Document:

GXP-03/31/2015-EX10.4

Ex. 10.4

Great Plains Energy Incorporated
Kansas City Power & Light Company
KCP&L Greater Missouri Operations Company

Annual Incentive Plan
Amended effective as of January 1, 2015

Objective

The Great Plains Energy Incorporated (“Great Plains Energy” or the “Company”), Kansas City Power & Light Company (“KCP&L”), and KCP&L Greater Missouri Operations Company (“GMO”) Annual Incentive Plan (the “Plan”) is designed to motivate and reward officers for the achievement of specific key financial and business goals and to also reward individual performance.  By providing market-competitive target awards, the Plan supports the attraction and retention of senior executive talent critical to achieving Great Plains Energy’s strategic business objectives.

Eligible participants shall be those officers of Great Plains Energy, KCP&L and/or GMO (“participants”), as approved by the Compensation and Development Committee (“Committee”) of the Board of Directors.

Awards

Awards are recommended by the Committee and approved by the independent members of the Board of Directors, and set as a percentage of the participant’s base salary.  Percentages will vary based on level of responsibility, market data and internal comparisons.

Plan Year and Incentive Objectives

The fiscal year (“Plan Year”) of the Plan will be the fiscal year beginning on January 1 and ending on December 31.  Within the first 90 days of the Plan Year, the Committee will recommend for approval by the independent members of the Board of Directors specific annual objectives and performance levels that are applicable to each participant.  The amount of an individual participant’s award will be determined based on performance against the specific objectives and performance levels approved by the independent members of the Board of Directors.  Objectives and performance levels for each Plan Year will be fixed for the Plan Year and will be changed only upon the approval of the independent members of the Board of Directors.  Each participant will be provided a copy of the applicable objectives and performance levels within the first 90 days of the year, which will also be attached as an appendix to this document.  

Payment of Awards

Earned awards will be payable to each participant after the completion of the Plan Year, following the determination by the Committee of the achievement level for each of the relevant objectives and the date payment will be made.  The awards will be paid, in the sole discretion of the Committee, in cash, Company stock (in the form of “Bonus Shares” under the Company’s Long-Term Incentive Plan, as may be amended or restated), or a combination of cash and stock, except to the extent receipt of payment is properly deferred under the Nonqualified Deferred Compensation Plan (the “NQDC Plan”). (Note that any earned award for which a deferral election has been made under the NQDC Plan will result in a cash award being deferred, as Bonus Shares are not eligible to be deferred under such plan.) 

An award for a person who becomes a participant during a Plan Year will be prorated unless otherwise determined by the Committee.  A participant who retires during a Plan Year will receive a prorated award unless otherwise determined by the Committee.  Prorated awards will be payable in the event of death or disability of the participant.  Proration shall be calculated using the number of months elapsed in the year prior to the event, based on the following conventions: If the event occurs between the first and fifteenth day of a month, it shall be deemed to have occurred on the first of the month; and if the event occurs subsequent to the fifteenth day of a month, it shall be deemed to have occurred on the first day of the following month. A participant who terminates employment with the Company prior to the date awards are paid shall forfeit all awards unless otherwise determined by the Committee in its sole discretion.

The Company may deduct from the cash portion of the award all applicable withholding and other taxes applicable to the entire award. Such withheld amount must satisfy, but not exceed, the Company’s minimum tax withholding obligations for federal and state income tax purposes.  No Company common stock will be paid under an award until the participant (or the participant’s successor) has paid to the Company the amount that must be withheld under federal, state and local income and employment tax laws or the participant and the Company have made satisfactory provision for the payment of such taxes.  As an alternative to making a cash payment to satisfy the applicable withholding taxes, the participant or the participant’s successor may elect to have the Company retain that number of shares (valued at their Fair Market Value, as that term is defined in the Company’s Long-Term Incentive Plan, as may be amended or restated) that would satisfy the applicable withholding taxes, subject to the Committee’s continuing authority to require cash payment notwithstanding participant’s election.

To the extent the participant elects to have shares withheld to cover the applicable minimum withholding requirements, and has not already done so, the participant must complete a withholding election on the form provided by the Corporate Secretary of the Company and return it to the designated person set forth on the form no later than the date specified thereon (which shall in no event be more than thirty days from the grant date of the award).  The participant may elect on such form to relinquish the minimum number of whole shares of Company common stock having an aggregate fair market value (as determined for tax purposes) on the applicable vesting or payment date that will fully cover the amount required to satisfy the Company’s minimum tax withholding obligations for federal and state income tax purposes arising on the applicable vesting or payment date.  To the extent no withholding election is made before the date specified, the participant is required to pay the Company the amount of federal, state and local income and employment tax withholdings by cash or check at the time the participant recognizes income with respect to such shares, or must make other arrangements satisfactory to the Company to satisfy the tax withholding obligations after which the Company will release or deliver, as applicable, to the participant the full number of shares.

