Document:

exv10w2

Exhibit 10.2

PIER 1 IMPORTS, INC.

STOCK PURCHASE PLAN

Restated As Amended June 20, 2008

PURPOSE OF PLAN

     The purpose of the Pier 1 Imports, Inc. Stock Purchase Plan (the “Plan”), which was
established in 1980 and was most recently amended and restated on June 25, 2004, is to provide
Eligible Participants of Pier 1 Imports, Inc. and its employing affiliates with the opportunity to
acquire an ownership interest in Pier 1 Imports, Inc. and thereby provide those who will be
responsible for the continued growth of Pier 1 Imports, Inc. with a more direct concern about its
welfare and a common interest with other shareholders of Pier 1 Imports, Inc. The Plan provides a
voluntary method of acquiring shares of Common Stock in convenient installments by compensation
deductions, supplemented by contributions from the Company. The Board of Directors of Pier 1
Imports, Inc. has adopted this restatement and amendment of the Plan, subject to approval by the
shareholders of Pier 1 Imports, Inc. at their annual meeting on June 20, 2008. Upon approval by
the shareholders of Pier 1 Imports, Inc., the Plan as amended and restated herein shall become
effective as herein provided.

SUSPENSION PERIOD

     On January 24, 2008, the Board of Directors, upon the recommendation of the Compensation
Committee of the Board of Directors, approved a resolution (i) to suspend Participant compensation
deductions, Company matching contributions and enrollment of new Participants under the Plan and
(ii) to suspend purchases of shares of Common Stock under the Plan, each to occur after the last
event in which Participant compensation deductions plus Company matching contributions could be
used to purchase shares of Common Stock within the authorized aggregate amount for issuance under
the Plan of 1,500,000 shares of Common Stock. The effective date of the suspension was March 29,
2008 (the “Suspension Date”). The suspension period (the “Suspension Period”) began on the
Suspension Date and will end as soon as administratively practicable after the Plan as amended and
restated herein is approved by the shareholders at their annual meeting on June 20, 2008. Should
the amended and restated Plan not be approved at that meeting, then the Suspension Period will
continue. During the Suspension Period, all other aspects of the Plan will continue in full force
and effect.

ARTICLE I

ELIGIBILITY

     All employees of the Company who have attained the age of majority of their state or province
of residence and have completed 60 days of continuous employment

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with the Company will be eligible to participate in the Plan at their election; provided,
however, that a Participant who has withdrawn from the Plan will again be eligible to participate
only after a period of 6 months from the date of such withdrawal. Directors will also be eligible
to participate in the Plan at their election, provided, however, that Directors who are also
employees of the Company will be governed by all provisions of the Plan, including eligibility
requirements, applicable to employees of the Company.

     No amounts from an employee Participant’s Account will be used to purchase shares of Common
Stock if immediately after such purchase such employee would own 5% or more of the total combined
voting power or value of all classes of stock of the Company (including any stock attributable to
such employee under Section 424(d) of the Code).

ARTICLE II

PARTICIPATION

     An Eligible Participant at his election may enroll as a Participant by completing and signing
a compensation deduction authorization form. Such forms may be obtained through the Human Resources
Department of the Eligible Participant’s employer, or in the case of a non-employee Director from
the Company. Enrollment shall become effective and the Company will establish an Account for an
Eligible Participant as soon as practicable after the signed compensation deduction authorization
form is received by the Eligible Participant’s employer, or in the case of a non-employee Director
is received by the Company.

ARTICLE III

METHOD OF OPERATION

     Pier 1 Imports, Inc., assisted by the Administrative Committee, will administer the Plan and
will establish an Account in the name of each Participant. The Company will deduct funds from each
Participant’s pay as authorized and will credit monthly the Plan Account of such Participant with
such deducted fund amounts plus Company contribution amounts established pursuant to Article V on
behalf of Participant. Such amounts will be used as soon as administratively practicable to
purchase shares of Common Stock (i) in the open market by a Broker designated by the Administrative
Committee, or (ii) directly from Pier 1 Imports, Inc. No purchases of Common Stock, however,
through a Broker may be made at a price which is greater than the fair market value of the Common
Stock at the time of the purchase. Purchases of shares of Common Stock from Pier 1 Imports, Inc.
will be at an average price per share determined over an allocation period, each as established by
the Administrative Committee from time to time. Purchased shares will be allocated to the Accounts
of Participants, at the average price per share for open market purchases or the average price per
share as established by the Administrative Committee, as the case may be, in proportion to the
funds received for each respective Account. Allocation will be made in full shares of Common Stock
and

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fractional interests therein to the one-thousandth of a share. Any Broker’s commissions or
markups on purchases made by a Broker will be paid by Pier 1 Imports, Inc.

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ARTICLE IV

COMPENSATION DEDUCTIONS

     An employee Participant, including an employee Participant who is also a Director, will
specify in a deduction authorization form the amount to be withheld from his Compensation, with a
minimum of $2.50 per week and a maximum of 20% of his Compensation. A non-employee Director will
specify in a deduction authorization form the amount to be withheld from his cash director
compensation payments. A non-employee Director may not contribute any amounts in excess of his
cash director compensation payments. Deductions from Compensation or deductions from a
non-employee Director’s cash director compensation payments, as the case may be, will be made from
each check payable to a Participant, and such authorization will remain effective until revised or
terminated as hereinafter provided.

