Document:

pir-ex101_125.htm

Exhibit 10.1

 

100 Pier 1 Place

Fort Wort h, TX 76102

PO Box 961020

Fort Worth, TX 76161-0020

 

P 817.252.8000

pierl.com

  

 

June 21, 2017

 

 

Bhargav J. Shah

 

 

Dear Bhargav,

 

This letter confirms the offer of employment with Pier 1 Services Company (" Pier 1 Imports" or "the Company") for the position of Senior Vice President, Chief Information Officer, in Fort Worth, Texas. The position reports to the President and Chief Executive Officer at a starting base salary of $425,000 per year ($16,346.15 bi-weekly); in each case subject to required withholdings for applicable taxes and voluntary pay deductions pursuant to the terms of this letter.

 

Pier 1 Imports' offer is made given your indication that you are not subject to any arrangement, agreement or restriction that would preclude you in any way from accepting employment with Pier 1 Imports whether serving in the above position or another position with the Company. This offer of employment is also contingent upon the completion, receipt and review of all references and background checks currently underway, each subject to the Company' s approval and upon receiving the approval of this offer of employment by the Company's Compensation Committee of the Board of Directors.

 

Your position with Pier 1 Imports entitles you to participate in the Fiscal 2018 annual short -term performance plan. Your participation will be at a 75% of base salary bonus target level, and will be pro­ rated from your date of hire. The incentive will be described in an award agreement which will be delivered to you upon commencement of employment. Your participation in the annual incentive plan is subject to the terms and conditions of that award agreement and the governing plan document.

 

As an officer of Pier 1 Imports, you will also be eligible to participate in the Company's Fiscal 2018 long­ term incentive plan. For Fiscal 2018, the equity awards will consist of a target number of shares of restricted stock valued on the date of grant expected to be the first business date following your employment commencement (based on the 30-day trailing average of the closing price of Pier 1 Imports' stock) at approximately $425,000, with 40% of the grant being time-based shares and 60% being performance-based shares. Vesting rates, performance measure(s) and allocation of the performance-based shares among specific performance measures will be described in an award agreement which will be delivered to you upon commencement of employment.

 

 

To partially offset any forfeited short-term incentive opportunity you may incur in transitioning to  Pier 1 Imports' Fiscal 2018 short -term incentive plan, the Company agrees to provide a one-time cash payment of $150,000, less applicable tax withholdings, payable within 30 days of its Fiscal 2018 year end, provided you remain actively employed and, have substantially completed the physical relocation of your family to the Dallas-Fort Worth area.

 

As an associate of Pier 1 Imports, you will be eligible in April, 2018 for an annual performance review with pay consideration. Further, at that time consideration will be given to re-evaluating the title of your role to the level of Executive Vice President.

 

Upon satisfaction of normal waiting periods you will be eligible for participation in our employee group insurance plans that include a managed health plan, long-term disability, dental insurance, accident insurance, vision and life insurance, and a prescription drug plan. As an associate, you will also receive a 25% discount on all Pier 1 Imports merchandise.

 

Additionally, we recognize that you may have a need for transitional medical coverage and Pier 1 Imports is prepared to reimburse you for your COBRA payment (less required withholdings) until you become eligible for Pier 1 Imports group insurance.

 

Upon satisfaction of the current waiting period of sixty days, you will be eligible to participate in the Company's 401(k) retirement plan. This plan currently offers mandatory employer matching contributions based on your pre-t ax contributions to the plan. The match is 100% of the first 1% of your eligible compensation to the plan and 50% of the next 4% of your eligible compensation contributed to the plan. For example, if you choose to contribute 5% of your eligible compensation, Pier 1 Imports would make a matching employer contribution, each pay period, at 3% of your eligible compensation, to your plan account. The details of the plan, including the vesting schedule will be provided to you upon employment in the 401(k) Summary Plan Description.

 

After sixty days of continuous employment, you will also be eligible to participate in the Pier 1 Imports, Inc. Stock Purchase Plan, an after-tax plan. This plan offers an employer matching contribution. You may contribute up to 20% of your eligible compensation to this plan. Pier 1 Imports will match that contribution at 25% and your deferral plus the match will be used to purchase Pier 1 Imports stock for your account. Details of this benefit will be provided to you upon employment.

 

As a Senior Vice President at Pier 1 Imports, after sixty days of employment, you are also eligible to participate in the Pier 1 Imports, Inc. Deferred Compensation Plan. The Company will make a matching contribution, allocated to deemed investment balance(s) selected by you, based upon elective deferrals of your compensation. The match is 100% of the first 1% of eligible compensation deferred and 50% of the next 4% of eligible compensation deferred. The details of the plan, including the vesting schedule and a summary description will be provided to you upon employment.

