Document:

EX-10.4

 Exhibit 10.4 
 

 
 March 8, 2019 

Kathy Veltri 
                              

               
              
 Dear Kathy, 

1 am very pleased to offer you the position of Chief Retail Officer. 

Here are the details of your offer: 
  

	 	1.	 Start date: March 4, 2019. 

 

	 	2.	 Base salary of $370,000 per year, paid bi-weekly; plus an additional
auto allowance of $900 per month. 

  

	 	3.	 You will be eligible for the Annual Corporate Salaried Bonus Plan (the “2019 Plan”), as the same is
established by the Compensation Committee of the Board. Your target bonus will be 50% of your annual base pay. If achieved, the bonus will be paid in the 2nd quarter of 2020.

  

	 	4.	 You will continue to be eligible for all benefits offered to regular full-time Arhaus Associates.

  

	 	5.	 Should Arhaus choose to terminate your employment with the Company for any reason other than Cause (as defined
below), or should you voluntarily resign from your employment with the Company for Good Reason (as defined below) you will be entitled, at the time of such termination or resignation, to the payment of a lump sum equal to the sum of: (a) 50% of the
greater of (X) $340,000 or (Y) your highest base salary rate prior to such termination or resignation; plus (b) a COBRA stipend covering the six-month period immediately following such termination or
resignation. Your lump sum payment will be subject to you signing a standard Arhaus employee severance agreement. 

  

	 	6.	 Notwithstanding the provisions of the foregoing Paragraph 5, if you voluntarily resign from your employment
with the Company for any reason other than Good Reason, you will not receive the lump sum payment or stipend set forth in Paragraph 5. 

  

	 	7.	 Your rights with respect to your “Incentive Units” as an “Incentive Member” of the Company
are as set forth in your Equity Incentive Agreement with the Company dated January 31, 2018 (the “EIA”), and those rights (including, without limitation, rights impacted by the definition of “Cause” in the EIA, as distinct
from the definition of Cause with respect to your rights outside of the EIA) are unaffected by anything contained in this letter. 

For purposes of this letter and the severance entitlement set forth in Paragraph 5 above, “Cause” means (i) an intentional act
of fraud, embezzlement, theft or any other material violation of law that occurs during or in the course of your employment with the Company; (ii) intentional engagement in any competitive activity which would constitute a breach of your duty
of loyalty to the Company; or (iii) the willful and continued failure to substantially perform your duties for the Company (other than as a result of incapacity due to physical or mental illness). For purposes of this paragraph, an act, or 

  
 51 E. Hines Hill Road |
Boston Heights, Ohio 44236 
 440.439.7700 | arhaus.com 

1 of 2 

 

 
  

 
failure to act, shall not be deemed willful or intentional, as those terms are used herein, unless it is done, or omitted to be done, by you in bad faith or without a reasonable belief that your
action or omission was in the best interest of the Company. Failure to meet performance standards or objectives, by itself, does not constitute “Cause”. 

For purposes of this letter and the severance entitlement set forth in Paragraph 5 above, “Good Reason” means the occurrence of one
or more of the following events arising without your express written consent, but only if you notify the Company in writing within thirty (30) days following our awareness of the occurrence of the event and the event remains uncured for at
least fifteen (15) days after such notice: (i) a reduction in your base salary and/or Target Bonus potential; (ii) a diminution in your employee benefits from those provided to other executives at a similar level, as such benefits may
be modified from time to time; (iii) a material diminution in your authority, duties or responsibilities; or (iv) the Company requires you to be based anywhere other than within fifty (50) miles of Boston Heights, Ohio. 

This letter is a summary of the Company’s obligations to you with respect to the terms of your employment, and is not an employment contract. Nothing
herein removes or modifies the Company’s “at-will” employment rights. 
 Dawn, the team and I look
forward to continuing to work with you in your role as Chief Financial Officer. Please feel free to contact me with any questions/concerns that you may have. Please counter-sign this letter confirming your acceptance and forward to me. 

Sincerely, 
 /s/ Mark D. Thompson 

Mark D. Thompson 
 President 

Arhaus 
 I, Kathy Veltri, have read, understand, and accept the
information outlined in this letter. 
  

