Document:

Exhibit

EXHIBIT 10(c)

AIRCRAFT TIME SHARING AGREEMENT

This AIRCRAFT TIME SHARING AGREEMENT (the “Agreement”) is dated February 14, 2019 (the “Effective Date”) by and between THE SHERWIN-WILLIAMS COMPANY, an Ohio corporation (the “Company”), and JOHN G. MORIKIS, an individual (the “Executive”).
W I T N E S S E T H :
WHEREAS, the Company leases certain aircraft identified in Exhibit A (individually and collectively as the context requires, the “Aircraft”) and operates the Aircraft for business use in accordance with the FAR (as hereinafter defined) and the Company’s policies regarding use of the Aircraft;
WHEREAS, in order to provide for the safety and security of the Executive in his capacity as the Company’s Chief Executive Officer and to maximize the Executive’s ability to carry out his responsibilities to the Company, the Company has determined it is appropriate for the Company to make the Aircraft available to the Executive for personal use, subject to the terms and conditions set forth in this Agreement;
WHEREAS, the Executive desires to lease each Aircraft from time to time, with a flight crew, on a non-exclusive basis, from the Company on a time sharing basis as defined in Section 91.501(c)(1) of the FAR; 
WHEREAS, the Company is willing to lease each Aircraft from time to time, with a flight crew, on a non-exclusive basis, to the Executive on a time sharing basis; and 
WHEREAS, during the Term (as hereinafter defined) of this Agreement, each Aircraft will be subject to use by the Company and may be subject to use by one or more other third parties.
NOW, THEREFORE, in consideration of the mutual promises herein contained and other good and valid consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
		
	1.
	Definitions. The following terms shall have the following meanings for all purposes of this Agreement:

“Aircraft” means, individually and collectively as the context requires, each of the Aircraft identified in Exhibit A. 

 “Applicable Law” means, without limitation, all applicable laws, treaties, international agreements, decisions and orders of any court, arbitration or governmental agency or authority and rules, regulations, orders, directives, licenses and permits of any governmental body, instrumentality, agency or authority, including, without limitation, the FAR and 49 U.S.C. § 41101, et seq., as amended.
“FAA” means the Federal Aviation Administration or any successor agency.
“FAR” means collectively the Aeronautics Regulations of the FAA and the United States Department of Transportation, as codified at Title 14, Parts 1 to 399 of the United States Code of Federal Regulations.
“Operational Control” has the same meaning given the term in Section 1.1 of the FAR.
“Pilot in Command” has the same meaning given the term in Section 1.1 of the FAR.
“Taxes” means commercial air transportation excise taxes pursuant to Section 4261 of the Internal Revenue Code of 1986, as amended, regardless of whether any flight is considered “noncommercial” under the FAR.
“Term” means the entire period from the Effective Date to the date this Agreement is terminated pursuant to Section 3.

		
	2.
	Agreement to Lease. 

    
2.1     Lease. The Company agrees to lease each Aircraft to the Executive from time to time on an “as needed and as available” basis, and to provide a fully qualified flight crew for all of the Executive’s flight operations, in accordance with the terms and conditions of this Agreement. 

2.2     Automatic Removal of Aircraft. In the event that the Company sells any individual Aircraft listed on Exhibit A, such Aircraft shall, upon the transfer of title to such Aircraft, be deemed immediately removed from the applicability of this Agreement regardless of whether such Aircraft is specifically removed from Exhibit A. 

3.Term. 

3.1     Initial Term. The initial term of this Agreement shall commence on the Effective Date and continue for a period of one (1) year. 

3.2     Renewal. At the end of the initial one (1) year term or any subsequent one (1) year term, this Agreement shall automatically be renewed for an additional one (1) year term. 

3.3     Termination.
 
         3.3.1   Each party shall have the right to terminate this Agreement at any time with or without cause on ten (10) days’ written notice to the other party. 

          3.3.2   In the event that the Executive no longer serves as Chief Executive Officer of the Company, the Company shall have the right to terminate this Agreement immediately upon delivery of a written notice of termination to the Executive.