 

Upon commencement of employment, you will be eligible for four weeks of vacation to expire at the end of the current fiscal year (Fiscal 2018). In addition, after six months of continued employment, you will be granted two floating holidays.

 

You will be eligible for relocation benefits of up to $90, 000 in accordance with the Company's standard relocation policy. Administration of the Company's relocation plan is through TRC, the Company’s relocation vendor.

 

 

Your employment with Pier 1 Imports will be "at will" and is subject to Pier 1 Imports' terms and conditions of employment set forth in our associate handbook.

 

We are very excited about the opportunities available for you at the Pier 1 Imports. If you have any questions, comments or concerns, please call me. My office number is _. My cellular number is _.

 

If this letter correctly sets forth your understanding of Pier 1 Import s' offer of employment, then please sign where indicated below to acknowledge your acceptance and return a copy to me.

 

Sincerely,

 

 

 

/s/ Gregory S. Humenesky                                        

Executive Vice President, Human Resources

Pier 1 Services Company

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

 

 

Agreed to:

 

		
	
/s/ Bhargav Shah                   
	
6/23/2017                      

	
Bhargav Shah
	
Date

 

 

 

Cc: Alasdair James

 

Bhargav Shah

 

		
	
Position:
	
Senior Vice President, CIO

	
 
	
 

	
Reporting To:
	
Alasdair James, President & CEO

	
 
	
 

	
Base Salary:
	
$425,000 if annualized ($16,346.15 bi-weekly)

	
 
	
 

	
Annual Target Bonus:
	
$319,000 (target 75% of base)

	
 
	
•1st year to be pro-rated from date of hire

•Annual maximum 200% of target

	
 
	
 

	
Long-Term Incentive:
	
Dollar value ($425,000) equivalent to 100% base salary upon

commencement of employment

	
 
	
•Combination of time-based and performance-based restricted (full value) shares (40% time-based; 60% performance-based

with 2X target opportunity)

	
Other Benefits:
	
•To make whole on short-term incentive opportunity during initial year of employment, Pier 1 Imports agrees to a one-time

payment of $150,000 following the end of its Fiscal ' 18 year, provided you remain currently employed, and you have physically relocated your family to the DFW area by the time of payment

 

•25% store discount

•Four weeks vacation through remainder of Fiscal ’18

•Two floating holidays after 6 months continued employment

	
 
	
 

	
401(k):
	
60% company match at 5% contribution; eligible after 60 days of employment; vesting period of six years; contributions allowed from 1-50% of base salary

	
 
	
 

	
DCP:
	
Tax deferred; 60% company match at 5% contribution; eligible after 60 days of employment; vesting period of six years; contributions

allowed from 1-50% of base salary

	
 
	
 

	
Stock Purchase Plan:
	
25% company match dependent on continuous participation in the plan; eligible after 60 days of employment; fully vested at all times during participation; contributions allowed up to 20% of base salary

	
 
	
 

	
Group Insurance:
	
•Managed Care Health Plan - until eligible, 1st month following completion of 30 days of employment, Pier 1 will reimburse for

COBRA expenses

 

•Dental Insurance

•Vision Insurance

•Flexible Spending Accounts

 

		
		
	
 
	
•Disability

•Accident Insurance

•Life Insurance

	
 
	
 

	
Relocation:
	
You will be eligible for relocation benefits of up to $90,000 in accordance with the Company's standard relocation policy

	
 

 

	
 
	
*
	
Offer of employment is made contingent upon receipt of satisfactory reference checks and upon approval of Pier 1 Imports Compensation Committeepir-ex102_127.htm

Exhibit 10.2

 

 

AGREEMENT FOR SEVERANCE BENEFITS AND

FOR RELEASE, WAIVER AND NONDISCLOSURE

 

WHEREAS, heretofore Catherine David Buley is or has been an employee of Pier 1 Services Company;

 

WHEREAS, the employment relationship between Catherine David Buley and Pier 1 Services Company has been discontinued effective May 1, 2018;

 

WHEREAS, severance benefits will benefit Catherine David Buley during the transition following discontinuation of her employment;

 

WHEREAS, Pier 1 Services Company has agreed to extend severance benefits to Catherine David Buley, and in exchange, Catherine David Buley has agreed to release and waive all claims and damages relating to her employment and the discontinuation thereof; 

 

WHEREAS, Catherine David Buley represents that she has not assigned, sold, conveyed or transferred any claims of the type described below to third parties including, but not limited to, attorneys; and

 

WHEREAS, Catherine David Buley, on behalf of herself and her agents, assigns, relatives, spouse (if any) and related persons (hereinafter collectively referred to as "Employee"), and Pier 1 Services Company on behalf of itself and its parent(s), subsidiaries and affiliated companies (corporate and noncorporate), and on behalf of its and their directors, officers, employees, agents, representatives and related persons and entities (hereinafter collectively referred to as "Pier 1") wish to enter into this Agreement for Severance Benefits and for Release, Waiver and Nondisclosure (hereinafter referred to as "Agreement").

