Document:

pir-ex10272_157.htm

 

Exhibit 10.27.2

 

Retention Award

 

 

December 3, 2018

 

 

Kelly N. Cook

Executive Vice President – Marketing

 

Dear Kelly,

 

As a valued member of the Pier 1 senior executive team and as one whose continued leadership will be especially critical during this time, I am delighted and pleased to inform you that the Compensation Committee of the Board of Directors approved a cash retention award of $450,000.00. A formal agreement will be provided that will outline the terms and conditions of your retention payment.

 

On behalf of the Board of Directors congratulations and thank you, not only for your current contributions, but for what you will surely contribute to the future success of our beloved Company.

 

Regards,

 

 

/s/ Alasdair James 

 

Alasdair James

President & CEO

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

RETENTION AWARD AGREEMENT

 

A retention award of $450,000.00 (the “Award”) will be paid by Pier 1 Imports, Inc. (the “Company”) or an Affiliate to Kelly N. Cook (“Executive”) in a cash lump sum, subject to applicable federal, state, and local tax and other payroll withholding, within fifteen (15) days following December 3, 2019 (the “Payment Date”) provided (i) Executive remains employed by the Company or an Affiliate through the Payment Date, (ii) Executive’s employment is terminated by the Company or an Affiliate prior to the Payment Date without Cause, or (iii) Executive resigns for Good Reason prior to the Payment Date. 

 

For purposes of this Award agreement, the term: 

 

“Affiliate” means any entity which is controlling, controlled by, or under common control with the Company.

 

“Cause” means the occurrence of any of the following events:

(a)refusal by Executive to follow a lawful direction of any superior officer of the Company or an Affiliate, provided the direction is not materially inconsistent with the duties or responsibilities of Executive’s position;

(b)performance deficiencies which are communicated to Executive in writing as part of performance reviews and/or other written communications from any superior officer of the Company or an Affiliate;

(c)willful misconduct or reckless disregard by Executive of Executive’s duties or of the interest or property of the Company or its Affiliates; 

(d)any act by Executive of fraud against, material misappropriation from, or significant dishonesty to either the Company or an Affiliate; or

(e)conviction by Executive of a felony.

“Good Reason” means the occurrence of all of the events listed in either (a) or (b) below:

(a)a material diminution of Executive’s responsibilities as modified by the Company or an Affiliate from time to time hereafter, such that Executive would no longer have responsibilities substantially equivalent to those of similarly situated employees at companies with similar revenues and market capitalization; provided that Executive gives written notice to the Company of the facts and circumstances constituting such material diminution within ten (10) days following the occurrence of such event; the Company (or Affiliate) fails to remedy such material diminution within ten (10) days following Executive’s written notice of such event; and Executive terminates Executive’s employment within ten (10) days following the Company’s or Affiliate’s failure to remedy such material diminution; or

(b)the Company or an Affiliate materially reduces Executive’s base salary without Executive’s consent, unless the reduction is applied equally, expressed as a percentage of base salaries, to all similarly situated employees; provided that Executive gives written notice to the Company within ten (10) days following Executive’s receipt of the notice of reduction in base salary of Executive’s objection to the reduction; the Company or Affiliate fails to rescind the notice of reduction within ten (10) days following Executive’s written notice; and Executive terminates Executive’s employment within ten (10) days following the Company’s or Affiliate’s failure to rescind the notice.

 

Executive shall treat as confidential the fact of Executive’s receipt of this Award and its terms and conditions.  If the Company determines that Executive has shared such information with any other person, any right to payments under this Award shall be forfeited.

 

 

 

This Award shall not be construed as giving Executive the right to be retained in the service of the Company or an Affiliate. Executive shall remain subject to discharge to the same extent as if the Award had never been granted.  

 

	
Pier 1 Imports, Inc.