4.Applicable Regulations. The parties hereto intend this Agreement to constitute, and this Agreement shall be interpreted as, a Time Sharing Agreement as defined in Section 91.501(c)(1) of the FAR. The parties agree that for all flights under this Agreement, the Aircraft used for the flight shall be operated under the pertinent provisions of Subpart F of Part 91 of the FAR. If any provision of this Agreement is determined to be inconsistent with any of the requirements of the provisions of Subpart F of Part 91 of the FAR, such provision shall be deemed amended in any respect necessary to bring it into compliance with such requirements.

5.Charges. For any flight conducted under this Agreement (including any deadhead flights required for repositioning), the Executive shall pay the Company an amount determined by the Company, not to exceed the expenses of operating such flight that may be charged pursuant to Section 91.501(d) of the FAR, which expenses include and are limited to:

5.1     fuel, oil, lubricants, and other additives;

5.2     travel expenses of the crew, including food, lodging, and ground transportation;

5.3     hangar and tie-down costs away from the Aircraft’s base of operation;

5.4     insurance obtained for the specific flight;

5.5     landing fees, airport taxes, and similar assessments;

5.6     customs, foreign permit, and similar fees directly related to the flight;

5.7     in flight food and beverages;

5.8     passenger ground transportation;

5.9     flight planning and weather contract services; and

5.10   an additional charge equal to 100% of the expenses listed in Section 5.1.

6.Invoices and Payment. The Company shall provide a quarterly invoice to the Executive in an amount determined by the Company in accordance with Section 5 above. The Executive shall remit the full amount of any such invoice, together with any applicable Taxes under Section 7, to the Company within thirty (30) days after receipt of the invoice. 

7.Taxes. The Executive shall be responsible for all Taxes which may be assessed or levied as a result of the lease of the Aircraft to the Executive, or the use of the Aircraft by the Executive, or the provision of a taxable transportation service to the Executive using the Aircraft.  The Executive shall remit to the Company all such Taxes together with each payment made pursuant to Section 6. 

8.Scheduling Flights. 

8.1     Flight Requests. The Executive shall submit requests for flight time and proposed flight schedules to the Company as far in advance of any given flight as practical. The Executive shall provide at least the following information for each proposed flight prior to the scheduled departure: 

(a)departure airport; 

(b)destination airport; 

(c)date and time of flight; 

(d)the names of all passengers; 

(e)purpose of the flight for each passenger; 

(f)the nature and extent of any unusual luggage and/or cargo to be carried; 

(g)the date and time of return flight, if any; and 

(h)any other information concerning the proposed flight that may be pertinent or required by the Company, the flight crew or governmental authorities.

8.2     Approval of Flight Requests. The Company may approve or deny any flight scheduling request in its sole discretion. The Company shall be under no obligation to approve any flight request submitted by the Executive and shall have final authority over the scheduling of all Aircraft.

8.3     Subordinated Use of Aircraft. The Executive’s rights to schedule use of the Aircraft during the Term of this Agreement shall at all times be subordinate to the Aircraft use requirements of the Company.  The Company shall at all times be entitled to preempt any scheduled, unscheduled, or anticipated use of any Aircraft by the Executive, notwithstanding any prior approval by the Company. 

9.Aircraft Maintenance and Flight Crew. The Company shall be solely responsible for maintenance, preventive maintenance and required or otherwise necessary inspections of each Aircraft, and shall take such requirements into account in scheduling the Aircraft. No period of maintenance, preventative maintenance, or inspection shall be delayed or postponed for the purpose of scheduling the Aircraft, unless such maintenance or inspection can be safely conducted at a later time in compliance with all Applicable Laws and regulations, and within the sound discretion of the Pilot in Command. 

10.Flight Crews. The Company shall provide a qualified flight crew for each flight conducted in accordance with this Agreement. The members of the flight crew may be either employees or independent contractors of the Company. In either event, the flight crew shall be and remain under the exclusive command and control of the Company in all phases of all flights conducted under this Agreement. 

11.Operational Control. THE PARTIES EXPRESSLY AGREE THAT THE COMPANY SHALL HAVE AND MAINTAIN OPERATIONAL CONTROL OF ALL AIRCRAFT FOR ALL FLIGHTS OPERATED UNDER THIS AGREEMENT.  The Company shall exercise exclusive authority over initiating, conducting, or terminating any flight conducted on behalf of the Executive pursuant to this Agreement.