     Deductions from Compensation or deductions from a non-employee Director’s cash director
compensation payments, as the case may be, may be increased or decreased (subject to the minimum
and maximum limitations set forth above) at any time by the Participant completing a new deduction
authorization form and submitting it to the Human Resources Department of the Participant’s
employer, or to the Company in the case of a non-employee Director. Commencement of deductions and
increases or decreases of deductions will become effective as of the first day of a payroll period,
provided that it is administratively practicable, after a Participant’s request is received. With
respect to non-employee Directors, all references to “the first day of a payroll period” herein
means the date of a cash director compensation payment.

ARTICLE V

COMPANY CONTRIBUTIONS

     The Company will contribute an amount equal to 25% of the Compensation deduction of each
employee Participant, including an employee Participant who is also a Director, for the purchase of
Common Stock under the Plan for each Participant. The Company will contribute an amount equal to
25% of the non-employee Director’s deduction from his cash director compensation payments for the
purchase of Common Stock under the Plan for such non-employee Director.

ARTICLE VI

TERMINATION OF COMPENSATION DEDUCTIONS

     A Participant’s compensation deduction authorization shall automatically terminate upon death,
termination of employment or cessation of service as a Director, as the case may be. Compensation
deductions may also be voluntarily terminated at any time by Participant’s written notice to the
Human Resources Department of the Participant’s employer, or notice to the Company with respect to
a non-employee

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Director Participant (“Withdrawal Request”). Voluntary termination of deductions shall become
effective as of the first day of a payroll period, provided that it is administratively
practicable, and after receipt of a Withdrawal Request. After termination of compensation
deductions, a Participant’s Account shall be closed in accordance with the terms set forth in
Article IX.

ARTICLE VII

TERM; AMENDMENT OR TERMINATION OF PLAN

     Unless previously terminated by the Board of Directors, the Plan will automatically terminate
on the earlier of (i) the fifth anniversary of the Effective Date (i.e., June 20, 2013), or (ii)
when an aggregate of 2,500,000 shares of Common Stock, plus 41,025 authorized shares of Common
Stock which remained available for issuance under the Plan on the Suspension Date, have been issued
after the Effective Date. The Board of Directors reserves the right to amend, suspend or terminate
the Plan at any time. Any such action will not result in the forfeiture of any funds deducted from
the compensation of any Participant or contributed by the Company on behalf of any Participant, or
of any Common Stock shares or fractional interest in Common Stock shares held in a Participant’s
Account, or of any dividends or other distributions in respect of such shares, which occur before
the effective date of the amendment, suspension or termination of the Plan.

     Any amendment to the Plan will be submitted to the shareholders of Pier 1 Imports Inc. for
approval by the affirmative vote of a majority of the shares of the Common Stock present or
represented by proxy and entitled to a vote on the matter at a meeting called therefor, if the
amendment would:

	 	(a)	 	materially increase the benefits accruing to Participants; or
	 
	 	(b)	 	materially increase the number of shares of Common Stock which may be issued
under the Plan; or
	 
	 	(c)	 	materially modify the requirements as to eligibility for participation in the
Plan.

ARTICLE VIII

PARTICIPANTS’ ACCOUNTS

     Each Participant for whose Account purchases of shares of Common Stock were allocated acquires
full ownership of all such allocated shares and any fractional interest therein. All shares will be
registered in the name of the Plan and will remain so registered until delivery of the shares to
the Participant pursuant to the Plan. Shares of Common Stock held by the Plan in a Participant’s
Account may not be sold or assigned, nor may a security interest in such shares be granted. A
Participant’s compensation deductions will

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terminate if he grants a security interest or sells or assigns his interest in the Plan.

     A Participant’s Account will be credited with all dividends, if any, paid with respect to the
full shares and any fractional interest in shares held in his Account. All cash dividends will be
reinvested in Common Stock following payment thereof.

     Stock dividends and/or any stock splits with respect to shares of Common Stock held in a
Participant’s Account will be credited to the Account without charge. Distributions of other
securities and rights to subscribe may be sold at the direction of the Administrative Committee,
and the proceeds will be handled in the same manner as a cash dividend.

     A Participant will receive quarterly and annual statements of his Account. The Company will
send to each Participant as soon as administratively practicable, by mail or otherwise, all notices
of meetings, proxy statements and other materials distributed by Pier 1 Imports, Inc. to its
shareholders. Upon receipt of instructions from a Participant, the Administrator of the Plan will
vote, or exercise dissenter’s rights when applicable, shares of Common Stock in Participant’s
Account in accordance with the instructions of Participant. In addition, the Administrator of the
Plan will vote, or exercise dissenter’s rights when applicable, shares of Common Stock in
Participants’ Accounts for which no instructions were received in the same proportion as shares for
which instructions were received are voted.

     In the event of a tender offer for Common Stock, the Company will send to each Participant the
tender offer documents and other materials relating to such tender offer that are received by the
Plan as a holder of Common Stock, together with a form to provide instructions whether to direct
the Administrator of the Plan to tender into the tender offer the Common Stock in a Participant’s
Account. Upon receipt of instructions from a Participant, the Administrator of the Plan will take
such action as directed by Participant. In addition, the Administrator of the Plan will tender into
such tender offer only that number of shares of Common Stock for which valid instructions were not
received from Participants that bears the same ratio to the total of all shares for which valid
instructions were not received as the number of shares for which valid instructions to tender into
the tender offer bears to the total number of shares in Participants’ Accounts.