	
 
	
 
	
 

	
By:
	
 
	
/s/ Alasdair B. James

	
 
	
 
	
Alasdair B. James, President and Chief Executive Officer

	
 
	
 
	
 

	
 
	
 
	
AGREED AND ACCEPTED 

	
 
	
 
	
 

	
 
	
 
	
/s/ Kelly N. Cookpir-ex1028_151.htm

Exhibit 10.28

January 15, 2019

Mr. Robert E. Bostrom 

Via electronic mail

 

Dear Bob, 

 

This letter confirms the offer of employment by Pier 1 Imports, Inc., through its subsidiary, Pier 1 Services Company (together, the “Company”), for the position of Executive Vice President, Chief Legal and Compliance Officer and Corporate Secretary, in Fort Worth, Texas, effective on or before January 23, 2019 (“Start Date”) based on mutual agreement and pursuant to the terms of the Employment Term Sheet attached hereto as “Exhibit A” and made a part hereof.  The position reports directly to the Chief Executive Officer at a starting base salary of $615,000 per year ($23,658.84 bi-weekly), subject to required withholdings for applicable taxes and voluntary pay deductions. 

This offer of employment is contingent upon the completion, receipt and review of all references and background checks currently underway, each subject to the Company's approval and approval of the Employment Term Sheet by the Compensation Committee and the Board of Directors of Pier 1 Imports, Inc. 

You represent and warrant to the Company that (a) as of the Start Date with the Company, you are not subject to any obligation, written or oral, containing any non-competition provision or any other restriction that would result in any restriction on your ability to accept and perform this or any other position with the Company or any of its affiliates, except as provided in the Agreement between Abercrombie and Fitch and Robert Bostrom provided to the company, and (b) you are not (i) a member of any board of directors, except for certain not-for-profit boards previously disclosed to the Company, board of trustees or similar governing body of any for-profit, non-profit or not-for-profit entity, or (ii) a party to any agreement, written or oral, with any entity under which you would receive remuneration for your services, except as disclosed to and approved by the Company in advance of the Start Date. You agree that you will not (A) become a member of any board or body described in clause (b)(i) of the preceding sentence or (B) become a party to any agreement described in clause (b)(ii) of the preceding sentence, in each case without the prior written consent of the Company, such consent not to be unreasonably withheld. Further, you agree you will not disclose or use, in violation of any obligation of confidentiality, any information that you acquired as a result of any previous employment or otherwise. 

If this letter and the attached Employment Term Sheet correctly sets forth your understanding of the Company’s offer of employment, then please sign where indicated below to acknowledge your acceptance and return a copy to me. 

Sincerely, 

 

	
Pier 1 Services Company
	
 

	
By:
	
Pier 1 Holdings, Inc., its managing trustee
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
/s/ Christine Murray
	
 

	
 
	
Christine Murray, Senior V.P. – Human Resources
	
 

	
 
	
and Chief Human Resources Officer
	
 

	
 
	
 
	
 

	
Agreed to:
	
 

	
 
	
 
	
 

	
/s/ Robert E. Bostrom
	
1-16-19

	
Robert E. Bostrom
	
Date

	
 
	
 
	
 

	
 
	
 
	
 

	
cc: Cheryl Bachelder
	
 

Exhibit “A” TO OFFER Letter

 

Employment term sheet

 

 

This term sheet summarizes the principal terms and conditions of the proposed employment of Robert Bostrom (“Executive”) by Pier 1 Imports, Inc., through its subsidiary, Pier 1 Services Company (together, the “Company”), effective upon the Start Date as defined in the offer letter which this Exhibit A is attached to.

 

		
	
Position

 
	
Executive Vice President, Chief Legal and Compliance Officer and Corporate Secretary 

 

	
Office Location
	
Company Headquarters, Fort Worth, Texas

 

	
Duties and Reporting Relationship

 
	
Duties commensurate with position description attached, reporting directly to Chief Executive Officer.

	
Base Salary
	
$615,000 per year, subject to annual review by the Compensation Committee.

 

	
Sign on Bonus
	
$375,000 payable upon commencement of employment; subject to pro rata clawback in the event Executive terminates his employment with the Company without Good Reason or is terminated for Cause (each as defined in the Executive Agreement referenced below) in either case within 12 months following commencement of employment pursuant to the Sign-On Bonus Repayment Agreement attached hereto.