12.Authority of Pilot In Command. Notwithstanding that the Company shall have Operational Control of the Aircraft during any flight conducted pursuant to this Agreement, the Company and the Executive expressly agree that the Pilot in Command, 

in his or her sole discretion, may terminate any flight, refuse to commence any flight, or take any other flight-related action which in the judgment of the Pilot in Command is necessary to ensure the safety of the Aircraft, the flight crew, the passengers, and persons and property on the ground. The Pilot in Command shall have final and complete authority to postpone or cancel any flight for any reason or condition that in his or her judgment would compromise the safety of the flight. No such action of the Pilot in Command shall create or support any liability of the Company to the Executive for loss, injury, damage or delay. 

13.Insurance.

13.1     Liability. In connection with any use of the Aircraft, for the benefit of the Company and the Executive, the Company shall maintain, or cause to be maintained, bodily injury and property damage, liability insurance in an amount customary in the industry for similar aircraft and operations. Such policy shall be an occurrence policy naming the Company as Named Insured, and the Executive as an Additional Insured.

13.2     Hull. The Company shall maintain, or cause to be maintained, all risks aircraft hull insurance for each Aircraft in amounts determined from time to time by agreement of Company and the provider of the insurance.

13.3     Additional Insurance. The Company shall use reasonable efforts to provide such additional insurance coverage as the Executive may request or require; provided, however, that the cost of such additional insurance shall be borne by the Executive as set forth in Section 5.4 of this Agreement.

13.4     Insurance Certificates. The Company will provide a copy of its Certificate of Insurance to the Executive from time to time as requested by the Executive.

14.Representations and Warranties. The Executive represents and warrants that:

14.1     The Executive will use the Aircraft solely for his own use and the use of his family and guests, and the Executive will not use any Aircraft for the purpose of providing transportation of passengers or cargo for compensation or hire.

14.2     The Executive shall not incur any mechanic’s or other lien on the Aircraft.  The Executive shall not attempt to convey, mortgage, assign, lease, sublease, or in any way alienate any Aircraft.

14.3     During the Term of this Agreement, the Executive will abide by and conform to all Applicable Laws, governmental and airport orders, rules and regulations, as shall from time to time be in effect relating in any way to the operation and use of any Aircraft under a time sharing agreement.

15.No Assignments. Neither this Agreement nor any party’s interest herein shall be assignable to any other party whatsoever. This Agreement shall inure to the benefit of and be binding upon the parties hereto, and their respective heirs, representatives and successors.

16.Modification. This Agreement may not be modified, altered, or amended except by written agreement executed by both parties.

17.Headings. The section headings in this Agreement are for convenience of reference only and shall not modify, define, expand, or limit any of the terms or provisions hereof.

18.Notices. All notices and communications required or permitted by this Agreement shall be in writing and shall be deemed to have been duly given or made when delivered personally or transmitted electronically by e-mail or facsimile, receipt acknowledged, or in the case of documented overnight delivery service or registered or certified mail, return receipt requested, delivery charge or postage prepaid, on the date shown on the receipt therefor, in each case at the address set forth below:

If to Company:        The Sherwin-Williams Company
101 West Prospect Avenue 
Cleveland, Ohio 44115
Attention: Mary L. Garceau, Senior Vice President, General 
Counsel and Secretary
E-Mail: mary.l.garceau@sherwin.com

If to Executive:    at his home address listed in the records of the Company.

		
	19.
	Governing Law.   This Agreement shall be governed by the laws of the State of Ohio, without regard to its choice of law principles.

20.Limitation of Liability. NEITHER THE COMPANY (NOR ITS AFFILIATES) MAKES, HAS MADE OR SHALL BE DEEMED TO MAKE OR HAVE MADE ANY WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, WRITTEN OR ORAL, WITH RESPECT TO ANY AIRCRAFT TO BE USED UNDER THIS AGREEMENT OR ANY ENGINE OR COMPONENT THEREOF INCLUDING, WITHOUT LIMITATION, ANY WARRANTY AS TO DESIGN, COMPLIANCE WITH SPECIFICATIONS, QUALITY OF MATERIALS OR WORKMANSHIP, MERCHANTABILITY, FITNESS FOR ANY PURPOSE, USE OR OPERATION, AIRWORTHINESS, SAFETY, PATENT, TRADEMARK OR COPYRIGHT INFRINGEMENT OR TITLE. THE EXECUTIVE HEREBY WAIVES, RELEASES, DISCLAIMS AND RENOUNCES ALL EXPECTATION OF RELIANCE UPON ANY SUCH WARRANTIES, OBLIGATIONS, LIABILITIES, RIGHTS, CLAIMS OR REMEDIES.

