Document:

woof-ex103_96.htm

Exhibit 10.3

 

 

 

	
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10850 Via Frontera
	
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San Diego, California 92127
	
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Phone 858.453,7845
	
 

 

 

 

August 21, 2016

John M. Zavada

Dear John,

At Petco, we share a common vision of Healthier Pets. Happier People. Better World. and our success depends on our 26,000+ Partners across the country who are living our brand promise to nurture powerful relationships between pets and people.

It's a great time to join us. We're in a fun and growing category, and we're COmmitted to our Petco 2020 goals and strategies. As we've learned more about you, we believe that you'll be a valued and important member of our senior leadership team.

On behalf of Petco Animal Supplies Stores, Incorporated, ("Petco" or the "Company"), I am delighted to invite you to join the Petco senior leadership team and am pleased to extend a contingent offer of employment to you as Senior Vice President, Chief Information Officer, reporting directly to Mike Nuzzo, Executive Vice President & Chief Financial Officer. Based on our discussions, your anticipated first day of work is Monday, September 19, 2016. Please take a moment to review the details of your offer below:

Compensation - Your compensation will be $450,000 per year, paid on a bi-weekly basis.

Annual Incentive - Provided the Board of Managers approves an incentive payment for the fiscal year, you will be eligible for incentive consideration based on 50% of your annual base salary (prorated from your hire date to start of the next fiscal year). To be eligible for incentive consideration during your first year of employment, your start date must be before December 1. Incentive payments for senior executives are awarded based on achievement of annual company performance targets, and, if approved, are typically awarded in late April. You must be employed at Petco at the time the incentive is paid in order to be eligible to receive a payment, The Company reserves the right to modify or terminate the incentive plan at its sole discretion.

Long Term Incentive - Following the commencement of employment with the Company and subject to Board approval and applicable plan terms, you will receive an award of partnership profits interests in the form of 3,000,000 Performance Incentive Units (P Units). Following approval of your grant, you will receive from the Law Department important details about your award, including an Award Agreement and processing instructions.

 

 

Relocation - To assist you with your move to your new position in San Diego, California, we are pleased to provide you with relocation assistance through our third-party provider, Cartus. Please find the attached PDF for Package D-Homeowner that describes your benefits in detail. A Cartus representative will contact you directly within three business days after signing your offer letter.

Benefits - Petco offers an excellent benefits package including medical, dental, vision, life insurance, nonqualified deferred compensation plan, an informal time off work program and Petco merchandise and services discounts, You are eligible to begin your participation in our benefits program on your first day of employment. We also offer a 401(k) program that allows you to participate on the first day of the month following one year of service. Please see the attached Benefits-At-A-GIance document regarding the benefits package.

Financial and Tax Preparation Services - As a senior officer, you will be eligible for financial planning and tax preparation services through AYCO Financial Services, a Goldman Sachs company. This service is paid for by the Company, and treated as income to you for tax purposes.

Executive Physical - As a senior officer, you will be eligible to receive an annual comprehensive wellness exam provided through Scripps Center for Executive Health. This service is paid for by the Company, and treated as income to you for tax purposes.

This offer is contingent upon our receipt and verification of various pre-employment screening elements including, but not limited to: educational record as you have stated on your application and/or resume; background check results; and assessments results/profiles. If you accept this contingent offer of employment, we suggest that you do not give notice to your current employer or make any other arrangements with respect to potential employment with the Company until you have been notified that we have successfully completed all components of this pre-employment process.

Petco is an "at will" employer and as such, employment with Petco is not for a fixed term or definite period and may be terminated at the will of either party, with or without cause, and without prior notice, No supervisor or other representative of the Company (except the Chief Executive Officer) has the authority to enter into any agreement for employment for any specified period of time, or to make any agreement contrary to the above. This is the final and complete agreement on this term. Any contrary representations which may have been made or which may be made to you are superseded by this offer, If you accept this contingent offer, the terms described in this letter shall be the terms of your employment.

All Petco partners are expected to adhere to the Petco Code of Ethics and the corresponding policies and procedures as a condition of employment. You will be provided a copy of the Code of Ethics upon hire and are encouraged to read it thoroughly and notify your supervisor of any questions you may have pertaining to the Code of Ethics.

John, we look forward to having you as a member of the Petco senior leadership team and to the contributions you will make. To acknowledge and accept the above-described offer, please sign, date, scan and email a copy of this letter to me at on or before August 22, 2016. If you have any questions, please call me at 

 

 

Sincerely,

 

 

Charles R. Piscitello

 

 

Acknowledged by:

 

 

 

 

 

	
/s/ John Zavada
	
 
	
8/21/16
	
 

	
 
	
 
	
 
	
 

	
Signature
	
 
	
Date 
	
 

	
 
	
 
	
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SENIOR OFFICER LEVELwoof-ex104_95.htm

Exhibit 10.4

 

SPECIAL RETENTION BONUS AGREEMENT

THIS SPECIAL RETENTION BONUS AGREEMENT (this “Agreement”) is entered into as of August 31, 2018 between Petco Animal Supplies, Inc., a Delaware corporation (the “Company”) and John Zavada (the “Employee”).