ARTICLE IX

WITHDRAWAL FROM THE PLAN AND

DISTRIBUTION OF SHARES

     A Participant may withdraw from the Plan at any time by delivering a Withdrawal Request as set
forth in Article VI. Upon such withdrawal from the Plan, all shares in the Account of such
Participant shall be distributed to the Participant as soon as administratively practicable after
the end of the month in which the Withdrawal Request is received. A Participant who withdraws from
the Plan may not re-enter the Plan until 6

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months after such withdrawal. After that time, the Participant may re-enter the Plan by
following the procedures set forth in Article II.

     Any Participant, or the estate of any Participant, whose compensation deduction authorization
is automatically terminated as set forth in Article VI, may submit a Withdrawal Request and close
their Account. If a Withdrawal Request is not submitted, then all shares in such Account shall be
automatically distributed to such former employee or such former employee’s estate, as the case may
be, at the same time and in the same manner as shares are distributed to Participants pursuant to
the following paragraph.

     All shares in the Account of each Participant shall be automatically distributed to the
Participant at least once each calendar year. The Company may at its option make all distributions
under this Article IX electronically in book-entry form which may include delivery of fractional
shares.

ARTICLE X

RESALE OF STOCK ACQUIRED FROM THE PLAN

     Participants who are deemed to be “affiliates” of Pier 1 Imports, Inc. within the meaning of
the Securities Act of 1933 (“Act”) may sell or transfer such shares only in accordance with the
provisions of Rule 144 under such Act, in a transaction otherwise exempt from registration under
such Act or pursuant to an effective registration under such Act. Additionally, all sales of
Common Stock shall be subject to and in compliance with the Pier 1 Imports, Inc. insider trading
policies and procedures and all applicable laws, rules and regulations.

ARTICLE XI

MISCELLANEOUS

     Neither the act of establishing the Plan nor any provision hereof or action taken hereunder
shall be construed as giving any Participant the right to be retained as an employee or Director of
the Company, and the right of the Company to dismiss or discharge any employee, and the right of
the shareholders of Pier 1 Imports, Inc. to elect Directors of Pier 1 Imports, Inc., are
specifically reserved.

     Pier 1 Imports, Inc. may require compliance with or satisfaction of any legal requirement
which may be deemed by it necessary as a condition for participation in the Plan or for
distribution or payment of interests or benefits thereunder.

     By his act of participating in the Plan, or of accepting any benefits hereunder, a Participant
and any person claiming under or through him shall thereby be conclusively deemed to have accepted
and consented to the application to him of the provisions of the Plan.

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     Neither Pier 1 Imports, Inc. nor any of its subsidiaries both corporate and non-corporate
(including, but not limited to, any statutory trust), nor any Director, officer, employee or agent
of Pier 1 Imports, Inc. or any of its subsidiaries both corporate and non-corporate (including, but
not limited to, any statutory trust), warrants or represents in any way to any Participant that the
value of Common Stock will increase or will not decrease or that dividends will be paid on Common
Stock, either at all or at any particular level. Each Participant assumes all risks in connection
with changes in value of Common Stock and all risks that dividends may not be paid, either at all
or at any particular level.

     Any words used herein in the masculine gender shall be construed as though they were used in
the feminine gender wherever appropriate.

     Upon voluntary or automatic withdrawal by a Participant from the Plan, shares may be
distributed from the Plan electronically in book-entry form and may include fractional shares. If
the Company elects to distribute only full shares from the Plan, then any fractional shares shall
be valued at a fair market value and distributed in cash in conjunction with the distribution of
full shares.

     The Plan is hereby amended and restated in its entirety effective as of June 20, 2008, subject
to shareholder approval as stated above.

ARTICLE XII

DEFINITIONS

     For the purpose of the Plan, unless the context clearly or necessarily indicates the contrary,
the following words and phrases shall have the meanings set forth in the definitions below:

     a. “Account” shall mean the separate Account established and maintained for each
Participant pursuant to Article VIII hereof.

     b. “Administrative Committee” shall mean the committee which may be from time to time
formed to assist Pier 1 Imports, Inc. in the administration of the Plan, the members of which
shall be appointed by the Board of Directors. The Administrative Committee shall be comprised
of not less than two “Non-Employee Directors” of Pier 1 Imports, Inc. as that term is defined
in Rule 16b-3(b) promulgated under the Securities Exchange Act of 1934, as amended. The
Administrative Committee will be the Compensation Committee of the Board provided that the
above requirements are met, in which event no additional appointment shall be necessary by the
Board of Directors.

     c. “Administrator of the Plan” shall mean Pier 1 Imports, Inc.

     d. “Board of Directors” shall mean the Board of Directors of Pier 1 Imports, Inc.