 

	
Annual Short-Term Incentive
	
Participation in the Company’s annual cash incentive program at 125% upon commencement of employment through the remainder of FY19 (3/2/19) and through all of FY20, and then in FY21 at a level commensurate with other senior officers, in each case as determined annually by the Compensation Committee in a manner consistent with other senior officers. 

 

	
Initial Time-Vesting Stock Award
	
One-time grant of restricted stock having a value equal to $375,000 granted upon commencement of employment (with the exact number to be determined by dividing $375,000 by the thirty-day trailing average stock price as of the employment commencement date).  Vests in equal annual installments on the first, second and third anniversaries of the grant date, subject to Executive’s continued employment with the Company.  The restricted stock shall vest in full in the event Executive’s employment is terminated by the Company without Cause or by the Executive for Good Reason (each as defined in the Executive Agreement). The restricted stock will be registered on a Form S-8 filed with the SEC on or prior to the date of grant, and will be granted pursuant to a restricted stock award agreement in the form attached hereto.

 

	
Annual Long-Term Incentive 
	
Long-term incentive award having a target value equal to $615,000 (100% of base salary) based on FY20 LTI plan design (TBD) and granted commensurate with FY20 LTI grant in a manner consistent with other senior officers.

 

	
Future Equity Awards

 
	
Eligible for grants of stock awards under the Company’s Long-Term Equity Incentive Plan at a level commensurate with other senior officers. Future fiscal long-term equity incentive plans are subject to Compensation Committee and Board of Directors authorization and approval.

 

	
Executive Agreement
	
The Company and Executive will enter into an Executive Agreement in the form attached hereto providing for 12 months of salary continuation in the event Executive’s employment with the Company is terminated by the Company without Cause or by Executive for Good Reason (each as defined in the Executive Agreement).

  

	
Non-Compete, Non-Solicitation and Non-Disclosure
	
Subject to non-compete, non-solicitation and confidentiality provisions for a period of one year following termination of employment pursuant to the Executive Agreement.

 

	
Group Insurance Plan 
	
Eligible to participate in Company broad-based health and welfare plans, long-term disability, dental insurance, accident insurance, vision and life insurance, and a prescription drug plan. Subject to terms of plans.

 

Pier 1 will reimburse Executive for COBRA costs pending eligibility for Pier 1’s welfare benefit plans. 

 

		
	
Stock Purchase Plan 
	
Eligible to purchase Pier 1 Imports, Inc. common stock through contributions of up to 20% of eligible compensation, plus Company matching contributions of 25% of amounts contributed. Subject to terms of plan.

 

	
Deferred Compensation Plan
	
Eligible participation includes company matching contributions equal to 100% of the first 1% of eligible compensation deferred and 50% of the next 4% of eligible compensation deferred. Subject to terms of plan. 

 

	
40l(k) Retirement Plan 
	
Eligible participation includes company matching contributions based on pre-tax contributions to the plan equal to 50% of the first 8% of eligible compensation. Subject to terms of plan.

 

	
Relocation Payment
	
$100,000 payable upon hire; subject to pro rata clawback in the event Executive terminates his employment with the Company without Good Reason or is terminated for Cause (each as defined in the Executive Agreement) in either case within 12 months following commencement of employment pursuant to the terms of the Executive Relocation Bonus Repayment Agreement attached hereto.  The relocation payment shall be in lieu of, and Executive shall not be eligible for, any reimbursement of actual relocation expenses pursuant to the Company’s standard relocation policy or otherwise.

 

	
Vacation
	
One week of vacation granted upon Start Date. Five weeks of vacation granted on the first day of FY20 (3/3/19). 

 

	
Reimbursement of Business Expenses

 
	
In accordance with Company guidelines.

	
Indemnification

 
	
The Company will enter into an Indemnification Agreement with Executive in the form attached hereto, which is consistent with indemnification agreements entered into with certain of its other senior executive officers.

 

	
D&O Insurance

 
	
The Executive will be covered by any directors and officers liability insurance policy (or policies) maintained by the Company during the employment term and thereafter consistent with the Indemnification Agreement.

 

	
Merchandise Discount 
	
25% discount on all Pier 1 Imports merchandise, subject to Associate Discount Policy.

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