WHEREAS, the Employee is a key executive and is critical to the future success of the Company; and

WHEREAS, the Company wishes to incentivize the Employee to remain with the Company in order to help drive the success of the Company.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.Cash Retention Bonuses. The Employee shall be eligible to receive cash retention bonuses in the aggregate amount $1,500,000 (collectively, the “Bonus”). Subject to the Employee’s continued employment through September 30, 2019, the Company shall pay the Employee one-third of the Bonus (i.e., $500,000) on the first payroll date following such date. In addition, subject to the Employee's continued employment through March 31, 2021, the Company shall pay the Employee two-thirds of the Bonus (i.e., $1,000,000) on the first payroll date following such date. Notwithstanding the foregoing, (a) if a Change in Control occurs prior to payment of the entire Bonus and the Employee remains employed by the Company through the date of such Change in Control, any unpaid portion of the Bonus shall be paid to him promptly following such Change in Control (and in no event later than March 15 of the year following the year in which the Change in Control occurs), or (b) if the Employee’s employment is terminated by the Company without Cause prior to the payment of the full amount of the Bonus, then a Pro Rata Bonus shall be paid to the Employee promptly following his execution and nonrevocation of a severance agreement and general release of claims presented by the Company (which such release of claims must be executed and returned by the Employee within 30 days following his termination date). For purposes of this Agreement, (i) “Cause” means (A) the Employee’s material breach of any agreement with the Company, which breach is not cured within thirty (30) days of receipt by the Employee of written notice from the Company specifying the breach; (B) the willful failure or refusal by the Employee to substantially perform his duties that has not been remedied within thirty (30) business days after written demand for substantial performance has been delivered to the Employee; (C) the conviction of the Employee of, or the entering of a plea of nolo contendere by the Employee with respect to, a felony or a misdemeanor involving moral turpitude; or (D) the Employee’s inability or failure to competently perform his duties in any material respect due to the use of drugs or alcohol; (ii) “Change in Control” has the meaning specified in the Common Series C Unit Agreement between the Employee and Scooby LP (the “Award Agreement”); and (iii) “Pro Rata Bonus” means (A) the product of the Bonus and a fraction, the numerator of which is the number of days from the date of this Agreement through the date of termination and the denominator of which is the number of days from the date of this Agreement through March 31, 2021, less (B) any portion of the Bonus previously paid (but in no event with the Pro Rata Bonus be a negative number). For the avoidance of doubt, no further payments of the Bonus shall be made if the Employee’s employment with the Company terminates for any reason prior to a vesting date or a Change in Control, as applicable, except as specifically provided in this Section 1.

 

 

2.Guaranteed Bonus for Current Fiscal Year. The annual cash bonus payable to the Employee for the Company’s fiscal year ending in January 2019 shall be no less than $168,750 (which is 75% of the Employee’s target bonus for the fiscal year) (the “Guaranteed Bonus”), regardless of performance. The Guaranteed Bonus will be paid at the same time as executive bonuses are paid generally for such fiscal year, and otherwise shall be subject to the continued employment and other terms and conditions to receive such annual bonuses. For the avoidance of doubt, the actual annual bonus for such fiscal year may exceed the Guaranteed Bonus based on actual performance relative to the applicable performance goals.

3.IRS Golden Parachute Rules. Notwithstanding any provision of this Agreement to the contrary, if the Bonus is payable in connection with a Change in Control and such Bonus, when combined with all other payments that may be received by the Employee that are treated as having been made in connection with such Change in Control, equals or exceeds three times the Employee’s base amount (as such term is defined by Section 280G(b)(3) of the Internal Revenue Code), such payments will be subject to a shareholder vote meeting the requirements of Section 280G(b)(5) of the Internal Revenue Code.

4.Short-Term Deferral Rule. The payments hereunder are intended to be exempt from coverage under Section 409A of the Internal Revenue Code pursuant to the “short-term deferral rule”, and the Agreement shall be interpreted and applied accordingly.

5.Withholding. All payments hereunder are subject to all tax and other legally-required withholdings.

6.Entire Agreement/Amendment. This Agreement supersedes any prior verbal or written agreement with respect to the subject matter hereof. The provisions of this Agreement may be amended or waived only with the prior written consent of the Company and the Employee.

7.Governing Law. This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of California, without regard to the laws of any other jurisdiction that might be applied because of the conflicts of laws principles of the State of California.

8.Headings. The headings in this Agreement are inserted for convenience only and shall not constitute a part hereof.

9.Assignment; Third Party Beneficiary. This Agreement may not be assigned by any party hereto without the written consent of the other party hereto. This Agreement shall be binding upon, inure to the benefit of, and be enforceable by the patties hereto and their respective heirs, personal representatives, legatees, successors and permitted assigns.

10.Severability. The provisions of this Agreement shall be deemed severable, and if any part of any provision is held illegal, void or invalid under applicable law, such provision may be changed to the extent reasonably necessary to make the provision, as so changed, legal, valid and binding. If any provision of this Agreement is held illegal, void or invalid in its entirety, the remaining provisions of this Agreement shall not in any way be affected or impaired but shall remain binding in accordance with their terms.

 

 

11.Counterparts; Facsimiles. For the convenience of the parties, this Agreement may be executed in any number of counterparts, each such executed counterpart shall be deemed an original and all such counterparts together shall constitute one and the same instrument. Facsimile and electronic PDF transmission of any signed original counterpart transmission shall be deemed the same as the delivery of an original.

* * * * * *

IN WITNESS WHEREOF, the parties hereto have caused this Special Retention Bonus Agreement to be duly executed and delivered as of the date first written above.

 

	
 
	
PETCO ANIMAL SUPPLIES, INC.

	
 
	
 

	
 
	
By:
	
/s/ Ronald Coughlin

	
 
	
Name:
	
Ronald Coughlin

	
 
	
Its:
	
CEO

 

	
 
	
EMPLOYEE:

	
 
	
/s/ John Zavada

	
 
	
 

	
 
	
John Zavada

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