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     e. “Broker” shall mean the broker appointed by the Administrative Committee pursuant to
Article III.

     f. “Code” shall mean the Internal Revenue Code of 1986, as amended.

     g. “Common Stock” shall mean shares of common stock, par value $1 per share, of Pier 1
Imports, Inc.

     h. “Company” shall mean Pier 1 Imports, Inc., a Delaware corporation, its successors and
assigns and any of its subsidiaries both corporate and non-corporate (including, but not
limited to, any statutory trust) any of which has employees and which shall adopt the Plan by
action of its board of directors, or other governing person or entity, if applicable.

     i. “Compensation” shall mean the total of all amounts paid by an employer to or for the
benefit of an employee Participant for services rendered or labor performed for the employer
which are required to be reported on the Participant’s federal income tax withholding statement
or statements (Form W-2, Box 1 or its subsequent equivalent), subject to the following
exclusions: taxable income resulting from the exercise of stock options, non-cash compensation
(i.e., non-cash awards), moving expense reimbursements, cash and non-cash fringe benefits,
expense allowances, expense reimbursements, payments of deferred compensation, welfare
benefits, severance pay, supplemental disability pay, relocation pay and compensation earned
before an employee was first eligible to participate in the Plan.

     j. “Director” shall mean an individual who is a member of the Board of Directors.

     k. “Effective Date” shall mean June 20, 2008, provided that the Plan as amended and
restated herein is approved by the shareholders of Pier 1 Imports, Inc. at their annual meeting
on that day, as may be continued.

     l. “Eligible Participant” shall mean any employee, including any employee who is a
Director, or a non-employee Director who meets the requirements stated in Article I.

     m. “Participant” shall mean any employee or non-employee Director who elects in accordance
with the provisions of the Plan to participate in the Plan through compensation deductions
pursuant to Article II.

     n. “Plan” shall mean the Pier 1 Imports, Inc. Stock Purchase Plan, as amended and restated
herein.

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Signed effective as amended and restated June 20, 2008 (the “Effective Date”)

Pier 1 Imports, Inc.,

a Delaware corporation

	 	 	 	 	 
	By:  	
 	 	 
	 	Gregory S. Humenesky 	 	 
	 	Executive Vice President 	 	 
	 

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Exhibit 10.1

SEVERANCE AGREEMENT

     This Severance Agreement (“Agreement”), effective July 2, 2008, is between Intervoice, Inc., a
Texas corporation (“Intervoice”), and Robert E. Ritchey (the “Executive”).

     WHEREAS, the Executive has previously served as the President and Chief Executive Officer, and
presently serves as Chief Executive Officer, of Intervoice pursuant to the terms of an executive
employment agreement (the “Employment Agreement”) dated and effective December 1, 2004, which was
amended by the First Amendment to Employment Agreement effective May 8, 2006 (the “First
Amendment”) and the Second Amendment to Employment Agreement effective February 28, 2008 (the
“Second Amendment”) that modified certain terms of the Employment Agreement; and

     WHEREAS, the Employment Agreement, as amended by the First Amendment and Second Amendment (the
“Amended Employment Agreement”) expires by its terms on August 31, 2008;

     WHEREAS, upon the expiration of the Amended Employment Agreement, the Executive will retire
from Intervoice and his employment with Intervoice and any of its Affiliates (as defined in
Paragraph 1.1 below) will then end; and

     WHEREAS, Intervoice and the Executive now wish to enter into an agreement providing for
certain severance benefits to be provided to the Executive in exchange for a waiver and general
release and other consideration upon the ending of the Executive’s employment pursuant to the
expiration of the Amended Employment Agreement;

     NOW, THEREFORE, the parties hereto agree as follows:

1.0 Definitions. As used in this Agreement, the following terms have the following
meanings:

     1.1 “Affiliate” means any other corporation, organization, association, partnership, sole
proprietorship, or other type of entity, whether incorporated or unincorporated, directly or
indirectly controlling or controlled by or under direct or indirect common control with Intervoice.

     1.2 “Board” means the Board of Directors of Intervoice.

     1.3 “Code” means the Internal Revenue Code of 1986, as amended.

     1.4 “General Release Agreement” means an agreement, in the form and with the terms as shown in
Exhibit A hereto, by which the Executive releases Intervoice and its Affiliates and all other
released parties named therein from all claims he has or may have against them.

     1.5 “Section 409A” means Section 409A of the Code and the Treasury Regulations and other
guidance thereunder.

 

 

     1.6 “Separation from Service” has the meaning determined by Intervoice in accordance with
Treasury Regulations § 1.409A-1(h).

2.0 Compensation and Obligations Upon Expiration of the Amended Employment Agreement.

     2.1 Upon the expiration of the Amended Employment Agreement, as provided in Paragraph 3 of the
Amended Employment Agreement, the Executive will retire from Intervoice and any of its Affiliates
by whom he is then employed, and his employment with Intervoice and any such Affiliates will end.
Intervoice and the Executive acknowledge that upon his retirement at the expiration of the Amended
Employment Agreement, the Executive will be entitled only to the compensation and benefits, if any,
provided for under the Amended Employment Agreement. Intervoice and the Executive understand and
agree that such compensation and benefits do not include any severance pay, salary compensation
beyond the last day of employment, or incentive compensation other than pursuant to the terms of
any applicable incentive plans. In the event of any termination of the Executive’s employment with
Intervoice prior to the expiration of the Amended Employment Agreement, the terms of the Amended
Employment Agreement shall control the compensation, if any, to which the Executive is entitled.

     2.2 Intervoice and the Executive acknowledge that upon his retirement at the expiration of the
Amended Employment Agreement, the Executive will be bound by the provisions of the Amended
Employment Agreement that have obligations continuing beyond the end of the Executive’s employment.
Such provisions include but are not limited to Paragraph 8 (Confidential Information), Paragraph 9
(Noncompetition and Nondisparagement Obligations), Paragraph 10 (Intellectual Property), and
Paragraph 13 (Assistance in Litigation). The Executive acknowledges and reaffirms his obligations
under such provisions and any other applicable provision of the Amended Employment Agreement.