					
	 /s/ Kathy Veltri
	  		  	 3/26/19

	Kathy Veltri	  		  	 Date

 51 E. Hines Hill Road | Boston Heights, Ohio 44236 

440.439.7700 | arhaus.com 

  
 2 of 2EX-10.5

 Exhibit 10.5 
  

 
 December 17, 2018 

Dawn Sparks 
                          

               
          
 Dear Dawn: 

On behalf of John Reed and Arhaus (“Arhaus” or the “Company”), I am very pleased to acknowledge your promotion to the position of Chief
Logistics Officer. 
 Here are the details of your promotion: 
  

	 	•	 	 Start date in new position: January 2, 2019 

 

	 	•	 	 Base salary increase to $275,000 per year prior to January 2, 2019, paid
bi-weekly. 

  

	 	•	 	 You will be eligible to participate in the 2019 Corporate Salaried Bonus Plan, as the same is developed by the
Compensation Committee (the “2019 Plan”), and your target bonus is increased to 50% of your annual base salary. If achieved, the bonus will be paid in the 2nd quarter of 2020.

  

	 	•	 	 You will continue to be eligible for all benefits offered to regular full-time Arhaus Associates.

  

	 	•	 	 You will be entitled to a “no-cause severance” payment (the
“Payment”) should either (a) Arhaus choose to terminate your employment with the company for any reason other than Cause (as defined below), or (b) you voluntarily resign from your employment with Arhaus for Good Reason (as
defined below). If you are so entitled, at the time of such termination or resignation, the Payment will be a lump sum equal to the sum of: (y) 50% of your highest base salary rate prior to such termination or resignation; plus (z) a COBRA
stipend covering the six month period immediately following such termination or resignation; provided, however, your Payment will only be made if at that time you sign a standard Arhaus employee Separation Agreement and Release.

 For all purposes of this letter and the Payment entitlement set forth in the fifth bullet point above: 

“Cause” means (i) an intentional act of fraud, embezzlement, theft, or any other material violation of law that occurs during or in the course
of your employment with the Company; (ii) intentional engagement in any competitive activity which would constitute a breach of your duty of loyalty to the Company; or (iii) the willful and continued failure to substantially perform your duties
for the Company. For purposes of this paragraph, an act, or a failure to act, shall not be deemed willful or intentional unless it is done, or omitted to be done, by you in bad faith or without a reasonable belief that your action or omission was in
the best interests of the Company; and 
 “Good Reason” means the occurrence of one or more of the following events arising without your express
written consent, but only if you notify the Company in writing within thirty (30) days following your 

  
 51 E. Hines Hill Road |
Boston Heights, Ohio 44236 
 440.439.7700 | arhaus.com 

1 of 2 

  
 

 
  

 
awareness of the occurrence of the event and the event remains uncured for at least fifteen (15) days after such notice: (i) a reduction in your base salary and/or target bonus
potential; (ii) a diminution in your employee benefits relative to those provided to other executives at a similar level, as such benefits may be modified from time to time; or (iii) the Company requires you to be based anywhere other than
within fifty (50) miles of Boston Heights, Ohio. 
 Dawn, the team and I look forward to continuing to work with you in your role as Chief Logistics
Officer. Please feel free to contact me with any questions/concerns that you may have. Please counter-sign this letter confirming your acceptance and forward to me. 

Note that this letter is a summary of our acknowledgment of your promotion and not an employment contract. Further, nothing contained in this letter removes
or modifies the company’s or your “at-will” employment rights. 
 Sincerely, 

Mark D. Thompson 
 Chief Financial Officer 

I, Dawn Sparks, have read, understand, and accept the terms and conditions set forth in this letter. 

 

					
	 /s/ Dawn Sparks
	 		  	 12/19/18

	 Dawn Sparks 
	 		  	Date

 51 E. Hines Hill Road | Boston Heights, Ohio 44236 

440.439.7700 | arhaus.com 

  
 2 of 2EX-10.6

 Exhibit 10.6 
  

 
 July 22, 2019 

Ms. Jennifer Porter 
                              
 Dear Jennifer, 

On behalf of John Reed and Arhaus, 1 am very pleased to offer you the position of Chief Marketing Officer. 

Here are the details of your offer: 
  

	 	1.	 Start date: August 1, 2019; provided, however, that you may delay your Start date if you determine that it
would cause an undue burden on your current employer, so long as your actual Start date is no later than September 16, 2019. Relocation allowance of $45,000. 