21.Sole Recourse. The Executive agrees that the Aircraft liability insurance carried by, or on behalf of, the Company shall provide the Executive’s sole recourse for all claims, losses, liabilities, obligations, demands, suits, judgments or causes of action, penalties, fines, costs and expenses of any nature whatsoever, including attorneys’ fees and expenses for or on account of or arising out of, or in any way connected with the use of the Aircraft by the Executive or his guests, including, without limitation, injury to or death of any persons, including, without limitation, guests, invitees or other parties which may result from or arise out of the use or operation of the Aircraft. The provisions of this Section 21 shall survive the termination or expiration of this Agreement.

22.Counterparts. This Agreement may be executed by the parties hereto in separate counterparts, each and all of which when so executed and delivered shall be an original, and all of which shall together constitute one and the same instrument.

23.Entire Agreement. This Agreement constitutes the entire agreement of the parties as of the Effective Date and supersedes all prior or independent, oral or written agreements, understandings, statements, representations, commitments, promises, and warranties made with respect to the subject matter of this Agreement. 

24.Truth In Leasing Statement. 

WITHIN THE TWELVE (12) MONTH PERIOD PRECEDING THE DATE OF THIS AGREEMENT, EACH AIRCRAFT HAS BEEN INSPECTED AND MAINTAINED IN ACCORDANCE WITH THE PROVISIONS OF FAR PART 91.
THE PARTIES HERETO CERTIFY THAT DURING THE TERM OF THIS AGREEMENT AND FOR OPERATIONS CONDUCTED HEREUNDER, EACH AIRCRAFT WILL BE MAINTAINED AND INSPECTED IN ACCORDANCE WITH THE PROVISIONS OF FAR PART 91.
THE COMPANY ACKNOWLEDGES (AND CERTIFIES BY ITS SIGNATURE BELOW) THAT WHEN IT OPERATES ANY AIRCRAFT ON BEHALF OF THE EXECUTIVE UNDER THIS AGREEMENT, THE COMPANY SHALL BE KNOWN AS, CONSIDERED, AND IN FACT WILL BE THE OPERATOR OF, AND SHALL HAVE OPERATIONAL CONTROL OF, THE AIRCRAFT. 
EACH PARTY HERETO CERTIFIES THAT IT UNDERSTANDS THE EXTENT OF ITS RESPONSIBILITIES, SET FORTH IN THIS AGREEMENT FOR COMPLIANCE WITH APPLICABLE FEDERAL AVIATION REGULATIONS.
AN EXPLANATION OF FACTORS BEARING ON OPERATIONAL CONTROL AND THE PERTINENT FEDERAL AVIATION REGULATIONS CAN BE OBTAINED FROM THE NEAREST FAA FLIGHT STANDARDS DISTRICT OFFICE (FSDO).
THE PARTIES HERETO CERTIFY THAT A TRUE COPY OF THIS AGREEMENT SHALL BE CARRIED ON EACH AIRCRAFT AT ALL TIMES, AND SHALL BE MADE AVAILABLE FOR INSPECTION UPON REQUEST BY AN APPROPRIATELY CONSTITUTED AND IDENTIFIED REPRESENTATIVE OF THE ADMINISTRATOR OF THE FAA.
THE ADDRESS OF THE COMPANY IS: 101 West Prospect Avenue, Cleveland, Ohio 44115
		
	25.
	Truth In Leasing Compliance. The Company, on behalf of the Executive, shall take the steps set forth on Exhibit B. 

IN WITNESS WHEREOF, the parties have executed this AIRCRAFT TIME SHARING AGREEMENT as of the date and year first written above.

THE SHERWIN-WILLIAMS COMPANY 

By:    /s/ Thomas P. Gilligan            
Name: Thomas P. Gilligan
Title: Senior Vice President - Human Resources

/s/ John G. Morikis            
JOHN G. MORIKIS, Individually

The undersigned hereby consents to the terms of this Agreement.

CONTRACT TRANSPORTATION SYSTEMS CO. 