3.0 Special Compensation and Benefits to the Executive Under this Agreement. Upon the
Executive’s satisfaction of the terms and conditions of this Agreement, particularly including but
not limited to timely compliance with the requirements to sign and not subsequently revoke the
General Release Agreement as provided in Paragraph 4.2 herein, Intervoice will provide to the
Executive the following special compensation and benefits:

     3.1 Intervoice will make a severance payment to the Executive in the amount of $592,500,
representing 1.5 times the Executive’s current annual base salary. Such payment shall be made in
lump sum within 40 days following the date of the Executive’s Separation from Service.

     3.2 If, at the time his employment ends, the Executive participates in one or more health
plans offered by Intervoice and the Executive is eligible for and elects to receive continued
coverage under such plans in accordance with the Consolidated Omnibus Budget Reconciliation Act of
1985 (“COBRA”) or any successor law, or pursuant to the terms of the retiree health plan option, if
applicable, Intervoice will reimburse the Executive for 18 months, or, if shorter than that period,
the period of such actual COBRA continuation coverage (or retiree
health plan option, if applicable), the difference between the total amount of the monthly
COBRA (or retiree health plan option, if applicable) premiums actually paid by the Executive for
such continued health plan benefits and the total monthly amount of the premiums charged to

Severance Agreement, Page 2

 

 

active
executive employees of Intervoice for the same health insurance coverage. Such reimbursement shall
be made within the 60-day period following the Executive’s payment of each monthly COBRA (or
retiree health plan option, if applicable) premium. Provided,
however, that Intervoice’s
reimbursement obligation under this Paragraph 3.2 shall terminate upon the earlier of (i) the
expiration of the time period(s) described above or (ii) the date the Executive becomes eligible
for health insurance coverage under a subsequent employer’s plan without being subject to any
preexisting-condition exclusion under that plan, which occurrence the Executive shall promptly
report to Intervoice. The Executive’s eligibility for the retiree health plan option shall be
determined solely by the terms of the applicable Intervoice plan, except that the ending of the
Executive’s employment as set out in this Agreement shall be considered a retirement under such
plan.

     3.3 Intervoice shall take action within 10 days following execution of this Agreement to cause
those unvested options to purchase common stock in Intervoice listed on Exhibit B hereto to become
fully vested effective as of the expiration of the Amended Employment Agreement.

     3.4 Intervoice shall take action within 10 days following execution of this Agreement to
extend the period during which the Executive may exercise those options to purchase common stock in
Intervoice listed on Exhibit B hereto to the earlier of (i) the date on which each such stock
option would otherwise expire in the absence of the Executive’s retirement or other termination of
employment or (ii) the date that is 18 months after the Executive’s retirement upon the expiration
of the Amended Employment Agreement.

     3.5 Within 10 days after the Executive’s Separation from Service, Intervoice will transfer to
the Executive ownership of the laptop computer and cellular telephone that the Executive had most
recently used during his employment with Intervoice. Before, and within the 120-day period after,
such a transfer, Intervoice shall have the right, at times and in a manner within Intervoice’s sole
discretion, to inspect the laptop computer and cellular telephone and remove any confidential
information or other Intervoice-related information in whatever manner Intervoice believes is
appropriate. Intervoice will permit the Executive to continue to use his Intervoice e-mail account
until November 30, 2008. In using such e-mail account after August 31, 2008, the Executive shall
not make any representations indicating that he is still an employee or officer of Intervoice or is
in any way permitted to bind Intervoice. The Executive shall take reasonable steps to preserve the
confidentiality of Intervoice-related information in any e-mails or otherwise located on the
electronic devices described in Paragraph 3.5.

     3.6 Intervoice will pay the Executive’s reasonable legal and out-of-pocket expenses incurred
in connection with the preparation and negotiation of this Agreement or other draft agreements the
parties have discussed in connection with the impending expiration of the term of the Amended
Employment Agreement, up to a maximum total payment of $50,000. The Executive will provide written
notice related to such expenses to Intervoice no later than August 31, 2008, and such payment will
be made by Intervoice after receipt of such notice and before October 1, 2008.

4.0 Conditions to Entitlement to Special Compensation Under this Agreement. In order to be
entitled to any of the compensation or benefits set forth in Paragraph 3, each of the following
conditions must be satisfied:

Severance Agreement, Page 3

 

 

     4.1 The ending of the Executive’s employment must result solely from the Executive’s
retirement upon expiration of the term of the Amended Employment Agreement as set out in Paragraph
3 of the Amended Employment Agreement and not from a termination because of Death, Inability to
Perform, Cause, Good Reason, or by either party without Cause or Good Reason (all as defined in the
Amended Employment Agreement) prior to the expiration of the term of the Amended Employment
Agreement.

     4.2 The Executive must execute a General Release Agreement on each of the occasions and upon
the terms specified below. Intervoice advises the Executive to consult with an attorney in
connection with his decision regarding whether to sign the General Release Agreement.

          4.2.1 As a condition to the effectiveness of the actions to be taken by Intervoice pursuant to
the provisions of Paragraphs 3.3 and 3.4 above, the Executive must, by not later than the
twenty-second day after the final terms of the General Release Agreement have been provided to him
for review and consideration, sign and return the General Release Agreement to Intervoice, and not
thereafter revoke such General Release Agreement.