The Company will, to the full extent permitted by law, have the discretion based on the particular facts and circumstances, to require that each participant reimburse the Company for all or any portion of any awards if and to the extent the awards reflected the achievement of financial results that were subsequently the subject of a restatement, or the achievement of other objectives that were subsequently found to be inaccurately measured, and a lower award would have occurred based upon the restated financial results or inaccurately measured objectives. The Company may, in its discretion, (i) seek repayment from the participants; (ii) reduce the amount that would otherwise be payable to the participants under current or future awards; (iii) withhold future equity grants or salary increases; (iv) pursue other available legal remedies; or (v) any combination of these actions.  The Company may take such actions against any participant, whether or not such participant engaged in any misconduct or was otherwise at fault with respect to such restatement or inaccurate measurement.  The Company will, however, not seek reimbursement with respect to any awards paid more than three years prior to such restatement or the discovery of inaccurate measurements, as applicable.

2

Administration

The Committee has the full power and authority to interpret the provisions of the Plan.  The independent members of the Board of Directors have the exclusive right to terminate, modify, change, or alter the plan at any time.

Adopted by the independent members of 
the Board of Directors on February 10, 2015

By:    /s/ John J. Sherman
John J. Sherman
Chair, Compensation and Development Committee

3

Appendix
	
							
	2015 Annual Incentive Plan Objectives and Performance Levels

	Objectives
	Weighting
	2015 Targets

	Threshold
50%
	Target
100%
	Stretch
150%
	Superior
200%

	Financial Objective
	 
	 
	 
	 
	 

	Manage the Existing Business
	Earnings Per Share
	70%
	$1.46 
	$1.50 
	$1.54 
	$1.60 

	Operational Objectives
	 
	 
	 
	 
	 

	Employees
	Days Away, Restricted or Transferred (DART)
	10%
	1.01
	0.61
	0.48
	0.34

	Improve and Expand Customer Experience
	SAIDI (System-wide Reliability in Minutes)
	10%
	88.63
	85.96
	83.29
	80.63 

	Percent Equivalent Availability - Coal Units
(Winter & Summer Peak Months Only) 
	5%
	83.0%
	85.8%
	87.6%
	89.4%

	Percent Equivalent Availability - Nuclear Unit
	5%
	78.0%
	81.8%
	83.2%
	84.5%

	 
	100%EX-10.1

 Exhibit 10.1 

SIXTEENTH AMENDMENT 
 TO

 EMPLOYMENT AGREEMENT 

This Sixteenth Amendment to Employment Agreement is made and entered into effective as of the 1st day of January, 2015, 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, January 1, 2010, January 1, 2011, January 1, 2012, January 1, 2013 and January 1, 2014;
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 2015; 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 payable by the Company to the Employee for the calendar year 2015. 

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth in this Sixteenth Amendment, and other good and
valuable consideration, the parties to this Sixteenth Amendment agree as follows: 
 1. All capitalized terms in this Sixteenth 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 — 2014 Performance Goals and Performance Based Compensation” with the attached “Exhibit A-1 — 2015 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 Sixteenth 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 

2015 Performance Goals and Performance Based Compensation 
  

	I.	Formula 

  

							
	 	 	 	  	Performance
Based
Compensation Amount	 
	 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 12/31/15 does not exceed $107.00
	  	$	0	  
		 	 (ii) If the closing price of a share of Common Stock on 12/31/15 exceeds $107.00 but does not equal or exceed $123.00, for each
$0.01 increase in per share price of a share of Common Stock above $107.00
	  	$	1,200	  
		 	 (iii) If the closing price of a share of Common Stock on 12/31/15 equals or exceeds $123.00, for each $0.01 increase in per share
price of a share of Common Stock above $107.00
	  	$	1,800	  

  

	II.	Method of Payment 

 The Performance Based Compensation determined for 2015 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 New York Stock Exchange as of the close of trading on December 31, 2015. 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.	Incentive Compensation Plan 

 The performance based award and method of payment specified
above (the “Award”) are being made by the Compensation Committee 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 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, 2015	 		 	 /s/ Paul Manley

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

		 		 	Albert H. Nahmad

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