By:    /s/ Stephen J. Perisutti                
Name: Stephen J. Perisutti
Title: Vice President and Assistant Secretary

EXHIBIT A

AIRCRAFT

Gulfstream G150 aircraft bearing MSN 295 and U.S. registration number N194SW

Dassault Falcon 2000EX aircraft bearing MSN 73 and U.S. registration number N273SW 

Dassault Falcon 2000EX aircraft bearing MSN 155 and U.S. registration number N274SW2

EXHIBIT B

INSTRUCTIONS FOR COMPLIANCE WITH “TRUTH IN LEASING” REQUIREMENTS UNDER FAR SECTION 91.23

1.    Within 24 hours after execution of this Agreement, mail a copy of the executed document to the following address via certified mail, return receipt requested:

Federal Aviation Administration
Aircraft Registration Branch
ATTN: Technical Section
P.O. Box 25724
Oklahoma City, Oklahoma 73125

2.    At least 48 hours prior to the first flight of each Aircraft to be conducted under this Agreement, provide notice, of the departure airport and proposed time of departure of the first flight, by facsimile, to the responsible Flight Standards District Office.

3.    Carry a copy of this Agreement on board each Aircraft at all times.Exhibit

EXHIBIT 10(e)
AMENDED AND RESTATED EMPLOYMENT AGREEMENT
THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (“Agreement”) by and between The Sherwin-Williams Company, an Ohio corporation (“Sherwin-Williams” or the “Company”), and Aaron Erter (“Executive”), is effective as of the Effective Date defined below. In consideration of the promises provided for in this Agreement, Sherwin-Williams and Executive agree as follows:
		
	1.
	Employment.  Sherwin-Williams agrees to continue to employ Executive according to the terms and conditions of this Agreement, and Executive agrees to continue such employment for the Agreement Term (as defined in Section 2 below).

2.Term.  Subject to earlier termination pursuant to Section 6, the term of employment of Executive, pursuant to this Agreement, commenced effective on August 1, 2017 (the “Effective Date”), and shall continue through August 1, 2019 (the “Agreement Term”). In the event the Agreement Term should expire and Executive continues in the employ of Sherwin-Williams and/or its subsidiaries thereafter, any continuation of Executive’s employment with the Company or any of its subsidiaries beyond the Agreement Term shall constitute an at-will employment relationship and shall not be deemed to extend any of the provisions of this Agreement, except as otherwise expressly provided herein. The Executive’s employment with the Company and/or its subsidiaries during the Agreement Term and any period thereafter shall be the “Employment Term” and with his last day of employment with the Company and its subsidiaries being the “Date of Termination.”

3.Duties. During the Agreement Term, Executive shall serve as President of Sherwin-Williams’ Consumer Brands Group, subject at all times to the direction and control of Sherwin-Williams’ management, and shall have such duties and responsibilities as are usual and customary to the accomplishment of Executive’s role, as well as such duties and responsibilities as may be assigned to Executive from time-to-time by the appropriate officer or officers or supervisory personnel of Sherwin-Williams. During the Employment Term, Executive shall devote his full business time, energy, experience and talents to the business of Sherwin-Williams and its affiliates, as applicable, and will not engage in any other employment activities for any direct or indirect remuneration without written approval of Sherwin-Williams’ Chief Executive Officer.

4.Location of Services.  Executive’s current employment location is Chicago, Illinois. Such employment location may be changed during the Employment Term if the parties mutually agree in writing to another location acceptable to both parties.  If at any time the employment location agreed upon requires Executive’s relocation, Sherwin-Williams will relocate Executive to such location at Sherwin-Williams’ expense, pursuant to Sherwin-Williams’ standard practices for the relocation of similarly situated executives. The timeline and circumstances of such relocation are subject to mutual agreement by both parties. 

5.Compensation and Benefits.  During the Agreement Term, Executive shall be entitled to the following compensation and employee benefits. 

(a)Base Salary.  As compensation for his services hereunder and in consideration for Executive’s other agreements hereunder, Executive shall receive a base salary, payable in equal installments in accordance with Sherwin-Williams’ payroll procedures, at an annual rate of $500,000,  subject to review and adjustment in accordance with Sherwin-Williams’ normal performance evaluation practices (“Base Salary”).