          4.2.2 As a prerequisite to Intervoice’s obligation to take the actions specified in Paragraphs
3.1, 3.2, 3.5, and 3.6 above, the Executive must within the three business days after, but not
before, his Separation from Service with Intervoice (which date is more than 21 days after the
final terms of the General Release Agreement have been provided to the Executive for review and
consideration) sign and return the General Release Agreement to Intervoice, and not thereafter
revoke such General Release Agreement.

     4.3 The Executive must comply in all respects with his continuing obligations under the
Amended Employment Agreement.

5.0 Limited Release from Intervoice. Contingent on the Executive’s compliance with all of
the terms and conditions of the Amended Employment Agreement and this Agreement, Intervoice
provides to the Executive the following release of claims, which shall become effective only after
the Executive has executed and returned to Intervoice both of the forms of General Release
Agreement referred to in Paragraph 4 of this Agreement and only if the Executive does not exercise
his right to revoke either of the General Release Agreements:

     5.1 Intervoice releases and discharges the Executive and his heirs, successors, and assigns
from, and waives to the maximum extent permitted by law, any and all claims, liabilities, demands,
and causes of action, whether fixed or contingent, that Intervoice may have or claim against any of
them. Notwithstanding the foregoing, any claims, liabilities, demands, and causes of action based
upon any of the following conduct are not waived or released, and Intervoice preserves the right to
pursue all appropriate legal and equitable relief with respect to such conduct:

          5.1.1 Conduct that occurs or first becomes known to Intervoice after the date this Agreement
is signed;

          5.1.2 Conduct that constitutes a violation of Paragraph 8, Paragraph 9, or Paragraph 10 of the
Amended Employment Agreement;

Severance Agreement, Page 4

 

 

          5.1.3 Conduct that constitutes a felony, a violation of federal or state securities laws, or a
criminal offense punishable by imprisonment or jail term of one year or more;

          5.1.4 Conduct for which any civil enforcement action is brought against the Executive and/or
Intervoice by any regulatory agency, for actions or omissions related to the Executive’s employment
with Intervoice; and

          5.1.5 Conduct that is a violation of Intervoice’s Code of Conduct or other policies and for
which any lawsuit or other legal proceeding is brought against Intervoice.

     5.2 For purposes of Paragraph 5.1 and its subparagraphs, the term “Intervoice” includes
Intervoice and its Affiliates.

6.0 Compliance with Section 409A. Any provision of this Agreement to the contrary
notwithstanding, all compensation payable pursuant to this Agreement that is determined by
Intervoice in its sole judgment to be subject to Section 409A shall be paid in a manner that
Intervoice in its sole judgment determines meets the requirements of Section 409A and any related
rules, regulations, or other guidance. If Intervoice determines that the Executive is a “specified
employee” (as defined by Intervoice in accordance with Section 409A) on the date of the Executive’s
Separation from Service, then, notwithstanding any provision of this Agreement to the contrary, no
payment of compensation or provision of any benefit under this Agreement that is subject to Section
409A shall be made to the Executive during the period lasting six months from the date of the
Executive’s Separation from Service unless Intervoice determines that there is no reasonable basis
for believing that making such payment or providing such benefit would cause the Executive to
suffer adverse tax consequences pursuant to Section 409A and the regulations and other guidance
thereunder. If any payment to the Executive is delayed pursuant to the foregoing sentence, such
amount instead shall be paid, without interest, on the first day of the month following the
expiration of the six-month period referred to in the prior sentence. For purposes of Section
409A, each payment amount or benefit due under this Agreement shall be considered a separate
payment and Executive’s entitlement to a series of payments or benefits under this Agreement is to
be treated as an entitlement to a series of separate payments.

7.0 No Obligation to Pay. With regard to any payment due to the Executive under this
Agreement, it shall not be a breach of any provision of this Agreement for Intervoice to fail to
make such payment to the Executive if (i) Intervoice is legally prohibited from making the payment;
(ii) Intervoice would be legally obligated to recover the payment if it was made; or (iii) the
Executive would be legally obligated to repay the payment if it was made.

8.0 Withholding Taxes. Intervoice shall withhold from any payments to be made to the
Executive pursuant to this Agreement such amounts (including Social Security and Medicare
contributions and federal income taxes) as shall be required by federal, state, and local
withholding tax laws.

9.0 Assumption by Successor. Intervoice shall ensure that any successor or assignee
(whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or
substantially all the business and/or assets of Intervoice, either by operation of law or written
agreement, assumes the obligations of this Agreement. As used in this Agreement, “Intervoice”

Severance Agreement, Page 5

 

 

shall include any successor or assignee (whether direct or indirect, by purchase, merger,
consolidation, or otherwise) to all or substantially all the business and/or assets of Intervoice
that executes and delivers the agreement provided for in this Paragraph 9 or that otherwise becomes
obligated under this Agreement by operation of law.

10.0 Binding Effect; No Assignment by the Executive; No Third Party Benefit. This
Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs,
legal representatives, successors, and assigns; provided,
however, that the Executive shall not
assign or otherwise transfer this Agreement or any of his rights or obligations under this
Agreement. Intervoice is authorized to assign or otherwise transfer this Agreement or any of its
rights or obligations under this Agreement to an Affiliate of Intervoice. The Executive shall not
have any right to pledge, hypothecate, anticipate, or in any way create a lien upon any payments or
other benefits provided under this Agreement; and no benefits payable under this Agreement shall be
assignable in anticipation of payment either by voluntary or involuntary acts, or by operation of
law, except by will or pursuant to the laws of descent and distribution. Nothing in this
Agreement, express or implied, is intended to or shall confer upon any person other than the
parties, and their respective heirs, legal representatives, successors, and permitted assigns, any
rights, benefits, or remedies of any nature whatsoever under or by reason of this Agreement.