 

NOW THEREFORE, in consideration of the mutual covenants, warranties and undertakings set forth herein, Employee and Pier 1 agree as follows:

 

1.  By executing this Agreement Employee (subject to her right to revoke or rescind this Agreement during the Revocation Period [as defined below]) hereby agrees to accept severance benefits in the amount of $504,927.00 (less applicable taxes and withholding amounts), provided that Employee does not revoke or rescind this Agreement during the Revocation Period.  

 

By executing this Agreement, Pier 1 Services Company agrees to tender said amount after the expiration of the Revocation Period, provided that Employee executes this Agreement within the time period stated below and does not revoke or rescind this Agreement during the Revocation Period.

 

The severance payments provided under this Agreement are intended to be exempt from or in full compliance with the provisions of Section 409A of the Internal Revenue Code of 1986, as amended, and this Agreement shall be administered in a manner consistent with this intent.

 

 

 

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2.  Employee hereby irrevocably and unconditionally releases Pier 1 from any and all claims and causes of action, known or unknown, and recoverable damages (including claims for statutory attorney's fees), relating to or arising in any way from Employee's employment with Pier 1 and the discontinuation of such employment.  Employee hereby waives all claims and causes of action against Pier 1 and all damages, if any, that may be recoverable, including the recovery of statutory attorney’s fees.  This release and waiver of all claims and damages includes, but is not limited to, all claims, losses, liabilities, obligations and causes of action, known and unknown, arising out of, connected with, or relating to: (i) Employee’s employment; (ii) Pier 1’s refusal or failure to continue Employee’s employment; or (iii) the termination of Employee’s employment, including, but not limited to, claims for compensation, commissions, bonuses, stock options, other wages and benefits, breach of contract, wrongful termination, impairment of economic opportunity, intentional infliction of emotional distress, claims based on personal injury, work-related accident, any breach of implied or express covenant of good faith and fair dealing, violation of public policy, or any other contract, tort or personal injury claim, or claim based on any municipal, state or federal statute, regulation or ordinance relating to employment, employment discrimination or retaliation, including but not limited to Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000 et seq.; The Civil Rights Act of 1866, as amended, 42 U.S.C. § 1981; The Civil Rights Act of 1991, as amended, 42 U.S.C. § 1981a; The Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. § 621 et seq.; Americans With Disabilities Act, as amended, 42 U.S.C. § 12101 et seq.; Fair Labor Standards Act, as amended, 29 U.S.C. § 201, et seq.; Equal Pay Act, as amended, 29 U.S.C. § 201 et seq.; National Labor Relations Act, as amended, 29 U.S.C. § 151 et seq.; Worker Adjustment and Retraining Notification Act, as amended, 29 U.S.C. § 2101 et seq., Employee Retirement Income Security Act, as amended, 29 U.S.C. § 1000 et seq.; Family and Medical Leave Act, as amended, 29 U.S.C. § 2601, et seq.; claims under workers' compensation laws (except the right to file a claim for and receive workers’ compensation benefits); or any other statute, rule, regulation, ordinance, or common civil or other law, or judicial or administrative interpretation whether promulgated by Federal, State, local or other jurisdiction or political subdivision.  This Agreement extinguishes any potential monetary recovery from any claims Employee may have relating to her employment with Pier 1 and the termination of her employment.  

 

This Agreement does not release or terminate any of Employee’s rights pursuant to the Indemnification Agreement dated January 18, 2011, between Employee and Pier 1 Imports, Inc. (the “Indemnification Agreement”). 

 

Employee represents and warrants that Employee has not assigned to any third party any claim involving Pier 1 or authorized any third party to assert on your behalf any claim against Pier 1. If a third party asserts a claim against Pier 1 on Employee’s behalf or includes Employee as a class member in any class action involving any claim released under this Agreement, Employee shall not accept any benefits or damages relating to or arising out of such claim.

 

Additionally, Employee ratifies and confirms her resignation effective May 1, 2018, as an officer of any entity within the definition of Pier 1 for which she served.