(b)Bonus and Equity Grants.  Executive shall participate in Sherwin-Williams’ long-term incentive programs, which include regular grants of equity awards such as options and restricted stock units, in accordance with Sherwin-Williams’ equity grant practices for similarly situated executives generally.   Executive’s annual bonus under The Sherwin-Williams Company 2007 Executive Annual Performance Bonus Plan (the “Performance Plan”) shall be designed and administered in accordance with Sherwin-Williams’ practices for similarly situated executives generally.  Executive shall also be entitled to two special cash bonuses: (a) $228,800, payable in June 2018, subject to Executive’s continued employment with Sherwin-Williams through May 31, 2018, and (b) $228,800, payable in June 2019, subject to Executive’s continued employment with Sherwin-Williams through May 31, 2019.

(c)Benefits.  Executive shall be eligible to participate in the employee benefit plans or programs made available by Sherwin-Williams to similarly situated executives generally from time-to-time, pursuant to the terms and conditions of such plans and programs and all applicable laws.  For the avoidance of doubt, nothing in this Agreement shall diminish Executive’s benefits  under The Valspar Corporation Employee Health Plan, as amended and restated, or any successor plan thereto.  

(d)Business Expenses.  Executive shall be entitled to receive prompt reimbursement for all reasonable business expenses actually incurred by Executive in performing Executive’s duties hereunder.  All payments under this Section 5(d) will be made in accordance with the business expense reimbursement policy established by Sherwin-Williams from time to time and subject to receipt by Sherwin-Williams of appropriate documentation. 

6.Termination of Employment. 

(a)Termination Events.  Executive’s employment hereunder and the Agreement Term may be terminated at any time (i) by Sherwin-Williams with Cause (as defined herein), (ii) by Sherwin-Williams without Cause on 30 days written notice to Executive, (iii) by Sherwin-Williams due to Executive’s Disability (as defined herein) on 30 days written notice to Executive, (iv) by Executive for Good Reason (as defined herein), (v) by Executive without Good Reason on 30 days written notice to Sherwin-Williams (which notice may be waived by Sherwin-Williams in its discretion, in which case, such termination shall be effective immediately upon Sherwin-Williams’ receipt of notice from Executive), or (vi) without action by Sherwin-Williams, Executive or any other person or entity, immediately upon Executive’s death.  If Executive’s employment is terminated for any reason under this Section 6, Sherwin-Williams shall be obligated to pay or provide Executive (or his estate, as applicable) in a lump sum within 30 days following such termination, or at such time prescribed by any applicable plan: (i) any base salary payable to Executive pursuant to this Agreement, accrued up to and including the Date of Termination, (ii) any employee benefits and annual bonus compensation to which Executive is entitled, and has been determined to be due and payable by the Company’s Board of Directors (or a committee thereof), upon termination of his employment with Sherwin-Williams in accordance with the terms and conditions of the applicable plans of Sherwin-Williams, (iii) reimbursement of any unreimbursed business expenses incurred by Executive prior to his Date of Termination pursuant to Section 5 hereof, and (iv) payment for accrued but unused vacation time as of the Date of Termination, in accordance with Sherwin-Williams’ vacation policy ((i)-(iv) collectively, the “Accrued Amounts”).

(b)By Sherwin-Williams without Cause or by Executive for Good Reason.  If Executive’s employment is terminated by Sherwin-Williams without Cause, or by Executive for Good Reason (in each case, other than a termination due to Executive’s death or Disability), Executive shall be entitled to receive the following amounts as severance (subject to Section 6(d)): 

(i)Severance Payments.  

(A)    if such termination occurs before May 31, 2019: 
(1) an amount equal to two times the sum of Executive’s annual Base Salary and target annual bonus under the Performance Plan  for the year in which employment termination occurs; and 
(2) an amount equal to Executive’s target annual bonus under the Performance Plan for the calendar year of such termination, pro-rated based on the number of days Executive was actively employed by Sherwin-Williams during such year, with the amounts under (1) and (2), as applicable, each being paid in a lump sum cash payment within 30 days after the Date of Termination; or
(B)    if such termination occurs on or after May 31, 2019, and prior to July 18, 2019: 
(1) an amount equal to one times the sum of Executive’s annual base salary and the annual target bonus, in each case, as in effect on May 31, 2017; and 
(2) an amount equal to one-half of Executive’s annual target bonus, as in effect on May 31, 2017, pro-rated based on the number of days Executive was actively employed by Sherwin-Williams during the calendar year in which such termination occurs, 
with the amounts determined under (1) and (2), as applicable, each being paid in a lump sum cash payment within 30 days after the Date of Termination; 
(C)    if such termination occurs on or after July 18, 2019, Executive shall be eligible to receive severance in accordance with the severance plans and programs of Sherwin-Williams available to similarly situated executives generally according to the terms of those plans and programs; and 
(ii)Outplacement. Sherwin-Williams shall provide Executive with outplacement services in accordance with its practices for similarly situated executives generally.

