position or become eligible to participate during a Plan Year are eligible to earn an Award as follows:

 Executive Bonus Plan 
 Page 3 
  

	 	(a)	Newly-hired Participants will be eligible for a pro-rated award based on the number of full calendar weeks worked in the eligible position from the first date of
employment or the designated effective date during the Plan Year. 

  

	 	(b)	Participants who transfer to a new position that is not currently eligible for the Plan will be eligible for a prorated Award based on the number of full calendar weeks
worked in the eligible position during the Plan Year. 

  

	 	(c)	Participants who transfer or are promoted to another position and remain eligible for another bonus plan, will be eligible to earn a prorated Award for each position
based on the number of full weeks worked in each position during the Plan Year. Eligibility to earn Awards will be based on the number of full weeks an employee worked in each position and the applicable Target Awards and/or ratings for each
position. 

  

	4.4	If the employment status of a Participant changes prior to the Payment Date (defined below), eligibility for an Award will depend on the reason for the status change:

  

	 	(a)	Resignation or voluntary termination for any reason: Eligibility for Awards is forfeited on resignation or voluntary termination for any reason before the
Payment Date. 

  

	 	(b)	Involuntary termination for Cause: Eligibility for Awards is forfeited on resignation or involuntary termination for Cause before the Payment Date. As used
herein, the term “Cause” shall mean: (i) an uncured material breach by Participant of one or more of the material terms and conditions of a Participant’s employment agreement, or (ii) a material violation by
Participant of the Company’s published policies without permission or just cause, or (iii) Participant’s substantial and continuing non-performance under Participant’s employment agreement, or (iv) any act of fraud,
embezzlement or other dishonesty in connection with Participant’s duties and obligations, or (v) any intentional act by Participant that would jeopardize the Company’s license to do business, or (vi) the commission by Participant
of any illegal and/or unethical act in connection with Participant’s business activities that would adversely and materially impact on the character, goodwill and public reputation of the Company. 

 

	 	(c)	Involuntary termination not for Cause: Eligibility for Awards is forfeited on involuntary termination not for Cause before the Payment Date. Participants
classified as a Highly Compensated Employee (“HCE”) and eligible for severance benefits as defined by the Severance Pay Policy are eligible to receive a discretionary, pro-rated target bonus under the provisions of the
Company’s Severance Pay Policy then in effect. 

  

	 	(d)	Retirement: If a Participant retires who meets the Company’s criteria of age 55 or older with at least 15 years of service or 65 years of age with at least
10 years 

 Executive Bonus Plan 
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	 	    	of service and participated in the Plan for at least six months of the Plan Year, eligibility for an Award may be prorated based on the number of full weeks of
participation in the Plan Year. A prorated Award will be paid at the time Awards are paid to all Participants. If participation in the Plan is less than six months during the Plan Year, the employee is not eligible for an Award for that Plan Year.

  

	 	(e)	Death or disability: Eligibility to earn an Award for any Participant who dies or becomes disabled during a Plan Year will be prorated based on the number of
full weeks of participation in the Plan Year. Any Award will be paid at the time other Awards and bonuses are paid to all Participants. A Participant will be considered “disabled” if the Participant is disabled as defined under the
provisions of the Company’s Long-Term Disability Plan then in effect. For a Participant who dies prior to the Payment Date, the Award will be paid to the Participant’s beneficiary as designated in the Participant’s group term life
insurance at the time of death. 

  

	5.	DISCRETIONARY COMPANY THRESHOLDS 

 Awards
may not be paid to any Participant if the Company fails to achieve one or more minimum financial performance targets (the “Discretionary Company Thresholds”) as determined and set by the Company in its sole discretion. The
Discretionary Company Thresholds may be set and/or amended by the Company at its sole discretion at any time during the Plan Year and up to the date of payment of the Awards under the Plan. The Company will communicate the Discretionary Company
Thresholds to Participants from time to time, but no later than the date on which the Awards are paid. 
  

	6.	TIMING OF CALCULATIONS, PAYMENTS 

  

	6.1	Awards are earned by performance during the Plan Year and by remaining employed by the Company through the date Awards are paid. 

 

	6.2	Subject to final approval by the Chief Executive Officer and the Board of Directors, Awards will be paid on or before March 15 following the end of the fiscal year
(“Payment Date”). 

  

	6.3	If a Participant’s employment terminates prior to the Payment Date, the award is forfeited, unless the termination results from Participant’s retirement,
death or disability, or is the result of involuntary termination not for Cause, in which case payment is governed by Section 4.4 above. 

  

	6.4	It is intended that all Awards earned will be paid in cash. However, the Company reserves the right to distribute common stock in the Company or other non-cash forms of
compensation in lieu of cash in the event economic circumstances dictate such action. 

 Executive Bonus Plan 
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	6.5	Federal and state income taxes and other required taxes will be withheld from bonuses under applicable law. 

 

	6.6	To the extent that any Bonus under the Plan is subject to Section 409A of the Internal Revenue Code, the terms and administration of such Bonus shall comply with
the provisions of such Section, applicable IRS guidance and good faith reasonable interpretations thereof, and, to the extent necessary to achieve compliance, shall be modified, replaced, or terminated at the discretion of the Compensation
Committee. 

  

	7.	MAXIMUM ANNUAL BONUSES 

 The maximum Award
to be received by any Participant shall not exceed 200% of the Target Award (as defined below), inclusive of CEO Awards (defined below). 
  

	8.	CEO AWARDS 

 The Company reserves the
right to award to a Participant a supplemental discretionary bonus award in cases of exceptional and exceedingly deserving circumstances, the amount of which shall be determined in the Chief Executive Officer’s sole discretion (subject to the
ratification by the Board of Directors), referred to as a “CEO’s Award.” 
  