 

	 	2.	 Base salary of $300,000 per year, paid bi-weekly.

  

	 	3.	 You will be eligible for the Annual Corporate Salaried Bonus Plan (the “2019 Plan”), as the same is
established by the Compensation Committee of the Board. Your target bonus will be 50% of your annual base pay, prorated according to the portion of the year you are employed. If achieved, the bonus will be paid in the 2nd quarter of 2020. 

  

	 	4.	 You will have four (4) weeks of annual paid vacation, prorated for partial employment years.

  

	 	5.	 You will be eligible for all benefits offered to regular full-time Arhaus Associates, including a 401(k) Plan
with maximum 4% Company matching contribution (eligibility begins after six (6) months of employment). 

  

	 	6.	 Upon execution of a standard Joinder Agreement, you will receive an award of 91,596.54 of Class F and F-l Units (the “Incentive Units”) and become an “Incentive Member” of Arhaus, LLC. 

  

	 	7.	 Should Arhaus choose to terminate your employment with the Company for any reason other than Cause (as defined
below), or should you voluntarily resign from your employment with the Company for Good Reason (as defined below) you will be entitled, at the time of such termination or resignation, to the payment of a lump sum equal to the sum of: (a) 50% of the
greater of (X) $300,000 or (Y) your highest base salary rate prior to such termination or resignation; plus (b) a COBRA stipend covering the six-month period immediately following such termination or
resignation. Your lump sum payment will be subject to you signing a standard Arhaus employee severance agreement. 

  

	 	8.	 Notwithstanding the provisions of the foregoing Paragraph 7, if you voluntarily resign from your employment
with the Company for any reason other than Good Reason, you will not receive the lump sum payment or stipend set forth in Paragraph 7. 

  

	 	9.	 Your rights with respect to your Incentive Units as an Incentive Member of the Company will be as set forth in
your Equity Incentive Agreement with the Company which will be dated as of your Start Date (the “EIA”), and those rights (including, without limitation, rights impacted by the definition of “Cause” in the EIA, as distinct from
the definition of Cause with respect to your rights outside of the EIA) are unaffected by anything contained in this letter. 

  
 51 E. Hines Hill Road |
Boston Heights, Ohio 44236 
 440.439.7700 | arhaus.com 

1 of 2 

  
 

 
  

 For purposes of this letter and the severance entitlement set forth in Paragraph 7 above,
“Cause” means (i) an intentional act of fraud, embezzlement, theft or any other material violation of law that occurs during or in the course of your employment with the Company; (ii) intentional engagement in any competitive
activity which would constitute a breach of your duty of loyalty to the Company; or (iii) the willful and continued failure to substantially perform your duties for the Company (other than as a result of incapacity due to physical or mental
illness). For purposes of this paragraph, an act, or failure to act, shall not be deemed willful or intentional, as those terms are used herein, unless it is done, or omitted to be done, by you in bad faith or without a reasonable belief that your
action or omission was in the best interest of the Company. Failure to meet performance standards or objectives, by itself, does not constitute “Cause”. 

For purposes of this letter and the severance entitlement set forth in Paragraph 7 above, “Good Reason” means the occurrence of one
or more of the following events arising without your express written consent, but only if you notify the Company in writing within thirty (30) days following our awareness of the occurrence of the event and the event remains uncured for at
least fifteen (15) days after such notice: (i) a reduction in your base salary and/or Target Bonus potential; (ii) a diminution in your employee benefits from those provided to other executives at a similar level, as such benefits may
be modified from time to time; (iii) a material diminution in your authority, duties or responsibilities; or (iv) the Company requires you to be based anywhere other than within fifty (50) miles of Boston Heights, Ohio. 

This letter is a summary of the Company’s obligations to you with respect to the terms of your employment, and is not an employment contract. Nothing
herein removes or modifies the Company’s “at-will” employment rights. 
 Jennifer, the team and I
look forward to continuing to work with you in your role as Chief Marketing Officer, Please feel free to contact me with any questions/concerns that you may have. Please counter-sign this letter confirming your acceptance and forward to me. 

 

	
	 Sincerely,
  

	/s/ Mark D. Thompson
	Mark D. Thompson
	President and Chief Operating Officer
	Arhaus

 I, Jennifer Porter, have read, understand, and accept the information outlined in this letter. 

 

					
	 /s/ Jennifer Porter
	 		  	      

	 Jennifer Porter 
	 		  	Date

 51 E. Hines Hill Road | Boston Heights, Ohio 44236 

440.439.7700 | arhaus.com 

  
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