(c)Death or Disability. If Executive’s employment is terminated by reason of Executive’s death or Disability during the Agreement Term, Executive (or his estate, as applicable) shall be entitled to receive the following amounts as severance: (i)  an amount equal to two times the sum of Executive’s annual Base Salary and the target annual bonus under the Performance Plan for the year in which employment termination occurs; and (ii) an amount equal to Executive’s target annual bonus under the Performance Plan for the calendar year of such termination, pro-rated based on the number of days Executive was actively employed by Sherwin-Williams during such year, with the amounts under (i) and (ii), as applicable, each being paid in a lump-sum cash payment within 30 days after the Date of Termination.

(d)Release. Notwithstanding anything herein to the contrary, Sherwin-Williams shall not be obligated to make any payment under Sections 6(b) or (c) of this Agreement unless (i) prior to the 60th day following the Date of Termination, Executive (or his estate) executes a release of claims against Sherwin-Williams and its affiliates in a form provided by Sherwin-Williams (the “Release”); and (ii) any applicable revocation period has expired during such 60-day period without Executive (or his estate) revoking such release.  To the extent Executive is required to sign a Release to receive any amount under Section 6 deemed to be “deferred compensation” for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the 60-day period allotted to sign (and not revoke) the Release starts in one calendar year and ends in the following calendar year, such payments will be made in the second calendar year, notwithstanding when the Release is executed and becomes irrevocable.  

(e)Interaction With Other Sherwin-Williams Severance Programs. For the avoidance of doubt, if Executive receives payments and benefits pursuant to this Agreement, Executive shall not be entitled to any severance pay or benefits under any other severance plan or program of Sherwin-Williams.  As provided in Section 6(b), beginning on July 18, 2019, Executive shall be eligible to participate in severance plans and programs of Sherwin-Williams available to similarly situated executives generally according to the terms of those plans and programs.

(f)Definitions.  For purposes of this Agreement:

(i)“Cause” means: (A) any act or conduct on the part of Executive which constitutes fraud; (B) any use or misappropriation of Sherwin-Williams’ or its affiliates funds, assets or property for any personal or other improper purpose; (C) an act of moral turpitude or dishonesty by, or a felony conviction of, Executive, whether or not such act was committed in connection with Sherwin-Williams’ business; (D) any deliberate or willful refusal to follow any lawful directive of the person(s) to whom Executive reports; (E) any deliberate or willful refusal to follow Sherwin-Williams’ policies or procedures; or (F) any deliberate or willful breach of this Agreement.

(ii)“Disability” means the absence of Executive from Executive’s duties with Sherwin-Williams on a full-time basis for 90 consecutive business days, or 90 business days during any period of 120 consecutive business days, as a result of incapacity due to mental or physical illness that is determined to be total and permanent by a physician selected by Sherwin-Williams or its insurers and acceptable to Executive or Executive’s legal representative (agreement as to acceptability shall not be unreasonably withheld).

(iii)“Good Reason” means, in the absence of the prior written consent of Executive: (A) a material diminution in Executive’s title or a materially adverse diminution in Executive’s duties, authorities, or responsibilities; (B) a material reduction of Executive’s total target annual compensation; or (C) any other material breach by Sherwin-Williams of this Agreement; provided, however, that none of the events described in this sentence shall constitute Good Reason unless and until: (1) Executive reasonably determines in good faith that a Good Reason condition has occurred; (2) Executive has notified Sherwin-Williams in writing describing in reasonable detail the occurrence of one or more Good Reason events within 30 days of such occurrence; (3) Sherwin-Williams fails to cure such Good Reason event within 60 days after its receipt of such written notice, and Executive has cooperated in good faith with Sherwin-Williams’ efforts to cure such condition; (4) notwithstanding such efforts, the Good Reason condition continues to exist, and (5) Executive  terminates his employment within 90 days after the occurrence of the applicable Good Reason event.