 

3.  This Agreement does not prohibit, release or waive Employee's rights as an employee (i) to any vested benefits under a benefit plan which by its terms specifically provides for the vesting of benefits, (ii) to convert any insured benefits under an employee benefit plan to 

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the extent the plan allows conversion, or (iii) to maintain her medical insurance in force as provided by the Comprehensive Omnibus Budget Reconciliation Act of 1985 (COBRA), or (iv) to file or otherwise institute, participate or cooperate in any investigation, charge and/or claim with Congress or a federal, state, or local government agency.

 

4.  It is expressly understood and agreed that this Agreement is not and shall not be construed as an admission of liability on the part of Pier 1, and any such admission is expressly denied.

 

5.Employee represents and warrants that as of May 1, 2018 she has returned all property, equipment, documents and other tangible things, including keys, cell phones, pagers, corporate credit cards, and laptops or other computers of which are the property of Pier 1, or if she has failed to do so, Employee agrees to do so immediately upon finding any such items in her possession. 

 

6.Employee acknowledges that during her employment with Pier 1, Employee has been given access to and use of trade secrets, proprietary data, or other confidential information, which were developed at considerable effort and expense, and which if acquired by competitors of Pier 1 would give them an unfair business advantage.  Employee understands and agrees that this information, if used by or disclosed to anyone but Pier 1 and its employees with a need to know, will place Pier 1 at a competitive disadvantage.  Employee further acknowledges that she has not used or disclosed such trade secrets, proprietary data, or other confidential information during her employment with Pier 1, except as authorized in writing by Pier 1 or in the normal exercise of her job duties for the benefit of Pier 1.  

 

In further consideration for the above-recited covenants, promises and statements of understanding between the parties, including the payment described in Paragraph 1 of this Agreement, to which Employee is otherwise not entitled, Employee agrees that she shall not, without the prior express written consent of Pier 1, directly or indirectly communicate or disclose, or use for her benefit or the benefit of any other person, firm, association, or corporation, any of the Pier 1’s trade secrets, proprietary data or other confidential information, which trade secrets, proprietary data and other confidential information were communicated to or otherwise learned or acquired by Employee during her employment relationship with Pier 1, except that Employee may disclose such matters to the extent that disclosure is required (a) at the Company’s direction or (b) by a lawful subpoena or other similar legal process of a court or other governmental agency of competent jurisdiction; provided, that, Employee gives Pier 1 prompt written notice of such legal process and that Employee reasonably cooperates with Pier 1 in seeking a protective order. For so long as such matters remain trade secrets, proprietary data, or other confidential information, Employee agrees not use such trade secrets, proprietary data, or other confidential information in any way or in any capacity other than as expressly consented to by Pier 1.

 

Nothing in the above paragraph shall be construed to restrict Catherine David Buley from using her general knowledge, skills, and experience acquired during her employment with Pier 1 in future employment whether or not such employment is with a direct competitor of Pier 1.

 

Page 3

 

 

Such trade secrets, proprietary data, or other confidential information include, but are not limited to, the following: information concerning strategic marketing plans or product development plans; cost or pricing information; vendor or supplier information; business plans or methods; customer lists or data; information regarding proposed joint ventures, mergers, acquisitions, and other such anticipated or contemplated business ventures of Pier 1; projects, whether completed, in progress, or only contemplated; real estate plans and strategy; investment opportunities and other information related to investments of Pier 1, whether past, present or future; confidential financial information; financial planning and analysis modeling and methodology; intellectual property; financial accounting and reporting; tax planning and strategy; personnel information; ideas; discoveries; designs; inventions; improvements; know-how; writings and other works of authorship; computer programs; accounting information; lists; analyses; studies; technology; programs; flow charts; information regarding products or techniques;  strategies; or, any other business information that relates in any manner to the actual or anticipated business of Pier 1, and which they have not intentionally disclosed to its competitors or to the general public.

 

The obligations set forth herein shall be in addition to any other confidentiality obligations that Employee may have to Pier 1.

 

7.Employee shall not make any untrue, misleading, or disparaging statements, or comments concerning Pier 1.  The commitments in this paragraph and in other paragraphs of this Agreement will not limit or prohibit Employee from testifying truthfully, or providing truthful information in connection with any pending or threatened legal proceeding.  Further, nothing in this paragraph or in any other paragraph of this Agreement prohibits Catherine David Buley from reporting possible violations of federal, state, or local law or regulation to any governmental agency or entity, including, but not limited to, the United States Department of Justice, the Securities and Exchange Commission, Congress, and/or any agency Inspector General, or making other disclosures that are protected under the whistleblower provisions or other provisions of federal, state, or local law or regulation. Catherine David Buley does not need the prior authorization of Pier 1 to make any such reports or disclosures and she is not required to notify Pier 1 that she has made such reports or disclosures.