	9.	AWARD CALCULATION 

  

	9.1	Employees are eligible for an Award each Plan Year, based on (a) financial measures (“Financial Performance Targets”) for the Company, business
unit or line of business, and (b) individual achievement of important Company or individual objectives in each Participant’s area of responsibility (“Strategic Performance Measures”). 

 

	9.2	Target Awards: 

  

	 	(a)	Each Participant will be assigned a “Target Award” by the Company in its sole discretion (generally based on a Participant’s position and that
position’s potential contribution to the Company) by March 31 of each Plan Year. For new hires or newly eligible Participants (whether by transfer or promotion), the Target Award will be set within ninety (90) days of eligibility for
the Plan. 

  

	 	(b)	Target Awards will be determined based on Financial Performance Targets and Strategic Performance Measures established at or near the beginning of a Plan Year for each
Participant. Awards will be determined as set forth in Section 9.5 below by making an initial determination of the Award based on achievement of Financial Performance Targets and adjusting that amount for each Participant based on performance
against Strategic Performance Measures as determined by the Committee. At the Committee’s direction, Strategic Performance Measures account for 20% to 40% of the Target Award (depending on the executive category). 

 Executive Bonus Plan 
 Page 6 
  

	 	(c)	In the event that a Target Award amount is changed during a Plan Year, the payment of that year’s bonus award will be pro-rated based on the number of full weeks
that each respective Target was in force, unless other written agreements supersede this provision. 

  

	9.3	Financial Performance Targets: 

 Financial Performance Targets are approved by the Board of Directors at or near the beginning of each Plan Year. Until otherwise designated by the Board of Directors, EBITDA is the metric utilized to set
Financial Performance Targets for the Company, regions, business units and lines of business. The Company reserves the right to change the Financial Performance Target metric each year without the necessity of amending the Plan. 

 

	9.4	Strategic Performance Measures: 

  

	 	(a)	Participants must have a minimum of three and a maximum of six measurable Strategic Performance Measures set by the Company in writing by March 31 of each Plan
Year. 

  

	 	(b)	For new hires or newly eligible Participants (whether by transfer or promotion), the Strategic Performance Measures must be set within ninety (90) days of
eligibility for the Plan. 

  

	 	(c)	Non-submission of Strategic Performance Measures to the Board of Directors will make the Participant ineligible for an Award. 

 

	9.5	Calculation of Awards: At the conclusion of the Plan Year, assuming the Discretionary Company Thresholds are satisfied, Awards are calculated as follows.

  

	 	(a)	Adjustment Factor: Actual financial performance is compared to the Financial Performance Targets and an Adjustment Factor is determined as follows:

  

					
	 Achievement
Against Financial
Performance Target
	  	 Adjustment Factor
	  	 Example

	 0 – 70%
	  	0	  	0% Adjustment Factor
	 71% and above
	  	3.3% for every 1% over 70% up to a maximum adjustment factor of 200%	  	 90% of target = 66% Adjustment Factor
 (20% x 3.3)

 The Adjustment Factor is then multiplied by the
dollar amount of the full Target Award. This amount equals the “Preliminary Award.” 

 Executive Bonus Plan 
 Page 7 
  

	 	(b)	Impact of Strategic Performance Measures: The Preliminary Award is adjusted based on performance against Strategic Performance Measures as follows: Performance
against each Strategic Performance Measure will be rated on a scorecard using a scale of 1 through 5, with 1 being “far below expectations” or its equivalent and 5 being “far exceeds expectations” or its equivalent. The scorecard
will also contain space for qualitative comments regarding the Participant’s performance (e.g., describing special circumstances). The information on the scorecard, taken as a whole, is then used to determine the amount of the Strategic
Performance Measure Award, from zero to a maximum of 150% of the amount of the Preliminary Award allocated to Strategic Performance Measures (i.e., 20% to 40%). 

For example: 
 Target Award = $100,000 
 Achievement Against Financial
Performance = 110%, which equals an adjustment factor of 1.33 (10 x 3.33) 
 “Preliminary Award” =
$133,000 ($100,000 x 1.33) 
 Achievement of Strategic Performance Measures = 95% 

Percent of award attributable to Strategic Performance Measures = 20%, or $26,600 ($133,000 x 20%) 

Amount of Strategic Performance Measure Award = $25,270 ($26,600 x 95%) 

Final Award = $131,670 ($133,000 - $26,600 + $25,270) 

 

	 	(c)	The Preliminary Award and final Strategic Performance Measure Award payout recommendation will be made by the Chief Executive Officer and approved by the Board of
Directors. 

  

	 	(d)	Notwithstanding the foregoing, if Discretionary Company Thresholds are not met, no Award will be paid under this Plan. 

 

	10.	SUSPENSION, AMENDMENT OR TERMINATION OF THE PLAN 

 The Company reserves the right at any time prior to payment of the Awards to review, interpret, alter, amend, or terminate (discontinue) – with or without notice – the Plan, including, without
limitation, the calculation and method of and eligibility for Award payments. This Plan does not constitute a contract of employment (express or implied) and cannot be relied upon as such. This Plan does not alter the at will employment relationship
between the Company and the Plan Participants. 
  

	11.	ETHICS 

 The Board of Directors shall have
the right to withhold or decrease a Participant’s Award on account of a Participant’s violation(s) of the Standards of Business Conduct or other Company policies, including, without limitation, the failure to model and
enforce the Company’s high standards of ethical conduct or to demonstrate a commitment to a discrimination, retaliation and harassment-free workplace. Conversely, the Board of Directors may increase incentive compensation
(up to the total maximum Award under this Plan) for a Participant who demonstrates extraordinary achievements in these critical areas for the Company.

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