11.0 Governing Law; Venue. This Agreement shall be governed by the laws of the State of
Texas except for its laws with respect to conflicts of laws. The exclusive forum for any lawsuit
arising from or related to this Agreement shall be a state or federal court in Dallas County,
Texas. This provision does not prevent Intervoice from removing to an appropriate federal court
any action brought in state court. THE EXECUTIVE HEREBY CONSENTS TO, AND WAIVES ANY OBJECTIONS TO,
REMOVAL TO FEDERAL COURT BY INTERVOICE OF ANY ACTION BROUGHT AGAINST IT BY THE EXECUTIVE.

12.0 JURY TRIAL WAIVER. IN THE EVENT THAT ANY DISPUTE ARISING FROM OR RELATED TO THIS
AGREEMENT RESULTS IN A LAWSUIT, BOTH INTERVOICE AND THE EXECUTIVE MUTUALLY WAIVE ANY RIGHT THEY MAY
OTHERWISE HAVE FOR A JURY TO DECIDE THE ISSUES IN THE LAWSUIT, REGARDLESS OF THE PARTY OR PARTIES
ASSERTING CLAIMS IN THE LAWSUIT OR THE NATURE OF SUCH CLAIMS. INTERVOICE AND THE EXECUTIVE
IRREVOCABLY AGREE THAT ALL ISSUES IN SUCH A LAWSUIT SHALL BE DECIDED BY A JUDGE RATHER THAN A JURY.

13.0 Attorney’s Fees. Either Intervoice or the Executive, as applicable, shall have the
right, pursuant to TEX. CIV. PRAC. & REM. CODE ANN. §38.001 et seq., to recovery of reasonable
attorney’s fees, in addition to the amount of a valid claim and costs, for breach of this
Agreement.

14.0 Entire Agreement. This Agreement contains the entire agreement between the parties
concerning the subject matter hereof and supersedes all prior agreements and understandings,
written and oral, between the parties with respect to the subject matter of this Agreement.
Provided, however, that this Agreement does not supersede the terms of (i) the Amended Employment
Agreement, and (ii) the Employee Agreement on Ideas,
Inventions and Confidentiality executed by the
Executive on December 4, 2000.

Severance Agreement, Page 6

 

 

15.0 Modification; Waiver. No person, other than pursuant to a resolution duly adopted by
the members of the Board, shall have authority on behalf of Intervoice to agree to modify, amend,
or waive any provision of this Agreement. Further, this Agreement may not be changed orally, but
only by a written agreement signed by the party against whom any waiver, change, amendment,
modification, or discharge is sought to be enforced. The Executive acknowledges and agrees that no
breach by Intervoice of this Agreement or failure to enforce or insist on its rights under this
Agreement shall constitute a waiver or abandonment of any such rights or defense to enforcement of
such rights.

16.0 Construction. This Agreement is to be construed as a whole, according to its fair
meaning, and not strictly for or against any of the parties.

17.0 Severability. If any provision of this Agreement shall be determined by a court to be
invalid or unenforceable, the remaining provisions of this Agreement shall not be affected thereby,
shall remain in full force and effect, and shall be enforceable to the fullest extent permitted by
applicable law.

18.0 Counterparts. This Agreement may be executed by the parties in any number of
counterparts, each of which shall be deemed an original, but all of which shall constitute one and
the same agreement.

     IN WITNESS WHEREOF, Intervoice has caused this Agreement to be executed on its behalf by its
duly authorized representative, and the Executive has executed this Agreement, effective as of the
date first set forth above.

	 	 	 	 	 	 	 
	INTERVOICE, INC.	 	 	 	ROBERT E. RITCHEY
	 
	 	 	 	 	 	 
	By:
	 	/s/ David W. Brandenburg	 	 	 	/s/ Robert E. Ritchey
	 

	 	 	 	 	 
	 
	 	 	 	 	 	 
	Printed Name:
	David W. Brandenburg	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Title: 
	 	Chairman of the Board	 	 	 	 
	 

	 	 	 	 	 

Severance Agreement, Page 7

 

 

EXHIBIT A TO SEVERANCE AGREEMENT

GENERAL RELEASE AGREEMENT

     This General Release Agreement is entered into pursuant to the provisions of the Severance
Agreement between Robert E. Ritchey and Intervoice, Inc. (“Intervoice”) that became effective on
July 2, 2008 (the “Severance Agreement”).

NOTICE TO ROBERT E. RITCHEY — READ CAREFULLY:

•    This General Release Agreement (1) does not have any effect (except as affected by the Jury
Waiver provision below) on any claim you may have against the Released Parties unrelated to your
employment or with respect to any rights or claims that may arise after the date this General
Release Agreement is executed, and (2) does not extend to or prevent you from enforcing your vested
(i.e. non-forfeitable) rights to your accrued benefits (within the meaning of Sections 203
and 204 of the Employee Retirement Income Security Act of 1974, as amended), as of the date of
termination of your employment, under the Intervoice, Inc. Employee Savings Plan (401(k) Plan).