 

8.Employee agrees to cooperate with Pier 1 at such reasonable times and places as may be reasonably requested, and to provide all information that may be reasonably requested with respect to any matter involving her present or former relationship with Pier 1, the work she has performed for Pier 1, or present or former employees, so long as such requests do not unreasonably interfere with any other job or significant personal activity in which she is engaged. This specifically includes Employee’s assistance in regulatory inquiries, investigations and litigation matters, including depositions and/or court appearances in connection therewith, which may include appearances in other states. Pier 1 will make every effort to schedule these matters at times and locations convenient for Employee should they arise. Pier 1 will reimburse Employee for reasonable expenses, such as telephone, travel, lodging, and meal expenses she incurs at the request of Pier 1, consistent with Pier 1’s generally applicable policies for employee expenses.  

 

9.  This Agreement is not renewable, may not be modified, and may not be extended beyond the period described below, except by a written document signed by Employee and the Senior Vice President‐Human Resources of Pier 1.

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10.  This Agreement represents and encompasses the entire agreement between the parties and supersedes all prior and contemporaneous (whether written or oral) negotiations, representations, agreements and understandings.

 

11.  This Agreement shall be governed by the laws of the State of Texas.  Should a lawsuit be filed to enforce the terms of this Agreement, venue shall lie exclusively in the courts located in Tarrant County, Texas.

 

12.  It is the intention of the parties that neither this Agreement nor any part thereof is admissible in any administrative or judicial proceeding other than one to enforce the terms of this Agreement.

 

13.  Employee represents that she is being given at least twenty-one (21) days to consider this Agreement before signing it, and further, that she is advised in writing to consult with an attorney before signing it.

 

 

14.  Employee may revoke or rescind this Agreement during the seven (7) day period following the date of execution of this Agreement by Employee (the "Revocation Period").  This Agreement shall not become effective nor enforceable during the Revocation Period.  Should Employee decide to revoke or rescind this Agreement during the Revocation Period, then she must do so by serving written notice to Pier 1 Services Company by facsimile at _, Attn: Legal Department.

 

15.  Employee acknowledges that the injury Pier 1 will suffer in the event of her breach of any covenant or agreement set forth in Paragraphs 6 or 7 herein cannot be compensated by monetary damages alone, and Employee therefore agrees that Pier 1, in addition to and without limiting any other remedies or otherwise, shall have the right to obtain an injunction against Employee.

 

16.  Should any clause, sentence, provision, paragraph or part of this Agreement for any reason whatsoever, be adjudged by any court of competent jurisdiction, or be held by any other competent authority having jurisdiction, to be invalid, unenforceable, or illegal, such judgment or holding shall be confined in its operation to the clause, sentence, provision, paragraph or part of this Agreement directly involved, and the remainder of this Agreement shall remain in full force and effect.

 

17.  Employee represents that she fully understands that she may consult with her personal attorney regarding this Agreement and has done so to the extent, if at all, that she deems appropriate.  Employee warrants that she has had a reasonable period of time to review this Agreement, that she has carefully read and fully understands all of the provisions and effects of this Agreement and that she has voluntarily executed it in the space provided below.  Employee further warrants and represents that the severance benefit described in this Agreement is an exchange of consideration or value to which she is not otherwise entitled.

 

18.If Employee should breach any term of the Agreement, any delay by Pier 1 in enforcing the Agreement shall not be deemed a waiver or acceptance.  No waiver shall bind Pier 

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1 unless supported by consideration, executed in writing by the party to be bound, and delivered by an authorized officer or agent.

 

 

19.  This Agreement shall be fairly construed based on its language and without regard to the author of the language.

 

 

 

 

 

Pier 1 Services Company, 

a Delaware statutory trust 

 

	
 
	
By:
	
Pier 1 Holdings, Inc., 

	
 
	

	
a Delaware corporation, 

	
 
	

	
its managing trustee

			
	
/s/ Catherine David Buley
	
 
	
 

	
Catherine David Buley
	
 
	
 

	
Associate ID:
	
By: 
	
/s/ Christine C. Murray

	
 
	
 
	
Printed

	
Address: 
	
Name:
	
Christine C. Murray

	
 
	
Its:
	
Senior V.P. – Human Resources

	
 
	
 
	
 

	
Date: May 9, 2018
	
Date:
	
5/14/18

	
 
	
 
	
 

 

Please return your signed Severance Agreement to:

 

Pier 1 Imports

Attn: Christine C. Murray

100 Pier 1 Place

Fort Worth, Texas 76102

 

Page 6

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