7.Successors. This Agreement is personal to the Executive, and shall not be assignable by Executive without the prior written consent of Sherwin-Williams. This Agreement shall be binding upon Sherwin-Williams and its successors and assigns.

8.Code Section 409A.  The intent of the parties is that payments and benefits under this Agreement comply with, or be exempt from, Code Section 409A and the regulations and guidance promulgated thereunder (collectively “409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.  Notwithstanding any provision of this Agreement to the contrary, in the event that Executive is a “specified employee” within the meaning of 409A (as determined in accordance with the methodology established by Sherwin-Williams as in effect on the Date of Termination) (a “Specified Employee”), any payments or benefits that are considered non-qualified deferred compensation under 409A payable under this Agreement on account of a “separation from service”, in each case, during the six-month period immediately following the Date 

of Termination shall instead be paid, or provided, as the case may be, as soon as practicable following the first business day after the date that is six months following Executive’s “separation from service” within the meaning of 409A (the “Delayed Payment Date”). For purposes of 409A, Executive’s right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments. In no event may Executive, directly or indirectly, designate the calendar year of any payment to be made under this Agreement that is considered nonqualified deferred compensation. With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by 409A, (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit; (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year; and (iii) such payments shall be made on or before the last day of Executive’s taxable year following the taxable year in which the expense occurred.

9.Complete Agreement. This Agreement sets forth the entire agreement of the parties hereto in respect of the subject matter contained herein, and supersedes all prior employment agreements, with the exception of any continuing confidentiality or other restrictive covenant agreements (with any undefined terms therein to be defined as provided herein), and also supersedes any promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative of any party hereto in respect of the subject matter contained herein. 

10.Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Ohio, without reference to principles of conflict of laws. 

11.Notice.  All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

		
	If to Executive:
	At Executive’s residence address as maintained by the Company in the regular course of its business for payroll purposes. 

		
	If to Sherwin-Williams:
	The Sherwin-Williams Company

101 Prospect Avenue, N.W.
Cleveland, Ohio 44115
Attention:  Senior Vice President - Human Resources 

With a copy to: 
The Sherwin-Williams Company
101 Prospect Avenue, N.W.
Cleveland, Ohio 44115
Attention: General Counsel
or to such other address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually received by the addressee.
12.Miscellaneous.  This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.  Executive shall perform all services in accordance with the policies, procedures and rules established by Sherwin-Williams.  In addition, Executive shall comply with all laws, rules and regulations that are generally applicable to Sherwin-Williams or its subsidiaries or affiliates and their respective employees, directors and officers.  Sherwin-Williams may withhold from any amounts payable under this Agreement such Federal, state, local or foreign taxes or social security charges as shall be required to be withheld pursuant to any applicable law or regulation. Sherwin-Williams does not guarantee any tax result with respect to payments or benefits provided hereunder.  Executive is responsible for all taxes owed with respect to all such payments and benefits.

13.Cooperation.  During the Employment Term and thereafter, Executive shall cooperate with Sherwin-Williams and its subsidiaries and affiliates and be reasonably available to Sherwin-Williams with respect to continuing and/or future matters related to Executive’s employment period with Sherwin-Williams and/or its subsidiaries or affiliates, whether such matters are business-related, legal, regulatory or otherwise (including, without limitation, Executive appearing at Sherwin-Williams’ request to give testimony without requiring service of a subpoena or other legal process, volunteering to Sherwin-Williams all pertinent information and turning over to Sherwin-Williams all relevant documents which are or may come into Executive’s possession).  Following termination of Executive’s employment with Sherwin-Williams, Sherwin-Williams shall reimburse Executive for all reasonable out of pocket expenses incurred by Executive in rendering such services that are approved by Sherwin-Williams. 
[SIGNATURES ON FOLLOWING PAGE]

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth above.
AARON ERTER
/s/ Aaron Erter                                        

THE SHERWIN-WILLIAMS COMPANY
By: /s/ Thomas P. Gilligan                      
Thomas P. Gilligan
Senior Vice President - Human Resources

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