•     You must execute this form of General Release Agreement on two occasions, as specified in
Paragraphs 4.2.1 and 4.2.2 of the Severance Agreement, and then on each of such occasions promptly
return the executed instrument to Intervoice, to the attention of Don Brown, Senior Vice President
Human Resources and Real Estate, at the Dallas corporate headquarters facility. After you have
signed and returned this General Release Agreement in such manner, on each occasion you will still
have an additional seven days to reconsider and revoke your acceptance, if you wish. In order to
be effective, a revocation by you must be in writing and received by Intervoice, to the attention
of Don Brown at the Dallas corporate headquarters facility, within the seven-day revocation period.

•     You are advised and encouraged to discuss this release with your attorney. In any event, you
should thoroughly review and understand the effect of this document before signing it.

1. GENERAL RELEASE:

     (a) In exchange for Intervoice providing to me the special compensation and benefits set forth
in Paragraph 3 of the Severance Agreement, I hereby release and discharge the Released Parties (as
defined below) from, and waive to the maximum extent permitted by law, any and all claims,
liabilities, demands, and causes of action, known or unknown, fixed or contingent, which I may have
or claim against any of them.

     (b) This General Release Agreement includes but is not limited to any and all claims arising
under federal, state, or local laws prohibiting employment discrimination, including the Age
Discrimination in Employment Act of 1967, as amended (the “ADEA”), or claims growing out of any
legal restrictions, contractual or otherwise, on the right of Intervoice or any of its Affiliates
(as that term is defined in the Severance Agreement) to establish and administer the terms and
conditions and to terminate the employment of its or their employees. This General Release
Agreement does not, however, waive claims under the ADEA that do not exist as of the date on which
I have signed this General Release Agreement.

General Release Agreement, Page 1 of 2

 

 

     (c) The Released Parties are (i) Intervoice, Inc.; (ii) any Affiliates of Intervoice, Inc., as
that term is defined in the Severance Agreement; and (iii) the past, present, and future officers,
directors, shareholders, partners, fiduciaries, agents, employees, benefit plans, benefit plan
sponsors and administrators, representatives, insurers, attorneys, heirs, successors, and assigns
of the entities or persons named in (i) and (ii).

2. MY UNDERSTANDINGS:

     I acknowledge and agree that:

     (a) Absent this General Release Agreement Intervoice has no legal obligation to provide me
with the special compensation and benefits set forth in Paragraph 3 of the Severance Agreement.

     (b) I have carefully read and fully understand all of the provisions of this General Release
Agreement.

     (c) This General Release Agreement is knowing and voluntary on my part.

     (d) I have been allowed at least 21 days to deliberate regarding the terms of this General
Release Agreement.

     (e) I have had the right and have been encouraged by Intervoice to consult with an attorney in
connection with this General Release Agreement.

     (f) I am not relying on any written or oral statement or promise other than as set out in this
General Release Agreement and the Severance Agreement (including my prior agreements referred to
therein).

     (g) After signing this General Release Agreement, I have seven days to revoke its terms in
which case it will not become effective or enforceable.

3. JURY WAIVER: On behalf of myself and any other party who might assert a claim derivative of my
own, I hereby irrevocably and unconditionally waive the right to a trial by jury in any action or
proceeding (i) seeking to enforce, or alleging the breach of, any provision of this General Release
Agreement, or (ii) making any claim against any of the Released Parties, regardless of whether such
claim is covered by this General Release Agreement.

4. This General Release Agreement shall be governed by and construed in accordance with the laws of
the State of Texas except for its laws with respect to conflicts of laws.

	 	 	 	 	 	 
	Date
signed:
	 
 

	 	 
 

	 	 
	 

	 	 	Robert E. Ritchey	 	 
	 
	 	 	 	 
	Date
signed:
	 
 

	 	 
 

	 	 
	 

	 	 	Signature of Witness	 	 

General Release Agreement, Page 2 of 2

 

 

EXHIBIT B TO SEVERANCE AGREEMENT 

SCHEDULE OF STOCK OPTIONS

ACCELERATION OF VESTING AND EXTENSION OF EXERCISE PERIODS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Option Grant Date	 	 	Option Exercise Price	 	 	Unexercised Options	 	 	Plan	 	Unvested Options*	 	 	Description of Option Change(s)
	 	12/1/2000	 	 	 	7.51550	 	 	 	100,000	 	 	1999 Plan	 	 	—	 	 	Extend exercise period under Paragraph 3.4**

	 	4/22/2003	 	 	 	1.88000	 	 	 	40,000	 	 	1999 Plan	 	 	—	 	 	Extend exercise period under Paragraph 3.4

	 	8/20/2003	 	 	 	7.11500	 	 	 	200,000	 	 	2003 Plan	 	 	—	 	 	Extend exercise period under Paragraph 3.4

	 	7/21/2004	 	 	 	9.10500	 	 	 	150,000	 	 	2003 Plan	 	 	—	 	 	Extend exercise period under Paragraph 3.4

	 	7/13/2005	 	 	 	9.53500	 	 	 	122,500	 	 	2005 Plan	 	 	122,500	 	 	Extend exercise period under Paragraph 3.4 and

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	   accelerate option vesting under Paragraph 3.3

	 	7/13/2006	 	 	 	6.97500	 	 	 	150,000	 	 	2005 Plan	 	 	50,000	 	 	Extend exercise period under Paragraph 3.4 and

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	   accelerate option vesting under Paragraph 3.3

	 	 	 	 	 	 	 	 	 	762,500	 	 	 	 	 	 	 	172,500	 	 	 

 

			
	*	 	As of August 31, 2008.
	 
	**	 	Paragraph references are to Paragraphs in the Severance Agreement.

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